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  • MIL-OSI: Remitly Reports First Quarter 2025 Results Above Outlook and Raises Full Year 2025 Outlook

    Source: GlobeNewswire (MIL-OSI)

    First quarter send volume up 41% and revenue up 34% year over year
    First quarter net income was $11.4 million and Adjusted EBITDA was $58.4 million

    SEATTLE, May 07, 2025 (GLOBE NEWSWIRE) — Remitly Global, Inc. (NASDAQ: RELY), a trusted provider of digital financial services that transcend borders, reported results for the first quarter ended March 31, 2025.

    “We delivered an outstanding start to the year, significantly exceeding our expectations for the first quarter,” said Matt Oppenheimer, co-founder and Chief Executive Officer, Remitly. “This performance was driven by the deep and growing trust our customers place in us to deliver a fast, reliable, and secure experience. As that trust continues to grow, so does our ability to scale efficiently and profitably. Based on these strong results, we are raising our full year 2025 outlook for both revenue and Adjusted EBITDA.”

    First Quarter 2025 Highlights and Key Operating Data
    (All comparisons relative to the first quarter of 2024)

    • Active customers increased to 8.0 million, from 6.2 million, up 29%.
    • Send volume increased to $16.2 billion, from $11.5 billion, up 41%.
    • Revenue totaled $361.6 million, compared to $269.1 million, up 34%.
    • Net income was $11.4 million, compared to a net loss of $21.1 million.
    • Adjusted EBITDA was $58.4 million, compared to $22.8 million, up 157%.

    2025 Financial Outlook
    For fiscal year 2025, Remitly currently expects:

    • Total revenue in the range of $1.574 billion to $1.587 billion, representing a growth rate of 25% to 26% year over year. This outlook reflects an increase from our prior revenue outlook in the range of $1.565 billion to $1.580 billion.
    • GAAP net income to be positive for 2025 and for Adjusted EBITDA to be in the range of $195 million to $210 million. This outlook reflects an increase from our prior Adjusted EBITDA outlook in the range of $180 million to $200 million.

    For the second quarter of 2025, Remitly currently expects:

    • Total revenue in the range of $383 million to $385 million, representing a growth rate of 25% to 26% year over year.
    • A GAAP net loss position for the second quarter of 2025 and for Adjusted EBITDA to be in the range of $45 million to $47 million.

    As previously announced on February 19, 2025, the Company’s non-GAAP financial measures have been updated to exclude the impact of payroll taxes related to stock-based compensation expense, net. The Company considers this adjustment to improve the usefulness of its non-GAAP financial measures in evaluating underlying operating performance by more completely reflecting the extent of stock-based compensation expense, net, and related impacts. This update has no effect on any of the Company’s previously reported GAAP results for any period. Non-GAAP financial measures for 2024 and 2023 have been recast to reflect this change, and the financial outlook guidance previously provided on February 19, 2025, was in accordance with this updated presentation. See historical non-GAAP reconciliations included below.

    Reconciliation of GAAP to Non-GAAP Financial Measures
    A reconciliation of accounting principles generally accepted in the United States of America (“GAAP”) to non-GAAP financial measures has been provided in the financial statement tables included in this earnings release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” We have not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP income (loss) before income taxes within this earnings release because we cannot, without unreasonable effort, calculate certain reconciling items with confidence due to the variability, complexity, and limited visibility of the adjusting items that would be excluded from forecasted Adjusted EBITDA. These items include, but are not limited to, income taxes, stock-based compensation expense, and payroll taxes related to stock-based compensation expense, which are directly impacted by unpredictable fluctuations in the market price of our common stock. The variability of these items could have a significant impact on our future GAAP financial results.

    Note: All percentage changes described within this press release are calculated using amounts in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”), for which revenue and active customers are presented in thousands and send volume is presented in millions. Rounding differences may occur when individually calculating percentages or totals from rounded amounts included within the press release body as compared to the amounts included within the Company’s SEC filings.

    Webcast Information
    Remitly will host a webcast at 5:00 p.m. Eastern time on Wednesday, May 7, 2025 to discuss its first quarter 2025 financial results. The live webcast and investor presentation will be accessible on Remitly’s website at https://ir.remitly.com. A webcast replay will be available on our website at https://ir.remitly.com following the live event.

    We have used, and intend to continue to use, the Investor Relations section of our website at https://ir.remitly.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

    Non-GAAP Financial Measures
    Some of the financial information and data contained in this earnings release, such as Adjusted EBITDA and non-GAAP operating expenses, have not been prepared in accordance with GAAP.

    We regularly review our key business metrics and non-GAAP financial measures to evaluate our performance, identify trends affecting our business, prepare financial projections, and make strategic decisions. We believe that these key business metrics and non-GAAP financial measures provide meaningful supplemental information for management and investors in assessing our historical and future operating performance. Adjusted EBITDA and non-GAAP operating expenses are key output measures used by our management to evaluate our operating performance, inform future operating plans, and make strategic long-term decisions, including those relating to operating expenses and the allocation of internal resources. Remitly believes that the use of Adjusted EBITDA and non-GAAP operating expenses provides additional tools to assess operational performance and trends in, and in comparing Remitly’s financial measures with, other similar companies, many of which present similar non-GAAP financial measures to investors. Remitly’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Remitly’s financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.

    We calculate Adjusted EBITDA as net income (loss) adjusted by (i) interest (income) expense, net, (ii) provision for income taxes, (iii) noncash charges of depreciation and amortization, (iv) other income (expense), net, (v) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, (vi) noncash stock-based compensation expense, net, (vii) payroll taxes related to stock-based compensation expense, net, and (viii) certain integration, restructuring, and other costs. We calculate non-GAAP operating expenses as our GAAP operating expenses adjusted by (i) noncash stock-based compensation expense, net, (ii) payroll taxes related to stock-based compensation expense, net, (iii) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, as well as (iv) certain integration, restructuring, and other costs.

    Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future results of operations and financial position, including our fiscal year and second quarter 2025 financial outlook, including forecasted fiscal year and second quarter 2025 revenue, net income (loss), and Adjusted EBITDA, anticipated future expenses and investments, expectations relating to certain of our key financial and operating metrics, our business strategy and plans, our growth, our position and potential opportunities, and our objectives for future operations. The words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “likely,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including risks and uncertainties related to our expectations regarding our revenue, expenses, and other operating results; our ability to acquire new customers and successfully retain existing customers; our ability to develop new products and services in a timely manner; our ability to achieve or sustain our profitability; our ability to maintain and expand our strategic relationships with third parties; our business plan and our ability to effectively manage our growth; anticipated trends, growth rates, and challenges in our business and in the market segments in which we operate; our ability to attract and retain qualified employees; uncertainties regarding the impact of geopolitical and macroeconomic conditions, including currency fluctuations, inflation, regulatory changes (including as may be related to immigration, fiscal policy, foreign trade, or foreign investment), or regional and global conflicts or related government sanctions; our ability to maintain the security and availability of our solutions; our ability to maintain our money transmission licenses and other regulatory clearances; our ability to maintain and expand international operations; and our expectations regarding anticipated technology needs and developments and our ability to address those needs and developments with our solutions. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results is included in our quarterly report on Form 10-Q for the quarter ended March 31, 2025 to be filed with the SEC, and within our annual report on Form 10-K for the year ended December 31, 2024 filed with the SEC, which are or will be available on our website at https://ir.remitly.com and on the SEC’s website at www.sec.gov. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

    About Remitly
    Remitly is a trusted provider of digital financial services that transcend borders. With a global footprint spanning more than 170 countries, Remitly’s digitally native, cross-border payments app delights customers with a fast, reliable, and transparent money movement experience. Building on its strong foundation, Remitly is expanding its suite of products to further its vision and transform lives around the world.

    Contacts

    Media Inquiries:
    press@remitly.com

    Investor Relations:
    Stephen Shulstein
    stephens@remitly.com

     
     
    REMITLY GLOBAL, INC.
    Condensed Consolidated Statements of Operations
    (unaudited)
     
      Three Months Ended March 31,
    (in thousands, except share and per share data)   2025       2024  
    Revenue $         361,624     $         269,118  
    Costs and expenses      
    Transaction expenses(1)           121,393               89,881  
    Customer support and operations(1)           22,573               20,119  
    Marketing(1)           73,349               68,014  
    Technology and development(1)           73,851               63,206  
    General and administrative(1)           52,829               44,173  
    Depreciation and amortization           5,396               3,678  
    Total costs and expenses           349,391               289,071  
    Income (loss) from operations           12,233               (19,953 )
    Interest income           1,787               2,226  
    Interest expense           (1,299 )             (769 )
    Other income (expense), net           2,221               (1,586 )
    Income (loss) before provision for income taxes           14,942               (20,082 )
    Provision for income taxes           3,590               998  
    Net income (loss) $         11,352     $         (21,080 )
    Net income (loss) per share attributable to common stockholders:      
    Basic $         0.06     $         (0.11 )
    Diluted $         0.05     $         (0.11 )
    Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:      
    Basic           201,744,601               189,848,799  
    Diluted           218,414,823               189,848,799  
                   

    _________________________
    (1) Exclusive of depreciation and amortization, shown separately.

           
    REMITLY GLOBAL, INC.
    Condensed Consolidated Balance Sheets
    (unaudited)
           
      March 31,   December 31,
    (in thousands)   2025       2024  
    Assets      
    Current assets      
    Cash and cash equivalents $         493,905     $         368,097  
    Disbursement prefunding           217,549               288,934  
    Customer funds receivable, net           213,554               193,965  
    Prepaid expenses and other current assets           53,710               46,518  
    Total current assets           978,718               897,514  
    Property and equipment, net           41,456               31,566  
    Operating lease right-of-use assets           11,896               13,002  
    Goodwill           54,940               54,940  
    Intangible assets, net           8,379               10,463  
    Other noncurrent assets, net           5,197               5,386  
    Total assets $         1,100,586     $         1,012,871  
    Liabilities and stockholders’ equity      
    Current liabilities      
    Accounts payable $         38,907     $         16,159  
    Customer liabilities           192,186               188,984  
    Short-term debt           2,421               2,468  
    Accrued expenses and other current liabilities           114,545               116,652  
    Operating lease liabilities           4,098               4,745  
    Total current liabilities           352,157               329,008  
    Operating lease liabilities, noncurrent           14,728               9,073  
    Other noncurrent liabilities           10,225               9,319  
    Total liabilities           377,110               347,400  
    Commitments and contingencies      
    Stockholders’ equity      
    Common stock           20               20  
    Additional paid-in capital           1,240,310               1,195,390  
    Accumulated other comprehensive income (loss)           75               (1,658 )
    Accumulated deficit           (516,929 )             (528,281 )
    Total stockholders’ equity           723,476               665,471  
    Total liabilities and stockholders’ equity $         1,100,586     $         1,012,871  
     
    REMITLY GLOBAL, INC.
    Condensed Consolidated Statements of Cash Flows
    (unaudited)
       
      Three Months Ended March 31,
    (in thousands)   2025       2024  
    Cash flows from operating activities      
    Net income (loss) $         11,352     $         (21,080 )
    Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
    Depreciation and amortization           5,396               3,678  
    Stock-based compensation expense, net           35,792               34,088  
    Donation of common stock           959               —  
    Other           (4 )             249  
    Changes in operating assets and liabilities:      
    Disbursement prefunding           71,385               (6,194 )
    Customer funds receivable           (16,283 )             (59,432 )
    Prepaid expenses and other assets           (6,272 )             (10,377 )
    Operating lease right-of-use assets           2,041               1,392  
    Accounts payable           22,182               (22,707 )
    Customer liabilities           2,487               14,744  
    Accrued expenses and other liabilities           (198 )             10,429  
    Operating lease liabilities           4,066               (1,598 )
    Net cash provided by (used in) operating activities           132,903               (56,808 )
    Cash flows from investing activities      
    Purchases of property and equipment, and other           (13,963 )             (945 )
    Capitalized internal-use software costs           (2,949 )             (3,369 )
    Net cash used in investing activities           (16,912 )             (4,314 )
    Cash flows from financing activities      
    Proceeds from exercise of stock options           2,392               2,483  
    Proceeds from issuance of common stock in connection with ESPP           5,768               5,004  
    Proceeds from revolving credit facility borrowings           1,059,000               275,000  
    Repayments of revolving credit facility borrowings           (1,059,000 )             (255,000 )
    Taxes paid related to net share settlement of equity awards           (1,089 )             (1,366 )
    Net cash provided by financing activities           7,071               26,121  
    Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash           2,728               (1,099 )
    Net increase (decrease) in cash, cash equivalents, and restricted cash           125,790               (36,100 )
    Cash, cash equivalents, and restricted cash at beginning of period           369,817               325,029  
    Cash, cash equivalents, and restricted cash at end of period $         495,607     $         288,929  
    Reconciliation of cash, cash equivalents, and restricted cash      
    Cash and cash equivalents $         493,905     $         285,997  
    Restricted cash included in prepaid expenses and other current assets           632               2,190  
    Restricted cash included in other noncurrent assets, net           1,070               742  
    Total cash, cash equivalents, and restricted cash $         495,607     $         288,929  
     
    REMITLY GLOBAL, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (unaudited)
     
    Reconciliation of net income (loss) to Adjusted EBITDA:
           
      Three Months Ended March 31,
    (in thousands)   2025     2024(2)
    Net income (loss) $         11,352     $         (21,080 )
    Add:      
    Interest income, net           (488 )             (1,457 )
    Provision for income taxes           3,590               998  
    Depreciation and amortization           5,396               3,678  
    Other (income) expense, net           (2,221 )             1,569  
    Donation of common stock           959               —  
    Stock-based compensation expense, net           35,792               34,088  
    Payroll taxes related to stock-based compensation expense, net           3,140               3,515  
    Integration, restructuring, and other costs(1)           908               1,468  
    Adjusted EBITDA $         58,428     $         22,779  
     

    _________________________
    (1) Integration, restructuring, and other costs for the three months ended March 31, 2025 consisted primarily of non-recurring termination benefits. Integration, restructuring, and other costs for the three months ended March 31, 2024 consisted primarily of $0.8 million in restructuring charges incurred, $0.5 million of non-recurring legal charges, and $0.2 million related to the change in the fair value of the holdback liability associated with the acquisition of Rewire (O.S.G.) Research and Development Ltd.
    (2) As previously announced on February 19, 2025, the Company’s presentation of Adjusted EBITDA now excludes the impact of payroll taxes related to stock-based compensation expense, net. Prior period Adjusted EBITDA has been recast to reflect this change.

    Reconciliation of operating expenses to non-GAAP operating expenses:
           
      Three Months Ended March 31,
    (in thousands)   2025     2024(1)
    Customer support and operations $         22,573     $         20,119  
    Excluding: Stock-based compensation expense, net           256               353  
    Excluding: Payroll taxes related to stock-based compensation expense, net           8               10  
    Excluding: Integration, restructuring, and other costs           —               758  
    Non-GAAP customer support and operations $         22,309     $         18,998  
           
      Three Months Ended March 31,
        2025     2024(1)
    Marketing $         73,349     $         68,014  
    Excluding: Stock-based compensation expense, net           4,127               3,979  
    Excluding: Payroll taxes related to stock-based compensation expense, net           456               493  
    Excluding: Integration, restructuring, and other costs           490               —  
    Non-GAAP marketing $         68,276     $         63,542  
           
      Three Months Ended March 31,
        2025     2024(1)
    Technology and development $         73,851     $         63,206  
    Excluding: Stock-based compensation expense, net           21,237               19,627  
    Excluding: Payroll taxes related to stock-based compensation expense, net           1,981               2,012  
    Non-GAAP technology and development $         50,633     $         41,567  
           
      Three Months Ended March 31,
        2025     2024(1)
    General and administrative $         52,829     $         44,173  
    Excluding: Stock-based compensation expense, net           10,172               10,129  
    Excluding: Payroll taxes related to stock-based compensation expense, net           695               1,000  
    Excluding: Donation of common stock           959               —  
    Excluding: Integration, restructuring, and other costs           418               710  
    Non-GAAP general and administrative $         40,585     $         32,334  
     

    _________________________
    (1) As previously announced on February 19, 2025, the Company’s presentation of non-GAAP operating expenses now excludes the impact of payroll taxes related to stock-based compensation expense, net. Prior period non-GAAP operating expenses have been recast to reflect this change.


    As previously announced on February 19, 2025, the Company’s non-GAAP financial measures have been updated to exclude the impact of payroll taxes related to stock-based compensation expense, net. The below reconciliations show the 2024 and 2023 non-GAAP financial measures under the new presentation, which excludes the impact of payroll taxes related to stock-based compensation expense, net.

    In future periods, the Company expects to exclude the impact of payroll taxes related to stock-based compensation expense, net, from the Company’s non-GAAP financial measures and will not include the 2024 and 2023 recast reconciliations for this update in future filings.

    Reconciliation of net income (loss) to Adjusted EBITDA (New Presentation):
     
      Three Months Ended   Years Ended December 31,
    (in thousands) Q1 2023   Q2 2023   Q3 2023   Q4 2023   Q1 2024   Q2 2024   Q3 2024   Q4 2024     2023       2024  
    Net income (loss) $         (28,314 )   $         (18,850 )   $         (35,655 )   $         (35,021 )   $         (21,080 )   $         (12,091 )   $         1,917     $         (5,724 )   $         (117,840 )   $         (36,978 )
    Add:                                      
    Interest income, net           (1,635 )             (776 )             (1,223 )             (1,461 )             (1,457 )             (1,197 )             (1,305 )             (877 )             (5,095 )             (4,836 )
    Provision (benefit) for income taxes           370               (143 )             258               5,417               998               3,290               1,850               589               5,902               6,727  
    Depreciation and amortization           3,029               3,187               3,418               3,484               3,678               3,907               4,655               5,814               13,118               18,054  
    Other (income) expense, net           1,505               1,482               (376 )             (8 )             1,569               (5,962 )             (2,274 )             2,273               2,603               (4,394 )
    Donation of common stock           —               —               4,600               —               —               —               2,587               —               4,600               2,587  
    Stock-based compensation expense, net           29,234               35,200               36,573               35,960               34,088               37,157               39,278               41,614               136,967               152,137  
    Payroll taxes related to stock-based compensation expense, net           1,901               1,432               1,355               1,058               3,515               1,144               733               1,047               5,746               6,439  
    Acquisition, integration, restructuring, and other costs           1,173               316               2,901               (193 )             1,468               —               —               —               4,197               1,468  
    Adjusted EBITDA $         7,263     $         21,848     $         11,851     $         9,236     $         22,779     $         26,248     $         47,441     $         44,736     $         50,198     $         141,204  
    Reconciliation of operating expenses to non-GAAP operating expenses (New Presentation):
                                           
      Three Months Ended   Years Ended December 31,
    (in thousands) Q1 2023   Q2 2023   Q3 2023   Q4 2023   Q1 2024   Q2 2024   Q3 2024   Q4 2024     2023       2024  
    Customer support and operations $         19,931     $         21,483     $         21,190     $         19,917     $         20,119     $         19,999     $         21,792     $         22,008     $         82,521     $         83,918  
    Excluding: Stock-based compensation expense, net           205               419               386               394               353               259               278               268               1,404               1,158  
    Excluding: Payroll taxes related to stock-based compensation           31               14               15               11               10               4               5               3               71               22  
    Excluding: Acquisition, integration, restructuring, and other costs           —               —               739               —               758               —               —               —               739               758  
    Non-GAAP customer support and operations $         19,695     $         21,050     $         20,050     $         19,512     $         18,998     $         19,736     $         21,509     $         21,737     $         80,307     $         81,980  
                                           
      Three Months Ended   Years Ended December 31,
      Q1 2023   Q2 2023   Q3 2023   Q4 2023   Q1 2024   Q2 2024   Q3 2024   Q4 2024     2023       2024  
    Marketing $         44,123     $         53,600     $         61,351     $         75,343     $         68,014     $         77,056     $         74,792     $         83,937     $         234,417     $         303,799  
    Excluding: Stock-based compensation expense, net           2,983               4,727               4,525               3,930               3,979               4,521               4,514               4,595               16,165               17,609  
    Excluding: Payroll taxes related to stock-based compensation           186               229               217               157               493               236               179               352               789               1,260  
    Non-GAAP marketing $         40,954     $         48,644     $         56,609     $         71,256     $         63,542     $         72,299     $         70,099     $         78,990     $         217,463     $         284,930  
                                           
      Three Months Ended   Years Ended December 31,
      Q1 2023   Q2 2023   Q3 2023   Q4 2023   Q1 2024   Q2 2024   Q3 2024   Q4 2024     2023       2024  
    Technology and development $         49,376     $         54,309     $         57,014     $         59,240     $         63,206     $         67,554     $         68,446     $         70,611     $         219,939     $         269,817  
    Excluding: Stock-based compensation expense, net           16,631               18,588               19,828               19,920               19,627               20,354               21,873               22,527               74,967               84,381  
    Excluding: Payroll taxes related to stock-based compensation           1,010               745               651               532               2,012               620               351               428               2,938               3,411  
    Excluding: Acquisition, integration, restructuring, and other costs           —               —               524               700               —               —               —               —               1,224               —  
    Non-GAAP technology and development $         31,735     $         34,976     $         36,011     $         38,088     $         41,567     $         46,580     $         46,222     $         47,656     $         140,810     $         182,025  
                                           
      Three Months Ended   Years Ended December 31,
      Q1 2023   Q2 2023   Q3 2023   Q4 2023   Q1 2024   Q2 2024   Q3 2024   Q4 2024     2023       2024  
    General and administrative $         41,408     $         39,490     $         49,817     $         48,657     $         44,173     $         45,889     $         50,920     $         54,875     $         179,372     $         195,857  
    Excluding: Stock-based compensation expense, net           9,415               11,466               11,834               11,716               10,129               12,023               12,613               14,224               44,431               48,989  
    Excluding: Payroll taxes related to stock-based compensation           674               444               472               358               1,000               284               198               264               1,948               1,746  
    Excluding: Donation of common stock           —               —               4,600               —               —               —               2,587               —               4,600               2,587  
    Excluding: Acquisition, integration, restructuring, and other costs           1,173               316               1,638               (893 )             710               —               —               —               2,234               710  
    Non-GAAP general and administrative $         30,146     $         27,264     $         31,273     $         37,476     $         32,334     $         33,582     $         35,522     $         40,387     $         126,159     $         141,825  

    The MIL Network –

  • MIL-OSI: LiveRamp to Discuss Fiscal 2025 Fourth Quarter and Full Year Results

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, May 07, 2025 (GLOBE NEWSWIRE) — LiveRamp® (NYSE: RAMP), a leading data collaboration platform, today announced that its fiscal 2025 fourth quarter and full year earnings release will be issued on Wednesday, May 21, 2025 after the financial markets close. A conference call to discuss the results will be held on the same day at 1:30 p.m. PT.

    A live webcast of the conference call can be accessed on the LiveRamp Investor Relations website.

    Additionally, the conference call can be accessed via the telephone by dialing 800-715-9871 in North America or +1-646-307-1963 outside of North America. The conference call ID is 5079298.

    To automatically receive LiveRamp financial news by email, please visit the company’s Investor Relations website and subscribe to email alerts.

    About LiveRamp

    LiveRamp is a leading data collaboration technology platform, empowering marketers and media owners to deliver and measure marketing performance everywhere it matters. LiveRamp’s data collaboration network seamlessly unites data across advertisers, platforms, publishers, data providers, and commerce media networks—unlocking deep insights, delivering transformational consumer experiences, and driving measurable growth.

    Built on a foundation of strict neutrality, unmatched interoperability, and global scale, LiveRamp enables organizations to maximize the value of their data while accelerating innovation. Trusted by many of the world’s leading brands, retailers, financial services providers, and healthcare innovators, LiveRamp is helping to shape the future of responsible data collaboration in an AI-driven, outcomes-focused world where advertisers reach intended audiences and consumers receive more relevant advertising messages.

    LiveRamp is headquartered in San Francisco, California, with offices worldwide. Learn more at LiveRamp.com.

    For more information, contact:
    Drew Borst
    LiveRamp Investor Relations
    Investor.Relations@LiveRamp.com

    The MIL Network –

  • MIL-OSI: Robinhood Markets, Inc. to Present at the J.P. Morgan Global Technology, Media and Communications Conference on May 14, 2025

    Source: GlobeNewswire (MIL-OSI)

    MENLO PARK, Calif., May 07, 2025 (GLOBE NEWSWIRE) — Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced that it will be participating in the upcoming J.P. Morgan Global Technology, Media and Communications Conference on Wednesday, May 14, 2025.

    Robinhood Chief Brokerage Officer Steve Quirk is scheduled to present on Wednesday, May 14, 2025, at 9:20 AM ET / 6:20 AM PT. 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 U.S. Securities and Exchange Commission’s (“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 –

  • MIL-OSI: Texas Capital Announces Expansion of Corporate and Investment Banking Division

    Source: GlobeNewswire (MIL-OSI)

    DALLAS, May 07, 2025 (GLOBE NEWSWIRE) — Texas Capital Securities, a subsidiary of Texas Capital Bancshares, Inc. (NASDAQ: TCBI), today announced a significant expansion of the services offered by its Corporate and Investment Bank. The additions to personnel and corresponding enhancements in capabilities build upon the firm’s existing industry-focused Corporate Banking expertise, with significant impact on the breadth and reach of the Investment Bank in advisory and capital markets services. With the addition of professionals across Investment Banking Coverage, Equity Sales and Trading, Equity Research and Corporate Access, Texas Capital has further solidified its status as the premier full-service financial services firm headquartered in Texas.

    “We continue to build product and industry expertise on a platform that values integrity, high-quality advice and delivering tangible results for our clients,” said Rob C. Holmes, Chairman, President & CEO. “Today’s announcement reflects our dedication to serving as the ‘first call’ for business owners, executives and public company Boards of Directors seeking financial services and solutions.”

    Adding to a deep bench of industry veterans and other newly hired personnel, Texas Capital’s key recent senior hires include:

    Capital Markets

    • Robert (Bob) Chen joined Texas Capital from Guggenheim Partners​ to lead the Capital Markets business, including leveraged finance, loan syndications, private capital, equity capital markets and financial sponsor coverage. He brings more than 30 years of experience leading leveraged finance teams across TMT, energy/power, consumer retail, telecom and FIG.
    • Holly Smyth joined Texas Capital from B. Riley Securities to serve as Co-Head of Private Capital, advising private and public companies on debt capital structures. She brings 25 years of experience in debt capital markets and verticals including industrials, healthcare, consumer and business services.

    Investment Banking Coverage

    • Jon Merriman joined Texas Capital from B. Riley Securities to lead Equities. He brings more than 35 years of experience to the role, most recently serving as Chief Business Officer focused on originating and executing transactions in equity capital markets and equities trading. He is a seasoned leader with deep experience in managing fast-growing organizations, having founded, grown and sold Merriman Holdings, Inc., a boutique investment banking platform.
    • Ryan Bernath joined Texas Capital from B. Riley Securities to lead Investment Banking sector coverage. He brings more than 25 years of experience to the role, most recently serving as a Senior Managing Director focused on executing a wide range of mergers and acquisitions and corporate finance transactions for large-cap, mid-cap and small-cap public companies. Prior to B. Riley, he was a senior investment banker at Barclays and Lehman Brothers.

    Equity Sales, Trading & Research

    • Matthew (Matt) Johnson joined Texas Capital from Performance Edge Partners to lead Equity Sales, Trading & Research. He brings more than 25 years of experience managing equity businesses for top investment banking institutions, including Barclays and Lehman Brothers. He has helped build and restructure top-tier equity businesses and led trading teams ranked number one in block trading and consistently in the top five in Institutional Investor surveys.
    • Alex Rygiel joined Texas Capital from B. Riley Securities to lead Equity Research. He brings more than 30 years of experience in equity research, sales and trading with Friedman, Billings, Ramsey & Co. and Donaldson Lufkin & Jenrette.
    • Deena Sullivan and Charles Moreau joined Texas Capital from Oppenheimer & Co. to co-lead Corporate Access. Each brings more than 20 years of experience facilitating impactful dialogue between public company clients and institutional investors, with prior roles encompassing sales, marketing, relationship management, corporate access, institutional equity sales and trading and equity capital markets.

    To facilitate connectivity between Texas Capital clients and key financial centers in the United States, Texas Capital Securities today announced its intention to open offices in Los Angeles and Chicago and to relocate its office in New York City. Sales and trading, including corporate credit, public finance and equity underwriting and other activities, will continue to be conducted from Texas Capital’s trading floor in Dallas, Texas.

    “Texas Capital is positioned to capitalize on our exceptional growth as we serve clients in Texas and beyond as a trusted advisor, intermediary and underwriter,” said Daniel Hoverman, Head of Corporate & Investment Banking. “Our ability to continue to attract market-leading talent, including to our Corporate and Investment Banking team, evidences our continued aspiration to be the dominant financial services firm in the state of Texas, while being relevant nationally and recognized internationally. The ongoing investments in our platform reflect our vision and dedication to facilitating the strategic ambitions and satisfying the increasingly sophisticated needs of our clients.”

    About Texas Capital Bancshares, Inc.
    Texas Capital Bancshares, Inc. (NASDAQ®: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, is the parent company of Texas Capital Bank (“TCB”). Texas Capital is the collective brand name for TCB and its separate, non-bank affiliates and wholly owned subsidiaries. Texas Capital is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities. All services are subject to applicable laws, regulations and service terms. Deposit and lending products and services are offered by TCB. For deposit products, member FDIC. For more information, please visit www.texascapital.com.

    Trading in securities and financial instruments, strategic advisory, and other investment banking activities are performed by TCBI Securities, Inc., doing business as Texas Capital Securities. TCBI Securities, Inc. is a member of FINRA and SIPC and has registered with the SEC, MSRB, and other state securities regulators as a broker dealer. TCBI Securities, Inc. is a subsidiary of Texas Capital Bancshares, Inc., and an affiliate of Texas Capital Bank. All investing involves risks, including the loss of principal. Past performance does not guarantee future results. Securities and other investment products offered by TCBI Securities, Inc. are not FDIC insured, may lose value and are not bank guaranteed.

    The MIL Network –

  • MIL-OSI: Veeco Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    First Quarter 2025 Highlights:

    • Revenue of $167.3 million, compared with $174.5 million in the same period last year
    • GAAP net income of $11.9 million, or $0.20 per diluted share, compared with $21.9 million, or $0.37 per diluted share in the same period last year
    • Non-GAAP net income of $22.2 million, or $0.37 per diluted share, compared with $26.4 million, or $0.45 per diluted share in the same period last year

    PLAINVIEW, N.Y., May 07, 2025 (GLOBE NEWSWIRE) — Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its first quarter ended March 31, 2025. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.

    U.S. Dollars in millions, except per share data
                     
    GAAP Results   Q1 ’25   Q1 ’24
    Revenue   $ 167.3     $ 174.5  
    Net income   $ 11.9     $ 21.9  
    Diluted earnings per share   $ 0.20     $ 0.37  
    Non-GAAP Results   Q1 ’25   Q1 ’24
    Operating income   $ 24.3     $ 29.4  
    Net income   $ 22.2     $ 26.4  
    Diluted earnings per share   $ 0.37     $ 0.45  
                     

    “Veeco delivered solid results during the first quarter, including sequential and year-over-year growth in our Semiconductor business driven by growth in Advanced Packaging,” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “In addition, Veeco shared several exciting announcements, including receipt of Intel’s 2025 EPIC supplier award, new application wins in Laser Annealing, and new application wins in Wet Processing. Each reflect our continued execution and confidence our long-term strategy can generate value for shareholders in the coming years.”

    Guidance and Outlook

    The following guidance is provided for Veeco’s second quarter 2025:

    • Revenue is expected in the range of $135 million to $165 million
    • GAAP diluted earnings (loss) per share are expected in the range of ($0.05) to $0.17
    • Non-GAAP diluted earnings per share are expected in the range of $0.12 to $0.32

    Conference Call Information

    A conference call reviewing these results has been scheduled for today, May 7, 2025 starting at 5:00pm ET. To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco’s website at ir.veeco.com. A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call.

    About Veeco

    Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, single wafer etch & clean, lithography, and metal organic chemical vapor deposition (MOCVD) technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.

