Emissions Trading – Page 10

MIL-OSI New Zealand: Legislation introduced to restrict farm-to-forest conversions

Source: New Zealand Government

Today Agriculture and Forestry Minister Todd McClay introduced long awaited legislation that will put a stop to large-scale farm-to-forestry conversions – delivering on a key election promise to protect the future of New Zealand food production.
“For too long, productive sheep and beef farms have been replaced by pine trees in the race for carbon credits. That ends under this Government,” Mr McClay says.
“The Climate Change Response (Emissions Trading Scheme – Forestry Conversions) Amendment Bill will restrict wholesale conversions of farmland to exotic forestry by stopping LUC 1-5 land from entering the ETS and capping new ETS registrations on LUC 6 land.
“It will also protect farmers’ ability to diversify – allowing up to 25 per cent of a farm to go into trees, while stopping the kind of blanket ETS planting that’s been gutting rural communities in places like the East Coast, Wairarapa, the King Country, and Southland.”
As previously announced the new restrictions will take effect from 4 December 2024. The law will:

Restrict farm conversions to exotic ETS forests on high-to-medium versatility farmland (LUC classes 1-6)
A limit of 15,000 hectares per year for exotic conversions on medium versality farmland (LUC class 6)
The annual limit of 15,000 hectares for LUC 6 farmland will be allocated by a ballot process, including a reserved quota for small block holders, with the first ballot proposed to be held in mid-2026.
Allow for up to 25 per cent of a farm’s LUC 1-6 land to still be planted in exotic forestry for the ETS, ensuring farmers retain flexibility and choice.
Protect specific categories of Māori-owned land, in line with Treaty obligations
The Bill proposes time-limited transitional exemptions in rare cases for people who were in the process of afforestation prior to these changes originally being announced on 4 December 2024.
To be eligible for a transitional exemption, applicants need to show sufficient evidence that they made a qualifying forestry investment between 1 January 2021 and 4 December 2024.
Transactions that commenced after this date will not be eligible to register in the ETS.
The applicant will need to demonstrate that the investment relates to the specific Land Use Capability (LUC) class 1–6 land they are applying to register in the ETS.
Registry of 25 per cent of LUC 1-5 land will be registered against the properties title to restrict further planting as a result of subdivision.

“Labour’s careless ETS settings turbocharged the sell-off of our farming base. They let speculators put short-term profits ahead of long-term food production. That was careless – and it ends now,” Mr McClay says.
“This Government is backing farmers, restoring balance, and making sure the ETS doesn’t come at the cost of New Zealand’s rural economy.
“This policy is pro-farming, pro-food production, pro-commercial forestry and pro-rural New Zealand.”
The legislation is now before Parliament and is to come into force October 2025.
For more information: Forestry ETS Changes

MIL OSI New Zealand News –

June 10, 2025

MIL-OSI: ETC Announces Fiscal 2025 Full Year and Fourth Quarter Results

Source: GlobeNewswire (MIL-OSI)

SOUTHAMPTON, Pa., June 09, 2025 (GLOBE NEWSWIRE) — Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today reported its financial results for the fourteen week period ended February 28, 2025 (the “2025 fiscal fourth quarter”) and the fifty-three week period ended February 28, 2025 (“fiscal 2025”).

Robert L. Laurent, Jr., ETC’s Chief Executive Officer and President stated, “Our strong backlog and pipeline of opportunities once again translated into increases in net sales, gross profit margin, operating income and net income. These results reflect growth in each of our business units with sales increasing to $62.9 million, gross profit increasing to $18.5 million, and net income increasing to $13.1 million or $0.75 diluted earnings per share in fiscal 2025 as compared to net income of $1.8 million or $0.09 diluted earnings per share in fiscal 2024. We believe we remain well positioned for the future with a backlog of $87 million and strong pipeline of opportunities at February 28, 2025.”

Fiscal 2025 Results of Operations

Net Income

Net income was $13.1 million, or $0.75 diluted earnings per share, in fiscal 2025, compared to net income of $1.8 million during fiscal 2024, equating to $0.09 per diluted share. The $11.2 million variance is primarily attributable to a $19.6 million increase in sales, a $6.1 million increase in gross profit, slightly offset by a $0.8 million increase in operating expenses. Fiscal 2025 is also being positively impacted by an income tax benefit of $5.6 million, primarily associated with the partial reversal of valuation allowance previously recorded against the deferred tax asset. The deferred tax asset valuation allowance on federal deferred tax assets and certain state deferred tax assets was reversed in fiscal 2025, as it is now more likely than not that the Company will be able to fully realize these deferred tax assets.

Net Sales

Net sales for fiscal 2025 was $62.9 million, an increase of $19.6 million, or 45.3%, compared to fiscal 2024 net sales of $43.3 million. The increase is a result of higher International sales of $13.4 million, of which $9.3 million are within Aircrew Training Solutions (“ATS”) and $3.5 million are within Commercial Industrial Systems (“CIS”) as well as higher Domestic sales of $6.2 million, $6.0 million of which are within CIS. Further, sales in fiscal 2025 increased the greatest within the ATS business unit and Sterilizer Systems business unit, accounting for $9.9 and $7.4 million, respectively, of the overall increase of $19.6 million.

Gross Profit

Gross profit for fiscal 2025 was $18.5 million compared to $12.5 million in fiscal 2024, an increase of $6.1 million, or 48.7%. The increase in gross profit was primarily due to higher net sales within the ATS and Sterilizers System business units. Gross profit margin as a percentage of net sales increased to 29.4% in fiscal 2025 compared to 28.8% in fiscal 2024.

Operating Expenses

Operating expenses, including sales and marketing, general and administrative, and research and development, for fiscal 2025 was $10.3 million compared to $9.5 million in fiscal 2024, an increase of $0.8 million, or 8.1%. An increase in selling and marketing expenses, primarily driven by higher sales and an increase in general and administrative expenses, due primarily to an increase in salary and related expenses, along with an increase in professional fees was offset slightly by a decrease in research and development expenses.

Interest Expense, Net

Interest expense, net, for fiscal 2025 was $1.2 million compared to $0.9 million in fiscal 2024, an increase of $0.3 million, or 31.6%, due primarily to higher borrowing attributable to the leaseback of the Southampton, Pennsylvania demonstration equipment in fiscal 2025.

Other (Income) Expense, Net

Other income, net, for fiscal 2025 was ($0.4) million, compared to other expense, net, of $0.3 million in fiscal 2024 a favorable variance of ($0.7) million, or (221.5%) attributable to a gain realized from the sale of the Southampton, Pennsylvania demonstration equipment in fiscal 2025.

Income (Benefit) Taxes

As of February 28, 2025, the Company reviewed the components of its deferred tax assets and determined, based upon all available information, that it is more likely than not that deferred tax assets relating to its federal deferred tax assets and certain state deferred tax assets will be realized. Accordingly, we reversed the previously recorded valuation allowance against these deferred tax assets. If in the future there is a change in our ability to realize these deferred tax assets, then our tax valuation allowance may increase in the period in which we determine that realization is no longer more likely than not. An income tax benefit of $5.6 million was recorded in fiscal 2025 compared to income tax benefit of $0.1 million recorded in fiscal 2024.

Fiscal 2025 Fourth Quarter Results of Operations

Net Income

Net income was $7.6 million, or $0.45 diluted earnings per share, in the 2025 fiscal fourth quarter, compared to net income of $2.8 million during the 2024 fiscal fourth quarter, equating to $0.17 diluted earnings per share. The $4.8 million variance is a result of $2.7 million of increased sales, $0.6 million increase in other income attributable to the sale of the Company’s demonstration equipment offset slightly by an 8.9% decrease in gross profit margin percentage, primarily attributable to increased aeromedical center building sales and higher interest expense attributable to the demonstration equipment lease. The 2025 fiscal fourth quarter is also being positively impacted by a $5.5 million increase in income tax benefit attributable to the reversal of the deferred tax asset valuation allowance.

Net Sales

Net sales for the 2025 fiscal fourth quarter were $19.1 million, an increase of $2.7 million, or 16.4%, compared to net sales of $16.4 million for the 2024 fiscal fourth quarter. The increase reflects higher overall sales within the ATS and Sterilizer Systems business units.

Gross Profit

Gross profit was $4.7 million in the 2025 fiscal fourth quarter, a decrease of $0.8 million, or 14.5% compared to gross profit of $5.5 million for the 2024 fiscal fourth quarter. Gross profit margin as a percentage of net sales decreased to 24.6% in the 2025 fiscal fourth quarter compared to 33.5% in 2024 fiscal fourth quarter. The majority of the decrease was a direct result of the increase in aeromedical center building sales, which is lower margin then ETC’s core business as the work is being performed by a sub-contracted construction firm. Excluding the aeromedical center building sales, gross profit margin would have been approximately 29.7%. As the building construction of the aeromedical center accelerates over the next year, ETC expects gross profit margin to be lower in fiscal 2026 as compared to fiscal 2025.

Operating Expenses

Operating expenses, including sales and marketing, general and administrative, and research and development, for the 2025 fiscal fourth quarter were $2.7 million, an increase of $0.2 million, or 6.1%, compared to $2.5 million for the 2024 fiscal fourth quarter. The increase in operating expenses was due primarily to higher general and administrative expenses slightly offset by lower selling and marketing and research and development expenses in the 2025 fiscal fourth quarter compared to the 2024 fiscal fourth quarter.

Interest Expense, Net

Interest expense, net, for the 2025 fiscal fourth quarter was $0.6 million compared to $0.2 million in the 2024 fiscal fourth quarter, an increase of $0.4 million, or 146.6%, reflecting increased borrowing attributable to the leaseback of the demonstration equipment in 2025 fiscal fourth quarter.

Other (Income) Expense, Net

Other income, net, for 2025 fiscal fourth quarter was ($0.5) million, compared to other expense, net, of $0.1 million in 2024 fiscal fourth quarter, a favorable variance of ($0.6) million, or (721.0%) attributable to a gain realized from the sale of the Southampton, Pennsylvania demonstration equipment in the 2025 fiscal fourth quarter.

Income (Benefit) Taxes

An income tax benefit of $5.7 million was recorded in the fiscal 2025 fourth quarter compared to an income tax benefit of $0.2 million in the 2024 fiscal fourth quarter. The increase in the income tax provision in the 2025 fiscal fourth quarter was driven primarily by the reversal of the valuation allowance on federal deferred tax assets and certain state deferred tax assets. This reversal is attributable to the change in the Company’s operating profit and expected ability to realize these deferred tax assets.

Liquidity and Capital Resources

As of February 28, 2025, the Company’s availability under the PNC Revolving Line of Credit was $2.2 million. This reflected cash borrowings of $14.3 million and net outstanding standby letters of credit of approximately $3.5 million. As of June 9, 2025, the date of our most current Revolving Line of Credit statement, the Company’s availability under the PNC Revolving Line of Credit was approximately $1.2 million. The Company had working capital of $19.7 million as of February 28, 2025 compared to working capital of $8.7 million as of February 23, 2024. The increase in working capital was primarily the result of a significant increase in contract assets and reduction in contract liabilities partially offset by a decrease in prepaid assets and increase in accounts payable, trade and an increase in the current portion of lease obligations. With unused availability under the Company’s various current lines of credit, the further conversion of contract assets and inventory into cash, the collection of milestone payments associated with several International contracts, and expected deposits on fiscal 2026 bookings, the Company anticipates its sources of liquidity will be sufficient to fund its operating activities, anticipated capital expenditures, and debt repayment obligations throughout fiscal 2025.

On February 3, 2025, the Company entered into a Financing and Security Agreement with Coeur Capital, Inc. that provided for a line of credit of up to $3.0 million. The company is able to draw on the line transferring and assigning acceptable accounts receivable to Coeur Capital. The Financing and Security Agreement remains in full force until terminated by either party upon advanced written notice. As of February 28, 2025, the Company’s availability under this Financing and Security Agreement was $3.0 million. As of June 9, 2025, the date of our report, the Company’s availability under this Financing and Security Agreement with Coeur Capital was $3.0 million.

Cash flows from operating activities

During fiscal 2025, cash flows used by operating activities were $3.9 million, an increase of $0.2 million compared to fiscal 2024 cash flows used by operating activities of $3.7 million. Cash flows in fiscal 2025 increased as a result of the increase in contract assets and decrease in contract liabilities partially offset by net income for the fiscal year.

Cash flows from investing activities

Cash flows from investing activities primarily relates to funds for capital expenditures in property, plant, and equipment and software development. The Company’s fiscal 2025 investing activities provided $3.6 million as compared to fiscal 2024 investing activities which used $0.3 million. The change in investing activities is attributable to $4.0 million from the sale leaseback of the demonstration equipment in Southampton, Pennsylvania.

Cash flows from financing activities

During fiscal 2025, the Company’s financing activities provided $1.7 million from borrowings under the Company’s credit facility to support the significant increase in manufacturing, compared to fiscal 2024 borrowings of $2.7 million.

About ETC

ETC was incorporated in 1969 in Pennsylvania. For over five decades, we have provided our customers with products, services, and support. Innovation, continuous technological improvement and enhancement, and product quality are core values that are critical to our success. We are a significant supplier and innovator in the following areas: (i) software driven products and services used to create and monitor the physiological effects of flight, including high performance jet tactical flight simulation, fixed and rotary wing upset prevention and recovery and spatial disorientation, and both suborbital and orbital commercial human spaceflight: altitude (hypobaric) chambers; hyperbaric chambers for multiple persons (multiplace chambers) collectively, Aircrew Training Systems (“ATS”);; (ii) Advanced Disaster Management Simulators (“ADMS”); (iii) steam and gas (ethylene oxide) sterilizer systems (“Sterilizer Systems” or “Sterilizers”); and (iv) Environmental Testing and Simulation Systems (“ETSS”).

We operate in two primary business segments, Aerospace Solutions (“Aerospace”) and Commercial/Industrial Systems (“CIS”). Aerospace encompasses the design, manufacture, and sale of: (i) ATS products; and (ii) ADMS, as well as integrated logistics support (“ILS”) for customers who purchase these products or similar products manufactured by other parties. These products and services provide customers with an offering of comprehensive solutions for improved readiness and reduced operational costs. Sales of our Aerospace products are made principally to U.S. and foreign government agencies and to civil aviation organizations. CIS encompasses the design, manufacture, and sale of: (i) sterilizer systems; and (ii) ETSS; as well as parts and service support for customers who purchase these products or similar products manufactured by other parties. Sales of our CIS products are made principally to the healthcare, pharmaceutical, and automotive industries.

ETC-PZL Aerospace Industries Sp. z o.o. (“ETC-PZL”), our 100%-owned subsidiary in Warsaw, Poland, is currently our only operating subsidiary. ETC-PZL manufactures certain simulators and provides software to support products manufactured domestically within our Aerospace segment.

The majority of our net sales are generated from long-term contracts with U.S. and foreign government agencies (including foreign military sales (“FMS”) contracted through the U.S. Government) for the research, design, development, manufacture, integration, and sustainment of ATS products, including Chambers and the simulators manufactured and sold through ETC-PZL, collectively, ATS. The Company also enters into long-term contracts with domestic and international customers for the sale of sterilizer systems and ETSS. Net sales of ADMS are generally much shorter term in nature and vary between domestic and international customers. We generally provide our products and services under fixed-price contracts.

ETC’s unique ability to offer complete systems, designed and produced to high technical standards, sets it apart from its competition. ETC’s headquarters is located in Southampton, PA. For more information about ETC, visit http://www.etcusa.com/.

Forward-looking Statements

This news release contains forward-looking statements, which are based on management’s current expectations and are subject to uncertainties and changes in circumstances. Words and expressions reflecting something other than historical fact are intended to identify forward-looking statements, and these statements may include words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “future”, “predict”, “potential”, “intend”, or “continue”, and similar expressions. We base our forward-looking statements on our current expectations and projections about future events or future financial performance. Our forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about ETC and its subsidiaries, the economy and other factors that may cause actual results to be materially different from any future results implied by these forward-looking statements. We caution you not to place undue reliance on these forward-looking statements.


Table A

Environmental Tectonics Corporation
Consolidated Comprehensive Statement of Operations and Comprehensive Income


(in thousands, except per share information)	Fifty-three / Fifty-two weeks ended						Variance
	February 28, 2025			February 23, 2024			($)			(%)
Net sales	$	62,943		$	43,307		$	19,636		45.3
Cost of goods sold		44,420			30,848			13,572		44.0
Gross Profit		18,523			12,459			6,064		48.7
Gross profit margin %		29.4	%		28.8	%		0.6	%	2.1	%

Operating expenses		10,260			9,494			766		8.1
Operating income		8,263			2,965			5,298		178.7
Operating margin %		13.1	%		6.8	%		6.3	%	92.6	%

Interest expense, net		1,183			899			284		31.6
Other (income) expense, net		(361	)		297			(658	)	-221.5
Income before income taxes		7,441			1,769			5,672		320.6
Pre tax margin %		11.8	%		4.1	%		7.7	%	187.8	%

Income tax provision (benefit)		(5,622	)		(51	)		(5,571	)	10923.5
Net income		13,063			1,820			11,243		617.7
Preferred Stock Dividends		(493	)		(484	)		(9	)	1.9
Income attributable to common and participating shareholders	$	12,570		$	1,336		$	11,234		840.9

Per share information:
Basic earnings per common and participating share:
Distributed earnings per share:
Common	$	–		$	–
Preferred	$	0.08		$	0.08		$	–		0.0
Undistributed earnings per share:
Common	$	0.81		$	0.09		$	0.72		800.0
Preferred	$	0.81		$	0.09		$	0.72		800.0
Diluted earnings per share	$	0.75		$	0.09		$	0.66		733.3

Total basic weighted average common and participating shares		15,572			15,569

Total diluted weighted average shares		16,655			15,569

Table B

Environmental Tectonics Corporation
Consolidated Comprehensive Statement of Operations and Comprehensive Income

	Fourteen / Thirteen weeks ended						Variance
(in thousands, except per share information)	February 28, 2025			February 23, 2024			($)			(%)
Net sales	$	19,098		$	16,414		$	2,684		16.4
Cost of goods sold		14,394			10,915			3,479		31.9
Gross Profit		4,704			5,500			(795	)	-14.5
Gross profit margin %		24.6	%		33.5	%		-8.9	%	-26.7	%

Operating expenses		2,665			2,513			153		6.1
Operating income		2,039			2,987			(948	)	-31.6
Operating margin %		10.7	%		18.2	%		-7.5	%	-40.8	%

Interest expense, net		613			249			365		146.6
Other (income) expense, net		(504	)		81			(584	)	-721.0
Income before income taxes		1,930			2,658			(728	)	-27.4
Pre-tax margin %		10.1	%		16.2	%		-6.2	%	(38.2	)

Income tax provision (benefit)		(5,682	)		(171	)		(5,511	)	3222.8
Net income		7,612			2,829			4,783		169.1
Preferred Stock dividends		(130	)		(121	)		(9	)	7.4
Income attributable to common and participating shareholders	$	7,482		$	2,708		$	4,774		176.3

Per share information:
Basic earnings per common and participating share:
Distributed earnings per share:
Common	$	–		$	–		$	–
Preferred	$	0.02		$	0.02		$	–		0.0
Undistributed earnings per share:
Common	$	0.48		$	0.17		$	0.31		182.4
Preferred	$	0.48		$	0.17		$	0.31		182.4
Diluted earnings per share	$	0.45		$	0.17		$	0.28		164.7


Total basic weighted average common and participating shares		15,582			15,569

Total diluted weighted average shares		16,725			15,569

The MIL Network –

June 10, 2025

MIL-OSI United Kingdom: Tackling fuel poverty in privately rented homes

Source: Scottish Government

Proposals for minimum standards of energy efficiency

Private rented homes could be subject to a Minimum Energy Efficiency Standard (MEES) from 2028 to support efforts to tackle fuel poverty and reduce emissions that contribute to climate change.

Under proposals published today, regulations would be brought forward under existing powers requiring privately rented properties, as far as possible, to reach the reformed EPC Heat Retention Rating (HRR) band C from 2028 for new tenancies and by 2033 for all privately rented homes.

In 2022 there were 300,000 privately rented properties in Scotland. The regulations would prohibit the letting of properties which fall below the minimum standard of energy efficiency, until the landlord has made any relevant energy efficiency improvements.

The current system of Energy Performance Certificates (EPC) is due to be revised and updated from 2026 with a new set of ratings to give clearer information on the fabric energy efficiency of a property; the emissions, efficiency and running costs of its heating system; and the cost of energy to run the home.

Alasdair Allan, Acting Minister for Climate Action said:

“It is vital that we find the right balance to both reach net zero by 2045 and reduce fuel poverty. Improving energy efficiency is one of the levers available to the Scottish Government that enables this dual progress.

“The lowest rates of fuel poverty are associated with higher energy efficiency standards. A majority of privately rented properties are already at a good standard of energy efficiency, based on the current EPC regime, but others still need improvement to bring them closer to reaching a good level.

“These proposals will improve those homes, reduce energy costs for tenants and support the transition to clean heating – which we will be further strengthening through the Heat in Buildings Bill that we have committed to bring forward later this year. Installing better insulation and other energy efficiency measures will also benefit people’s health, by reducing the risk of cold and dampness-related conditions.

“The Scottish Government continues to offer a wide range of support to people and organisations looking to move to clean heating or improve energy efficiency, including to private landlords.”

Exemptions are proposed to provide protection to landlords in situations where they are prevented from obtaining third party consent or permissions to carry out work; and where undertaking work could have a negative impact on the fabric or structure of the property.

Previous proposals to regulate energy efficiency for the private rented sector were put forward in 2020 but withdrawn as a consequence of the Covid-19 pandemic.

Background

Also published today are proposals for a Heat and Energy Efficiency Technical Suitability Assessment, which could support consumers by providing further evidence, beyond the EPC system, of which energy efficiency or clean heating system measures are technically suitable for their home or building, and which may not be. This optional assessment would support in particular those in buildings which are more complex to decarbonise such as tenements, traditional and protected buildings.

Consultation on Draft Energy Efficiency (Domestic Private Rented Property) (Scotland) Regulations

Heat & Energy Efficiency Technical Suitability Assessment (HEETSA) – Scoping Consultation

Private Rented Sector Landlord Loan Scheme

Warmer Homes Scotland

Energy efficiency: Area Based Schemes

Withdrawn regulations: The Energy Efficiency (Domestic Private Rented Property) (Scotland) Regulations 2020

MIL OSI United Kingdom –

June 6, 2025

MIL-OSI: QuantaSing Announces Unaudited Financial Results for the Third Quarter of Fiscal Year 2025

Source: GlobeNewswire (MIL-OSI)

BEIJING, June 06, 2025 (GLOBE NEWSWIRE) — QuantaSing Group Limited (NASDAQ: QSG) (“QuantaSing” or the “Company”), a leading lifestyle solution provider, today announced its unaudited financial results for the third quarter of the fiscal year ending June 30, 2025 (the “third quarter of FY 2025”, which refers to the quarter from January 1, 2025 to March 31, 2025).

Business and Financial Highlights for the Third Quarter of FY 2025

Revenues for the third quarter of FY 2025 were RMB570.7 million (US$78.6 million), representing a decrease of 21.5% from the second quarter of the fiscal year ending June 30, 2025 (the “second quarter of FY 2025”) and a decrease of 39.6% from the third quarter of the fiscal year ended June 30, 2024 (the “third quarter of FY 2024”).
Gross billings of individual online learning services¹ for the third quarter of FY 2025 were RMB515.6 million (US$71.0 million), representing a decrease of 5.6% from the second quarter of FY 2025 and a decrease of 47.5% from the third quarter of FY 2024.
Net income for the third quarter of FY 2025 was RMB41.1 million (US$5.7 million), representing a decrease of 67.5% from the second quarter of FY 2025 and an increase of 181.2% from the third quarter of FY 2024.
Adjusted net income² for the third quarter of FY 2025 was RMB37.8 million (US$5.2 million), representing a decrease of 71.3% from the second quarter of FY 2025 and an increase of 18.5% from the third quarter of FY 2024.
Total registered users increased by 19.9% to approximately 145.0 million as of March 31, 2025, from 121.0 million as of March 31, 2024.
Paying learners was approximately 0.3 million in the third quarter of FY 2025.

Company Highlight for the Third Quarter of FY 2025

Completed acquisition of 61% equity interest in Shenzhen Yiqi Culture Co., Ltd. (“Letsvan”) on March 31, 2025 for a total cash consideration of RMB235.0 million through a multi-step transaction. Results of operations of Letsvan were included in consolidated financials of the Company beginning April 1, 2025. The acquired assets and liabilities of Letsvan are included at fair value in the Company’s consolidated balance sheet as of March 31, 2025.

Mr. Peng Li, Chairman and Chief Executive Officer of QuantaSing, commented, “Our third quarter results reflect our strategic pivot toward product-driven business models that create long-term value. The acquisition of Letsvan marks a significant milestone in our expansion into the pop toys market, a sector with strong growth potential that perfectly aligns with our brand-first philosophy. The early success of our WAKUKU IP, including the recent Fox and Rabbit collection launch, validates our approach of pairing strong product development capabilities with efficient go-to-market strategies. As we integrate Letsvan’s operations, we’re applying our test-and-scale methodology to build a global presence in this resilient market segment. We aim to create businesses where brand strength and product excellence drive sustainable growth, rather than simply pursuing traffic-driven metrics.”

Mr. Dong Xie, Chief Financial Officer of QuantaSing, added, “Our financial performance this quarter underscores our commitment to disciplined capital allocation during this transformation phase. While revenue moderated to RMB570.7 million as we shifted resources away from traffic-driven businesses, we’ve maintained strong cash generation across our businesses. Our ROI-focused assessment methodology has allowed us to exit underperforming areas while preserving resources for high-potential opportunities. With our healthy cash position, we have the flexibility to support both our existing operations and our strategic initiatives in the pop toys space. Though we anticipate some near-term profitability fluctuations as we optimize our business mix, our financial foundation remains robust as we execute this strategic evolution.”

Financial Results for the Third Quarter of FY 2025

Revenues

Revenues were RMB570.7 million (US$78.6 million) in the third quarter of FY 2025, compared to RMB945.6 million in the third quarter of FY 2024. The change reflects the Company’s deliberate shift from traffic-driven growth to high-quality growth.

Revenues from individual online learning services decreased by 43.6% year over year to RMB467.2 million (US$64.4 million) in the third quarter of FY 2025, from RMB828.1 million in the third quarter of FY 2024. This decrease was primarily due to a decrease of RMB268.3 million (US$37.0 million) in revenues from skills upgrading courses, a decline of RMB74.1 million (US$10.2 million) in revenues from financial literacy courses and a decline of RMB18.5 million (US$2.5 million) in revenues from recreation and leisure courses.
Revenues from enterprise services were RMB48.1 million (US$6.6 million) in the third quarter of FY 2025, compared to RMB65.1 million in the third quarter of FY 2024, representing a year-over-year change of 26.1%. The decline was primarily driven by reduced marketing services to enterprise customers.
Revenues from consumer business³ were RMB48.7 million (US$6.7 million) in the third quarter of FY 2025, compared to RMB49.4 million in the third quarter of FY 2024. The slight change was primarily attributable to the decline in baijiu revenue, partially offset by the modest increase in wellness products revenue.
Revenues from others³ were RMB6.7 million (US$0.9 million) in the third quarter of FY 2025, compared to RMB3.0 million in the third quarter of FY 2024, primarily due to revenue from the Company’s newly initiated business.

Cost of revenues

Cost of revenues was RMB96.6 million (US$13.3 million) in the third quarter of FY 2025, compared to RMB145.8 million in the third quarter of FY 2024, representing a 33.8% decrease. The decrease was primarily due to reduced labor outsourcing costs of RMB22.1 million (US$3.1 million), decreased procurement costs of RMB9.6 million (US$1.3 million) and lower staff costs of RMB5.1 million (US$0.7 million).

Sales and marketing expenses

Sales and marketing expenses were RMB395.2 million (US$54.5 million) in the third quarter of FY 2025, compared to RMB729.6 million in the third quarter of FY 2024, representing a decrease of 45.8%. The decrease was mainly due to a reduction in marketing and promotion expenses of RMB265.1 million (US$36.5 million), labor outsourcing costs of RMB46.4 million (US$6.4 million), and staff costs of RMB7.9 million (US$1.1 million), which included a decrease in share-based compensation expenses of RMB2.1 million (US$0.3 million).

Research and development expenses

Research and development expenses were RMB20.9 million (US$2.9 million) in the third quarter of FY 2025, compared to RMB38.8 million in the third quarter of FY 2024, representing a decrease of 46.2%. The decrease was primarily due to lower staff costs of RMB16.0 million (US$2.2 million).

General and administrative expenses

General and administrative expenses were RMB25.0 million (US$3.5 million) in the third quarter of FY 2025, compared to RMB36.4 million in the third quarter of FY 2024, representing a decrease of 31.2%. The decrease was primarily due to lower staff costs of RMB8.0 million (US$1.1 million), which included a decrease in share-based compensation expenses of RMB5.5 million (US$0.8 million).

Remeasurement gain of previously held equity interests in connection with step acquisitions

Remeasurement gain of previously held equity interests in connection with step acquisitions were RMB8.1 million (US$1.1 million) in the third quarter of FY 2025, reflecting the fair value adjustment of initial investments in Letsvan before obtaining control. Details of the acquisition can be found in the Recent Developments section of this report.

Others, net

Others, net were RMB15.4 million (US$2.1 million) in the third quarter of FY 2025, compared to RMB7.7 million in the third quarter of FY 2024, primarily driven by the increased fair value gains in one of the Company’s long-term investments.

Net income and adjusted net income

Net income was RMB41.1 million (US$5.7 million) in the third quarter of FY 2025, compared to RMB14.6 million in the third quarter of FY 2024. Adjusted net income was RMB37.8 million (US$5.2 million) in the third quarter of FY 2025, compared to RMB31.9 million in the third quarter of FY 2024.

Earnings per share and adjusted earnings per share⁴

Basic and diluted net income per share were both RMB0.25 (US$0.03) in the third quarter of FY 2025, compared to basic and diluted net income per share of RMB0.09 in the third quarter of FY 2024. Basic and diluted adjusted net income per share were RMB0.23 (US$0.03), in the third quarter of FY 2025, compared to RMB0.19 in the third quarter of FY 2024.

Balance Sheet

As of March 31, 2025, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1,134.9 million (US$156.4 million), compared with RMB1,026.3 million as of June 30, 2024.

Recent Developments

Investments in Letsvan

On March 24, 2025, the Company announced that it entered into definitive agreements to invest in Shenzhen Yiqi Culture Co., Ltd., a PRC-based company specializing in IP incubation, copyright commercialization, and the promotion and sales of pop toys. The transaction marks the Company’s strategic entry into the pop toys market and broader consumer goods sector. Upon the completion of the investments in March 2025, Letsvan became a controlled subsidiary of the Company.

Letsvan currently operates a number of established IPs, including “WAKUKU”, “ZIYULI”, “FUNII”, “FIILA” and “PIDOL”, with distribution channels spanning both online and offline platforms across China and Southeast Asian markets. Letsvan’s current growth strategy encompasses three key areas: strengthening collaborations with major retail partners to enhance IP influence and expand sales, developing self-operated retail locations including a recently opened pop-up store at Chaoyang Joy City in Beijing, and building comprehensive online brand and sales capabilities.

International expansion initiatives are underway. Letsvan has already established its footprints in certain Southeast Asian markets and has been exploring opportunities in other overseas markets including the United States. With respect to IPs, Letsvan continues to strengthen internal product incubation and operational capabilities, partner with third-party artists, and collaborate with established IPs to diversify its product portfolio.

Recent product launches include the “WAKUKU Fox and Bunny Trick or Treat”, which commenced offline distribution on May 17, 2025, followed by online channel availability on May 20, 2025. The Beijing Chaoyang Joy City pop-up store launch has generated favorable user response and increased product visibility in the market.

2024 Share Repurchase Program

On June 11, 2024, the Company announced that the Board had approved a share repurchase program of up to US$20.0 million of the Company’s Class A ordinary shares in the form of ADSs for a 12-month period beginning on June 11, 2024 and ending on June 10, 2025 (the “2024 Share Repurchase Program”). As of March 31, 2025, a total of 1.7 million ADSs had been repurchased for an aggregate consideration of US$3.6 million under the 2024 Share Repurchase Program.

2025 Share Repurchase Program

On June 6, 2025, the Company announced that the Board had approved a new share repurchase program of up to US$20.0 million of the Company’s Class A ordinary shares in the form of ADSs for a purchase period beginning from June 11, 2025 and ending on June 30, 2026 (the “2025 Share Repurchase Program”). Repurchases under the 2025 Share Repurchase Program may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means. The repurchases will be subject to all applicable rules and regulations, including Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, as well as the Company’s insider trading policy. The number of ADSs repurchased and the timing of repurchases will also depend on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with the Company’s working capital requirements, general business conditions and other factors. The Board will review the 2025 Share Repurchase Program periodically, and may authorize adjustment of its terms and size or suspend or discontinue the program. The Company plans to fund the repurchases from its existing cash balance.

Conference Call Information

The Company’s management team will hold an earnings conference call at 07:00 A.M. Eastern Time on Friday, June 6, 2025 (07:00 P.M. Beijing Time on the same day) to discuss the financial results.

Listeners may access the call by dialing the following numbers:

International:		1-412-902-4272
United States Toll Free:		1-888-346-8982
Mainland China Toll Free:		4001-201203
Hong Kong Toll Free:		800-905945
Conference ID:		QuantaSing Group Limited

The replay will be accessible through June 13, 2025 by dialing the following numbers:

International:		1-412-317-0088
United States Toll Free:		1-877-344-7529
Replay Access Code:		3611954

A live and archived webcast of the conference call will be available at the Company’s investor relations website at https://ir.quantasing.com.

Non-GAAP Financial Measures

To supplement the Company’s consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, the Company uses gross billings of individual online learning services, adjusted net income and basic and diluted adjusted net income per share as its non-GAAP financial measures. Gross billings of individual online learning services for a specific period represents revenues of the Company’s individual online learning services net of the changes in deferred revenues in such period, further adjusted by value-added tax in such period. Adjusted net income represents net income excluding share-based compensation expenses and remeasurement gain of previously held equity interests inconnection with step acquisitions. Basic and diluted adjusted net income per share represents adjusted net income attributable to QuantaSing Group Limited divided by weighted average number of ordinary shares outstanding during the periods used in computing adjusted net income per share, basic and diluted. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for revenue, net income, net income per share, basic and diluted or other consolidated statements of operations data prepared in accordance with U.S. GAAP. The Company’s definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance. For more information on these non-GAAP financial measures, please see the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this release.

Exchange Rate Information

This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.2567 to US$1.00, the exchange rate on March 31, 2025, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

Safe Harbor Statements

This announcement contains forward-looking statements within the meaning of Section 27A of Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1955. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding QuantaSing’s financial outlook, beliefs and expectations. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases, and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new users and learners and to increase the spending and revenues generated from users and learners; its ability to maintain and enhance the recognition and reputation of its brand; its expectations regarding demand for and market acceptance of its services and products; the expected growth, trends and competition in the markets that the Company operates in; changes in its revenues and certain cost or expense items; PRC governmental policies and regulations relating to the Company’s business and industry, general economic and political conditions in China and globally, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the SEC, including, without limitation, the final prospectus related to the IPO filed with the SEC dated January 24, 2023. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

About QuantaSing Group Limited

QuantaSing is a leading lifestyle solution provider that offers engaging, affordable and accessible online and offline services, as well as consumer products in selected areas that address senior users’ wellness aspirations. QuantaSing has expanded into the pop toys sector and continues to strategically diversify its portfolio by capturing opportunities in promising consumer sectors while maintaining financial discipline.

For more information, please visit: https://ir.quantasing.com.

Contact

Investor Relations
Leah Guo
QuantaSing Group Limited
Email: ir@quantasing.com
Tel: +86 (10) 6493-7857

Robin Yang, Partner
ICR, LLC
Email: QuantaSing.IR@icrinc.com
Phone: +1 (212) 537-0429

_________________________________
¹ Gross billings of individual online learning services is a non-GAAP financial measure. For a reconciliation of revenues of individual online learning services to gross billings of individual online learning services, see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below.
² Adjusted net income is a non-GAAP financial measure. For a reconciliation of net income to adjusted net income, see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below.
³ Effective from the fourth quarter of FY 2024, the Company has introduced “Revenues from Consumer Business” as a separate line item. This revenue was previously included in “Revenues from Others”. The historical revenues presentation has been conformed to the current presentation.
⁴ Basic and diluted adjusted net income per share are non-GAAP financial measures. For a reconciliation of basic and diluted net income per share to basic and diluted adjusted net income per share, see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below.

