Category: Emissions Trading

  • MIL-OSI Europe: Minutes – Wednesday, 7 May 2025 – Strasbourg – Final edition

    Source: European Parliament

    PV-10-2025-05-07

    EN

    EN

    iPlPv_Sit

    Minutes
    Wednesday, 7 May 2025 – Strasbourg

     Abbreviations and symbols

    + adopted
    rejected
    lapsed
    W withdrawn
    RCV roll-call votes
    EV electronic vote
    SEC secret ballot
    split split vote
    sep separate vote
    am amendment
    CA compromise amendment
    CP corresponding part
    D deleting amendment
    = identical amendments
    § paragraph

    IN THE CHAIR: Martin HOJSÍK
    Vice-President

    1. Opening of the sitting

    The sitting opened at 09:00.


    2. Negotiations ahead of Parliament’s first reading (Rule 72) (action taken)

    The decisions of the LIBE and PECH committees and (jointly) the SEDE and ITRE committees to enter into interinstitutional negotiations had been announced on 5 May 2025 (minutes of 5.5.2025, item 12).

    Since no requests for vote had been made pursuant to Rule 72(2), the committees responsible had been able to begin negotiations after the expiry of the deadline set.


    3. EU support for a just, sustainable and comprehensive peace in Ukraine (debate)

    Council and Commission statements: EU support for a just, sustainable and comprehensive peace in Ukraine (2025/2685(RSP))

    Adam Szłapka (President-in-Office of the Council) and Ursula von der Leyen (President of the Commission) made the statements.

    The following spoke: Michael Gahler, on behalf of the PPE Group, Yannis Maniatis, on behalf of the S&D Group, Kinga Gál, on behalf of the PfE Group, Adam Bielan, on behalf of the ECR Group, Petras Auštrevičius, on behalf of the Renew Group, Terry Reintke, on behalf of the Verts/ALE Group, Özlem Demirel, on behalf of The Left Group, Hans Neuhoff, on behalf of the ESN Group, Sandra Kalniete, Thijs Reuten, Harald Vilimsky, who also declined to take a blue-card question from Moritz Körner, Alberico Gambino, Marie-Agnes Strack-Zimmermann, Virginijus Sinkevičius, Marc Botenga, who also answered a blue-card question from Sebastian Tynkkynen, Petar Volgin, Fidias Panayiotou, who also answered a blue-card question from Moritz Körner, Rasa Juknevičienė, Brando Benifei, Tom Vandendriessche, Mirosława Nykiel and Heléne Fritzon.

    IN THE CHAIR: Christel SCHALDEMOSE
    Vice-President

    The following spoke: Beata Szydło, Nathalie Loiseau, Mika Aaltola, Francisco Assis, Hannah Neumann, Paulius Saudargas, Marcos Ros Sempere, Roberto Vannacci, Victor Negrescu, Aurelijus Veryga, Hilde Vautmans, Matej Tonin, Danilo Della Valle, Francisco José Millán Mon, Tonino Picula, Pierre-Romain Thionnet, Salvatore De Meo, Raphaël Glucksmann, Merja Kyllönen, Ingeborg Ter Laak, Elena Yoncheva, Seán Kelly, who also answered a blue-card question from Petras Gražulis, Joanna Scheuring-Wielgus, Tamás Deutsch, Rihards Kols, Helmut Brandstätter, Adrián Vázquez Lázara, Vilija Blinkevičiūtė, Krzysztof Hetman, Jonas Sjöstedt, Danuše Nerudová, Tobias Cremer, Tomasz Buczek, Małgorzata Gosiewska, Dan Barna, Wouter Beke, Ignazio Roberto Marino, Irene Montero and Ana Miguel Pedro.

    The following spoke under the catch-the-eye procedure: Michał Szczerba, Juan Fernando López Aguilar, Viktória Ferenc, Arkadiusz Mularczyk, Dainius Žalimas, Jaume Asens Llodrà, Siegbert Frank Droese, Lukas Sieper, Maria Grapini, Damian Boeselager and Petras Gražulis.

    The following spoke: Valdis Dombrovskis (Member of the Commission) and Adam Szłapka.

    The debate closed.

    (The sitting was suspended at 11:19.)


    IN THE CHAIR: Roberta METSOLA
    President

    4. Resumption of the sitting

    The sitting resumed at 11:35.


    5. Commemoration of the 80th anniversary of the end of World War II in Europe

    The President made a statement to mark the 80th anniversary of the end of World War II in Europe.

    António Costa (President of the European Council), Robert Chot (Member of the Belgian Royal National Federation of War Volunteers), Janusz Komorowski (President of the Polish Association of Home Army Soldiers) and Janusz Maksymowicz (Vice-President of the Warsaw Uprising Insurgents Association), addressed the House.