    Forward-looking Statements

    This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results; and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; global trade issues, including the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; our ability to obtain and protect intellectual property rights in key technologies; the effects of regional or global health epidemics; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management’s expectations, estimates, projections and assumptions as of the date of this press release or, in the case of any document referenced herein or incorporated by reference, the date of that document. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

    –financial tables attached-

    Veeco Contacts:

    Investors:       Anthony Pappone       (516) 500-8798       apappone@veeco.com
    Media:   Javier Banos   (516) 673-7328   jbanos@veeco.com
                 
    Veeco Instruments Inc. and Subsidiaries
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
     
      Three months ended March 31,
      2025      2024
    Net sales $ 167,292     $ 174,484  
    Cost of sales   98,825       99,065  
    Gross profit   68,467       75,419  
    Operating expenses, net:          
    Research and development   28,514       29,642  
    Selling, general, and administrative   25,028       24,700  
    Amortization of intangible assets   821       1,891  
    Other operating expense (income), net   (44 )     (2,859 )
    Total operating expenses, net   54,319       53,374  
    Operating income   14,148       22,045  
    Interest income (expense), net   836       705  
    Income (loss) before income taxes   14,984       22,750  
    Income tax expense (benefit)   3,037       896  
    Net income $ 11,947     $ 21,854  
               
    Income per common share:          
    Basic $ 0.21     $ 0.39  
    Diluted $ 0.20     $ 0.37  
               
    Weighted average number of shares:          
    Basic   57,753       55,968  
    Diluted   60,234       60,764  
                   
    Veeco Instruments Inc. and Subsidiaries
    Condensed Consolidated Balance Sheets
    (in thousands)
     
      March 31,   December 31,
      2025      2024
      (unaudited)        
    Assets              
    Current assets:              
    Cash and cash equivalents $ 174,898     $ 145,595  
    Restricted cash   169       224  
    Short-term investments   178,395       198,719  
    Accounts receivable, net   114,368       96,834  
    Contract assets   33,586       37,109  
    Inventories   254,051       246,735  
    Prepaid expenses and other current assets   39,338       39,316  
    Total current assets   794,805       764,532  
    Property, plant and equipment, net   113,787       113,789  
    Operating lease right-of-use assets   25,991       26,503  
    Intangible assets, net   8,010       8,832  
    Goodwill   214,964       214,964  
    Deferred income taxes   118,567       120,191  
    Other assets   2,700       2,766  
    Total assets $ 1,278,824     $ 1,251,577  
                   
    Liabilities and stockholders’ equity              
    Current liabilities:              
    Accounts payable $ 57,845     $ 43,519  
    Accrued expenses and other current liabilities   62,257       55,195  
    Contract liabilities   57,211       64,986  
    Income taxes payable   1,546       2,086  
    Current portion of long-term debt   —       26,496  
    Total current liabilities   178,859       192,282  
    Deferred income taxes   663       689  
    Long-term debt   249,955       249,702  
    Long-term operating lease liabilities   33,694       34,318  
    Other liabilities   3,795       3,816  
    Total liabilities   466,966       480,807  
                   
    Total stockholders’ equity   811,858       770,770  
    Total liabilities and stockholders’ equity $ 1,278,824     $ 1,251,577  
                   

    Note on Reconciliation Tables

    The below tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.

    These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.

    Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2025)
    (in thousands)
    (unaudited)
     
                Non-GAAP Adjustments        
    Three months ended March 31, 2025      GAAP   Share-Based
    Compensation    		      Amortization      Other      Non-GAAP
    Net sales   $ 167,292                 $ 167,292  
    Gross profit     68,467     1,343               69,810  
    Gross margin     40.9 %                 41.7 %
    Operating expenses     54,319     (7,865 )   (821 )   (99 )     45,534  
    Operating income     14,148     9,208     821     99 ^     24,276  
    Net income     11,947     9,208     821     231 ^     22,207  

    _______________
    ^   – See table below for additional details.

    Other Non-GAAP Adjustments (Q1 2025)
    (in thousands)
    (unaudited)
         
    Three months ended March 31, 2025       
    Other $ 99  
    Subtotal   99  
    Non-cash interest expense   257  
    Non-GAAP tax adjustment *   (125 )
    Total Other $ 231  

    _______________
    *   – The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

    Net Income per Common Share (Q1 2025)
    (in thousands, except per share amounts)
    (unaudited)
     
      Three months ended March 31, 2025
      GAAP   Non-GAAP
    Numerator:              
    Net income $ 11,947     $ 22,207  
    Interest expense associated with 2025 and 2027 Convertible Senior Notes   253       273  
    Net income available to common shareholders $ 12,200     $ 22,480  
                   
    Denominator:              
    Basic weighted average shares outstanding   57,753       57,753  
    Effect of potentially dilutive share-based awards   693       693  
    Dilutive effect of 2025 Convertible Senior Notes   —       174  
    Dilutive effect of 2027 Convertible Senior Notes (1)   1,788       1,354  
    Diluted weighted average shares outstanding   60,234       59,974  
                   
    Net income per common share:              
    Basic $ 0.21     $ 0.38  
    Diluted $ 0.20     $ 0.37  

    _______________
    (1) – The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

    Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2024)
    (in thousands)
    (unaudited)
     
                Non-GAAP Adjustments        
    Three months ended March 31, 2024        GAAP       Share-based
    Compensation    		      Amortization      Other      Non-GAAP
    Net sales   $ 174,484                 $ 174,484  
    Gross profit     75,419     1,730               77,149  
    Gross margin     43.2 %                 44.2 %
    Operating expenses     53,374     (6,352 )   (1,891 )   2,658       47,789  
    Operating income     22,045     8,082     1,891     (2,658 ) ^   29,360  
    Net income     21,854     8,082     1,891     (5,384 ) ^   26,443  

    _______________
    ^   – See table below for additional details.

    Other Non-GAAP Adjustments (Q1 2024)
    (in thousands)
    (unaudited)
     
    Three months ended March 31, 2024    
    Changes in contingent consideration $ (625 )
    Sale of productive assets   (2,033 )
    Subtotal   (2,658 )
    Non-cash interest expense   296  
    Non-GAAP tax adjustment *   (3,022 )
    Total Other $ (5,384 )

    _______________
    *   – The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

    Net Income per Common Share (Q1 2024)
    (in thousands, except per share amounts)
    (unaudited)
     
      Three months ended March 31, 2024
      GAAP   Non-GAAP
    Numerator:              
    Net income $ 21,854     $ 26,443  
    Interest expense associated with 2025 and 2027 Convertible Senior Notes   514       466  
    Net income available to common shareholders $ 22,368     $ 26,909  
                   
    Denominator:              
    Basic weighted average shares outstanding   55,968       55,968  
    Effect of potentially dilutive share-based awards   939       939  
    Dilutive effect of 2025 Convertible Senior Notes   1,104       1,104  
    Dilutive effect of 2027 Convertible Senior Notes (1)   1,788       1,354  
    Dilutive effect of 2029 Convertible Senior Notes   965       965  
    Diluted weighted average shares outstanding   60,764       60,330  
                   
    Net income per common share:              
    Basic $ 0.39     $ 0.47  
    Diluted $ 0.37     $ 0.45  

    _______________
    (1) – The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

    Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q1 2025 and 2024)
    (in thousands)
    (unaudited)
     
      Three months ended      Three months ended
      March 31, 2025   March 31, 2024
    GAAP Net income $ 11,947     $ 21,854  
    Share-based compensation   9,208       8,082  
    Amortization   821       1,891  
    Sale of productive assets   —       (2,033 )
    Changes in contingent consideration   —       (625 )
    Interest (income) expense, net   (836 )     (705 )
    Other   99       —  
    Income tax expense (benefit)   3,037       896  
    Non-GAAP Operating income $ 24,276     $ 29,360  
                   
    Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2025)
    (in millions, except per share amounts)
    (unaudited)
     
                        Non-GAAP Adjustments                
    Guidance for the three months ending                   Share-based                        
    June 30, 2025   GAAP   Compensation   Amortization      Other       Non-GAAP
    Net sales   $ 135     –   $ 165                 $ 135     –   $ 165  
    Gross profit     54     –     69     1     —     —       55     –     70  
    Gross margin     39 %   –     41 %                 40 %   –     42 %
    Operating expenses     57     –     58     (9 )   (1 )   —       47     –     48  
    Operating income (loss)     (3 )   –     11     10     1     —       8     –     22  
    Net income (loss)   $ (3 )   –   $ 10     10     1     (1 )   $ 7     –   $ 20  
                                                 
    Income (loss) per diluted common share   $ (0.05 )   –   $ 0.17                 $ 0.12     –   $ 0.32  
                                                         
    Income per Diluted Common Share (Q2 2025)
    (in millions, except per share amounts)
    (unaudited)
     
    Guidance for the three months ending June 30, 2025   GAAP   Non-GAAP
    Numerator:                                      
    Net income (loss) available to common shareholders   $ (3 )   –   $ 10     $ 7     –   $ 20  
                                           
    Denominator:                                      
    Basic weighted average shares outstanding     58           58       58           58  
    Effect of potentially dilutive share-based awards     —           1       1           1  
    Dilutive effect of 2027 Convertible Senior Notes (1)     —           2       —           1  
    Diluted weighted average shares outstanding     58           61       59           61  
                                           
    Net income per common share:                                      
    Income (loss) per diluted common share   $ (0.05 )   –   $ 0.17     $ 0.12     –   $ 0.32  

    _______________
    (1) – The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

    Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2025)
    (in millions)
    (unaudited)
     
    Guidance for the three months ending June 30, 2025                         
    GAAP Net income (loss)   $ (3 )   –   $ 10  
    Share-based compensation     10     –     10  
    Amortization     1     –     1  
    Interest income, net     (1 )   –     (1 )
    Income tax expense (benefit)     —     –     1  
    Non-GAAP Operating income   $ 8     –   $ 22  
                         

    Note: Amounts may not calculate precisely due to rounding.

    The MIL Network –

  • MIL-OSI: Silvaco Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Achieved gross bookings of $13.7 million and revenue of $14.1 million in the first quarter 2025

    Signed 9 new customers in the first quarter 2025 and expanded relationship with existing customers across key markets including AI, Photonics, and IoT

    Expanded Product Portfolio with the Acquisition of Tech-X Corporation

    SANTA CLARA, Calif., May 07, 2025 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO) (“Silvaco” or the “Company”), a provider of TCAD, EDA software, and SIP solutions that enable innovative semiconductor design and digital twin modeling through AI software and automation, today announced its first quarter 2025 results.

    “We are pleased to have completed our first acquisition since our IPO in the first quarter of 2025, and have since announced our second acquisition of 2025, advancing our inorganic growth strategy and expanding our product portfolio,” said Dr. Babak Taheri, Silvaco’s Chief Executive Officer. Dr. Taheri continued, “We believe our solid fundamentals and focus on innovation position us to sustain strong customer momentum and drive continued growth in our EDA and TCAD product lines through 2025. We are committed to defending shareholder value through performance, transparency, and responsible capital management. We believe the fundamentals of Silvaco are strong—and we’re taking clear, measurable steps to align our market presence with the long-term strength of our business.”

    Commenting on the financial results and outlook, Keith Tainsky, Silvaco’s Interim Chief Financial Officer, added, “Given the current economic uncertainty, we have provided a broad guidance range for the second quarter of 2025. The company remains well positioned to deliver solid growth, supported by strong customer demand. We also updated our full-year guidance and remain confident in our ability to achieve our strategic and financial objectives.”

    First Quarter 2025 and Recent Business Highlights

    • Acquired 9 new customers across key markets including AI infrastructure (Power, Memory, Foundry) Photonics, and IoT markets, which represented approximately 23% of gross bookings for the quarter. We also expanded opportunities with existing customers, which accounted for 38% of gross bookings.
    • Gained momentum with Power, Photonics, and Advanced CMOS customers as they expand adoption of the FTCO platform for their next-generation product development. We announced that Excelliance MOS adopted Silvaco DTCO Flow for next generation silicon carbide devices and our partnership with Korean Kyung Hee University’s Professor Jin Jang on FTCO for next generation display technologies.
    • Expanded SAM by an estimated $600 million with the acquisitions of Cadence’s PPC product line and Tech-X Corporation.
    • Faraday Technology selected Silvaco FlexCAN IP for advanced automotive ASIC design.
    • ProMOS adopted our Victory TCAD solution for the development of next generation silicon photonics devices.
    • On April 29, 2025, Silvaco closed the acquisition of Tech-X Corporation, expanding our product offerings into wafer-level and photonics digital twin modeling.
    • Beginning with this quarter, we will be providing a new performance metric called Annual Contract Value, or ACV. We use ACV internally as a supplemental measure to evaluate the performance of our customer agreements and the underlying momentum of the business. While not a measure calculated in accordance with GAAP, we believe ACV provides additional insight into the scale and timing of customer commitments, which may not be fully reflected in recognized revenue due to the timing of revenue recognition under ASC 606.

    First Quarter 2025 Financial Results

    GAAP Financial Results

    • Revenue of $14.1 million, down 11% year-over-year and down 21% quarter-over-quarter.
      • TCAD revenue of $7.9 million, down 26% year-over-year, primarily due to earlier renewals last year.
      • EDA revenue of $5.1 million, up 8% year-over-year, including the addition of PPC product revenue of $1.9 million.
      • SIP revenue of $1.1 million, up 89% year-over-year, primarily driven by new bookings in automotive and IoT customers.
    • GAAP gross profit and GAAP gross margin were $11.1 million and 79%, respectively, which includes the impact of $0.2 million in stock-based compensation expense, and $0.2 million in amortization of acquired intangible assets, down from $13.9 million and 88% in Q1 2024.
    • GAAP net loss of $19.3 million, compared to a GAAP net income of $1.4 million in Q1 2024.
    • GAAP basic net loss per share of $(0.67), compared to GAAP basic and diluted net income per share of $0.07 in Q1 2024.
    • As of March 31, 2025, cash and cash equivalents and marketable securities totaled $74.5 million.

    Key Operating Indicators and Non-GAAP Financial Results:

    • Gross bookings were $13.7 million, down 15% year-over-year.
    • As of March 31, 2025, the remaining performance obligation balance of $33.7 million, 45% of which is expected to be recognized as revenue in the next 12 months.
    • Non-GAAP gross profit and non-GAAP gross margin were $11.5 million and 82%, respectively, down from $13.9 million and 88% in Q1 2024.
    • Non-GAAP net loss of $1.9 million, compared to non-GAAP net income of $2.4 million in Q1 2024.
    • Non-GAAP diluted net loss per share of $(0.07), compared to non-GAAP diluted net income per share of $0.12 in Q1 2024.
    • On a trailing-twelve-month (TTM) basis ACV was $52.3 million for the first quarter, up 21% year-over-year. This increase was driven by the amount of growth in organic growth of term-based licenses and renewals, as well as the acquisition of PPC. While quarterly revenue may fluctuate, core annual recurring revenue from new bookings has shown consistent annual growth.

    For a discussion of the non-GAAP metrics presented in this press release, as well as a reconciliation of non-GAAP metrics to the nearest comparable GAAP metric, see “Discussion of Non-GAAP Financial Measures and Other Key Business Metrics” and “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.

    Supplementary materials to this press release, including first quarter 2025 financial results, can be found at https://investors.silvaco.com/financial-information/quarterly-results.

    Second Quarter and Full Year 2025 Financial Outlook

    As of May 7, 2025, Silvaco is providing updated guidance for its second quarter of 2025 and its full-year 2025, which represents Silvaco’s current estimates on its operations and financial results. The financial information below represents forward-looking financial information and in some instances forward-looking, non-GAAP financial information, including estimates of non-GAAP gross margin, non-GAAP operating income (loss) and non-GAAP diluted net income (loss) per share. GAAP gross margin is the most comparable GAAP measure to non-GAAP gross margin and GAAP operating income (loss) is the most comparable GAAP measure to non-GAAP operating income (loss). GAAP diluted net income (loss) per share is the most comparable GAAP measure to non-GAAP diluted net income (loss) per share. Non-GAAP gross margin differs from GAAP gross margin in that it excludes items such as stock-based compensation expense, amortization of acquired intangible assets, and acquisition-related professional fees and retention bonuses. Non-GAAP operating income (loss) differs from GAAP operating income (loss) in that it excludes items such as acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, acquisition-related professional fees and retention bonuses and IPO preparation costs. Non-GAAP diluted net income (loss) per share differs from GAAP diluted net income (loss) per share in that it excludes certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, acquisition-related professional fees and retention bonuses, change in fair value of contingent consideration, foreign exchange (gain) loss, and the income tax effect on non-GAAP items. Silvaco is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Silvaco has not provided guidance for GAAP gross margin, GAAP operating income or GAAP diluted net income (loss) per share or a reconciliation of the forward-looking non-GAAP gross margin or non-GAAP operating income or non-GAAP diluted net income (loss) per share guidance to GAAP gross margin or GAAP operating income or GAAP diluted net income (loss) per share, respectively. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

    Based on current business trends and conditions, the Company expects for second quarter 2025 the following:

    • Gross bookings in the range of $14.0 million to $18.0 million, which would compare to $19.5 million in the second quarter of 2024.
    • Revenue in the range of $12.0 million to $16.0 million, which would compare to $15.0 million in the second quarter of 2024.
    • Non-GAAP gross margin in the range of 80% to 83%, which would compare to 86% in the second quarter of 2024.
    • Non-GAAP operating loss in the range of ($4.0) million to ($2.0) million, compared to non-GAAP operating income of $1.7 million in the second quarter of 2024.
    • Non-GAAP diluted net loss per share in the range of ($0.10) to ($0.03), compared to net income per share of $0.07 in the second quarter of 2024.

    Based on current business trends and conditions, the Company expects for full year 2025, the following:

    • Gross bookings in the range of $67.0 million to $74.0 million, which would represent a 2% to 13% increase from $65.8 million in 2024.
    • Revenue in the range of $64.0 million to $70.0 million, which would represent a 7% to 17% increase from $59.7 million in 2024.
    • Non-GAAP gross margin in the range of 83% to 86%, which would compare to 86% in 2024.
    • Non-GAAP operating (loss) income in the range of ($2.0) million loss to $1.0 million income, which would compare to $5.5 million income in 2024.
    • Non-GAAP diluted net (loss) income per share in the range of ($0.07) net loss per share to $0.03 net income per share, compared to $0.25 net income per share in 2024.

    Q1 2025 Conference Call Details

    A press release highlighting the Company’s results along with supplemental financial results will be available at https://investors.silvaco.com/ along with an earnings presentation to accompany management’s prepared remarks. An archived replay of the conference call will be available on this website for a limited time after the call. Participants who want to join the call and ask a question may register for the call here to receive the dial-in numbers and unique PIN.

    Date: Wednesday, May 7, 2025
    Time: 5:00 p.m. Eastern time
    Webcast: Here (live and replay)

    About Silvaco

    Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation. Silvaco’s solutions are used for semiconductor and photonics processes, devices, and systems development across display, power devices, automotive, memory, high performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

    Safe Harbor Statement

    This press release contains forward-looking statements based on Silvaco’s current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silvaco are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silvaco and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

    These forward-looking statements include but are not limited to, statements regarding our future operating results, financial position, and guidance, our business strategy and plans, our objectives for future operations, our development or delivery of new or enhanced products, and anticipated results of those products for our customers, our competitive positioning, projected costs, technological capabilities, and plans, and macroeconomic trends.

    A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation, the following: (a) market conditions; (b) anticipated trends, challenges and growth in our business and the markets in which we operate; (c) our ability to appropriately respond to changing technologies on a timely and cost-effective basis; (d) the size and growth potential of the markets for our software solutions, and our ability to serve those markets; (e) our expectations regarding competition in our existing and new markets; (f) the level of demand in our customers’ end markets; (g) regulatory developments in the United States and foreign countries; (h) changes in trade policies, including the imposition of tariffs; (i) proposed new software solutions, services or developments; (j) our ability to attract and retain key management personnel; (k) our customer relationships and our ability to retain and expand our customer relationships; (l) our ability to diversify our customer base and develop relationships in new markets; (m) the strategies, prospects, plans, expectations, and objectives of management for future operations; (n) public health crises, pandemics, and epidemics and their effects on our business and our customers’ businesses; (o) the impact of the current conflicts between Ukraine and Russia and Israel and Hamas and the ongoing trade disputes among the United States and China on our business, financial condition or prospects, including extreme volatility in the global capital markets making debt or equity financing more difficult to obtain, more costly or more dilutive, delays and disruptions of the global supply chains and the business activities of our suppliers, distributors, customers and other business partners; (p) changes in general economic or business conditions or economic or demographic trends in the United States and foreign countries including changes in tariffs, interest rates and inflation; (q) our ability to raise additional capital; (r) our ability to accurately forecast demand for our software solutions; (s) our expectations regarding the outcome of any ongoing litigation; (t) our ability to successfully integrate recent acquisitions; (u) our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act and as a smaller reporting company under the Exchange Act; (v) our expectations regarding our ability to obtain, maintain, protect and enforce intellectual property protection for our technology; (w) our status as a controlled company; and (x) our use of the net proceeds from our initial public offering.

    It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. Additional information relating to the uncertainty affecting Silvaco’s business is contained in Silvaco’s filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Relations section of Silvaco’s website at http://investors.silvaco.com/. These forward-looking statements represent Silvaco’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Silvaco disclaims any obligation to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

    Discussion of Non-GAAP Financial Measures and Other Key Business Metrics

    We use certain non-GAAP financial measures to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share. We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons.

    We define non-GAAP gross profit and non-GAAP gross margin as our GAAP gross profit and GAAP gross margin adjusted to exclude certain costs, including stock-based compensation expense, amortization of acquired intangible assets and acquisition-related professional fees and retention bonuses. We define non-GAAP operating income (loss), as our GAAP operating income (loss) adjusted to exclude certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, and acquisition-related professional fees and retention bonuses. We define non-GAAP net income (loss) as our GAAP net income (loss) adjusted to exclude certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, acquisition-related professional fees and retention bonuses, change in fair value of contingent consideration, foreign exchange (gain) loss, and the income tax effect on non-GAAP items. Our non-GAAP diluted net income (loss) per share is calculated in the same way as our non-GAAP net income (loss), but on a per share basis. We monitor non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share as non-GAAP financial measures to supplement the financial information we present in accordance with GAAP to provide investors with additional information regarding our financial results.

    Certain items are excluded from our non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share because these items are non-cash in nature or are not indicative of our core operating performance and render comparisons with prior periods and competitors less meaningful. We adjust GAAP gross profit, GAAP gross margin, GAAP operating income (loss), GAAP net income (loss), and GAAP diluted net income (loss) per share for these items to arrive at non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structure and the method by which the assets were acquired. By excluding certain items that may not be indicative of our recurring core operating results, we believe that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share provide meaningful supplemental information regarding our performance.

    We believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze our financial performance and the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

    Annual Contract Value (“ACV”) is a key performance metric for Silvaco and is useful to investors in assessing the strength and trajectory of the business. ACV is a supplemental metric to help evaluate the annual performance of the business. Over the life of the contract, ACV equals the total value realized from a customer. ACV is not impacted by the timing of license revenue recognition. ACV is used by management in financial and operational decision-making. ACV is not a replacement for, and should be viewed independently of, GAAP revenue and deferred revenue, as ACV is a performance metric and is not intended to be combined with any of these items. There is no GAAP measure comparable to ACV.

    ACV is composed of the following: (i) the annualized value of term based software licenses with start dates or anniversary dates during the period, plus; (ii) the value of perpetual license contracts with start dates during the period, plus; (iii) the annualized value of maintenance & support as well as any fixed-term services contracts with start dates or anniversary dates during the period, plus; (iv) the value of fixed-deliverable services contracts. Silvaco and the Silvaco logo are registered trademarks of Silvaco Group, Inc. All other trademarks and service marks are the property of their respective owners.

    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in thousands except share and par value amounts)
           
      March 31, 2025   December 31, 2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 29,489     $ 19,606  
    Current marketable securities   45,048       63,071  
    Accounts receivable, net   5,783       9,211  
    Contract assets, net   15,102       11,932  
    Prepaid expenses and other current assets   4,500       3,460  
    Total current assets   99,922       107,280  
    Non-current assets:      
    Non-current marketable securities   —       4,785  
    Property and equipment, net   890       865  
    Operating lease right-of-use assets, net   1,534       1,711  
    Intangible assets, net   9,997       4,369  
    Goodwill   14,337       9,026  
    Non-current portion of contract assets   9,860       12,611  
    Other assets   1,595       1,698  
    Total non-current assets   38,213       35,065  
    Total assets $ 138,135     $ 142,345  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 2,137     $ 3,316  
    Accrued expenses and other current liabilities   32,426       19,801  
    Accrued income taxes   1,728       1,668  
    Deferred revenue, current   8,618       7,497  
    Operating lease liabilities, current   644       744  
    Vendor financing obligation, current   1,191       1,462  
    Total current liabilities   46,744       34,488  
    Non-current liabilities:      
    Deferred revenue, non-current   3,604       3,593  
    Operating lease liabilities, non-current   866       946  
    Vendor financing obligation, non-current   2,995       2,928  
    Other non-current liabilities   333       307  
    Total liabilities   54,542       42,262  
    Stockholders’ equity:      
    Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2025 and December 31, 2024 , respectively   —       —  
    Common stock, $0.0001 par value; 500,000,000 shares authorized; 28,805,280 and 28,526,615 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively   3       3  
    Additional paid-in capital   132,937       130,360  
    Accumulated deficit   (47,285 )     (28,012 )
    Accumulated other comprehensive loss   (2,062 )     (2,268 )
    Total stockholders’ equity   83,593       100,083  
    Total liabilities and stockholders’ equity $ 138,135     $ 142,345  
           
           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
    (Unaudited, in thousands except share and par value amounts)
           
      Three Months Ended March 31,
        2025       2024  
    Revenue:      
    Software license revenue $ 10,009     $ 12,258  
    Maintenance and service   4,083       3,631  
    Total revenue   14,092       15,889  
    Cost of revenue   3,016       1,973  
    Gross profit   11,076       13,916  
    Operating expenses:      
    Research and development   4,800       3,616  
    Selling and marketing   4,719       3,312  
    General and administrative   8,120       4,600  
    Estimated litigation claim   13,069       —  
    Total operating expenses   30,708       11,528  
    Operating (loss) income   (19,632 )     2,388  
    Interest income   863       —  
    Interest and other expense, net   (291 )     (205 )
    (Loss) income before income tax provision   (19,060 )     2,183  
    Income tax provision   213       805  
    Net (loss) income $ (19,273 )   $ 1,378  
    Net (loss) income per share:      
    Basic and diluted $ (0.67 )   $ 0.07  
    Weighted average shares used in computing per share amounts:      
    Basic and diluted   28,694,295       20,000,000  
           
           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in thousands)
           
      Three Months Ended March 31,
        2025       2024  
    Cash flows from operating activities:      
    Net (loss) income $ (19,273 )   $ 1,378  
    Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:      
    Depreciation and amortization   438       120  
    Stock-based compensation expense   2,277       —  
    Provision for credit losses   10       222  
    Estimated litigation claim   13,069       —  
    Accretion of discount on marketable securities, net   (261 )     —  
    Change in fair value of contingent consideration   35       (8 )
    Changes in operating assets and liabilities:      
    Accounts receivable   3,520       (1,844 )
    Contract assets   440       (3,679 )
    Prepaid expenses and other current assets   (1,026 )     788  
    Other assets   119       (274 )
    Accounts payable   (1,183 )     877  
    Accrued expenses and other current liabilities   55       (729 )
    Accrued income taxes   58       574  
    Deferred revenue   567       (21 )
    Other non-current liabilities   20       24  
    Net cash used in operating activities   (1,135 )     (2,572 )
    Cash flows from investing activities:      
    Maturities of marketable securities   23,000       —  
    Acquisition of Process Proximity Compensation   (11,500 )     —  
    Purchases of property and equipment   (96 )     (10 )
    Net cash provided by (used in) investing activities   11,404       (10 )
    Cash flows from financing activities:      
    Proceeds from loan facility   —       4,250  
    Deferred transaction costs   —       (364 )
    Payroll taxes related to shares withheld from employees   (252 )     —  
    Contingent consideration   (46 )     (13 )
    Payments of vendor financing obligation   (205 )     —  
    Net cash (used in) provided by financing activities   (503 )     3,873  
    Effect of exchange rate fluctuations on cash and cash equivalents   117       27  
    Net increase in cash and cash equivalents   9,883       1,318  
    Cash and cash equivalents, beginning of period   19,606       4,421  
    Cash and cash equivalents, end of period $ 29,489     $ 5,739  
           
    SILVACO GROUP, INC.
    REVENUE
    (Unaudited)
        2024   2025
        Q1 Q2 Q3 Q4 Year   Q1
    Revenue by Region:                
    Americas   27 % 51 % 31 % 40 % 38 %   20 %
    APAC   62 % 41 % 58 % 52 % 53 %   66 %
    EMEA   11 % 8 % 11 % 8 % 9 %   14 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    Revenue by Product Line:                
    TCAD   66 % 69 % 59 % 71 % 68 %   56 %
    EDA   30 % 20 % 24 % 24 % 24 %   36 %
    SIP   4 % 11 % 17 % 5 % 8 %   8 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    Revenue Item Category:                
    Software license revenue   77 % 74 % 62 % 78 % 74 %   71 %
    Maintenance and service   23 % 26 % 38 % 22 % 26 %   29 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    Revenue by Country:                
    United States   26 % 50 % 30 % 39 % 37 %   20 %
    China   11 % 17 % 25 % 23 % 18 %   14 %
    Other   63 % 33 % 45 % 38 % 45 %   66 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    SILVACO GROUP, INC.
    GAAP to Non-GAAP Reconciliation
    (Unaudited, in thousands except per share amounts)
     
      Three Months Ended
      3/31/2025   3/31/2024
           
    GAAP Cost of revenue $ 3,016     $ 1,973  
    Less: Stock-based compensation expense   (199 )     —  
    Less: Amortization of acquired intangible assets   (249 )     —  
    Less: Acquisition-related professional fees and retention bonus   (8 )     —  
    Non-GAAP Cost of revenue $ 2,560     $ 1,973  
    GAAP Gross profit $ 11,076     $ 13,916  
    Add: Stock-based compensation expense   199       —  
    Add: Amortization of acquired intangible assets   249       —  
    Add: Acquisition-related professional fees and retention bonus   8       —  
    Non-GAAP Gross profit $ 11,532     $ 13,916  
    GAAP Research and development $ 4,800     $ 3,616  
    Less: Stock-based compensation expense   (244 )     —  
    Less: Acquisition-related professional fees and retention bonus   (18 )     —  
    Less: Amortization of acquired intangible assets   (51 )     (70 ) 
    Non-GAAP Research and development $ 4,487     $ 3,546  
    GAAP Selling and marketing $ 4,719     $ 3,312  
    Less: Stock-based compensation expense   (323 )      —  
    Less: IPO preparation costs   —       -127  
    Non-GAAP Selling and marketing $ 4,396     $ 3,185  
    GAAP General and administrative $ 8,120     $ 4,600  
    Less: Stock-based compensation expense   (1,511 )     —  
    Less: Acquisition-related estimated litigation claim and legal costs   (726 )     (594 )
    Less: Acquisition-related professional fees and retention bonus   (677 )     —  
    Less: Amortization of acquired intangible assets   (62 )     —  
    Less: IPO preparation costs   —       (139 )
    Non-GAAP General and administrative $ 5,144     $ 3,867  
    GAAP Estimated litigation claim $ 13,069     $ —  
    Less: Acquisition-related estimated litigation claim and legal costs   (13,069 )     —  
    Non-GAAP Estimated litigation claim $ —     $ —  
    GAAP Operating expenses $ 30,708     $ 11,528  
    Less: Stock-based compensation expense   (2,078 )     —  
    Less: Acquisition-related estimated litigation claim and legal costs   (13,795 )     (594 )
    Less: Acquisition-related professional fees and retention bonus   (695 )     —  
    Less: IPO preparation costs   —       (266 )
    Less: Amortization of acquired intangible assets   (113 )     (70 )
    Non-GAAP Operating expenses $ 14,027     $ 10,598  
    GAAP Operating (loss) income $ (19,632 )   $ 2,388  
    Add: Stock-based compensation expense   2,277       —  
    Add: Acquisition-related estimated litigation claim and legal costs   13,795       594  
    Add: Acquisition-related professional fees and retention bonus   703       —  
    Add: IPO preparation costs   —       266  
    Add: Amortization of acquired intangible assets   362       70  
    Non-GAAP Operating (loss) income $ (2,495 )   $ 3,318  
    GAAP Net (loss) income $ (19,273 )   $ 1,378  
    Add: Stock-based compensation expense   2,277       —  
    Add: Acquisition-related estimated litigation claim and legal costs   13,795       594  
    Add: Acquisition-related professional fees and retention bonus   703       —  
    Add: IPO preparation costs   —       266  
    Add: Amortization of acquired intangible assets   362       70  
    Add (Less): Change in fair value of contingent consideration   35       (8 )
    Add (Less): Foreign exchange (gain) loss   205       130  
    Add (Less): Income tax effect of non-GAAP adjustment   (5 )     (33 )
    Non-GAAP Net (loss) income $ (1,901 )   $ 2,397  
    GAAP Net income (loss) per share:      
    Basic and diluted: $ (0.67 )   $ 0.07  
    Non-GAAP Net income (loss) per share:      
    Basic and diluted $ (0.07 )   $ 0.12  
    Weighted average shares used in GAAP and non-GAAP net income (loss) per share:      
    Basic and diluted   28,694,295       20,000,000  
           

    Investor Contact:
    Greg McNiff
    investors@silvaco.com 

    Media Contact:
    Farhad Hayat
    press@silvaco.com

    The MIL Network –

  • MIL-OSI: Encore Capital Group Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    • Favorable purchasing conditions continue in U.S. market
    • Global portfolio purchases up 24% to $368 million, including record $316 million in U.S.
    • Global collections up 18% to $605 million, including record $454 million in U.S.
    • Earnings per share of $1.93

    SAN DIEGO, May 07, 2025 (GLOBE NEWSWIRE) — Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the first quarter ended March 31, 2025.