QUANTASING GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except for share and per share data)

	As of
	June 30, 2024	March 31, 2025	March 31, 2025
	RMB	RMB	US$

ASSETS
Current assets:
Cash and cash equivalents	779,931	985,677	135,830
Restricted cash	160	675	93
Short-term investments	246,195	148,532	20,468
Accounts receivable, net	16,676	37,392	5,153
Amounts due from related parties	4,488	489	67
Inventory, net	6,345	28,120	3,875
Prepayments and other current assets	275,549	173,582	23,920
Total current assets	1,329,344	1,374,467	189,406

Non-current assets:
Property and equipment, net	6,569	11,571	1,595
Long-term investments	9,010	44,428	6,122
Intangible assets, net	–	68,973	9,505
Operating lease right-of-use assets	58,889	29,479	4,062
Deferred tax assets	847	914	126
Goodwill	–	187,598	25,852
Other non-current assets	21,360	5,177	713
Total non-current assets	96,675	348,140	47,975
TOTAL ASSETS	1,426,019	1,722,607	237,381

LIABILITIES
Current liabilities:
Short-term Borrowings	–	14,500	1,998
Accounts payables	62,066	55,219	7,609
Accrued expenses and other current liabilities	190,508	186,084	25,643
Income tax payable	20,399	53,565	7,381
Contract liabilities, current portion	385,227	310,189	42,745
Advance from customers	162,257	148,332	20,441
Operating lease liabilities, current portion	49,099	30,837	4,249
Total current liabilities	869,556	798,726	110,066

Non-current liabilities:
Contract liabilities, non-current portion	11,365	33,495	4,616
Operating lease liabilities, non-current portion	16,989	3,123	430
Deferred tax liabilities	11,625	42,269	5,825
Total non-current liabilities	39,979	78,887	10,871
TOTAL LIABILITIES	909,535	877,613	120,937

QUANTASING GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS- continued (Amounts in thousands, except for share and per share data)

	As of
	June 30, 2024		March 31, 2025		March 31, 2025
	RMB		RMB		US$

MEZZANINE EQUITY
Non-controlling interests with liquidation preferences	–		40,999		5,650

SHAREHOLDERS’ EQUITY
Class A ordinary shares	81		81		11
Class B ordinary shares	34		34		5
Treasury stock	(109,257	)	(41,898	)	(5,774	)
Additional paid-in capital	1,192,474		1,069,620		147,398
Accumulated other comprehensive income	17,313		18,491		2,548
Accumulative deficit	(584,161	)	(335,573	)	(46,243	)
TOTAL QUANTASING GROUP LIMITED SHAREHOLDERS’ EQUITY	516,484		710,755		97,945
Non-controlling interests	–		93,240		12,849
TOTAL SHAREHOLDERS’ EQUITY	516,484		803,995		110,794
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY	1,426,019		1,722,607		237,381

QUANTASING GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Amounts in thousands, except for shares and per share data)

	For the Three Months Ended March 31,						For the Nine Months Ended March 31,
	2024		2025		2025		2024		2025		2025
	RMB		RMB		US$		RMB		RMB		US$

Revenues	945,570		570,706		78,645		2,795,248		2,107,757		290,457
Cost of revenues	(145,848	)	(96,556	)	(13,306	)	(409,058	)	(353,516	)	(48,716	)

Gross Profit	799,722		474,150		65,339		2,386,190		1,754,241		241,741

Operating expenses:
Sales and marketing expenses	(729,620	)	(395,175	)	(54,457	)	(2,006,884	)	(1,317,206	)	(181,516	)
Research and development expenses	(38,840	)	(20,891	)	(2,879	)	(123,655	)	(77,325	)	(10,656	)
General and administrative expenses	(36,390	)	(25,049	)	(3,452	)	(114,211	)	(86,194	)	(11,878	)
Total operating expenses	(804,850	)	(441,115	)	(60,788	)	(2,244,750	)	(1,480,725	)	(204,050	)

(Loss)/Income from operations	(5,128	)	33,035		4,551		141,440		273,516		37,691

Other income:
Interest income	2,513		880		121		8,369		4,040		557
Remeasurement gain of previously held equity interests in connection with step acquisitions	–		8,109		1,117		–		8,109		1,117
Others, net	7,685		15,400		2,122		22,163		31,418		4,330

Income before income tax	5,070		57,424		7,911		171,972		317,083		43,695
Income tax benefit/(expense)	9,560		(16,280	)	(2,243	)	16,948		(68,495	)	(9,439	)

Net income	14,630		41,144		5,668		188,920		248,588		34,256
Net loss attributable to noncontrolling interests	–		1		–		–		1		–
Net income attributable to QuantaSing Group Limited	14,630		41,145		5,668		188,920		248,589		34,256

Other comprehensive income/(loss)
Foreign currency translation adjustments, net of nil tax	423		(289	)	(40	)	(4,954	)	1,178		162
Total other comprehensive income/(loss)	423		(289	)	(40	)	(4,954	)	1,178		162

Total comprehensive income	15,053		40,855		5,628		183,966		249,766		34,418
Total comprehensive loss attributable to noncontrolling interests	–		1		–		–		1		–
Comprehensive income attributable to QuantaSing Group Limited	15,053		40,856		5,628		183,966		249,767		34,418

Net income per ordinary share
– Basic	0.09		0.25		0.03		1.14		1.55		0.21
– Diluted	0.09		0.25		0.03		1.10		1.52		0.21
Weighted average number of ordinary shares used in computing net income per share
– Basic	164,753,256		162,791,862		162,791,862		166,399,349		160,479,027		160,479,027
– Diluted	170,890,581		165,216,173		165,216,173		171,089,530		163,949,787		163,949,787
Share-based compensation expenses included in
Cost of revenues	(2,878	)	(1,431	)	(197	)	(9,945	)	(5,214	)	(719	)
Sales and marketing expenses	(2,779	)	(642	)	(88	)	8,678		(1,540	)	(212	)
Research and development expenses	(3,599	)	(167	)	(23	)	(10,611	)	(2,474	)	(341	)
General and administrative expenses	(8,039	)	(2,571	)	(354	)	(28,961	)	(8,073	)	(1,112	)

QUANTASING GROUP LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands, except for shares and per share data)

The following table below sets forth a reconciliation of revenues to gross billings for the periods indicated:

	For the Three Months Ended March 31,						For the Nine Months Ended March 31,
	2024		2025		2025		2024		2025		2025
	RMB		RMB		US$		RMB		RMB		US$

Revenues of individual online learning services:	828,127		467,247		64,388		2,457,588		1,777,552		244,953
Add: value-added tax	52,986		27,919		3,847		147,665		101,969		14,052
Add: ending deferred revenues⁽¹⁾	744,320		461,026		63,531		744,320		461,026		63,531
Less: beginning deferred revenues⁽¹⁾	(643,929	)	(440,632	)	(60,721	)	(661,360	)	(565,030	)	(77,863	)

Gross billings of individual online learning services	981,504		515,560		71,045		2,688,213		1,775,517		244,673

(1) Deferred revenues include contract liabilities, advance from customers, and refund liability of individual online learning services included in “accrued expenses and other current liabilities”.

QUANTASING GROUP LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS – continued
(Amounts in thousands, except for shares and per share data)

The following table below sets forth a reconciliation of net income to adjusted net income and basic and diluted net income per share to basic and diluted adjusted net income per share for the periods indicated:

	For the Three Months Ended March 31,					For Nine Months Ended March 31,
	2024	2025		2025		2024		2025		2025
	RMB	RMB		US$		RMB		RMB		US$

Net income	14,630	41,144		5,668		188,920		248,588		34,256
Add: Share-based compensation expenses	17,295	4,811		662		40,839		17,301		2,384
Less: Remeasurement gain of previously held equity interests in connection with step acquisitions	–	(8,109	)	(1,117	)	–		(8,109	)	(1,117	)

Adjusted net income	31,925	37,846		5,213		229,759		257,780		35,523
Attributable to noncontrolling interests	–	1		–		–		1		–
Adjusted net income attributable to QuantaSing Group Limited	31,925	37,847		5,213		229,759		257,781		35,523

Weighted average number of ordinary shares used in computing net income per share
– Basic	164,753,256	162,791,862		162,791,862		166,399,349		160,479,027		160,479,027
– Diluted	170,890,581	165,216,173		165,216,173		171,089,530		163,949,787		163,949,787
Weighted average number of ordinary shares used in computing adjusted net income per share
– Basic	164,753,256	162,791,862		162,791,862		166,399,349		160,479,027		160,479,027
– Diluted	170,890,581	165,216,173		165,216,173		171,089,530		163,949,787		163,949,787

Net income per ordinary share
– Basic	0.09	0.25		0.03		1.14	1.55			0.21
– Diluted	0.09	0.25		0.03		1.10	1.52			0.21
Non-GAAP adjustments to net income per ordinary share
– Basic	0.10	(0.02	)	0.00		0.24	0.06			0.01
– Diluted	0.10	(0.02	)	0.00		0.24	0.05			0.01
Adjusted net income per ordinary share
– Basic	0.19	0.23		0.03		1.38	1.61			0.22
– Diluted	0.19	0.23		0.03		1.34	1.57			0.22

The MIL Network –

June 6, 2025

MIL-OSI: IDT Corporation Reports Third Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Gross Profit +15% Year-over-Year to $112 MM; Record Gross Profit Margin of 37.1%
Income from Operations +133% to $27 MM; Adjusted EBITDA +57% to $32 MM
GAAP EPS Increased to $0.86 from $0.22; Non-GAAP EPS Increased to $0.90 from $0.38

NEWARK, NJ, June 05, 2025 (GLOBE NEWSWIRE) — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications solutions, today reported results for its third quarter fiscal year 2025, the three months ended April 30, 2025.

THIRD QUARTER HIGHLIGHTS

(Throughout this release, unless otherwise noted, results for the third quarter of fiscal year 2025 (3Q25) are compared to the third quarter of fiscal year 2024 (3Q24). All earnings per share (EPS) and other ‘per share’ results are per diluted share.)

●

Key Businesses / Segments

○

NRS

■

Recurring revenue: +23% to $29.4 million;

■

Income from operations: +29% to $6.2 million;

■

Adjusted EBITDA: +29% to $7.2 million;

■

‘Rule of 40’ score: 49;

○

BOSS Money / Fintech segment

■

BOSS Money transactions: +27% to 6.0 million;

■

BOSS Money revenue: +25% to $34.4 million;

■

Fintech segment gross profit: +31% to $22.6 million;

■

Fintech segment income from operations: +$4.9 million, to $4.3 million;

■

Fintech segment Adjusted EBITDA: +$4.8 million, to $5.0 million;

○

net2phone

■

Subscription revenue: +7% to $21.5 million (+11% on a constant currency basis);

■

Income from operations: +188% to $1.4 million;

■

Adjusted EBITDA: +50% to $3.2 million;

○

Traditional Communications

■

Gross profit: +5% to $43.4 million;

■

Income from operations: +39% to $17.3 million;

■

Adjusted EBITDA: +30% to $19.3 million;

●

IDT Consolidated

○

Revenue: +1% to $302.0 million;

○

Gross profit (GP) / margin: GP +15% to $112.0 million; GP margin +470 bps to 37.1%;

○

Income from operations: +133% to $26.6 million;

○

GAAP EPS: Increased to $0.86 from $0.22;

○

Non-GAAP EPS: Increased to $0.90 from $0.38;

○

Adjusted EBITDA: +57% to $32.2 million;

○

CapEx: +14% to $5.4 million.

REMARKS BY SHMUEL JONAS, CEO

IDT’s third quarter was solid, with strong year-over-year gains, while slightly softer than our second quarter in part because of expected seasonal factors. Year-over-year revenue growth, and continued expansion of each of our business segments’ bottom-line results, drove a 133% year-over-year increase in consolidated income from operations, a 57% increase in consolidated Adjusted EBITDA, and a 290% increase in EPS.

At NRS, recurring revenue increased 23% year-over-year, powered by a 37% revenue increase from NRS’ largest vertical, Merchant Services, and a 33% increase in SaaS Fees, which more than offset a 12% decrease in Advertising & Data revenue. Income from operations and Adjusted EBITDA were both up by 29% year-over-year, and the business has generated a record $32 million in Adjusted EBITDA over the past twelve months.

Looking ahead, we continue to focus on developing new offerings that leverage the NRS platform to enable retailers to compete more effectively with large retail chains. For instance, independent neighborhood retailers have not yet meaningfully benefitted from the consumer shift to online ordering and delivery. We are working to change that by integrating our network with online ordering and delivery platforms, enabling retailers on the NRS network to provide hyper-fast local delivery of sundries and prepared foods. The 100 or so retailers we have signed up so far are already receiving, in aggregate, over 2000 delivery orders a week.

BOSS Money, our remittance platform, increased transactions by 27% and revenue by 25%. The growth rates have been impacted by the deliberate shift we made last summer to prioritize gross profit per transaction in our retail channel rather than market share, and by a recent shift in customer preferences toward larger send amounts per remittance through fewer transactions. The Fintech segment, which includes BOSS Money and early stage fintech initiatives, generated over $5 million in Adjusted EBITDA – compared to $244 thousand in the year ago quarter. Looking ahead, Boss Money is working on initiatives to drive sustained long-term growth and innovations that reduce cross border friction and increase profitability.

net2phone continued its steady progress with balanced growth in the U.S., Brazil, and Mexico. The team has done a great job growing its business while holding the line on overhead. net2phone’s Adjusted EBITDA margin reached 15% in 3Q25. net2phone began to offer its AI Agents this quarter and customers are already seeing the benefits, including enhanced efficiency. Even as we deploy AI Agents refined for specific market verticals, we are preparing to launch another AI-powered service which internally we refer to as ‘Coach.’ We think that it will be very successful.

In our Traditional Communications segment, income from operations and Adjusted EBITDA both jumped by over 30% year-over-year to $17.3 million and $19.3 million, respectively, underscoring that this segment continues to be a long-term cash generator.

I want to wrap up by thanking the millions of customers who put some of their hard-earned wages to work through our BOSS offerings, and the business customers around the world who rely on us to enhance their businesses and communications. Our ability to provide these services depends on the dedication of our employees who have been executing and innovating on so many fronts, and on our stockholders who entrust us with their capital. I am grateful for your continued patronage and support.

(This release discloses certain Non-GAAP financial measures (Adjusted EBITDA, Non-GAAP EPS and NRS ‘Rule of 40’) as well as certain Key Performance Metrics (net2phone subscription revenue, netphone constant currency subscription revenue growth rate, net2phone operating margin, net2phone Adjusted EBITDA margin, NRS Monthly Average Recurring Revenue, and BOSS Money transactions and digital send volume). Please see the explanations of those measures and metrics, the reasons for their inclusion and reconciliations at the end of this release.)

3Q25 RESULTS BY SEGMENT

National Retail Solutions (NRS)

National Retail Solutions (NRS)
(Terminals and accounts at end of period. $ in millions, except for average revenue per terminal)

	3Q25			2Q25			3Q24			3Q25-3Q24 (% Δ)
Terminals and payment processing accounts
Active POS terminals		35,600			34,800			30,300			+17.6	%
Payment processing accounts		25,500			23,900			19,500			+31.1	%

Recurring revenue
Merchant Services & Other	$	19.7		$	18.1		$	14.4			+37.3	%
Advertising & Data	$	5.9		$	10.0		$	6.7			(12.3		)%
SaaS Fees	$	3.9		$	3.5		$	2.9			+32.8		%
Total recurring revenue	$	29.4		$	31.6		$	24.0			+22.9	%
POS terminal sales	$	1.7		$	1.3		$	1.8			(2.9		)%
Total revenue	$	31.1		$	33.0		$	25.7			+21.1	%

Monthly average recurring revenue per terminal	$	279		$	310		$	271			+3.0		%

Gross profit	$	28.4		$	30.3		$	22.1			+28.4		%
Gross profit margin		91.3	%		91.8	%		86.1	%		+520		bps
Technology & development	$	2.3		$	2.2		$	1.7			+32.5		%
SG&A	$	20.0		$	19.0		$	15.7			+27.8		%
Income from operations	$	6.2		$	9.1		$	4.8			+29.3		%
Adjusted EBITDA	$	7.2		$	10.1		$	5.6			+28.6		%
CapEx	$	1.9		$	0.9		$	0.9			+115.2		%

NRS Take-Aways / Updates:

●

NRS added approximately 900 net active terminals and approximately 1,600 net payment processing accounts during 3Q25. As mentioned in the prior quarter’s earnings release, net active terminal additions for 3Q25 included churn of approximately 300 terminals operating in seasonal stores.

●

The 37% year-over-year increase in Merchant Services & Other revenue was driven by the increase in payment processing accounts, and by higher merchant services revenue per account, reflecting in part the ongoing, gradual migration of customer payment preference from cash to credit and debit cards.

●

NRS Advertising & Data revenue declined 12.3% year-over-year due to NRS’ decision to slow sales to one large programmatic partner in order to limit potential bad debt risk exposure. NRS’ direct channel advertising sales, as well as sales to other programmatic partners, remained robust.

●

NRS has begun rolling out the first of several planned integrations of its POS platform with leading online ordering and delivery services. The first integration, with DoorDash, went live this quarter.

Fintech

Fintech
(Transactions and $s in millions, except for average revenue per transaction)

	3Q25			2Q25			3Q24			3Q25-3Q24 (% Δ, $)
BOSS Money transactions		6.0			5.7			4.7				+27.0	%

Fintech Revenue
BOSS Money	$	34.4		$	33.5		$	27.6				+24.7	%
Other	$	4.2		$	3.3		$	3.9				+7.0	%
Total Revenue	$	38.6		$	36.8		$	31.5				+22.5	%

Gross profit	$	22.6		$	21.7		$	17.3				+30.6	%
Gross profit margin		58.5	%		58.9	%		54.9	%			+360	bps
Technology & development	$	2.2		$	2.3		$	2.5				(11.9	)%
SG&A	$	16.0		$	16.3		$	15.3				+5.2	%
Income (loss) from operations	$	4.3		$	3.1		$	(0.6	)		+$	4.9
Adjusted EBITDA	$	5.0		$	3.9		$	0.2			+$	4.8
CapEx	$	0.8		$	0.8		$	1.0				(19.8	)%

Fintech Take-Aways:

●	The 27% increase in BOSS Money transactions comprised a 32% year-over-year increase in digital channel transactions and an 8% increase in retail channel transactions.

●	BOSS Money revenue increased 25% year-over-year driven by a 31% increase in digital channel revenue.

●

Digital channel send volume, or the amount of principal transferred by BOSS Money customers using the BOSS Money and BOSS Revolution apps, grew 40% year-over-year as customers increased their amount sent per transaction while reducing the frequency of transactions. BOSS Money is testing strategies to optimize pricing given this recent dynamic.

●	The robust increases in the Fintech segment’s income from operations and Adjusted EBITDA were driven primarily by BOSS Money revenue and gross margin growth, coupled with improved operating leverage as BOSS Money continues to scale.

net2phone

net2phone
(Seats in thousands at end of period. $ in millions)

	3Q25			2Q25			3Q24			3Q25-3Q24 (% Δ)
Seats		415			410			384			+7.9	%

Revenue
Subscription revenue	$	21.5		$	21.0		$	20.0			+7.4	%
Other revenue	$	0.5		$	0.5		$	0.6			(25.9	)%
Total Revenue	$	22.0		$	21.5		$	20.7			+6.4	%

Gross profit	$	17.5		$	17.0		$	16.4			+6.9	%
Gross profit margin		79.6	%		79.2	%		79.2	%		+40	bps
Technology & development	$	2.9		$	2.8		$	2.8			+4.8	%
SG&A	$	13.0		$	13.0		$	13.0			(0.3	)%
Income from operations	$	1.4		$	1.1		$	0.5			+188	%
Adjusted EBITDA	$	3.2		$	2.9		$	2.1			+50.2	%
CapEx	$	1.4		$	1.8		$	1.6			(12.5	)%

net2phone Take-Aways:

●

The 8% year over year increase in total seats served was powered by continued expansion in key markets led by the U.S., Brazil, and Mexico. CCaaS seats served, which generate significantly higher revenue and margin per seat, increased by 9% year-over year.

●

Subscription revenue increased by 7% year-over-year. The increase was tempered by the FX impact of a strengthened U.S. dollar versus local currencies in Latin America. On a constant currency basis, subscription revenue increased by 11% year over year, significantly higher than its rate of seat growth, as net2phone focuses on increasing ARPU.

●

Income from operations increased 188% and Adjusted EBITDA increased 50% year-over-year, as operating margin increased to 6% from 2%, and Adjusted EBITDA margin increased to 15% from 10% in 3Q24.

●

In 3Q25, net2phone began to deploy AI Agents, scalable virtual assistants providing exceptional customer experiences across sales, support, and administrative tasks. AI Agents have the potential to become significant revenue growth drivers in the coming quarters.

●

net2phone is also preparing to launch an AI-powered offering that analyzes interactions to deliver real-time insights and personalized coaching for optimized performance.

Traditional Communications

Traditional Communications
($ in millions)

	3Q25			2Q25			3Q24			3Q25-3Q24 (% Δ)
Revenue
IDT Digital Payments	$	102.6		$	101.6		$	101.6			+1.0	%
BOSS Revolution	$	51.7		$	53.3		$	63.2			(18.1	)%
IDT Global	$	50.0		$	51.3		$	50.1			(0.0	)%
Other	$	5.9		$	5.8		$	6.9			(14.9	)%
Total Revenue	$	210.2		$	212.0		$	221.7			(5.2	)%

Gross profit	$	43.4		$	43.1		$	41.2			+5.3	%
Gross profit margin		20.7	%		20.3	%		18.6	%		+210	bps
Technology & development	$	5.4		$	5.4		$	5.6			(4.3	)%
SG&A	$	20.5		$	19.4		$	22.7			(9.5	)%
Income from operations	$	17.3		$	18.1		$	12.5			39.2	%
Adjusted EBITDA	$	19.3		$	20.2		$	14.9			30.1	%
CapEx	$	1.3		$	1.2		$	1.2			+5.6	%

Traditional Communications Take-Aways:

●	Even as revenue decreased continuing an expected trend, gross profit increased year over year and sequentially.

●	Income from operations and Adjusted EBITDA benefitted from the growth in gross profit and the reduction in SG&A expense.

OTHER FINANCIAL RESULTS

Consolidated results for all periods presented include corporate overhead. In 3Q25, Corporate G&A expense increased to $2.7 million from $2.3 million in 3Q24.

As of April 30, 2025, IDT held $223.8 million in cash, cash equivalents, debt securities, and current equity investments. Also at April 30, 2025, current assets totaled $498.3 million and current liabilities totaled $287.2 million. The Company had no outstanding debt at the quarter end.

Net cash provided by operating activities was $75.7 million in 3Q25 compared to $9.5 million in 3Q24. Exclusive of changes in customer funds deposits at IDT’s Fintech segment, net cash provided by operating activities was $66.1 million in 3Q25 compared to $8.2 million in 3Q24. The large, year-over-year increase in cash reflects, for the most part, the timing of disbursement prefunding payments made by IDT to cover anticipated BOSS Money weekly remittance activity.

Capital expenditures increased to $5.4 million in 3Q25 from $4.7 million in 3Q24.

DIVIDEND

The Board of Directors of IDT Corporation has approved payment of a quarterly dividend of $0.06 on IDT’s Class A and Class B Common stock. Payment will be made on June 18, 2025 to stockholders of record at the close of business on June 9^th.

IDT EARNINGS ANNOUNCEMENT INFORMATION

This release is available for download in the “Investors & Media” section of the IDT Corporation website (https://www.idt.net/investors-and-media) and has been filed on a current report (Form 8-K) with the SEC.

IDT will host an earnings conference call beginning at 5:00 PM Eastern today with management’s discussion of results followed by Q&A with investors. To listen to the call and participate in the Q&A, dial 1-888-506-0062 (toll-free from the U.S.) or 1-973-528-0011 (international) and provide the following access code: 491722.

A replay of the conference call will be available approximately three hours after the call concludes through June 19, 2025. To access the call replay, dial 1-877-481-4010 (toll-free from the U.S.) or 1-919-882-2331 (international) and provide this replay passcode: 52353. The replay will also be accessible via streaming audio at the IDT investor relations website.

ABOUT IDT CORPORATION

IDT Corporation (NYSE: IDT) is a global provider of fintech and communications solutions through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; BOSS Money facilitates innovative international remittances and fintech payments solutions; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; IDT Digital Payments and the BOSS Revolution calling service make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.

All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.

CONTACT

IDT Corporation Investor Relations
Bill Ulrey
william.ulrey@idt.net
973-438-3838

IDT CORPORATION

CONSOLIDATED BALANCE SHEETS

	April 30, 2025			July 31, 2024
	(Unaudited)
	(in thousands, except per share data)
Assets
Current assets:
Cash and cash equivalents	$	199,948		$	164,557
Restricted cash and cash equivalents		123,129			90,899
Debt securities		18,683			23,438
Equity investments		5,187			5,009
Trade accounts receivable, net of allowance for credit losses of $8,416 at April 30, 2025 and $6,352 at July 31, 2024		43,084			42,215
Settlement assets, net of reserve of $1,869 at April 30, 2025 and $1,866 at July 31, 2024		25,160			22,186
Disbursement prefunding		43,381			30,736
Prepaid expenses		13,837			17,558
Other current assets		25,865			25,927
Total current assets		498,274			422,525
Property, plant, and equipment, net		38,980			38,652
Goodwill		26,454			26,288
Other intangibles, net		5,372			6,285
Equity investments		6,904			6,518
Operating lease right-of-use assets		2,013			3,273
Deferred income tax assets, net		16,106			35,008
Other assets		6,805			11,546
Total assets	$	600,908		$	550,095

Liabilities, redeemable noncontrolling interest, and equity
Current liabilities:
Trade accounts payable	$	17,250		$	24,773
Accrued expenses		91,408			103,176
Deferred revenue		27,513			30,364
Customer funds deposits		121,765			91,893
Settlement liabilities		14,105			12,764
Other current liabilities		15,121			16,374
Total current liabilities		287,162			279,344
Operating lease liabilities		1,213			1,533
Other liabilities		1,682			2,662
Total liabilities		290,057			283,539
Commitments and contingencies
Redeemable noncontrolling interest		11,357			10,901
Equity:
IDT Corporation stockholders’ equity:
Preferred stock, $.01 par value; authorized shares—10,000; no shares issued		—			—
Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at April 30, 2025 and July 31, 2024		33			33
Class B common stock, $.01 par value; authorized shares—200,000; 28,528 and 28,177 shares issued and 23,656 and 23,684 shares outstanding at April 30, 2025 and July 31, 2024, respectively		285			282
Additional paid-in capital		307,757			303,510
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,872 and 4,493 shares of Class B common stock at April 30, 2025 and July 31, 2024, respectively		(143,853	)		(126,080	)
Accumulated other comprehensive loss		(19,812	)		(18,142	)
Retained earnings		141,753			86,580
Total IDT Corporation stockholders’ equity		286,163			246,183
Noncontrolling interests		13,331			9,472
Total equity		299,494			255,655
Total liabilities, redeemable noncontrolling interest, and equity	$	600,908		$	550,095

IDT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended April 30,						Nine Months Ended April 30,
	2025			2024			2025			2024
	(in thousands, except per share data)

Revenues	$	301,985		$	299,643		$	914,901		$	896,946
Direct cost of revenues		190,023			202,599			583,201			608,982
Gross profit		111,962			97,044			331,700			287,964
Operating expenses:
Selling, general and administrative (i)		72,267			68,962			214,039			200,685
Technology and development (i)		12,744			12,640			38,115			37,975
Severance		190			779			600			1,648
Other operating expense, net		175			3,231			403			3,041
Total operating expenses		85,376			85,612			253,157			243,349
Income from operations		26,586			11,432			78,543			44,615
Interest income, net		1,566			1,162			4,347			3,201
Other income (expense), net		2,608			(3,273	)		2,533			(6,326	)
Income before income taxes		30,760			9,321			85,423			41,490
Provision for income taxes		(7,798	)		(2,979	)		(21,766	)		(10,918	)
Net income		22,962			6,342			63,657			30,572
Net income attributable to noncontrolling interests		(1,270	)		(791	)		(4,448	)		(2,937	)
Net income attributable to IDT Corporation	$	21,692		$	5,551		$	59,209		$	27,635
Earnings per share attributable to IDT Corporation common stockholders:
Basic	$	0.86		$	0.22		$	2.35		$	1.10
Diluted	$	0.86		$	0.22		$	2.34		$	1.09
Weighted-average number of shares used in calculation of earnings per share:
Basic		25,165			25,345			25,177			25,233
Diluted		25,249			25,516			25,312			25,380

(i) Stock-based compensation included in total operating expenses	$	946		$	2,118		$	2,720		$	5,375

IDT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months Ended April 30,
	2025			2024
	(in thousands)
Operating activities
Net income	$	63,657		$	30,572
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		15,702			15,256
Deferred income taxes		18,902			8,830
Provision for credit losses, doubtful accounts receivable, and reserve for settlement assets		4,465			3,010
Stock-based compensation		2,720			5,375
Other		1,735			4,065
Change in assets and liabilities:
Trade accounts receivable		(4,649	)		(9,000	)
Settlement assets, disbursement prefunding, prepaid expenses, other current assets, and other assets		(8,932	)		6,797
Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities		(19,486	)		(10,467	)
Customer funds deposits		25,327			1,243
Deferred revenue		(3,382	)		(2,903	)
Net cash provided by operating activities		96,059			52,778
Investing activities
Capital expenditures		(15,507	)		(13,621	)
Purchase of convertible preferred stock in equity method investment		(926	)		(1,513	)
Purchases of debt securities and equity investments		(29,083	)		(27,593	)
Proceeds from maturities and sales of debt securities and redemptions of equity investments		35,005			41,527
Net cash used in investing activities		(10,511	)		(1,200	)
Financing activities
Dividends paid		(4,036	)		(1,269	)
Distributions to noncontrolling interests		(100	)		(62	)
Proceeds from borrowings under revolving credit facility		24,551			32,864
Repayment of borrowings under revolving credit facility.		(24,551	)		(32,864	)
Purchase of restricted shares of net2phone common stock		—			(3,558	)
Proceeds from exercise of stock options		—			172
Repurchases of Class B common stock		(17,773	)		(7,207	)
Net cash used in financing activities		(21,909	)		(11,924	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents		3,982			(5,632	)
Net increase in cash, cash equivalents, and restricted cash and cash equivalents		67,621			34,022
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period		255,456			198,823
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	$	323,077		$	232,845

Supplemental schedule of non-cash financing activities
Shares of the Company’s Class B common stock issued to executive officers for bonus payments	$	1,824		$	1,495
Value of the Company’s Class B common stock exchanged for National Retail Solutions shares	$	442		$	6,254
Shares of the Company’s Class B common stock issued for business acquisition	$	—		$	100

Reconciliation of Non-GAAP Financial Measures for the Third Quarter Fiscal 2025 and 2024

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT also disclosed (a) Adjusted EBITDA for 3Q25, 2Q25, and 3Q24, (b) non-GAAP earnings per diluted share (Non-GAAP EPS) for 3Q25 and 3Q24, and (c) NRS’ and Fintech segment’s ‘Rule of 40’ score for 3Q25. These are non-GAAP financial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP. The following explains these terms and their respective reconciliations to the most directly comparable GAAP measures.

Generally, a non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

IDT’s measure of Non-GAAP EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares. IDT’s measure of non-GAAP net income starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expenses, and deducts other operating gains. These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2025 and fiscal 2024 periods.

Management believes that IDT’s Adjusted EBITDA and Non-GAAP EPS are measures which provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT’s or the relevant segment’s core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA and Non-GAAP EPS to evaluate operating performance in relation to IDT’s competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allow for greater transparency of the underlying supplemental information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting.

Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and amortization, is a useful indicator of its current performance.

Severance expense is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT’s and its segments’ businesses to be focused on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT’s core and continuing operations.

Other operating expense, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Other operating expense, net in 3Q25, 2Q25, and 3Q24 primarily includes legal fees related to Straight Path Communications Inc.’s stockholders’ class action and equipment write-offs. From time-to-time, IDT may have gains or incur costs related to non-routine legal, tax, and other matters, however, these various items generally do not occur each quarter. IDT believes the gain and losses from these non-routine matters are not components of IDT’s or the relevant segment’s core operating results.

Stock-based compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT’s calculation of Non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results per share of IDT’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.

Adjusted EBITDA and Non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA and Non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.

The ‘Rule of 40’ score is a metric used to evaluate the performance of SaaS providers. It postulates that a SaaS provider’s revenue growth rate plus its EBITDA margin should equal or exceed 40 percent. The ‘Rule of 40’ is typically used to assess a company’s balance between growth and profitability. A total of over 40 is thought to indicate a healthy combination of expansion and financial stability, making it a useful tool for management and investors to gauge the potential for long-term success and make informed decisions about resource allocation and business strategy.

NRS’ ‘Rule of 40’ score is computed by adding (a) the growth rate of NRS’ recurring revenue for the relevant period compared to the corresponding year ago period to (b) NRS’ Adjusted EBITDA margin for the twelve month period through the end of the current period. NRS’ recurring revenue is calculated by subtracting NRS’ revenue from POS terminal sales from its total GAAP revenue. Adjusted EBITDA is a non-GAAP measure as discussed above. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by GAAP revenue for the relevant period.

Following are reconciliations of Adjusted EBITDA and Non-GAAP EPS to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, (i) income (loss) from operations for IDT’s reportable segments and (ii) net income for IDT on a consolidated basis, and (b) for Non-GAAP EPS, diluted earnings per share. Also following is NRS’ ‘Rule of 40’ score computation including the reconciliation of NRS’ Adjusted EBITDA to the most directly comparable GAAP measure, NRS’ income from operations.

IDT Corporation
Reconciliation of Net Income to Adjusted EBITDA
(unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

	Total IDT Corporation			Traditional Communica-tions		net2phone		NRS		Fintech		Corporate
Three Months Ended April 30, 2025 (3Q25)
Net income attributable to IDT Corporation	$	21.7
Adjustments:
Net income attributable to noncontrolling interests		1.3
Net income		23.0
Provision for income taxes		7.8
Income before income taxes		30.8
Interest income, net		(1.6	)
Other income, net		(2.6	)
Income (loss) from operations		26.6		$	17.3	$	1.4	$	6.2	$	4.3	$	(2.6	)
Depreciation and amortization		5.2			1.9		1.6		1.0		0.7		–
Other operating expense, net		0.2			–		0.2		–		–		–
Severance expense		0.2			0.2		–		–		–		–
Adjusted EBITDA	$	32.2		$	19.3	$	3.2	$	7.2	$	5.0	$	(2.6	)

	Total IDT Corporation			Traditional Communica-tions		net2phone		NRS		Fintech		Corporate
Three Months Ended January 31, 2025 (2Q25)
Net income attributable to IDT Corporation	$	20.3
Adjustments:
Net income attributable to noncontrolling interests		1.9
Net income		22.2
Provision for income taxes		7.7
Income before income taxes		29.9
Interest income, net		(1.4	)
Other income, net		(0.2	)
Income (loss) from operations		28.3		$	18.1	$	1.1	$	9.1	$	3.1	$	(3.1	)
Depreciation and amortization		5.2			1.9		1.6		1.0		0.8		–
Other operating expense, net		0.2			–		0.2		–		–		–
Severance expense		0.2			0.2		–		–		–		–
Adjusted EBITDA	$	34.0		$	20.2	$	2.9	$	10.1	$	3.9	$	(3.1	)

IDT Corporation
Reconciliation of Net Income to Adjusted EBITDA
(unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

	Total IDT Corporation			Traditional Communica-tions		net2phone		NRS		Fintech			Corporate
Three Months Ended April 30, 2024 (3Q24)
Net income attributable to IDT Corporation	$	5.6
Adjustments:
Net income attributable to noncontrolling interests		0.8
Net income		6.3
Provision for income taxes		3.0
Income before income taxes		9.3
Interest income, net		(1.2	)
Other expense, net		3.3
Income (loss) from operations		11.4		$	12.5	$	0.5	$	4.8	$	(0.6	)	$	(5.7	)
Depreciation and amortization		5.1			2.0		1.6		0.8		0.7			–
Severance expense		0.8			0.4		0.1		–		–			0.3
Other operating expense, net		3.2			–		–		–		0.1			3.2
Adjusted EBITDA	$	20.6		$	14.9	$	2.1	$	5.6	$	0.2		$	(2.3	)

IDT Corporation
Reconciliation of Earnings per share to Non-GAAP EPS
(unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.

	3Q25			3Q24

Net income attributable to IDT Corporation	$	21.7		$	5.6
Adjustments (add) subtract:
Stock-based compensation		(0.9	)		(2.1	)
Severance expense		(0.2	)		(0.8	)
Other operating expense, net		(0.2	)		(3.2	)
Total adjustments		(1.3	)		(6.1	)
Income tax effect of total adjustments		(0.3	)		(2.0	)
		1.0			4.1
Non-GAAP net income	$	22.7		$	9.7

Earnings per share:
Basic	$	0.86		$	0.22
Total adjustments		0.04			0.16
Non-GAAP – basic	$	0.90		$	0.38

Weighted-average number of shares used in calculation of basic earnings per share		25.2			25.3

Diluted	$	0.86		$	0.22
Total adjustments		0.04			0.16
Non-GAAP – diluted	$	0.90		$	0.38

Weighted-average number of shares used in calculation of diluted earnings per share		25.2			25.5

IDT Corporation
NRS’ ‘Rule of 40’ Score
For 3Q25
(unaudited) in millions. Figures may not foot due to rounding to millions.

	4Q24		1Q25		2Q25		3Q25		Trailing Twelve Months (TTM) 3Q25

Reconciliation of NRS’ Income from Operations to Adjusted EBITDA

Income from operations	$	6.0	$	6.6	$	9.1	$	6.2	$	28.0
Depreciation and amortization		0.9		1.0		1.0		1.0		3.9
Other operating expense, net		0.2		–		–		–		0.2
Adjusted EBITDA	$	7.1	$	7.6	$	10.1	$	7.2	$	32.0

	3Q25			3Q24

NRS’ ‘Rule of 40’ Score

NRS recurring revenue	$	29.4		$	24.0
NRS other revenue		1.7			1.8
NRS total revenue	$	31.1		$	25.7

NRS recurring revenue growth rate		23	%

NRS TTM Adjusted EBITDA from above	$	32.0
NRS TTM total revenue		122.7
NRS TTM Adjusted EBITDA margin		26	%

Rule of 40		49	%

Explanation of Key Performance Metrics

net2phone’s subscription revenue is calculated by subtracting net2phone’s equipment revenue and revenue generated by a legacy SIP trunking offering in Brazil from its revenue in accordance with GAAP. net2phone’s cloud communications and contact center offerings are priced on a per-seat basis, with customers paying based on the number of users in their organization. The number of seats served and subscription revenue trends and comparisons between periods are used in the analysis of net2phone’s revenues and direct cost of revenues and are strong indications of the top-line growth and performance of the business.

Constant currency as it relates to revenue provides a framework for assessing net2phone’s performance that excludes the effect of foreign currency rate fluctuations. To determine net2phone’s subscription revenue growth on a constant currency basis, current period revenues from entities reporting in currencies other than U.S. Dollars (USD) were converted to USD at the average monthly exchange rates in effect during the prior fiscal year’s comparative period instead of the average monthly exchange rates in effect during the current period.

net2phone’s operating margin is calculated by dividing GAAP income from operations by GAAP revenue for the period indicated. Operating margin measures the percentage that each dollar of revenue contributes to profitability. Operating margin is useful for evaluating current period profitability relative to sales, for comparisons to prior period performance, for forecasting future income from operations levels based on projected levels of sales, and for comparing net2phone’s relative profitability to its competitors and peers.

net2phone’s Adjusted EBITDA margin is calculated by dividing net2phone’s Adjusted EBITDA, a Non-GAAP measure, by net2phone’s GAAP revenue for the comparable quarter or period. Adjusted EBITDA margin measures the percentage that each dollar of revenue contributes to profitability before interest, taxes, depreciation and amortization, and other adjustments as described in the Reconciliation of Non-GAAP Financial Measures. net2phone’s Adjusted EBITDA margin is useful for evaluating current period profitability relative to sales, for comparisons to prior period performance, for forecasting future Adjusted EBITDA levels based on projected levels of sales, and for comparing net2phone’s relative profitability to its competitors and peers.

NRS’ Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring revenue as defined above by the average number of active POS terminals during the period. The average number of active POS terminals is calculated by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Recurring revenue and Monthly Average Recurring Revenue per Terminal are useful for comparisons of NRS’ revenue and revenue per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the customer base.

BOSS Money transactions are a nonfinancial metric that measures customer usage during a reporting period. BOSS Money’s digital send volume is the aggregate amount of principal remitted by BOSS Money’s digital customers – those using the BOSS Money and BOSS Revolutions apps to originate remittances. Digital send volume is a key metric for evaluating the operational performance of the digital channel of the remittance business, and for comparing the performance of BOSS Money’s digital channel to competitors in the remittance business as well as to performance to other temporal periods.

# # #

The MIL Network –

June 6, 2025

MIL-OSI United Kingdom: EPIC FIVE-YEAR BRIAN FRIEL CENTENARY CELEBRATION BEGINS THIS AUGUST WITH 35 PERFORMANCES OF FIVE

Source: Northern Ireland – City of Derry

EPIC FIVE-YEAR BRIAN FRIEL CENTENARY CELEBRATION BEGINS THIS AUGUST WITH 35 PERFORMANCES OF FIVE

5 June 2025

Audiences to experience Brian Friel’s award winning plays – Dancing at Lughnasa, Transla1ons Faith Healer – in the places that inspired them and two rarities, Volunteers (a co-production with The Playhouse Derry) on its 50th anniversary and The Home Place on its 20th anniversary .