    The House stood for the European anthem performed by soprano Francesca Sorteni, accompanied by Thomas Gautier and Claire Rigaux on violin, Marie Viard on cello and Emma Errara on viola.

    (The sitting was suspended for a few moments.)


    6. Resumption of the sitting

    The sitting resumed at 12:19.

    The following spoke: Valérie Hayer (the President noted her remarks. She pointed out that serving Europe in the House of democracy was an honourable commitment and called for everyone to respect what this represented).


    7. Welcome

    On behalf of Parliament, the President welcomed Dr Denis Mukwege, winner of the 2014 Sakharov Prize and 2018 Nobel Peace Prize, who had taken his seat in the distinguished visitors gallery.


    8. Voting time

    For detailed results of the votes, see also ‘Results of votes’ and ‘Results of roll-call votes’.


    8.1. Amending ERDF, Cohesion Fund and Just Transition Fund as regards specific measures to address strategic challenges in the context of the mid-term review ***I (vote)

    Amending ERDF, Cohesion Fund and Just Transition Fund as regards specific measures to address strategic challenges in the context of the mid-term review – (COM(2025)0123 – C10-0063/2025 – 2025/0084(COD))

    REQUEST FOR AN URGENT DECISION by the REGI Committee (Rule 170(5))

    Approved

    Vote: at a later part-session.

    Detailed voting results


    8.2. European Social Fund (ESF+): specific measures to address strategic challenges ***I (vote)

    European Social Fund (ESF+): specific measures to address strategic challenges – (COM(2025)0164 – C10-0064/2025 – 2025/0085(COD))

    REQUEST FOR AN URGENT DECISION by the EMPL Committee (Rule 170(5))

    Approved

    Vote: at a later part-session.

    Detailed voting results


    8.3. Discharge 2023: EU general budget – Commission, executive agencies and European Development Funds (vote)

    Report on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section III – Commission, executive agencies and the ninth, tenth and eleventh European Development Funds [COM(2024)0272 – C10-0067/2024 – 2024/2019(DEC)] – Committee on Budgetary Control. Rapporteur: Niclas Herbst (A10-0074/2025)

    (Majority of the votes cast)

    PROPOSALS FOR DECISIONS – Commission and executive agencies

    Adopted (P10_TA(2025)0077)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    PROPOSALS FOR DECISIONS – European Development Funds – EDF (9th, 10th and 11th)

    Adopted (P10_TA(2025)0077)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0077)

    Detailed voting results


    8.4. Discharge 2023: EU general budget – European Parliament (vote)

    Report on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section I – European Parliament [COM(2024)0272 – C10-0068/2024 – 2024/2020(DEC)] – Committee on Budgetary Control. Rapporteur: Monika Hohlmeier (A10-0062/2025)

    (Majority of the votes cast)

    PROPOSAL FOR A DECISION

    Adopted (P10_TA(2025)0078)

    Detailed voting results


    8.5. Discharge 2023: EU general budget – European Council and Council (vote)

    Report on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section II – European Council and Council [COM(2024)0272 – C10-0069/2024 – 2024/2021(DEC)] – Committee on Budgetary Control. Rapporteur: Joachim Stanisław Brudziński (A10-0052/2025)

    PROPOSAL FOR A DECISION

    Approved (P10_TA(2025)0079)

    Discharge postponed (see Annex V, Article 5(1)(b) to the Rules of Procedure)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0079)

    Detailed voting results


    8.6. Discharge 2023: EU general budget – Court of Justice of the European Union (vote)

    Report on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section IV – Court of Justice [COM(2024)0272 – C10-0070/2024 – 2024/2022(DEC)] – Committee on Budgetary Control. Rapporteur: Cristian Terheş (A10-0050/2025)

    (Majority of the votes cast)

    PROPOSAL FOR A DECISION

    Adopted (P10_TA(2025)0080)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0080)

    Detailed voting results


    8.7. Discharge 2023: EU general budget – Court of Auditors (vote)

    Report on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section V – Court of Auditors [COM(2024)0272 – C10-0071/2024 – 2024/2023(DEC)] – Committee on Budgetary Control. Rapporteur: Dick Erixon (A10-0047/2025)

    (Majority of the votes cast)

    PROPOSAL FOR A DECISION

    Adopted (P10_TA(2025)0081)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0081)

    Detailed voting results


    8.8. Discharge 2023: EU general budget – European Economic and Social Committee (vote)

    Report on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VI – European Economic and Social Committee [COM(2024)0272 – C10-0073/2024 – 2024/2025(DEC)] – Committee on Budgetary Control. Rapporteur: Joachim Stanisław Brudziński (A10-0054/2025)