    “Encore’s 2025 is off to a strong start, which is reflected in every measure of our first quarter financial performance,” said Ashish Masih, President and Chief Executive Officer. “Portfolio purchases in Q1 of $368 million were up 24% compared to the first quarter last year and collections of $605 million were up 18%. Our collections performance helped earnings more than double compared to last year, as first quarter earnings per share of $1.93 was up 103% compared to the $0.95 per share we delivered a year ago.”

    “Our MCM business in the U.S. continues to deliver very strong results. Empowered by the ongoing favorable supply environment, MCM portfolio purchases in the first quarter were a record $316 million, up 34% compared to the year ago quarter, at very attractive returns. MCM also delivered record collections of $454 million in the first quarter, up 23% compared to Q1 a year ago, driven by superior execution.”

    “Our Cabot business in Europe delivered a solid first quarter. Portfolio purchases of $51 million were in line with Cabot’s historical trend and collections of $150 million were up 7% compared to the first quarter last year.”

    “As a result of our strong start to the year and our continued investment and operational execution, we are reiterating our guidance for 2025 which we originally established in February. We anticipate our global portfolio purchasing this year will exceed the $1.35 billion of purchases we made in 2024 and we expect our year-over-year collections growth to be 11% to $2.4 billion. As always, we remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore their financial health,” said Masih.

    In the first quarter, the company repurchased $10 million of its shares of common stock.

    Financial Highlights for the First Quarter of 2025:

      Three Months Ended March 31,
    (in thousands, except percentages and earnings per share)   2025     2024   Change
    Portfolio purchases(1) $ 367,851   $ 295,714   24 %
    Average receivable portfolios(2) $ 3,864,450   $ 3,499,910   10 %
    Estimated Remaining Collections (ERC) $ 8,862,661   $ 8,307,294   7 %
    Collections $ 604,807   $ 510,887   18 %
    Revenues $ 392,775   $ 328,386   20 %
    Operating expenses $ 263,432   $ 244,795   8 %
    Net income $ 46,796   $ 23,239   101 %
    Earnings per share $ 1.93   $ 0.95   103 %

    ______________________

    (1)   Includes U.S. purchases of $316.4 million and $236.5 million, and Europe purchases of $51.5 million and $59.2 million in Q1 2025 and Q1 2024, respectively.

    (2)   Represents the average of receivable portfolios for the quarter (receivable portfolios at the beginning and end of the quarter divided by 2).

    Conference Call and Webcast

    Encore will host a conference call and slide presentation today, May 7, 2025, at 2:00 p.m. Pacific / 5:00 p.m. Eastern time, to present and discuss first quarter results.

    Members of the public are invited to access the live webcast via the Internet by logging in on the Investor Relations page of Encore’s website at encorecapital.com. To access the live conference call by telephone, please pre-register using this link. Registrants will receive confirmation with dial-in details.

    For those who cannot listen to the live broadcast, a replay of the webcast will be available on the Company’s website shortly after the call concludes.
    Non-GAAP Financial Measures

    This news release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company has included information concerning adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure is a useful indicator of the Company’s ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. Adjusted EBITDA has not been prepared in accordance with GAAP and should not be considered as an alternative to, or more meaningful than, net income and net income per share as indicators of the Company’s operating performance. Further, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. A reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure is below.

    About Encore Capital Group, Inc.

    Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services for consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers.

    Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com.

    Forward Looking Statements

    The statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results (including purchases and collections), performance, supply and pricing, liquidity, business plans or prospects. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent report on Form 10-K, as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.

    Contact:

    Bruce Thomas
    Encore Capital Group, Inc.
    Vice President, Global Investor Relations
    bruce.thomas@encorecapital.com

    SOURCE: Encore Capital Group, Inc.

    FINANCIAL TABLES FOLLOW

     
    ENCORE CAPITAL GROUP, INC.
    Condensed Consolidated Statements of Financial Condition
    (In Thousands, Except Par Value Amounts)
    (Unaudited)
      March 31,
    2025    		   December 31,
    2024
    Assets      
    Cash and cash equivalents $ 187,117     $ 199,865  
    Receivable portfolios, net   3,952,531       3,776,369  
    Property and equipment, net   82,014       80,597  
    Other assets   228,514       225,090  
    Goodwill   519,410       507,808  
    Total assets $ 4,969,586     $ 4,789,729  
    Liabilities and Equity      
    Liabilities:      
    Accounts payable and accrued liabilities $ 234,000     $ 233,545  
    Borrowings   3,790,698       3,672,762  
    Other liabilities   125,827       116,091  
    Total liabilities   4,150,525       4,022,398  
    Commitments and Contingencies      
    Equity:      
    Convertible preferred stock, $0.01 par value, 5,000 shares authorized, no
    shares issued and outstanding    		   —       —  
    Common stock, $0.01 par value, 75,000 shares authorized, 23,510 and 23,691
    shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively    		   235       237  
    Additional paid-in capital   9,645       19,297  
    Accumulated earnings   956,723       909,927  
    Accumulated other comprehensive loss   (147,542 )     (162,130 )
    Total stockholders’ equity   819,061       767,331  
    Total liabilities and stockholders’ equity $ 4,969,586     $ 4,789,729  
     

    The following table presents certain assets and liabilities of consolidated variable interest entities (“VIEs”) included in the condensed consolidated statements of financial condition above. Most assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs. The liabilities exclude amounts where creditors or beneficial interest holders have recourse to the general credit of the Company.

     
      March 31,
    2025    		   December 31,
    2024
    Assets      
    Cash and cash equivalents $ 37,113   $ 23,875
    Receivable portfolios, net   907,079     895,704
    Other assets   4,583     3,699
    Liabilities      
    Accounts payable and accrued liabilities   3,148     2,946
    Borrowings   626,879     599,830
    Other liabilities   2,644     887
               
    ENCORE CAPITAL GROUP, INC.
    Condensed Consolidated Statements of Income
    (In Thousands, Except Per Share Amounts)
    (Unaudited)
      Three Months Ended
    March 31,
        2025       2024  
    Revenues      
    Portfolio revenue $ 345,218     $ 315,852  
    Changes in recoveries   21,464       (12,409 )
    Total debt purchasing revenue   366,682       303,443  
    Servicing revenue   22,547       20,379  
    Other revenues   3,546       4,564  
    Total revenues   392,775       328,386  
    Operating expenses      
    Salaries and employee benefits   105,932       104,184  
    Cost of legal collections   68,013       58,721  
    General and administrative expenses   41,018       36,241  
    Other operating expenses   34,252       30,367  
    Collection agency commissions   6,873       7,434  
    Depreciation and amortization   7,344       7,848  
    Total operating expenses   263,432       244,795  
    Income from operations   129,343       83,591  
    Other expense      
    Interest expense   (70,530 )     (55,765 )
    Other income   1,647       2,666  
    Total other expense   (68,883 )     (53,099 )
    Income before income taxes   60,460       30,492  
    Provision for income taxes   (13,664 )     (7,253 )
    Net income $ 46,796     $ 23,239  
           
    Earnings per share:      
    Basic $ 1.96     $ 0.98  
    Diluted $ 1.93     $ 0.95  
           
    Weighted average shares outstanding:      
    Basic   23,879       23,784  
    Diluted   24,269       24,468  
                   
    ENCORE CAPITAL GROUP, INC.
    Condensed Consolidated Statements of Cash Flows
    (Unaudited, In Thousands)
      Three Months Ended March 31,
        2025       2024  
    Operating activities:      
    Net income $ 46,796     $ 23,239  
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation and amortization   7,344       7,848  
    Other non-cash interest expense, net   3,544       3,727  
    Stock-based compensation expense   3,424       3,357  
    Changes in recoveries   (21,464 )     12,409  
    Other, net   1,737       887  
    Changes in operating assets and liabilities      
    Other assets   (3,499 )     (6,223 )
    Accounts payable, accrued liabilities and other liabilities   7,401       5,740  
    Net cash provided by operating activities   45,283       50,984  
    Investing activities:      
    Purchases of receivable portfolios, net of put-backs   (362,712 )     (291,367 )
    Collections applied to receivable portfolios   259,589       195,035  
    Purchases of property and equipment   (6,990 )     (6,861 )
    Other, net   9,835       12,311  
    Net cash used in investing activities   (100,278 )     (90,882 )
    Financing activities:      
    Payment of loan and debt refinancing costs   (255 )     (10,202 )
    Proceeds from credit facilities   246,426       248,549  
    Repayment of credit facilities   (185,831 )     (696,351 )
    Proceeds from senior secured notes   —       500,000  
    Repayment of senior secured notes   —       (9,770 )
    Repurchase and retirement of common stock   (10,004 )     —  
    Other, net   (9,999 )     23,564  
    Net cash provided by financing activities   40,337       55,790  
    Net (decrease) increase in cash and cash equivalents   (14,658 )     15,892  
    Effect of exchange rate changes on cash and cash equivalents   1,910       (1,266 )
    Cash and cash equivalents, beginning of period   199,865       158,364  
    Cash and cash equivalents, end of period $ 187,117     $ 172,990  
           
    Supplemental disclosures of cash flow information:      
    Cash paid for interest $ 41,303     $ 46,469  
    Cash paid for income taxes, net of refunds   1,247       1,542  
    Supplemental schedule of non-cash investing activities:      
    Receivable portfolios transferred to real estate owned $ 1,040     $ 2,045  
                   
    ENCORE CAPITAL GROUP, INC.
    Supplemental Financial Information
    Reconciliation of Non-GAAP Metrics
    Adjusted EBITDA
      Three Months Ended
    March 31,
    (in thousands, unaudited)   2025       2024  
    GAAP net income, as reported $ 46,796     $ 23,239  
    Adjustments:      
    Interest expense   70,530       55,765  
    Interest income   (1,546 )     (1,368 )
    Provision for income taxes   13,664       7,253  
    Depreciation and amortization   7,344       7,848  
    Stock-based compensation expense   3,424       3,357  
    Net loss (gain) on derivative instruments(1)   —       (195 )
    Acquisition, integration and restructuring related expenses(2)   248       2,319  
    Adjusted EBITDA $ 140,460     $ 98,218  
    Collections applied to principal balance(3) $ 244,300     $ 214,551  

    ________________________

    (1)   Amount represents gain or loss recognized on derivative instruments that are not designated as hedging instruments or gain or loss recognized on derivative instruments upon dedesignation of hedge relationships. We adjust for this amount because we believe the gain or loss on derivative contracts is not indicative of ongoing operations.
    (2)   Amount represents acquisition, integration and restructuring related expenses. We adjust for this amount because we believe these expenses are not indicative of ongoing operations; therefore, adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results.
    (3)   Amount represents (a) gross collections from receivable portfolios less (b) debt purchasing revenue, plus (c) proceeds applied to basis from sales of real estate owned (“REO”) assets and, when applicable, other receivable portfolios. A reconciliation of “collections applied to receivable portfolios, net” to “collections applied to principal balance” is available in the Form 10-Q for the period ending March 31, 2025.

    The MIL Network –

  • MIL-OSI: Cerence Announces Second Quarter Fiscal 2025 Results; Revenue and Profitability Exceed High End of Guidance

    Source: GlobeNewswire (MIL-OSI)

    Headlines

    • Revenue of $78M; free cash flow of $13.1M marks fourth consecutive positive quarter
    • Company reiterates full-year guidance for revenue and raises full-year guidance for profitability and cash flow
    • Continued innovation and customer momentum for Cerence xUI, the company’s next-gen platform

    BURLINGTON, Mass., May 07, 2025 (GLOBE NEWSWIRE) — Cerence Inc. (NASDAQ: CRNC) (“Cerence AI”), a global leader pioneering conversational AI-powered user experiences, today reported its second quarter fiscal year 2025 results for the quarter ended March 31, 2025.

    Results Summary (1,2)
    (in millions, except per share data)

        Three Months Ended     Six Months Ended  
        March 31,     March 31,  
        2025     2024     2025     2024  
    GAAP revenue (4)   $ 78.0     $ 67.8     $ 128.9     $ 206.2  
    GAAP gross margin     77.1 %     69.2 %     72.3 %     77.1 %
    GAAP total operating expenses (3)   $ 42.8     $ 311.3     $ 92.8     $ 364.7  
    Non-GAAP total operating expenses   $ 34.1     $ 50.0     $ 68.2     $ 94.4  
    GAAP net income (loss) (3)   $ 21.7     $ (278.0 )   $ (2.6 )   $ (254.1 )
    Adjusted EBITDA   $ 29.5     $ (0.3 )   $ 30.8     $ 70.1  
    Free cash flow   $ 13.1     $ (0.8 )   $ 21.0     $ (4.5 )
    GAAP net income (loss) per share – diluted (3)   $ 0.46     $ (6.66 )   $ (0.06 )   $ (6.13 )
     
    (1) As previously disclosed, for the six months ended March 31, 2024, revenue includes the non-cash revenue associated with the Toyota “Legacy” contract and related impacts totaling $86.6M.
    (2) Please refer to the “Discussion of Non-GAAP Financial Measures” and “Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures” included elsewhere in this release for more information regarding our use of non-GAAP financial measures.
    (3) As previously disclosed, for the six months ended March 31, 2024, operating expenses include a Goodwill impairment charge of $252M.
    (4) Q2FY25 and Q2FY24 revenue include $21.5 million and $10.4 million of revenue from fixed license contracts, respectively.
     

    “I’m incredibly proud of what our team has accomplished. We surpassed the high end of our revenue and adjusted EBITDA guidance and posted our fourth consecutive quarter of positive free cash flow, demonstrating the high value we provide to the world’s leading automakers as they work through the ongoing macro uncertainties and complexities facing the industry today,” said Brian Krzanich, CEO, Cerence AI. “As we look to the future and based on currently available information, we believe we are well-positioned to continue supporting our customers as they work to bring an enhanced experience to their drivers. With Cerence xUI, we are partnering with OEMs as they contemplate and build their future infotainment platforms, as well as delivering enhanced user experiences via over-the-air updates as automakers upgrade their current systems to deliver next-gen features and capabilities to their drivers today.” 

    Cerence Key Performance Indicators
    To help investors gain further insight into Cerence’s business and its performance, management provides a set of key performance indicators that includes:

    Key Performance Indicator1   Q2FY25
    Percent of worldwide auto production with Cerence Technology (trailing twelve months (“TTM”))   51 %
    Change in number of Cerence connected cars shipped (TTM over prior year TTM)2   10 %
    Change in Adjusted Total Billings (TTM over prior year TTM)3   0 %
           
    (1) Please refer to the “Key Performance Indicators” section included elsewhere in this release for more information regarding the definitions and our use of key performance indicators.
    (2) Based on IHS Markit data, global auto production decreased 1%, calculated TTM over prior year TTM.
    (3) Adjusted Total Billings excludes professional services and prepay contracts and is adjusted for prepay consumption. Change in Adjusted Total Billings is calculated TTM over prior year TTM.
           

    Third Quarter and Full Year Fiscal 2025 Outlook
    For the fiscal quarter ending June 30, 2025, revenue is expected to be in the range of $52 million to $56 million, where no material Fixed License revenue contracts are expected to be signed during the quarter. Gross margins are projected between 66% and 68% and net loss is projected in the range of $13 million to $10 million. Adjusted EBITDA is expected to be in the range of $1 million to $4 million. The adjusted EBITDA guidance excludes amortization of acquired intangible assets, stock-based compensation, restructuring and other costs.

    Revenue guidance for the full fiscal year ending September 30, 2025 remains unchanged; however, net loss is now projected in the range of $35 million to $29 million, adjusted EBITDA is now expected to be in the range of $28 million to $34 million, net cash provided by operating activities is projected in the range of $39 million to $45 million, and free cash flow is expected in the range of $25 million to $35 million.

    Additional details regarding guidance will be provided during the company’s earnings call.

    Cerence Conference Call and Webcast
    The company will host a live conference call and webcast with slides to discuss its results today at 5:00pm Eastern Time / 2:00pm Pacific Time. Interested investors and analysts are invited to dial into the conference call by registering here.

    Webcast access also will be available on the Investor section of the company’s website at https://www.cerence.com/investors/events-and-resources.

    A replay of the webcast can be accessed by visiting the company’s website 90 minutes following the conference call at https://www.cerence.com/investors/events-and-resources.

    Forward Looking Statements
    Statements in this press release regarding: Cerence’s future performance, results and financial condition; expected growth and profitability; outlook and momentum; transformation plans and cost efficiency initiatives; strategy; opportunities; business, industry and market trends; strategy regarding fixed contracts and its impact on financial results; backlog; revenue visibility; revenue timing and mix; demand for Cerence products; innovation and new product offerings, including AI technology; expected benefits of technology partnerships; and management’s future expectations, anticipations, intentions, estimates, assumptions, beliefs, goals, objectives, targets, plans, outlook or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “goal,” “objective,” “anticipates,” “projects,” “forecasts,” “expects,” “intends,” “continues,” “will,” “may,” or “estimates” or similar expressions) should also be considered to be forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions as of the date of this press release, such statements involve known and unknown risk, uncertainties and other factors, which may cause actual results or performance of the company to be materially different from any future results or performance expressed or implied by such forward-looking statements including but not limited to: the highly competitive and rapidly changing market in which we operate; adverse conditions in the automotive industry or the global economy more generally; volatility in the political, legal and regulatory environment in which we operate, including trade, tariffs and other policies implemented by the new administration in the United States or actions taken by other countries in response; automotive production curtailment or delays; changes in customer forecasts; the impacts of the COVID-19 pandemic on our and our customers’ businesses; the ongoing conflicts in Ukraine and the Middle East; our inability to control and successfully manage our expenses and cash position; our inability to deliver improved financial results from process optimization efforts and cost reduction actions; escalating pricing pressures from our customers; the impact on our business of the transition to a lower level of fixed contracts, including the failure to achieve such a transition; our failure to win, renew or implement service contracts; the cancellation or postponement of existing contracts; the loss of business from any of our largest customers; effects of customer defaults; a decrease in the level of professional service projects; our inability to successfully introduce new products, applications and services; our strategies to increase cloud offerings and deploy generative AI and large language models (LLMs); the inability to expand into adjacent markets; the inability to recruit and retain qualified personnel; disruptions arising from transitions in management personnel; cybersecurity and data privacy incidents; failure to protect our intellectual property; adverse developments related to our intellectual property enforcement litigation, the outcome of such litigation, or remedies that could be awarded in connection with such litigation; defects or interruptions in service with respect to our products; fluctuating currency rates and interest rates; inflation; financial and credit market volatility; restrictions on our current and future operations under the terms of our debt, the use of cash to service or repay our debt; and our inability to generate sufficient cash from our operations; and the other factors discussed in our most recent Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this document.

    Discussion of Non-GAAP Financial Measures
    We believe that providing the non-GAAP information, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors to not only better understand our financial performance, but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. The non-GAAP information should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP.

    We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. While our management uses these non-GAAP financial measures as a tool to enhance their understanding of certain aspects of our financial performance, our management does not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial statements.

    Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial statements, allows for greater transparency in the review of our financial and operational performance. In assessing the overall health of the business during the three months ended March 31, 2025 and 2024, our management has either included or excluded the following items in general categories, each of which is described below.

    Adjusted EBITDA.
    Adjusted EBITDA is defined as net income attributable to Cerence Inc. before net income (loss) attributable to income tax (benefit) expense, other income (expense) items, net, depreciation and amortization expense, and excluding amortization of acquired intangible assets, stock-based compensation, and restructuring and other costs, net and impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets, if any. From time to time we may exclude from Adjusted EBITDA the impact of events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance. Other income (expense) items, net include interest expense, interest income, and other income (expense), net (as stated in our Condensed Consolidated Statement of Operations). Our management and Board of Directors use this financial measure to evaluate our operating performance. It is also a significant performance measure in our annual incentive compensation programs. 

    Restructuring and other costs, net.
    Restructuring and other costs, net include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business such as employee severance costs, consulting costs relating to our transformation initiatives, and costs for consolidating duplicate facilities.

    Amortization of acquired intangible assets.
    We exclude the amortization of acquired intangible assets from non-GAAP expense and income measures. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Providing a supplemental measure which excludes these charges allows management and investors to evaluate results “as-if” the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which our acquired intellectual property is treated in a comparable manner to our internally developed intellectual property. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Future acquisitions may result in the amortization of additional intangible assets.

    Stock-based compensation.
    Because of varying valuation methodologies, subjective assumptions and the variety of award types, we exclude stock-based compensation from our operating results. We evaluate performance both with and without these measures because compensation expense related to stock-based compensation is typically non-cash and awards granted are influenced by the Company’s stock price and other factors such as volatility that are beyond our control. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. As such, we do not include such charges in operating plans. Stock-based compensation will continue in future periods.

    Other expenses.
    We exclude certain other expenses that result from unplanned events outside the ordinary course of continuing operations, in order to measure operating performance and current and future liquidity both with and without these expenses. By providing this information, we believe management and the users of the financial statements are better able to understand the financial results of what we consider to be our organic, continuing operations. Included in these expenses are items such as other charges (credits), net, (gains) losses from extinguishment of debt, and changes in indemnification assets corresponding with the release of pre-spin liabilities for uncertain tax positions.

    Key Performance Indicators
    We believe that providing key performance indicators (“KPIs”) allows investors to gain insight into the way management views the performance of the business. We further believe that providing KPIs allows investors to better understand information used by management to evaluate and measure such performance. KPIs should not be considered superior to, or a substitute for, operating results prepared in accordance with GAAP. In assessing the performance of the business during the three months ended March 31, 2025, our management has reviewed the following KPIs, each of which is described below:

    • Percent of worldwide auto production with Cerence Technology (TTM): The number of Cerence enabled cars shipped as compared to IHS Markit car production data.
    • Change in number of Cerence connected cars shipped: The year-over-year change in the number of cars shipped with Cerence connected solutions. Amounts calculated on a TTM basis.
    • Change in Adjusted total billings YoY (TTM): The year over year change in total billings excluding Professional Services, prepay billings and adjusted for prepay consumption. TTM over prior year TTM.

    See the tables at the end of this press release for non-GAAP reconciliations to the most directly comparable GAAP measures.

    To learn more about Cerence AI, visit www.cerence.ai, and follow the company on LinkedIn.

    About Cerence Inc.
    Cerence Inc. (NASDAQ: CRNC) is a global industry leader in creating intuitive, seamless, AI-powered experiences across automotive and transportation. Leveraging decades of innovation and expertise in voice, generative AI, and large language models, Cerence powers integrated experiences that create safer, more connected, and more enjoyable journeys for drivers and passengers alike. With more than 500 million cars shipped with Cerence technology, the company partners with leading automakers, transportation OEMs, and technology companies to advance the next generation of user experiences. Cerence is headquartered in Burlington, Massachusetts, with operations globally and a worldwide team dedicated to pushing the boundaries of AI innovation. For more information, visit www.cerence.ai.

    CERENCE INC.
    Condensed Consolidated Statements of Operations
    (in thousands, except per share data)
    (unaudited)

      Three Months Ended     Six Months Ended  
      March 31,     March 31,  
      2025     2024     2025     2024  
    Revenues:                      
    License $ 51,460     $ 35,527     $ 74,185     $ 56,350  
    Connected services   12,648       13,597       26,355       110,417  
    Professional services   13,902       18,701       28,366       39,393  
    Total revenues   78,010       67,825       128,906       206,160  
    Cost of revenues:                      
    License   2,432       1,404       4,214       3,008  
    Connected services   4,979       5,359       11,290       12,662  
    Professional services   10,418       14,119       20,149       31,444  
    Amortization of intangible assets   —       —       —       103  
    Total cost of revenues   17,829       20,882       35,653       47,217  
    Gross profit   60,181       46,943       93,253       158,943  
    Operating expenses:                      
    Research and development   23,332       31,846       44,201       65,152  
    Sales and marketing   4,930       5,619       9,696       11,690  
    General and administrative   11,199       16,659       23,953       29,452  
    Amortization of intangible assets   536       555       1,090       1,100  
    Restructuring and other costs, net   2,832       4,551       13,894       5,256  
    Goodwill impairment   —       252,096       —       252,096  
    Total operating expenses   42,829       311,326       92,834       364,746  
    Income (loss) from operations   17,352       (264,383 )     419       (205,803 )
    Interest income   918       1,190       2,355       2,622  
    Interest expense   (2,716 )     (3,111 )     (6,109 )     (6,347 )
    Other income (expense), net   499       (25 )     771       1,397  
    Income (loss) before income taxes   16,053       (266,329 )     (2,564 )     (208,131 )
    (Benefit from) provision for income taxes   (5,603 )     11,647       68       45,988  
    Net income (loss) $ 21,656     $ (277,976 )   $ (2,632 )   $ (254,119 )
    Net income (loss) per share:                      
    Basic $ 0.50     $ (6.66 )   $ (0.06 )   $ (6.13 )
    Diluted $ 0.46     $ (6.66 )   $ (0.06 )   $ (6.13 )
    Weighted-average common share outstanding:                      
    Basic   43,223       41,724       43,059       41,452  
    Diluted   51,530       41,724       43,059       41,452  
                                   

    CERENCE INC.
    Condensed Consolidated Balance Sheets
    (in thousands, except per share amounts)

      March 31,     September 30,  
      2025     2024  
      (Unaudited)        
    ASSETS          
    Current assets:          
    Cash and cash equivalents $ 117,368       121,485  
    Marketable securities   5,413       5,502  
    Accounts receivable, net of allowances of $54 and $1,613   65,018       62,755  
    Deferred costs   4,737       5,286  
    Prepaid expenses and other current assets   39,633       70,481  
    Total current assets   232,169       265,509  
    Long-term marketable securities   –       3,453  
    Property and equipment, net   29,412       30,139  
    Deferred costs   15,960       18,051  
    Operating lease right of use assets   17,989       12,879  
    Goodwill   293,357       296,858  
    Intangible assets, net   551       1,706  
    Deferred tax assets   55,248       51,398  
    Other assets   20,860       22,365  
    Total assets $ 665,546     $ 702,358  
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Current liabilities:          
    Accounts payable $ 6,634     $ 3,959  
    Deferred revenue   49,740       52,822  
    Short-term operating lease liabilities   3,958       4,528  
    Short-term debt   60,056       87,094  
    Accrued expenses and other current liabilities   37,506       68,405  
    Total current liabilities   157,894       216,808  
    Long-term debt   197,593       194,812  
    Deferred revenue, net of current portion   119,954       114,354  
    Long-term operating lease liabilities   14,557       8,803  
    Other liabilities   26,279       26,484  
    Total liabilities   516,277       561,261  
    Stockholders’ Equity:          
    Common stock, $0.01 par value, 560,000 shares authorized; 43,254 and 41,924 shares issued and outstanding, respectively   433       419  
    Accumulated other comprehensive loss   (28,814 )     (25,912 )
    Additional paid-in capital   1,102,022       1,088,330  
    Accumulated deficit   (924,372 )     (921,740 )
    Total stockholders’ equity   149,269       141,097  
    Total liabilities and stockholders’ equity $ 665,546     $ 702,358  
                   

    CERENCE INC.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)

      Six Months Ended  
      March 31,  
      2025     2024  
    Cash flows from operating activities:          
    Net loss $ (2,632 )   $ (254,119 )
    Adjustments to reconcile net loss to net cash provided by (used in) operations:          
    Depreciation and amortization   5,793       5,384  
    Provision for credit loss reserve   208       6,065  
    Stock-based compensation   13,702       13,125  
    Non-cash interest expense   3,348       2,939  
    Loss on debt extinguishment   (327 )     –  
    Deferred tax (benefit) provision   (4,271 )     40,949  
    Goodwill impairment   –       252,096  
    Unrealized foreign currency transaction losses (gains)   345       (262 )
    Other, net   (33 )     474  
    Changes in operating assets and liabilities:          
    Accounts receivable   (8,029 )     (75 )
    Prepaid expenses and other assets   25,250       5,854  
    Deferred costs   2,041       3,423  
    Accounts payable   2,492       (292 )
    Accrued expenses and other liabilities   (23,532 )     (1,673 )
    Deferred revenue   10,365       (75,659 )
    Net cash provided by (used in) operating activities   24,720       (1,771 )
    Cash flows from investing activities:          
    Capital expenditures   (3,703 )     (2,776 )
    Purchases of marketable securities   –       –  
    Sale and maturities of marketable securities   3,493       3,912  
    Other investing activities   (716 )     (891 )
    Net cash (used in) provided by investing activities   (926 )     245  
    Cash flows from financing activities:          
    Proceeds from revolving credit facility   –       –  
    Proceeds from long-term debt, net of discount   –       –  
    Payments for long-term debt issuance costs   –       –  
    Principal payments of short-term debt   (26,964 )     –  
    Common stock repurchases for tax withholdings for net settlement of equity awards   (2,171 )     (9,744 )
    Principal payment of lease liabilities arising from a finance lease   (229 )     (202 )
    Proceeds from the issuance of common stock   2,175       10,461  
    Net cash (used in) provided by financing activities   (27,189 )     515  
    Effects of exchange rate changes on cash and cash equivalents   (722 )     (967 )
    Net change in cash and cash equivalents   (4,117 )     (1,978 )
    Cash and cash equivalents at beginning of period   121,485       101,154  
    Cash and cash equivalents at end of period $ 117,368     $ 99,176  
                   

    CERENCE INC.
    Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures
    (unaudited – in thousands)

      Three Months Ended     Six Months Ended  
      March 31,     March 31,  
      2025     2024     2025     2024  
    GAAP revenue $ 78,010     $ 67,825     $ 128,906     $ 206,160  
                           
    GAAP gross profit $ 60,181     $ 46,943     $ 93,253     $ 158,943  
    GAAP gross margin   77.1 %     69.2 %     72.3 %     77.1 %
                           
    GAAP total operating expenses $ 42,829     $ 311,326     $ 92,834     $ 364,746  
    Stock-based compensation   5,374       4,079       9,692       11,818  
    Amortization of intangible assets   536       555       1,090       1,203  
    Restructuring and other costs, net   2,832       4,551       13,894       5,256  
    Goodwill impairment   –       252,096       –       252,096  
    Non-GAAP total operating expenses $ 34,087     $ 50,045     $ 68,158     $ 94,373  
                           
    GAAP net income (loss) $ 21,656     $ (277,976 )   $ (2,632 )   $ (254,119 )
    Stock-based compensation*   5,931       4,745       10,739       13,125  
    Amortization of intangible assets   536       555       1,090       1,203  
    Restructuring and other costs, net*   2,832       4,551       13,894       5,256  
    Goodwill impairment   –       252,096       –       252,096  
    Depreciation   2,812       2,143       4,703       4,181  
    Total other expense, net   1,299       1,946       2,983       2,328  
    (Benefit from) provision for income taxes   (5,603 )     11,647       68       45,988  
    Adjusted EBITDA $ 29,463     $ (293 )   $ 30,845     $ 70,058  
                           
    GAAP net cash provided by (used in) operating activities $ 15,466     $ 1,044     $ 24,720     $ (1,771 )
    Capital expenditures   (2,343 )     (1,845 )     (3,703 )     (2,776 )
    Free cash flow $ 13,123     $ (801 )   $ 21,017     $ (4,547 )
    * – $3.0 million in stock-based compensation is included in Restructuring and other costs, net for the six months ended March 31, 2025.
       