Special Closing 50th anniversary performances of Friel’s Volunteers and the poetry collection North by close friend and colleague Seamus Heaney across Derry~Londonderry

Festival spreads into a 19th century ghost village in Donegal’s Gaeltacht (Friel’s Transla1ons), Derry’s Bogside (Heaney’s North) and Ebrington Keep (Friel’s Volunteers) and the school by the house in Glenties which became the setting for Dancing at Lughnasa.

Dancing at Lughnasa to open on the festival day of Lughnasa, 1 August, complemented by a four-day community led-festival for the beginning of the harvest season in Glenties.

FrielDays features 365 performances in 100 productions of 29 Brian Friel plays from 2025 until 2029, the centenary of Brian Friel’s birth in Omagh Northern Ireland.

Friel is the ultimate ‘shared island’ dramatist, the 86 years of his life shared almost equally between Northern Ireland and the Republic of Ireland.

LAST DAYS OF EARLY BIRD TICKETS: ON SALE AT WWW.ARTSOVERBORDERS.COM . For tickets and full information please visit www.artsoverborders.com

An unprecedented five-year theatrical celebra5on building to the centenary of one of Ireland’s great literary figures, Brian Friel (1929-2015), will begin this summer.

FrielDays – A Homecoming will begin with a 35th anniversary production of his most celebrated play, Dancing at Lughnasa, staged just metres from the house in which it is set, and close with a combined 50th anniversary celebration of the work of Ireland’s greatest poet – and Friel’s close friend – Seamus Heaney.

Curated by Ireland’s Arts Over Borders, FrielDays will bring 29 plays to loca5ons of resonance across Brian Friel’s homeland of the three north-west border coun5es of Donegal, Tyrone and Derry, a part of Ireland he rarely left.

FrielDays will build each year adding new plays and places, so that by 2029, the centenary of Friel’s birth, all 29 plays will be performed across the full calendar year Five anniversary plays will be rolled out this August, with each opening at the time of year in which it was set by Friel and taking place in resonant settings which will become a newly chosen ‘Ballybeg’ and ‘Ballymore’, the fictional towns at the heart of 14 of Friel’s 29 plays.

On its 35th anniversary, Dancing at Lughnasa will be presented at St Columba’s School in Glenties, Co. Donegal, close to The Laurels, the home of Friel’s grandparents and the five daughters who inspired the play’s central characters, the Mundy sisters. In 1990, Dancing at Lughnasa opened to widespread acclaim and, soon after garnered multiple theatrical awards, and received further plaudits when it was adapted for a film starring Meryl Streep in 1998.

This August’s production, with a commissioned score by electro-acoustic composer John D’Arcy, will be the first multi-racial reading of the play in Ireland and the UK, as a series of stage and screen actors reads the role of The Narrator, Michael. During the run of Dancing at Lughnasa, Faith Healer will also take place in Glenties and west Donegal, with audiences boarding the FrielDays bus for unique site-specific readings in three west Donegal community halls and the Highlands Hotel, an area that was the boyhood summer idyll for Friel.

Over four acts, Faith Healer weaves an unreliable narrative about the life and death of the charismaticc Frank Hardy, apparently gifted in his ability to perform healing miracles. A play about language, colonialism and identity, Translations will be performed on its 45th anniversary at the Dunlewey Centre in north-west Donegal, a Gaeltacht, Irish-speaking area. The play is set in Donegal in the 1830s, a time when place names were being translated into English for Ordnance Survey maps. While the FrielDays presentation will be in English, the Irish roles will be taken by actors who can also speak Gaelic, while the two English soldier roles will be filled by English actors coming to Donegal for the first time. As part of their ticket, audiences will take a short trip across Lake Dunlewey to visit Glentornan, an early 19th century ghost village, where they will experience a Seanchaí, traditional Gaelic storyteller and music.

2025 marks the 50th golden anniversary of Volunteers, which premiered in 1975 at the Abbey Theatre, Dublin. Friel’s tale of excavation by political prisoners is reflected by its FrielDays stage setting of an archaeological site overlooking the River Foyle in the Keep area at Ebrington Square, a former British army barracks in Derry~Londonderry.

The first professional production this century of Friel’s most contentious play, is a co-production with The Playhouse Derry~Londonderry, staged by Kabosh Theatre in a specially constructed outdoor ‘dig’ set. The opening night on August 29th will be the whole performance in one sitting, while the performances on August 30 and 31 will follow Friel’s scenography with Act 1 at 8.30am and Act 2 at 4.30pm. Between Acts 1 & 2, FrielDays will celebrate the power of Seamus Heaney’s poetry collection, North, in its 50th anniversary year with a series of community-led readings across four city venues in Derry, weaving together diverse voices from across the city and emphasising the links between the works of Friel and his great friend. Tickets for North will be on sale from 9 June at www.artsoverborders.com.

Rounding off this year’s programme is The Home Place; Friel’s final full-length play will be staged at Sion Stables Heritage Education Centre in Co. Tyrone, close to his own childhood home in Killyclogher, in a building constructed at the time when the play takes place. The 42 cast members spanning all five plays will be announced through June and July.

Please visit www.artsoverborders.com for latest news.

FRIELDAYS – A HOMECOMING 2025 SCHEDULE AND INFORMATION

Dancing at Lughnasa (35th anniversary production): 1-23 August at St. Columba’s Comprehensive School, Glenties, Co. Donegal.

Faith Healer: 8-10 & 15-17 August at Edeninfagh, Portnoo, Ardara and Glenties, west Donegal.

Translations (45th anniversary production): 22-25 August at Gweedore, Co. Donegal

The Home Place (20th anniversary production): 23-25 August at Sion Stables Heritage Education Centre, Co. Tyrone.

Volunteers (50th anniversary co-production with The Playhouse): 29-31 August at The Keep, Ebrington Square, Derry~Londonderry.

North (50th anniversary production) 30-31 August in Derry~Londonderry. Brian Friel had a transnational outlook, having been born, in Omagh, Co. Tyrone, NI, soon after the partition of Ireland and spending the first half of his life in Northern Ireland. For the last 43 years of his life, when most of his work was written, he lived in the Inishowen Peninsula, the most northerly part of Ireland, in the Republic. FrielDays is conceived and produced by Arts Over Borders, Ireland’s leading producer of cross-border arts festvals. It follows the recent comple5on of Arts Over Borders’s largest project to date, the pan-European ULYSSES European Odyssey 2022-2024 project (hkps://ulysseseurope.eu/) which celebrated James Joyce’s masterpiece in 18 European cities.

Seán Doran and Liam Browne (DoranBrowne) of Arts Over Borders said: “We are on the eve of arguably the largest and most ambitious cross border cultural initiative celebrating the work of a single Irish artist and his relationship with the landscape and communities he grew up in and worked within. Brian Friel was very particular about the seasons, months, days and times of day in which his plays took place, so we will present each play in a setting relevant to its theme and at the time, of year and day, in which it was set. Friel is Ireland’s preeminent dramatist of the late 20th century. He is the ultimate ‘shared island’ dramatist, the 86 years of his life shared almost equally between Northern Ireland and the Republic of Ireland. Therefore, FrielDays is a truly transnational cross-border project, bringing the stories and characters of Friel’s life’s work to the very locations that inspired their creation.”

Friel Days – A Homecoming 2025 is funded by Donegal County Council Arts Office, Donegal County Council Tourism Office, the NI Executive, The Playhouse Derry and Fáilte Ireland.

MIL OSI United Kingdom –

June 6, 2025

MIL-OSI: Yuanbao Inc. Announces First Quarter 2025 Unaudited Financial Results

Source: GlobeNewswire (MIL-OSI)

BEIJING, June 05, 2025 (GLOBE NEWSWIRE) — Yuanbao Inc. (“Yuanbao” or the “Company”) (NASDAQ: YB), a leading technology-driven online insurance distributor in China, today announced its unaudited financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial and Operational Highlights

Total revenues in the first quarter of 2025 were RMB970.1 million (US$133.7 million), representing a 43.8% increase from RMB674.5 million in the same period of 2024.
Net income in the first quarter of 2025 was RMB295.1 million (US$40.7 million), representing a 122.1% increase from RMB132.9 million in the same period of 2024.
Net income margin in the first quarter of 2025 was 30.4%, compared with 19.7% in the same period of 2024.
Net operating cash inflow in the first quarter of 2025 was RMB425.1 million (US$58.6 million).
Number of new policies¹ in the first quarter of 2025 was 6.8 million, representing a 21.3% increase from 5.6 million in the same period of 2024.

Recent Developments

Leveraging the latest large language model (“LLM”) capabilities:
- YB Agents. The Company has implemented an intelligent quality inspection Agent, capable of autonomously planning and coordinating multiple inspection tasks. This enables rapid deployment and reuse across complex scenarios, significantly enhancing inspection efficiency. The Company is also developing agents across other operational areas to improve process efficiency.
- Retrieval-Augmented Generation (RAG) Enhancements. The Company has addressed the limitations of LLMs in processing specialized professional knowledge by integrating a specialized insurance knowledge database with RAG, resulting in more accurate responses to consumer insurance inquiries.
- Multi-Modal Applications. The Company is implementing multi-modal capabilities to broaden its interaction methods, seamlessly combining text, images, and other data types to promote more convenient and efficient insurance services.
In terms of the Company’s full consumer service cycle engine (recommendation models), as of the end of March, the Company had developed more than 4,700 models capable of analysis across more than 5,100 labels, an increase of 600 models and 1,000 labels from a year ago.

“Achieving our Nasdaq listing marks the most significant strategic milestone in Yuanbao’s growth since our founding in 2019,” said Mr. Rui Fang, Chairman and Chief Executive Officer of Yuanbao. “In the first quarter of 2025, we reported a substantial increase in revenue and net income, with all core operational metrics demonstrating double-digit year-over-year growth. Notably, the number of new policies increased by 21.3% compared with the prior year period. In technology, we continued to upgrade our full consumer service cycle engine and expand large language model applications across the entire business process. These advancements have remarkably enhanced both the efficiency and user experience of post-sale services, particularly in claim processing. As of the end of March, we had developed over 4,700 models capable of analysis across more than 5,100 labels, an increase of 600 models and 1,000 labels from a year ago. These developments have led to more accurate predictions and significantly improved operational efficiency. Looking ahead, we are committed to increasing investment in R&D to better serve evolving consumer needs. We will also focus on optimizing the full consumer service cycle, deepening strategic collaborations with insurance partners, and creating long-term value for shareholders.”

Mr. Ray Wan, Chief Financial Officer of Yuanbao, commented, “We are pleased to report a strong start to 2025, fueled by stellar financial and operational performance in the first quarter. Our total revenues reached a record RMB970.1 million, marking a 43.8% year-over-year increase, underpinned by the strength and efficiency of our engine. Additionally, we continued to improve our profitability, with net income growing 122.1% and net income margin expanding by 10.7 percentage points to 30.4%, compared with the prior year period. These solid results underscore Yuanbao’s leadership in China’s fast-growing online health insurance industry, where we leverage our core technological strengths to pursue growth while maintaining profitability. We remain confident that our healthy financial position and robust cash reserves will support our strategic initiatives, enhance our competitive advantage, and enable us to explore new opportunities for sustainable future growth.”

1 The number of new policies for a given period represents the total number of both short-term and long-term insurance policies purchased by the Company’s insurance consumers during that period.

First Quarter 2025 Financial Results

Total Revenues. Total revenues in the first quarter of 2025 were RMB970.1 million (US$133.7 million), representing a 43.8% increase from RMB674.5 million in the same period of 2024. This growth was primarily driven by significant increases in revenues from both insurance distribution services and system services.

Insurance Distribution Services. Revenues from insurance distribution services in the first quarter of 2025 were RMB321.8 million (US$44.3 million), representing a 45.0% increase from RMB221.9 million in the same period of 2024. This growth was mainly due to an increase in the number of policies purchased by insurance consumers on Yuanbao’s platform, partly driven by the Company’s enhanced targeted marketing efforts.

System Services. Revenues from system services in the first quarter of 2025 were RMB647.0 million (US$89.2 million), representing a 43.2% increase from RMB451.7 million in the same period of 2024. This growth was primarily driven by the Company’s enhanced ability to provide partnered insurance carriers more effective marketing services and accurate analytics services, enabled by the Company’s continuously improving full consumer service cycle engine. Additionally, the increase was attributable to an expanded provision of system services to both existing and newly acquired partnered insurance carriers.

Others. Revenues from other services in the first quarter of 2025 were RMB1.3 million (US$0.2 million), representing a 27.8% increase from RMB1.0 million in the same period of 2024.

Total Operating Costs and Expenses. Total operating costs and expenses in the first quarter of 2025 were RMB680.6 million (US$93.8 million), representing a 24.1% increase from RMB548.6 million in the same period of 2024.

Operations and Support Expenses. Operations and support expenses in the first quarter of 2025 were RMB44.8 million (US$6.2 million), representing a 16.8% increase from RMB38.3 million in the same period of 2024. This increase was primarily driven by business growth.

Selling and Marketing Expenses. Selling and marketing expenses in the first quarter of 2025 were RMB493.2 million (US$68.0 million), representing a 15.0% increase from RMB428.9 million in the same period of 2024. This increase was primarily due to enhanced efforts to attract new consumers and retain existing consumers.

General and Administrative Expenses. General and administrative expenses in the first quarter of 2025 were RMB66.6 million (US$9.2 million), representing a 50.7% increase from RMB44.2 million in the same period of 2024. This increase was primarily due to higher salary and benefits expenses.

Research and Development Expenses. Research and development expenses in the first quarter of 2025 were RMB76.1 million (US$10.5 million), representing a 104.5% increase from RMB37.2 million in the same period of 2024. This increase was primarily due to intensified research and development efforts and an expansion in R&D personnel, aimed at reinforcing the Company’s leadership position as a technology-driven online insurance distributor.

Investment Income. Investment income in the first quarter of 2025 was RMB6.9 million (US$0.9 million), compared with RMB0.1 million in the same period of 2024. This growth was primarily due to higher gains from short-term investments.

Net Income and Net Income Margin. Net income in the first quarter of 2025 was RMB295.1 million (US$40.7 million), representing a 122.1% increase from RMB132.9 million in the same period of 2024. Net income margin in the first quarter of 2025 was 30.4%, compared with 19.7% in the same period of 2024.

Non-GAAP Adjusted Net Income²and Non-GAAP Adjusted Net Income Margin. Non-GAAP adjusted net income in the first quarter of 2025 was RMB312.2 million (US$43.0 million), representing a 103.2% increase from RMB153.6 million in the same period of 2024. Non-GAAP adjusted net income margin in the first quarter of 2025 was 32.2%, compared with 22.8% in the same period of 2024.

Basic and Diluted Net Income per ADS.³ Basic net income per ADS in the first quarter of 2025 was RMB17.87 (US$2.46), compared with RMB4.97 in the same period of 2024. Diluted net income per ADS in the first quarter of 2025 was RMB6.46 (US$0.89), compared with RMB2.95 in the same period of 2024.

Cash Position and Cash Flow

As of March 31, 2025, the Company had cash and cash equivalents, time deposits, restricted cash and short-term investments of RMB2.77 billion (US$381.3 million), compared with RMB2.34 billion as of December 31, 2024.

In the first quarter of 2025, net cash provided by operating activities was RMB425.1 million (US$58.6 million).

2 Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. See “Use of Non-GAAP Financial Measure” and “Reconciliations of GAAP and Non-GAAP Results” at the end of this press release.
3 Each ADS represents six of the Company’s Class A ordinary shares, par value US$0.0001 per share.

Exchange Rate

This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at a rate of RMB7.2567 to US$1.00, the exchange rate in effect as of March 31, 2025, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all.

Conference Call

The Company’s management will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on June 5, 2025 or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the first quarter of 2025.

Participant Online Registration:
https://register-conf.media-server.com/register/BIa888df307303472fb71951c383b5a7ba

Participants should complete online registration using the link provided above at least 15 minutes before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at ir.yb-inc.com.

About Yuanbao Inc.

Yuanbao Inc. is a leading technology-driven online insurance distributor in China, committed to protecting health and well-being through innovative technology. Leveraging its proprietary consumer service cycle engine and advanced technologies, Yuanbao delivers customized insurance solutions from its partnered insurance carriers to over ten million insurance consumers throughout the entire insurance lifecycle, ranging from personalized recommendations to post-sales services. Through deep collaboration with insurance carriers and the use of data-driven insights, Yuanbao empowers carriers to tailor flagship products, enhances consumer engagement, and drives scalable and efficient distribution.

For more information, please visit: ir.yb-inc.com.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The Company uses non-GAAP financial measures, including adjusted net income and adjusted net income margin, in evaluating the Company’s operating results and for financial and operational decision-making purposes. Adjusted net income represents net income excluding share-based compensation expense, and adjusted net income margin represents adjusted net income as a percentage of revenue. Such adjustments have no impact on income tax.

The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as an analytical tool and when assessing the Company’s operating performance, investors should not consider it in isolation. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Adjusted net income presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as a comparative measure to the Company’s data.

For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, quotations in this announcement contain forward-looking statements. Yuanbao may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Yuanbao’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Yuanbao’s mission, goals and strategies; Yuanbao’s future business development, financial condition and results of operations; the expected growth of the insurance industry in China; Yuanbao’s expectations regarding demand for and market acceptance of its products and services; Yuanbao’s expectations regarding its relationships with consumers, insurance carriers and other partners; competition in the industry and relevant government policies and regulations relating to insurance industry. Further information regarding these and other risks is included in Yuanbao’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Yuanbao does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Yuanbao Inc.
E-mail: ir@yb-inc.com

Piacente Financial Communications
Hui Fan
Tel: +86-10-6508-0677
E-mail: yb@thepiacentegroup.com

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: yb@thepiacentegroup.com

YUANBAO INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share and per share data)

	As of December 31, 2024	As of March 31, 2025
	RMB	RMB	USD
ASSETS
Current assets:
Cash and cash equivalents	1,904,674	2,236,013	308,131
Time deposits	80,000	80,000	11,024
Restricted cash	15,000	15,000	2,067
Short-term investments	336,217	435,708	60,042
Accounts receivable, net	260,958	332,586	45,832
Prepayments and other current assets, net	75,964	44,991	6,200
Total current assets	2,672,813	3,144,298	433,296
Non-current assets:
Property and equipment, net	4,896	5,087	701
Intangible assets, net	58,049	58,026	7,996
Right-of-use assets	19,335	16,171	2,228
Deferred tax assets, net	6,936	7,045	971
Other non-current assets, net	17,611	17,611	2,427
Total non-current assets	106,827	103,940	14,323
TOTAL ASSETS	2,779,640	3,248,238	447,619
LIABILITIES
Current liabilities:
Accounts payable	10,676	20,730	2,857
Contract liabilities	117,649	95,405	13,147
Salary and welfare payable	160,690	159,426	21,969
Taxes payable	51,359	51,173	7,052
Current lease liabilities	13,447	13,548	1,867
Accrued expenses and other current liabilities	586,990	758,236	104,487
Total current liabilities	940,811	1,098,518	151,379
Non-current liabilities:
Non-current lease liabilities	5,714	2,297	317
Deferred tax liabilities, net	46,030	48,473	6,680
Total non-current liabilities	51,744	50,770	6,997
TOTAL LIABILITIES	992,555	1,149,288	158,376

YUANBAO INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except for share and per share data)

	As of December 31, 2024		As of March 31, 2025
	RMB		RMB		USD
MEZZANINE EQUITY:
Series Seed convertible redeemable preferred shares (US$0.0001 par value; 30,769,231 and 30,769,231 shares authorized, issued and outstanding as of December 31, 2024 and March 31, 2025, respectively)	692,051		695,316		95,817
Series Angel convertible redeemable preferred shares (US$0.0001 par value; 21,978,022 and 21,978,022 shares authorized, issued and outstanding as of December 31, 2024 and March 31, 2025, respectively)	495,921		497,729		68,589
Series B convertible redeemable preferred shares (US$0.0001 par value; 45,315,510 and 45,315,510 shares authorized, issued and outstanding as of December 31, 2024 and March 31, 2025, respectively)	1,028,888		1,027,703		141,621
Series C-1 convertible redeemable preferred shares (US$0.0001 par value; 37,373,616 and 37,373,616 shares authorized, issued and outstanding as of December 31, 2024 and March 31, 2025, respectively)	851,362		833,372		114,842
Series C-2 convertible redeemable preferred shares (US$0.0001 par value; 15,650,202 and 15,650,202 shares authorized, issued and outstanding as of December 31, 2024 and March 31, 2025, respectively)	352,660		345,176		47,567
TOTAL MEZZANINE EQUITY	3,420,882		3,399,296		468,436

SHAREHOLDERS’ DEFICIT:
Ordinary shares (US$0.0001 par value, 348,913,419 and 348,913,419 shares authorized, 106,994,625 and 106,994,625 shares issued, 106,994,625 and 106,994,625 shares outstanding as of December 31, 2024 and March 31, 2025, respectively)	71		71		10
Additional paid-in capital	198,664		215,743		29,730
Statutory reserves	80,975		80,975		11,159
Accumulated deficit	(1,932,128	)	(1,615,440	)	(222,614	)
Accumulated other comprehensive income	18,621		18,305		2,522
TOTAL SHAREHOLDERS’ DEFICIT	(1,633,797	)	(1,300,346	)	(179,193	)
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT	2,779,640		3,248,238		447,619

YUANBAO INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (All amounts in thousands, except for share, per share data, ADS and per ADS data)

	For the three months ended,
	March 31, 2024		March 31, 2025
	RMB		RMB		USD
Revenues	674,536		970,056		133,677
*Operating costs and expenses:**
Operations and support	(38,332	)	(44,756	)	(6,168	)
Selling and marketing expenses	(428,867	)	(493,150	)	(67,958	)
General and administrative expenses	(44,211	)	(66,640	)	(9,183	)
Research and development expenses	(37,212	)	(76,098	)	(10,487	)
Total operating costs and expenses	(548,622	)	(680,644	)	(93,796	)
Other income:
Interest income	6,017		5,228		720
Exchange gains/(loss)	34		(138	)	(19	)
Investment income	142		6,879		948
Others, net	791		439		60
Income before income taxes	132,898		301,820		41,590
Income tax expenses	(47	)	(6,718	)	(926	)
Net income	132,851		295,102		40,664
Accretion to preferred shares redemption value	(64,607	)	21,586		2,975
Net income attributable to Yuanbao Inc.’s ordinary shareholders	68,244		316,688		43,639

Net income	132,851		295,102		40,664
Other comprehensive income/(loss):
Foreign currency translation adjustments	396		(316	)	(44	)
Total comprehensive income	133,247		294,786		40,620
Accretion to preferred shares redemption value	(64,607	)	21,586		2,975
Comprehensive income attributable to Yuanbao Inc.’s ordinary shareholders	68,640		316,372		43,595

Net income per share attributable to Yuanbao Inc.’s ordinary shareholders
Basic	0.83		2.98		0.41
Diluted	0.49		1.08		0.15

Net income per ADS attributable to Yuanbao Inc.’s ordinary shareholders
Basic	4.97		17.87		2.46
Diluted	2.95		6.46		0.89

Weighted average number of ordinary shares used in computing net income per share
Basic	82,325,900		106,358,492		106,358,492
Diluted	270,332,095		273,915,113		273,915,113

*Share-based compensation expenses are included in the operating costs and expenses as follows：

	For the Three Months Ended
	March 31, 2024		March 31, 2025
	RMB		RMB		USD
Operations and support	–		(11	)	(2	)
Selling and marketing expenses	(4,626	)	(3,730	)	(514	)
General and administrative expenses	(12,105	)	(8,437	)	(1,163	)
Research and development expenses	(4,067	)	(4,901	)	(675	)
Total	(20,798	)	(17,079	)	(2,354	)

**Each ADS represents six ordinary shares.

YUANBAO INC. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (UNAUDITED) (All amounts in thousands, unless otherwise noted)

	For the Three Months Ended
	March 31, 2024	March 31, 2025
	RMB	RMB	USD
Net income	132,851	295,102	40,664
Add:
Share-based compensation expenses	20,798	17,079	2,354
Non-GAAP adjusted net income	153,649	312,181	43,018

The MIL Network –

June 5, 2025

MIL-OSI New Zealand: New Zealand Economy – Interim Financial Statements of the Government of New Zealand for the ten months ended 30 April 2025

Source: The Treasury

The Interim Financial Statements of the Government of New Zealand for the ten months ended 30 April 2025were released by the Treasury today. The April results are reported against forecasts based on the Budget Economic and Fiscal Update 2025 (BEFU 2025), published on 22 May 2025, and the results for the same period for the previous year.

The majority of the key fiscal indicators for the ten months ended 30 April 2025 were slightly better than forecast. The Government’s main operating indicator, the operating balance before gains and losses excluding ACC (OBEGALx), showed a deficit of $7.4 billion. This was $0.1 billion smaller than forecast. While the core Crown results were favourable to forecast, this was largely offset by the results of State-owned Enterprises. Net core Crown debt was in line with forecast at $184.6 billion, or 43.2% of GDP.

Core Crown tax revenue, at $100.4 billion, was $0.7 billion (0.7%) higher than forecast. Corporate tax and other individuals’ tax contributed $0.4 billion and $0.2 billion respectively to the above forecast result.

Core Crown expenses, at $115.8 billion, were $0.1 billion (0.1%) below forecast. This variance is mostly timing in nature and was spread across a range of agencies.

The OBEGALx was a deficit of $7.4 billion, $0.1 billion less than the forecast deficit. When including the revenue and expenses of ACC, the OBEGAL deficit was $11.7 billion, in line with the forecast deficit.

The operating balance deficit of $6.7 billion was $2.8 billion higher than the forecast deficit. This reflected both the OBEGAL result and net unfavourable valuation movements. Net gains on financial instruments were $4.3 billion lower than forecast, driven by New Zealand Superannuation Fund (NZS Fund) and ACC’s investment portfolios. This unfavourable variance was partly offset by net gains on non-financial instruments being $1.3 billion higher than the forecast loss. This was largely owing to the New Zealand Emissions Trading Scheme with net gains on the liability being $1.1 billion higher than the forecast loss.

The core Crown residual cash deficit of $8.4 billion was $0.1 billion lower than forecast. While net core Crown operating cash outflows were $0.4 billion higher than forecast, net core Crown capital cash outflows were $0.5 billion lower than forecast.

Net core Crown debt at $184.6 billion (43.2% of GDP) was in line with forecast. With core Crown residual cash broadly in line with forecast, this and minor movements in non-cash items contributed to the net core Crown debt result.

Gross debt at $203.5 billion (47.7% of GDP) was $6.3 billion lower than forecast, largely owing to lower than forecast unsettled trades and issuances of Euro Commercial Paper.

Net worth at $181.4 billion (42.5% of GDP) was $3.1 billion lower than forecast largely reflecting the year-to-date operating balance result.

	Year to date				Full Year
	April 2025 Actual1 $m	April 2025 BEFU 2025 Forecast1 $m	Variance2 BEFU 2025 $m	Variance BEFU 2024 %	June 2025 BEFU 2025 Forecast3 $m
Core Crown tax revenue	100,365	99,645	720	0.7	120,894
Core Crown revenue	110,787	110,304	483	0.4	134,188
Core Crown expenses	115,808	115,937	129	0.1	142,207
Core Crown residual cash	(8,439)	(8,565)	126	1.5	(9,990)
Net core Crown debt4	184,620	184,622	2	–	185,644
as a percentage of GDP	43.2%	43.2%			42.7%
Gross debt	203,505	209,766	6,262	3.0	209,999
as a percentage of GDP	47.7%	49.1%			48.3%
OBEGAL excluding ACC (OBEGALx)	(7,444)	(7,526)	82	1.1	(10,175)
OBEGAL	(11,667)	(11,660)	(7)	(0.1)	(14,740)
Operating balance (excluding minority interests)	(6,665)	(3,872)	(2,793)	(72.1)	(5,493)
Net worth	181,424	184,553	(3,129)	(1.7)	183,130
as a percentage of GDP	42.5%	43.2%			42.1%

Using the most recently published GDP (for the year ended 31 December 2024) of $426,925 million (Source: Stats NZ).
Favourable variances against forecast have a positive sign and unfavourable variances against forecast have a negative sign.
Using BEFU 2025 forecast GDP for the year ending 30 June 2025 of $435,148 million (Source: The Treasury).
Net core Crown debt excludes the NZS Fund and core Crown advances. Net core Crown debt may fluctuate during the year largely reflecting the timing of tax receipts.

MIL OSI New Zealand News –

June 5, 2025

MIL-OSI New Zealand: Federated Farmers – Save our sheep billboards hit Wellington

Source: Federated Farmers

Federated Farmers have taken the fight for the future of New Zealand sheep farming to the streets of Wellington, with bold digital billboards visible directly from Ministers’ Beehive offices.

The message to politicians is clear and concise: sheep are not the problem – stop planting productive farmland in pine trees for carbon credits.

“We wanted this campaign to be bold and directly in politicians’ faces. That’s the only way we’re going to get their attention,” Federated Farmers meat & wool chair Toby Williams says.

“Sheep farming is in crisis. We need the Government to urgently wake up to the impact poor policy is having on our farming families and rural communities.

“Each year we’re losing tens of thousands of hectares of productive farmland.

“Where sheep and lambs once grazed there’s now nothing but pine trees as far as the eye can see.”

Between 2017 and 2024, more than 260,000 hectares of productive sheep farming land were plastered in pine trees – never to return to pasture.

In just one generation New Zealand has lost over two-thirds of our national flock, reducing from over 70 million sheep in 1982 to fewer than 25 million sheep today.

“Our national flock is declining by almost a million sheep every year and the number one driver is carbon forestry,” Williams says.

“Farms are being converted to forestry because Government policy is screwing the scrum and making it more profitable to plant pine trees than to farm sheep.

“The Emissions Trading Scheme (ETS) is effectively subsidising pine trees to offset fossil fuel emissions, and that’s pushing farming families off the land and destroying rural communities.”

New Zealand is the only country in the world that allows 100% carbon offsetting through forestry, with other countries recognising the risk and putting restrictions in place.

Federated Farmers is now calling on the Government to urgently review the ETS and fix the rules to either limit or stop the offsetting of fossil fuel emissions with forestry.

You can sign the petition at www.saveoursheep.nz

MIL OSI New Zealand News –

June 5, 2025

MIL-OSI: Descartes Announces Fiscal 2026 First Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

Record Services Revenues

WATERLOO, Ontario and ATLANTA, June 04, 2025 (GLOBE NEWSWIRE) — The Descartes Systems Group Inc. (TSX:DSG) (Nasdaq:DSGX) announced its financial results for its fiscal 2026 first quarter (Q1FY26). All financial results referenced are in United States (US) currency and, unless otherwise indicated, are determined in accordance with US Generally Accepted Accounting Principles (GAAP).

“Our first quarter of fiscal 2026 showed strong annual growth, consistent with our communicated plans,” said Edward J. Ryan, Descartes’ CEO. “This is a challenging and uncertain economic and trade environment for shippers, carriers and logistics services providers. They face challenges on how, when, or if, to react to changes in global trade relationships, tariffs, sanctions and economic forecasts. We continue to see strong interest in our domain expertise and our solutions to help companies navigate the complex trade landscape. We remain committed to growing our business with prudent investments and cost discipline to build the premier network and technology for logistics-intensive businesses.”

Q1FY26 Financial Results
As described in more detail below, key financial highlights for Descartes’ Q1FY26 included:

Revenues of $168.7 million, up 12% from $151.3 million in the first quarter of fiscal 2025 (Q1FY25) and up 1% from $167.5 million in the previous quarter (Q4FY25);
Revenues were comprised of services revenues of $156.6 million (93% of total revenues), professional services and other revenues of $11.8 million (7% of total revenues) and license revenues of $0.3 million (less than 1% of total revenues). Services revenues were up 14% from $137.8 million in Q1FY25 and consistent with $156.5 million in Q4FY25;
Cash provided by operating activities of $53.6 million, down from $63.7 million in Q1FY25 and down from $60.7 million in Q4FY25;
Income from operations of $46.2 million, up 9% from $42.4 million in Q1FY25 and down from $47.1 million in Q4FY25;
Net income of $36.2 million, up 4% from $34.7 million in Q1FY25 and down from $37.4 million in Q4FY25. Net income as a percentage of revenues was 21%, compared to 23% in Q1FY25 and 22% in Q4FY25;
Earnings per share on a diluted basis of $0.41, up 2% from $0.40 in Q1FY25 and down from $0.43 in Q4FY25; and
Adjusted EBITDA of $75.1 million, up 12% from $67.0 million in Q1FY25 and consistent with $75.0 million in Q4FY25. Adjusted EBITDA as a percentage of revenues was 45%, compared to 44% in Q1FY25 and 45% in Q4FY25.

Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures provided as a complement to financial results presented in accordance with GAAP. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). These items are considered by management to be outside Descartes’ ongoing operational results. We define Adjusted EBITDA as a percentage of revenues as the quotient, expressed as a percentage, from dividing Adjusted EBITDA for a period by revenues for the corresponding period. A reconciliation of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income determined in accordance with GAAP is provided later in this release.

The following table summarizes Descartes’ results in the categories specified below over the past 5 fiscal quarters (unaudited; dollar amounts, other than per share amounts, in millions):

	Q1 FY26	Q4 FY25	Q3 FY25	Q2 FY25	Q1 FY25
Revenues	168.7	167.5	168.8	163.4	151.3
Services revenues	156.6	156.5	149.7	146.2	137.8
Gross margin	76%	76%	74%	75%	77%
Cash provided by operating activities	53.6	60.7	60.1	34.7	63.7
Income from operations	46.2	47.1	45.8	45.9	42.4
Net income	36.2	37.4	36.6	34.7	34.7
Net income as a % of revenues	21%	22%	22%	21%	23%
Earnings per diluted share	0.41	0.43	0.42	0.40	0.40
Adjusted EBITDA	75.1	75.0	72.1	70.6	67.0
Adjusted EBITDA as a % of revenues	45%	45%	43%	43%	44%

Cash Position
At April 30, 2025, Descartes had $176.4 million in cash. Cash decreased by $59.7 million in Q1FY26. The table set forth below provides a summary of cash flows for Q1FY26 in millions of dollars:

	Q1FY26
Cash provided by operating activities	53.6
Additions to property and equipment	(1.9)
Acquisitions of subsidiaries, net of cash acquired	(112.3)
Issuances of common shares, net of issuance costs	3.6
Payment of withholding taxes on net share settlements	(6.5)
Effect of foreign exchange rate on cash	3.8
Net change in cash	(59.7)
Cash, beginning of period	236.1
Cash, end of period	176.4

Acquisition of 3GTMS
On March 24, 2025, Descartes acquired all of the shares of 3GTMS, a leading provider of transportation management solutions. The purchase price for the acquisition was approximately $112.7 million, net of cash acquired, which was funded from cash on hand.

Cost Reduction Initiatives
Considering the economic and global trade uncertainty many Descartes customers are facing, Descartes has undertaken cost reduction initiatives designed to reduce its cost base. The plan is designed to reduce Descartes’ global workforce by approximately 7% and eliminate various other operating expenses. As a result, Descartes expects to incur restructuring charges of approximately $4 million in the second quarter of fiscal 2026 (Q2FY26), which will also impact cash generated from operations in Q2FY26. Once completed, Descartes anticipates annualized cost savings of approximately $15 million.

Management Update
Descartes is pleased to announce the appointment of William Green as Executive Vice President, Global Sales. Mr. Green has served as Descartes’ Senior Vice President for North American Sales since August 2020. Mr. Green has previously held senior commercial roles at Salesforce, PROLIFIQ and CDC Software (now Aptean). “We’re excited for Bill to extend his leadership of our growth successes in North America to our global commercial operations,” said Mr. Ryan.

Andrew Roszko, Descartes’ Chief Commercial Officer, will depart the company in Q2FY26 to pursue another opportunity. Mr. Roszko was appointed EVP Global Sales in February 2019 and appointed Chief Commercial Officer in June 2022. “Andrew has been a valuable contributor to Descartes’ commercial development. We wish him well in his future endeavors,” said Mr. Ryan.

Conference Call
Members of Descartes’ executive management team will host a conference call to discuss the company’s financial results at 5:30 p.m. ET on Wednesday, June 4. Designated numbers are +1 289 514 5100 for North America and +1 800 717 1738 for international, using conference ID 26605.

The company will simultaneously conduct an audio webcast on the Descartes website at www.descartes.com/descartes/investor-relations. Phone conference dial-in or webcast login is required approximately 10 minutes beforehand.

Replays of the conference call will be available until June 11, 2025, by dialing +1 289 819 1325 or Toll-Free for North America using +1 888 660 6264 with Playback Passcode: 26605#. An archived replay of the webcast will be available at www.descartes.com/descartes/investor-relations.

About Descartes

Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and X (Twitter).

Descartes Investor Contact
Laurie McCauley
(519) 746-2969
investor@descartes.com

Cautionary Statement Regarding Forward-Looking Statements This release may contain forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relates to Descartes’ expectations concerning future revenues and earnings, and our projections for any future reductions in expenses or growth in margins and generation of cash; our assessment of the potential impact of geopolitical events, such as the ongoing conflict between Russia and Ukraine (the “Russia-Ukraine Conflict”), and between Israel and Hamas (“Israel-Hamas Conflict”), or other potentially catastrophic events, on our business, results of operations and financial condition; our assessment of the potential impact of tariffs, sanctions and other actions by individual countries on global trade and our business; continued growth and acquisitions including our assessment of any increased opportunity for our products and services as a result of trends in the logistics and supply chain industries; rate of profitable growth and Adjusted EBITDA margin operating range; demand for Descartes’ solutions; growth of Descartes’ Global Logistics Network (“GLN”); customer buying patterns; customer expectations of Descartes; development of the GLN and the benefits thereof to customers; and other matters. These forward-looking statements are based on certain assumptions including the following: global shipment volumes continuing at levels generally consistent with those experienced historically; the Russia-Ukraine Conflict and Israel-Hamas Conflict not having a material negative impact on shipment volumes or on the demand for the products and services of Descartes by its customers and the ability of those customers to continue to pay for those products and services; countries continuing to implement and enforce existing and additional customs and security regulations relating to the provision of electronic information for imports and exports; countries continuing to implement and enforce existing and additional trade restrictions and sanctioned party lists with respect to doing business with certain countries, organizations, entities and individuals; Descartes’ continued operation of a secure and reliable business network; the stability of general economic and market conditions, currency exchange rates, and interest rates; equity and debt markets continuing to provide Descartes with access to capital; Descartes’ continued ability to identify and source attractive and executable business combination opportunities; Descartes’ ability to develop solutions that keep pace with the continuing changes in technology, and our continued compliance with third party intellectual property rights. These assumptions may prove to be inaccurate. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Descartes, or developments in Descartes’ business or industry, to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, Descartes’ ability to successfully identify and execute on acquisitions and to integrate acquired businesses and assets, and to predict expenses associated with and revenues from acquisitions; the impact of network failures, information security breaches or other cyber-security threats; disruptions in the movement of freight and a decline in shipment volumes including as a result of the impact of current and future trade barriers, including tariffs, further protectionist measures and reactive countermeasure or contagious illness outbreaks; a deterioration of general economic conditions or instability in the financial markets accompanied by a decrease in spending by our customers; the ability to attract and retain key personnel and the ability to manage the departure of key personnel and the transition of our executive management team; changes in trade or transportation regulations that currently require customers to use services such as those offered by Descartes; changes in customer behaviour and expectations; Descartes’ ability to successfully design and develop enhancements to our products and solutions; departures of key customers; the impact of foreign currency exchange rates; Descartes’ ability to retain or obtain sufficient capital in addition to its debt facility to execute on its business strategy, including its acquisition strategy; disruptions in the movement of freight; the potential for future goodwill or intangible asset impairment as a result of other-than-temporary decreases in Descartes’ market capitalization; and other factors and assumptions discussed in the section entitled, “Certain Factors That May Affect Future Results” in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada, including Descartes’ most recently filed Management’s Discussion and Analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues

We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with GAAP. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with GAAP. We believe that current shareholders and potential investors in our company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about our company and measuring our operational results.

The term “Adjusted EBITDA” refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage.

Management considers these non-operating expenses to be outside the scope of Descartes’ ongoing operations and the related expenses are not used by management to measure operations. Accordingly, these expenses are excluded from Adjusted EBITDA, which we reference to both measure our operations and as a basis of comparison of our operations from period-to-period. Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with GAAP or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. In particular, we have completed six acquisitions since the beginning of fiscal 2025 and may complete additional acquisitions in the future that will result in acquisition-related expenses and restructuring charges. As these acquisition-related expenses and restructuring charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations.

The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our unaudited Consolidated Statements of Operations for Q1FY26, Q4FY25, Q3FY25, Q2FY25, and Q1FY25, which we believe is the most directly comparable GAAP measure.

	Q1FY26	Q4FY25	Q3FY25	Q2FY25	Q1FY25
Net income, as reported on Consolidated Statements of Operations	36.2	37.4	36.6	34.7	34.7
Adjustments to reconcile to Adjusted EBITDA:
Interest expense	0.2	0.2	0.2	0.2	0.3
Investment income	(1.9)	(1.9)	(2.9)	(2.7)	(4.1)
Income tax expense	11.7	11.4	11.9	13.6	11.5
Depreciation expense	1.5	1.5	1.4	1.4	1.4
Amortization of intangible assets	19.1	19.4	17.5	17.4	15.0
Stock-based compensation and related taxes	4.9	5.4	5.6	5.8	4.3
Other charges	3.4	1.6	1.8	0.2	3.9
Adjusted EBITDA	75.1	75.0	72.1	70.6	67.0

Revenues	168.7	167.5	168.8	163.4	151.3
Net income as % of revenues	21%	22%	22%	21%	23%
Adjusted EBITDA as % of revenues	45%	45%	43%	43%	44%

The Descartes Systems Group Inc. Condensed Consolidated Balance Sheets (US dollars in thousands; US GAAP; Unaudited)

	April 30,	January 31,
	2025	2025
ASSETS
CURRENT ASSETS
Cash	176,411	236,138
Accounts receivable (net)
Trade	60,456	53,953
Other	15,646	16,931
Prepaid expenses and other	43,100	45,544
	295,613	352,566
OTHER LONG-TERM ASSETS	27,366	24,887
PROPERTY AND EQUIPMENT, NET	13,944	12,481
RIGHT-OF-USE ASSETS	7,721	7,623
DEFERRED INCOME TAXES	4,867	3,802
INTANGIBLE ASSETS, NET	368,122	321,270
GOODWILL	992,257	924,755
	1,709,890	1,647,384
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	23,154	20,650
Accrued liabilities	73,151	79,656
Lease obligations	3,402	3,178
Income taxes payable	9,535	9,313
Deferred revenue	109,608	104,230
	218,850	217,027
LEASE OBLIGATIONS	4,533	4,718
DEFERRED REVENUE	2,196	978
INCOME TAXES PAYABLE	6,540	5,531
DEFERRED INCOME TAXES	25,834	34,127
	257,953	262,381

SHAREHOLDERS’ EQUITY
Common shares – unlimited shares authorized; Shares issued and outstanding totaled 85,782,830 at April 30, 2025 (January 31, 2025 – 85,605,969)	574,816	568,339
Additional paid-in capital	498,092	503,133
Accumulated other comprehensive loss	(21,243)	(50,497)
Retained earnings	400,272	364,028
	1,451,937	1,385,003
	1,709,890	1,647,384

The Descartes Systems Group Inc. Consolidated Statements of Operations (US dollars in thousands, except per share and weighted average share amounts; US GAAP; Unaudited)

	Three Months Ended
	April 30,	April 30,
	2025	2024

REVENUES	168,739	151,348
COST OF REVENUES (exclusive of amortization presented separately below)	39,747	35,413
GROSS MARGIN	128,992	115,935
EXPENSES
Sales and marketing	18,850	17,471
Research and development	25,069	22,191
General and administrative	16,312	14,948
Other charges	3,449	3,918
Amortization of intangible assets	19,114	15,024
	82,794	73,552
INCOME FROM OPERATIONS	46,198	42,383
INTEREST EXPENSE	(236)	(273)
INVESTMENT INCOME	1,962	4,059
INCOME BEFORE INCOME TAXES	47,924	46,169
INCOME TAX EXPENSE (RECOVERY)
Current	12,251	12,318
Deferred	(571)	(816)
	11,680	11,502
NET INCOME	36,244	34,667
EARNINGS PER SHARE
Basic	0.42	0.41
Diluted	0.41	0.40
WEIGHTED AVERAGE SHARES OUTSTANDING (thousands)
Basic	85,677	85,274
Diluted	87,577	87,116

The Descartes Systems Group Inc. Condensed Consolidated Statements of Cash Flows (US dollars in thousands; US GAAP; Unaudited)

	Three Months Ended
	April 30,	April 30,
	2025	2024
OPERATING ACTIVITIES
Net income	36,244	34,667
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	1,450	1,358
Amortization of intangible assets	19,114	15,024
Stock-based compensation expense	4,366	3,769
Other non-cash operating activities	(34)	96
Deferred tax recovery	(571)	(816)
Changes in operating assets and liabilities	(6,966)	9,643
Cash provided by operating activities	53,603	63,741
INVESTING ACTIVITIES
Additions to property and equipment	(1,862)	(1,764)
Acquisition of subsidiaries, net of cash acquired	(112,327)	(139,973)
Cash used in investing activities	(114,189)	(141,737)
FINANCING ACTIVITIES
Payment of debt issuance costs	(38)	(38)
Issuance of common shares for cash, net of issuance costs	3,558	4,231
Payment of withholding taxes on net share settlements	(6,487)	(6,745)
Cash used in financing activities	(2,967)	(2,552)
Effect of foreign exchange rate changes on cash	3,826	(1,482)
Decrease in cash	(59,727)	(82,030)
Cash, beginning of period	236,138	320,952
Cash, end of period	176,411	238,922

The MIL Network –

June 5, 2025

MIL-OSI USA: Brownley Introduces Legislation to Ensure Veterans Can Be Laid to Rest with Their Loved Ones

Source: United States House of Representatives – Julia Brownley (D-CA)

Washington, DC – Today, Congresswoman Julia Brownley (D-CA) introduced the Loved Ones Interment Act, a bill that ensures that veterans can be laid with their loved ones in national or veterans cemeteries. Under current law, veterans who receive a burial benefit such as an urn or commemorative plaque from the U.S. Department of Veterans Affairs (VA) are barred from being interred with a spouse or dependent, a restriction that has prevented many families from being buried together.

“Those who have served our country in uniform deserve to be buried with the utmost respect and dignity, regardless of whether their families choose for them to be cremated or not,” said Congresswoman Julia Brownley. “It is heartbreaking and completely unacceptable that VA’s current interpretation of the law prevents cremated veterans from being buried with their family members because of limitations placed on burial benefits. My bill seeks to rectify this inadvertent consequence of the law by allowing the cremated remains of veterans to be interred with their spouse or child, even if they received an urn or plaque from VA. Our nation’s veterans and their families have sacrificed so much in service to our country, and ensuring that veterans are laid to rest with their loved ones is essential for upholding our promise to serve our veterans – in life and death – as well as they have served our country.”

Background on the Loved Ones Interment Act

As part of the Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020, Congress authorized VA to provide eligible veterans with an urn or commemorative plaque. According to the law, if the “Secretary [of the Department of Veterans Affairs] furnishes an urn [or commemorative plaque]…for an individual, the Secretary may not provide for such individual any burial benefit under section 2402 of this title.” VA interprets this to mean that if a veteran received a burial benefit of an urn or commemorative plaque, the veteran cannot receive a secondary burial benefit of being interred with a spouse or dependent.

The Loved Ones Interment Act would clarify the law to allow cremated veterans to be laid to rest in the same burial space as a spouse or dependent, and provide a family headstone that contains details about the cremated veteran.

This bill is endorsed by AMVETS (American Veterans), Iraq and Afghanistan Veterans of America (IAVA), Minority Veterans of America (MVA), and Paralyzed Veterans of America (PVA).

Read the full text of the bill here.

###

Issues: 119th Congress, Veterans’ Affairs

MIL OSI USA News –

June 5, 2025

Global alarm rises as China’s critical mineral export curbs take hold

Source: Government of India

Source: Government of India (4)

Alarm over China’s stranglehold on critical minerals grew on Tuesday as global automakers joined their U.S. counterparts to complain that restrictions by China on exports of rare earth alloys, mixtures and magnets could cause production delays and outages without a quick solution.

German automakers became the latest to warn that China’s export restrictions threaten to shut down production and rattle their local economies, following a similar complaint from an Indian EV maker last week.

China’s decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.

The move underscores China’s dominance of the critical mineral industry and is seen as leverage by China in its ongoing trade war with U.S. President Donald Trump.

Trump has sought to redefine the trading relationship with the U.S.’ top economic rival China by imposing steep tariffs on billions of dollars of imported goods in hopes of narrowing a wide trade deficit and bringing back lost manufacturing.

Trump imposed tariffs as high as 145% against China only to scale them back after stock, bond and currency markets revolted over the sweeping nature of the levies. China has responded with its own tariffs and is leveraging its dominance in key supply chains to persuade Trump to back down.

Trump and Chinese President Xi Jinping are expected to talk this week, White House spokeswoman Karoline Leavitt told reporters on Tuesday, and the export curbsare expected to be high on the agenda.

“I can assure you that the administration is actively monitoring China’s compliance with the Geneva trade agreement,” she said. “Our administration officials continue to be engaged in correspondence with their Chinese counterparts.”

Trump has previously signaled that China’s slow pace of easing the critical mineral export controls represents a violation of the agreementreached last month in Geneva.

MAGNETS HELD UP AT CHINESE PORTS

Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports while license applications make their way through the Chinese regulatory system.

The restrictions have triggered anxiety in corporate boardrooms and nations’ capitals – from Tokyo to Washington – as officials scrambled to identify limited alternative options amid fears that production of new automobiles and other items could grind to a halt by summer’s end.

“If the situation is not changed quickly, production delays and even production outages can no longer be ruled out,” Hildegard Mueller, head of Germany’s auto lobby, told Reuters on Tuesday.

Chinese state media reported last week that China was considering relaxing the curbs for European semiconductor firms while the Ministry of Foreign Affairs has said it would strengthen cooperation with other countries over its controls.

However, rare-earth magnet exports from China halved in April as exporters grappled with the opaque licensing scheme.

Frank Fannon, a minerals industry consultant and former U.S. assistant secretary of state for energy resources during Trump’s first term, said the global disruptions are not shocking to those paying attention.

“I don’t think anyone should be surprised how this is playing out. We have a production challenge (in the U.S.) and we need to leverage our whole of government approach to secure resources and ramp up domestic capability as soon as possible. The time horizon to do this was yesterday,” Fannon said.

Diplomats, automakers and other executives from India, Japan and Europe were urgently seeking meetings with Beijing officials to push for faster approval of rare earth magnet exports, sources told Reuters, as shortages threatened to halt global supply chains.

A business delegation from Japan will visit Beijing in early June to meet the Ministry of Commerce over the curbs, and European diplomats from countries with big auto industries have also sought “emergency” meetings with Chinese officials in recent weeks, Reuters reported.

India, where Bajaj Auto BAJA.NS warned that any further delays in securing the supply of rare earth magnets from China could “seriously impact” electric vehicle production, is organizing a trip for auto executives in the next two to three weeks.

In May, the head of the trade group representing General Motors GM.N, Toyota 7203.T, Volkswagen VOWG.DE, Hyundai and other major automakers raised similar concerns in a letter to the Trump administration.

“Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras,” the Alliance for Automotive Innovation wrote in the letter.

(Reuters)

June 4, 2025

MIL-OSI: Kayne Anderson Energy Infrastructure Fund Provides Unaudited Balance Sheet Information and Announces Its Net Asset Value and Asset Coverage Ratios as of May 31, 2025

Source: GlobeNewswire (MIL-OSI)

HOUSTON, June 03, 2025 (GLOBE NEWSWIRE) — Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) today provided a summary unaudited statement of assets and liabilities and announced its net asset value and asset coverage ratios under the Investment Company Act of 1940 (the “1940 Act”) as of May 31, 2025.

As of May 31, 2025, the Company’s net assets were $2.3 billion, and its net asset value per share was $13.79. As of May 31, 2025, the Company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 740% and the Company’s asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 530%.

STATEMENT OF ASSETS AND LIABILITIES MAY 31, 2025 // (UNAUDITED)

		(in millions)
Investments	$	3,184.4
Cash and cash equivalents		12.1
Receivable for securities sold		2.8
Accrued income		1.6
Other assets		1.0
Total assets		3,201.9

Notes		388.2
Unamortized notes issuance costs		(2.5	)
Preferred stock		153.6
Unamortized preferred stock issuance costs		(1.2	)
Total leverage		538.1

Payable for capital shares purchased		2.6
Other liabilities		19.8
Current tax liability, net		12.6
Deferred tax liability, net		297.1
Total liabilities		332.1

Net assets	$	2,331.7

The Company had 169,126,038 common shares outstanding as of May 31, 2025.

Long-term investments were comprised of Midstream Energy Companies (94%), Other (4%) and Utility Companies (2%).

The Company’s ten largest holdings by issuer at May 31, 2025 were:

		Amount (in millions)		% Long Term Investments
1.	The Williams Companies, Inc. (Midstream Energy Company)	$	359.7	11.3%
2.	Energy Transfer LP (Midstream Energy Company)		319.4	10.0%
3.	Enterprise Products Partners L.P. (Midstream Energy Company)		313.6	9.8%
4.	MPLX LP (Midstream Energy Company)		308.6	9.7%
5.	Cheniere Energy, Inc. (Midstream Energy Company)		266.9	8.4%
6.	Kinder Morgan, Inc. (Midstream Energy Company)		215.4	6.8%
7.	ONEOK, Inc. (Midstream Energy Company)		186.4	5.9%
8.	TC Energy Corporation (Midstream Energy Company)		167.7	5.3%
9.	Targa Resources Corp. (Midstream Energy Company)		152.5	4.8%
10.	Western Midstream Partners, LP (Midstream Energy Company)		120.6	3.8%

Portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold any particular security. You can obtain a complete listing of holdings by viewing the Company’s most recent quarterly or annual report.

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The Company’s investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. KYN intends to achieve this objective by investing at least 80% of its total assets in securities of Energy Infrastructure Companies. See Glossary of Key Terms in the Company’s most recent quarterly or annual report for a description of these investment categories and the meaning of capitalized terms.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer or sale is not permitted. Nothing contained in this press release is intended to recommend any investment policy or investment strategy or consider any investor’s specific objectives or circumstances. Before investing, please consult with your investment, tax, or legal adviser regarding your individual circumstances.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This communication contains statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events. These and other statements not relating strictly to historical or current facts constitute forward-looking statements as defined under the U.S. federal securities laws. Forward-looking statements involve a variety of risks and uncertainties. These risks include but are not limited to changes in economic and political conditions; regulatory and legal changes; energy industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in detail in the Company’s filings with the SEC, available at www.kaynefunds.com or www.sec.gov. Actual events could differ materially from these statements or our present expectations or projections. You should not place undue reliance on these forward-looking statements, which speak only as of the date they are made. Kayne Anderson undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Company’s investment objectives will be attained.

Contact investor relations at 877-657-3863 or cef@kayneanderson.com.

The MIL Network –

June 4, 2025

MIL-OSI USA News: Fact Sheet: President Donald J. Trump Increases Section 232 Tariffs on Steel and Aluminum

Source: US Whitehouse

COUNTERING TRADE PRACTICES THAT UNDERMINE NATIONAL SECURITY: Today, President Donald J. Trump signed a Proclamation to increase the tariff to 50% on steel and aluminum.

President Trump is taking action to protect America’s critical steel and aluminum industries, which have been harmed by unfair trade practices and global excess capacity.
President Trump is raising the tariff on steel and aluminum imports from 25% to 50%, with the higher tariff set to go into effect on June 4, 2025.
- Tariffs on steel and aluminum imports from the United Kingdom will remain at 25%, with possible changes or quotas starting July 9, 2025, depending on the status of the U.S.-UK Economic Prosperity Deal.
- The steel and aluminum tariffs will apply only to the steel and aluminum contents of imported products, whereas the non-steel and non-aluminum contents of imported products will be subject to other applicable tariffs.
President Trump is cracking down on false import declarations by requiring strict reporting of steel and aluminum content, with tough penalties like fines or loss of import rights for violators.
President Trump is exercising his authority under Section 232 of the Trade Expansion Act of 1962 to adjust imports of steel and aluminum to protect our national security.
- This statute provides the President with authority to adjust imports being brought into the United States in quantities or under circumstances that threaten to impair national security.

RESTORING FAIRNESS TO STEEL AND ALUMINUM MARKETS: President Trump is taking action to end unfair trade practices and the global dumping of steel and aluminum.

Foreign nations have been flooding the United States market with cheap steel and aluminum, often subsidized by their governments.
A report from the first Trump Administration found that steel import levels and global excess were weakening our domestic economy and threatening to impair national security.
- The report found that excess production and capacity has been a major factor in the decline of domestic aluminum production.
While the domestic steel industry briefly achieved 80% capacity utilization in 2021, subsequent trade pressure has depressed domestic production. In 2022 and 2023, capacity utilization fell to 77.3% and 75.3%, respectively. High import volumes from sources exempt from Section 232 tariffs were a major factor in depressing domestic production volumes.
For aluminum, there was an increase in the capacity utilization rate between 2017 and 2019, from 40% to 61% during that period. But since 2019, the aluminum capacity utilization has once again seen a steady decline, falling from 61% to 55% between 2019 and 2023.
The United States does not want to be in a position where it would be unable to meet demand for national defense and critical infrastructure in a national emergency.

STRENGTHENING AMERICA’S MANUFACTURING INDUSTRY: President Trump’s decision to close existing loopholes and exemptions will strengthen United States’ steel and aluminum industries.

In his first term, President Trump imposed Section 232 tariffs to protect the American steel and aluminum industries from unfair foreign competition.
The steel tariffs that President Trump implemented led to thousands of jobs gained and higher wages in the metals industry.
- These tariffs were hailed as a “boon” for Minnesota’s iron ore industry, with state officials crediting tariffs for bolstering the local economy.
- Steel and aluminum imports drastically decreased under President Trump, falling by nearly a third from 2016 to 2020.
- The tariffs led to a wave in investment across the United States, with more than $10 billion committed to build new mills.
Earlier this year, President Trump restored and strengthened Section 232 tariffs on steel and aluminum, widely celebrated by the American steel and aluminum industries.
Now, President Trump is once again being praised by our steel and Aluminum industries for his decision to raise tariffs on foreign steel and aluminum even higher and protect American workers.

TARIFFS WORK: Studies have repeatedly shown that contrary to public rhetoric, tariffs can be an effective tool for achieving economic and strategic objectives.

A 2024 study on the effects of President Trump’s tariffs in his first Administration found that they “strengthened the U.S. economy,” and “led to significant reshoring” in industries like manufacturing and steel production.
A 2023 report by the U.S. International Trade Commission that analyzed the effects of Section 232 and 301 tariffs on more than $300 billion of U.S. imports found that the tariffs reduced imports from China, effectively stimulated more U.S. production of the tariffed goods, with very minor effects on prices.
According to the Economic Policy Institute, the tariffs implemented by President Trump during his first Administration “clearly show[ed] no correlation with inflation” and only had a temporary effect on overall price levels.
An analysis from the Atlantic Council found that “tariffs would create new incentives for US consumers to buy US-made products.”
Former Biden Treasury Secretary Janet Yellen affirmed last year that tariffs do not raise prices: “I don’t believe that American consumers will see any meaningful increase in the prices that they face.”
A 2024 economic analysis found that a global tariff of 10% would grow the economy by $728 billion, create 2.8 million jobs, and increase real household incomes by 5.7%.

MIL OSI USA News –

June 4, 2025

MIL-OSI USA: Cassidy Introduces Bill to Improve Veterans’ Access to Education Benefit Information

US Senate News:

Source: United States Senator for Louisiana Bill Cassidy
WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) introduced the Informing VETS Act to better communicate to veterans with disabilities the education benefits available to them.
“Veterans should never be left to wonder what education benefits they do or do not qualify for. When a soldier is finished with active duty, the least we can do is make it clear for them,” said Dr. Cassidy.
Cassidy was joined by U.S. Senator Richard Blumenthal (D-CT) in introducing the bill.
Background
A recent GAO report highlighted that the majority of veterans did not know about the Veteran Readiness and Employment (VR&E) Program, despite knowing about the benefits available to them through the GI Bill. The Informing VETS Act requires the U.S. Department of Veterans Affairs (VA) to raise awareness of the VR&E program by regularly sending letters to eligible veterans discussing the educational benefits. The bill also requires the VA to provide a side-by-side comparison of benefits between the GI Bill and the VR&E programs online.
The American Veterans have endorsed the VETS Act.

MIL OSI USA News –

June 4, 2025

MIL-OSI: Greenbacker delivers first quarter results

Source: GlobeNewswire (MIL-OSI)

Company announces year-over-year increases in IPP revenue, power production, and generation capacity in its operating fleet, as well as construction milestones on largest solar project in New York

Key Takeaways

Against a backdrop of trade policy driven volatility, Greenbacker’s proactive approach to tariff risk management delivered $19 million cost savings on 1 GW solar module order.
Company continued construction on largest solar project in New York State to date; the 674 MW Cider solar farm—also GREC’s largest to date—is expected to reach commercial operation in late 2026, generating 1 billion kWh of power in first year of operation.
Wind and solar PPA revenue increased 17% year-over-year to $39 million, driving total first-quarter operating revenue of $48 million.
Power production increased 14% across combined wind and solar fleets, year-over-year, generating 676 million kWh of power in the first quarter.
Operating fleet expanded 3% year-over-year, representing 41 MW of additional total generation capacity, as Company brought online over a dozen new assets.
Greenbacker’s assets contributed to a more resilient U.S. clean energy system, delivering homegrown power, driving decarbonization, and supporting the domestic economy.

NEW YORK, June 03, 2025 (GLOBE NEWSWIRE) — Greenbacker Renewable Energy Company LLC (“Greenbacker,” “GREC,” or the “Company”), an energy transition-focused investment manager and independent power producer (“IPP”), has announced financial results for the first quarter of 2025, including year-over-year increases in revenue, operating capacity, and clean energy generation.¹

Greenbacker’s proactive approach to tariff risk management delivered $19 million cost savings

Greenbacker’s proactive approach to managing exposure to tariff risk continued to deliver measurable results for investors. In late 2024, the Company’s procurement team secured a 1 gigawatt (“GW”) order with one of the world’s largest suppliers of solar modules for use in the construction of assets across its sustainable infrastructure portfolio—including the 674 MW Cider solar farm, Greenbacker’s largest clean energy project to date. As part of the agreement, Greenbacker was able to lock in its access to 1 GW of panels while limiting or eliminating risk on future tariff exposure.

This forward-looking contract structure when procuring over 960,000 solar modules proved its value through the first quarter of 2025, as financial markets and the energy transition asset class experienced increased volatility driven by uncertainty around the Trump administration’s tariff regime.²

As of March 31, 2025, the contract generated approximately $19 million in cost savings for Greenbacker, helping to protect returns by ensuring predictable pricing for a substantial volume of critical solar equipment.

“Greenbacker and other clean energy industry participants have been successfully navigating the evolving trade landscape for over a decade,” said Dan de Boer, Greenbacker’s interim CEO. “The steps we’ve taken to mitigate tariff-related risk across our portfolio deliver results, protect returns, and add stability to our investment platform. This disciplined approach is a core part of how we create long-term value for our investors.”

Company continued construction on 674 MW Cider solar project, projected to be largest solar farm in New York State when completed in 2026

After breaking ground on early construction activity late last year, Greenbacker’s utility-scale Cider project continued major construction activities in Genesee County, NY. When complete, Cider is expected to be the largest solar energy project in New York State, where Greenbacker is headquartered.

This phase of construction centers on key civil and mechanical activities, such as beginning installation of steel pilings and solar module racking systems. Additional phases of construction are expected to ramp up by mid-summer, including installation of electrical wiring and high-voltage utility interconnection infrastructure.

Over its operational lifespan, Cider is expected to generate approximately $100 million in revenue for local communities through property taxes, host community agreements, and tax benefits—funds that can be used to support critical services and infrastructure, including first responders, area roadways, and local schools. Cider’s construction is expected to support hundreds of clean energy jobs, driving both immediate and long-term economic impact across the region.

Cider is slated to enter commercial operation in late 2026 and is expected to generate approximately 1 billion kWh of power in its first full year of operation. The project plans to utilize agrivoltaics (dual land use combining photovoltaic production with agricultural practices) as part of a more cost-effective, nature-based approach to vegetation management. Cider will initially host rotational sheep grazing on over 300 acres, with the potential to increase grazing acreage across the project’s operational lifetime.

Wind and solar PPA revenue increased 17% year-over-year to $39 million, driving total operating revenue of $48 million; wind and solar power production increased 14%

Greenbacker generated total operating revenue of $47.5 million within its IPP segment during the first quarter of 2025, reflecting strong performance from the Company’s core operating fleet. This was driven by an increase in revenue from Greenbacker’s long-term power purchase agreements (“PPAs”) across both its wind and solar fleets, which together generated $38.8 million—a 17% increase compared to the same period last year, or an additional $5.8 million of revenue.

First-quarter net loss attributable to Greenbacker in 2025 was $(15.6) million and Adjusted EBTIDA³ was $14.4 million, representing year-over-year changes of 84% and 56%, respectively. The net loss reflected impairment charges resulting from deteriorating macroeconomic conditions, as well as depreciation and amortization, partially offset by a decrease in other operating expenses.

While total operating revenue represented a 3% year-over-year decline—primarily due to the timing of Renewable Energy Credit (“REC”) revenue recognition in the first quarter of 2024 and the divestment of a non-core asset in April 2024—the underlying power production of Greenbacker’s core fleet remained strong. Notably, the non-core divestiture was a key driver of the Company’s year-over-year increase in Adjusted EBITDA.

On a year-over-year basis, GREC increased its operating fleet size by 3%, as of the end of the first quarter of 2025, resulting in a 41 MW increase in total operating power production capacity.⁴ This included placing over a dozen new solar energy assets into commercial operation. In total, GREC’s operating solar and wind portfolios delivered a combined year-over-year power production increase of 14%,⁵ generating over 676 million kWh of clean energy in the quarter—enough to power approximately 63,000 average U.S. homes for one year.⁶


GREC Operating Fleet	1Q25	1Q24	YoY Increase (total)	YoY Increase (%)
Clean power produced by solar assets (MWh)	307,154	266,339	40,815	15%
PPA revenue generated by solar assets ($M)	$ 18.0	$15.3	$2.6	17%
Clean power produced by wind assets (MWh)	368,957	325,406	43,551	13%
PPA revenue generated by wind assets ($M)	$ 20.8	$17.7	$3.1	18%
Total clean power generated by wind and solar assets (MWh)	676,111	591,745	84,366	14%
Total PPA operating revenue generated by wind and solar assets ($M)	$ 38.8	$33.0	$5.8	17%

Some figures may not add to stated totals due to rounding. Total clean power generated does not include power generated from the non-core biomass facility during first quarter of 2024, which GREC divested in April 2024, nor does it include assets in which the Company holds a preferred equity position.

Long-term contracted cash flows with investment-grade counterparties

As of March 31, 2025, approximately 93% of Greenbacker’s portfolio of assets⁷ were contracted to sell power to investment-grade counterparties across the most resilient parts of the U.S. economy—including utilities, municipalities, and corporations—under long-term PPAs. The portfolio had approximately 17.3 years of contracted, highly visible cash flows associated with these PPAs, providing a solid foundation to build additional future revenue streams.

As of March 31, 2025, the Greenbacker operating fleet represented approximately 1.6 gigawatts of total clean power generation and storage capacity, spanning over 30 states, territories, districts and provinces.

Building a more resilient clean energy future by delivering homegrown power, driving decarbonization, and supporting the domestic economy

As of March 31, 2025, Greenbacker’s portfolio of energy assets had cumulatively produced more than 12 million MWh of power.⁸ This clean energy has abated over 8 million metric tons of carbon⁹ and conserved more than 8 billion gallons of water.¹⁰

Greenbacker’s business operations have driven more than $170 million in spending with U.S.-based manufacturers and suppliers in that period, directly supporting American industry and strengthening domestic supply chains, while advancing homegrown energy deployment.

To date, Greenbacker’s fleet of operating and pre-operating projects currently support, or are expected to support, thousands of green energy jobs.¹¹

Additional information regarding the Company’s impact can also be found in Greenbacker’s impact report.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although Greenbacker believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. Greenbacker undertakes no obligation to update any forward-looking statement contained herein to conform to actual results or changes in its expectations.

Private placements are speculative.
For financial professionals and their accredited investors only. Not for inspection by, distribution to, or quotation to the general public. There are material risks associated with investing in alternative investments including financing risks, general economic risks, long hold periods, and potential loss of the entire investment principal. Potential cash flow, returns, and appreciation are not guaranteed. The shares offered are illiquid assets for which there is not expected to be any secondary market, nor is it expected that any will develop in the future. The ability to transfer shares is limited. Pursuant to the LLC Agreement, GREC has the discretion under certain circumstances to prohibit transfers of shares, or to refuse to consent to the admission of a transferee as a member. Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Greenbacker Capital Management LLC and WealthForge Securities, LLC are separate entities.

Non-GAAP Financial Measures
In addition to evaluating the Company’s performance on a U.S. GAAP basis, the Company utilizes certain non-GAAP financial measures to analyze the operating performance of our segments as well as our consolidated business. Each of these measures should not be considered in isolation from or as superior to or as a substitute for other financial measures determined in accordance with U.S. GAAP, such as net income (loss) or operating income (loss). The Company uses these non-GAAP financial measures to supplement its U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting its operations.

Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure that the Company uses as a performance measure, as well as for internal planning purposes. We believe that Adjusted EBITDA is useful to management and investors in providing a measure of core financial performance adjusted to allow for comparisons of results of operations across reporting periods on a consistent basis, as it includes adjustments relating to items that are not indicative on the ongoing operating performance of the business.

Adjusted EBITDA is a performance measure used by management that is not calculated in accordance with U.S. GAAP. Adjusted EBITDA should not be considered in isolation from or as superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP. Additionally, our calculations of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Funds From Operations (FFO)
FFO is a non-GAAP financial measure that the Company uses as a performance measure to analyze net earnings from operations without the effects of certain non-recurring items that are not indicative of the ongoing operating performance of the business. FFO is calculated using Adjusted EBITDA less the impact of interest expense (excluding the non-cash component) and distributions to tax equity investors under the financing facilities associated with our IPP segment.

The Company believes that the analysis and presentation of FFO will enhance our investor’s understanding of the ongoing performance of our operating business. The Company considers FFO, in addition to other GAAP and non-GAAP measures, in assessing operating performance and as a proxy for growth in distribution coverage over the long term.

FFO should not be considered in isolation from or as a superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP.

General Disclosure
This information has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, or to participate in any trading or investment strategy. The information presented herein may involve Greenbacker’s views, estimates, assumptions, facts, and information from other sources that are believed to be accurate and reliable and are, as of the date this information is presented, subject to change without notice.


GREENBACKER RENEWABLE ENERGY COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)

	March 31, 2025			December 31, 2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	103,237		$	120,057
Restricted cash, current	31,949			38,403
Accounts receivable, net	28,033			27,103
Derivative assets, current	16,064			17,632
Other current assets	26,418			28,586
Total current assets	205,701			231,781
Noncurrent assets:
Restricted cash	2,131			3,128
Property, plant and equipment, net	2,280,196			2,232,486
Intangible assets, net	351,065			362,352
Investments, at fair value	75,196			74,136
Derivative assets	80,953			98,495
Other noncurrent assets	240,587			242,667
Total noncurrent assets	3,030,128			3,013,264
Total assets	$	3,235,829		$	3,245,045
Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities:
Accounts payable and accrued expenses	$	107,394		$	69,464
Contingent consideration, current	14,675			15,293
Current portion of long-term debt	85,969			88,901
Current portion of failed sale-leaseback financing and deferred ITC gain	45,868			45,868
Other current liabilities	8,034			8,767
Total current liabilities	261,940			228,293
Noncurrent liabilities:
Long-term debt, net of current portion	1,025,804			1,001,654
Failed sale-leaseback financing and deferred ITC gain, net of current portion	195,933			201,601
Deferred tax liabilities, net	24,495			35,316
Operating lease liabilities	195,090			196,911
Out-of-market contracts, net	170,749			180,640
Other noncurrent liabilities	62,005			59,561
Total noncurrent liabilities	1,674,076			1,675,683
Total liabilities	$	1,936,016		$	1,903,976
Commitments and contingencies (Note 13. Commitments and Contingencies)
Redeemable noncontrolling interests	$	1,851		$	1,851
Equity:
Preferred shares, par value, $0.001 per share, 50,000 authorized; none issued and outstanding	—			—
Common shares, par value, $0.001 per share, 350,000 authorized, 199,176 and 199,326 outstanding as of 2025 and 2024, respectively	199			199
Additional paid-in capital	1,774,330			1,773,758
Accumulated deficit	(600,317		)	(584,733		)
Accumulated other comprehensive income	33,690			34,937
Noncontrolling interests	90,060			115,057
Total equity	1,297,962			1,339,218
Total liabilities, redeemable noncontrolling interests and equity	$	3,235,829		$	3,245,045

GREENBACKER RENEWABLE ENERGY COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)

	Three months ended March 31,
	2025			2024
Revenue
Energy revenue	$	43,980		$	44,569
Investment Management revenue	3,260			3,931
Other revenue	301			668
Contract amortization, net	2,921			(2,615		)
Total net revenue	$	50,462		$	46,553

Operating expenses
Direct operating costs	23,911			26,990
General and administrative	17,046			18,855
Change in fair value of contingent consideration	—			493
Depreciation, amortization and accretion	21,628			20,485
Impairment of long-lived assets, net and project termination costs	13,665			6,328
Total operating expenses	76,250			73,151

Operating loss	(25,788		)	(26,598		)

Interest expense, net	(36,566		)	(4,250		)
Change in fair value of investments, net	990			(566		)
Income from sale-leaseback transfer of tax benefits	10,188			—
Other expense, net	148			125

Loss before income taxes	(51,028		)	(31,289		)
Benefit (expense) from income taxes	10,374			(3,064		)
Net loss	$	(40,654	)	$	(34,353	)
Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests	(25,068		)	(25,874		)
Net loss attributable to Greenbacker Renewable Energy Company LLC	$	(15,586	)	$	(8,479	)

Earnings per share
Basic	$	(0.08	)	$	(0.04	)
Diluted	$	(0.08	)	$	(0.04	)

Weighted average shares outstanding
Basic	199,333			198,856
Diluted	199,333			198,856

GREENBACKER RENEWABLE ENERGY COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)

	Three months ended March 31,
	2025			2024
Cash Flows from Operating Activities
Net loss	$	(40,654	)	$	(34,353	)
Adjustments to reconcile Net loss to Net cash (used in) provided by operating activities:
Depreciation, amortization and accretion	18,707			23,100
Impairment of long-lived assets, net	12,665			6,328
Share-based compensation expense	3,469			4,806
Changes in fair value of contingent consideration	—			493
Amortization of financing costs and debt discounts	2,963			1,661
Amortization of interest rate swap contracts	(1,693		)	4
Change in fair value of interest rate swaps, net	21,741			(9,944		)
Gain on interest rate swaps, net	—			(1,410		)
Change in fair value of investments	(990		)	566
Deferred income taxes	(10,374		)	3,064
Interest expense on failed sale-leaseback financing and deferred ITC gain	4,519			4,269
Income from sale-leaseback transfer of tax benefits	(10,188		)	—
Other	1,235			980
Changes in operating assets and liabilities:
Accounts receivable	(930		)	(826		)
Current and noncurrent derivative assets	—			51,269
Other current and noncurrent assets	1,085			2,988
Accounts payable and accrued expenses	(8,875		)	(8,227		)
Operating lease liabilities	(1,771		)	(714		)
Other current and noncurrent liabilities	(541		)	(243		)
Net cash (used in) provided by operating activities	(9,632		)	43,811
Cash Flows from Investing Activities
Purchases of property, plant and equipment	(28,564		)	(55,294		)
Net deposits returned (paid) for property, plant and equipment	(390		)	1,314
Other investing activities	(70		)	(45		)
Net cash used in investing activities	(29,024		)	(54,025		)
Cash Flows from Financing Activities
Shareholder distributions	—			(22,361		)
Repurchases of common shares	(341		)	(390		)
Deferred shareholder servicing fees	(739		)	(795		)
Contributions from noncontrolling interests	2,132			1,005
Distributions to noncontrolling interests	(5,071		)	(3,240		)
Proceeds from borrowings	58,731			50,920
Payments on borrowings	(40,054		)	(84,381		)
Proceeds from failed sale-leaseback	—			111,453
Payments on failed sale-leaseback	—			(25,080		)
Payments for loan origination costs	(273		)	(1,257		)
Net cash provided by financing activities	14,385			25,874
Net (decrease) increase in Cash, cash equivalents and Restricted cash	(24,271		)	15,660
Cash, cash equivalents and Restricted cash at beginning of period	161,588			187,675
Cash, cash equivalents and Restricted cash at end of period	$	137,317		$	203,335

Non-GAAP Reconciliations

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that the Company uses as a performance measure as well as for internal planning purposes. We believe that Adjusted EBITDA is useful to management and investors in providing a measure of core financial performance adjusted to allow for comparisons of results of operations across reporting periods on a consistent basis as it includes adjustments relating to items that are not indicative of the ongoing operating performance of the business.