    The MIL Network –

  • MIL-OSI: H&R Block Reports Fiscal 2025 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    — Delivered Revenue Growth of 4%, Net Income Growth of 5%, and EPS Growth of 9% —

    — Improved Volume and Market Share Trends in Assisted Channel Through April 30 —

    — Reaffirms Full Year 2025 Outlook —

    KANSAS CITY, Mo., May 07, 2025 (GLOBE NEWSWIRE) — H&R Block, Inc. (NYSE: HRB) (the “Company”) today released financial results1 for its fiscal 2025 third quarter ended March 31, 2025.

    “Today we are reaffirming our FY25 outlook,” said Jeff Jones, president and chief executive officer. “Our transformation continues to gather momentum and deliver results. We meaningfully enhanced the new client experience this season, driving higher client satisfaction scores and improving volume and market share trends in the Assisted channel.”

    Fiscal 2025 Third Quarter Results and Key Financial Metrics

    “In the Assisted channel, we struck a healthy balance of price, volume, and mix in the quarter which is a testament to our redesigned client experience and our unwavering commitment to delivering value for our clients,” said Tiffany Mason, chief financial officer. “I remain confident in our ability to continue driving significant value as we have a resilient business with strong financial fundamentals, consistent cash flow generation, and a shareholder-friendly capital return practice.”

    Total revenue of $2.3 billion increased by $92.3 million, or 4.2%, versus prior year. The increase was the result of an increase in overall net average charge (NAC), and higher company-owned return volumes in the U.S, partially offset by lower international revenue, and lower interest and fee income on Emerald Advance.

    Total operating expenses of $1.3 billion increased by $42.2 million or 3.4%, primarily due to higher tax professional wages and benefits as a result of the increase in company-owned return volume.

    Net income from continuing operations increased $31.3 million, or 4.5% to $722.9 million.

    Earnings per share from continuing operations2 increased 9.2% to $5.32, and adjusted earnings per share from continuing operations2 increased 8.9% to $5.38, due to higher net income and fewer shares outstanding from share repurchases.

    Capital Allocation

    The Company reported the following related to its capital structure:

    • As previously announced, a quarterly cash dividend of $0.375 per share will be paid on July 3, 2025 to shareholders of record as of June 4, 2025. H&R Block has paid quarterly dividends consecutively since the Company became public in 1962.
    • In the first and second quarters of fiscal 2025, the company repurchased 6.5 million shares at an aggregate price of $400 million, or $61.10 per share.
    • The Company has approximately $1.1 billion remaining on its $1.5 billion share repurchase program.

    Since 2016, the Company has returned more than $4.5 billion to shareholders in the form of dividends and share repurchases, buying back over 43% of its shares outstanding3.

    Fiscal Year 2025 Outlook Reaffirmed

    The Company continues to expect:

    • Revenue to be in the range of $3.69 to $3.75 billion.
    • EBITDA4 to be in the range of $975 million to $1.02 billion.
    • Effective tax rate to be approximately 13%, resulting in a one-time benefit to EPS of approximately 50 cents.
    • Adjusted Diluted Earnings Per Share4 to be in the range of $5.15 to $5.35.

    Conference Call

    The Company will host a conference call for analysts and investors to discuss third quarter 2025 results at 4:30 p.m. ET on Wednesday, May 7, 2025. To join live, participants must register at https://register-conf.media-server.com/register/BI6c8ca5ffb9a24eecba80c3c3a79d2043. Once registered, the participant will receive a dial-in number and unique PIN to access the call. Please join approximately 5 minutes prior to the scheduled start time.

    The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and general public. The webcast can be accessed directly at https://edge.media-server.com/mmc/p/wfx9997r and will be available for replay 2 hours after the call is concluded and continuing for 90 days. 

    About H&R Block

    H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.

    About Non-GAAP Financial Information

    This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled “Non-GAAP Financial Information.”

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “commits,” “seeks,” “estimates,” “projects,” “forecasts,” “targets,” “would,” “will,” “should,” “goal,” “could” or “may” or other similar expressions. Forward-looking statements provide management’s current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company’s control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled “Risk Factors” and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

    1All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
    2All per share amounts are based on fully diluted shares at the end of the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, and free cash flow which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the Company. See “About Non-GAAP Financial Information” below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).
    3Shares outstanding calculated as of April 30, 2016.
    4Adjusted Diluted EPS and EBITDA from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.

    For Further Information
         
    Investor Relations:   Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com
    Media Relations:   Media Desk, mediadesk@hrblock.com
         
    FINANCIAL RESULTS   (unaudited, in 000s – except per share amounts)
        Three months ended March 31,   Nine months ended March 31,
          2025       2024       2025       2024  
    REVENUES:                
    U.S. tax preparation and related services:                
    Assisted tax preparation   $         1,635,877     $ 1,534,825     $         1,727,220     $ 1,622,430  
    Royalties                  133,961       141,915                    143,312       153,070  
    DIY tax preparation                  214,666       198,570                    231,646       215,529  
    Refund Transfers                  113,732       118,937                    115,229       120,892  
    Peace of Mind® Extended Service Plan                    15,625       16,813                      54,867       59,100  
    Tax Identity Shield®                      7,025       7,536                      14,947       16,810  
    Other                    14,582       12,065                      40,215       32,637  
    Total U.S. tax preparation and related services               2,135,468       2,030,661                 2,327,436       2,220,468  
    Financial services:                
    Emerald Card® and SpruceSM                    40,195       41,160                      59,169       61,493  
    Interest and fee income on Emerald Advance®                    14,286       21,169                      26,594       36,702  
    Total financial services                    54,481       62,329                      85,763       98,195  
    International                    60,438       68,264                    157,104       158,398  
    Wave                    26,717       23,580                      79,681       70,656  
    Total revenues   $         2,277,104     $ 2,184,834     $         2,649,984     $ 2,547,717  
    Compensation and benefits:                
    Field wages                  532,916       510,299                    682,575       650,529  
    Other wages                    74,621       75,356                    230,687       222,125  
    Benefits and other compensation                  111,575       99,653                    188,731       170,964  
                       719,112       685,308                 1,101,993       1,043,618  
    Occupancy                  119,709       119,364                    326,026       319,843  
    Marketing and advertising                  196,667       194,349                    221,502       211,135  
    Depreciation and amortization                    29,221       30,672                      87,247       91,004  
    Bad debt                    40,479       41,008                      62,625       67,560  
    Other                  193,603       185,929                    393,900       360,111  
    Total operating expenses               1,298,791       1,256,630                 2,193,293       2,093,271  
    Other income (expense), net                      4,554       5,224                      19,215       20,982  
    Interest expense on borrowings                   (24,686 )     (26,070 )                   (62,285 )     (63,304 )
    Pretax income                  958,181       907,358                    413,621       412,124  
    Income taxes                  235,253       215,772                    104,580       72,527  
    Net income from continuing operations                  722,928       691,586                    309,041       339,597  
    Net loss from discontinued operations                        (598 )     (849 )                     (2,707 )     (2,097 )
    Net income   $            722,330     $ 690,737     $            306,334     $ 337,500  
    DILUTED EARNINGS PER SHARE                
    Continuing operations   $                  5.32     $ 4.87     $                  2.23     $ 2.34  
    Discontinued operations                       (0.01 )     (0.01 )                       (0.02 )     (0.02 )
    Consolidated   $                  5.31     $ 4.86     $                  2.21     $ 2.32  
    WEIGHTED AVERAGE DILUTED SHARES                  135,329       141,540                    137,944       144,594  
    Adjusted diluted EPS (1)   $                  5.38     $ 4.94     $                  2.41     $ 2.54  
    EBITDA (1)   $         1,012,088     $ 964,100     $            563,153     $ 566,432  
                     
    (1) All non-GAAP measures are results from continuing operations. See “Non-GAAP Financial Information” for a reconciliation of non-GAAP measures.
     
    CONSOLIDATED BALANCE SHEETS   (unaudited, in 000s – except per share data)
    As of   March 31, 2025   June 30, 2024
             
    ASSETS        
    Cash and cash equivalents   $                   772,946     $ 1,053,326  
    Cash and cash equivalents – restricted                           16,744       21,867  
    Receivables, net                         352,398       69,075  
    Prepaid expenses and other current assets                         104,450       95,208  
    Total current assets                      1,246,538       1,239,476  
    Property and equipment, net                         146,456       131,319  
    Operating lease right of use assets                         417,197       461,986  
    Intangible assets, net                         270,007       264,102  
    Goodwill                         785,936       785,226  
    Deferred tax assets and income taxes receivable                         308,989       271,658  
    Other noncurrent assets                           69,888       65,043  
    Total assets   $                3,245,011     $ 3,218,810  
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    LIABILITIES:        
    Accounts payable and accrued expenses   $                   243,754     $ 155,830  
    Accrued salaries, wages and payroll taxes                         269,849       105,548  
    Accrued income taxes and reserves for uncertain tax positions                         346,733       318,830  
    Current portion of long-term debt                         349,787       —  
    Operating lease liabilities                         173,902       206,070  
    Deferred revenue and other current liabilities                         205,778       191,050  
    Total current liabilities                      1,589,803       977,328  
    Long-term debt and line of credit borrowings                      1,142,890       1,491,095  
    Deferred tax liabilities and reserves for uncertain tax positions                         337,634       291,063  
    Operating lease liabilities                         252,630       265,373  
    Deferred revenue and other noncurrent liabilities                         114,892       103,357  
    Total liabilities                      3,437,849       3,128,216  
    COMMITMENTS AND CONTINGENCIES        
    STOCKHOLDERS’ EQUITY:        
    Common stock, no par, stated value $.01 per share                             1,644       1,709  
    Additional paid-in capital                         758,821       762,583  
    Accumulated other comprehensive loss                         (71,317 )     (48,845 )
    Retained earnings (deficit)                       (236,909 )     12,654  
    Less treasury shares, at cost                       (645,077 )     (637,507 )
    Total stockholders’ equity (deficiency)                       (192,838 )     90,594  
    Total liabilities and stockholders’ equity   $                3,245,011     $ 3,218,810  
             
             
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS   (unaudited, in 000s)
    Nine months ended March 31,     2025       2024  
             
    CASH FLOWS FROM OPERATING ACTIVITIES:        
    Net income   $                   306,334     $ 337,500  
    Adjustments to reconcile net income to net cash provided by operating activities:        
    Depreciation and amortization                           87,247       91,004  
    Provision for credit losses                           56,042       61,359  
    Deferred taxes                         (12,503 )     (58,223 )
    Stock-based compensation                           25,420       25,310  
    Changes in assets and liabilities, net of acquisitions:        
    Receivables                       (335,605 )     (348,106 )
    Prepaid expenses, other current and noncurrent assets                           (7,504 )     (18,037 )
    Accounts payable, accrued expenses, salaries, wages and payroll taxes                         240,246       223,045  
    Deferred revenue, other current and noncurrent liabilities                           20,684       12,483  
    Income tax receivables, accrued income taxes and income tax reserves                           50,049       93,961  
    Other, net                           (1,088 )     (32 )
    Net cash provided by operating activities                         429,322       420,264  
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Capital expenditures                         (71,784 )     (53,831 )
    Payments made for business acquisitions, net of cash acquired                         (35,323 )     (43,163 )
    Franchise loans funded                         (21,455 )     (18,815 )
    Payments from franchisees                           11,478       12,884  
    Other, net                             6,194       3,282  
    Net cash used in investing activities                       (110,890 )     (99,643 )
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Repayments of line of credit borrowings                    (1,950,000 )     (1,025,000 )
    Proceeds from line of credit borrowings                      1,950,000       1,025,000  
    Dividends paid                       (147,136 )     (135,127 )
    Repurchase of common stock, including shares surrendered                       (436,516 )     (379,018 )
    Other, net                         (11,854 )     (6,358 )
    Net cash used in financing activities                       (595,506 )     (520,503 )
    Effects of exchange rate changes on cash                           (8,429 )     (2,739 )
    Net decrease in cash and cash equivalents, including restricted balances                       (285,503 )     (202,621 )
    Cash, cash equivalents and restricted cash, beginning of period                      1,075,193       1,015,316  
    Cash, cash equivalents and restricted cash, end of period   $                   789,690     $ 812,695  
    SUPPLEMENTARY CASH FLOW DATA:        
    Income taxes paid, net (includes payments for purchased investment tax credits)   $                     65,505     $ 35,888  
    Interest paid on borrowings                           63,251       66,464  
    Accrued additions to property and equipment                             2,448       1,477  
    New operating right of use assets and related lease liabilities                         135,372       139,872  
    Accrued dividends payable to common shareholders                           50,194       44,648  
             
             
    (in 000s)
        Three months ended March 31,   Nine months ended March 31,
    NON-GAAP FINANCIAL MEASURE – EBITDA     2025       2024       2025       2024  
                     
    Net income – as reported   $            722,330     $ 690,737     $            306,334     $ 337,500  
    Discontinued operations, net                          598       849                        2,707       2,097  
    Net income from continuing operations – as reported                  722,928       691,586                    309,041       339,597  
    Add back:                
    Income taxes                  235,253       215,772                    104,580       72,527  
    Interest expense                    24,686       26,070                      62,285       63,304  
    Depreciation and amortization                    29,221       30,672                      87,247       91,004  
                       289,160       272,514                    254,112       226,835  
    EBITDA from continuing operations   $         1,012,088     $ 964,100     $            563,153     $ 566,432  
                     
                     
    (in 000s, except per share amounts)
        Three months ended March 31,   Nine months ended March 31,
    NON-GAAP FINANCIAL MEASURE – EBITDA     2025       2024       2025       2024  
                     
    Net income from continuing operations – as reported   $            722,928     $ 691,586     $            309,041     $ 339,597  
    Adjustments:                
    Amortization of intangibles related to acquisitions (pretax)                    11,278       12,869                      33,316       37,693  
    Tax effect of adjustments (1)                     (2,927 )     (2,793 )                     (8,111 )     (8,815 )
    Adjusted net income from continuing operations   $            731,279     $ 701,622     $            334,246     $ 368,475  
    Diluted earnings per share from continuing operations – as reported   $                  5.32     $ 4.87     $                  2.23     $ 2.34  
    Adjustments, net of tax                        0.06       0.07                          0.18       0.20  
    Adjusted diluted earnings per share from continuing operations   $                  5.38     $ 4.94     $                  2.41     $ 2.54  
                     
    (1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.
     

    Non-GAAP Financial Information

    Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.

    We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

    We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted diluted earnings per share from continuing operations, and free cash flow. We also use EBITDA from continuing operations and pretax income from continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.

    The MIL Network –

  • MIL-OSI: Open Lending Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    AUSTIN, Texas, May 07, 2025 (GLOBE NEWSWIRE) — Open Lending Corporation (Nasdaq: LPRO) (the “Company” or “Open Lending”), an industry trailblazer in lending enablement and risk analytics solutions for financial institutions, today reported financial results for its first quarter ended March 31, 2025.

    “I believe in Open Lending’s business model, our value proposition to our customers, and the team’s ability to execute on our plan going forward,” said Jessica Buss, Chief Executive Officer of Open Lending. “We are honored to continue serving over 400 lender customers and their communities and have taken actions in an effort to further enhance our customers’ experience. We believe that we have seen promising early results as we implement new ways to demonstrate how we enhance lender profitability.

    “We have introduced new loan measures and refined pricing in an effort to help reduce volatility in the expected profit share revenue of our future certified loans as compared to our historic vintages. Additionally, our board of directors has authorized a $25 million share repurchase program. We have a clear plan, a dedicated team, a consistent base of customers and partners, and a strong balance sheet, and we believe that we are well-positioned to generate value for all Open Lending stakeholders.”

    Three Months Ended March 31, 2025 Highlights

    • The Company facilitated 27,638 certified loans during the first quarter of 2025, compared to 28,189 certified loans in the first quarter of 2024.
    • Total revenue was $24.4 million during the first quarter of 2025, compared to $30.7 million in the first quarter of 2024.
      • The decrease in total revenue during the period includes a $7.4 million decrease in estimated profit share revenue associated with new originations, primarily driven by lower unit economics per certified loan.
      • In addition, the first quarter of 2025 was impacted by a $0.9 million reduction in estimated profit share revenues related to business in historic vintages as compared to a $1.1 million reduction in the first quarter of 2024.
    • Gross profit was $18.3 million during the first quarter of 2025, compared to $25.0 million in the first quarter of 2024.
    • Net income was $0.6 million during the first quarter of 2025, compared to $5.1 million in the first quarter of 2024.
    • Adjusted EBITDA was $5.7 million during the first quarter of 2025, compared to $12.5 million in the first quarter of 2024.

    Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure is provided in the financial table included at the end of this press release. An explanation of this measure and how it is calculated is also included under the heading “Non-GAAP Financial Measures.”

    Second Quarter 2025 Outlook
    For the second quarter of 2025, the Company currently expects total certified loans to be between 25,500 and 27,500.

    The guidance provided includes forward-looking statements within the meaning of U.S. securities laws. See “Forward-Looking Statements” below.

    Open Lending will host a conference call to discuss the first quarter 2025 financial results on May 7, 2025 at 5:00 pm ET. The conference call will be webcast live from the Company’s investor relations website at https://investors.openlending.com/ under the “Events” section. The conference call can also be accessed live over the phone by dialing (800) 445-7795, or for international callers (785) 424-1699. An archive of the webcast will be available at the same location on the website shortly after the call has concluded.

    Share Repurchase Program
    On May 1, 2025, the Board of Directors authorized share repurchases under a share repurchase program (the “Share Repurchase Program”) allowing the Company to repurchase up to $25.0 million of the Company’s outstanding common stock until May 1, 2026. Repurchases may be made at management’s discretion from time to time in the open market. The Share Repurchase Program may be suspended, amended, or discontinued at any time.

    About Open Lending
    Open Lending (Nasdaq: LPRO) provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders throughout the United States. For over 20 years, we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit www.openlending.com.

    Forward-Looking Statements
    This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements related to the Company’s new loan measures, lender profitability, volatility, the Share Repurchase Program, market trends, consumer behavior and demand for automotive loans, as well as future financial performance under the heading “Second Quarter 2025 Outlook” above. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the Company’s control. These forward-looking statements are subject to a number of risks and uncertainties, including general economic, market, political and business conditions; applicable taxes, inflation, tariffs, supply chain disruptions including global hostilities and responses thereto, interest rates and the regulatory environment; the outcome of judicial proceedings to which Open Lending may become a party; and other risks discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. Subsequent events and developments may cause the Company’s assessments to change, but, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

    Non-GAAP Financial Measures
    The non-GAAP financial measures included in this press release are financial information that has not been prepared in accordance with GAAP. The Company uses Adjusted EBITDA and Adjusted EBITDA margin internally in analyzing our financial results and believes these measures are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. The Company believes that the use of non-GAAP financial measures provides an additional tool for investors to use in evaluating 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 to investors.

    The Company believes these measures provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. In addition, these measures provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain non-cash items and certain non-recurring variable charges. Adjusted EBITDA is defined as GAAP net income (loss) excluding interest expense, income tax expense, depreciation and amortization expense, and share-based compensation expense. Adjusted EBITDA margin is defined as Adjusted EBITDA expressed as a percentage of total revenue.

    Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measure provided in the financial statement tables included below in this press release.

    Investor Relations Contact:
    InvestorRelations@openlending.com

     
    OPEN LENDING CORPORATION
    Consolidated Balance Sheets
    (Unaudited)
    (In thousands, except share data)
     
        March 31, 2025   December 31, 2024
    Assets        
    Current assets        
    Cash and cash equivalents   $ 236,226     $ 243,164  
    Restricted cash     10,621       10,760  
    Accounts receivable, net     5,550       5,055  
    Current contract assets, net     18,643       9,973  
    Income tax receivable     3,568       3,558  
    Other current assets     3,179       3,215  
    Total current assets     277,787       275,725  
    Property and equipment, net     650       729  
    Capitalized software development costs, net     5,398       5,386  
    Operating lease right-of-use assets, net     3,680       3,878  
    Contract assets     11,202       5,094  
    Other assets     5,506       5,556  
    Total assets   $ 304,223     $ 296,368  
    Liabilities and stockholders’ equity        
    Current liabilities        
    Accounts payable   $ 352     $ 953  
    Accrued expenses     7,598       5,166  
    Current portion of debt     7,500       7,500  
    Third-party claims administration liability     10,660       10,797  
    Current portion of excess profit share receipts     17,445       19,346  
    Other current liabilities     1,143       3,490  
    Total current liabilities     44,698       47,252  
    Long-term debt, net of deferred financing costs     130,429       132,217  
    Operating lease liabilities     3,061       3,273  
    Excess profit share receipts     39,111       28,210  
    Other liabilities     7,095       7,329  
    Total liabilities     224,394       218,281  
    Stockholders’ equity        
    Preferred stock, $0.01 par value; 10,000,000 shares authorized and none issued and outstanding     —       —  
    Common stock, $0.01 par value; 550,000,000 shares authorized, 128,198,185 shares issued and 119,782,899 shares outstanding as of March 31, 2025 and 128,198,185 shares issued and 119,350,001 shares outstanding as of December 31, 2024     1,282       1,282  
    Additional paid-in capital     497,884       502,664  
    Accumulated deficit     (328,142 )     (328,759 )
    Treasury stock at cost, 8,415,286 shares at March 31, 2025 and 8,848,184 shares at December 31, 2024     (91,195 )     (97,100 )
    Total stockholders’ equity     79,829       78,087  
    Total liabilities and stockholders’ equity   $ 304,223     $ 296,368  
    OPEN LENDING CORPORATION
    Consolidated Statements of Operations
    (Unaudited)
    (In thousands, except per share data)
     
        Three Months Ended March 31,
          2025       2024  
    Revenue        
    Program fees   $ 15,210     $ 14,309  
    Profit share     6,730       13,882  
    Claims administration and other service fees     2,453       2,554  
    Total revenue     24,393       30,745  
    Cost of services     6,084       5,750  
    Gross profit     18,309       24,995  
    Operating expenses        
    General and administrative     10,898       11,979  
    Selling and marketing     4,382       4,214  
    Research and development     2,267       1,479  
    Total operating expenses     17,547       17,672  
    Operating income     762       7,323  
    Interest expense     (2,589 )     (2,770 )
    Interest income     2,500       2,971  
    Income before income taxes     673       7,524  
    Income tax expense     56       2,437  
    Net income   $ 617     $ 5,087  
    Net income per common share        
    Basic   $ 0.01     $ 0.04  
    Diluted   $ 0.01     $ 0.04  
    Weighted average common shares outstanding        
    Basic     119,451       118,926  
    Diluted     119,629       119,416  
    OPEN LENDING CORPORATION
    Consolidated Statements of Cash Flows
    (Unaudited)
    (In thousands)
     
        Three Months Ended March 31,
          2025       2024  
    Cash flows from operating activities        
    Net income   $ 617     $ 5,087  
    Adjustments to reconcile net income to net cash provided by (used in) operating activities:        
    Share-based compensation     1,846       1,854  
    Depreciation and amortization     544       372  
    Amortization of debt issuance costs     103       107  
    Non-cash operating lease cost     198       162  
    Deferred income taxes     —       2,154  
    Other     144       41  
    Changes in operating assets & liabilities:        
    Accounts receivable, net     (495 )     (1,135 )
    Contract assets, net     (14,778 )     (2,614 )
    Excess profit share receipts     9,000       —  
    Other current and non-current assets     70       188  
    Accounts payable     (600 )     66  
    Accrued expenses     2,454       (189 )
    Income tax receivable, net     39       3,358  
    Operating lease liabilities     (185 )     (152 )
    Third-party claims administration liability     (137 )     1,662  
    Other current and non-current liabilities     (2,658 )     45  
    Net cash provided by (used in) operating activities     (3,838 )     11,006  
    Cash flows from investing activities        
    Purchase of property and equipment     (45 )     —  
    Capitalized software development costs     (561 )     (642 )
    Net cash used in investing activities     (606 )     (642 )
    Cash flows from financing activities        
    Payments on term loans     (1,875 )     (938 )
    Shares withheld for taxes related to restricted stock units     (758 )     (1,021 )
    Net cash used in financing activities     (2,633 )     (1,959 )
    Net change in cash and cash equivalents and restricted cash     (7,077 )     8,405  
    Cash and cash equivalents and restricted cash at the beginning of the period     253,924       246,669  
    Cash and cash equivalents and restricted cash at the end of the period   $ 246,847     $ 255,074  
    Supplemental disclosure of cash flow information:        
    Interest paid   $ 2,489     $ 3,541  
    Income tax paid (refunded), net     16       (3,075 )
    OPEN LENDING CORPORATION
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (Unaudited)
    (In thousands, except margin data)
     
        Three Months Ended March 31,
          2025       2024  
    Net income   $ 617     $ 5,087  
    Non-GAAP adjustments:        
    Interest expense     2,589       2,770  
    Income tax expense     56       2,437  
    Depreciation and amortization expense     544       372  
    Share-based compensation     1,846       1,854  
    Total adjustments     5,035       7,433  
    Adjusted EBITDA   $ 5,652     $ 12,520  
    Total revenue   $ 24,393     $ 30,745  
    Adjusted EBITDA margin     23 %     41 %

    The MIL Network –

  • MIL-OSI: Alto Ingredients, Inc. Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    – Beverage-grade Liquid CO2 Processor Acquisition and Corporate Reorganization Deliver Improved Year-over-Year Gross Margin and Adjusted EBITDA –

    PEKIN, Ill., May 07, 2025 (GLOBE NEWSWIRE) — Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, reported its financial results for the quarter ended March 31, 2025.

    Bryon McGregor, President and Chief Executive Officer of Alto Ingredients said, “During the first quarter of 2025, gross margin and Adjusted EBITDA improved year-over-year, reflecting our operational uptime and carbon optimization initiative driven by our recent acquisition. Owning Alto Carbonic, the carbon dioxide processing plant adjacent to our Columbia facility, lowered combined costs, improved operations coordination and increased productivity across the facilities. The rightsizing of our company to align with our current footprint is on track to save approximately $8 million annually beginning in the second quarter of 2025, and the reorganization is yielding additional efficiencies.

    “Shifting production to ISCC renewable fuel for delivery into European markets, which is experiencing solid demand at a premium to fuel-grade ethanol, demonstrates Pekin’s flexibility to capitalize on trends. As a result, we grew ISCC sales as a percentage of our total renewable fuel volume sold at our Pekin Campus during the first quarter and partially offset the domestic industry softening of premiums on high quality alcohol and essential ingredients. We are monitoring a few positive movements, such as the growing state, and potentially national, year round adoption of E15 as well as opportunities under the Illinois Clean Transportation Standard Act (SB41). Our team is proactively evaluating alternatives for new revenue streams to leverage our flexible and unique facilities, and to drive long-term sustainable shareholder value.”

    Financial Results for the Three Months Ended March 31, 2025 Compared to 2024

    • Net sales were $226.5 million, compared to $240.6 million.
    • Cost of goods sold was $228.3 million, compared to $243.0 million.
    • Gross loss was $1.8 million, compared to a gross loss of $2.4 million. Net realized gains on derivatives were negligible for both quarters.
    • Selling, general and administrative expenses were $7.2 million, compared to $7.9 million.
    • Interest expense was $2.7 million, compared to $1.6 million.
    • Net loss attributable to common stockholders was $12.0 million, or $0.16 per share, compared to $12.0 million, or $0.17 per share.
    • Adjusted EBITDA was negative $4.4 million, including $1.6 million in unrealized gains on derivatives, compared to negative $7.1 million, including $3.2 million in unrealized gains on derivatives.

    Cash and cash equivalents were $26.8 million at March 31, 2025, compared to $35.5 million at December 31, 2024. At March 31, 2025, the company’s borrowing availability was $76.7 million including $11.7 million under the company’s operating line of credit and $65.0 million under its term loan facility, subject to certain conditions.

    First Quarter 2025 Results Conference Call
    Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, May 7, 2025, and will deliver prepared remarks via webcast followed by a question-and-answer session.

    The webcast for the conference call can be accessed from Alto Ingredients’ website at www.altoingredients.com. Alternatively, to receive a number and unique PIN by email, register here. To dial directly up to twenty minutes prior to the scheduled call time, please dial (833) 630-0017 domestically and (412) 317-1806 internationally. The webcast will be archived for replay on the Alto Ingredients website for one year. In addition, a telephonic replay will be available at 8:00 p.m. Eastern Time on Wednesday, May 7, 2025, through 8:00 p.m. Eastern Time on Wednesday, May 14, 2025. To access the replay, please dial (877) 344-7529. International callers should dial 00-1 412-317-0088. The pass code will be 8723820.

    Use of Non-GAAP Measures
    Management believes that certain financial measures not in accordance with generally accepted accounting principles (“GAAP”) are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision for income taxes, asset impairments, unrealized derivative gains and losses, acquisition-related expense and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company’s performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of the company’s results as reported under GAAP.

    About Alto Ingredients, Inc.
    Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.

    Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
    Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ projected outlook and future performance, including the timing and effects of its business rationalization, right-sizing and other cost savings initiatives; expectations around the growing state, and potentially national, adoption of E15 and opportunities under new legislation, including the Illinois Clean Transportation Standard Act; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints, including from tariffs; Alto Ingredients’ ability to timely and fully realize the results of its cost saving initiatives; regulatory developments and Alto Ingredients’ ability to successfully pursue and secure opportunities under existing and new legislation. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 13, 2025.