The Company defines Adjusted EBITDA as net income (loss) before: (i) interest expense; (ii) income taxes; (iii) depreciation expense; (iv) amortization expense (including contract amortization); (v) accretion; (vi) impairment of long-lived assets; (vii) amounts attributable to our redeemable and non-redeemable noncontrolling interests; (viii) unrealized gains and losses on financial instruments; (ix) gains and losses for asset dispositions; (x) other income (loss); and (xi) foreign currency gain (loss). Additionally, the Company further adjusts for the following items described below:

Share-based compensation is excluded from Adjusted EBITDA as it is different from other forms of compensation as it is a non-cash expense and is highly variable. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity-based award is generally unrelated to the amount of cash ultimately received by the employee, and the cost to the Company is based on a share-based compensation valuation methodology and underlying assumptions that may vary over time;

The change in fair value of contingent consideration, which is related to the Acquisition, is excluded from Adjusted EBITDA, if any such change occurs during the period. The non-cash, mark-to-market adjustments are based on the expected achievement of revenue targets that are difficult to forecast and can be variable, making comparisons across historical and future quarters difficult to evaluate;

Start-up costs associated with new investment strategies is excluded from Adjusted EBITDA. The Company evaluates new investment strategies on a regular basis and excludes start-up cost from Adjusted EBITDA until such time as a new strategy is determined to form part of the Company’s core investment management business.

Placement fees, including internal sales commissions, related to fundraising efforts based on the capital raised, are excluded from Adjusted EBITDA. By excluding these fundraising-related fees from Adjusted EBITDA, we focus on core operational performance, separate from capital raising efforts, which might vary significantly from period to period.

Other costs that are not consistently occurring, not reflective of expected future operating expense and provide no insight into the fundamentals of current or past operations of our business are excluded from Adjusted EBITDA. This includes costs such as professional services and legal fees, and other non-recurring costs unrelated to the ongoing operations of the Company.

Adjusted EBITDA is a performance measure used by management that is not calculated in accordance with U.S. GAAP. Adjusted EBITDA should not be considered in isolation from or as superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP. Additionally, our calculations of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

FFO

FFO is a non-GAAP financial measure that the Company uses as a performance measure to analyze net earnings from operations without the effects of certain non-recurring items that are not indicative of the ongoing operating performance of the business.

FFO is calculated using Adjusted EBITDA less the impact of interest expense (excluding the non-cash component) and distributions to Tax Equity Investors under the financing facilities associated with our IPP segment. The Company excludes these distributions as these are not recorded within Adjusted EBITDA and is therefore not a component of our earnings from operations.

The Company believes that the analysis and presentation of FFO will enhance our investors’ understanding of the ongoing performance of our operating business. The Company considers FFO, in addition to other GAAP and non-GAAP measures, in assessing operating performance and as a proxy for growth in distribution coverage over the long-term.

Adjusted EBITDA and FFO should not be considered in isolation from or as a superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP.

The following table reconciles Net loss attributable to Greenbacker Renewable Energy Company LLC to Adjusted EBITDA and FFO:


	Three months ended March 31,
(in thousands)	2025			2024
Net loss attributable to Greenbacker Renewable Energy Company LLC	$	(15,586	)	$	(8,479	)
Add back or deduct the following:
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests	(25,068		)	(25,874		)
Benefit (expense) from income taxes	(10,374		)	3,064
Interest expense, net	36,566			4,250
Depreciation, amortization and accretion⁽¹⁾	18,804			23,235
EBITDA	$	4,342		$	(3,804	)
Share-based compensation expense	3,469			4,806
Change in fair value of contingent consideration	—			493
Change in fair value of investments, net	(990		)	566
Income from sale-leaseback transfer of tax benefits	(10,188		)	—
Other expense, net	(148		)	(125		)
Loss on asset disposition	13			—
Impairment of long-lived assets, net and project termination costs	13,665			6,328
Non-recurring professional services and legal fees	1,689			578
Non-recurring salaries and personnel related expenses⁽²⁾	2,596			393
Adjusted EBITDA	$	14,448		$	9,235
Cash portion of interest expense	(9,408		)	(8,349		)
Distributions to tax equity investors	(3,811		)	(3,277		)
FFO	$	1,229		$	(2,391	)

(1) Includes contract amortization, net in the amount of $2.9 million and $(2.6) million for the three months ended March 31, 2025 and 2024, respectively, which are included in Contract amortization, net on the Consolidated Statements of Operations; also includes certain other amortization costs included in Direct operating costs and General and administrative on the Consolidated Statements of Operations.

(2) Non-recurring salaries and personnel related expenses include start-up costs which primarily include salaries and personnel related expenses of incremental employees hired in advance to launch new investment strategy initiatives. Given the nature and scale of the related costs and activities, management does not view these as normal, recurring operating expenses, but rather as non-recurring investments to initially develop our new funds. Therefore, we believe it is useful and necessary for investors to understand our core operating performance in current and future periods by excluding the impact of these start-up costs as incurred. Non-recurring salaries and personnel related expenses also include placement fees, including internal sales commission.

The following table reconciles total Segment Adjusted EBITDA to Net loss attributable to Greenbacker Renewable Energy Company LLC:


	For the three months ended March 31,
(in thousands)	2025			2024
Segment Adjusted EBITDA:
IPP Adjusted EBITDA	$	22,515		$	17,291
IM Adjusted EBITDA	(689		)	(1,160		)
Total Segment Adjusted EBITDA	$	21,826		$	16,131

Reconciliation:
Total Segment Adjusted EBITDA	$	21,826		$	16,131
Unallocated corporate expenses	(7,378		)	(6,896		)
Total Adjusted EBITDA	$	14,448		$	9,235

Less:
Share-based compensation expense	3,469			4,806
Change in fair value of contingent consideration	—			493
Loss on asset disposition	13			—
Impairment of long-lived assets, net and project termination costs	13,665			6,328
Depreciation, amortization and accretion⁽¹⁾	18,804			23,235
Non-recurring professional services and legal fees	1,689			578
Non-recurring salaries and personnel related expenses⁽²⁾	2,596			393
Operating loss	$	(25,788	)	$	(26,598	)

Interest expense, net	(36,566		)	(4,250		)
Change in fair value of investments, net	990			(566		)
Income from sale-leaseback transfer of tax benefits	10,188			—
Other expense, net	148			125
Loss before income taxes	$	(51,028	)	$	(31,289	)

Benefit from (provision for) income taxes	10,374			(3,064		)
Net loss	$	(40,654	)	$	(34,353	)

Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests	(25,068		)	(25,874		)
Net loss attributable to Greenbacker Renewable Energy Company LLC	$	(15,586	)	$	(8,479	)

(1) Includes contract amortization, net in the amount of $2.9 million and $(2.6) million for the three months ended March 31, 2025 and 2024, respectively, which are included in Contract amortization, net on the Consolidated Statements of Operations; also includes certain other amortization costs included in Direct operating costs and General and administrative on the Consolidated Statements of Operations.

(2) Non-recurring salaries and personnel related expenses include start-up costs which primarily include salaries and personnel related expenses of incremental employees hired in advance to launch new investment strategy initiatives. Given the nature and scale of the related costs and activities, management does not view these as normal, recurring operating expenses, but rather as non-recurring investments to initially develop our new funds. Therefore, we believe it is useful and necessary for investors to understand our core operating performance in current and future periods by excluding the impact of these start-up costs as incurred. Non-recurring salaries and personnel related expenses also include placement fees, including internal sales commission.

About Greenbacker Renewable Energy Company
Greenbacker Renewable Energy Company LLC is a publicly reporting, non-traded limited liability sustainable infrastructure company that both acquires and manages income-producing renewable energy and other energy-related businesses, including solar and wind farms, and provides investment management services to other renewable energy investment vehicles. We seek to acquire and operate high-quality projects that sell clean power under long-term contracts to high-creditworthy counterparties such as utilities, municipalities, and corporations. We are long-term owner-operators, who strive to be good stewards of the land and responsible members of the communities in which we operate. Greenbacker conducts its investment management business through its wholly owned subsidiary, Greenbacker Capital Management, LLC, an SEC-registered investment adviser. We believe our focus on power production and asset management creates value that we can then pass on to our shareholders—while facilitating the transition toward a clean energy future. For more information, please visit https://greenbackercapital.com.

About Greenbacker Capital Management
Greenbacker Capital Management LLC is an SEC registered investment adviser that provides advisory and oversight services related to project development, acquisition, and operations in the renewable energy, energy efficiency, and sustainability industries. For more information, please visit www.greenbackercapital.com.

Greenbacker media contact
Chris Larson
Media Communications
646.569.9532
c.larson@greenbackercapital.com

_______________________________

¹ The financial and portfolio metrics set forth herein are unaudited and subject to change. Data as of March 31, 2025. Total assets and megawatts statistics include those projects where we have contracted for the acquisition of the project pursuant to a Membership Interest Purchase Agreement (“MIPA”).
²S&P 500 Suffers Worst Month Since 2022—Despite Monday Recovery, Forbes, March 2025.
³ Adjusted EBITDA is a non-GAAP financial measure that the Company uses as a performance measure, as well as for internal planning purposes. We believe that Adjusted EBITDA is useful to management and investors in providing a measure of core financial performance adjusted to allow for comparisons of results of operations across reporting periods on a consistent basis, as it includes adjustments relating to items that are not indicative on the ongoing operating performance of the business. See “Non-GAAP Financial Measures” for additional discussion. Adjusted EBITDA is unaudited. See the Company’s 10-Q filed with the SEC for additional financial information and important related disclosures.
⁴ Data as of March 31, 2025. Total assets and megawatts statistics include those projects where we have contracted for the acquisition of the project pursuant to a Membership Interest Purchase Agreement (“MIPA”). The financial and portfolio metrics set forth herein are unaudited and subject to change
⁵ Does not include power generated from biomass facility during first quarter of 2024, and also does not include assets in which the Company holds a preferred equity position
⁶ Based on the U.S. Energy Information Administration’s estimate that the average annual amount of electricity used by a U.S. residential electric-utility customer is 10,791 kilowatt-hours (kWh).
⁷ Includes both operating and pre-operating clean energy projects within the GREC portfolio.
⁸ Since January 2016.
⁹ Data is as of March 31, 2025. When compared with a similar amount of power generation from fossil fuels. Carbon abatement is calculated using the EPA Greenhouse Gas Equivalencies Calculator which uses the Avoided Emissions and generation Tool (AVERT) US national weighted average CO₂ marginal emission rate to convert reductions of kilowatt-hours into avoided units of carbon dioxide emissions.
¹⁰ Data is as of March 31, 2025. Water saved by Greenbacker’s clean energy projects is compared to the amount of water needed to produce the same amount of power by burning coal. Gallons of water saved are calculated based on Operational water consumption and withdrawal factors for electricity generating technologies: a review of existing literature – IOPscience, J Macknick et al 2012 Environ. Res. Lett. 7 045802.
¹¹ Data is as of March 31, 2025. Green jobs calculated using The National Renewable Energy Laboratory (NREL) State Clean Energy Employment Projection Support, nrel.gov.

The MIL Network –

June 3, 2025

MIL-OSI Europe: European Commission and EIB to further support decarbonisation projects from the Innovation Fund

Source: European Investment Bank

The agreement allows EIB Advisory to further increase its impact on supporting innovative decarbonisation projects in line with the Clean Industrial Deal.
Companies can now apply for project development assistance via the EIB Innovation Fund Project Development Assistance website.
The renewed agreement for the Innovation Fund Project Development Assistance (PDA) is building on the success of the first Innovation Fund PDA programme.

The European Commission and the European Investment Bank (EIB) have signed an agreement renewing Project Development Assistance (PDA) under the Innovation Fund to increase technical and financial advisory support for innovative decarbonisation projects that are either not selected via the Fund or are preparing to apply. The renewed PDA agreement aligns with the EU’s Clean Industrial Deal, which aims to increase the deployment of net-zero technologies and boost the competitiveness of industries across the EU.

Under the renewed agreement, EIB Advisory will provide PDA to up to 250 projects between 2025 to 2028, offering broader sectoral coverage and a smooth application process. This builds on the initial Innovation Fund PDA programme, which supported 62 innovative projects – 16 of which have already secured Innovation Fund grants, seven more have received funding from national sources or other programmes; and one has been designated an EU project of common interest.

With the expanded scope for broader coverage, the Commission has increased the budget available for EIB Advisory and its new PDA phase from €24 million to €90 million. This will further accelerate the deployment of cutting-edge decarbonisation technologies across Europe:

New sectors such as net-zero and low-carbon mobility including maritime, rail and road transport, and buildings have been added to the mandate following the changes to the Emission Trading System (EU ETS) which included these sectors in the Innovation Fund project scope.
New Key Performance Indicators (KPIs) have been added to help achieve geographical and sectoral balance and to promote small–scale projects as well as support immature projects.

The PDA contributes directly to the EIB’s strategic goals in climate action and innovation, reinforcing the shared commitment to support the development of high-impact projects that will help the EU meet its climate neutrality target and foster the growth of a sustainable and clean industrial base.

EIB Advisory services will be more easily accessible as projects can receive PDA through direct requests (‘open PDA’), in addition to the standard support mechanisms linked to Innovation Fund calls. This flexibility enhances the accessibility of the programme and allows for faster and more tailored support to promising innovative clean tech and industrial decarbonisation projects.

Under the open PDA, promoters will be able to contact the EIB advisory services directly to receive advice. EIB Advisory will carry out an assessment to identify the eligible projects’ needs and the potential of the PDA to address these, substantially increase the maturity of the project and with it the chances of success in relevant Innovation Fund calls. PDA will be awarded on a ‘first-come-first-served’ basis following this assessment.

For more information

EIB Innovation Fund Project Development Assistance website

Commissioner Hoekstra said:

“Through the Project Development Assistance from the Innovation Fund the EIB is providing further technical and financial help for promising decarbonisation projects. We lay the foundations of the innovative and competitive industrial base of tomorrow. This proves the EU’s long-term commitment to industrial decarbonisation and innovation. We are confident that the EIB with this renewed agreement will continue delivering a successful tailor-made support to Innovation Fund projects.”

Christoph Kuhn, EIB Deputy Director General Projects Department said:
“With the renewed PDA agreement, EIB Advisory is not only building on past success. It’s setting a new standard for how Europe can support its most innovative and transformative clean technologies.”

MIL OSI Europe News –

June 3, 2025

Russia sets out punitive terms at peace talks with Ukraine

Source: Government of India

Source: Government of India (4)

Russia told Ukraine at peace talks on Monday that it would only agree to end the war if Kyiv gives up big new chunks of territory and accepts limits on the size of its army, according to a memorandum reported by Russian media.

The terms, formally presented at negotiations in Istanbul, highlighted Moscow’s refusal to compromise on its longstanding war goals despite calls by U.S. President Donald Trump to end the “bloodbath” in Ukraine.

Ukraine has repeatedly rejected the Russian conditions as tantamount to surrender.

Delegations from the warring sides met for barely an hour, for only the second such round of negotiations since March 2022. They agreed to exchange more prisoners of war – focusing on the youngest and most severely wounded – and return the bodies of 12,000 dead soldiers.

Turkish President Tayyip Erdogan described it as a great meeting and said he hoped to bring together Russia’s Vladimir Putin and Ukraine’s Volodymyr Zelenskiy for a meeting in Turkey with Trump.

But there was no breakthrough on a proposed ceasefire that Ukraine, its European allies and Washington have all urged Russia to accept.

Moscow says it seeks a long-term settlement, not a pause in the war; Kyiv says Putin is not interested in peace. Trump has said the United States is ready to walk away from its mediation efforts unless the two sides demonstrate progress towards a deal.

Ukrainian Defence Minister Rustem Umerov, who headed Kyiv’s delegation, said Kyiv – which has drawn up its own peace roadmap – would review the Russian document, on which he offered no immediate comment.

Ukraine has proposed holding more talks before the end of June, but believes only a meeting between Zelenskiy and Putin can resolve the many issues of contention, Umerov said.

Zelenskiy said Ukraine presented a list of 400 children it says have been abducted to Russia, but that the Russian delegation agreed to work on returning only 10 of them. Russia says the children were moved from war zones to protect them.

RUSSIAN DEMANDS

The Russian memorandum, which was published by the Interfax news agency, said a settlement of the war would require international recognition of Crimea – a peninsula annexed by Russia in 2014 – and four other regions of Ukraine that Moscow has claimed as its own territory. Ukraine would have to withdraw its forces from all of them.

It restated Moscow’s demands that Ukraine become a neutral country – ruling out membership of NATO – and that it protect the rights of Russian speakers, make Russian an official language and enact a legal ban on glorification of Nazism. Ukraine rejects the Nazi charge as absurd and denies discriminating against Russian speakers.

Russia also formalised its terms for any ceasefire en route to a peace settlement, presenting two options that both appeared to be non-starters for Ukraine.

Option one, according to the text, was for Ukraine to start a full military withdrawal from the Luhansk, Donetsk, Zaporizhzhia and Kherson regions. Of those, Russia fully controls the first but holds only about 70% of the rest.

Option two was a package that would require Ukraine to cease military redeployments and accept a halt to foreign provision of military aid, satellite communications and intelligence. Kyiv would also have to lift martial law and hold presidential and parliamentary elections within 100 days.

Russian delegation head Vladimir Medinsky said Moscow had also suggested a “specific ceasefire of two to three days in certain sections of the front” so that the bodies of dead soldiers could be collected.

According to a proposed roadmap drawn up by Ukraine, a copy of which was seen by Reuters, Kyiv wants no restrictions on its military strength after any peace deal, no international recognition of Russian sovereignty over parts of Ukraine taken by Moscow’s forces, and reparations.

UKRAINE TARGETS RUSSIAN BOMBER FLEET

The conflict has been heating up, with Russia launching its biggest drone attacks of the war and advancing on the battlefield in May at its fastest rate in six months.

On Sunday, Ukraine said it launched 117 drones in an operation codenamed “Spider’s Web” to attack Russian nuclear-capable long-range bomber planes at airfields in Siberia and the far north of the country.

Satellite imagery suggested the attacks had caused substantial damage, although the two sides gave conflicting accounts of the extent of it.

Western military analysts described the strikes, thousands of miles from the front lines, as one of the most audacious Ukrainian operations of the war.

Russia’s strategic bomber fleet forms part of the “triad” of forces – along with missiles launched from the ground or from submarines – that make up the country’s nuclear arsenal, the biggest in the world. Faced with repeated warnings from Putin of Russia’s nuclear might, the U.S. and its allies have been wary throughout the Ukraine conflict of the risk that it could spiral into World War Three.

A current U.S. administration official said Trump and the White House were not notified before the attack. A former administration official said Ukraine, for operational security reasons, regularly does not disclose to Washington its plans for such actions.

A UK government official said the British government also was not told ahead of time.

Zelenskiy said the operation, which involved drones concealed inside wooden sheds, had helped to restore partners’ confidence that Ukraine is able to continue waging the war.

“Ukraine says that we are not going to surrender and are not going to give in to any ultimatums,” he told an online news briefing.

“But we do not want to fight, we do not want to demonstrate our strength – we demonstrate it because the enemy does not want to stop.”

(Reuters)

June 3, 2025

MIL-OSI: Temenos Named Best Core Banking System at Banking Tech Awards USA

Source: GlobeNewswire (MIL-OSI)

GRAND-LANCY, Switzerland, June 02, 2025 (GLOBE NEWSWIRE) — Temenos (SIX: TEMN), a global leader in banking technology, today announced it has received the award for Best Core Banking System at the Banking Tech Awards USA 2025. These prestigious industry awards recognize the cutting-edge innovations and outstanding achievements driving the future of banking technology across the United States.

With its best-of-suite core banking and modular core solutions, Temenos offers US financial institutions choice, flexibility and a proven path to banking modernization – all underpinned with cloud-native architecture, and embedded AI. Trusted by over 950 banks around the world, Temenos’ core banking software can be deployed on-premises, in the cloud, or as SaaS.

US financial institutions using Temenos also benefit from robust regionalization, pre-configured banking capabilities for the US market, and a Model Bank framework which enables faster, more cost-efficient implementation.

Rodrigo Silva, President Americas, Temenos, commented: “Winning this major award demonstrates the strength and depth of Temenos’ US banking capabilities, as well as our continued investment in this strategic growth market, which is helping to drive innovation in the US banking industry. With its advanced functionality, US-specific capabilities and flexible deployment options, Temenos is a compelling choice for US financial institutions.”

Temenos has further strengthened its commitment to innovation for the US market with the announcement of a new Innovation Hub in Central Florida. This modern, collaborative space will be home to around 200 technology and product developers, enabling co-innovation with US financial institutions and fueling cutting-edge research and development for US-specific solutions.

Investing around 20% of revenues in R&D, Temenos continues to enhance its core banking suite. Recent innovations include the launch of a Gen AI Copilot to help financial institutions design, launch, test and optimize financial products faster. The tool makes it easier for banking employees to access the full breadth of Temenos’ core banking functionality in a simple, conversational way. This builds on Temenos’ existing leadership in AI, with its launch of the first Responsible Generative AI solutions for core banking in 2024.

Temenos was also named a Leader in the IDC MarketScape for North America Digital Core Banking Platforms 2024 Vendor Assessment and in the The Forrester Wave™: Digital Banking Processing Platforms, Q4 2024.

The MIL Network –

June 3, 2025

MIL-OSI Europe: Written question – Protecting circular steel production by adopting a legal definition of green steel and amending CBAM – E-002051/2025

Source: European Parliament

Question for written answer E-002051/2025
to the Commission
Rule 144
Flavio Tosi (PPE), Massimiliano Salini (PPE), Letizia Moratti (PPE)

Presented in March 2025, the EU steel action plan aims to make the European steel industry more competitive, but does not provide a clear definition of the term ‘green steel’. The absence of objective criteria for production processes (their carbon footprint, the type of energy and raw materials they use) makes it impossible to introduce a labelling system that incentivises low-emission processes.

This legal vacuum is also reflected in the current design of the EU’s Carbon Border Adjustment Mechanism (CBAM), which does not guarantee a level playing field between EU producers and importers. Basing CBAM on the Emissions Trading System’s (ETS) free allocation benchmarks – which unfortunately take into account the process used rather than the product’s actual carbon footprint – will grant seamless access to the European market to third country steel products made using gas and virgin raw materials (DRI-EAF). Such a state of affairs would put the companies that use recycled scrap and renewable energies – which have to buy ETS credits for all their emissions – at a disadvantage.

In the light of the above:

1.Will the Commission provide a legal basis for green steel that is based on a product’s actual carbon footprint?
2.Will it amend CBAM to prevent any distortions that will harm circular steelmaking processes for flat and long products?
3.How will the Commission push for decarbonised steel to be included in industrial policies and public tenders?

Submitted: 21.5.2025

Last updated: 2 June 2025

MIL OSI Europe News –

June 2, 2025

MIL-OSI Australia: Blackdown Tableland National Park temporary closure

Source: Tasmania Police

Issued: 26 May 2025

Blackdown Tableland National Park is temporarily closed to allow roadworks aimed at improving visitor safety and access to be completed.

Queensland Parks and Wildlife Service (QPWS) is upgrading and resealing the main access road, as well as undertaking grading and re-gravelling works between Yaddamen Dhina (Horseshoe lookout) and the Munall camping area, including upgrades and repairs to steep, sealed sections of the road.

These improvements will enhance the overall visitor experience.

For safety reasons, the narrow and winding access road cannot accommodate vehicles and visitors during the roadworks.

Blackdown Tableland National Park is scheduled to reopen on 1 August 2025, following completion of roadworks.

QPWS will provide an update when the protected area is safe to reopen.

Visitors are being urged to check Park Alerts for up-to-date information on protected area closures.

The public is urged to obey all signs and directions from Rangers to ensure their safety.

Media contact: DETSI Media Unit on (07) 3339 5831 or media@des.qld.gov.au

MIL OSI News –

May 31, 2025

MIL-OSI Banking: Scheduled Banks’ Statement of Position in India as on Friday, May 16, 2025

Source: Reserve Bank of India

(Amount in ₹ crore)
		SCHEDULED COMMERCIAL BANKS (Including RRBs, SFBs and PBs)			ALL SCHEDULED BANKS
		17-May-2024	02-May-2025*	16-May-2025*	17-May-2024	02-May-2025*	16-May-2025*
I	LIABILITIES TO THE BKG.SYSTEM (A)
	a) Demand & Time deposits from banks	289665.55	349543.61	356140.08	293548.27	355582.28	362127.16**
	b) Borrowings from banks	162652.31	110268.37	112764.97	162655.67	110369.38	112767.97
	c) Other demand & time liabilities	74638.62	23238.10	23875.31	74865.42	23598.95	24262.77
II	LIABILITIES TO OTHERS (A)
	a) Deposits (other than from banks)	20814780.08	23034245.19	22887588.61	21273332.24	23526182.04	23379289.97
	i) Demand	2407754.17	2918312.92	2841891.13	2457236.72	2969172.27	2892038.03
	ii) Time	18407025.91	20115932.27	20045697.48	18816095.52	20557009.77	20487251.94
	b) Borrowings @	775774.36	868678.78	893728.27	779950.70	873014.81	898148.91
	c) Other demand & time liabilities	911191.51	1032332.99	998206.66	922791.96	1045482.05	1011114.42
III	BORROWINGS FROM R.B.I. (B)	161708.00	23458.00	23081.00	161708.00	23458.00	23081.00
	Against usance bills and / or prom. Notes			0.00			0.00
IV	CASH	84024.93	85894.00	85227.91	86536.63	88644.27	88034.90
V	BALANCES WITH R.B.I. (B)	950567.00	933070.35	928136.28	970618.00	952554.47	947302.36
VI	ASSETS WITH BANKING SYSTEM
	a) Balances with other banks
	i) In current accounts	9326.29	11987.03	11091.36	12032.22	14241.88	13330.22
	ii) In other accounts	179256.31	218568.59	233058.58	225178.94	280652.29	295070.10
	b) Money at call & short notice	14392.25	22530.69	17715.86	31978.36	41158.85	35986.40
	c) Advances to banks (i.e. due from bks.)	55883.81	38603.84	39786.83	58023.80	41591.12	42530.76Â£
	d) Other assets	119988.70	76547.84	78018.32	122833.28	80505.40	81982.16
VII	INVESTMENTS (At book value)	6199638.21	6713623.38	6680561.08	6352519.19	6867766.57	6834811.70
	a) Central & State Govt. securities+	6198671.95	6713009.68	6680032.89	6344840.42	6859431.14	6826362.09
	b) Other approved securities	966.27	613.70	528.19	7678.77	8335.43	8449.61
VIII	BANK CREDIT (Excluding Inter-Bank Advances)	16601013.84	18284956.79	18228295.86	17036200.63	18752419.76	18695312.44
	a) Loans, cash credits & Overdrafts $	16288503.21	17944355.56	17891538.64	16720375.59	18408325.48	18355139.20
	b) Inland Bills purchased	63646.64	80615.14	79832.65	63651.17	82034.32	81180.34
	c) Inland Bills discounted	207787.09	223812.18	221259.31	210442.27	224781.12	222739.64
	d) Foreign Bills purchased	16651.15	14036.24	14020.23	16875.71	14258.33	14240.69
	e) Foreign Bills discounted	24425.75	22137.66	21645.03	24855.88	23020.51	22012.57

NOTE
*	Provisional figures incorporated in respect of such banks as have not been able to submit final figures.
(A)	Demand and Time Liabilities do not include borrowings of any Scheduled State Co-operative Bank from State Government and any reserve fund deposits maintained with such banks by any co-operative society within the areas of operation of such banks.
**	This excludes deposits of Co-operative Banks with Scheduled State Co-operative Banks. These are included under item II (a).
@	Other than from Reserve Bank, National Bank for Agriculture and Rural Development and Export Import Bank of India.
(B)	The figures relating to Scheduled Commercial Banks’ Borrowings in India from Reserve Bank and balances with Reserve Bank are those shown in the statement of affairs of the Reserve Bank. Borrowings against usance bills and/ or promissory notes are under Section 17(4)(c) of the Reserve Bank of India Act, 1934. Following a change in the accounting practise for LAF transactions with effect from July 11, 2014, as per the recommendations of Malegam Committee formed to Review the Format of Balance Sheet and the Profit and Loss Account of the Bank, the transactions in case of Repo / Term Repo / MSF are reflected under ‘Borrowings from RBI’.
Â£	This excludes advances granted by Scheduled State Co-operative Banks to Co-operative banks. These are included under item VIII (a).
+	Includes Treasury Bills, Treasury Deposits, Treasury Savings Certificates and postal obligations.
$	Includes advances granted by Scheduled Commercial Banks and Scheduled Cooperative Banks to Public Food Procurement Agencies (viz. Food Corporation of India, State Government and their agencies under the Food consortium).

Food Credit Outstanding as on
(Amount in ₹ crore)
Date	17-May-2024	02-May-2025	16-May-2025
Scheduled Commercial Banks	41273.49	62446.15	68078.36
Scheduled Co-operative Banks	50623.09	51972.66	51972.99

The expression ‘Banking System’ or ‘Banks’ means the banks and any other financial institution referred to in sub-clauses (i) to (vi) of clause (d) of the explanation below Section 42(1) of the Reserve Bank of India Act, 1934.

No. of Scheduled Commercial Banks as on Current Fortnight:135

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2025-2026/440

MIL OSI Global Banks –

May 30, 2025

MIL-OSI: UP Fintech Holding Limited Reports Unaudited First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

SINGAPORE, May 30, 2025 (GLOBE NEWSWIRE) — UP Fintech Holding Limited (NASDAQ: TIGR) (“UP Fintech” or the “Company”), a leading online brokerage firm focusing on global investors, today announced its unaudited financial results for the first quarter ended March 31, 2025.

Mr. Wu Tianhua, Chairman and CEO of UP Fintech stated: “The macro environment remained dynamic in the first quarter, our total revenues reached US$122.6 million, representing an increase of 55.3% year-over-year. Benefiting from our brand strength and continued investment in R&D, both our GAAP and non-GAAP net income saw impressive growth. Net income attributable to ordinary shareholders of UP Fintech was US$30.4 million, up 8.4% quarter over quarter and 146.7% year over year. Non-GAAP net income attributable to ordinary shareholders of UP Fintech reached US$36.0 million, an increase of 18.3% sequentially and 145.0% from the same period last year.

In the first quarter, we added 60,900 new customers with deposits, already achieving 40% of our yearly guidance of 150,000 new customers with deposits for 2025, and bringing our total number of customers with deposits at the end of the first quarter to 1,152,900, a 23.5% increase compared to the same quarter last year. Asset inflow remained strong, we saw net asset inflow of US$3.4 billion in the first quarter, of which the majority comes from retail users, combining with a US$776 million mark to market gain, led total account balance rose by 9.9% quarter over quarter and 39.5% year over year to US$45.9 billion, setting another historic high. We also achieved notable growth in Hong Kong, the average net asset inflows of new funded clients in Hong Kong during the first quarter were above US$30,000.

In the first quarter, we continued to roll out new features aimed at enhancing the user experience across our platform. In Hong Kong, we introduced additional functionality on top of its existing virtual asset trading service. Retail investors can now deposit and withdraw cryptocurrency, such as Bitcoin and Ethereum, while professional investors are also able to deposit and withdraw USDT. Additionally, Tiger Brokers Hong Kong recently launched Delivery Versus Payment (DVP) functionality, which strengthens our ability to serve institutional and high-net-worth clients. We also introduced equity repo services to further enhance our securities lending and treasury management capabilities. In addition, we remain committed to improving our Tiger AI offering based on user feedback. It now supports portfolio and watchlist analysis, allowing users to more effectively identify investment opportunities, receive risk alerts on their holdings, and access actionable strategy suggestions.

In our Corporate business, we underwrote 4 Hong Kong IPOs in the first quarter, including “Chifeng Gold” and “Nanshan Aluminum”, and acted as distributor for “Mixue Group”, the largest Hong Kong IPO in the first quarter. In our ESOP business, we added 20 new clients in the first quarter, bringing the total number of ESOP clients served to 633 as of March 31, 2025.”

Financial Highlights for First Quarter 2025

Total revenues were US$122.6 million, an increase of 55.3% year-over-year and a decrease of 1.2% quarter-over-quarter.
Total net revenues were US$107.6 million, an increase of 67.7% year-over-year and an increase of 0.2% quarter-over-quarter.
Net income attributable to ordinary shareholders of UP Fintech was US$30.4 million compared to a net income of US$12.3 million in the same quarter of last year.
Non-GAAP net income attributable to ordinary shareholders of UP Fintech was US$36.0 million, compared to a non-GAAP net income of US$14.7 million in the same quarter of last year. A reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics is set forth below.

Operating Highlights for First Quarter 2025

Total account balance increased 39.5% year-over-year to US$45.9 billion.
Total margin financing and securities lending balance increased 89.4% year-over-year to US$5.2 billion.
Total number of customers with deposit increased 23.5% year-over-year to 1,152,900.

Selected Operating Data for First Quarter 2025

	As of and for the three months ended
	March 31,		December 31,		March 31,
	2024		2024		2025
In 000’s
Number of customer accounts		2,247.4		2,449.3		2,526.7
Number of customers with deposits		933.4		1,092.0		1,152.9
Number of options and futures contracts traded		10,850.3		18,926.3		20,400.7
In USD millions
Trading volume		85,410.6		198,016.9		217,453.6
Trading volume of stocks		28,606.3		55,502.6		59,453.4
Total account balance		32,872.1		41,725.2		45,861.9

First Quarter 2025 Financial Results

REVENUES

Total revenues were US$122.6 million, an increase of 55.3% from US$78.9 million in the same quarter of last year.

Commissions were US$58.3 million, an increase of 109.8% from US$27.8 million in the same quarter of last year, due to an increase in trading volume.

Financing service fees were US$2.6 million, a decrease of 9.6% from US$2.8 million in the same quarter of last year, primarily due to a decrease of the account balance of our fully disclosed account customers.

Interest income was US$53.8 million, an increase of 22.7% from US$43.8 million in the same quarter of last year, primarily due to the increase in margin financing and securities lending activities of our consolidated account customers.

Other revenues were US$7.9 million, an increase of 76.8% from US$4.5 million in the same quarter of last year, primarily due to an increase in currency exchange income and wealth management income.

Interest expense was US$15.0 million, an increase of 1.7% from US$14.8 million in the same quarter of last year, primarily due to the increase in funding for margin financing activities.

OPERATING COSTS AND EXPENSES

Total operating costs and expenses were US$67.1 million, an increase of 32.1% from US$50.8 million in the same quarter of last year.

Execution and clearing expenses were US$5.3 million, an increase of 139.3% from US$2.2 million in the same quarter of last year due to an increase in our trading volume.

Employee compensation and benefits expenses were US$33.8 million, an increase of 21.7% from US$27.8 million in the same quarter of last year, primarily due to an increase of global headcount to support our global expansion.

Occupancy, depreciation and amortization expenses were US$2.1 million, a slight increase of 0.2% from US$2.1 million in the same quarter of last year.

Communication and market data expenses were US$9.8 million, an increase of 14.4% from US$8.6 million in the same quarter of last year due to increased IT-related service fees.

Marketing and branding expenses were US$10.9 million, an increase of 147.5% from US$4.4 million in the same quarter of last year, primarily due to higher marketing spending this quarter.

General and administrative expenses were US$5.1 million, a decrease of 9.4% from US$5.7 million in the same quarter of last year due to a decrease in professional service fees.

NET INCOME attributable to ordinary shareholders of UP Fintech

Net income attributable to ordinary shareholders of UP Fintech was US$30.4 million, as compared to a net income of US$12.3 million in the same quarter of last year. Net income per ADS – diluted was US$0.166, as compared to a net income per ADS – diluted of US$0.077 in the same quarter of last year.

Non-GAAP net income attributable to ordinary shareholders of UP Fintech, which excludes share-based compensation, was US$36.0 million, as compared to a US$14.7 million non-GAAP net income attributable to ordinary shareholders of UP Fintech in the same quarter of last year. Non-GAAP net income per ADS – diluted was US$0.198 as compared to a non-GAAP net income per ADS – diluted of US$0.092 in the same quarter of last year.

For the first quarter of 2025, the Company’s weighted average number of ADSs used in calculating non-GAAP net income per ADS – diluted was 184,472,928. As of March 31, 2025, the Company had a total of 2,649,914,037 Class A and B ordinary shares outstanding, or the equivalent of 176,660,936 ADSs.

CERTAIN OTHER FINANCIAL ITEMS

As of March 31, 2025, the Company’s cash and cash equivalents, term deposits and long-term deposits were US$406.4 million, compared to US$396 million as of December 31, 2024.

As of March 31, 2025, the allowance for doubtful accounts on receivables from customers was US$14.8 million compared to US$15.3 million as of December 31, 2024.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 requires certain crypto assets to be measured at fair value separately on the balance sheet with changes reported in the statement of operations each reporting period.

The Company adopted this guidance from January 1, 2025, and the Company recorded such crypto asset balance in Crypto assets held as of March 31, 2025, with a cumulative-effect adjustment of US$2.3 million to the opening balance of Retained earnings.

Updates to Management and Directors

Mr. Ming Liao departed from the position of Independent Director at the Company due to personal reasons, effective May 28, 2025. Mr. Liao’s departure was not the result from any disagreement with the Company.

Conference Call Information:

UP Fintech’s management will hold an earnings conference call at 8:00 AM on May 30, 2025, U.S. Eastern Time (8:00 PM on May 30, 2025, Singapore/Hong Kong Time).

All participants wishing to attend the call must preregister online before receiving the dial-in number. Preregistration may take a few minutes to complete.

Preregistration Information:

Please note that all participants will need to pre-register for the conference call, using the link:
https://register-conf.media-server.com/register/BId8a2d4cd09e14653b3533b8d3745dfa0

It will automatically lead to the registration page of “UP Fintech Holding Limited First Quarter 2025 Earnings Conference Call”, where details for RSVP are needed.

Upon registering, all participants will be provided a confirmation email with a participant dial-in number and personal PIN to access the conference call. Please dial in 10 minutes prior to the call start time using the conference access information.

Additionally, a live and archived webcast of the conference call will be available at https://ir.itigerup.com

Use of Non-GAAP Financial Measures

In evaluating our business, we consider and use non-GAAP net income attributable to ordinary shareholders of UP Fintech and non-GAAP net income per ADS – diluted as supplemental measures to review and assess our operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the United States Generally Accepted Accounting Principles (“U.S. GAAP”). We define non-GAAP net income attributable to ordinary shareholders of UP Fintech as net income attributable to ordinary shareholders of UP Fintech excluding share-based compensation. Non-GAAP net income per ADS – diluted is non-GAAP net income attributable to ordinary shareholders of UP Fintech divided by the weighted average number of diluted ADSs.

We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. Non-GAAP net income attributable to ordinary shareholders of UP Fintech enables our management to assess our operating results without considering the impact of share-based compensation. We also believe that the use of these non-GAAP financial measures facilitates investors’ assessment of our operating performance.

These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as an analytical tool. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expenses that affect our operations. Share-based compensation has been and may continue to be incurred in our business and are not reflected in the presentation of non-GAAP net income attributable to ordinary shareholders of UP Fintech. Further, these non-GAAP financial measures may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.