    Company IR and Media Contact:
    Michael Kramer, Alto Ingredients, Inc., 916-403-2755
    Investorrelations@altoingredients.com

    IR Agency Contact:
    Kirsten Chapman, Alliance Advisors Investor Relations, 415-433-3777
    altoinvestor@allianceadvisors.com

       
    ALTO INGREDIENTS, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited, in thousands, except per share data)
       
      Three Months Ended
    March 31,
        2025       2024  
    Net sales $ 226,540     $ 240,629  
    Cost of goods sold   228,347       243,029  
    Gross loss   (1,807 )     (2,400 )
    Selling, general and administrative expenses   (7,190 )     (7,932 )
    Loss from operations   (8,997 )     (10,332 )
    Interest expense, net   (2,729 )     (1,634 )
    Other income, net   47       241  
    Loss before provision for income taxes   (11,679 )     (11,725 )
    Provision for income taxes   —       —  
    Net loss $ (11,679 )   $ (11,725 )
    Preferred stock dividends $ (312 )   $ (315 )
    Net loss attributable to common stockholders $ (11,991 )   $ (12,040 )
    Net loss per share, basic and diluted $ (0.16 )   $ (0.17 )
    Weighted-average shares outstanding, basic and diluted   73,836       72,766  
                   
     
    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands, except par value)
     
    ASSETS   March 31, 2025       December 31, 2024  
    Current Assets:      
    Cash and cash equivalents $ 26,778     $ 35,469  
    Restricted cash   393       742  
    Accounts receivable, net   65,461       58,217  
    Inventories   50,609       49,914  
    Derivative instruments   4,071       3,313  
    Other current assets   6,149       5,463  
    Total current assets   153,461       153,118  
    Property and equipment, net   212,624       214,742  
    Other Assets:        
    Right of use operating lease assets, net   19,416       20,553  
    Intangible assets, net   8,142       4,509  
    Other assets   8,566       8,516  
    Total other assets   36,124       33,578  
    Total Assets $ 402,209     $ 401,438  
                   
     
    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS (CONTINUED)
    (unaudited, in thousands, except par value)
     
    LIABILITIES AND STOCKHOLDERS’ EQUITY   March 31, 2025       December 31, 2024  
    Current Liabilities:      
    Accounts payable $ 17,029     $ 20,369  
    Accrued liabilities   23,819       24,214  
    Current portion – operating leases   4,968       4,851  
    Derivative instruments   301       1,177  
    Other current liabilities   6,999       7,193  
    Total current liabilities   53,116       57,804  
           
    Long-term debt   110,664       92,904  
    Operating leases, net of current portion   15,641       16,913  
    Other liabilities   8,868       8,754  
    Total Liabilities   188,289       176,375  
     
    Stockholders’ Equity:  
    Preferred stock, $0.001 par value; 10,000 shares authorized; Series A: no shares issued and outstanding as of March 31, 2025 and December 31, 2024 Series B: 927 shares issued and outstanding as of March 31, 2025 and December 31, 2024   1       1  
    Common stock, $0.001 par value; 300,000 shares authorized; 76,497 and 76,565 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively   77       77  
    Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of March 31, 2025 and December 31, 2024   —       —  
    Additional paid-in capital   1,045,024       1,044,176  
    Accumulated other comprehensive income   4,975       4,975  
    Accumulated deficit   (836,157 )     (824,166 )
    Total Stockholders’ Equity   213,920       225,063  
    Total Liabilities and Stockholders’ Equity $ 402,209     $ 401,438  
                   
     Reconciliation of Adjusted EBITDA to Net Loss Three Months Ended
    March 31,
    (in thousands) (unaudited)             2025       2024  
    Net loss $ (11,679 )   $ (11,725 )
    Adjustments:    
    Interest expense   2,729       1,634  
    Interest income   (84 )     (175 )
    Unrealized derivatives gains   (1,634 )     (3,190 )
    Acquisition-related expense   —       675  
    Depreciation and amortization expense   6,266       5,728  
    Total adjustments   7,277       4,672  
    Adjusted EBITDA $ (4,402 )   $ (7,053 )
     
    Segment Financials
    (in thousands) (unaudited)    		   Three Months Ended
    March 31,
        2025       2024  
    Net sales              
    Pekin Campus production, recorded as gross:              
    Alcohol sales $ 107,234     $ 108,350  
    Essential ingredient sales   44,618       46,709  
    Intersegment sales   297       321  
    Total Pekin Campus sales   152,149       155,380  
    Marketing and distribution:              
    Alcohol sales, gross $ 48,997     $ 54,431  
    Alcohol sales, net   61       34  
    Intersegment sales   2,506       2,752  
    Total marketing and distribution sales   51,564       57,217  
         
    Western production, recorded as gross:    
    Alcohol sales $ 16,194     $ 20,231  
    Essential ingredient sales   7,808       7,826  
    Intersegment sales   264       —  
    Total Western production sales   24,266       28,057  
         
    Corporate and other   1,628       3,048  
    Intersegment eliminations   (3,067 )     (3,073 )
    Net sales as reported $ 226,540     $ 240,629  
     
    Cost of goods sold:
    Pekin Campus production $ 155,222     $ 151,112  
    Marketing and distribution   47,650       53,685  
    Western production   25,524       36,517  
    Corporate and other   1,681       2,794  
    Intersegment eliminations   (1,730 )     (1,079 )
    Cost of goods sold as reported $ 228,347     $ 243,029  
           
    Gross profit (loss):      
    Pekin Campus production $ (3,073 )   $ 4,268  
    Marketing and distribution   3,914       3,532  
    Western production   (1,258 )     (8,460 )
    Corporate and other   (53 )     254  
    Intersegment eliminations   (1,337 )     (1,994 ) 
    Gross loss as reported $ (1,807 )   $ (2,400 ) 
                 
    Sales and Operating Metrics (unaudited)
    (in thousands) (unaudited)
    		 Three Months Ended
    March 31,
        2025       2024  
    Alcohol Sales (gallons in millions)      
    Pekin Campus renewable fuel gallons sold   32.6       31.8  
    Western production renewable fuel gallons sold   8.3       11.2  
    Third party renewable fuel gallons sold   24.4       29.7  
    Total renewable fuel gallons sold   65.3       72.7  
    Specialty alcohol gallons sold   24.3       26.3  
    Total gallons sold   89.6       99.0  
           
    Sales Price per Gallon      
    Pekin Campus $ 1.90     $ 1.90  
    Western production $ 1.95     $ 1.80  
    Marketing and distribution $ 2.01     $ 1.83  
    Average sales price per gallon $ 1.93     $ 1.86  
           
    Alcohol Production (gallons in millions)      
    Pekin Campus   54.3       53.6  
    Western production   8.3       9.7  
    Total   62.6       63.3  
           
    Corn Cost per Bushel      
    Pekin Campus $ 4.65     $ 4.73  
    Western production $ 5.95     $ 5.89  
    Total $ 4.81     $ 4.92  
           
    Average Market Metrics    
    PLATTS Ethanol price per gallon $ 1.71     $ 1.56  
    CME Corn cost per bushel $ 4.72     $ 4.35  
    Board corn crush per gallons (1) $ 0.02     $ 0.01  
         
    Essential Ingredients Sold (thousand tons)    
    Pekin Campus:    
    Distillers grains   90.7       87.7  
    CO2   45.3       39.1  
    Corn wet feed   34.5       25.6  
    Corn dry feed   23.8       18.9  
    Corn oil and germ   19.6       17.8  
    Corn meal   9.4       8.3  
    Syrup and other   8.2       9.5  
    Yeast   6.4       5.7  
    Total Pekin Campus essential ingredients sold   237.9       212.6  
         
    Western production:    
    Distillers grains   58.1       71.8  
    CO2   12.6       13.3  
    Syrup and other   0.8       14.2  
    Corn oil   1.4       1.5  
    Total Western production essential ingredients sold   72.9       100.8  
         
    Total Essential Ingredients Sold   310.8       313.4  
         
         
    Essential ingredients return % (2)    
    Pekin Campus return   48.0 %     52.1 %
    Western production return   49.0 %     39.3 %
    Consolidated total return   48.2 %     49.8 %
         

    ________________

    (1)  Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn.
    (2)  Essential ingredients revenues as a percentage of total corn costs consumed.

    The MIL Network –

  • MIL-OSI: Fortinet Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Highlights

    • Total revenue of $1.54 billion, up 14% year over year
    • Product revenue of $459 million, up 12% year over year
    • Billings of $1.60 billion, up 14% year over year1
    • Unified SASE ARR2up 26% and Security Operations ARR2up 30%, year over year
    • Record first quarter GAAP operating margin of 29%
    • Record first quarter Non-GAAP operating margin of 34%1
    • Record Cash flow from operations of $863 million
    • Record Free cash flow of $783 million1

    SUNNYVALE, Calif., May 07, 2025 (GLOBE NEWSWIRE) — Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the first quarter ended March 31, 2025.

    “We are pleased to report another strong quarter as non-GAAP operating margin increased 570 basis points year over year to a first quarter record of 34%, while billings grew 14% year over year,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “We continue to accelerate our growth strategy by investing in the rapidly expanding Unified SASE and Security Operations markets, while strengthening our leadership in Secure Networking. Leveraging our deep expertise in networking and security convergence, a strong track record of AI-driven innovation, and seamless product development and integration through our FortiOS operating system, we have established ourselves as the leader in organic innovation and will continue setting the industry standard in cybersecurity.”

    Financial Highlights for the First Quarter of 2025

    • Revenue: Total revenue was $1.54 billion for the first quarter of 2025, an increase of 13.8% compared to $1.35 billion for the same quarter of 2024.
    • Product Revenue: Product revenue was $459.1 million for the first quarter of 2025, an increase of 12.3% compared to $408.9 million for the same quarter of 2024.
    • Service Revenue: Service revenue was $1.08 billion for the first quarter of 2025, an increase of 14.4% compared to $944.4 million for the same quarter of 2024.
    • Billings1: Total billings were $1.60 billion for the first quarter of 2025, an increase of 13.5% compared to $1.41 billion for the same quarter of 2024.
    • Remaining performance obligations: Remaining performance obligations were $6.49 billion as of March 31, 2025, an increase of 11.7% compared to $5.81 billion as of March 31, 2024. We expect to recognize approximately $3.38 billion as revenue over the next 12 months, an increase of 15.4% compared to $2.93 billion as of March 31, 2024.
    • Unified SASE ARR2: Unified SASE ARR was $1.15 billion as of March 31, 2025, an increase of 25.7% compared to $914.7 million as of March 31, 2024.
    • Security Operations ARR2: Security Operations ARR was $434.5 million as of March 31, 2025, an increase of 30.3% compared to $333.5 million as of March 31, 2024.
    • GAAP Operating Income and Margin: GAAP operating income was $453.8 million for the first quarter of 2025, representing a GAAP operating margin of 29.5%. GAAP operating income was $321.2 million for the same quarter of 2024, representing a GAAP operating margin of 23.7%.
    • Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $526.2 million for the first quarter of 2025, representing a non-GAAP operating margin of 34.2%. Non-GAAP operating income was $386.1 million for the same quarter of 2024, representing a non-GAAP operating margin of 28.5%.
    • GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $433.4 million for the first quarter of 2025, compared to GAAP net income of $299.3 million for the same quarter of 2024. GAAP diluted net income per share was $0.56 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.39 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.
    • Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was $452.3 million for the first quarter of 2025, compared to non-GAAP net income of $333.9 million for the same quarter of 2024. Non-GAAP diluted net income per share was $0.58 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to $0.43 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.
    • Cash Flow: Cash flow from operations was $863.3 million for the first quarter of 2025, compared to $830.4 million for the same quarter of 2024. Cash flow from operations for the first quarter of 2025 includes $14.0 million proceeds from an intellectual property matter.
    • Free Cash Flow1: Free cash flow was $782.8 million for the first quarter of 2025, compared to $608.5 million for the same quarter of 2024.

    Guidance

    For the second quarter of 2025, Fortinet currently expects:

    • Revenue in the range of $1.590 billion to $1.650 billion
    • Billings in the range of $1.685 billion to $1.765 billion
    • Non-GAAP gross margin in the range of 80.0% to 81.0%
    • Non-GAAP operating margin in the range of 31.5% to 32.5%
    • Diluted non-GAAP net income per share in the range of $0.58 to $0.60, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 773 million to 777 million.

    For the fiscal year 2025, Fortinet currently expects:

    • Revenue in the range of $6.650 billion to $6.850 billion
    • Service revenue in the range of $4.575 billion to $4.725 billion
    • Billings in the range of $7.200 billion to $7.400 billion
    • Non-GAAP gross margin in the range of 79.0% to 81.0%
    • Non-GAAP operating margin in the range of 31.5% to 33.5%
    • Diluted non-GAAP net income per share in the range of $2.43 to $2.49, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 769 million to 779 million.

    These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

    Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, gain on intellectual property matters, gain on bargain purchase related to acquisition, gain from an equity method investment and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

    1 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.
    2 Annual Recurring Revenue or ARR is defined as the annualized value of renewable / recurring customer agreements as of the measurement date, assuming any contract that expires during the next 12 months is renewed at its existing value.

    Conference Call Details

    Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.

    Second Quarter 2025 Conference Participation Schedule:

    • J.P. Morgan Global Technology, Media and Communications Conference
      May 13, 2025
    • Bank of America Global Technology Conference
      June 3, 2025

    Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s website. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet’s website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.

    About Fortinet (www.fortinet.com)

    Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTs”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

    Copyright © 2025 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAgent, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAppSec, FortiAuthenticator, FortiBranchSASE, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCART, FortiCASB, FortiCentral, FortiCNP, FortiConnect, FortiController, FortiConverter, FortiCSPM, FortiCWP, FortiDAST, FortiDATA, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevice, FortiDevSec, FortiDLP, FortiEdge, FortiEDR, FortiEndpoint, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex, FortiFone, FortiGSLB, FortiGuest, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPenTest, FortiPhish, FortiPoint, FortiPoints, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiScanner, FortiSDNConnector, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiSRA, FortiSwitch, FortiTelemetry, FortiTester, FortiTIP, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM, FortiXDR, Lacework FortiCNAPP, Linksys, Intelligent Mesh, Velop, Max-Stream, Performance Perfected and SECURITY FABRIC. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

    FTNT-F

    Forward-Looking Statements

    This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future growth and market share gains, our strategy going forward, and guidance and expectations around future financial results, including guidance and expectations for the second quarter and full year 2025, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, rising interest rates or reduced information technology spending; supply chain challenges; negative impacts from the ongoing war in Ukraine and its related macroeconomic effects and our decision to reduce operations in Russia; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; sales execution risks, including risks in connection with the timing and completion of large strategic deals; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive, including advances in artificial intelligence; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by competition and pricing pressure; excess product inventory for any reason, including those caused by the effects of increased inflation and interest rates in certain geographies and the war in Ukraine; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine or tensions between China and Taiwan, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (“SEC”), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

    Non-GAAP Financial Measures

    We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

    Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

    Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business and cash flows. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

    Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment and excluding any significant non-recurring items, such as proceeds from intellectual property matters. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures and net of proceeds from intellectual property matters, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes cash flows from significant non-recurring items, such as proceeds from intellectual property matters, investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our proceeds from intellectual property matters, our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.

    Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, amortization of acquired intangible assets, less gain on intellectual property matters and, when applicable, other significant non-recurring items in a given quarter. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

    Non-GAAP net income and diluted net income per share. We define non-GAAP net income as net income plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for a gain on bargain purchase related to acquisition, a gain from an equity method investment related to acquisition and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income and diluted net income per share calculated in accordance with GAAP.

    FORTINET, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in millions)
     
      March 31,
    2025    		   December 31,
    2024
    		  
    ASSETS                
    CURRENT ASSETS:                
    Cash and cash equivalents $ 3,596.6     $ 2,875.9    
    Short-term investments   1,183.9       1,190.6    
    Accounts receivable—net   1,174.0       1,463.4    
    Inventory   362.7       315.5    
    Prepaid expenses and other current assets   125.4       126.1    
       Total current assets   6,442.6       5,971.5    
    LONG-TERM INVESTMENTS   35.2       —    
    PROPERTY AND EQUIPMENT—NET   1,403.8       1,349.5    
    DEFERRED CONTRACT COSTS   636.2       622.9    
    DEFERRED TAX ASSETS   1,411.6       1,335.6    
    GOODWILL AND OTHER INTANGIBLE ASSETS—NET   357.4       350.4    
    OTHER ASSETS   120.2       133.2    
    TOTAL ASSETS $ 10,407.0     $ 9,763.1    
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    CURRENT LIABILITIES:                
    Accounts payable $ 224.5     $ 190.9    
    Accrued liabilities   415.0       337.9    
    Accrued payroll and compensation   250.2       255.7    
    Current portion of long-term debt   498.7       —    
    Deferred revenue   3,339.4       3,276.2    
       Total current liabilities   4,727.8       4,060.7    
    DEFERRED REVENUE   3,079.0       3,084.7    
    LONG-TERM DEBT   496.2       994.3    
    OTHER LIABILITIES   141.1       129.6    
       Total liabilities   8,444.1       8,269.3    
    COMMITMENTS AND CONTINGENCIES                
    STOCKHOLDERS’ EQUITY:                
    Common stock   0.8       0.8    
    Additional paid-in capital   1,668.7       1,636.2    
    Accumulated other comprehensive loss   (22.9 )     (26.1 )  
    Retained earnings (accumulated deficit)   316.3       (117.1 )  
                Total stockholders’ equity   1,962.9       1,493.8    
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 10,407.0     $ 9,763.1    
     
    FORTINET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited, in millions, except per share amounts)
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    REVENUE:                
    Product $ 459.1     $ 408.9    
    Service   1,080.6       944.4    
          Total revenue   1,539.7       1,353.3    
    COST OF REVENUE:                
    Product   149.9       182.8    
    Service   143.2       121.9    
          Total cost of revenue   293.1       304.7    
    GROSS PROFIT:                
    Product   309.2       226.1    
    Service   937.4       822.5    
          Total gross profit   1,246.6       1,048.6    
    OPERATING EXPENSES:                
    Research and development   198.6       173.0    
    Sales and marketing   542.7       501.1    
    General and administrative   57.8       54.4    
    Gain on intellectual property matters   (6.3 )     (1.1 )  
          Total operating expenses   792.8       727.4    
    OPERATING INCOME   453.8       321.2    
    INTEREST INCOME   44.3       32.2    
    INTEREST EXPENSE   (4.9 )     (5.1 )  
    OTHER INCOME (EXPENSE)—NET   26.1       (2.9 )  
    INCOME BEFORE INCOME TAXES AND GAIN (LOSS) FROM EQUITY METHOD
    INVESTMENTS    		   519.3       345.4    
    PROVISION FOR INCOME TAXES   96.5       39.5    
    GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS   10.6       (6.6 )  
    NET INCOME $ 433.4     $ 299.3    
    Net income per share:                
    Basic $ 0.56     $ 0.39    
    Diluted $ 0.56     $ 0.39    
    Weighted-average shares outstanding:                
    Basic   768.3       762.4    
    Diluted   776.8       770.5    
     
    FORTINET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in millions)
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    CASH FLOWS FROM OPERATING ACTIVITIES:                
    Net income $ 433.4     $ 299.3    
    Adjustments to reconcile net income to net cash provided by operating activities:                
             Stock-based compensation   66.1       62.3    
             Amortization of deferred contract costs   78.0       72.0    
             Depreciation and amortization   35.8       28.6    
             Amortization of investment discounts   (10.3 )     (12.2 )  
             Other   (35.5 )     9.9    
             Changes in operating assets and liabilities, net of impact of business combinations:                
                      Accounts receivable—net   303.9       405.6    
                      Inventory   (34.1 )     36.5    
                      Prepaid expenses and other current assets   3.4       (0.1 )  
                      Deferred contract costs   (91.3 )     (66.5 )  
                      Deferred tax assets   (30.0 )     (73.9 )  
                      Other assets   1.5       (6.2 )  
                      Accounts payable   24.6       (61.6 )  
                      Accrued liabilities   63.7       105.0    
                      Accrued payroll and compensation   (8.2 )     (27.4 )  
                      Deferred revenue   57.0       54.8    
                      Other liabilities   5.3       4.3    
                             Net cash provided by operating activities   863.3       830.4    
    CASH FLOWS FROM INVESTING ACTIVITIES:                
    Purchases of investments   (503.0 )     (436.1 )  
    Sales of investments   2.8       —    
    Maturities of investments   466.9       393.4    
    Purchases of property and equipment   (66.5 )     (221.9 )  
    Payments made in connection with business combinations, net of cash acquired   (11.2 )     (5.7 )  
    Other   0.2       —    
                             Net cash used in investing activities   (110.8 )     (270.3 )  
    CASH FLOWS FROM FINANCING ACTIVITIES:                
    Proceeds from issuance of common stock   20.2       13.4    
    Taxes paid related to net share settlement of equity awards   (52.9 )     (42.9 )  
    Other   —       (0.8 )  
                             Net cash used in financing activities   (32.7 )     (30.3 )  
    EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   0.9       (1.4 )  
    NET INCREASE IN CASH AND CASH EQUIVALENTS   720.7       528.4    
    CASH AND CASH EQUIVALENTS—Beginning of period   2,875.9       1,397.9    
    CASH AND CASH EQUIVALENTS—End of period $ 3,596.6     $ 1,926.3    
     
    Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
    (Unaudited, in millions, except per share amounts)
     
    Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income and diluted net income per share
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    Reconciliation of non-GAAP operating income:                
    GAAP operating income $ 453.8     $ 321.2    
    GAAP operating margin   29.5 %     23.7 %  
    Add back:                
        Stock‐based compensation   66.9       63.0    
        Amortization of acquired intangible assets   11.8       3.0    
        Gain on intellectual property matters   (6.3 )     (1.1 )  
    Non‐GAAP operating income $ 526.2     $ 386.1    
    Non‐GAAP operating margin   34.2 %     28.5 %  
                     
    Reconciliation of non-GAAP net income:                
    GAAP net income $ 433.4     $ 299.3    
    Add back:                
        Stock‐based compensation   66.9       63.0    
        Amortization of acquired intangible assets   11.8       3.0    
        Gain on intellectual property matters   (6.3 )     (1.1 )  
        Gain on bargain purchase (a)   (39.9 )     —    
        Tax adjustment (b)   (2.8 )     (30.3 )  
        Gain from equity method investment (c)   (10.8 )     —    
    Non-GAAP net income $ 452.3     $ 333.9    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income $ 452.3     $ 333.9    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
        Non-GAAP shares used in diluted net income per share calculations   776.8       770.5    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted $ 0.58     $ 0.43    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Reconciliation of non-GAAP net income per share, diluted                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    GAAP net income per share, diluted $ 0.56     $ 0.39    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Add back:                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
        Non-GAAP adjustments to net income per share   0.02       0.04    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted $ 0.58     $ 0.43    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    (a) To exclude a $39.9 million gain on bargain purchase related to our acquisition of Linksys Holdings, Inc. (“Linksys”) in the three months ended March 31, 2025.
    (b) Non-GAAP financial information is adjusted to an effective tax rate of 18% and 17% in the three months ended March 31, 2025 and 2024, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
    (c) To exclude a $10.8 million gain from equity method investment in Linksys resulted from our acquisition of Linksys in the three months ended March 31, 2025.
     
    Reconciliation of net cash provided by operating activities to free cash flow
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    Net cash provided by operating activities $ 863.3     $ 830.4    
    Less: Purchases of property and equipment   (66.5 )     (221.9 )  
    Less: Proceeds from intellectual property matter   (14.0 )     —    
    Free cash flow $ 782.8     $ 608.5    
    Net cash used in investing activities $ (110.8 )   $ (270.3 )  
    Net cash used in financing activities $ (32.7 )   $ (30.3 )  
     
    Reconciliation of total revenue to total billings
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    Total revenue $ 1,539.7   $ 1,353.3    
    Add: Change in deferred revenue   57.5     54.9    
    Less: Deferred revenue balance acquired in business acquisitions   —     (1.0 )  
    Total billings $ 1,597.2   $ 1,407.2    
     
    Investor Contact: Media Contact:
     
    Aaron Ovadia
    Fortinet, Inc.
    408-235-7700
    investors@fortinet.com    		 Michelle Zimmermann
    Fortinet, Inc.
    408-235-7700
    pr@fortinet.com

    The MIL Network –

  • MIL-OSI: Compass Diversified Discloses Non-Reliance on Financial Statements for Fiscal 2024 Amid an Ongoing Internal Investigation into its Subsidiary, Lugano Holding, Inc.

    Source: GlobeNewswire (MIL-OSI)

    WESTPORT, Conn., May 07, 2025 (GLOBE NEWSWIRE) — Compass Diversified (NYSE: CODI) (“CODI”) today disclosed non-reliance on its financial statements for fiscal 2024 amid an ongoing internal investigation into its subsidiary, Lugano Holding, Inc. It also announced that it intends to delay the filing of its first quarter 2025 Form 10-Q.

    The Audit Committee of CODI’s Board of Directors promptly launched an investigation after CODI’s senior leadership was made aware of concerns about how Lugano was potentially financing inventory. The investigation, led by outside counsel and a forensic accounting firm, is ongoing but has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices. After discussing with senior leadership and investigators, the Audit Committee of CODI’s Board has concluded that the previously issued financial statements for 2024 require restatement and should no longer be relied upon.

    Effective May 7, 2025, Lugano’s founder and CEO, Moti Ferder, resigned from all of his positions at Lugano and will not receive any severance compensation. These issues are limited to Lugano, of which CODI owns approximately 60%, and the investigation is not focused on CODI’s other subsidiaries.  

    “The company’s Board of Directors continues to have confidence in CODI leadership and Compass Group Management, the company’s external manager,” said Larry Enterline, Chair of the CODI Board of Directors. “The company’s manager and its employees reacted swiftly and decisively in response to a concern regarding Lugano, elevating it immediately to our Audit Committee. They have been proactively engaged with the Audit Committee and our investigators throughout this process to both accelerate the investigation and work to limit any long-term impact on CODI shareholders.”

    The Board and senior leadership team at CODI are committed to seeing the investigation through and are actively evaluating all available options to preserve value and protect all layers of CODI’s capital structure, including common shareholders.

    “What has been uncovered through the investigation thus far does not reflect who we are as a business and the values we uphold,” said Elias Sabo, CEO of CODI. “Our priority is to support the Audit Committee’s investigation and to fully understand what happened. CODI’s other eight subsidiary companies have strong balance sheets and cash flow, and we are, as always, fully focused on protecting our stakeholders and maximizing value.”

    CODI is a holding company that acquires and actively manages middle-market businesses. With its diverse group of successful businesses, CODI is uniquely structured to withstand downturns and losses at individual subsidiary companies.

    At Lugano, Josh Gaynor, who joined the company in 2024 as President, has been appointed interim CEO. He and Lugano CFO Christoph Pachler, who also joined Lugano in 2024, will step in to handle all of Mr. Ferder’s former responsibilities.

    CAUTIONARY STATEMENT REGARDING 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, including without limitation the CODI’s expectations as to the timing and outcome of the Audit Committee’s investigation, actions taken in response to the outcome of the Audit Committee’s investigation, the future performance of Lugano and CODI’s other subsidiaries, the filing or delay of CODI’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and subsequent periodic reports, the amount of any potential misstatements associated with Lugano and the impact any such misstatements may have on CODI’s previously issued financial statements or results of operations. Such forward looking statements may be identified by, among other things, the use of forward-looking terminology such as “believe,” “expect,” “may,” “could,” “would,” “plan,” “intend,” “estimate,” “predict,” “potential,” “continue,” “should” or “anticipate” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. These statements are based on beliefs and assumptions by the Board of Directors and management, and on information currently available to the Board of Directors and management. These statements involve risk and uncertainties that could cause the actual results and outcomes to differ, perhaps materially, including but not limited to: the discovery of additional information relevant to the investigation; the conclusions of the Audit Committee (and timing of those conclusions) concerning matters relating to the investigation; and the timing of the review by, and the conclusions of, CODI’s independent registered public accounting firm regarding the investigation and CODI’s financial statements. Please see CODI’s Annual Report on Form 10-K for the year ended December 31, 2024 for other risk factors that you should consider in connection with such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date such statements have been made. CODI does not undertake any public obligation to update any forward-looking statements to reflect events, circumstances, or new information after the date of this press release, or to reflect the occurrence of unanticipated events.

    Investor Relations
    Compass Diversified
    irinquiry@compassdiversified.com

    Gateway Group
    Cody Slach
    949.574.3860
    CODI@gateway-grp.com

    Media Relations
    Compass Diversified
    mediainquiry@compassdiversified.com

    The IGB Group
    Leon Berman
    212.477.8438
    lberman@igbir.com

    The MIL Network –

  • MIL-OSI USA: Rep. Zinke and Vasquez Launch Bipartisan Public Lands Caucus to Champion Conservation and Access

    Source: US Congressman Ryan Zinke (Western Montana)

    WASHINGTON, D.C. – Today, U.S. Representatives Ryan Zinke (R-MT-01) and Gabe Vasquez (D-N.M.-02) announced the launch of the bipartisan Public Lands Caucus, a bipartisan congressional coalition focused on conserving America’s public lands and expanding access for all Americans. The caucus will build upon the trusted working relationship between Vasquez and Zinke, forged over the past two years partnering on conservation legislation, along with the momentum of a new Congress and a new generation of Western lawmakers to bring a new voice to the conversation around public lands.

    The Public Lands Caucus is founded on the belief that public lands are “for the benefit and enjoyment of the people.” It will bring lawmakers from both sides of the aisle to advance practical, consensus-driven public lands policy that conserves natural resources while supporting recreation, local economies, and public access. Caucus members are committed to bridging ideological divides and advancing pragmatic solutions to protect and manage public lands.

     

    “I follow the Theodore Roosevelt motto that public lands are ‘for the benefit and enjoyment of the people,’ and that means making sure we both conserve and manage those lands to ensure public access for the next generation,” said Rep. Ryan Zinke. “Public lands aren’t red or blue issues, it’s red white and blue. The bipartisan Public Lands Caucus brings together lawmakers who don’t agree on much, but we agree on and are ready to work together to promote policies that advance conservation and public access. I look forward to working with Co-Chair Vasquez, the vice chairs, and all the members of this caucus so future generations can enjoy the same opportunities to hunt, hike, fish, make a living and enjoy our uniquely American heritage.”

    “Public lands are where I learned to fish, hunt, and connect with my family and culture—and those experiences shaped who I am,” said Vasquez. “These lands don’t belong to one party or one group of people; they belong to all of us. The Public Lands Caucus is about protecting that birthright—bringing Democrats and Republicans together to preserve access, defend conservation, and invest in the outdoor economy that powers rural communities like mine in southern New Mexico. This is personal for me, and I’m proud to lead this bipartisan effort to keep our public lands in public hands.” 

    “We should be focusing on expanding public access to federal lands, not auctioning them off,” said Rep Dingell. “And we should be investing in our National Parks System and National Wildlife Refuges, not making it harder for Americans to visit these special places. I’m proud to be Vice-Chair of the bipartisan Public Lands Caucus because conservation has historically been, and should continue to be, a priority regardless of party. I look forward to working with my colleagues on both sides of the aisle to protect our precious natural resources, federal lands, and beloved species.” 

    “Idahoans live in Idaho because we love our public lands,” said Rep. Simpson. “This trend is common across the West, where public lands are a part of our daily lives. As a lifelong Idahoan and Chairman of the House Interior and Environment Appropriations Subcommittee, I remain committed to preserving access to our public lands and defending our way of life. Being named Vice Chair of the Public Lands Caucus is an honor, and I look forward to working with my colleagues to ensure future generations can enjoy the same benefits that we do today. I’m thankful to Rep. Zinke for his leadership here.”

    “As someone born and raised in the Coachella Valley, I know how sacred our public lands are. Places like Joshua Tree and the new Chuckwalla National Monument are more than landscapes—they’re part of our identity, history, and culture,” said Rep. Raul Ruiz (D-CA-25) Conserving public lands means protecting cultural heritage, preserving critical ecosystems, and expanding access to nature’s healing power, especially for underserved communities. I’ll continue fighting to ensure every family—no matter where they live—can experience the beauty, health, and enjoyment that public lands offer.”

    “Public land access is integral to Montana,” said Congressman Troy Downing (MT-02). “Montanans rely on the Treasure State’s more than 30 million acres of public lands to hunt, fish, recreate, graze their livestock, and so much more. I applaud Co-Chairs Zinke and Vasquez for their efforts and look forward to working with my colleagues to find common sense solutions that preserve my constituents’ access to this fundamentally American resource.”

    “As a representative of Coastal Virginia, I know how vital our public lands and waters are to our economy, our culture, and our quality of life – from supporting tourism and outdoor recreation to sustaining jobs and protecting natural habitats,” said Congresswoman Kiggans. “I’m proud to join the bipartisan Public Lands Caucus to bring a balanced, commonsense approach to protecting these resources. From our shorelines to our forests, we must ensure that future generations can enjoy and benefit from healthy and accessible public lands across the country for years to come.”

     “Having served as Chairman of the Congressional Western Caucus for four years, I understand firsthand the importance of common-sense conservation policies that protect our precious lands while guaranteeing public access,” said Congressman Newhouse. “The bipartisan Public Lands Caucus will elevate practical land management policies that support our shared commitment to unlocking our natural resources, boosting surrounding local economies, and supporting safe recreation for all to enjoy. I thank Reps. Zinke and Vasquez for their leadership, and I look forward to working closely with the caucus this Congress.”

     

    Caucus Leadership

    Co-Chairs

    • Rep. Gabe Vasquez (D-NM-02)
    • Rep. Ryan Zinke (R-MT-01) 

    Vice Chairs

    • Rep. Debbie Dingell (D-MI-06)
    • Rep. Mike Simpson (R-ID-02)

    Members Include

    • Rep. Raul Ruiz (D-CA-25)
    • Rep. Chuck Edwards (R-NC-11)
    • Rep. Joe Neguse (D-CO-02)
    • Rep. Jen Kiggan (R-VA-02)
    • Rep. Emily Randall (D-WA-06)
    • Rep. Troy Downing (R-MT-01)
    • Rep. Steven Horsford (D-NV-04)
    • Rep. Dan Newhouse (R-WA-04)
    • Rep. Susie Lee (D-NV-03)
    • Rep. Juan Ciscomani (R-AZ-06)

     

    Organizational Support

    “Public lands are the backyard of the little guy, demonstrating our commitment to leaving the world a better place for our children than the one we inherited from our parents,” said Chris Wood, President and CEO of Trout Unlimited. “On behalf of Trout Unlimited members across the nation, I thank Congressmen Zinke and Vasquez and the members of the newly minted bipartisan Public Lands Caucus for their leadership upholding our legacy of public lands. Preventing large-scale transfer or sale of federal public lands helps to maintain access to some of the best places to fish and hunt on the planet. We look forward to working with the caucus to keep it that way.” 

    “On both sides of the aisle, Americans cherish our public lands,” said Joel Pedersen, president and CEO of the Theodore Roosevelt Conservation Partnership. “From the Northern Rockies of Montana to the Gila Mountains of New Mexico, these lands and waters provide invaluable opportunities to millions of hunters and anglers. We join our nation’s sportsmen and women in thanking Representatives Zinke and Vasquez for their leadership in forming the bipartisan Public Lands Caucus which will continue to advance America’s outdoor legacy.”

    Whitney Potter Schwartz, Senior Vice President, Outdoor Recreation Roundtable: “The creation of the Public Lands Caucus is a significant and welcome step forward in protecting and expanding access to our public lands and waters that power America’s $1.2 trillion outdoor recreation economy and enrich the lives of millions of Americans. Keeping public lands public is a business imperative. There couldn’t be a more important time to stand up for America’s best return on investment and keep public land selloff out of reconciliation. ORR thanks Representatives Gabe Vasquez and Ryan Zinke for their leadership and all the bipartisan members of the Caucus who have come together to champion public lands access, stewardship, and infrastructure investments. We look forward to working with the Caucus to ensure that public lands remain public and continue to be a foundation for outdoor experiences, local economies, and healthy communities for generations to come.” 

    “Public lands are essential to the emotional and economic well-being of our nation,” said Phil Ingrassia, President of the national RV Dealers Association. “RVDA applauds the creation of the Public Lands Caucus and its commitment to enhancing access and expanding the infrastructure that supports millions of Americans who enjoy these shared spaces.” 

    “America Outdoors applauds Representatives Vasquez and Zinke for their leadership in launching the bipartisan Public Lands Caucus,” said Caryn Short, America Outdoors. “Continued access to our public lands is vital to the health of the outfitting industry, rural economies, and the millions of Americans who rely on these landscapes for connection, livelihood, and adventure.” 

    Public lands are part of the shared national identify of Americans,” said Rachel Franchina, Executive Director, Society of Outdoor Recreation Professionals. “They are treasured places – both close to home and in iconic protected areas – for people to spend time with family and friends, recharge themselves and reconnect with nature. The Society of Outdoor Recreation Professionals supports Representatives Ryan Zinke (R-MT) and Gabe Vasquez (D-NM)’s Bipartisan Public Lands Caucus. High-quality experiences on public lands are something the vast majority of American value and their commitment to ensuring access to our shared heritage is more important now than ever.” 

    “Public lands make hunting, fishing, and other outdoor recreation activities accessible for millions of Americans,” said Kellis Moss, Managing Director of Federal Affairs for Ducks Unlimited. “Some of our most critical conservation programs, such as NAWCA, invest in habitat on public lands. We’re glad to see Congress prioritize conserving America’s natural places for the next generation of outdoorsmen and women, and we’re happy to support the Public Lands Caucus in this effort.”

    “The NWTF extends deep gratitude to Congressmen Vasquez and Zinke for their leadership in founding the bipartisan Public Lands Caucus,” said Jason Burckhalter, Co-CEO, National Wild Turkey Federation. “This crucial effort bolsters the unique American public trust, ensuring our public lands—vital habitats for wildlife, cornerstones of our hunting heritage, and cherished spaces for outdoor recreation—remain a shared resource, held in trust for all citizens, preserving their accessibility and stewardship for future generations.”

    “America’s upland hunters and grassland advocates applaud today’s launch of the bipartisan Public Lands Caucus,” said Ariel Wiegard, Vice President of Government Affairs, Pheasants Forever and Quail Forever. “We stand ready to work with Reps. Vasquez, Zinke, and the other Caucus members to advance public land conservation policies, increase and improve habitat and access, and energize and engage the upland conservation community. America’s grassland and sagebrush shrub-steppe ecosystems are among the most at-risk environments in the world. We are confident this Caucus will help ensure our treasured public lands deliver the promise of more wildlife and more hunters, alongside other natural resource and quality of life benefits, to the American people.”

    “Backcountry Hunters & Anglers strongly supports the creation of the Public Lands Caucus and thanks Representatives Vasquez and Zinke for bringing together a bipartisan force to defend against ongoing threats to sell or transfer our wild public lands,” said Devin O’Dea, Western Policy & Conservation Manager, Backcountry Hunters & Anglers. “Our public lands define who we are as Americans — places where anyone, regardless of background, can hunt, fish, camp or explore. The Public Lands Caucus is a crucial step in ensuring our wild public lands, waters, and wildlife endure.”

    “According to the American Horse Council’s latest economic impact study, 39 million U.S. households include a horse enthusiast, with recreational trail riders representing the largest segment of the equine industry — underscoring the critical need for access to public lands,” said Julie M. Broadway, President, American Horse Council & American Horse Council Foundation. “Conserving public lands, supporting local economies, and ensuring access for all Americans is essential to the equine community, and we strongly applaud the creation of this congressional caucus as a step toward protecting these shared resources.”

    “The Western Landowners Alliance applauds the formation of the bipartisan Public Lands Caucus to protect our public lands and thanks Representatives Vasquez and Zinke for their leadership on this issue,” said Lesli Allison, Chief Executive Officer, Western Landowners Alliance. “Care for our public lands is a priority across party lines and fence lines in the West. Western Landowners Alliance members steward tens of millions of acres of private and public land, and recognize the challenges facing federal land management and budgets. We are also acutely aware of the nation’s real housing deficit. But disposal of federal land is not a practical solution to either problem.”

    “Public lands are the source of clean drinking water for millions of Americans,” said Tom Kiernan, CEO, American Rivers. “The rivers that flow across our national parks, forests, and rangelands provide recreation and awesome scenic beauty to our country. We are excited to continue working with Congress to support the protection of these lands and rivers on behalf of all Americans. Thank you to Representatives Vasquez and Zinke for launching this caucus.”

    Watch the full launch event here.

    Access photos from the event here.

    ###

     

    MIL OSI USA News –

  • MIL-OSI Russia: Steering through the Fog: The Art and Science of Monetary Policy in Emerging Markets

    Source: IMF – News in Russian

    (As prepared for delivery)

    May 7, 2025

    Good afternoon. It is a pleasure to be with you here at this critical juncture for the global economy. Since early April, the US effective tariff rate has increased to levels last seen over a hundred years ago, and the uncertainty surrounding trade policy and geopolitics has surged.

    The economic effects of these developments are expected to be sizeable. Our World Economic Outlook ‘reference scenario’ projects that tariffs will reduce both global and emerging market (EM) output growth by roughly 0.5 percentage points relative to our forecast prior to the April tariffs. Countries imposing high tariffs, or those that are heavily dependent on trade with those countries, will be hit the hardest. But no country is likely to emerge unscathed: we have downgraded our forecasts for 127 countries that account for 86 percent of global GDP.

    The impact on inflation is more varied. For countries facing higher tariffs on their exports, the tariffs are expected to mainly operate as a negative demand shock and exert mild downward pressure on inflation.  For countries imposing much higher tariffs, notably the United States, the tariffs will likely act more as an adverse supply shock, boosting inflation while lowering growth.

    There are several reasons why economic outcomes could be much worse than our WEO reference scenario. As of now financial conditions have not tightened much, including in emerging markets, and many EM currencies have remained surprisingly resilient against the dollar. If, however, trade policy discussions do not yield lower tariffs soon, financial conditions could tighten abruptly, with major effects on capital flows to EMs.  Knightian uncertainty abounds as the global economic order transforms. How should central banks in emerging markets steer through this fog? I will address this question in today’s lecture.

     

    EM central banks have developed much stronger monetary policy frameworks since the late 1990s, often in the context of adopting inflation targeting. They have benefited from major improvements in governance, with clear mandates focused on price stability.  Their operational independence has also increased substantially — both de jure and de facto — and they have strengthened their public accountability, as well as transparency. These advancements were invaluable in helping them respond quickly both to COVID and to the subsequent inflation surge, raising interest rates sharply in the latter case to contain inflation and keep inflation expectations anchored.

    Even so, significant differences remain between EMs and AEs, especially regarding the strength of the exchange rate channel and the degree to which global factors influence monetary transmission. Several features deserve particular attention: 

    Transmission of policy actions and shocks differs in EMs

    First, monetary policy transmission appears noticeably weaker in EMs than in AEs, and dependent both on global financial conditions and on the reliance of EM banks on external financing. In advanced economies, an easing of policy rates quickly translates into lower market rates — which is what matters for the borrowing decisions of households and firms — and this boosts the economy.

    By contrast, my research with Sebnem Kalemli-Özcan and Pierre De Leo (De Leo, Gopinath and Kalemli-Özcan, 2024) shows that when EM central banks loosen policy, the transmission to short-term market rates depends critically on what happens to global financial conditions. If global financial conditions tighten enough – as often follows a surprise tightening in US monetary policy – then domestic market rates may even rise when the EM central bank lowers policy rates.  The implicit rise in the risk spread facing borrowers clearly blunts the effectiveness of monetary policy and makes it harder for EMs to cushion the effects of shocks. This is particularly relevant at the current juncture where trade shocks could play out as negative demand shocks in many EMs, calling for looser monetary policy. At the same time, they could play out as negative supply shocks in the US and call for tighter US monetary policy.

    The changing mix of EM external financing also raises new vulnerabilities. EMs have become more dependent on external financing from foreign nonbank financial institutions, including insurance companies and investment funds, with their share of external portfolio financing growing to about 40 percent. While nonbanks help diversify emerging market funding sources and reduce borrowing costs, these types of capital flows are also very sensitive to the global financial cycle.[1] At times of financial stress, investment funds—such as exchange traded funds and open-end mutual funds in particular—are more susceptible to investors withdrawing their money, which in turn causes investment funds to withdraw from the riskiest markets.  Consequently, the volume and speed of exit of capital flows have increased over time, as was evident at the start of Covid-19.

    This sensitivity of EMs to global stress may also increase given that crypto assets are playing a larger role in cross-border financial intermediation and payments, often spurred by the desire to achieve cost-efficiencies, but also to circumvent capital flow restrictions in some cases.  In most EMs, crypto asset use doesn’t yet appear high enough to present imminent systemic risks.  Even so, crypto assets are growing rapidly in many EMs, and overall usage has become a noticeable share of GDP in some EMs with high inflation and lower macroeconomic stability. For example, Cerutti, Chen and Hengge (2024) find that several EMs in Latin America and Eastern Europe fall in the upper quartile of countries in terms of the magnitude of their bitcoin inflows as a share of GDP, with monthly inflows in the range of 0.1 to 0.8% of GDP. Focusing on a wider set of crypto assets, Cardozo, Fernández, Jiang and Rojas (2024) find that cross-border crypto outflows have reached as much as a quarter of gross portfolio outflows in Brazil.

    Use of crypto requires a careful understanding of the risks.  Crypto may increase capital flow volatility and exacerbate financial stress, including by allowing investors to easily shift their deposits out of domestic banks into foreign exchange-denominated stablecoins.  If crypto flows grow large enough, such disintermediation from the banking system and associated capital outflows could cause financial conditions to tighten and the exchange rate to weaken, and potentially spur a significant economic downturn.

    Weaker policy credibility complicates monetary policy trade-offs

    A second difference between AEs and EMs is the relatively weaker credibility of EM monetary policy to deliver low inflation. While EMs have improved their frameworks substantially, inflation expectations still tend to be less well-anchored than in AEs. Consequently, there is a higher passthrough of cost shocks to inflation, as they feed through much more into inflation expectations as well as through other channels such as wage indexation.  Oil price shocks tend to impact core inflation more than twice as strongly in a sample of emerging market economies, relative to advanced ones.[2] This high passthrough makes dealing with external shocks particularly difficult for EM central banks, as second-round effects could be sizeable, including from ongoing shocks to trade policy that could disrupt supply chains and raise input costs.

    Inflation expectations also tend to be more sensitive to fiscal policy and debt in EMs. This likely reflects increased risks of fiscal dominance and political interference in central bank decisions, which can undermine the public’s confidence in the central bank’s ability to fight inflation. A surprise increase in government debt tends to boost medium-term expected inflation in EMs significantly, while having little effect in advanced economies.[3]

     

    Exchange rates have a much larger imprint on price and financial stability

    A third critical distinction between EMs and AEs is that the exchange rate has a much larger imprint on price and financial stability in EMs.  While passthrough of exchange rate changes to inflation has declined considerably for many EMs, it remains significantly higher than in advanced economies. A 10 percent depreciation of EM currencies against the dollar causes EM price levels to rise by about 2 percent, several times larger than in advanced economies.[4]

    The presence of foreign exchange mismatches increases the financial stability risks from exchange rate depreciation. While many EMs have reduced FX mismatches – or lowered the risk through the development of derivatives markets that allow for better hedging — reliance on dollar funding within the financial system remains an important source of fragility for some EMs. This weakens monetary transmission, as lowering interest rates causes the balance sheets of corporates with unhedged FX liabilities to deteriorate and financial conditions to tighten, which offsets some of the stimulus from easing. EMs that have shifted to relying more on local currency financing also can experience sharp increases in currency premia and local borrowing costs when foreign investors exit these shallow markets. This makes it harder for EMs to deal with an environment of bigger external shocks: even if a tariff abroad would look like a demand shock from the standpoint of an AE economy, the exchange rate depreciation it induces raises risk spreads and makes it harder for the EM central bank to cushion the impact on the economy. 

    Steering through the fog: How should policy respond?

    Having outlined some of the unique challenges emerging market central banks face in the current global context, I will next lay out some broad principles that can help steer through the fog. EMs clearly will differ in how they respond to the shocks and the uncertainty depending on their cyclical conditions and on structural features such as the extent of their exposure to trade and financial disruptions.

    This said, and despite the fog, EM central banks should respond forcefully to upside inflation risks if they materialize to ensure that high inflation does not get embedded into inflation expectations. While I’ve noted that we see the current configuration of tariffs as likely to be slightly disinflationary for many EMs in our reference scenario, there is a significant risk that inflationary pressures could emerge — from supply chain disruptions and higher input cost pressures in a fragmenting world or from exchange rate depreciations. 

    Given the high passthrough of both exchange rate changes and cost shocks to inflation in EMs, a major risk is large and persistent second round effects, especially if inflation has been running persistently above target and the fiscal position is weak. History has shown that once inflation becomes embedded in expectations—often through wage and price indexation mechanisms—it becomes significantly more difficult to reverse. If the risk materializes, timely and firm action is critical to keep inflation expectations anchored and reassure the public of the central bank’s unwavering commitment to sound monetary policy and price stability.

    Foreign exchange intervention should be used prudently

    Second, in a more turbulent external environment, foreign exchange intervention (FXI) can help address disorderly market conditions that undermine financial stability. The Fund’s Integrated Policy Framework is helpful in identifying conditions when it may be possible to improve tradeoffs facing central banks using FXI and other tools (IMF, 2023; Basu, Boz, Gopinath, Roch and Unsal, 2023).

    Notably, central banks can reduce exchange rate pressures by selling FX during episodes of capital flight when FX markets are shallow, allowing central banks not to have to hike policy rates sharply. This can improve macroeconomic outcomes as well as lower financial stability risks.

    However, it is important that FXI is not used to reduce exchange rate volatility per se, or to target a particular level of the exchange rate, as such misuse could easily weaken confidence in the central bank’s commitment to stabilizing inflation.  Moreover, given the finite level of reserves, the bar for FXI should be high to ensure that FX liquidity can be provided when it is really needed. As of now financial conditions have tightened in an orderly manner, which means that when it comes to FXI the advice is to keep the powder dry.

    Build financial and fiscal resilience

    Third, efforts to build financial resilience through strengthening prudential policies are also desirable. As I have emphasized, EM financial systems remain quite exposed to geopolitical shocks and face growing risks from heightened external finance from foreign nonbanks and potentially crypto. Prudential policies can help them build adequate buffers as well as reduce vulnerabilities arising from high leverage, volatile capital flows, and FX mismatches. On the crypto side, it will be important to develop comprehensive legal, regulatory and supervisory frameworks for crypto assets, including through cooperative global efforts given their cross-border nature (IMF, 2023b).  The authorities should also ensure that capital flow management measures, when appropriate, remain effective and not undermined by the use of crypto.  And EMs should continue to strengthen macroeconomic frameworks to reduce the risk of currency and asset substitution into crypto assets (often called “cryptoization”).

    Fiscal policy also plays a critical role in helping ensure macroeconomic stability. Uncertainty shocks have much bigger effects on sovereign spreads when EM debt servicing costs are relatively high. Ensuring that tax and spending policies adjust to keep debt on a sustainable path helps provide buffers to respond to downturns and lowers financial stability risks.

    Improve central bank communication, governance, and policy strategy

    Lastly, there is a high premium on further strengthening policy frameworks to continue building resilience in a more shock-prone environment. 

    Clarity of communication has become more critical than ever. Effective communication about the central bank’s reaction function –in qualitative terms – is likely to be useful in helping better anchor inflation expectations and thus improve tradeoffs.

    Improved governance – including to strengthen central bank independence – can increase public confidence that the central bank will have latitude to achieve its objectives. Central banks will inevitably make mistakes—no forecast is perfect. But what must be clear is that any deviation from target is the result of uncertainty, not political interference.

    EM central banks, as for their AE counterparts, must also adapt their policy strategies to focus more on the distribution of outcomes rather than the modal outlook, and to take more account of risk management considerations. Monetary policy must navigate a world shaped by a multiplicity of shocks—some persistent, some temporary, and some with offsetting effects on inflation where it is difficult to assess the net impact.

    Accordingly, many central banks should continue to take steps to revise their frameworks to move away from excessive reliance on central forecasts. This can be facilitated by increasing use of scenario analysis in decision-making.

    Conclusion

    To conclude, EMs have made major strides in improving their monetary policy frameworks, and this has enabled several of them to respond effectively to unprecedented shocks like the pandemic. They are now being tested again as the global economic order is reset and Knightian uncertainty prevails. This uncertainty does not, however, imply gradualism in all matters. If inflation pressures rise, EM central banks will need to respond quickly using policy rates to prevent higher inflation from getting entrenched as they did during COVID. We must recognize that the road ahead may have many unforeseen turns, which calls for further strengthening financial and fiscal resilience and navigating with monetary policy clarity, credibility, and discipline.

    References

    Baba, C., and J. Lee. 2022. “Second-round effects of oil price shocks – implications for Europe’s inflation outlook”. IMF Working Paper no. 2022/173.

    Basu, S.S., Boz, E., Gopinath, G., Roch, F., and F.D. Unsal. 2023. “Integrated monetary and financial policies for small open economies”. IMF Working Paper no. 2023/161.

    Brandão-Marques, L., Casiraghi, M., Gelos, G., Harrison, O., and G. Kamber. 2024. “Is high debt constraining monetary policy? Evidence from inflation expectations”. Journal of International Money and Finance 149(C).

    Brandão-Marques, L., Górnicka, L., and G. Kamber. 2023. “Exchange rate fluctuations in advanced and emerging economies: Same shocks, different outcomes”, in Shocks and Capital Flows, edited by Gaston Gelos and Ratna Sahay, IMF.

    Cardozo, P., Fernández, A., Jiang, J., and F.D. Rojas. 2024. “On cross-border crypto flows: Measurement, drivers, and policy implications“. IMF Working Paper no. 2024/261.

    Cerutti, E.M., Chen, J., and M. Hengge. 2024. “A primer on Bitcoin cross-border flows: Measurement and drivers“. IMF Working Paper no. 2024/85.

    Chari, A. 2023. “Global risk, non-bank financial intermediation, and emerging market vulnerabilities”. Annual Review of Economics 15: 549-572.

    De Leo, P., Gopinath, G., and S. Kalemli-Özcan. 2024. “Monetary policy and the short-rate disconnect in emerging economies”. NBER Working Paper no. 30458.

    IMF. 2023. “Integrated Policy Framework – Principles for use of foreign exchange interventions”. IMF Policy Paper no. 2023/061.

    IMF. 2023b. “Elements of effective policies for crypto assets”. IMF Policy Paper no. 2023/004.

    https://www.imf.org/en/News/Articles/2025/05/07/sp050725-science-of-monetary-policy-in-emerging-markets-gita-gopinath

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Canada: CleanBC review launched to strengthen climate action, results for people

    Source: Government of Canada regional news

    Merran Smith

    Merran Smith is president of New Economy Canada, bringing decades of leadership and partnership with industry, government and community to create economic solutions to society’s most pressing challenges. She is broadly recognized as an advocate and national thought leader in advancing Canada’s clean economy, with career highlights including founding Clean Energy Canada and her leadership in the landmark Great Bear Rainforest agreement. 

    Smith was a board member of BC Hydro, and co-chair of B.C.’s Climate Solutions Council, which advised the B.C. government on CleanBC. She has won numerous awards for her leadership in the clean economy, including most recently the King Charles III’s Coronation Medal awarded to a diverse group of individuals who have made significant contributions to British Columbia.

    Dan Woynillowicz

    Dan Woynillowicz is an accomplished leader focused on the development and implementation of effective energy and climate policies. As principal of Polaris Strategy + Insight, he blends policy expertise with an understanding of technology innovation and market transformation to help clients navigate the energy transition. He is a volunteer adviser to Urban Climate Solutions and the Clean Economy Fund, and from 2020-25 served as board chair of the B.C. Centre for Innovation and Clean Energy (CICE).

    Woynillowicz also served as an external expert adviser to the BC Hydro Task Force, which positioned BC Hydro to meet the province’s fast-growing demand for clean electricity. He is frequently called to testify before regulatory and legislative bodies, quoted in media, and regularly publishes commentary in Canada’s leading publications.

    MIL OSI Canada News –

  • MIL-OSI USA: VIDEO: After Pressure from Pressley, Treasury Secretary Says Ending Tariffs on Essential Baby Products “Under Consideration”

    Source: United States House of Representatives – Congresswoman Ayanna Pressley (MA-07)

    Pressley Slammed Trump’s Chaotic Tariff War, Highlighted Harmful Impact on Families With Babies and Young Children

    Video (YouTube)

    WASHINGTON – In a House Financial Services Committee hearing, Congresswoman Ayanna Pressley (MA-07) pressed Treasury Secretary Scott Bessent about the harmful impact of Trump’s tariffs on families with young children and asked if he would support an exemption to tariffs on baby products and other items that parents need to care for their kids, such as car seats. In response to her sharp questioning, Secretary Bessent conceded that such an exemption was “under consideration.”

    Congresswoman Pressley also underscored the harm felt by small business owners, parents, and other constituents in the Massachusetts 7th who are dealing with rising costs due to Trump’s tariffs and urged the Trump Administration to immediately reverse course.

    Last month, Congresswoman Pressley joined 45 colleagues in sending a Congressional letter to the Trump Administration imploring them to end tariffs on essential baby goods.

    A full transcript of her line of questioning is available below and the full video is available here.

    Transcript: After Pressure from Pressley, Treasury Secretary Says Ending Tariffs on Essential Baby Products “Under Consideration”
    House Financial Services Committee
    May 7, 2025

    REP. PRESSLEY: Secretary Bessent, you have heard from Democrats publicly and I’m certain you’ve heard from Republicans privately that this administration’s reckless and chaotic tariff policy is wreaking havoc on our economy.

    Rather than delivering stability for our country, this Trump tariff tantrum has been inconsistent, counterproductive, and disconnected from reality. 

    In my district, the Massachusetts 7th, I am hearing it from everyone.

    Small business owners are reeling from the unpredictable on-again, off-again tariffs. They’re holding back on expansion, delaying hiring, and bracing for the impact.

    Local and state officials are telling me about the effect tariffs will have on our state budget. Simultaneously, Massachusetts will see energy bills increase while revenue from tourism will decrease.

    But I want to focus on the constituent outreach that I’ve received from everyday families who are just fighting to make ends meet.

    Yes or no. Mr. Secretary, do you know what a car seat is?

    SEC. BESSENT: I have two children, yes. 

    REP. PRESSLEY: I figured as much, it’s correct you and your husband have two children.

    So I am sure you know that car seats are absolutely essential for families when traveling with babies and toddlers to school, to worship, to doctor’s appointments, just everyday living. 

    But not only are car seats essential, they are the law of the land. It’s the law of the land in 50 states. So there’s no getting around that.

    Mr. Secretary, what’s your estimate of how many babies are born in the United States each year?

    SEC. BESSENT: I’m gonna guess 2-3 million. 

    REP. PRESSLEY: Well, while the number fluctuates, there have consistently been more than 3.5 million babies born in the United States. That means millions of families in this country are doing what? Buying a car seat, because it’s essential and it is the law of the land in all 50 states. 

    But now, that cost is going up because Trump has announced up to 145% tariffs on Chinese imported products.

    Approximately, 9 out of every 10 car seats in the U.S. come from China. That’s a steep cost, a steep cost hike for families all over the country. The price is up in Republican districts and in Democratic districts.

    And it’s not just the car seats that are impacted. We’re talking about strollers, cribs, high chairs. No family is exempt from the harm of these Trump tariffs on essential baby products.

    But don’t just take my word for it.

    Mr. Chair, I would like to enter into the record a Yahoo Finance article from May 2025 entitled, “First Year Baby Expenses Already Top $20,000 and Tariffs Are Adding to the Bill As China Dominates Key Imports.”

    CHAIR: Without objection.

    REP. PRESSLEY: Look, I support improving manufacturing in America, but that is not going into effect overnight, like these tariffs are. There needs to be an exemption to help America’s families.

    Trump has used his power for tariff exemptions on thermoplastics, semiconductors, but what about baby products?

    Mr. Secretary, do you support an exemption to tariffs on items that parents need to care for their kids? Yes or no?

    SEC. BESSENT: Congresswoman, what you’re referring to are—

    REP. PRESSLEY: Yes or no.

    SEC. BESSENT: What you’re referring to are–

    REP. PRESSLEY: I’m reclaiming my time because I don’t want you to filibuster and give me some macroeconomic answer. Families at home are hurting … just give me a direct answer. 

    SEC. BESSENT: I am going to agree with you. 

    REP. PRESSLEY: So yes, you do support an exemption on tariffs for products that are essential for families for their babies?

    SEC. BESSENT: We are considering exemptions on E-4 items, which…

    REP. PRESSLEY: I’m sorry I have to reclaim my time. I’m reclaiming my time. 

    Mr. Chair. I am reclaiming my time. Give me my time back. I’m reclaiming my time.

    I just want a simple yes or no: do you support an exemption to tariffs on items that parents need to care for their kids? Because you all claim you’re pro-family.

    I cannot hear the words you say because I see the things that you do, every day. So clear it up.

    Yes or no. Do you support an exemption to tariffs on items that parents need to care for their babies? 

    SEC. BESSENT: It is under consideration. 

    REP. PRESSLEY: Great. Good.

    I don’t know what’s stopping an exemption from going into effect today, so do it now.

    In Donald Trump’s America, yesterday’s price is not today’s price. Costs are going up. Everyone is suffering, especially our families with young children.

    Mr. Secretary, I’m making an appeal to you on behalf of the people of this country. Please tell occupant Trump to reverse course and stop hurting America’s families.

    I yield back.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: AG Labrador Announces Victory in Lawsuit Opposing California’s Electric-Truck Mandates

    Source: US State of Idaho

    Home Newsroom AG Labrador Announces Victory in Lawsuit Opposing California’s Electric-Truck Mandates

    BOISE – Attorney General Raúl Labrador announced today that California has agreed to repeal its electric-truck mandates that reach well beyond California’s borders. Nebraska led a coalition of 17 states and the Nebraska Trucking Association in challenging a suite of California regulations called Advanced Clean Fleets in the Eastern District of California. Among other things, Advanced Clean Fleets would have required certain trucking companies to retire internal-combustion trucks and transition to more expensive and less efficient electric trucks. The rule targeted any fleet that operated in California regardless of where the fleet is headquartered. Given California’s large population and access to international ports, this rule would have had nationwide effects on the supply chain. In the settlement announced today, however, California has agreed not to enforce the rule and to outright repeal it.
    “California’s attempt to dictate trucking standards for the entire country was a blatant overreach that would have devastated industries far beyond its borders,” Attorney General Labrador said. “This is a win for Idaho’s truckers and for the families and businesses who rely on them. Our truckers should not be forced to comply with mandates dreamt up by regulators in Sacramento. I’m proud to have joined this successful coalition, and I will continue fighting for policies that protect Idaho’s economy and constitutional rights.” 
    As part of the settlement, California regulators pledged to commence rulemaking proceedings to formally scrub the rule from the books. California regulators also conceded that they cannot enforce California’s 2036 ban on the sale of internal-combustion trucks unless and until the ban receives a Clean Air Act preemption waiver from the U.S. Environmental Protection Agency. Previously, Attorney General Labrador joined a 24-state coalition led by Nebraska in successfully opposing California’s request for a waiver. In addition to Attorney General Labrador, attorneys general from the following states joined the lawsuit against California regulators: Alabama, Arkansas, Georgia, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, Oklahoma, South Carolina, Utah, West Virginia, and Wyoming. Also joining the lawsuit were the Nebraska Trucking Association and the Arizona State Legislature.
    Read the settlement here.

    MIL OSI USA News –

  • MIL-OSI USA: Shaheen, Colleagues Introduce Bill to Support New Businesses with Major Expansion of Startup Tax Deduction

    US Senate News:

    Source: United States Senator for New Hampshire Jeanne Shaheen
    (Washington, DC) – During the start of National Small Business Month, U.S. Senator Jeanne Shaheen (D-NH), a top member and former Chair of the U.S. Senate Committee on Small Business and Entrepreneurship, joined by U.S. Senators Jacky Rosen (D-NV) and Tammy Baldwin (D-WI), introduced the Tax Relief for New Businesses Act – legislation that would provide tax relief to entrepreneurs looking to start a small business and reduce barriers for startups. The bill would increase the startup tax deduction from $5,000 to $50,000 and allow businesses to write off more expenses to compensate for the increasing cost of starting a business. Currently, small business owners can only deduct up to $5,000 in startup costs in the first year, yet a recent survey found that they spend an average of $40,000 to get their businesses off the ground.
    “Small businesses are the lifeblood of the Granite State’s economy, but it’s getting more costly and difficult for local entrepreneurs to open up shop,” said Senator Shaheen. “Our commonsense Tax Relief for New Businesses Act would give entrepreneurs a helping hand up so they can succeed and fuel job growth.”
    The Tax Relief for New Businesses Act is also co-sponsored by U.S. Senators Chris Coons (D-DE), Elissa Slotkin (D-MI), Ron Wyden (D-OR), Richard Blumenthal (D-CT), Ruben Gallego (D-AZ), Amy Klobuchar (D-MN), Martin Heinrich (D-NM) and Angela Alsobrooks (D-MD).
    “Repeated research has demonstrated that new businesses – ‘startups’ – are a critical driver of economic growth, job creation, and opportunity expansion,” said John Dearie, President of Center for American Entrepreneurship. “But launching a new business costs money. And because startup costs are incurred long before the first dollar of revenue, those costs can be a major obstacle to new business formation. That’s why the Tax Relief for New Businesses Act is so important. The legislation is powerfully pro-entrepreneurship, pro-growth, and pro-job creation. CAE thanks Senators Jacky Rosen (D-NV), Tammy Baldwin (D-WI), and Jeanne Shaheen (D-NH) for their leadership and looks forward to working with them to ensure swift passage of the legislation.”
    “Starting a business is a vote of confidence in the future,” said Richard Trent, Executive Director of Main Street Alliance. “Men and women all across the country start businesses that help our communities thrive. Small businesses are connected to their communities, sponsoring little league teams, providing employment and creating a robust culture and economy. But one of the most difficult parts of starting a business is having the capital to do so. A lack of generational wealth, unfair lending practices and discrimination make this difficult for too many. The Tax Relief for New Businesses Act is a huge step in the right direction to level the playing field and jump start Main Streets all across America.”
    As a former small business owner and now a top member of the Small Business and Entrepreneurship Committee, Shaheen fights for New Hampshire’s—and America’s—small businesses. During her time as Chair of the committee, Shaheen focused on addressing some of the biggest challenges small business owners face, reporting key legislation out of committee that included critical improvements to the State Trade Expansion Program (STEP) and improved access to federal contracting opportunities for small businesses.
    In February, Shaheen introduced the bipartisan Small Business Technological Advancement Act which would help small business owners integrate digital tools into their businesses by clarifying that small businesses can utilize the Small Business Administration’s (SBA) 7(a) loan program to finance technology that supports daily operations, including inventory management, product delivery and accounting systems. Earlier this year, she introduced the bipartisan Helping Small Businesses THRIVE Act with Senator Bill Cassidy (R-LA) that would direct SBA to create a new program that helps small businesses lock in the cost of commodities, like gasoline or lumber, in order to protect against the future volatile price of energy and other expenses.