These non-GAAP financial measures should not be considered in isolation or construed as alternatives to total operating costs and expenses, net income attributable to ordinary shareholders of UP Fintech or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review these historical non-GAAP financial measures in light of the most directly comparable GAAP measures. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing our data comparatively. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

About UP Fintech Holding Limited

UP Fintech Holding Limited is a leading online brokerage firm focusing on global investors. The Company’s proprietary mobile and online trading platform enables investors to trade in equities and other financial instruments on multiple exchanges around the world. The Company offers innovative products and services as well as a superior user experience to customers through its “mobile first” strategy, which enables it to better serve and retain current customers as well as attract new ones. The Company offers customers comprehensive brokerage and value-added services, including trade order placement and execution, margin financing, IPO subscription, ESOP management, investor education, community discussion and customer support. The Company’s proprietary infrastructure and advanced technology are able to support trades across multiple currencies, multiple markets, multiple products, multiple execution venues and multiple clearinghouses.

For more information on the Company, please visit: https://ir.itigerup.com.

Safe Harbor Statement

This announcement contains forward−looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward−looking statements can be identified by terminology such as “may,” “might,” “aim,” “likely to,” “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements or expressions. Among other statements, the business outlook and quotations from management in this announcement, the Company’s strategic and operational plans and expectations regarding growth and expansion of its business lines, and the Company’s plans for future financing of its business contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties, including the earnings conference call. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward−looking statements. Forward−looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s ability to effectively implement its growth strategies; trends and competition in global financial markets; changes in the Company’s revenues and certain cost or expense accounting policies; the cooperation relationships with our business partners and shareholders such as Interactive Brokers LLC and Xiaomi Corporation and its affiliates; and governmental policies and regulations affecting the Company’s industry and general economic conditions in China, Singapore and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC, including the Company’s annual report on Form 20-F filed with the SEC on April 23, 2025. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. Further information regarding these and other risks is included in the Company’s filings with the SEC.

For investor and media inquiries please contact:

Investor Relations Contact

UP Fintech Holding Limited

Email: ir@itiger.com

UP FINTECH HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in U.S. dollars (“US$”))

	As of December 31,			As of March 31,
	2024			2025
	US$			US$
Assets:
Cash and cash equivalents		393,576,874			403,891,218
Cash-segregated for regulatory purpose		2,464,683,625			2,849,477,420
Term deposits		1,075,260			1,101,083
Receivables from customers (net of allowance of US$15,284,002 and US$14,790,668 as of December 31, 2024 and March 31, 2025)		1,052,972,649			1,221,616,295
Receivables from brokers, dealers, and clearing organizations		2,305,740,507			2,556,498,087
Financial instruments held, at fair value		75,547,082			177,479,943
Prepaid expenses and other current assets		17,629,819			19,529,054
Amounts due from related parties		16,720,671			13,821,867
Total current assets		6,327,946,487			7,243,414,967
Non-current assets:
Long-term deposits		1,369,994			1,378,037
Right-of-use assets		10,880,673			12,736,333
Property, equipment and intangible assets, net		15,358,528			15,750,823
Crypto assets held		—			3,410,986
Goodwill		2,492,668			2,492,668
Long-term investments		7,658,809			7,473,531
Equity method investment		10,203,622			10,305,433
Other non-current assets		6,828,553			8,623,671
Deferred tax assets		8,573,135			9,931,234
Total non-current assets		63,365,982			72,102,716
Total assets		6,391,312,469			7,315,517,683
Current liabilities:
Payables to customers		3,574,651,125			4,333,279,026
Payables to brokers, dealers and clearing organizations:		1,914,769,701			1,975,967,952
Accrued expenses and other current liabilities		67,263,254			75,891,783
Lease liabilities-current		4,153,928			4,845,376
Amounts due to related parties		874,331			53,588,763
Total current liabilities		5,561,712,339			6,443,572,900
Convertible bonds		159,505,397			160,158,584
Lease liabilities- non-current		5,902,323			6,992,755
Deferred tax liabilities		2,068,661			2,161,995
Total liabilities		5,729,188,720			6,612,886,234
Mezzanine equity
Redeemable non-controlling interest		7,177,668			5,518,571
Total Mezzanine equity		7,177,668			5,518,571
Shareholders’ equity:
Class A ordinary shares		25,427			25,523
Class B ordinary shares		976			976
Additional paid-in capital		619,030,730			624,497,561
Statutory reserve		12,425,463			12,425,463
Retained earnings		37,843,547			70,712,884
Treasury stock		(2,172,819	)		(2,172,819	)
Accumulated other comprehensive loss		(11,919,310	)		(8,090,989	)
Total UP Fintech shareholders’ equity		655,234,014			697,398,599
Non-controlling interests		(287,933	)		(285,721	)
Total equity		654,946,081			697,112,878
Total liabilities, mezzanine equity and equity		6,391,312,469			7,315,517,683

UP FINTECH HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(All amounts in U.S. dollars (“US$”), except for number of shares (or ADSs) and per share (or ADS) data)

	For the three months ended
	March 31,			December 31,			March 31,
	2024			2024			2025
	US$			US$			US$
Revenues:
Commissions		27,786,218			55,964,174			58,307,151
Interest related income
Financing service fees		2,832,065			2,770,419			2,560,432
Interest income		43,841,220			55,762,091			53,805,393
Other revenues		4,488,989			9,605,165			7,936,987
Total revenues		78,948,492			124,101,849			122,609,963
Interest expense		(14,789,835	)		(16,731,341	)		(15,041,810	)
Total Net revenues		64,158,657			107,370,508			107,568,153
Operating costs and expenses:
Execution and clearing		(2,230,863	)		(6,095,132	)		(5,338,917	)
Employee compensation and benefits		(27,787,218	)		(37,163,110	)		(33,805,808	)
Occupancy, depreciation and amortization		(2,144,337	)		(2,137,586	)		(2,149,308	)
Communication and market data		(8,561,482	)		(11,787,814	)		(9,794,869	)
Marketing and branding		(4,390,987	)		(9,507,918	)		(10,867,048	)
General and administrative		(5,667,137	)		(6,432,737	)		(5,136,346	)
Total operating costs and expenses		(50,782,024	)		(73,124,297	)		(67,092,296	)
Other income (expense):
Others, net		3,615,219			3,469,021			(1,340,064	)
Income before income tax		16,991,852			37,715,232			39,135,793
Income tax expenses		(4,528,297	)		(9,488,084	)		(8,549,158	)
Net income		12,463,555			28,227,148			30,586,635
Less: net (loss) income attributable to non-controlling interests		(17,914	)		12,563			11,527
Accretion of redeemable non-controlling interests to redemption value		(151,322	)		(164,328	)		(155,983	)
Net income attributable to ordinary shareholders of UP Fintech		12,330,147			28,050,257			30,419,125
Other comprehensive income (loss), net of tax:
Unrealized gain on available-for-sale investments		—			343,892			—
Changes in cumulative foreign currency translation adjustment		(4,791,040	)		(17,440,809	)		3,826,640
Total Comprehensive income		7,672,515			11,130,231			34,413,275
Less: comprehensive (loss) income attributable to non-controlling interests		(13,454	)		24,226			9,845
Accretion of redeemable non-controlling interests to redemption value		(151,322	)		(164,328	)		(155,983	)
Total Comprehensive income attributable to ordinary shareholders of UP Fintech		7,534,647			10,941,677			34,247,447
Net income per ordinary share:
Basic		0.005			0.011			0.012
Diluted		0.005			0.011			0.011
Net income per ADS (1 ADS represents 15 Class A ordinary shares):
Basic		0.079			0.164			0.173
Diluted		0.077			0.158			0.166
Weighted average number of ordinary shares used in calculating net income per ordinary share:
Basic		2,342,468,897			2,557,911,677			2,634,972,699
Diluted		2,452,022,959			2,687,607,158			2,767,093,920

Reconciliations of Unaudited Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures
(All amounts in U.S. dollars (“US$”), except for number of ADSs and per ADS data)

For the three months ended March 31,2024

For the three months ended December 31,2024

For the three months ended March 31,2025

non-GAAP

GAAP

Adjustment

non-GAAP

GAAP

Adjustment

non-GAAP

GAAP

Adjustment

non-GAAP

US$

Unaudited

2,380,637

(1

)

2,421,342

(1

)

5,621,791

(1

)

Net income attributable to ordinary shareholders of UP Fintech

12,330,147

2,380,637

14,710,784

28,050,257

2,421,342

30,471,599

30,419,125

5,621,791

36,040,916

Net income per ADS – diluted

0.077

0.092

0.158

0.172

0.166

0.198

Weighted average number of ADSs used in calculating diluted net income per ADS

163,468,197

179,173,811

184,472,928

(1) Share-based compensation.

The MIL Network –

May 30, 2025

MIL-OSI New Zealand: Final recipient announced as round two of Innovation Fund opens

Source: New Zealand Government

The Minister for Mental Health Matt Doocey has announced round two of the Government’s Mental Health and Addiction Community Sector Innovation Fund has opened today.

“The bottom line for this Government is to ensure we are delivering timely quality mental health and addiction support to those who are bravely reaching out for help in their greatest time of need,” Mr Doocey says.

“I am excited for community organisations across the country to have another opportunity to access funding. This time, there will be more smaller grassroots organisations that will be eligible to apply for funding due to the recently announced lowered matched funding limit required.

“It’s also my pleasure to announce that Tend Health Ltd is the ninth and final recipient from the fund’s first round to set up a new digital primary mental health and addiction service.

“The new service aims to make it easier for people to get primary mental health support, particularly those who are not enrolled in general practice or have difficulty accessing general practice.

“A multi-disciplinary mental health and addictions team will deliver support virtually and with extended operating hours, giving people more flexible access to help when they need it.

“Once fully operational, Tend’s new service is expected to deliver more than 15,000 sessions to more than 5,000 people, which is another significant step towards the Government’s commitment to strengthen people’s access to mental health and addiction support.

The initiative will receive $1.97 million of funding over two years from the Government which will be matched dollar-for-dollar by Tend to total just under $4 million.

“I am also proud that funding from round one has already enabled eight other organisations to start delivering new and expanded initiatives. They include MATES in Construction, the Mental Health Foundation, Youthline, Wellington City Mission, Rotorua Community Youth Centre Trust, the Sir John Kirwan Foundation, Women’s Refuge, and Just a Thought.

“By supporting these initiatives, we’re ensuring that people across New Zealand can access the support they need, while also working towards the Government’s goal of growing the clinical workforce and reducing wait times for mental health and addiction services.

“I encourage all eligible providers to take up the opportunity to apply for funding and scale-up their work to benefit the many people in the communities they serve,” Mr Doocey says.

Note to editors:
• The Request for Proposals for round two of the Mental Health and Addiction Community Sector Innovation Fund has been released on the Government Electronic Tenders Site (GETS) here.
• The match funding requirement for round one required $250,000 per application, round two requires $100,000 per application.

MIL OSI New Zealand News –

May 30, 2025

MIL-OSI: Ambarella, Inc. Announces First Quarter Fiscal Year 2026 Financial Results

Source: GlobeNewswire (MIL-OSI)

SANTA CLARA, Calif., May 29, 2025 (GLOBE NEWSWIRE) — Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced first quarter fiscal 2026 financial results for the period ended April 30, 2025.

Revenue for the first quarter of fiscal 2026 was $85.9 million, up 57.6% from $54.5 million in the same period in fiscal 2025.
Gross margin under U.S. generally accepted accounting principles (GAAP) for the first quarter of fiscal 2026 was 60.0%, compared with 60.9% for the same period in fiscal 2025.
GAAP net loss for the first quarter of fiscal 2026 was $24.3 million, or loss per diluted ordinary share of $0.58, compared with a GAAP net loss of $37.9 million, or loss per diluted ordinary share of $0.93, for the same period in fiscal 2025.

Financial results on a non-GAAP basis for the first quarter of fiscal 2026 are as follows:

Gross margin on a non-GAAP basis for the first quarter of fiscal 2026 was 62.0%, compared with 63.4% for the same period in fiscal 2025.
Non-GAAP net profit for the first quarter of fiscal 2026 was $3.0 million, or earnings per diluted ordinary share of $0.07. This compares with non-GAAP net loss of $10.5 million, or loss per diluted ordinary share of $0.26, for the same period in fiscal 2025.

Based on information available as of today, Ambarella is offering the following guidance for the second quarter of fiscal year 2026, ending July 31, 2025:

Revenue is expected to be between $86.0 million and $94.0 million.
Gross margin on a non-GAAP basis is expected to be between 60.5% and 62.0%.
Non-GAAP operating expenses are expected to be between $52.5 million and $55.5 million.

Ambarella reports gross margin, net income (loss) and earnings (losses) per share in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP financial information excludes the impact of stock-based compensation and acquisition-related costs adjusted for the associated tax impact, which includes the effect of any benefits or shortfalls recognized. A reconciliation of the GAAP to non-GAAP gross margin, net income (loss) and earnings (losses) per share for the periods presented, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this press release.

Total cash, cash equivalents and marketable debt securities on hand at the end of the first quarter of fiscal 2026 was $259.4 million, compared with $250.3 million at the end of the prior quarter and $203.3 million at the end of the same quarter a year ago.

“As the established edge AI market leader, we achieved our fourth consecutive quarter of record AI revenue with results in the upper half of our Q1 revenue guidance range. We are increasing our fiscal 2026 revenue growth guidance to a range of 19% to 25%, or approximately $348 million at the mid-point, with the broader guidance range reflecting our consideration of the uncertain geopolitical environment,” said Fermi Wang, President & CEO. “We continue to innovate at a rapid pace, and by leveraging our low power and scalable 3^rd generation AI silicon and software architecture, our development of a new SoC is efficiently extending our reach into the edge AI infrastructure market.”

Stock Repurchase

During the second quarter of fiscal year 2026, Ambarella’s Board of Directors approved an extension of the current share repurchase program for an additional twelve months ending June 30, 2026. In the first quarter of fiscal year 2026, the company repurchased a total of 24,152 shares for total consideration of approximately $1.0 million. As of today, there is approximately $48.0 million available for repurchase under the company’s stock repurchase program. The repurchase program does not obligate the company to acquire any particular amount of ordinary shares, and it may be suspended at any time at the company’s discretion.

Quarterly Conference Call

Ambarella plans to hold a conference call at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time today with Fermi Wang, President and Chief Executive Officer, and John Young, Chief Financial Officer, to discuss the first quarter of fiscal year 2026 results. A live and archived webcast of the call will be available on Ambarella’s website at http://www.ambarella.com/ for up to 30 days after the call.

About Ambarella

Ambarella’s products are used in a wide variety of edge AI and human vision applications, including video security, advanced driver assistance systems (ADAS), electronic mirror, drive recorder, driver/cabin monitoring, autonomous driving and robotics applications. Ambarella’s low-power systems-on-chip (SoCs) provide powerful deep neural network processing to enable intelligent perception, fusion and planning, and offer high-resolution video compression, advanced image and radar processing. For more information, please visit www.ambarella.com.

“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements that are not historical facts and often can be identified by terms such as “outlook,” “projected,” “intends,” “will,” “estimates,” “anticipates,” “expects,” “believes,” “could,” “should,” or similar expressions, including the guidance for the second quarter of fiscal year 2026 ending July 31, 2025, and the comments of our CEO relating to our expectation of future revenue growth, the growth potential for our edge AI inference products, our ability to continue to innovate, and our ability to expand into edge infrastructure. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. Our actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of our future performance.

The risks and uncertainties referred to above include, but are not limited to, global economic and political conditions; changes in government policies, including possible trade tariffs and restrictions; revenue being generated from new customers or design wins, neither of which is assured; the commercial success of our customers’ products; our customers’ ability to manage their inventory requirements; our growth strategy; our ability to anticipate future market demands and future needs of our customers, particularly for AI inference applications; our ability to introduce, and to generate revenue from, new and enhanced solutions; our ability to develop, and to generate revenue from, new advanced technologies, such as computer vision, AI functionality and advanced networks, including vision-language models and GenAI; our ability to retain and expand customer relationships and to achieve design wins; the expansion of our current markets and our ability to successfully enter new markets and applications, such as edge infrastructure; anticipated trends and challenges, including competition, in the markets in which we operate; risks associated with global health conditions and associated risk mitigation measures; our ability to effectively manage growth; our ability to retain key employees; and the potential for intellectual property disputes or other litigation.

Further information on these and other factors that could affect our financial results is included in the company’s Annual Report on Form 10-K for our 2025 fiscal year, which is on file with the Securities and Exchange Commission. Additional information will also set forth in the company’s quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings the company makes with the Securities and Exchange Commission from time to time, copies of which may be obtained by visiting the Investor Relations portion of our web site at www.ambarella.com or the SEC’s web site at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. The results we report in our Quarterly Report on Form 10-Q for the first fiscal quarter ended April 30, 2025 could differ from the preliminary results announced in this press release.

Ambarella assumes no obligation and does not intend to update the forward-looking statements made in this press release, except as required by law.

Non-GAAP Financial Measures

The company has provided in this release non-GAAP financial information, including non-GAAP gross margin, net income (loss), and earnings (losses) per share, as a supplement to the condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles (“GAAP”). Management uses these non-GAAP financial measures internally in analyzing the company’s financial results to assess operational performance and liquidity. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting and analyzing future periods. Further, the company believes these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key financial metrics that the company uses in making operating decisions and because the company believes that investors and analysts use them to help assess the health of its business and for comparison to other companies. Non-GAAP results are presented for supplemental informational purposes only for understanding the company’s operating results. The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP measures used by other companies.

With respect to its financial results for the first quarter of fiscal year 2026, the company has provided below reconciliations of its non-GAAP financial measures to its most directly comparable GAAP financial measures. With respect to the company’s expectations for the second quarter of fiscal year 2026, a reconciliation of non-GAAP gross margin and non-GAAP operating expenses guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability and low visibility with respect to the charges excluded from these non-GAAP measures. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

AMBARELLA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)

	Three Months Ended April 30,
		2025			2024


Revenue	$	85,872		$	54,473

Cost of revenue		34,336			21,313
Gross profit		51,536			33,160

Operating expenses:
Research and development		58,819			54,137
Selling, general and administrative		18,575			18,468

Total operating expenses		77,394			72,605

Loss from operations		(25,858	)		(39,445	)

Other income, net		2,175			2,271

Loss before income taxes		(23,683	)		(37,174	)

Provision for income taxes		645			758

Net loss	$	(24,328	)	$	(37,932	)

Net loss per share attributable to ordinary shareholders:
Basic	$	(0.58	)	$	(0.93	)
Diluted	$	(0.58	)	$	(0.93	)
Weighted-average shares used to compute net loss per share
attributable to ordinary shareholders:
Basic		42,219,972			40,774,991
Diluted		42,219,972			40,774,991

The following tables present details of stock-based compensation and acquisition-related costs included in each functional line item in the condensed consolidated statements of operations above:


	Three Months Ended April 30,
		2025		2024
	(unaudited, in thousands)
Stock-based compensation:
Cost of revenue	$	951	$	607
Research and development		17,585		17,621
Selling, general and administrative		7,594		7,808

Total stock-based compensation	$	26,130	$	26,036


	Three Months Ended April 30,
		2025		2024

	(unaudited, in thousands)
Acquisition-related costs:
Cost of revenue	$	757	$	757
Research and development		—		—
Selling, general and administrative		456		520

Total acquisition-related costs	$	1,213	$	1,277

The difference between GAAP and non-GAAP gross margin was 2.0% and 2.5%, or $1.7 million and $1.4 million, for the three months ended April 30, 2025 and 2024, respectively. The differences were due to the effect of stock-based compensation and amortization of acquisition-related costs.


AMBARELLA, INC.
RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS (LOSSES) PER SHARE
(in thousands, except share and per share data)

	Three Months Ended April 30,
		2025			2024

	(unaudited)
GAAP net loss	$	(24,328	)	$	(37,932	)

Non-GAAP adjustments:
Stock-based compensation expense		26,130			26,036
Acquisition-related costs		1,213			1,277
Income tax effect		14			152
Non-GAAP net income (loss)	$	3,029		$	(10,467	)

GAAP – diluted weighted average shares		42,219,972			40,774,991
Non-GAAP – diluted weighted average shares		42,451,235			40,774,991

GAAP – diluted net loss per share	$	(0.58	)	$	(0.93	)
Non-GAAP adjustments:
Stock-based compensation expense		0.62			0.64
Acquisition-related costs		0.03			0.03
Income tax effect		—			—
Effect of Non-GAAP – diluted weighted average shares		—			—
Non-GAAP – diluted net income (loss) per share	$	0.07		$	(0.26	)

AMBARELLA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

	April 30,			January 31,
		2025			2025

ASSETS
Current assets:
Cash and cash equivalents	$	141,285		$	144,622
Marketable debt securities		118,102			105,643
Accounts receivable, net		30,235			29,767
Inventories		39,289			34,428
Restricted cash		441			7
Prepaid expenses and other current assets		6,197			6,084
Total current assets		335,549			320,551

Property and equipment, net		10,248			9,084
Intangible assets, net		44,895			47,279
Operating lease right-of-use assets, net		4,377			5,188
Goodwill		303,625			303,625
Other non-current assets		3,224			3,241

Total assets	$	701,918		$	688,968

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		35,290			21,775
Accrued and other current liabilities		73,479			80,781
Operating lease liabilities, current		2,335			2,829
Income taxes payable		1,633			1,383
Deferred revenue, current		12,114			14,226
Total current liabilities		124,851			120,994

Operating lease liabilities, non-current		2,056			2,436
Other long-term liabilities		2,295			4,126

Total liabilities		129,202			127,556

Shareholders’ equity:
Preference shares		—			—
Ordinary shares		19			19
Additional paid-in capital		848,756			813,683
Accumulated other comprehensive income (loss)		326			(233	)
Accumulated deficit		(276,385	)		(252,057	)
Total shareholders’ equity		572,716			561,412

Total liabilities and shareholders’ equity	$	701,918		$	688,968

Contact:

Louis Gerhardy
408.636.2310
lgerhardy@ambarella.com

The MIL Network –

May 30, 2025

MIL-OSI: BOS Reports Record $15 Million in Revenues for the First Quarter of 2025

Source: GlobeNewswire (MIL-OSI)

RISHON LE ZION, Israel, May 29, 2025 (GLOBE NEWSWIRE) — BOS Better Online Solutions Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC) reported its financial results for the first quarter of the year 2025.

First Quarter 2025 Financial Highlights:

Revenues increased by 33.1% to $15.0 million from $11.3 million in the first quarter of the year 2024;
Gross profit margin improved to 23.9% compared to 22.7% in the first quarter of the year 2024;
EBITDA increased by 86.2% to $1.9 million compared to $1.0 million in the first quarter of the year 2024;
Operating expenses increased by only 7.7% compared to the 33.1% increase in revenues, demonstrating operating leverage;
Net income increased by 82.3% to $1.35 million or $0.23 per basic share compared to $741,000 or $0.13 per basic share in the first quarter of the year 2024;
Backlog was $22 million as of March 31, 2025 compared to $27 million as of December 31, 2024.

Eyal Cohen, Chief Executive Officer at BOS, stated: “I am pleased to report record revenues and record net income in the first quarter, demonstrating the success of our strategic focus on the defense sector and diligent operating efficiency. We continue to capitalize on the growing opportunities in this rapidly changing sector by increasing contracting activity with existing customers and securing new customers.”

“Based on our first quarter performance and contracted backlog, we are optimistic about surpassing our full-year outlook for 2025, which are revenues of $44 million and net income of $2.5 million,” Cohen concluded.

“Our record results in the first quarter reflect BOS’s long-term investments in developing a diverse product offering and establishing a robust operational and financial framework, all of which are specifically designed to meet the evolving and distinct demands of the defense industry,” said Avidan Zelicovsky, BOS President.

BOS will host a video conference meeting on May 29, 2024 at 8:30 a.m. EDT. A question-and-answer session will follow management’s presentation. To access the video conference meeting, please click on the following link: https://us06web.zoom.us/j/83920447982?pwd=nxng3dstyBqK9argz8YQSsH9Cx4VkE.1

For those unable to participate in the video conference, a recording of the meeting will be available the next day on the BOS website: www.boscom.com

About BOS

BOS integrates cutting-edge technologies to streamline and enhance supply chain operations for global customers in the aerospace, defense, industrial and retail sectors. The Company integrates three specialized divisions:

– Intelligent Robotics Division: Automates industrial and logistics inventory processes through advanced robotics technologies, improving efficiency and precision.

– RFID Division: Optimizes inventory management with state-of-the-art solutions for marking and tracking, ensuring real-time visibility and control.

– Supply Chain Division: Integrates franchised components directly into customer products, meeting their evolving needs for developing innovative solutions.

For more information on BOS Better Online Solutions Ltd., visit www.boscom.com.

For additional information, contact:

Matt Kreps, Managing Director
Darrow Associates
+1-214-597-8200
mkreps@darrowir.com

Eyal Cohen, CEO
+972-542525925
eyalc@boscom.com

Use of Non-GAAP Financial Information
BOS reports financial results in accordance with US GAAP and herein provides some non-GAAP measures. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company’s presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measures presented to evaluate and manage the Company’s operations internally. The Company is also providing this information to assist investors in performing additional financial analysis that is consistent with financial models developed by research analysts who follow the Company. The reconciliation set forth below is provided in accordance with Regulation G and reconciles the non-GAAP financial measures with the most directly comparable GAAP financial measures.

Safe Harbor Regarding Forward-Looking Statements

The forward-looking statements contained herein reflect management’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of BOS. These risk factors and uncertainties include, amongst others, the dependency of sales being generated from one or few major customers, the uncertainty of BOS being able to maintain current gross profit margins, inability to keep up or ahead of technology and to succeed in a highly competitive industry, inability to maintain marketing and distribution arrangements and to expand our overseas markets, uncertainty with respect to the prospects of legal claims against BOS, the effect of exchange rate fluctuations, general worldwide economic conditions, the effect of the war against the Hamas and other parties in the region, the continued availability of financing for working capital purposes and to refinance outstanding indebtedness; and additional risks and uncertainties detailed in BOS’ periodic reports and registration statements filed with the US Securities and Exchange Commission. BOS undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.


CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands

	Three months ended March 31,						Year ended December 31,
		2025			2024			2024
		(Unaudited)			(Unaudited)				(Audited)

Revenues	$	15,026		$	11,287		$	39,949
Cost of revenues		11,437			8,727			30,655
Gross profit		3,589			2,560			9,294
Operating costs and expenses:
Research and development		41			44			175
Sales and marketing		1,263			1,162			4,394
General and administrative		542			508			2,113
Impairment of intangible assets and Goodwill		–			–			1,173
Total operating costs and expenses		1,846			1,714			7,855

Operating income		1,743			846			1,439
Financial expenses, net		(272	)		(105	)		(139		)
Income before taxes on income		1,471			741			1,300
Income taxes benefits (expenses)		(120	)		–			1,000
Net income	$	1,351		$	741		$	2,300

Basic net income per share	$	0.23		$	0.13		$	0.40
Diluted net income per share	$	0.22		$	0.13		$	0.39
Weighted average number of shares used in computing basic net income per share		5,900			5,748			5,756
Weighted average number of shares used in computing diluted net income per share		6,273			5,828			5,887

Number of outstanding shares as of March 31, 2025 and 2024 and December 31, 2024		5,924			5,748			5,793


CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)

	March 31, 2025		December 31, 2024
	(Unaudited)		(Audited)
ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	3,844	$	3,368
Restricted bank deposits		66		185
Trade receivables, net		15,839		11,787
Other accounts receivable and prepaid expenses		1,235		1,150
Inventories		7,505		7,870

Total current assets		28,489		24,360

LONG-TERM ASSETS		167		177

PROPERTY AND EQUIPMENT, NET		3,362		3,417

OPERATING LEASE RIGHT-OF-USE ASSETS, NET		727		779

DEFERRED TAX ASSETS		981		1,000

OTHER INTANGIBLE ASSETS, NET		407		422

GOODWILL		4,188		4,188

Total assets	$	38,321	$	34,343


CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)

	March 31, 2025		December 31, 2024
	(Unaudited)		(Audited)

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:
Current maturities of long-term loans	$	342	$	439
Operating lease liabilities, current		161		176
Trade payables		7, 769		6,362
Employees and payroll accruals		1,128		1,087
Deferred revenues		2,543		2,003
Accrued expenses and other liabilities		1,091		598

Total current liabilities		13,034		10,665

LONG-TERM LIABILITIES:
Long-term loans, net of current maturities		921		980
Operating lease liabilities, non-current		530		576
Long-term deferred revenues		273		293
Accrued severance pay, net		514		498

Total long-term liabilities		2,238		2,347


TOTAL SHAREHOLDERS’ EQUITY		23,049		21,331


Total liabilities and shareholders’ equity	$	38, 321	$	34,343


CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)

	Three months ended March 31,				Year ended December 31,
		2025		2024			2024

Operating income	$	1,743	$	846		$	1,439
Add:
Impairment of Goodwill and other intangible assets				–			1,173
Amortization of intangible assets		15		47			190
Stock-based compensation		9		21			74
Depreciation		101		89			370
EBITDA	$	1,868	$	1,003		$	3,246


SEGMENT INFORMATION
(U.S. dollars in thousands)

	RFID		Supply Chain Solutions		Intelligent Robotics		Intercompany		Consolidated
						Three months ended March 31, 2025

Revenues	$	3,259	$	11,390		496	(119	)	$	15,026

Gross profit		707		2,756		126	–			3,589

Allocated operating expenses		529		1,048		68	–			1,645

Unallocated operating expenses*				–		–				201

Income from operations	$	178	$	1,708	$	58				1,743

Financial expenses and tax on income										(392	)

Net income									$	1,351

	RFID			Supply Chain Solutions		Intelligent Robotics	Intercompany		Consolidated
					Three months ended March 31, 2024

Revenues	$	3,683	$	7,356	250		(2	)		$	11,287

Gross profit		992		1,484	84		–				2,560

Allocated operating expenses		565		909	62		–				1,536

Unallocated operating expenses*		–		–		–					178
Income from operations	$	427	$	575	$	22					846

Financial expenses and tax on income											(105	)

Net income										$	741

SEGMENT INFORMATION
(U.S. dollars in thousands)

	RFID			Supply Chain Solutions		Intelligent Robotics		Intercompany		Consolidated
			Year ended December 31, 2024


Revenues	$	12,877		$	25,829		1,410	(167	)		$	39,949

Gross profit		3,533			5,430		331					9,294


Allocated operating expenses		2,273			3,338		274					5,885

Impairment of goodwill and intangible assets		984			189		–					1,173

Unallocated operating expenses*		–			–		–					797

Income from operations	$	276		$	1,903	$	57					1,439

Financial expenses and tax benefit												861

Net income											$	2,300

*Unallocated operating expenses include costs not specific to a particular segment but general to the entire group, such as expenses incurred for insurance of directors and officers, public company fees, legal fees, and other similar corporate costs.

The MIL Network –

May 30, 2025

MIL-OSI: Futu Announces First Quarter 2025 Unaudited Financial Results

Source: GlobeNewswire (MIL-OSI)

HONG KONG, May 29, 2025 (GLOBE NEWSWIRE) — Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, today announced its unaudited financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Operational Highlights

Total number of funded accounts¹ increased 41.6% year-over-year to 2,673,119 as of March 31, 2025.
Total number of brokerage accounts² increased 30.0% year-over-year to 4,955,319 as of March 31, 2025.
Total number of users³ increased 16.8% year-over-year to 26.3 million as of March 31, 2025.
Total client assets increased 60.2% year-over-year to HK$829.8 billion as of March 31, 2025.
Daily average client assets were HK$790.4 billion in the first quarter of 2025, an increase of 64.7% from the same period in 2024.
Total trading volume in the first quarter of 2025 increased by 140.1% year-over-year to HK$3.22 trillion, in which trading volume for U.S. stocks was HK$2.25 trillion, and trading volume for Hong Kong stocks was HK$916.0 billion.
Margin financing and securities lending balance increased 33.7% year-over-year to HK$50.3 billion as of March 31, 2025.

First Quarter 2025 Financial Highlights

Total revenues increased 81.1% year-over-year to HK$4,694.6 million (US$603.4 million).
Total gross profit increased 85.9% year-over-year to HK$3,945.7 million (US$507.2 million).
Net income increased 107.0% year-over-year to HK$2,142.7 million (US$275.4 million).
Non-GAAP adjusted net income⁴ increased 97.7% year-over-year to HK$2,216.9 million (US$285.0 million).

Mr. Leaf Hua Li, Futu’s Chairman and Chief Executive Officer, said, “We started 2025 on a strong note, adding approximately 262 thousand funded accounts in the first quarter, up 47.8% year-over-year and 21.9% quarter-over-quarter. Total funded accounts reached 2.7 million, representing a 41.6% increase year-over-year and a 10.9% increase quarter-over-quarter. Hong Kong remained the top contributor to new funded accounts, as our marketing initiatives effectively leveraged the Hong Kong market rally and IPO boom. We believe that brokers with leading brand equity, product experience and execution capabilities will gain outsized benefits from strong equity market performance. Malaysia posted the fastest sequential growth in new funded accounts among all seven markets. After a year of rapid market share gain in Malaysia, we think there is ample headroom for further growth and will continue to invest in our product and our brand. In Japan, new funded accounts enjoyed robust growth and reached a historic high, as we solidified our position as the go-to broker for U.S. stock trading. Funded account growth accelerated in the U.S. as we enhanced our offerings for active traders and our high-profile advertising campaigns boosted brand visibility. With one-third of our full-year target already achieved, we remain firmly on track to meet our guidance of 800 thousand net new funded accounts in 2025.”

“Total client assets reached HK$829.8 billion, up 60.2% year-over-year and 11.6% quarter-over-quarter, thanks to record net asset inflow. In Singapore, total client assets rose 11.4% quarter-over-quarter, sustaining its streak of double-digit sequential growth. Average client assets in Canada and Australia also logged five straight quarters of sequential increase. Margin financing and securities lending balance at quarter end remained largely stable at HK$50.3 billion, due to lower risk appetite in the second half of the quarter amid market pullback.”

“Total trading volume was HK$3.22 trillion, up 140.1% year-over-year and 11.4% quarter-over-quarter. U.S. stock trading volume grew 8.2% sequentially to HK$2.25 trillion, bolstered by clients’ bottom fishing of technology and semiconductor names. Hong Kong stock trading volume increased 21.4% quarter-over-quarter to HK$916.0 billion, as DeepSeek-induced market rally reignited investor interest.”

“We continued to drive product innovation, empowering retail investors with cutting-edge investment tools and seamless investment experience. In Hong Kong, we unveiled Futubull AI, our proprietarily trained, AI-powered investment assistance, and revealed a new desktop version with more intuitive tools and advanced features. In Japan, we continued to enhance our U.S. stock offerings as we rolled out U.S. fractional shares trading in the first quarter and subsequently launched U.S. options trading in April.”

“Wealth management client assets were HK$139.2 billion as of quarter end, up 117.7% year-over-year and 25.6% quarter-over-quarter. 29% of funded accounts held wealth management products, a further climb from 28% in the previous quarter. Money market funds remained the primary driver of asset inflow given the seek for stable returns amid market volatility. In Hong Kong and Singapore, we broadened our structured product suite with FX-linked notes in the first quarter. We also onboarded equity funds in Malaysia and money market funds in Japan.”

“We had 498 IPO distribution and IR clients as of quarter end, up 15.8% year-over-year. During the quarter, we served as joint lead manager for several high-profile Hong Kong IPOs, including those of Bloks Group and Guming Holdings. For both of these transactions, we were the exclusive online broker for IPO distribution. Notably, in the MIXUE Group IPO, more than 70 thousand clients contributed to over HK$1 trillion in subscription amount, putting us first among all brokers in number of subscribers and total subscription amount.”

First Quarter 2025 Financial Results

Revenues

Total revenues were HK$4,694.6 million (US$603.4 million), an increase of 81.1% from HK$2,592.5 million in the first quarter of 2024.

Brokerage commission and handling charge income was HK$2,310.2 million (US$296.9 million), an increase of 113.5% from the first quarter of 2024. This was mainly due to higher trading volume, partially offset by the decline in blended commission rate.

Interest income was HK$2,070.5 million (US$266.1 million), an increase of 52.9% from the first quarter of 2024. The increase was mainly driven by higher interest income from securities borrowing and lending business, margin financing and bank deposits.

Other income was HK$313.9 million (US$40.4 million), an increase of 101.0% from the first quarter of 2024. The increase was primarily attributable to higher fund distribution service income and currency exchange income.

Costs

Total costs were HK$749.0 million (US$96.3 million), an increase of 59.3% from HK$470.2 million in the first quarter of 2024.

Brokerage commission and handling charge expenses were HK$143.5 million (US$18.4 million), an increase of 138.0% from the first quarter of 2024. This increase was roughly in line with the growth of our brokerage commission and handling charge income.

Interest expenses were HK$469.3 million (US$60.3 million), an increase of 50.0% from the first quarter of 2024. The increase was primarily due to higher expenses associated with our securities borrowing and lending business and higher margin financing interest expenses.

Processing and servicing costs were HK$136.1 million (US$17.5 million), an increase of 40.2% from the first quarter of 2024. The increase was primarily due to higher market information and data fee for enhanced market data coverage.

Gross Profit

Total gross profit was HK$3,945.7 million (US$507.2 million), an increase of 85.9% from HK$2,122.2 million in the first quarter of 2024. Gross margin was 84.0%, as compared to 81.9% in the first quarter of 2024.

Operating Expenses

Total operating expenses were HK$1,260.4 million (US$162.0 million), an increase of 35.6% from HK$929.5 million in the first quarter of 2024.

Research and development expenses were HK$386.0 million (US$49.6 million), an increase of 15.1% from the first quarter of 2024. This increase was primarily driven by investment in AI capabilities and related technology initiatives.

Selling and marketing expenses were HK$459.2 million (US$59.0 million), an increase of 56.9% from HK$292.7 million in the first quarter of 2024. This was mainly driven by strong growth of new funded accounts.

General and administrative expenses were HK$415.2 million (US$53.4 million), an increase of 37.8% from the first quarter of 2024. The increase was primarily due to an increase in general and administrative personnel to support overseas market development.

Income from Operations

Income from operations increased by 125.1% to HK$2,685.3 million (US$345.2 million) from HK$1,192.7 million in the first quarter of 2024. Operating margin increased to 57.2% from 46.0% in the first quarter of 2024 mainly due to strong topline growth and operating leverage.

Net Income

Net income increased by 107.0% to HK$2,142.7 million (US$275.4 million) from HK$1,035.1 million in the first quarter of 2024. Net income margin for the first quarter of 2025 increased to 45.6% from 39.9% in the year-ago quarter.

Non-GAAP adjusted net income increased by 97.7% to HK$2,216.9 million (US$285.0 million) from the first quarter of 2024. Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. For further information, see “Use of Non-GAAP Financial Measures” at the bottom of this press release.

Net Income per ADS

Basic net income per American Depositary Share (“ADS”) was HK$15.44 (US$1.98), compared with HK$7.53 in the first quarter of 2024. Diluted net income per ADS was HK$15.28 (US$1.96), compared with HK$7.46 in the first quarter of 2024. Each ADS represents eight Class A ordinary shares.