    MIL OSI USA News –

  • MIL-OSI USA: Cassidy, Republicans Celebrate Small Businesses Driving America into the Golden Age

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy
    WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Joni Ernst (R-IA), and a group of Senate Republicans introduced legislation declaring this week “National Small Business Week” to recognize the important role small businesses play in creating jobs and fueling the economy.
    “We need an economy which works for small business,” said Dr. Cassidy. “Small businesses create the majority of new jobs. That is President Trump’s goal, that is my goal.”
    “Main Street is roaring back under President Trump’s pro-growth policies that are ushering in a Golden Age,” said Senator Ernst. “This week, we celebrate the small businesses that mean so much more than the livelihoods they support and the jobs they create. These shops embody the American spirit and shape the culture of big cities and rural communities across America. I’m proud to recognize these entrepreneurs’ tremendous contributions and will continue to fight to ensure that they have a champion in Washington.”
    Senator Cassidy introduced the THRIVE Act to level the playing field for small businesses by directing the Small Business Administration to create a program that helps small businesses lock in the cost of commodities, like gasoline or lumber, in order to protect against the future volatile price of energy and other expenses.
    Cassidy and Ernst were joined by U.S. Senators Chuck Grassley (R-IA), Jon Husted (R-OH), James Lankford (R-OK), John Kennedy (R-LA), John Cornyn (R-TX), Susan Collins (R-ME), James Risch (R-ID), Ted Cruz (R-TX), Shelley Moore Capito (R-WV), Mitch McConnell (R-KY), Steve Daines (R-MT), Jim Justice (R-WV), Thom Tillis (R-NC), Mike Crapo (R-ID), Roger Marshall (R-KS), Tommy Tuberville (R-AL), Katie Britt (R-AL), Dan Sullivan (R-AK), Kevin Cramer (R-ND), John Boozman, (R-AK), Marsha Blackburn (R-TN), Josh Hawley (R-MO), John Barrasso (R-WY), John Curtis (R-UT), Jim Banks (R-IN), Deb Fischer (R-NE), Eric Schmitt (R-MO), Cynthia Lummis (R-WY), Todd Young (R-IN), John Hoeven (R-ND), Tim Scott (R-SC), Mike Rounds (R-SD), Lindsey Graham (R-SC), John Thune (R-SD), Cindy Hyde-Smith (R-MS), Rick Scott (R-FL), and Jerry Moran (R-KS), 
    “Small businesses are the backbone of Louisiana’s economy and create good jobs across our country,” said Senator Kennedy. “This National Small Business Week, I’m proud to recognize everything small businesses do for America and keep fighting to throw out bad regulations that hold our economy back.”
    “Small businesses are the backbone of Idaho’s economy,” said Senator Risch. “During National Small Business Week, I’m proud to recognize the hard-working entrepreneurs who employ our neighbors, give back to our communities, and make the Gem State a special place to live and grow.”
    “National Small Business Week holds a special place in my heart because I know all too well the pressures and joy that come with owning a business and signing the front of a paycheck,” said Senator Scott. “This week I join my colleagues in celebrating their innovation, resilience, and drive that not only creates jobs but fosters community and inspires entrepreneurship across America. As a former small business owner myself, I’m committed to supporting them and ensuring they have the resources they need to thrive and succeed.”
    “As the son of a small business owner, I understand how vital small businesses are to Indiana’s economy,” said Senator Young. “I’m proud to stand with Hoosier small business owners and will continue advocating for policies that help them thrive.”
    “We can’t do Made-in-America without Ohio’s hardworking small business owners, entrepreneurs and job creators,” said Senator Husted. “This week recognizes their work to fuel our economy and drive the country forward, and I’ll continue supporting pro-growth policies that make the American dream achievable.”
    “We know that small businesses drive America’s innovations and economic strength,” said Senator Grassley. “Here in Iowa, they make up 99.3 percent of all businesses, and nearly half of Iowa employees work for a small business. In marking this special week, our resolution recognizes the power of small businesses and honors the men and women who work hard to keep our communities vibrant.”
    “Small businesses are the backbone of Wyoming’s economy,” said Senator Barrasso. “To celebrate National Small Business week, we honor these job creators in Wyoming and across the country. Senate Republicans will continue to work with President Trump to roll back harmful regulations and taxes so America’s small businesses can continue to thrive.”
    “In West Virginia, small businesses are an essential part of our economy, making up more than 98% of the businesses in our state and employing nearly half of our workforce,” said Senator Capito. “During National Small Business Week, I am proud to join my colleagues in recognizing and celebrating the critical contributions small businesses, like the female-owned Dolly’s Diner in Princeton I visited recently, make in West Virginia and across our country.”
    “By designating this week as National Small Business Week, we honor the small business owners who embody the entrepreneurial spirit that makes Texas the economic powerhouse it is today,” said Senator Cornyn.
    “Maine’s small businesses are the bedrock of Maine’s local economies and drive job creation throughout our state,” said Senator Collins. “As Chair of the Senate Appropriations Committee, I remain committed to championing small businesses, the job creating engines that power our nation’s economy.”
    “Fighting for hardworking families, small businesses, and local Main Streets across Alabama has always been a top priority for me,” said Senator Britt. “Small businesses are the backbone of our nation’s economy, and I’m proud to recognize our incredible job creators and entrepreneurs this Small Business Week. I remain steadfastly committed to advancing policies that slash burdensome red tape, provide access to opportunities and resources, and unleash American ingenuity.”
    “Small businesses are at the heart of Tennessee’s economy and a cornerstone of our communities,” said Senator Blackburn. “As we mark National Small Business Week, I’m honored to celebrate these hardworking entrepreneurs. Under President Trump’s new Golden Age for America, we are seeing small businesses start to thrive again. I’ll keep fighting in the Senate to stop the largest tax hike in history and to advance pro-growth policies that cut red tape, lower taxes, and foster an environment where small businesses across America and Tennessee can continue to grow and prosper.”
    “This resolution reaffirms our commitment to supporting entrepreneurs and small business owners in the Cowboy State who demonstrate incredible resilience and determination,” said Senator Lummis. “As they pursue their American dream, they sacrifice countless hours through hard work to overcome challenges and build something meaningful for their families and communities.”
    “Alaska’s small businesses are the cornerstone of our economy, keeping our communities strong and economically vibrant,” said Senator Sullivan. “Our local businesses are the first to give back—contributing to local causes, hiring people who live here, and listening to the needs of the people in our communities. I’m glad to join Senator Ernst in introducing a resolution that acknowledges the incredible work done by small businesses across the country to invest in their communities. I look forward to continuing to work with Alaska’s small businesses to support our crucial, innovative entrepreneurs.”
    “Small businesses are a driving force of North Dakota’s economy, fueling growth, creating jobs and supporting strong communities,” said Senator Hoeven. “Designating this week as National Small Business Week highlights the dedication and impact of entrepreneurs and small business owners both in our state and across the country.”
    “Small businesses employ over 65 percent of Montana’s workforce and represent 99 percent of all businesses in Montana, which boosts our local economies and creates new jobs in our communities,” said Senator Daines. “I’m proud to join my colleagues in celebrating National Small Business Week to recognize all the entrepreneurs and business owners whose innovation and hard work helps keep both Montana and our country a great place to live, work, and raise a family.”
     “I am proud to join my colleagues in celebrating National Small Business Week. Small businesses are the backbone of America, and thanks to the leadership of President Trump our nation’s entrepreneurs are finally empowered again with the resources and support they need to see their dreams come true,” said Senator Scott. “I’ve run businesses small and large, and I know the hard work these folks put in day-in and day-out to keep their doors open and employees on payroll. This week is a time to recognize these hardworking Americans who support our economy and create jobs in their communities as they live their American dream.”
    “Small businesses power our economy and represent core American values like hard work, taking risks and the pursuit of success,” said Senator Boozman. “I am pleased to join my colleagues in celebrating National Small Business week to applaud their local and regional investments that create jobs and sustain communities across Arkansas as well as nationwide. These entrepreneurs deserve our recognition and total support.”
    “Small businesses are the backbone of communities across America, and they represent the heart of Mississippi’s economy and way of life,” said Senator Hyde-Smith. “National Small Business Week is a time to celebrate the American dream, the drive of our entrepreneurs, and the ingenuity that powers growth and opportunity.  I’m proud to support this resolution and honor the small businesses that keep Mississippi strong and our nation thriving.”
    “As a former small business owner, I fully understand the challenges that small businesses face,” said Senator Marshall. “That’s why I remain committed to prioritizing Main Street over Wall Street by cutting red tape and taxes, opening new markets, and ensuring small businesses have the capital they need to grow and thrive. This week, we proudly recognize the lifeblood of our economy by honoring the remarkable contributions of small businesses and officially designating this week as National Small Business Week.”
    “Small businesses are the lifeblood of Idaho’s economy,” said Senator Crapo. “Idaho’s 200,131 small businesses have an outsized impact–making up 99.2 percent of businesses in the state and employing 56.6 percent of all Idaho employees.  I applaud the owners and employees who roll up their sleeves every day, work hard and power our economy.”

    MIL OSI USA News –

  • MIL-OSI USA: Reps. Vasquez and Zinke Launch Bipartisan Public Lands Caucus to Champion Conservation and Access

    Source: US Representative Gabe Vasquez’s (NM-02)

    WASHINGTON, D.C. – Today, U.S. Representatives Gabe Vasquez (D-NM-02) and Ryan Zinke (R-MT-01) announced the launch of the bipartisan Public Lands Caucus, a bipartisan congressional coalition focused on conserving America’s public lands and expanding access for all Americans. The caucus will build upon the trusted working relationship between Vasquez and Zinke, forged over the past two years, partnering on conservation legislation, along with the momentum of a new Congress and a new generation of Western lawmakers to bring a new voice to the conversation around public lands.

     

    The Public Lands Caucus is founded on the belief that public lands are “for the benefit and enjoyment of the people.” It will bring lawmakers from both sides of the aisle to advance practical, consensus-driven public lands policy that conserves natural resources while supporting recreation, local economies, and public access. Caucus members are committed to bridging ideological divides and advancing pragmatic solutions to protect and manage public lands.

     

    WATCH: Public Lands Caucus Press Conference

     

    “Public lands are where I learned to fish, hunt, and connect with my family and culture—and those experiences shaped who I am,” said Rep. Gabe Vasquez (D-NM-02). “These lands don’t belong to one party or one group of people; they belong to all of us. The Public Lands Caucus is about protecting that birthright—bringing Democrats and Republicans together to preserve access, defend conservation, and invest in the outdoor economy that powers rural communities like mine in southern New Mexico. This is personal for me, and I’m proud to lead this bipartisan effort to keep our public lands in public hands.”

     

    “I follow the Theodore Roosevelt motto that public lands are ‘for the benefit and enjoyment of the people,’ and that means making sure we both conserve and manage those lands to ensure public access for the next generation,” said Rep. Ryan Zinke (R-MT-02). “Public lands aren’t red or blue issues, it’s red white and blue. The bipartisan Public Lands Caucus brings together lawmakers who don’t agree on much, but we agree on and are ready to work together to promote policies that advance conservation and public access. I look forward to working with Co-Chair Vasquez, the vice chairs, and all the members of this caucus so future generations can enjoy the same opportunities to hunt, hike, fish, make a living and enjoy our uniquely American heritage.”

     

    “We should be focusing on expanding public access to federal lands, not auctioning them off. And we should be investing in our National Parks System and National Wildlife Refuges, not making it harder for Americans to visit these special places,” said Rep. Debbie Dingell (D-MI-06). I’m proud to be Vice-Chair of the bipartisan Public Lands Caucus because conservation has historically been, and should continue to be, a priority regardless of party. I look forward to working with my colleagues on both sides of the aisle to protect our precious natural resources, federal lands, and beloved species.” 

     

    “Idahoans live in Idaho because we love our public lands,” said Rep. Mike Simpson (R-ID-02). “This trend is common across the West, where public lands are a part of our daily lives. As a lifelong Idahoan and Chairman of the House Interior and Environment Appropriations Subcommittee, I remain committed to preserving access to our public lands and defending our way of life. Being named Vice Chair of the Public Lands Caucus is an honor, and I look forward to working with my colleagues to ensure future generations can enjoy the same benefits that we do today. I’m thankful to Rep. Zinke for his leadership here.”

     

    “As someone born and raised in the Coachella Valley, I know how sacred our public lands are. Places like Joshua Tree and the new Chuckwalla National Monument are more than landscapes—they’re part of our identity, history, and culture,” said Rep. Raul Ruiz (D-CA-25) Conserving public lands means protecting cultural heritage, preserving critical ecosystems, and expanding access to nature’s healing power, especially for underserved communities. I’ll continue fighting to ensure every family—no matter where they live—can experience the beauty, health, and enjoyment that public lands offer.”

     

    “Public land access is integral to Montana,” said Rep. Troy Downing (R-MT-02). “Montanans rely on the Treasure State’s more than 30 million acres of public lands to hunt, fish, recreate, graze their livestock, and so much more. I applaud Co-Chairs Zinke and Vasquez for their efforts and look forward to working with my colleagues to find common sense solutions that preserve my constituents’ access to this fundamentally American resource.”

     

    “As a representative of Coastal Virginia, I know how vital our public lands and waters are to our economy, our culture, and our quality of life – from supporting tourism and outdoor recreation to sustaining jobs and protecting natural habitats,” said Rep. Jen Kiggans (R-VA-02). “I’m proud to join the bipartisan Public Lands Caucus to bring a balanced, commonsense approach to protecting these resources. From our shorelines to our forests, we must ensure that future generations can enjoy and benefit from healthy and accessible public lands across the country for years to come.”

     

    Caucus Leadership

    Co-Chairs

    • Rep. Gabe Vasquez (D-NM-02)
    • Rep. Ryan Zinke (R-MT-01)

     

    Vice Chairs

    • Rep. Debbie Dingell (D-MI-06)
    • Rep. Mike Simpson (R-ID-02)

     

    Members Include

    • Rep. Raul Ruiz (D-CA-25)
    • Rep. Chuck Edwards (R-NC-11)
    • Rep Joe Neguse (D-CO-02)
    • Rep. Jen Kiggans (R-VA-02)
    • Rep. Emily Randall (D-WA-06)
    • Rep. Troy Downing (R-MT-01)
    • Rep. Steven Horsford (D-NV-04)
    • Rep. Dan Newhouse (R-WA-04)
    • Rep. Susie Lee (D-NV-03)
    • Rep. Juan Ciscomani (R-AZ-06)

     

    Organizational Support

     

    “On both sides of the aisle, Americans cherish our public lands,” said Joel Pedersen, president and CEO of the Theodore Roosevelt Conservation Partnership. “From the Northern Rockies of Montana to the Gila Mountains of New Mexico, these lands and waters provide invaluable opportunities to millions of hunters and anglers. We join our nation’s sportsmen and women in thanking Representatives Zinke and Vasquez for their leadership in forming the bipartisan Public Lands Caucus which will continue to advance America’s outdoor legacy.”

     

    Whitney Potter Schwartz, Senior Vice President, Outdoor Recreation Roundtable: “The creation of the Public Lands Caucus is a significant and welcome step forward in protecting and expanding access to our public lands and waters that power America’s $1.2 trillion outdoor recreation economy and enrich the lives of millions of Americans. Keeping public lands public is a business imperative. There couldn’t be a more important time to stand up for America’s best return on investment and keep public land selloff out of reconciliation. ORR thanks Representatives Gabe Vasquez and Ryan Zinke for their leadership and all the bipartisan members of the Caucus who have come together to champion public lands access, stewardship, and infrastructure investments. We look forward to working with the Caucus to ensure that public lands remain public and continue to be a foundation for outdoor experiences, local economies, and healthy communities for generations to come.” 

     

    Phil Ingrassia, President of the national RV Dealers Association (RVDA): “Public lands are essential to the emotional and economic well-being of our nation. RVDA applauds the creation of the Public Lands Caucus and its commitment to enhancing access and expanding the infrastructure that supports millions of Americans who enjoy these shared spaces.” 

     

    Julie Sutton, Senior Director Government Affairs, VF Corporation: VF Corporationand our portfolio of iconic outdoor brands applaud Representatives Ryan Zinke (R-MT) and Gabe Vasquez (D-NM) for their bipartisan leadership in establishing the Public Lands Caucus. This caucus has an opportunity to improve management of public lands, protect and conserve our natural resources and maintain access for everyone to enjoy the outdoors. We thank you for your commitment to our public lands. 

     

    Myke Bybee, Senior Director of Federal Relations, Trust for Public Land: “Trust for Public Land strongly commends Representatives Ryan Zinke (R-MT) and Gabe Vasquez (D-NM) for their bipartisan leadership in launching the Public Lands Caucus and introducing legislation — The Public Lands in Public Hands Act — which affirms the importance of our shared national landscapes. With Congress and the Administration considering proposals to sell off federal land, and as Americans visit public lands in record numbers—to hike, hunt, and connect with nature—their leadership could not come at a more critical time.” 

     

    Jenn Dice, President & CEO, PeopleForBikes: “Public lands are an important part of the American experience and critical to the outdoor recreation economy, including the bicycle industry. We applaud the leaders of the Public Lands Caucus who are committed to protecting, managing, and staffing our most treasured natural spaces that are a source of our national pride.” 

     

    Caryn Short, America Outdoors: “America Outdoors applauds Representatives Vasquez and Zinke for their leadership in launching the bipartisan Public Lands Caucus. Continued access to our public lands is vital to the health of the outfitting industry, rural economies, and the millions of Americans who rely on these landscapes for connection, livelihood, and adventure.” 

     

    Rachel Franchina, Executive Director, Society of Outdoor Recreation Professionals: “Public lands are part of the shared national identify of Americans. They are treasured places – both close to home and in iconic protected areas – for people to spend time with family and friends, recharge themselves and reconnect with nature. The Society of Outdoor Recreation Professionals supports Representatives Ryan Zinke (R-MT) and Gabe Vasquez (D-NM)’s Bipartisan Public Lands Caucus. High-quality experiences on public lands are something the vast majority of American value and their commitment to ensuring access to our shared heritage is more important now than ever.” 

     

    Mary Ellen Sprenkel, President & CEO, The Corps Network: “Americans love our public lands. Hundreds of millions of people visit our national parks, forests, and grasslands every year, helping drive local economies. The Corps Network proudly represents 150 Corps programs across the country that work with resource management agencies on critical maintenance projects that keep our public lands safe and open for all to enjoy. Through service on public lands, thousands of Corps participants every year gain invaluable work experience for the modern workforce. We appreciate the goal of the Public Lands Caucus to ensure Americans have access to the Great Outdoors.” 

     

    Julie M. Broadway, President, American Horse Council & American Horse Council Foundation: “According to American Horse Council’s latest economic impact study, 39 million U.S. households include a horse enthusiast, with recreational trail riders representing the largest segment of the equine industry — underscoring the critical need for access to public lands. Federal data supports this: the Bureau of Land Management estimates three million annual horseback riding visitors, along with 46,000 participating in pack use; the U.S. Forest Service cites 206,000 horseback riders, and the National Park Service reports 1.6 million. Conserving public lands, supporting local economies, and ensuring access for all Americans is essential to the equine community, and we strongly applaud the creation of this congressional caucus as a step toward protecting these shared resources.” 

     

    Dan Mahoney, Government Affairs Manager, American Prairie: “American Prairie applauds Representatives Ryan Zinke and Gabe Vasquez for launching this bipartisan caucus to protect our country’s public lands. These lands are a cherished piece of America’s heritage, and one that American Prairie is committed to conserving and expanding access to in Montana. This new caucus’s dedication to the same is worth celebrating and so are the members of Congress leading the way to do so.” 

     

    Jordan Schreiber, Director of Government Relations, The Wilderness Society: “The Wilderness Society celebrates this bipartisan caucus’s commitment to protecting public lands and access to them, which starts with keeping them in public hands. We look forward to working with members to ensure that any future efforts to sell off these national treasures to the highest bidder are defeated.” 

     

    Tom Cors, Senior Director of Legislative Affairs, The Nature Conservancy: “Public lands need to be kept in public hands. They are not just picturesque selfie backdrops. People across America depend on them for jobs, to recharge their internal batteries, and to clean our water and air. Also, wildlife depend on them for food and shelter. Through this caucus, Representatives Ryan Zinke and Gabe Vasquez are ensuring our public lands will last forever, giving life to us all.” 
     

    David Feinman, Vice President of Government Affairs, Conservation Lands Foundation: “Conservation Lands Foundation applauds Representatives Gabe Vasquez and Ryan Zinke for working across the aisle to launch the bipartisan Public Lands Caucus, which will hold Congress accountable to protect access to America’s public lands and ensure they remain in public hands. Our nation’s public lands contain remarkable and irreplaceable ecological, historical and cultural resources that reflect thousands of years of human connection to lands and waters, and we look forward to the Public Lands Caucus reflecting the overwhelming bipartisan support across America for keeping public lands in public hands.” 

     

    Maite Arce, President and CEO, Hispanic Access Foundation: “Hispanic Access Foundation applauds the launch of the bipartisan Public Lands Caucus and the leadership of Representatives Vasquez and Zinke. Public lands are essential to our way of life—they support local economies, provide space for recreation and reflection, and contribute to the health and well-being of communities across the country. This caucus is an important step toward protecting these treasured places and ensuring they remain accessible and well-managed for future generations.” 

     

    Chris Wood, President and CEO, Trout Unlimited: “Public lands are the backyard of the little guy, demonstrating our commitment to leaving the world a better place for our children than the one we inherited from our parents. On behalf of Trout Unlimited members across the nation, I thank Congressmen Zinke and Vasquez and the members of the newly minted bipartisan Public Lands Caucus for their leadership upholding our legacy of public lands. Preventing large-scale transfer or sale of federal public lands helps to maintain access to some of the best places to fish and hunt on the planet. We look forward to working with the caucus to keep it that way.” 

     

    Athan Manuel, Director of Sierra Club’s Lands Protection Program: “Our public lands are part of what makes this country great. They preserve critical habitat, provide our communities with clean air and water, and exploring these places has been a rite of passage for countless generations of Americans. It is more critical than ever that these treasured landscapes remain in the hands of we the people. The Public Lands Caucus will play an important – and bipartisan – role in ensuring Congress does its part to keep it that way.” 

     

    Tom Kiernan, CEO, American Rivers: Public lands are the source of clean drinking water for millions of Americans. The rivers that flow across our national parks, forests, and rangelands provide recreation and awesome scenic beauty to our country.  We are excited to continue working with Congress to support the protection of these lands and rivers on behalf of all Americans. Thank you to Representatives Vasquez and Zinke for launching this caucus. 

     

    Joel Pedersen, President and CEO, Theodore Roosevelt Conservation Partnership: “On both sides of the aisle, Americans cherish our public lands. From the Northern Rockies of Montana to the Gila Mountains of New Mexico, these lands and waters provide invaluable opportunities to millions of hunters and anglers. We join our nation’s sportsmen and women in thanking Representatives Zinke and Vasquez for their leadership in forming the bipartisan Public Lands Caucus which will continue to advance America’s outdoor legacy.” 

     

    Lesli Allison, Chief Executive Officer, Western Landowners Alliance: “The Western Landowners Alliance applauds the formation of the bipartisan Public Lands Caucus to protect our public lands and thanks Representatives Vazquez and Zinke for their leadership on this issue. Care for our public lands is a priority across party lines and fence lines in the West. Western Landowners Alliance members steward tens of millions of acres of private and public land, and recognize the challenges facing federal land management and budgets. We are also acutely aware of the nation’s real housing deficit. But disposal of federal land is not a practical solution to either problem.”  

     

    Paul Hendricks, Executive Director, The Conservation Alliance: “Conservation has been supported by folks from both political parties and nearly all demographics for generations – America’s best and most durable public lands protections have come from members of Congress working together across party lines. Yet many of those places are now at risk of losing those protections, which would be detrimental to our nation’s economy. Safeguarding nature creates jobs, supports local economies as well as the $1.2 trillion outdoor recreation economy, and ensures these benefits exist for future generations. The Conservation Alliance and our 200 business members are excited to see the launch of the Public Lands Caucus and thank Representative Vasquez and Representative Zinke for taking the lead.” 

     

    Devin O’Dea, Western Policy & Conservation Manager, Backcountry Hunters & Anglers: “Backcountry Hunters & Anglers strongly supports the creation of the Public Lands Caucus and thanks Representatives Vasquez and Zinke for bringing together a bipartisan force to defend against ongoing threats to sell or transfer our wild public lands. Our public lands define who we are as Americans — places where anyone, regardless of background, can hunt, fish, camp or explore. The Public Lands Caucus is a crucial step in ensuring our wild public lands, waters, and wildlife endure.” 

     

    Ariel Wiegard, Vice President of Government Affairs, Pheasants Forever and Quail Forever: “America’s upland hunters and grassland advocates applaud today’s launch of the bipartisan Public Lands Caucus, and we stand ready to work with Reps. Vasquez, Zinke, and the other Caucus members to advance public land conservation policies, increase and improve habitat and access, and energize and engage the upland conservation community. America’s grassland and sagebrush shrub-steppe ecosystems are among the most at-risk environments in the world, resulting in the decline of our most cherished grassland species and fewer places to hunt on high-quality habitat—we are confident this Caucus will help ensure our treasured public lands deliver the promise of more wildlife and more hunters, alongside other natural resource and quality of life benefits, to the American people.” 

     

    Jason Burckhalter, Co-CEO, National Wild Turkey Federation: “The NWTF extends deep gratitude to Congressmen Vasquez and Zinke for their leadership in founding the bipartisan Public Lands Caucus. This crucial effort bolsters the unique American public trust, ensuring our public lands—vital habitats for wildlife, cornerstones of our hunting heritage, and cherished spaces for outdoor recreation—remain a shared resource, held in trust for all citizens, preserving their accessibility and stewardship for future generations.”  

     

    Louis Geltman, Vice President for Policy and Government Relations, Outdoor Alliance: “Outdoor Alliance is grateful to Representatives Gabe Vasquez and Ryan Zinke for their leadership in creating the Public Lands Caucus. Public lands need champions, and we look forward to working with members of the caucus to protect public lands and waters and outdoor recreation experiences. Outdoor recreation is a bipartisan value and benefits the millions of Americans who get outside each year. We look forward to building momentum for the caucus’s work to support outdoor recreation, public lands and waters, and conservation.” 

     

    Caroline Gleich, professional athlete, advocate and former candidate for U.S. in Utah: “As someone who has spent my life exploring and advocating for public lands, I’m thrilled to support the launch of the Public Lands Caucus. These lands are more than lines on a map—they’re where we connect with nature, with each other, and with something larger than ourselves. I applaud Representative Vasquez for his leadership in creating a space in Congress to prioritize conservation, recreation, and access for all. At a time when public lands are under threat from extractive industries and political indifference, this caucus sends a clear message: our lands are not for sale. They belong to the people—and we’re here to protect them.” 

     

    America Fitzpatrick, Conservation Program Director, League of Conservation Voters: “We applaud the establishment of the bipartisan Public Lands Caucus led by Representatives Vasquez and Zinke. The bipartisan nature of this caucus underscores how public lands unite us. Public lands across the country provide countless recreational, cultural, health, and economic opportunities. Proposals like the dark-of-night amendment to sell-off public lands in Utah and Nevada during last night’s House Natural Resources Committee markup have no place in the Budget Reconciliation process and we look forward to working with the caucus to ensure our lands and waters are protected for generations to come.” 

     

    Kellis Moss, Managing Director of Federal Affairs for Ducks Unlimited: “Public lands make hunting, fishing, and other outdoor recreation activities accessible for millions of Americans. Some of our most critical conservation programs, such as NAWCA, invest in habitat on public lands. We’re glad to see Congress prioritize conserving America’s natural places for the next generation of outdoorsmen and women, and we’re happy to support the Public Lands Caucus in this effort.” 

     

    ###

    MIL OSI USA News –

  • MIL-OSI Russia: Vice Premier of the State Council of China Meets with Chairman of the Management Committee of the Abu Dhabi Sovereign Wealth Fund

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    Source: People’s Republic of China – State Council News

    BEIJING, May 7 (Xinhua) — Chinese Vice Premier He Lifeng met with Majid Al Romaithi, chairman of the governing committee of Abu Dhabi Investment Authority (ADIA), at the Great Hall of the People in Beijing on Wednesday.

    He Lifeng, also a member of the Politburo of the CPC Central Committee, said that since the beginning of this year, China’s economy has made a solid start, high-quality development has made solid progress, and public confidence and expectations have continued to improve.

    The Vice Premier stressed that China will continue to comprehensively deepen reforms and promote high-level opening-up in various fields such as the financial sector. China welcomes foreign financial institutions including ADIA and long-term investors to do business in China and seize the development opportunities, He Lifeng added.

    Majid Al Romaithi, for his part, said that ADIA is optimistic about China’s economic prospects and looks forward to cooperation and exchanges with China in various fields. –0–

    MIL OSI Russia News –

  • MIL-OSI USA: Huizenga Introduces “Made in America Motors Act” to Make Car Interest Tax Deductible

    Source: United States House of Representatives – Congressman Bill Huizenga (MI-02)

    Today, Congressman Bill Huizenga (R-MI) announced the introduction of H.R. 3191, the Made in America Motors Act. This bill establishes a new federal tax deduction on auto loan interest for American-made cars. The Made in America Motors Act is based on a major policy priority proposed by President Trump in the run up to the 2024 election. Car ownership is essential for many American families, especially those living in rural or suburban areas. The Made in America Motors Act directly lowers the cost of financing a vehicle—often a household’s second-biggest expense after housing. This tax deduction can save taxpayers hundreds of dollars each year, regardless of whether they use the standard deduction or itemize.

    “The Made in America Motors Act is a win for American taxpayers, autoworkers, and Michigan,” said Congressman Bill Huizenga. “Making interest on car loans tax deductible was a key campaign promise made by President Trump. The Made in America Motors Act delivers on this promise by giving individuals and families a financial incentive to buy American, which in turn supports good-paying automotive jobs in Michigan and across the nation.”

    “As America’s top auto producer, we’re grateful to work with Congressman Huizenga on policies that grow the American auto industry. The Made in America Motors Act will help Americans purchase a car and gain the freedom to move, while supporting American auto workers, “ said Ford Motor Company.

    Specifically, the Made in America Motors Act would:

    • Create a new above-the-line tax deduction of up to $2500 annually for interest paid on auto loans
    • Make the deduction available to taxpayers, including those who take the standard deduction
    • Apply only to vehicles with final assembly in the United States

    The full text of the Made in America Motors Act is available here.

    MIL OSI USA News –

  • MIL-OSI USA: Reconciliation Recommendations of the House Committee on Financial Services

    Source: US Congressional Budget Office

    Legislation Summary

    H. Con. Res. 14, the Concurrent Resolution on the Budget for Fiscal Year 2025, instructed the House Committee on Financial Services to recommend legislative changes that would decrease deficits by at least $1 billion over the 2025-2034 period. As part of the reconciliation process, the House Committee on Financial Services approved legislation on April 30, 2025, that would reduce deficits.

    Estimated Federal Cost

    The reconciliation recommendations of the House Committee on Financial Services would, on net, decrease deficits by $5.2 billion over the 2025-2034 period. The estimated budgetary effects of the legislation are shown in Table 1. The costs of the legislation fall within budget functions 370 (commerce and housing credit) and 600 (income security).

    Table 1.

    Estimated Budgetary Effects of Reconciliation Recommendations Title V, House Committee on Financial Services, as Ordered Reported on April 30, 2025
     

    By Fiscal Year, Millions of Dollars

    		    
     

    2025

    2026

    2027

    2028

    2029

    2030

    2031

    2032

    2033

    2034

    2025-2029

    2025-2034
     

    Decreases in Direct Spending

    		    

    Budget Authority

    -138

    -527

    -863

    -889

    -933

    -978

    -1,026

    -1,109

    -1,178

    -1,219

    -3,350

    -8,860

    Estimated Outlays

    -16

    -352

    -800

    -926

    -948

    -973

    -1,013

    -1,090

    -1,160

    -1,200

    -3,042

    -8,478
     

    Increases or Decreases (-) in Revenues

    		    

    Estimated Revenues

    0

    -473

    -724

    -720

    -752

    1,081

    -410

    -427

    -443

    -455

    -2,669

    -3,323
     

    Net Increase or Decrease (-) in the Deficit

    From Changes in Direct Spending and Revenues

    		    

    Effect on the Deficit

    -16

    121

    -76

    -206

    -196

    -2,054

    -603

    -663

    -717

    -745

    -373

    -5,155

    Basis of Estimate

    For this estimate, CBO assumes that the legislation will be enacted in summer 2025. CBO’s estimates are relative to its January 2025 baseline and cover the period from 2025 through 2034.

    Direct Spending and Revenues

    CBO estimates that enacting the bill would decrease direct spending by $8.5 billion and decrease revenues by $3.3 billion; the deficit would decrease by $5.2 billion over the 2025‑2034 period (see Table 2).

    Green and Resilient Retrofit Program for Multifamily Family Housing

    Section 50001 would rescind the unobligated balances of the Department of Housing and Urban Development’s Green and Resilient Retrofit Program. Using information from the Department of Housing and Urban Development, CBO estimates that enacting the rescission would decrease direct spending by $138 million over the 2025-2034 period.

    Public Company Accounting Oversight Board

    Section 50002 would transfer the authorities of the Public Company Accounting Oversight Board (PCAOB) to the Securities and Exchange Commission (SEC) no later than one year after enactment. At the time of that transfer, the SEC would not be permitted to collect and spend accounting support fees authorized under the Sarbanes-Oxley Act of 2002 that the PCAOB currently collects. Those fees, which fund the board’s activities, are treated as revenues and are available to be spent without further appropriation.

    CBO expects that the board’s authorities would be transferred to the SEC around the end of fiscal year 2026 and that, starting in 2027, accounting support fees would no longer be collected and spent. CBO estimates that eliminating the authority to collect the fees would decrease direct spending by $3.2 billion over the 2027-2034 period.

    Eliminating the fee authority also would reduce collections of fees by $3.3 billion. However, reducing such fees tends to increase taxable income for workers and businesses, leading to increased collections of income and payroll taxes. As a result, CBO expects that the reduction in fee collections would be partially offset by increases in tax receipts of about 25 percent of the gross fee reduction each year. CBO estimates that, on net, revenues would decrease by $2.4 billion over the 2027-2034 period.

    Although CBO anticipates that the SEC would collect fees of similar magnitude to fund those activities, the collection and spending of fees imposed by the SEC are contingent on annual appropriations providing that authority to the agency. CBO has not reviewed this legislation for effects on spending subject to appropriation, so any costs for the SEC to implement the legislation are not included in this estimate.

    Bureau of Consumer Financial Protection

    Section 50003 would decrease the maximum amount that the Consumer Financial Protection Bureau (CFPB) may request from the Federal Reserve each year to cover operating expenses. Under current law, the CFPB may request a transfer of up to 12 percent of the Federal Reserve’s operating expenses from 2009, adjusted for inflation each year beginning in 2013. The provision would reduce the cap to 5 percent of the Federal Reserve’s operating expenses in 2009, adjusted for inflation each year beginning in 2025.

    CBO expects that the new cap would take effect at the beginning of 2026 and that the CFPB will have already received its final quarterly funding from the Federal Reserve for 2025. CBO estimates that enacting the provision would reduce transfers from the Federal Reserve by about $4.2 billion and reduce direct spending by $3.9 billion over the 2026-2034 period.

    The Federal Reserve System transmits its net income to the Treasury as remittances, which are recorded as revenues. Transfers to the CFPB reduce those remittances but are recorded as other miscellaneous receipts in the budget; those two revenue streams net to zero over the 2025-2034 period. Changes in costs for the Federal Reserve banks have historically resulted in changes to remittances during the same year. However, since fiscal year 2023, the central bank has recorded a deferred asset to account for accrued net losses from expenses in excess of income. As a result, remittances have been largely suspended. In CBO’s projections, remittances from the Federal Reserve will generally be suspended until 2030, and most of the changes in costs incurred by the system during that time will not be recorded as a change in remittances until they resume.

    Consumer Financial Civil Penalty Fund

    Section 50004 would prohibit the CFPB from spending amounts in the Civil Penalty Fund for any purpose other than to pay victims of violations of consumer financial law for which penalties have been imposed. Under current law, the CFPB deposits penalties collected from judicial or administrative actions into the Civil Penalty Fund; in addition to paying victims of violations, the CFPB uses those amounts for consumer education and financial literacy programs.

    Under current rules, the CFPB may use amounts associated with one penalty to pay victims associated with another penalty. This provision would effectively prohibit that practice and also would bar the CFPB from spending amounts on consumer education or financial literacy programs. Based on an analysis of the amounts returned to the fund in recent years and using other information from the CFPB, CBO expects that enacting this provision would reduce direct spending by $9 million over the 2025-2034 period.

    Financial Research Fund

    Section 50005 wouldcap assessments collected by the Office of Financial Research (OFR) and deposited into the Financial Research Fund at a three-year moving average of the expenses of the Financial Stability Oversight Council (FSOC). Under current law, the OFR collects assessments from large financial institutions to fund its operations and the operations of the FSOC. Those assessments are recorded as revenues and are available to be spent without future appropriation. CBO estimates that enacting the provision would decrease direct spending on OFR and FSOC activities by $1.2 billion.

    Capping assessments also would reduce revenues by $1.2 billion. However, reducing such fees tends to increase taxable income for workers and businesses, leading to increased collections of income and payroll taxes. As a result, CBO expects that the reduction in fee collections would be partially offset by increases in tax receipts of about 25 percent of the gross fee reduction each year. On net, CBO estimates that revenues would decrease by $906 million under this provision.

    Pay-As-You-Go Considerations

    The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays and revenues that are subject to those pay-as-you-go procedures are shown in Chief, Finance, Housing, and Education Cost Estimates Unit

    Joshua Shakin
    Chief, Revenue Estimating Unit

    Kathleen FitzGerald
    Chief, Public and Private Mandates Unit

    Christina Hawley Anthony
    Deputy Director of Budget Analysis

    H. Samuel Papenfuss 
    Deputy Director of Budget Analysis

    Chad Chirico 
    Director of Budget Analysis

    Phillip L. Swagel

    Director, Congressional Budget Office

    [Table 2 is on the next page.]

    MIL OSI USA News –

  • MIL-OSI USA: Capito Urges Administration to Expedite Review Process for Critical Broadband Funding

    US Senate News:

    Source: United States Senator for West Virginia Shelley Moore Capito
    WASHINGTON, D.C. – U.S. Senator Shelley Moore Capito (R-W.Va.), a member of the Senate Commerce, Science, and Transportation Committee, sent a letter to U.S. Secretary of Commerce Howard Lutnick asking him to expedite the review and release of updated guidance for the Broadband Equity, Access, and Deployment (BEAD) program and urged that West Virginia not have to redo significant portions of their application.
    The BEAD program, which was created through the Infrastructure Investment and Jobs Act (IIJA) that Senator Capito helped craft, is a federal grant program that aims to get all Americans online by funding partnerships between states or territories, communities, and stakeholders to build infrastructure where we need it to and increase adoption of high-speed internet. In June 2023, Senator Capito announced that West Virginia would receive a significant portion of this funding.
    “I urge you to expedite not only the review and release of updated guidance, but the program as a whole. West Virginians have waited long enough, and I hope with your leadership they will soon have broadband access and this will be President Trump and your greatest accomplishment for rural America,” Senator Capito wrote.
    The full letter can be found HERE or below:
    Dear Secretary Lutnick,
    As we have discussed, one of my top priorities in the Senate has been to get all of West Virginia connected with quality broadband service. The opportunity to get the more than 100,000 unserved locations in West Virginia broadband access is finally here through the Broadband Equity, Access, and Deployment (BEAD) program. The Biden Administration took years and years and burdened states and internet service providers (ISPs) with unnecessary mandates like labor requirements, climate change provisions, and some cumbersome financial requirements and did not connect a single location through BEAD. You can succeed where the previous administration failed and deliver this service quickly and efficiently to millions of Americans primarily in rural areas. 
    West Virginia has been allocated $1.2 billion to connect the state. The BEAD statute specifically says it is to be a technology neutral program. Some states may prefer fiber, others fixed wireless, and others satellite. Whatever technology or combination of technologies works best for the state and serves the most people while staying within the allocated funding amount should move forward. 
    When the BEAD program review was initiated on March 5, my state was 6 weeks away from completing the arduous application process after so many steps including a completed fair project selection process. Removing much of the red-tape from the program in a timely manner, so that my state and all others could move forward even faster, is an ideal outcome. 
    As we have discussed, I am concerned that West Virginia may be told to move back from the 1-yard line to the 40-yard line after the review concludes. Many of the changes that should be made to the program can be made quickly, but as an example, reopening the subgrantee application process for ISPs could delay connecting rural Americans for another year. I also am concerned that an arbitrary one-size-fits-all cost cap could be imposed for each connection. West Virginia is the Mountain State, so connecting us may be inherently more expensive than most every other state. In addition, certain technologies are not feasible in many areas not only due to our challenging topography but also because 78 percent of the state is forested.
    Like you, I am opposed to outlandish costs for a single connection but those decisions should be made with a more tailored approach by the states in consultation with the National Telecommunications and Information Administration. My state is committed to achieving the goals of the program with the utmost efficiency. 
    I urge you to expedite not only the review and release of updated guidance but the program as a whole. West Virginians have waited long enough, and I hope with your leadership they will soon have broadband access and this will be President Trump and your greatest accomplishment for rural America. 
    Sincerely,  

    MIL OSI USA News –

  • MIL-OSI Global: Tips for starting a business in Canada, according to entrepreneurs who have done it

    Source: The Conversation – Canada – By Nazha Gali, Assistant Professor of Strategy and Entrepreneurship, University of Windsor

    Each year, about 100,000 small businesses are created in Canada. But what does it actually take to start a business in Canada — not just on paper, but in practice?

    To better understand what launching a startup in Canada truly involves, we interviewed entrepreneurs across various sectors. As experts in strategy and entrepreneurship, we combined their first-hand experiences with research findings to determine key factors that contribute to business success.

    What emerged is a clearer picture of the realities of Canadian entrepreneurship that shows building a business is as much about managing relationships, risks and resilience as it is about having a novel idea.

    Solving real consumer problems

    Before launching a business, it’s essential to identify your target customers. Successful ventures begin by solving a real problem for a clearly defined group. Conducting market research to ensure a strong product-market fit is a critical first step in this process.

    One of the most common blind spots for new entrepreneurs, according to Ariz Bhimani, founder of apparel brand BRFZY, is assuming the problem they face is universal. “Without genuine data from potential customers, you’re just guessing,” he said in an email interview.

    This is where customer discovery comes in. It involves understanding customers’ situations, needs and pain points. Techniques such as user interviews and creating detailed customer personas can help founders better understand who their product is for.

    This approach is crucial for both startups and established organizations looking to enter new markets.

    Another vital part of the early-stage process is building a minimum viable product (MVP): a basic version of a product that includes only the core features needed to test the idea with users.

    MVPs allow entrepreneurs to gather feedback and refine the product before investing significant time or money in full development.

    Manage your money wisely

    Once a market need is identified, securing funding is often the next major challenge. This process typically begins with creating a compelling pitch — a presentation that outlines the product or service and financial projections to attract potential investors.

    This pitch is crucial to a startup’s success, Mohammad Faiyaz, founder and CEO of Wavermark, told us.

    There are tools and resources available to help, such as the pitch deck developed by PayPal co-founder Peter Thiel and AI feedback tool AI Fornax.

    Having a solid pitch prepared is a necessary step to attract potential investors for your business.
    (Shutterstock)

    But while funding is essential, managing those funds wisely is equally important. Chris Colasanti, vice president at Rocket Mortgage Canada, explained via email that one of the most common mistakes new entrepreneurs make is failing to control costs.

    Many first-time founders become preoccupied with revenue growth while overlooking expenses. Colasanti argued that unless you have endless investor backing, your survival depends on lean operations. “Obsess about your costs,” he advised.

    Bhimani echoed this caution. “I would budget two to three times more time and money to get a task done, especially in the ideation stage,” he wrote to us. Entrepreneurs should be prepared for unexpected costs.

    Building a business plan

    Many startup founders are eager to scale their businesses quickly, but doing this prematurely can increase the risk of failure by 20 to 40 per cent.

    “Growth is one of the most taxing activities a company can experience,” Colasanti told us. “Fight the urge to grow. Hire when it hurts and let sales drive your growth.”

    To scale successfully, companies need a strong foundation. This means having a comprehensive business plan in place. A well-structured plan outlines a company’s mission, market strategy, operations, finances and key milestones.

    Beyond serving as a roadmap for internal decision-making, business plans also help communicate a company’s vision and strategy to investors and other stakeholders.

    The Business Development Bank of Canada offers guides to help entrepreneurs build effective business plans.

    Hire the right people for the job

    Hiring the right employees for the job is crucial for startup success. “You cannot overpay for talent,” Colasanti told us. “The first 10 people you hire will make or break your business.”

    Hiring decisions should go hand-in-hand with intentionally building a workplace culture. Research shows that a positive workplace culture leads to higher employee satisfaction, retention and overall productivity.

    “Your business will develop a culture whether you create it or not,” he said. Many first-time founders let poor behaviours slide to avoid conflict, but this is risky.

    Hiring the right employees for the job is crucial for startup success.
    (Shutterstock)

    Bhimani also emphasized the importance of hiring those who genuinely understand your company’s mission. “Then I know they’re invested and will put forth their best effort,” he told us.

    There are important legal considerations to keep in mind. Employers must comply with federal and provincial labour laws, and entrepreneurs should seek legal advice or consult government resources when building their teams.

    Seek out a knowledgeable mentor

    While entrepreneurship is often seen as a solo pursuit, research and experience suggest otherwise. In reality, founders who are mentored by successful entrepreneurs are over three times more likely to be successful themselves.

    Both Bhimani and Dhwani Shah, founder and CEO of Aadhya Navik Inc., highlighted the importance of mentors.

    “Even if you just have an idea,” Bhimani told us via email, “you should strive to talk about it as much as possible with people in the industry who have relevant experience.”

    Shah similarly attributed her growth to constant learning and expert guidance: “I have a long-term vision and actively seek advice while working on the product.”

    Resources like the Business Benefits Finder and programs like Futurpreneur Canada and Startup Canada can connect early-stage founders with financing and mentorship.

    Passion and persistence are key

    Mindset is also a differentiating factor that sets successful entrepreneurs apart. The entrepreneurial mindset is a way of thinking that involves seeing opportunities where others see obstacles, and maintaining a strong sense of initiative and resilience.

    All the entrepreneurs we interviewed said intrinsic motivation was the key to longevity. “Starting a business makes you wear multiple hats, which can be intimidating but also gives you immense satisfaction,” Shah told us. Research has also confirmed this to be true.



    Read more:
    Entrepreneurs know that failure is sometimes necessary – here’s what we can learn from them

    Colasanti told us fear often leads founders to switch from experimentation to protection mode too early. “They stop taking big swings and start firing bullets instead of cannonballs,” he said. That mindset shift can lead to complacency and stagnation.

    Successful entrepreneurs are often those who can stay agile, embrace discomfort and persist even when the stakes are high.

    Make use of resources

    There are a number of supports for entrepreneurs in Canada. National initiatives like Futurpreneur Canada and Startup Canada, and financial supports from Business Development Bank of Canada, are also available.

    Most provinces and territories have web pages dedicated to resources for small businesses and entrepreneurs, including British Columbia, Alberta, Manitoba and Ontario.

    In southern Ontario, WETech Alliance offers a model example of how regional innovation hubs can support founders. Their programs help connect entrepreneurs to expertise, capital and community.

    Starting a business in Canada has never been more possible or more competitive. As the experts we spoke to remind us, success lies in execution. The journey is hard, but for those who are ready, it can also be deeply rewarding.

    Bharat Maheshwari has received funding from Mitacs, the Social Sciences and Humanities Research Council of Canada, and several other organizations that regularly fund academic research in Canada.

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

    – ref. Tips for starting a business in Canada, according to entrepreneurs who have done it – https://theconversation.com/tips-for-starting-a-business-in-canada-according-to-entrepreneurs-who-have-done-it-247985

    MIL OSI – Global Reports –

  • MIL-OSI USA: Read More (Steube, Titus Introduce Bill to Counter Drone Threats at Stadiums and Public Events)

    Source: United States House of Representatives – Congressman Greg Steube (FL-17)

    May 07, 2025 | Press ReleasesWASHINGTON — U.S. Representatives Greg Steube (R-Fla.) and Dina Titus (D-Nev.) this week led a bipartisan coalition to introduce the Disabling Enemy Flight Entry and Neutralizing Suspect Equipment (DEFENSE) Act, legislation that permits trained state and local law enforcement officers to intercept and disable hostile drones at stadiums and other large-scale events protected by temporary flight restrictions.“Whether it’s a packed stadium or a large outdoor gathering, our communities deserve to enjoy these moments without fear of surveillance or disruption from above,” said Rep. Steube. “The DEFENSE Act gives law enforcement the tools they need to protect Americans attending high-profile events from dangerous and unauthorized drones.”“People travel to Las Vegas from all over the world to experience our world class entertainment and live sporting events,” said Rep. Dina Titus. “I am proud to co-lead this bill to give our state and local law enforcement the tools they need to keep fans, athletes, performers, and stadium workers safe from aerial threats.”Current law authorizes only federal authorities to counter rogue drone incursions. While state and local authorities often have a larger presence at sporting events, the gap created in real-time event security denies state and local officials the ability to address unmanned aircraft systems (UAS) that threaten the safety of the stadium attendees. The DEFENSE Act would change that by authorizing the Department of Homeland (DHS) and the Department of Justice (DOJ) to extend temporary authority to state and local officers—provided they receive proper training and oversight—to use approved counter-UAS technology to detect, monitor, and respond to airborne threats. Authorized equipment would be limited to systems approved by DHS in coordination with DOJ, Federal Aviation Administration (FAA), Federal Communications Commission (FCC), and National Telecommunications and Information Administration (NTIA). The bill also requires full federal oversight and compliance with airspace and privacy laws.Representatives Steube and Titus partnered with four of their House colleagues, Representatives Rudy Yakym (R-Ind.), Cory Mills (R-Fla.), Jill Tokuda (D-Hawaii), and Lou Correa (D-Calif.) as well as Senators Tom Cotton (R-Ark.) and Jacky Rosen (D-Nev.) who have proposed companion legislation in the Senate.“Stadiums and spectators at large events are vulnerable to unauthorized drone activity, which puts both public safety and national security at risk,” said Senator Cotton. “Our bill empowers local authorities to safeguard large public gatherings from aerial threats.”
    “Major events — including sports and live entertainment — play a significant role in supporting our economy in Las Vegas and across the country, and we need to ensure they are safe,” said Senator Rosen. “Our bipartisan bill would enable state and local law enforcement to better mitigate threats posed by drones to the security of these high attendance events.” 
    “The DEFENSE Act allows local law enforcement to step in when drones threaten large public events,” said Rep. Yakym. “Whether it’s a sold-out game or a concert, this act ensures people can enjoy these moments without worrying about what’s flying overhead.”“With the growing number of drones in use it is paramount that our state and local law enforcement agencies are able to be granted the proper authority to protect citizens at large events and gatherings,” said Rep. Mills. “Events like NASCAR races, rallies, or other large public events should be safe and this bill provides the ability for local law enforcement agencies to protect their citizens.”“As we continue to see the rise of drones and unmanned aircraft systems as a potential threat to public safety, it’s critical that state and local law enforcement have the tools and resources they need to protect our communities, especially at large-scale events that are at increased risk,” said Rep. Tokuda. “I’m proud to join this bipartisan effort to ensure that our local partners in law enforcement can respond quickly and effectively to unauthorized drone activity and keep our people safe from harm.”“The economic engine of Orange County is tourism. From sports to live concerts, Orange County is proud to host hundreds of outdoor events each year. We must ensure that these major events which draw thousands of attendees are safe,” said Rep. Correa. “I’m proud to join my colleagues—Democrat and Republican—in introducing this commonsense, bipartisan legislation to give state and local law enforcement the tools they need to counter threats posed by drones and other unauthorized aircraft.”This legislation has the backing of numerous national sports organizations, including the NFL, MLB, NCAA, and NASCAR, which have all expressed support for expanding drone countermeasure authority to protect fans, players, and event staff. For additional background, see this report from ESPN.“The NFL applauds the bipartisan group of sponsors for their leadership in introducing the DEFENSE Act in the House of Representatives. As the threat of illicit drone activity continues to rise, it is critical that our state and local law enforcement partners have the tools and resources they need to keep fans safe at major sporting events across the country.   This legislation will help to do just that, and we urge Congress to adopt it as soon as possible.  Doing so is vital to the security of our homeland.”  —Cathy Lanier, Chief Security Officer, National Football League“Major League Baseball (MLB) applauds the leadership of Representatives Greg Steube, Dina Titus, Lou Correa, Cory Mills, and Rudy Yakym in introducing H.B. 3207, the DEFENSE Act. This bill is crucial for enabling trained state and local law enforcement to use counter-drone technology to safeguard sporting venues from unauthorized unmanned aircraft systems (UAS or drones). MLB has long recognized the threat that unauthorized drones pose to its 30 stadiums nationwide, and has urged Congress to take the requisite steps to provide law enforcement with the tools and authority necessary to protect our fans, players, and employees. If enacted, this bipartisan bill will enhance the safety of America’s pastime for the 70 million fans attending our games each year. We look forward to collaborating with the bill’s sponsors and others to advance this important piece of legislation.” —David Thomas, Major League Baseball Senior Vice President of Security and Ballpark Operations“Drone related threats continue to pose real risks for events and communities across the country. The DEFENSE Act, introduced by Representatives Steube, Titus, Correa, Mills, and Yakym, provides important authority to trusted law enforcement agencies around the country who are integral partners at each of our races.” —Allen Taylor, Managing Director, Security, NASCAR“The NCAA remains concerned about the threat of unauthorized drones at NCAA championships and college sporting events. The safety of the competitors, fans, and staff that work at NCAA events is our top priority and we applaud Rep. Steube and Rep. Titus for their leadership on this issue.” —Tim Buckley, Senior Vice President of External Affairs, NCAA“The safety of our teams and fans is a key priority at athletics events.   The SEC commends Representatives Greg Steube and Dina Titus for introducing this important legislation that is intended to provide public safety officials on campuses and in the communities they serve with enhanced measures to address unauthorized drone usage, and for joining the bipartisan leadership of Senator Tom Cotton and Senator Jacky Rosen on this issue.” —SEC Commissioner Greg SankeyRead the full bill here.

    MIL OSI USA News –

  • MIL-OSI USA: Ranking Member Kaptur Remarks at Fiscal Year 2026 US Department of Energy Budget Hearing

    Source: United States House of Representatives – Congresswoman Marcy Kaptur (OH-09)

     

    *** WATCH A FULL RECORDING OF THE HEARING HERE ​***

    Washington, DC — Today, Congresswoman Marcy Kaptur (OH-09), Ranking Member of the House Appropriations Energy and Water Development and Related Agencies Subcommittee, delivered the following opening remarks at the subcommittee’s fiscal year 2026 budget hearing for the US Department of Energy with Energy Secretary Chris Chris Wright:

    Good morning, and thank you all for joining us.

    As the Ranking Member of this subcommittee and a lifelong advocate for America’s energy independence in perpetuity, I welcome this opportunity to examine the Department of Energy’s recent actions and to discuss your proposed budget.

    Let me begin with a plain truth: The essentials of life are freshwater, food, and energy. The United States cannot afford to shortchange our energy future. US energy independence is essential for our liberty. I served President Jimmy Carter during the turbulent era not so long ago when the US slid into unconscious dependence on global energy supplies. My motto from then until now “never again.”

    The Department of Energy is the engine room of our nation’s energy security. It drives innovation. It serves as a critical steward of our nuclear security enterprise, and environmental obligations. We have not always done well there. It powers our economy. It protects our grid. It supports cutting-edge research, and ensures that our people — working families, industrious small and large businesses, farmers, our retirees — all have access to affordable, reliable energy and continuing energy innovation.

    And yet, we are confronted with proposals to slash $20 Billion in Department of Energy programs, despite clear and present threats to our energy stability. The Administration’s devastating 74 percent cut to Energy Efficiency and Renewable Energy is not just shortsighted, it is dangerous. Since January, the Department of Energy has suspended critical energy programs, cancelled executed awards and contracts authorized by Congress, severely reduced staffing, including removal of the Inspector General who tries to go after the crooks, and changed contracting policies. The resulting confusion has disrupted communities, businesses, and project developers across our country. This chaotic approach to this critical sector of a strong America and our national security impacts every family, business and community. Already, our people are feeling directly how the pinch feels when rising energy costs impact every American family and business.

    Let me be crystal clear. Weakening US energy progress at DOE is a direct threat to America’s energy security and gives our enemies relief. Weakness in advancing America’s energy intelligence leaves us open and exposed to foreign influence. Radical cutbacks weaken our domestic supply chains and delay the very innovations that would shield our economy from global price shocks and hasten enemy targeting. I am shocked by the damage the Administration’s proposals are causing and will continue to cause.

    Energy is essential to our way of life and economic growth of all of our communities. The United States is producing more oil than ever before — record-high production levels — something that, in theory, should be bringing gasoline prices down, not bobbing back and forth. But the reality is, American families have not been seeing sustained record-low gas prices. Why? Because we are still tethered to a volatile global energy market dominated by cartels and petroleum dictators. Oil prices declined recently after the OPEC cartel and its allies agreed to a further boost to output. US crude fell 2 percent to $53.13 a barrel, its lowest value since February 2021. Let me be the first Member of Congress to warn you that dependence on foreign crude is not in the national security interests of our nation.

    Forty-eight years ago, as our nation’s economy tanked and sank into deep depression due to the first Arab oil embargo, President Carter and our predecessors in Congress created the US Department of Energy. With their vision and steadfast bipartisan commitment over decades, our nation has steadily made progress in attaining domestic energy independence. We cannot take our foot off the accelerator.

    Over the last 40 years, America has made remarkable progress through expanding domestic oil and gas production. Ohio knows this well. We have developed cheaper, cleaner energy sources. Competition brings lower prices in energy. Innovations, including biofuels, solar, energy storage, and thermal recovery, are pushing into new energy frontiers of fusion, advanced nuclear, and hydrogen.

    Let’s not forget — when Russia invaded Ukraine, it wasn’t just a European crisis. That illegal invasion sent energy prices soaring around the world. The Department of Energy’s swift action to deploy strategic reserves and accelerate clean energy deployment helped soften the blow. But without a fully resourced Department, our ability to respond next time will be severely limited. This posture is dangerous.

    American energy independence is about more than geopolitics. Hardworking families in Northwest Ohio and across our country feel these pressures at the pump, see it in their utility bills, and at the checkout counter at the grocery store.

    Our nation is approaching 350 million people. We cannot behave as though this is 1950. Undermining the US Department of Energy by severely underfunding advanced energy research risks higher energy costs, increased geopolitical volatility, and weaker national security. That is not a future America should accept.

    Mr. Secretary, I would also like to close by raising for your awareness a district-centric issue that holds national implications: two of the five worst commercial nuclear power incidents in our nation’s history occurred in Ohio’s Nuclear North that I represent. That’s 40 percent! These dangerous and ultimately criminally negligent operations represent the worst management of commercial nuclear power in our nation’s history.

    Ratepayers in Ohio have for 40 years been the victim of these corrupt commercial nuclear operations — all through the willful federal and state abdication of quality management by the Atomic Energy Commission, the Department of Energy, and the Nuclear Regulatory Commission. Our ratepayers deserve and are due justice — they have been paying for the crimes and slipshod decision. So I ask that you help me from your position to achieve justice for Ohio’s billed ratepayers; the price gouging continues as we meet here today.

    As we work on FY 26 appropriations, I will fight to ensure this Energy and Water bill invests in America’s every future, our energy independence, in world-class innovation, and diversifying energy supplies as fundamental to our continuing economic strength. I have a notebook I have prepared for you and your staff outlining what has been going on in Ohio. It is absolutely un-American what has gone on there, and it has gone on for a long time. America’s energy future is in your hands. Everything must be “Made in America,” for America to assure a remarkable history for the generations to come.

    Thank you, and I look forward to the discussion ahead.

    # # #

    MIL OSI USA News –

  • MIL-OSI Russia: Chinese authorities have called on the financial sector to increase credit support for small and micro enterprises.

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    Source: People’s Republic of China – State Council News

    BEIJING, May 7 (Xinhua) — China’s National Financial Supervision Administration on Wednesday called for maintaining stable growth in lending to small and micro enterprises and continuously improving the quality of credit services provided to them.

    In its circular, the department said that banking and financial institutions need to ensure sufficient supply of credit for small and micro enterprises, aiming to ensure that the growth rate of inclusive lending to small and micro enterprises is at par with the growth rate of all types of loans.

    The Authority also called on the above-mentioned institutions to strengthen regulation of the cost of credit, and scientifically and rationally determine the interest rate levels for inclusive lending to small and micro enterprises.

    In addition, banking and financial institutions are encouraged to leverage their professional advantages and increase financial support for small and micro enterprises in the areas of foreign trade, private sector, technology and consumption.

    As of the end of February 2025, the total outstanding inclusive loans issued to small and micro enterprises nationwide stood at 33.9 trillion yuan (about 4.71 trillion U.S. dollars), up 12.6 percent year-on-year. –0–

    MIL OSI Russia News –

  • MIL-OSI USA: BRAVO’S “the Real Housewives of Rhode Island” Is Reality!

    Source: US State of Rhode Island

    Providence, RI — “The Real Housewives of Rhode Island” Set against the shores of the Ocean State, “The Real Housewives” franchise expands into the world of a tight-knit circle of Rhode Islanders who have deep community roots and families that go back generations. With aspirational lives, thriving businesses and tangled family dynamics, these decade-long friendships prove that in a state this small, there’s no escaping your past � or each other.

    “The Real Housewives of Rhode Island” is produced by Evolution Media. Lucilla D’Agostino, Joseph Ferraro and Jen McClure-Metz executive produce. Andy Cohen is also an executive producer.

    Steven Feinberg, Executive Director of the Rhode Island Film & TV Office, stated, “One of the most popular reality-shows ever to grace television, “The Real Housewives” franchise sparked an avalanche of enthusiasm when word spread that this entertaining series just might land in the Ocean State. Well, good news, folks. “The Real Housewives of Rhode Island” is ready to roll and take the world by storm! Action!”

    “We’re excited to welcome ‘The Real Housewives’ and their millions of viewers to Rhode Island,” said Governor Dan McKee. “Our state is home to vibrant communities, amazing food, rich history, and stunning coastal beauty�perfect for the spotlight. This is a great opportunity to support our local economy and bring national attention to all Rhode Island has to offer.”

    “From the recent filming of ‘Ella McCay’ to HBO’s ‘The Gilded Age,’ Rhode Island is an incredible backdrop for a wide range of productions. The filming of ‘The Real Housewives of Rhode Island’ is a great way to showcase some of the Ocean State’s world-class dining and hospitality,” said House Speaker K. Joseph Shekarchi. “I am very proud to be a strong supporter of the Rhode Island Film & Television Office, because the arts are a vital part of Rhode Island’s culture and economy. From catering and site usage for filming to increasing tourism, the film and TV industry generates revenue for our local businesses and brings in millions of dollars to our state.”

    President of the Senate Valarie J. Lawson said “I am pleased to welcome Bravo’s ‘Real Housewives’ franchise to Rhode Island, and I am excited for the show’s millions of fans to get a glimpse into our state’s rich history, culture, and natural beauty. Thank you to Steve Feinberg and the Rhode Island Film & Television Office for your outstanding work to secure so many productions that generate excitement in our communities while showcasing the Ocean State to audiences around the globe.”

    The Rhode Island Film & TV Office is a government agency under the umbrella of the Rhode Island State Council on the Arts (RISCA).

    MIL OSI USA News –