Conference Call and Webcast

Futu’s management will hold an earnings conference call on Thursday, May 29, 2025, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time).

Please note that all participants will need to pre-register for the conference call, using the link

https://register-conf.media-server.com/register/BIb0180ca92acc4f49b995ccdec654eeb4.

It will automatically lead to the registration page of “Futu Holdings Ltd First Quarter 2025 Earnings Conference Call”, where details for RSVP are needed.

Upon registering, all participants will be provided in confirmation emails with participant dial-in numbers and personal PINs to access the conference call. Please dial in 10 minutes prior to the call start time using the conference access information.

Additionally, a live and archived webcast of this conference call will be available at https://ir.futuholdings.com/.

About Futu Holdings Limited

Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering fully digitalized financial services. Through its proprietary digital platforms, Futubull and moomoo, the Company provides a full range of investment services, including trade execution and clearing, margin financing and securities lending, and wealth management. The Company has embedded social media tools to create a network centered around its users and provide connectivity to users, investors, companies, analysts, media and key opinion leaders. The Company also provides corporate services, including IPO distribution, investor relations and ESOP solution services.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP adjusted net income, a non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines non-GAAP adjusted net income as net income excluding share-based compensation expenses. The Company presents the non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income enables the management to assess the Company’s operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the non-GAAP measure facilitates investors’ assessment of its operating performance.

Non-GAAP adjusted net income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using non-GAAP adjusted net income is that it does not reflect all items of expense that affect the Company’s operations. Share-based compensation expenses have been and may continue to be incurred in the business and is not reflected in the presentation of non-GAAP adjusted net income. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance.

For more information on this non-GAAP financial measure, please see the table captioned “Unaudited Reconciliations of Non-GAAP and GAAP Results” set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain HK dollars (“HK$”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from HK$ to US$ were made at the rate of HK$7.7799 to US$1.00, the noon buying rate in effect on March 31, 2025 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the HK$ or US$ amounts referred could be converted into US$ or HK$, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the quotations from the management team of the Company, contain forward-looking statements. Futu may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Futu’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Futu’s goal and strategies; Futu’s expansion plans; Futu’s future business development, financial condition and results of operations; Futu’s expectations regarding demand for, and market acceptance of, its credit products; Futu’s expectations regarding keeping and strengthening its relationships with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Futu’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Futu does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor inquiries, please contact:

Investor Relations
Futu Holdings Limited
ir@futuholdings.com

___________________________

¹ The number of funded accounts refers to the number of brokerage accounts with Futu that have a positive account balance. Multiple funded accounts by one client are counted as one funded account.
² Multiple brokerage accounts by one client are counted as one brokerage account.
³ The number of users refers to the number of user accounts registered with Futu.
⁴ Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses.

FUTU HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share data)
	As of December 31,	As of March 31,
	2024	2025	2025
	HK$	HK$	US$
ASSETS
Cash and cash equivalents	11,688,383	6,495,155	834,864
Cash held on behalf of clients	68,639,816	88,246,095	11,342,832
Restricted cash	1,121	7,857	1,010
Term deposit	4,990	5,240	674
Short-term investments	2,411,074	2,659,746	341,874
Securities purchased under agreements to resell	316,301	468,788	60,256
Loans and advances-current (net of allowance of HK$85,252 thousand and HK$133,380 thousand as of December 31, 2024 and March 31, 2025, respectively)	49,695,691	48,552,818	6,240,802
Receivables:
Clients	534,077	717,361	92,207
Brokers	17,224,387	17,913,085	2,302,483
Clearing organizations	3,277,063	8,189,215	1,052,612
Fund management companies and fund distributors	1,210,472	1,773,358	227,941
Interest	597,483	624,324	80,248
Amounts due from related parties	61,200	–	–
Prepaid assets	63,497	68,993	8,868
Other current assets	160,330	753,181	96,811
Total current assets	155,885,885	176,475,216	22,683,482

Operating lease right-of-use assets	253,212	390,760	50,227
Long-term investments	573,190	698,183	89,742
Loans and advances-non-current	18,805	18,843	2,422
Other non-current assets	2,025,841	3,055,412	392,730
Total non-current assets	2,871,048	4,163,198	535,121
Total assets	158,756,933	180,638,414	23,218,603

LIABILITIES
Amounts due to related parties	79,090		154,011		19,796
Payables:
Clients	72,379,135		95,452,151		12,269,072
Brokers	43,697,746		38,246,431		4,916,057
Clearing organizations	503,396		357,842		45,996
Fund management companies and fund distributors	507,076		1,509,340		194,005
Interest	86,964		69,180		8,892
Borrowings	5,702,259		9,897,658		1,272,209
Securities sold under agreements to repurchase	2,574,659		929,084		119,421
Lease liabilities-current	144,357		132,750		17,063
Accrued expenses and other current liabilities	4,936,805		3,316,253		426,259
Total current liabilities	130,611,487		150,064,700		19,288,770

Lease liabilities-non-current	132,924		275,538		35,418
Other non-current liabilities	8,061		8,058		1,035
Total non-current liabilities	140,985		283,596		36,453
Total liabilities	130,752,472		150,348,296		19,325,223


SHAREHOLDERS’ EQUITY
Class A ordinary shares	72		72		9
Class B ordinary shares	27		27		3
Additional paid-in capital	18,807,369		18,885,107		2,427,423
Treasury stock	(5,199,257	)	(5,199,257	)	(668,294	)
Accumulated other comprehensive loss	(249,916	)	(184,687	)	(23,739	)
Retained earnings	14,652,946		16,798,269		2,159,188
Total shareholders’ equity	28,011,241		30,299,531		3,894,590


Non-controlling interest	(6,780	)	(9,413	)	(1,210	)
Total equity	28,004,461		30,290,118		3,893,380
Total liabilities and equity	158,756,933		180,638,414		23,218,603

FUTU HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands, except for share and per share data)
	For the Three Months Ended
	March 31, 2024		March 31, 2025		March 31, 2025
	HK$		HK$		US$
Revenues
Brokerage commission and handling charge income	1,082,107		2,310,220		296,947
Interest income	1,354,166		2,070,469		266,131
Other income	156,186		313,948		40,354
Total revenues	2,592,459		4,694,637		603,432
Costs
Brokerage commission and handling charge expenses	(60,301	)	(143,505	)	(18,446	)
Interest expenses	(312,842	)	(469,333	)	(60,326	)
Processing and servicing costs	(97,103	)	(136,115	)	(17,496	)
Total costs	(470,246	)	(748,953	)	(96,268	)
Total gross profit	2,122,213		3,945,684		507,164

Operating expenses
Research and development expenses	(335,487	)	(385,979	)	(49,612	)
Selling and marketing expenses	(292,664	)	(459,202	)	(59,024	)
General and administrative expenses	(301,335	)	(415,245	)	(53,374	)
Total operating expenses	(929,486	)	(1,260,426	)	(162,010	)

Income from operations	1,192,727		2,685,258		345,154

Others, net	31,741		(20,598	)	(2,648	)

Income before income tax expense and share of loss from equity method investments	1,224,468		2,664,660		342,506

Income tax expense	(185,641	)	(490,959	)	(63,106	)
Share of loss from equity method investments	(3,694	)	(30,997	)	(3,984	)

Net income	1,035,133		2,142,704		275,416

Attributable to:
Ordinary shareholders of the Company	1,038,138		2,145,323		275,753
Non-controlling interest	(3,005	)	(2,619	)	(337	)
	1,035,133		2,142,704		275,416

Net income per share attributable to ordinary shareholders of the Company
Basic	0.94		1.93		0.25
Diluted	0.93		1.91		0.24

Net income per ADS
Basic	7.53		15.44		1.98
Diluted	7.46		15.28		1.96

Weighted average number of ordinary shares used in computing net income per share
Basic	1,102,929,775		1,113,426,758		1,113,426,758
Diluted	1,114,429,420		1,126,352,076		1,126,352,076

Net income	1,035,133		2,142,704		275,416
Other comprehensive (loss)/income, net of tax
Foreign currency translation adjustment	(29,441	)	65,215		8,382
Total comprehensive income	1,005,692		2,207,919		283,798

Attributable to:
Ordinary shareholders of the Company	1,008,732		2,210,552		284,136
Non-controlling interests	(3,040	)	(2,633	)	(338	)
	1,005,692		2,207,919		283,798

FUTU HOLDINGS LIMITED UNAUDITED RECONCILIATIONS OF NON-GAAP AND GAAP RESULTS (In thousands)
	For the Three Months Ended
	March 31, 2024	March 31, 2025	March 31, 2025
	HK$	HK$	US$

Net income	1,035,133	2,142,704	275,416
Add: Share-based compensation expenses	85,938	74,199	9,537
Adjusted net income	1,121,071	2,216,903	284,953

Non-GAAP to GAAP reconciling items have no income tax effect.

The MIL Network –

May 29, 2025

MIL-OSI: Aurora Mobile Limited Announces First Quarter 2025 Unaudited Financial Results

Source: GlobeNewswire (MIL-OSI)

SHENZHEN, China, May 29, 2025 (GLOBE NEWSWIRE) — Aurora Mobile Limited (“Aurora Mobile” or the “Company”) (NASDAQ: JG), a leading provider of customer engagement and marketing technology services in China, today announced its unaudited financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights

Revenues were RMB89.0 million (US$12.3 million), an increase of 38% year-over-year.
Cost of revenues was RMB30.1 million (US$4.2 million), an increase of 66% year-over-year.
Gross profit was RMB58.8 million (US$8.1 million), an increase of 27% year-over-year.
Total operating expenses were RMB60.6 million (US$8.3 million), an increase of 14% year-over-year.
Net loss was RMB1.6 million (US$0.2 million), compared with a net loss of RMB2.6 million for the same quarter last year.
Net loss attributable to Aurora Mobile Limited’s shareholders was RMB2.6 million (US$0.4 million), compared with a net loss attributable to Aurora Mobile Limited’s shareholders of RMB2.4 million for the same quarter last year.
Adjusted net loss (non-GAAP) was RMB1.2 million (US$0.2 million), compared with a RMB1.3 million adjusted net loss for the same quarter last year.
Adjusted EBITDA (non-GAAP) was RMB0.5 million (US$63 thousand), compared with RMB0.2 million for the same quarter last year.

Mr. Weidong Luo, Chairman and Chief Executive Officer of Aurora Mobile, commented, “We have had a great start to 2025. Our Q1’2025 performance and numbers are very impressive.

Firstly, our EngageLab business had a “Monster Quarter” where we closed out more than RMB63 million worth of contract value in just one quarter. This brings the total cumulative EngageLab contract value in excess of RMB110 million by March 31, 2025.
Secondly, the Group’s revenue this quarter reached RMB89.0 million, achieving a remarkable 38% growth year-over-year. EngageLab’s recognized revenue also grew by 127% year-over-year.
Thirdly, our Financial Risk Management business had its best quarter in history, recording the highest quarterly revenue of RMB22.2 million, revenue grew by 64% year-over-year.
Fourthly, gross profit grew strongly by 27% year-over-year, achieving the highest gross profit for the past 9 quarters. Gross margin has also improved 520 basis points quarter-over-quarter!
Fifthly, we recorded another Adjusted EBITDA profit in this quarter. This marks the 7th consecutive quarterly positive Adjusted EBITDA we have had.

With these numbers above, we are equally excited about 2025. This has no doubt set a great momentum for the rest of the 2025 ! The progress in our performance and our solid financial position enable us to invest more resources into the development of our enterprise AI agent platform and its global expansion.”

Mr. Shan-Nen Bong, Chief Financial Officer of Aurora Mobile, added, “In Q1’2025, our revenue grew by 38% year-over-year, gross profit grew by 27% whilst operating expenses grew by 14%. Overall, we are pleased to see how the operating expenses have been trending in view of the revenue and gross profit growth. This is a sustainable growth model on a long-term basis.”

First Quarter 2025 Financial Results

Revenues were RMB89.0 million (US$12.3 million), an increase of 38% from RMB64.5 million in the same quarter of last year, attributable to a 39% increase in revenue from Developer Services and a 35% increase in revenue from Vertical Applications. In particular, the revenues from Value-Added Services within Developer Services increased by 269% compared to the same quarter of last year.

Cost of revenues was RMB30.1 million (US$4.2 million), an increase of 66% from RMB18.2 million in the same quarter of last year. The increase was mainly due to a RMB5.6 million increase in media cost, a RMB1.6 million increase in short messaging cost, and a RMB4.7 million increase in other direct costs related to revenue generation.

Gross profit was RMB58.8 million (US$8.1 million), an increase of 27% from RMB46.4 million in the same quarter of last year.

Total operating expenses were RMB60.6 million (US$8.3 million), an increase of 14% from RMB53.0 million in the same quarter of last year.

Research and development expenses were RMB24.6 million (US$3.4 million), an increase of 8% from RMB22.7 million in the same quarter of last year, mainly due to a RMB0.9 million increase in personnel costs and a RMB0.8 million increase in cloud cost.
Sales and marketing expenses were RMB23.3 million (US$3.2 million), an increase of 34% from RMB17.4 million in the same quarter of last year, mainly due to a RMB5.2 million increase in personnel costs.
General and administrative expenses were RMB12.7 million (US$1.7 million), a decrease of 2% from RMB12.9 million in the same quarter of last year, mainly due to a RMB0.6 million decrease in share-based compensation expenses.

Loss from operations was RMB1.5 million (US$0.2 million), compared with RMB5.1 million in the same quarter of last year.

Net Loss was RMB1.6 million (US$0.2 million), compared with RMB2.6 million in the same quarter of last year.

Adjusted net loss (non-GAAP) was RMB1.2 million (US$0.2 million), compared with RMB1.3 million in the same quarter of last year.

Adjusted EBITDA (non-GAAP) was RMB0.5 million (US$63 thousand) compared with RMB0.2 million for the same quarter of last year.

The cash and cash equivalents and restricted cash were RMB113.6 million (US$15.7 million) as of March 31, 2025 compared with RMB119.5 million as of December 31, 2024.

Business Outlook

For the second quarter of 2025, the Company expects the total revenue to be between RMB87.5 million and RMB90.5 million, representing year-over-year growth of approximately 10% to 14%.

The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Update on Share Repurchase

As of March 31, 2025, the Company had repurchased a total of 295,179 ADS, of which 16,322 ADSs, or around US$170.5 thousand were repurchased during the first quarter in 2025.

Conference Call

The Company will host an earnings conference call on Thursday, May 29, 2025 at 7:30 a.m. U.S. Eastern Time (7:30 p.m. Beijing time on the same day).

All participants must register in advance to join the conference using the link provided below. Please dial in 15 minutes before the call is scheduled to begin. Conference access information will be provided upon registration.

Participant Online Registration:
https://register-conf.media-server.com/register/BI47c63565ef284b3784a50da74dc4a38e

A live and archived webcast of the conference call will be available on the Investor Relations section of Aurora Mobile’s website at https://ir.jiguang.cn/.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses two non-GAAP measures, adjusted net (loss)/income and adjusted EBITDA, as a supplemental measure to review and assess its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net (loss)/income as net loss excluding share-based compensation. The Company defines adjusted EBITDA as net loss excluding interest expense, depreciation of property and equipment, amortization of intangible assets, income tax expenses/(benefits) and share-based compensation.

The Company believes that adjusted net (loss)/income and adjusted EBITDA help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that it includes in loss from operations and net loss.

The Company believes that adjusted net (loss)/income and adjusted EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using adjusted net (loss)/income and adjusted EBITDA is that they do not reflect all items of income and expense that affect the Company’s operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of the non-GAAP financial measures to the most comparable U.S. GAAP measure are included at the end of this press release.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as Aurora Mobile’s strategic and operational plans, contain forward-looking statements. Aurora Mobile may also make written or oral forward-looking statements in its reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Aurora Mobile’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Aurora Mobile’s strategies; Aurora Mobile’s future business development, financial condition and results of operations; Aurora Mobile’s ability to attract and retain customers; its ability to develop and effectively market data solutions, and penetrate the existing market for developer services; its ability to transition to the new advertising-driven SAAS business model; its ability to maintain or enhance its brand; the competition with current or future competitors; its ability to continue to gain access to mobile data in the future; the laws and regulations relating to data privacy and protection; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and Aurora Mobile undertakes no duty to update such information, except as required under applicable law.

About Aurora Mobile Limited

Founded in 2011, Aurora Mobile is a leading provider of customer engagement and marketing technology services in China. Since its inception, Aurora Mobile has focused on providing stable and efficient messaging services to enterprises and has grown to be a leading mobile messaging service provider with its first-mover advantage. With the increasing demand for customer reach and marketing growth, Aurora Mobile has developed forward-looking solutions such as Cloud Messaging and Cloud Marketing to help enterprises achieve omnichannel customer reach and interaction, as well as artificial intelligence and big data-driven marketing technology solutions to help enterprises’ digital transformation.

For more information, please visit https://ir.jiguang.cn/.

For investor and media inquiries, please contact:

Aurora Mobile Limited

ir@jiguang.cn

Christensen

In China

Ms. Xiaoyan Su

Phone: +86-10-5900-1548

E-mail: Xiaoyan.Su@christensencomms.com

In U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: linda.bergkamp@christensencomms.com

Footnote:

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.2567 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of March 31, 2025.


AURORA MOBILE LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)

	Three months ended
	March 31, 2024		December 31, 2024		March 31, 2025
	RMB		RMB		RMB		US$

Revenues	64,524		93,153		88,961		12,259
Cost of revenues	(18,152	)	(36,468	)	(30,117	)	(4,150	)
Gross profit	46,372		56,685		58,844		8,109
Operating expenses
Research and development	(22,681	)	(24,326	)	(24,607	)	(3,391	)
Sales and marketing	(17,391	)	(24,583	)	(23,303	)	(3,211	)
General and administrative	(12,932	)	(11,392	)	(12,676	)	(1,747	)
Total operating expenses	(53,004	)	(60,301	)	(60,586	)	(8,349	)
Other operating income	1,579		3,393		197		27
Loss from operations	(5,053	)	(223	)	(1,545	)	(213	)
Foreign exchange (loss)/gain, net	(23	)	(62	)	38		5
Interest income	2,187		288		236		33
Interest expenses	(6	)	(42	)	(39	)	(5	)
Other income/(loss)	15		(805	)	–		–
Gains from fair value change	23		45		38		5
Loss before income taxes	(2,857	)	(799	)	(1,272	)	(175	)
Income tax benefits/(expenses)	244		105		(336	)	(46	)
Net loss	(2,613	)	(694	)	(1,608	)	(221	)
Less: net (loss)/income attributable to noncontrolling interests	(214	)	372		944		130
Net loss attributable to Aurora Mobile Limited’s shareholders	(2,399	)	(1,066	)	(2,552	)	(351	)
Net loss per share, for Class A and Class B common shares:
Class A and B Common Shares – basic and diluted	(0.03	)	(0.01	)	(0.03	)	(0.00	)
Shares used in net loss per share computation:
Class A Common Shares – basic and diluted	62,687,345		63,200,100		63,254,710		63,254,710
Class B Common Shares – basic and diluted	17,000,189		17,000,189		17,000,189		17,000,189
Other comprehensive income/(loss)
Foreign currency translation adjustments	78		1,357		(82	)	(11	)
Total other comprehensive income/(loss), net of tax	78		1,357		(82	)	(11	)
Total comprehensive (loss)/income	(2,535	)	663		(1,690	)	(232	)
Less: comprehensive (loss)/income attributable to noncontrolling interests	(214	)	372		944		130
Comprehensive (loss)/income attributable to Aurora Mobile Limited’s shareholders	(2,321	)	291		(2,634	)	(362	)

AURORA MOBILE LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

	As of
	December 31, 2024		March 31, 2025
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents	119,171		113,267		15,609
Restricted cash	376		375		52
Accounts receivable	50,804		54,071		7,451
Prepayments and other current assets	14,264		17,354		2,391
Total current assets	184,615		185,067		25,503
Non-current assets:
Long-term investments	113,506		113,458		15,635
Property and equipment, net	4,573		4,331		597
Operating lease right-of-use assets	17,146		15,892		2,190
Intangible assets, net	13,767		12,788		1,762
Goodwill	37,785		37,785		5,207
Deferred tax assets	131		167		23
Other non-current assets	6,510		6,503		895
Total non-current assets	193,418		190,924		26,309
Total assets	378,033		375,991		51,812
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term loan	3,000		–		–
Accounts payable	32,691		34,114		4,701
Deferred revenue and customer deposits	147,111		156,929		21,625
Operating lease liabilities	4,461		4,152		572
Accrued liabilities and other current liabilities	74,370		66,407		9,151
Total current liabilities	261,633		261,602		36,049
Non-current liabilities:
Operating lease liabilities	13,376		12,292		1,694
Deferred tax liabilities	3,059		2,891		398
Other non-current liabilities	567		567		78
Total non-current liabilities	17,002		15,750		2,170
Total liabilities	278,635		277,352		38,219
Shareholders’ equity:
Common shares	50		51		7
Treasury shares	(1,674	)	(2,898	)	(399	)
Additional paid-in capital	1,045,221		1,047,375		144,332
Accumulated deficit	(995,715	)	(998,267	)	(137,565	)
Accumulated other comprehensive income	20,040		19,958		2,750
Total Aurora Mobile Limited’s shareholders’ equity	67,922		66,219		9,125
Noncontrolling interests	31,476		32,420		4,468
Total shareholders’ equity	99,398		98,639		13,593
Total liabilities and shareholders’ equity	378,033		375,991		51,812

AURORA MOBILE LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

	Three months ended
	March 31, 2024		December 31, 2024		March 31, 2025
	RMB		RMB		RMB		US$
Reconciliation of Net Loss to Adjusted Net (Loss)/Income:
Net loss	(2,613	)	(694	)	(1,608	)	(221	)
Add:
Share-based compensation	1,268		795		407		56
Adjusted net (loss)/income	(1,345	)	101		(1,201	)	(165	)
Reconciliation of Net Loss to Adjusted EBITDA:
Net loss	(2,613	)	(694	)	(1,608	)	(221	)
Add:
Income tax (benefits)/expenses	(244	)	(105	)	336		46
Interest expenses	6		42		39		5
Depreciation of property and equipment	380		197		266		37
Amortization of intangible assets	1,369		1,052		1,019		140
EBITDA	(1,102	)	492		52		7
Add:
Share-based compensation	1,268		795		407		56
Adjusted EBITDA	166		1,287		459		63

AURORA MOBILE LIMITED

UNAUDITED SAAS BUSINESSES REVENUE

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

Three months ended

March 31, 2024

December 31, 2024

March 31, 2025

RMB

US$

Developer Services

44,749

70,998

62,322

8,588

Subscription

42,351

54,687

53,467

7,368

Value-Added Services

2,398

16,311

8,855

1,220

Vertical Applications

19,775

22,155

26,639

3,671

Total Revenue

64,524

93,153

88,961

12,259

Gross Profits

46,372

56,685

58,844

8,109

Gross Margin

71.9%

60.9%

66.1%

The MIL Network –

May 29, 2025

MIL-OSI: HP Inc. Reports Fiscal 2025 Second Quarter Results

Source: GlobeNewswire (MIL-OSI)

PALO ALTO, Calif., May 28, 2025 (GLOBE NEWSWIRE) — HP (NYSE: HPQ)

Second quarter GAAP diluted net earnings per share (“EPS”) of $0.42, down 31% from the prior year period
Second quarter non-GAAP diluted net EPS of $0.71, down 13% from the prior year period
Second quarter net revenue of $13.2 billion, up 3.3% from the prior-year period
Second quarter net cash provided by operating activities of $38 million, free cash flow of $(95) million
Second quarter returned $0.4 billion to shareholders in the form of dividend and share repurchases

*HP Inc.’s fiscal 2025 second quarter financial performance*
	Q2 FY25			Q2 FY24			Y/Y
GAAP net revenue ($B)	$	13.2		$	12.8		3.3	%
GAAP operating margin		4.9	%		7.4	%	(2.5	)pts
GAAP net earnings ($B)	$	0.4		$	0.6		(33	)%
GAAP diluted net EPS	$	0.42		$	0.61		(31	)%
Non-GAAP operating margin		7.3	%		8.8	%	(1.5	)pts
Non-GAAP net earnings ($B)	$	0.7		$	0.8		(17	)%
Non-GAAP diluted net EPS	$	0.71		$	0.82		(13	)%
Net cash provided by operating activities ($B)	$	0.0		$	0.6		(94	)%
Free cash flow ($B)	$	(0.1	)	$	0.5		(120	)%

^{Notes to table}
^{Information about HP Inc.’s use of non-GAAP financial information is provided under “Use of non-GAAP financial information” below.}

Net revenue and EPS results
HP Inc. and its subsidiaries (“HP”) announced fiscal 2025 second quarter net revenue of $13.2 billion, up 3.3% (up 4.5% in constant currency) from the prior-year period.

“In Q2, we delivered solid revenue growth, led by strong Commercial performance in Personal Systems and continued momentum behind our future of work strategy,” said Enrique Lores, President and CEO, HP Inc. “While results in the quarter were impacted by a dynamic regulatory environment, we responded quickly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure. These decisive actions strengthen our foundation and position us to deliver long-term sustainable growth.”

“In light of the increased macroeconomic uncertainty, we have adjusted our outlook to reflect moderated demand and the net impact of trade-related costs,” said Karen Parkhill, CFO, HP Inc. “We are executing targeted mitigation strategies, and assuming current conditions remain, we expect to fully offset these costs by Q4.”

Second quarter GAAP diluted net EPS was $0.42, down from $0.61 in the prior-year period and below the previously provided outlook of $0.62 to $0.72. Second quarter non-GAAP diluted net EPS was $0.71, down from $0.82 in the prior-year period and below the previously provided outlook of $0.75 to $0.85. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS excludes after-tax adjustments of $272 million, or $0.29 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation charges, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.

Asset management
HP’s net cash provided by operating activities in the second quarter of fiscal 2025 was $38 million. Accounts receivable ended the quarter at $4.3 billion, up 2 days quarter over quarter to 30 days. Inventory ended the quarter at $8.2 billion, down 2 days quarter over quarter to 70 days. Accounts payable ended the quarter at $15.2 billion, down 9 days quarter over quarter to 130 days.

HP generated $(95) million of free cash flow in the second quarter. Free cash flow includes net cash provided by operating activities of $38 million adjusted for net investments in leases from integrated financing of $50 million and net investments in property, plant, equipment and purchased intangible of $183 million.

HP’s dividend payment of $0.2894 per share in the second quarter resulted in cash usage of $273 million. HP also utilized $100 million of cash during the quarter to repurchase approximately 3.0 million shares of common stock in the open market. HP exited the quarter with $2.7 billion in gross cash, which includes cash and cash equivalents of $2.7 billion, restricted cash of $33 million and short-term investments of $3 million included in other current assets. Restricted cash is related to amounts collected and held on behalf of a third party for trade receivables previously sold.

Fiscal 2025 second quarter segment results

Personal Systems net revenue was $9.0 billion, up 7% year over year (up 8% in constant currency) with a 4.5% operating margin. Consumer PS net revenue was up 2% and Commercial PS net revenue was up 9%. Total units were up 6% with Consumer PS units down 2% and Commercial PS units up 11%.
Printing net revenue was $4.2 billion, down 4% year over year (down 3% in constant currency) with a 19.5% operating margin. Consumer Printing net revenue was down 3% and Commercial Printing net revenue was down 3%. Supplies net revenue was down 5% (down 3% in constant currency). Total hardware units were up 1%, with Consumer Printing units up 3% and Commercial Printing units down 2%.

Outlook
For the fiscal 2025 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.57 to $0.69 and non-GAAP diluted net EPS to be in the range of $0.68 to $0.80. Fiscal 2025 third quarter non-GAAP diluted net EPS estimates exclude $0.11 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation impacts, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.

For fiscal 2025, HP estimates GAAP diluted net EPS to be in the range of $2.32 to $2.62 and non-GAAP diluted net EPS to be in the range of $3.00 to $3.30. Fiscal 2025 non-GAAP diluted net EPS estimates exclude $0.68 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation impacts, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items. For fiscal 2025, HP anticipates generating free cash flow in the range of $2.6 to $3.0 billion. HP’s outlook reflects the added cost driven by the current U.S. tariffs in place, and associated mitigations.

More information on HP’s earnings, including additional financial analysis and an earnings overview presentation, is available on HP’s Investor Relations website at investor.hp.com.

HP’s FY25 Q2 earnings conference call is accessible via audio webcast at www.hp.com/investor/2025Q2Webcast.

About HP Inc.
HP Inc. (NYSE: HPQ) is a global technology leader and creator of solutions that enable people to bring their ideas to life and connect to the things that matter most. Operating in more than 170 countries, HP delivers a wide range of innovative and sustainable devices, services and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming, and more. For more information, please visit http://www.hp.com.

Use of non-GAAP financial information
To supplement HP’s consolidated condensed financial statements presented on a generally accepted accounting principles (“GAAP”) basis, HP provides net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt) financial measures. HP also provides forecasts of non-GAAP diluted net EPS and free cash flow. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below or elsewhere in the materials accompanying this news release. In addition, an explanation of the ways in which HP’s management uses these non-GAAP measures to evaluate its business, the substance behind HP’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP’s management compensates for those limitations, and the substantive reasons why HP’s management believes that these non-GAAP measures provide useful information to investors is included under “Use of non-GAAP financial measures” after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for net revenue, operating expense, operating profit, operating margin, other income and expenses, tax rate, net earnings, diluted net EPS, cash provided by operating activities or cash, cash equivalents, and restricted cash prepared in accordance with GAAP.

Forward-looking statements
This document contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operations of HP Inc. and its consolidated subsidiaries which may differ materially from those expressed or implied by such forward-looking statements and assumptions.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges, planned structural cost reductions and productivity initiatives; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our business model and transformation, our sustainability goals, our go-to-market strategy, the execution of restructuring plans and any resulting cost savings (including the fiscal 2023 plan), net revenue or profitability improvements or other financial impacts; any statements concerning the expected development, demand, performance, market share or competitive performance relating to products or services; any statements concerning potential supply constraints, component shortages, manufacturing disruptions or logistics challenges; any statements regarding current or future macroeconomic trends or events, including global trade policies, and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims, disputes or other litigation matters; any statements of expectation or belief as to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of assumptions underlying any of the foregoing. Forward-looking statements can also generally be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” and similar terms.

Risks, uncertainties and assumptions that could affect our business and results of operations include factors relating to HP’s ability to execute on its strategic plans, including the previously announced initiatives, business model changes and transformation; the development and transition of new products and services and the enhancement of existing products and services to meet evolving customer needs and respond to emerging technological trends, including artificial intelligence; the use of artificial intelligence; the impact of macroeconomic and geopolitical trends, changes and events, including global trade policies, the ongoing military conflict in Ukraine, continued instability in the Middle East or tensions in the Taiwan Strait and South China Sea and the regional and global ramifications of these events; volatility in global capital markets and foreign currency, increases in benchmark interest rates, the effects of inflation and instability of financial institutions; risks associated with HP’s international operations and the effects of business disruption events, including those resulting from climate change; the need to manage (and reliance on) third-party suppliers, including with respect to supply constraints and component shortages, and the need to manage HP’s global, multi-tier distribution network and potential misuse of pricing programs by HP’s channel partners, adapt to new or changing marketplaces and effectively deliver HP’s services; the execution and performance of contracts by HP and its suppliers, customers, clients and partners, including logistical challenges with respect to such execution and performance; the competitive pressures faced by HP’s businesses; the impact of third-party claims of IP infringement; successfully innovating, developing and executing HP’s go-to-market strategy, including online, omnichannel and contractual sales, in an evolving distribution, reseller and customer landscape; successfully competing and maintaining the value proposition of HP’s products, including supplies and services; challenges to HP’s ability to accurately forecast inventories, demand and pricing, which may be due to HP’s multi-tiered channel, sales of HP’s products to unauthorized resellers or unauthorized resale of HP’s products or our uneven sales cycle; the hiring and retention of key employees; the results of our restructuring plans (including the fiscal 2023 plan), including estimates and assumptions related to the cost (including any possible disruption of HP’s business) and the anticipated benefits of our restructuring plans; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; disruptions in operations from system security risks, data protection breaches, or cyberattacks; HP’s ability to maintain its credit rating, satisfy its debt obligations and complete any contemplated share repurchases, other capital return programs or other strategic transactions; changes in estimates and assumptions HP makes in connection with the preparation of its financial statements; the impact of changes to federal, state, local and foreign laws and regulations, including environmental regulations and tax laws; integration and other risks associated with business combination and investment transactions; our aspirations related to environmental, social and governance matters; potential impacts, liabilities and costs from pending or potential investigations, claims and disputes; the effectiveness of our internal control over financial reporting; and other risks that are described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and HP’s other filings with the Securities and Exchange Commission (“SEC”). HP’s fiscal 2023 plan includes HP’s efforts to take advantage of future growth opportunities, including but not limited to, investments to drive growth, investments in our people, improving product mix, driving structural cost savings and other productivity measures. Structural cost savings represent gross reductions in costs driven by operational efficiency, digital transformation, and portfolio optimization. These initiatives include but are not limited to workforce reductions, platform simplification, programs consolidation and productivity measures undertaken by HP, which HP expects to be sustainable in the longer-term. These structural cost savings are net of any new recurring costs resulting from these initiatives and exclude one-time investments to generate such savings. HP’s expectations on the longer-term sustainability of such structural cost savings are based on its current business operations and market dynamics and could be significantly impacted by various factors, including but not limited to HP’s evolving business models, future investment decisions, market environment and technology landscape.

As in prior periods, the financial information set forth in this document, including any tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from reported amounts in HP’s Annual Report on Form 10-K for the fiscal year ending October 31, 2025, Quarterly Report on Form 10-Q for the fiscal quarter ending July 31, 2025, and HP’s other filings with the SEC. The forward-looking statements in this document are made as of the date of this document and HP assumes no obligation and does not intend to update these forward-looking statements.

HP’s Investor Relations website at investor.hp.com contains a significant amount of information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated, and new information is posted. The content of HP’s website is not incorporated by reference into this document or in any other report or document HP files with the SEC, and any references to HP’s website are intended to be inactive textual references only.


HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts)

	Three months ended
	April 30, 2025			January 31, 2025			April 30, 2024
Net revenue:
Products	$	12,423		$	12,695		$	12,043
Services		797			809			757
Total net revenue		13,220			13,504			12,800
Cost of net revenue:
Products		10,007			10,194			9,324
Services		474			470			453
Total cost of net revenue		10,481			10,664			9,777
Gross profit		2,739			2,840			3,023
Research and development		401			397			436
Selling, general and administrative		1,480			1,459			1,462
Restructuring and other charges		122			70			71
Acquisition and divestiture charges		17			6			22
Amortization of intangible assets		65			63			80
Total operating expenses		2,085			1,995			2,071
Earnings from operations		654			845			952
Interest and other, net		(148	)		(141	)		(155	)
Earnings before taxes		506			704			797
Provision for taxes		(100	)		(139	)		(190	)
Net earnings	$	406		$	565		$	607

Net earnings per share:
Basic	$	0.43		$	0.60		$	0.62
Diluted	$	0.42		$	0.59		$	0.61

Cash dividends declared per share	$	—		$	0.58		$	—

Weighted-average shares used to compute net earnings per share:
Basic		950			948			984
Diluted		956			957			990

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts)

	Six months ended
	April 30, 2025			April 30, 2024
Net revenue:
Products	$	25,118		$	24,462
Services		1,606			1,523
Total net revenue		26,724			25,985
Cost of net revenue:
Products		20,201			19,195
Services		944			879
Total cost of net revenue		21,145			20,074
Gross profit		5,579			5,911
Research and development		798			835
Selling, general and administrative		2,939			2,845
Restructuring and other charges		192			134
Acquisition and divestiture charges		23			49
Amortization of intangible assets		128			161
Total operating expenses		4,080			4,024
Earnings from operations		1,499			1,887
Interest and other, net		(289	)		(297	)
Earnings before taxes		1,210			1,590
Provision for taxes		(239	)		(361	)
Net earnings	$	971		$	1,229

Net earnings per share:
Basic	$	1.02		$	1.24
Diluted	$	1.02		$	1.23

Cash dividends declared per share	$	0.58		$	0.55

Weighted-average shares used to compute net earnings per share:
Basic		949			990
Diluted		956			996

HP INC. AND SUBSIDIARIES ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS, OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)

	Three months ended
	April 30, 2025						January 31, 2025						April 30, 2024
	Amounts			Diluted net earnings per share			Amounts			Diluted net earnings per share			Amounts			Diluted net earnings per share
GAAP net earnings	$	406		$	0.42		$	565		$	0.59		$	607		$	0.61
Non-GAAP adjustments:
Restructuring and other charges		122			0.13			70			0.07			71			0.07
Acquisition and divestiture charges		17			0.01			6			0.01			22			0.02
Amortization of intangible assets		65			0.07			63			0.07			80			0.08
Certain litigation charges^(a)		103			0.11			—			—			—			—
Non-operating retirement-related credits		(6	)		(0.01	)		(5	)		(0.01	)		(3	)		—
Tax adjustments^(b)		(29	)		(0.02	)		5			0.01			35			0.04
Non-GAAP net earnings	$	678		$	0.71		$	704		$	0.74		$	812		$	0.82

GAAP earnings from operations	$	654					$	845					$	952
Non-GAAP adjustments:
Restructuring and other charges		122						70						71
Acquisition and divestiture charges		17						6						22
Amortization of intangible assets		65						63						80
Certain litigation charges^(a)		103						—						—
Non-GAAP earnings from operations	$	961					$	984					$	1,125

GAAP operating margin		4.9	%					6.3	%					7.4	%
Non-GAAP adjustments		2.4	%					1.0	%					1.4	%
Non-GAAP operating margin		7.3	%					7.3	%					8.8	%

^{(a) HP incurs settlement expenses from backward-looking claims that arise from certain existing or threatened Standard Essential Patent (“SEP”) litigation that are distinctive and substantial when compared to other intellectual property litigation that HP incurs in the ordinary course of business. HP excludes these SEP litigation expenses for purposes of calculating these non-GAAP measures. For the third and fourth quarters of fiscal year 2024, the SEP litigation expenses were $18 million and $40 million, respectively. Consequently, the revised non-GAAP diluted net earnings per share for the third and fourth quarters of fiscal year 2024 are $0.84 and $0.96, respectively.}
^{(b) Includes tax impact on non-GAAP adjustments.}

HP INC. AND SUBSIDIARIES ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS, OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)

	Six months ended
	April 30, 2025						April 30, 2024
	Amounts			Diluted net earnings per share			Amounts			Diluted net earnings per share
GAAP net earnings	$	971		$	1.02		$	1,229		$	1.23
Non-GAAP adjustments:
Restructuring and other charges		192			0.20			134			0.14
Acquisition and divestiture charges		23			0.03			49			0.05
Amortization of intangible assets		128			0.13			161			0.16
Certain litigation charges^(a)		103			0.11			—			—
Non-operating retirement-related credits		(11	)		(0.01	)		(5	)		(0.01	)
Tax adjustments^(b)		(24	)		(0.03	)		52			0.06
Non-GAAP net earnings	$	1,382		$	1.45		$	1,620		$	1.63

GAAP earnings from operations	$	1,499					$	1,887
Non-GAAP adjustments:
Restructuring and other charges		192						134
Acquisition and divestiture charges		23						49
Amortization of intangible assets		128						161
Certain litigation charges^(a)		103						—
Non-GAAP earnings from operations	$	1,945					$	2,231

GAAP operating margin		5.6	%					7.3	%
Non-GAAP adjustments		1.7	%					1.3	%
Non-GAAP operating margin		7.3	%					8.6	%

^{(a) HP incurs settlement expenses from backward-looking claims that arise from certain existing or threatened SEP litigation that are distinctive and substantial when compared to other intellectual property litigation that HP incurs in the ordinary course of business. HP excludes these SEP litigation expenses for purposes of calculating these non-GAAP measures. For the nine months ended fiscal year 2024 and fiscal year 2024, the SEP litigation expenses were $18 million and $58 million, respectively. Consequently, the revised non-GAAP diluted net earnings per share for the nine months ended fiscal year 2024 and fiscal year 2024 are $2.47 and $3.43, respectively.}
^{(b) Includes tax impact on non-GAAP adjustments.}

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (In millions)

	As of
	April 30, 2025			October 31, 2024
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	2,730		$	3,253
Accounts receivable, net		4,336			5,117
Inventory		8,175			7,720
Other current assets		4,217			4,670
Total current assets		19,458			20,760
Property, plant and equipment, net		2,951			2,914
Goodwill		8,713			8,627
Other non-current assets		7,677			7,608
Total assets	$	38,799		$	39,909

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Notes payable and short-term borrowings	$	1,446		$	1,406
Accounts payable		15,195			16,903
Other current liabilities		9,915			10,378
Total current liabilities		26,556			28,687
Long-term debt		9,291			8,263
Other non-current liabilities		4,228			4,282
Stockholders’ deficit		(1,276	)		(1,323	)
Total liabilities and stockholders’ deficit	$	38,799		$	39,909

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)

	Three months ended
	April 30, 2025			April 30, 2024
Cash flows from operating activities:
Net earnings	$	406		$	607
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		205			209
Stock-based compensation expense		140			94
Restructuring and other charges		122			71
Deferred taxes on earnings		(60	)		5
Other, net		37			7
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(115	)		(552	)
Inventory		279			(631	)
Accounts payable		(1,302	)		1,104
Net investment in leases from integrated financing		(50	)		(19	)
Taxes on earnings		(133	)		(177	)
Restructuring and other		(75	)		(57	)
Other assets and liabilities		584			(80	)
Net cash provided by operating activities		38			581
Cash flows from investing activities:
Investment in property, plant, equipment and purchased intangible		(183	)		(119	)
Purchases of available-for-sale securities and other investments		(3	)		—
Maturities and sales of available-for-sale securities and other investments		9			—
Collateral (posted) returned for derivative instruments		(540	)		70
Payment made in connection with business acquisitions, net of cash acquired		(116	)		—
Net cash used in investing activities		(833	)		(49	)
Cash flows from financing activities:
Proceeds from short-term borrowings with original maturities less than 90 days, net		—			(100	)
Proceeds from debt, net of issuance costs		1,076			94
Payment of debt		(52	)		(53	)
Stock-based award activities and others		(26	)		(4	)
Repurchase of common stock		(100	)		(100	)
Cash dividends paid		(273	)		(269	)
Settlement of cash flow hedges		6			—
Net cash provided by (used in) financing activities		631			(432	)
(Decrease) increase in cash, cash equivalents and restricted cash		(164	)		100
Cash, cash equivalents and restricted cash at beginning of period		2,894			2,417
Cash, cash equivalents and restricted cash at end of period	$	2,730		$	2,517

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)

	Six months ended
	April 30, 2025			April 30, 2024
Cash flows from operating activities:
Net earnings	$	971		$	1,229
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		402			414
Stock-based compensation expense		332			271
Restructuring and other charges		192			134
Deferred taxes on earnings		(83	)		—
Other, net		72			(13	)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		851			(106	)
Inventory		(472	)		(678	)
Accounts payable		(1,699	)		360
Net investment in leases from integrated financing		(48	)		(81	)
Taxes on earnings		(121	)		(128	)
Restructuring and other		(149	)		(144	)
Other assets and liabilities		164			(556	)
Net cash provided by operating activities		412			702
Cash flows from investing activities:
Investment in property, plant, equipment and purchased intangible		(485	)		(277	)
Purchases of available-for-sale securities and other investments		(6	)		—
Maturities and sales of available-for-sale securities and other investments		14			—
Collateral posted for derivative instruments		(540	)		—
Payment made in connection with business acquisitions, net of cash acquired		(116	)		—
Net cash used in investing activities		(1,133	)		(277	)
Cash flows from financing activities:
Proceeds from debt, net of issuance costs		1,158			186
Payment of debt		(102	)		(102	)
Stock-based award activities and others		(118	)		(80	)
Repurchase of common stock		(200	)		(600	)
Cash dividends paid		(546	)		(544	)
Settlement of cash flow hedges		6			—
Net cash provided by (used in) financing activities		198			(1,140	)
Decrease in cash, cash equivalents and restricted cash		(523	)		(715	)
Cash, cash equivalents and restricted cash at beginning of period		3,253			3,232
Cash, cash equivalents and restricted cash at end of period	$	2,730		$	2,517

HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions)

	Three months ended									Change (%)
	April 30, 2025			January 31, 2025			April 30, 2024			Q/Q		Y/Y
Net revenue:
Commercial PS	$	6,786		$	6,645		$	6,242		2	%	9	%
Consumer PS		2,238			2,579			2,184		(13	)%	2	%
Personal Systems		9,024			9,224			8,426		(2	)%	7	%
Supplies		2,725			2,826			2,864		(4	)%	(5	)%
Commercial Printing		1,167			1,144			1,205		2	%	(3	)%
Consumer Printing		289			299			299		(3	)%	(3	)%
Printing		4,181			4,269			4,368		(2	)%	(4	)%
Corporate Investments^(a)		16			11			5		NM		NM
Total segment net revenue		13,221			13,504			12,799		(2	)%	3	%
Other^(a)		(1	)		—			1		NM		NM
Total net revenue	$	13,220		$	13,504		$	12,800		(2	)%	3	%

Earnings before taxes:
Personal Systems^(b)	$	409		$	507		$	508
Printing		814			810			829
Corporate Investments		(37	)		(27	)		(30	)
Total segment earnings from operations		1,186			1,290			1,307
Corporate and unallocated cost and other		(85	)		(114	)		(88	)
Stock-based compensation expense		(140	)		(192	)		(94	)
Restructuring and other charges		(122	)		(70	)		(71	)
Acquisition and divestiture charges		(17	)		(6	)		(22	)
Amortization of intangible assets		(65	)		(63	)		(80	)
Certain litigation charges^(b)		(103	)		—			—
Interest and other, net		(148	)		(141	)		(155	)
Total earnings before taxes	$	506		$	704		$	797

^{(a) “NM” represents not meaningful.}
^{(b) HP has reclassified certain litigation charges arising from SEP litigations from Personal Systems to Corporate.}

HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions)

	Six months ended						Change (%)
	April 30, 2025			April 30, 2024			Y/Y
Net revenue:
Commercial PS	$	13,431		$	12,287		9	%
Consumer PS		4,817			4,948		(3	)%
Personal Systems		18,248			17,235		6	%
Supplies		5,551			5,727		(3	)%
Commercial Printing		2,311			2,432		(5	)%
Consumer Printing		588			584		1	%
Printing		8,450			8,743		(3	)%
Corporate Investments^(a)		27			7		NM
Total segment net revenue		26,725			25,985		3	%
Other^(a)		(1	)		—		NM
Total net revenue	$	26,724		$	25,985		3	%

Earnings before taxes:
Personal Systems^(b)	$	916		$	1,045
Printing		1,624			1,701
Corporate Investments		(64	)		(67	)
Total segment earnings from operations		2,476			2,679
Corporate and unallocated cost and other		(199	)		(177	)
Stock-based compensation expense		(332	)		(271	)
Restructuring and other charges		(192	)		(134	)
Acquisition and divestiture charges		(23	)		(49	)
Amortization of intangible assets		(128	)		(161	)
Certain litigation charges^(b)		(103	)		—
Interest and other, net		(289	)		(297	)
Total earnings before taxes	$	1,210		$	1,590

^{(a) “NM” represents not meaningful.}
^{(b) HP has reclassified certain litigation charges arising from SEP litigations from Personal Systems to Corporate.}

HP INC. AND SUBSIDIARIES SEGMENT OPERATING MARGIN SUMMARY (Unaudited)

	Three months ended						Change (pts)
	April 30, 2025		January 31, 2025		April 30, 2024		Q/Q		Y/Y
Segment operating margin:
Personal Systems^(a)	4.5	%	5.5	%	6.0	%	(1.0	)pts	(1.5	)pts
Printing	19.5	%	19.0	%	19.0	%	0.5	pts	0.5	pts
Corporate Investments^(c)	NM		NM		NM		NM		NM
Total segment	9.0	%	9.6	%	10.2	%	(0.6	)pts	(1.2	)pts

	Six months ended				Change (pts)
	April 30, 2025		April 30, 2024		Y/Y
Segment operating margin:
Personal Systems^(b)	5.0	%	6.1	%	(1.1	)pts
Printing	19.2	%	19.5	%	(0.3	)pts
Corporate Investments^(c)	NM		NM		NM
Total segment	9.3	%	10.3	%	(1.0	)pts

^{(a) HP has reclassified certain litigation charges arising from SEP litigations from Personal Systems to Corporate. For the third and fourth quarters of fiscal year 2024, the SEP litigation expenses were $18 million and $40 million, respectively. Consequently, the revised Segment operating margin for Personal Systems for the third and fourth quarters of fiscal year 2024 are 6.6% and 6.2%, respectively and the revised Total segment operating margin for the third and fourth quarters of fiscal year 2024 are 9.6% and 10.2%, respectively.}
^{(b) HP has reclassified certain litigation charges arising from SEP litigations from Personal Systems to Corporate. For the nine months ended fiscal year 2024 and fiscal year 2024, the SEP litigation expenses were $18 million and $58 million, respectively. Consequently, the revised Segment operating margin for the nine months ended fiscal year 2024 and fiscal year 2024 are 6.2%, respectively and the revised Total segment operating margin for the nine months ended fiscal year 2024 and fiscal year 2024 are 10.1%, respectively.}
^{(c) “NM” represents not meaningful.}

HP INC. AND SUBSIDIARIES CALCULATION OF DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)

	Three months ended
	April 30, 2025		January 31, 2025		April 30, 2024
Numerator:
GAAP net earnings	$	406	$	565	$	607
Non-GAAP net earnings	$	678	$	704	$	812

Denominator:
Weighted-average shares used to compute basic net earnings per share		950		948		984
Dilutive effect of employee stock plans^(a)		6		9		6
Weighted-average shares used to compute diluted net earnings per share		956		957		990

GAAP diluted net earnings per share	$	0.42	$	0.59	$	0.61
Non-GAAP diluted net earnings per share	$	0.71	$	0.74	$	0.82

^{(a) Includes any dilutive effect of restricted stock units, stock options and performance-based awards.}

HP INC. AND SUBSIDIARIES CALCULATION OF DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)
	Six months ended
	April 30, 2025		April 30, 2024
Numerator:
GAAP net earnings	$	971	$	1,229
Non-GAAP net earnings	$	1,382	$	1,620

Denominator:
Weighted-average shares used to compute basic net earnings per share		949		990
Dilutive effect of employee stock plans^(a)		7		6
Weighted-average shares used to compute diluted net earnings per share		956		996

GAAP diluted net earnings per share	$	1.02	$	1.23
Non-GAAP diluted net earnings per share	$	1.45	$	1.63

^{(a) Includes any dilutive effect of restricted stock units, stock options and performance-based awards.}

Use of non-GAAP financial measures

To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt). HP also provides forecasts of non-GAAP diluted net EPS and free cash flow.

These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables above or elsewhere in the materials accompanying this news release.

Use and economic substance of non-GAAP financial measures

Net revenue on a constant currency basis excludes the effect of foreign currency exchange fluctuations calculated by translating current period revenues using monthly exchange rates from the comparative period and excluding any hedging impact recognized in the current period. Non-GAAP operating margin is defined to exclude the effects of any amounts relating to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets and certain litigation charges. Non-GAAP net earnings and non-GAAP diluted net EPS consist of net earnings or diluted net EPS excluding those same charges, non-operating retirement related (credits)/charges, debt extinguishment costs (benefit), tax adjustments and the amount of additional taxes or tax benefits associated with each non-GAAP item.

HP’s management uses these non-GAAP financial measures for purposes of evaluating HP’s historical and prospective financial performance, as well as HP’s performance relative to its competitors. HP’s management also uses these non-GAAP measures to further its own understanding of HP’s segment operating performance. HP believes that excluding the items mentioned above for these non-GAAP financial measures allows HP’s management to better understand HP’s consolidated financial performance in relation to the operating results of HP’s segments, as HP’s management does not believe that the excluded items are reflective of ongoing operating results. More specifically, HP’s management excludes each of those items mentioned above for the following reasons:

Restructuring and other charges are (i) costs associated with a formal restructuring plan and are primarily related to employee separation from service and early retirement costs and related benefits, costs of real estate consolidation and other non-labor charges; and (ii) other charges, which includes non-recurring costs including those as a result of information technology rationalization efforts and transformation program management and are distinct from ongoing operational costs. HP excludes these restructuring and other charges (and any reversals of charges recorded in prior periods) for purposes of calculating these non-GAAP measures because HP believes that these costs do not reflect expected future operating expenses and excluding such expenses for purposes of calculating these non-GAAP measures is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
HP incurs cost related to its acquisitions and divestitures, which it would not have otherwise incurred as part of its operations. The charges are direct expenses such as third-party professional and legal fees, integration and divestiture-related costs, as well as non-cash adjustments to the fair value of certain acquired assets such as inventory and certain compensation charges related to cash settlement of restricted stock units and performance-based restricted stock units towards acquisitions. These charges related to acquisitions and divestitures are inconsistent in amount and frequency and are significantly impacted by the timing and nature of HP’s acquisitions or divestitures. HP believes that eliminating such expenses for purposes of calculating these non-GAAP measures is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
HP incurs charges relating to the amortization of intangible assets. Those charges are included in HP’s GAAP earnings, operating margin, net earnings and diluted net EPS. Such charges are significantly impacted by the timing and magnitude of HP’s acquisitions and any related impairment charges. Consequently, HP excludes these charges for purposes of calculating these non-GAAP measures because HP believes doing so is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
HP incurs settlement expenses from backward-looking claims that arise from certain existing or threatened SEP litigation that are distinctive and substantial when compared to other intellectual property litigation that HP incurs in the ordinary course of business. Consequently, HP excludes these SEP litigation expenses for purposes of calculating these non-GAAP measures because HP believes doing so is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
HP incurs debt extinguishment (benefit)/costs includes certain (gain)/loss related to repurchase of certain of its outstanding U.S. dollar global notes or termination of commitments under revolving credit facilities. These (gain)/loss resulting from debt redemption transactions are partially or more than offset by costs such as bond repurchase premiums, bank fees, unpaid accrued interests, etc. HP excludes these (benefit)/costs for the purposes of calculating these non-GAAP measures because HP believes doing so is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
Non-operating retirement-related (credits)/charges includes certain market-related factors such as interest cost, expected return on plan assets, amortized actuarial gains or losses, associated with HP’s defined benefit pension and post-retirement benefit plans. The market-driven retirement-related adjustments are primarily due to the changes in the value of pension plan assets and liabilities which are tied to financial market performance and HP considers these adjustments to be outside the operational performance of the business. Non-operating retirement-related (credits)/charges also include certain plan curtailments, settlements and special termination benefits related to HP’s defined benefit pension and post-retirement benefit plans. HP believes that eliminating such adjustments for purposes of calculating non-GAAP measures is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
HP recorded tax adjustments including tax expenses and benefits from internal reorganizations, realizability of certain deferred tax assets, various tax rate and regulatory changes, and tax settlements across various jurisdictions. HP excludes these adjustments for the purposes of calculating these non-GAAP measures because HP believes doing so is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.

Free cash flow is a non-GAAP measure that is defined as cash flow provided by (used in) operating activities adjusted for net investment in leases from integrated financing and net investments in property, plant, equipment and purchased intangible. Gross cash is a non-GAAP measure that is defined as cash, cash equivalents and restricted cash plus short-term investments and certain long-term investments that may be liquidated within 90 days pursuant to the terms of existing put options or similar rights. HP’s management uses free cash flow and gross cash for the purpose of determining the amount of cash available for investment in HP’s businesses, repurchasing stock and other purposes. HP’s management also uses free cash flow and gross cash to evaluate HP’s historical and prospective liquidity. Because gross cash includes liquid assets that are not included in cash, cash equivalents and restricted cash, HP believes that gross cash provides a helpful assessment of HP’s liquidity. Because free cash flow includes net cash provided by (used in) operating activities adjusted for net investment in leases from integrated financing and net investments in property, plant, equipment and purchased intangible. HP believes that free cash flow provides a useful assessment of HP’s liquidity and capital resources. Net cash (debt) is defined as gross cash less gross debt after adjusting the effect of unamortized premium/discount on debt issuance, debt issuance costs and gains/losses on interest rate swaps.

Key Growth Areas
Key Growth Areas represent HP’s businesses which management expects to collectively grow at a rate faster than HP’s core business with accretive margins in the longer term. HP’s Key Growth Areas are comprised of:

Hybrid Systems: Video conferencing solutions, cameras, headsets, voice, and related software capabilities

Advanced Compute Solutions: Diverse portfolio encompassing high-performance computing, mobile and desktop workstations, retail workstations, retail solutions, and emerging technologies to address complex computational tasks, data-intensive applications, and evolving industry needs.

AI PC: PCs, excluding Workstations, equipped with dedicated hardware components like Neural Processing Units (NPUs), are designed to facilitate and enhance the execution of AI and machine learning tasks.

Workforce Solutions: Managed services (Managed Print Service and Device-as-a-Service), digital services and lifecycle services

Consumer Subscriptions: Instant Ink services, other consumer subscriptions and consumer digital services

Industrial Graphics: Large Format Industrial, Page Wide Press (PWP), Indigo and Page Wide Industrial packaging solutions and supplies

3D & Personalization: Portfolio of additive manufacturing solutions and supplies including end-to-end solutions such as moulded fiber, footwear and orthotics

Material limitations associated with use of non-GAAP financial measures
These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of HP’s results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are:

Items such as amortization of intangible assets, though not directly affecting HP’s cash position, represent the loss in value of intangible assets over time. The expense associated with this change in value is not included in non-GAAP operating margin, non-GAAP net earnings and non-GAAP diluted net EPS, and therefore does not reflect the full economic effect of the change in value of those intangible assets.
Items such as restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation charges are excluded from non-GAAP operating margin. In addition, non-operating retirement-related (credits)/charges, debt extinguishment costs (benefit) and tax adjustments are excluded from non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings and non-GAAP diluted net EPS. These items can have a material impact on the equivalent GAAP earnings measure and cash flows.
HP may not be able to immediately liquidate the short-term and certain long-term investments included in gross cash, which may limit the usefulness of gross cash as a liquidity measure.

Other companies may calculate the non-GAAP financial measures differently than HP, limiting the usefulness of those measures for comparative purposes.

Compensation for limitations associated with use of non-GAAP financial measures

HP accounts for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only supplementally. HP also provides reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure within this news release and in other written materials that include these non-GAAP financial measures, and HP encourages investors to review those reconciliations carefully.

Usefulness of non-GAAP financial measures to investors

HP believes that providing net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt) to investors in addition to the related GAAP financial measures provides investors with greater insight to the information used by HP’s management in its financial and operational decision making and allows investors to see HP’s results “through the eyes” of management. HP further believes that providing this information better enables HP’s investors to understand HP’s operating performance and financial condition and to evaluate the efficacy of the methodology and information used by HP’s management to evaluate and measure such performance and financial condition. Disclosure of these non-GAAP financial measures also facilitates comparisons of HP’s operating performance with the performance of other companies in HP’s industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.

Editorial contacts

HP Inc. Media Relations
MediaRelations@hp.com

HP Inc. Investor Relations
InvestorRelations@hp.com

The MIL Network –

May 29, 2025

MIL-OSI: NVIDIA Announces Financial Results for First Quarter Fiscal 2026

Source: GlobeNewswire (MIL-OSI)

Revenue of $44.1 billion, up 12% from Q4 and up 69% from a year ago
Data Center revenue of $39.1 billion, up 10% from Q4 and up 73% from a year ago

SANTA CLARA, Calif., May 28, 2025 (GLOBE NEWSWIRE) — NVIDIA (NASDAQ: NVDA) today reported revenue for the first quarter ended April 27, 2025, of $44.1 billion, up 12% from the previous quarter and up 69% from a year ago.

On April 9, 2025, NVIDIA was informed by the U.S. government that a license is required for exports of its H20 products into the China market. As a result of these new requirements, NVIDIA incurred a $4.5 billion charge in the first quarter of fiscal 2026 associated with H20 excess inventory and purchase obligations as the demand for H20 diminished. Sales of H20 products were $4.6 billion for the first quarter of fiscal 2026 prior to the new export licensing requirements. NVIDIA was unable to ship an additional $2.5 billion of H20 revenue in the first quarter.

For the quarter, GAAP and non-GAAP gross margins were 60.5% and 61.0%, respectively. Excluding the $4.5 billion charge, first quarter non-GAAP gross margin would have been 71.3%.

For the quarter, GAAP and non-GAAP earnings per diluted share were $0.76 and $0.81, respectively. Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96.

“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning— is now in full-scale production across system makers and cloud service providers,” said Jensen Huang, founder and CEO of NVIDIA. “Global demand for NVIDIA’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.”

NVIDIA will pay its next quarterly cash dividend of $0.01 per share on July 3, 2025, to all shareholders of record on June 11, 2025.

Q1 Fiscal 2026 Summary

GAAP
($ in millions, except earnings per share)		Q1 FY26		Q4 FY25		Q1 FY25	Q/Q	Y/Y
Revenue	$44,062		$39,331		$26,044		12%	69%
Gross margin		60.5%		73.0%		78.4%	(12.5) pts	(17.9) pts
Operating expenses	$5,030		$4,689		$3,497		7%	44%
Operating income	$21,638		$24,034		$16,909		(10)%	28%
Net income	$18,775		$22,091		$14,881		(15)%	26%
Diluted earnings per share*	$0.76		$0.89		$0.60		(15)%	27%

Non-GAAP
($ in millions, except earnings per share)		Q1 FY26		Q4 FY25		Q1 FY25	Q/Q	Y/Y
Revenue	$44,062		$39,331		$26,044		12%	69%
Gross margin		61.0%		73.5%		78.9%	(12.5) pts	(17.9) pts
Gross margin excluding H20 charge		71.3%
Operating expenses	$3,583		$3,378		$2,501		6%	43%
Operating income	$23,275		$25,516		$18,059		(9)%	29%
Net income	$19,894		$22,066		$15,238		(10)%	31%
Diluted earnings per share*	$0.81		$0.89		$0.61		(9)%	33%
Diluted earnings per share excluding H20 charge and related tax impact	$0.96


*All per share amounts presented herein have been retroactively adjusted to reflect NVIDIA’s ten-for-one stock split, which was effective June 7, 2024.

Outlook
NVIDIA’s outlook for the second quarter of fiscal 2026 is as follows:

Revenue is expected to be $45.0 billion, plus or minus 2%. This outlook reflects a loss in H20 revenue of approximately $8.0 billion due to the recent export control limitations.
GAAP and non-GAAP gross margins are expected to be 71.8% and 72.0%, respectively, plus or minus 50 basis points. The company is continuing to work toward achieving gross margins in the mid-70% range late this year.
GAAP and non-GAAP operating expenses are expected to be approximately $5.7 billion and $4.0 billion, respectively. Full year fiscal 2026 operating expense growth is expected to be in the mid-30% range.
GAAP and non-GAAP other income and expense are expected to be an income of approximately $450 million, excluding gains and losses from non-marketable and publicly-held equity securities.
GAAP and non-GAAP tax rates are expected to be 16.5%, plus or minus 1%, excluding any discrete items.

Highlights
NVIDIA achieved progress since its previous earnings announcement in these areas:

Data Center

First-quarter revenue was $39.1 billion, up 10% from the previous quarter and up 73% from a year ago.
Announced that NVIDIA is building factories in the U.S. and working with its partners to produce NVIDIA AI supercomputers in the U.S.
Introduced NVIDIA Blackwell Ultra and NVIDIA Dynamo for accelerating and scaling AI reasoning models.
Announced partnership with HUMAIN to build AI factories in the Kingdom of Saudi Arabia to drive the next wave of artificial intelligence development.
Unveiled Stargate UAE, a next-generation AI infrastructure cluster in Abu Dhabi, United Arab Emirates, alongside strategic partners G42, OpenAI, Oracle, SoftBank Group and Cisco.
Revealed plans to work with Foxconn and the Taiwan government to build an AI factory supercomputer.
Announced NVIDIA is speeding the IT infrastructure transition to enterprise AI factories with NVIDIA RTX PRO™ Servers.
Unveiled NVLink Fusion™ for industry to build semi-custom AI infrastructure with NVIDIA’s partner ecosystem.
Announced NVIDIA Spectrum-X™ and NVIDIA Quantum-X silicon photonics networking switches to scale AI factories to millions of GPUs.
Introduced the NVIDIA DGX SuperPOD™ built with NVIDIA Blackwell Ultra GPUs to provide AI factory supercomputing for agentic AI reasoning.
Announced joint initiatives with Alphabet and Google to advance agentic AI solutions, robotics and drug discovery.
Announced integration between NVIDIA accelerated computing and inference software with Oracle’s AI infrastructure.
Revealed that NVIDIA Blackwell cloud instances are now available on AWS, Google Cloud, Microsoft Azure and Oracle Cloud Infrastructure.
Announced that the NVIDIA Blackwell platform set records in the latest MLPerf inference results, delivering up to 30x higher throughput.
Announced NVIDIA DGX Cloud Lepton™ to connect developers to NVIDIA’s global compute ecosystem.
Launched the open Llama Nemotron family of models with reasoning capabilities, providing a foundation for creating advanced AI agents.
Introduced the NVIDIA AI Data Platform, a customizable reference design for AI inference workloads.
Announced the opening of a research center in Japan that hosts the world’s largest quantum research supercomputer.

Gaming and AI PC

First-quarter Gaming revenue was a record $3.8 billion, up 48% from the previous quarter and up 42% from a year ago.
Announced the NVIDIA GeForce RTX™ 5070 and RTX 5060, bringing Blackwell graphics to gamers at prices starting from $299 for desktops and $1,099 for laptops.
Unveiled NVIDIA DLSS 4 is now available in over 125 games, including Black Myth Wukong, DOOM: The Dark Ages, Indiana Jones and the Great Circle, Marvel Rivals and Star Wars Outlaws.
Announced the Nintendo Switch 2 is powered by an NVIDIA processor and AI-powered DLSS, delivering up to 4K gaming.
Launched the NVIDIA RTX Remix modding platform, attracting over 2 million gamers, alongside the release of the Half-Life 2 RTX demo.

Professional Visualization

First-quarter revenue was $509 million, flat with the previous quarter and up 19% from a year ago.
Announced the NVIDIA RTX PRO™ Blackwell series for workstations and servers.
Unveiled NVIDIA DGX Spark and DGX Station™ personal AI supercomputers powered by the NVIDIA Grace Blackwell platform.
Announced that leading industrial software and service providers Accenture, Ansys, Databricks, SAP, Schneider Electric with ETAP, and Siemens are integrating the NVIDIA Omniverse™ platform into their solutions to accelerate industrial digitalization with physical AI.

Automotive and Robotics

First-quarter Automotive revenue was $567 million, down 1% from the previous quarter and up 72% from a year ago.
Announced a collaboration with General Motors on next-generation vehicles, factories and robots using NVIDIA Omniverse, NVIDIA Cosmos™ and NVIDIA DRIVE AGX™.
Launched NVIDIA Halos, a unified safety system combining NVIDIA’s automotive hardware, software and advanced AV safety AI research.
Announced NVIDIA Isaac™ GR00T N1, the world’s first open humanoid robot foundation model, followed by NVIDIA Isaac™ GR00T N1.5; NVIDIA Isaac GR00T-Dreams, a blueprint for generating synthetic motion data; and NVIDIA Blackwell systems to accelerate humanoid robot development.
Released new NVIDIA Cosmos™ world foundation models and physical AI data tools.

CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com.

Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2026 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its second quarter of fiscal 2026.

Non-GAAP Measures
To supplement NVIDIA’s condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense, acquisition-related and other costs, other, gains/losses from non-marketable and publicly-held equity securities, net, interest expense related to amortization of debt discount, H20 excess inventory and purchase obligation charges, and the associated tax impact of these items where applicable. The inclusion of H20 excess inventory and purchase obligation charges in the reconciliations to adjust the related GAAP financial measures was a result of the U.S. government informing NVIDIA on April 9, 2025 that it requires a license for export to China of H20 products. H20 products were designed primarily for the China market. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases related to property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.


NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)


			Three Months Ended
			April 27,			April 28,
				2025			2024

Revenue			$	44,062		$	26,044
Cost of revenue				17,394			5,638
Gross profit				26,668			20,406

Operating expenses
	Research and development			3,989			2,720
	Sales, general and administrative			1,041			777
		Total operating expenses		5,030			3,497

Operating income				21,638			16,909
	Interest income			515			359
	Interest expense			(63	)		(64	)
	Other income (expense), net			(180	)		75
		Total other income (expense), net		272			370

Income before income tax				21,910			17,279
Income tax expense				3,135			2,398
Net income			$	18,775		$	14,881

Net income per share:
	Basic		$	0.77		$	0.60
	Diluted		$	0.76		$	0.60

Weighted average shares used in per share computation:
	Basic			24,441			24,620
	Diluted			24,611			24,890

NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)


			April 27,		January 26,
				2025		2025
ASSETS

Current assets:
	Cash, cash equivalents and marketable securities		$	53,691	$	43,210
	Accounts receivable, net			22,132		23,065
	Inventories			11,333		10,080
	Prepaid expenses and other current assets			2,779		3,771
		Total current assets		89,935		80,126

Property and equipment, net				7,136		6,283
Operating lease assets				1,810		1,793
Goodwill				5,498		5,188
Intangible assets, net				769		807
Deferred income tax assets				13,318		10,979
Other assets				6,788		6,425
		Total assets	$	125,254	$	111,601

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
	Accounts payable		$	7,331	$	6,310
	Accrued and other current liabilities			19,211		11,737
		Total current liabilities		26,542		18,047

Long-term debt				8,464		8,463
Long-term operating lease liabilities				1,521		1,519
Other long-term liabilities				4,884		4,245
		Total liabilities		41,411		32,274

Shareholders’ equity				83,843		79,327
		Total liabilities and shareholders’ equity	$	125,254	$	111,601

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)


		Three Months Ended
		April 27,			April 28,
			2025			2024

Cash flows from operating activities:
Net income		$	18,775		$	14,881
Adjustments to reconcile net income to net cash
provided by operating activities:
	Stock-based compensation expense		1,474			1,011
	Depreciation and amortization		611			410
	(Gains) losses on non-marketable equity securities and publicly-held equity securities, net		175			(69	)
	Deferred income taxes		(2,177	)		(1,577	)
	Other		(98	)		(145	)
Changes in operating assets and liabilities, net of acquisitions:
	Accounts receivable		933			(2,366	)
	Inventories		(1,258	)		(577	)
	Prepaid expenses and other assets		560			(726	)
	Accounts payable		941			(22	)
	Accrued and other current liabilities		7,128			4,202
	Other long-term liabilities		350			323
Net cash provided by operating activities			27,414			15,345

Cash flows from investing activities:
	Proceeds from maturities of marketable securities		3,122			4,004
	Proceeds from sales of marketable securities		467			149
	Proceeds from sales of non-marketable equity securities		–			55
	Purchases of marketable securities		(6,546	)		(9,303	)
	Purchase related to property and equipment and intangible assets		(1,227	)		(369	)
	Purchases of non-marketable equity securities		(649	)		(190	)
	Acquisitions, net of cash acquired		(383	)		(39	)
Net cash used in investing activities			(5,216	)		(5,693	)

Cash flows from financing activities:
	Proceeds related to employee stock plans		370			285
	Payments related to repurchases of common stock		(14,095	)		(7,740	)
	Payments related to employee stock plan taxes		(1,532	)		(1,752	)
	Dividends paid		(244	)		(98	)
	Principal payments on property and equipment and intangible assets		(52	)		(40	)
Net cash used in financing activities			(15,553	)		(9,345	)

Change in cash and cash equivalents			6,645			307
Cash and cash equivalents at beginning of period			8,589			7,280
Cash and cash equivalents at end of period		$	15,234		$	7,587

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)

		Three Months Ended
		April 27,			January 26,			April 28,
			2025			2025			2024

GAAP cost of revenue		$	17,394		$	10,608		$	5,638
GAAP gross profit		$	26,668		$	28,723		$	20,406
	GAAP gross margin		60.5%			73.0%			78.4%
	Acquisition-related and other costs (A)		123			118			119
	Stock-based compensation expense (B)		64			53			36
	Other		3			–			(1	)
Non-GAAP cost of revenue		$	17,204		$	10,437		$	5,484
Non-GAAP gross profit		$	26,858		$	28,894		$	20,560
	Non-GAAP gross margin		61.0%			73.5%			78.9%

GAAP operating expenses		$	5,030		$	4,689		$	3,497
	Stock-based compensation expense (B)		(1,410	)		(1,268	)		(975	)
	Acquisition-related and other costs (A)		(37	)		(43	)		(21	)
Non-GAAP operating expenses		$	3,583		$	3,378		$	2,501

GAAP operating income		$	21,638		$	24,034		$	16,909
	Total impact of non-GAAP adjustments to operating income		1,637			1,482			1,150
Non-GAAP operating income		$	23,275		$	25,516		$	18,059

GAAP total other income (expense), net		$	272		$	1,183		$	370
	(Gains) losses from non-marketable equity securities and publicly-held equity securities, net		175			(727	)		(69	)
	Interest expense related to amortization of debt discount		1			1			1
Non-GAAP total other income (expense), net		$	448		$	457		$	302

GAAP net income		$	18,775		$	22,091		$	14,881
	Total pre-tax impact of non-GAAP adjustments		1,813			756			1,082
	Income tax impact of non-GAAP adjustments (C)		(694	)		(781	)		(725	)
Non-GAAP net income		$	19,894		$	22,066		$	15,238

Diluted net income per share (D)
	GAAP	$	0.76		$	0.89		$	0.60
	Non-GAAP	$	0.81		$	0.89		$	0.61

Weighted average shares used in diluted net income per share computation (D)			24,611			24,706			24,890

GAAP net cash provided by operating activities		$	27,414		$	16,628		$	15,345
	Purchases related to property and equipment and intangible assets		(1,227	)		(1,077	)		(369	)
	Principal payments on property and equipment and intangible assets		(52	)		(32	)		(40	)
Free cash flow		$	26,135		$	15,519		$	14,936




(A) Acquisition-related and other costs are comprised of amortization of intangible assets, transaction costs, and certain compensation charges and are included in the following line items:
		Three Months Ended
		April 27,			January 26,			April 28,
			2025			2025			2024
	Cost of revenue	$	123		$	118		$	119
	Research and development	$	28		$	27		$	12
	Sales, general and administrative	$	9		$	16		$	8

(B) Stock-based compensation consists of the following:
		Three Months Ended
		April 27,			January 26,			April 28,
			2025			2025			2024
	Cost of revenue	$	64		$	53		$	36
	Research and development	$	1,063		$	955		$	727
	Sales, general and administrative	$	347		$	313		$	248

(C) Income tax impact of non-GAAP adjustments, including the recognition of excess tax benefits or deficiencies related to stock-based compensation under GAAP accounting standard (ASU 2016-09).

(D) Reflects a ten-for-one stock split on June 7, 2024.





								Three Months
								Ended
								April 27,
									2025
								($ in millions)
GAAP gross profit								$	26,668
GAAP gross margin									60.5%
	Stock-based compensation expense, acquisition-related costs, and other costs								190
	H20 excess inventory and purchase obligation charges								4,538
Non-GAAP gross profit (as adjusted to exclude H20 excess inventory and purchase obligation charges)								$	31,396
Non-GAAP gross margin (as adjusted to exclude H20 excess inventory and purchase obligation charges)									71.3%


GAAP net income								$	18,775
	Total pre-tax impact of non-GAAP adjustments and H20 excess inventory and purchase obligation charges								6,351
	Income tax impact of non-GAAP adjustments and H20 excess inventory and purchase obligation charges								(1,491	)
Non-GAAP net income (as adjusted to exclude H20 excess inventory and purchase obligation charges)								$	23,635

Diluted net income per share
	GAAP							$	0.76
	Non-GAAP (as adjusted to exclude H20 excess inventory and purchase obligation charges)							$	0.96

Weighted average shares used in diluted net income per share computation									24,611

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK


		Q2 FY2026 Outlook
		($ in millions)

GAAP gross margin			71.8%
	Impact of stock-based compensation expense, acquisition-related costs, and other costs		0.2%
Non-GAAP gross margin			72.0%

GAAP operating expenses		$	5,700
	Stock-based compensation expense, acquisition-related costs, and other costs		(1,700	)
Non-GAAP operating expenses		$	4,000

About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in accelerated computing.

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Certain statements in this press release including, but not limited to, statements as to: the impact of H20 export licensing requirements; global demand for NVIDIA’s AI infrastructure; the demand for AI computing accelerating; countries recognizing AI as essential infrastructure and NVIDIA’s role; AI factories fueling a new industrial revolution and their impact; expectations with respect to growth, performance and benefits of NVIDIA’s products, services and technologies, including Blackwell, and related trends and drivers; expectations with respect to supply and demand for NVIDIA’s products, services and technologies, including Blackwell, and related matters including inventory, production and distribution; expectations with respect to NVIDIA’s third party arrangements, including with its collaborators and partners; expectations with respect to technology developments and related trends and drivers; future NVIDIA cash dividends or other returns to stockholders; NVIDIA’s financial and business outlook for the second quarter of fiscal 2026 and beyond; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing product and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2025 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, DGX Cloud Lepton, DGX Station, GeForce RTX, NVIDIA Cosmos, NVIDIA DGX SuperPOD, NVIDIA Isaac, NVIDIA Omniverse, NVIDIA RTX PRO, NVIDIA Spectrum-X, and NVLink Fusion are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability and specifications are subject to change without notice.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/aabe86db-ce89-4434-b83c-495082979801

The MIL Network –

May 29, 2025

Category: Emissions Trading

EPIC FIVE-YEAR BRIAN FRIEL CENTENARY CELEBRATION BEGINS THIS AUGUST WITH 35 PERFORMANCES OF FIVE

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