    (Majority of the votes cast)

    PROPOSAL FOR A DECISION

    Adopted (P10_TA(2025)0082)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0082)

    Detailed voting results


    8.9. Discharge 2023: EU general budget – Committee of the Regions (vote)

    Report on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VII – Committee of the Regions [COM(2024)0272 – C10-0074/2024 – 2024/2026(DEC)] – Committee on Budgetary Control. Rapporteur: Joachim Stanisław Brudziński (A10-0046/2025)

    (Majority of the votes cast)

    PROPOSAL FOR A DECISION

    Adopted (P10_TA(2025)0083)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0083)

    Detailed voting results


    8.10. Discharge 2023: EU general budget – European Ombudsman (vote)

    Report on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VIII – European Ombudsman [COM(2024)0272 – C10-0075/2024 – 2024/2027(DEC)] – Committee on Budgetary Control. Rapporteur: Joachim Stanisław Brudziński (A10-0055/2025)

    (Majority of the votes cast)

    PROPOSAL FOR A DECISION

    Adopted (P10_TA(2025)0084)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0084)

    Detailed voting results


    8.11. Discharge 2023: EU general budget – European Data Protection Supervisor (vote)

    Report on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section IX – European Data Protection Supervisor [COM(2024)0272 – C10-0076/2024 – 2024/2028(DEC)] – Committee on Budgetary Control. Rapporteur: Joachim Stanisław Brudziński (A10-0053/2025)

    (Majority of the votes cast)

    PROPOSAL FOR A DECISION

    Adopted (P10_TA(2025)0085)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0085)

    Detailed voting results


    8.12. Discharge 2023: EU general budget – European External Action Service (vote)

    Report on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section X – European External Action Service [COM(2024)0272 – C10-0072/2024 – 2024/2024(DEC)] – Committee on Budgetary Control. Rapporteur: Joachim Stanisław Brudziński (A10-0069/2025)

    (Majority of the votes cast)

    PROPOSAL FOR A DECISION

    Adopted (P10_TA(2025)0086)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0086)

    Detailed voting results


    8.13. Discharge 2023: European Public Prosecutor’s Office (vote)

    Report on discharge in respect of the implementation of the budget of the European Public Prosecutor’s Office for the financial year 2023 [COM(2024)0272 – C10-0077/2024 – 2024/2029(DEC)] – Committee on Budgetary Control. Rapporteur: Tomáš Zdechovský (A10-0051/2025)

    (Majority of the votes cast)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0087)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0087)

    Detailed voting results


    8.14. Discharge 2023: Agencies (vote)

    Report on discharge in respect of the implementation of the budget of the European Union Agencies for the financial year 2023 [COM(2024)0272 – C10-0078/2024 – 2024/2030(DEC)] – Committee on Budgetary Control. Rapporteur: Erik Marquardt (A10-0065/2025)

    (Majority of the votes cast)

    European Union Agency for the Cooperation of Energy Regulators (ACER)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    Agency for Support for BEREC

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    Translation Centre for the Bodies of the European Union (CdT)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Centre for the Development of Vocational Training (Cedefop)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Union Agency for Law Enforcement Training (CEPOL)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Union Aviation Safety Agency (EASA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Banking Authority (EBA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Centre for Disease Prevention and Control (ECDC)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Chemicals Agency (ECHA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Environment Agency (EEA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Fisheries Control Agency (EFCA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Food Safety Authority (EFSA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Institute for Gender Equality (EIGE)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Insurance and Occupational Pensions Authority (EIOPA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Institute of Innovation and Technology (EIT)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Labour Authority (ELA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Medicines Agency (EMA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Monitoring Centre for Drugs and Drug Addiction (now European Union Drugs Agency)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Maritime Safety Agency (EMSA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Union Agency for Cybersecurity (ENISA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Union Agency for Railways (ERA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    Euratom Supply Agency (ESA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Securities and Markets Authority (ESMA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Training Foundation (ETF)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Union Agency for Asylum (EUAA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge and closure of the accounts was postponed (see Annex V, Article 5(1) to the Rules of Procedure).

    European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Agency for Safety and Health at Work (EU-OSHA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Foundation for the Improvement of Living and Working Conditions (Eurofound)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Union Agency for Criminal Justice Cooperation (Eurojust)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Union Agency for Law Enforcement Cooperation (Europol)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Union Agency for the Space Programme (EUSPA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Union Agency for Fundamental Rights (FRA)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Border and Coast Guard Agency (Frontex)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0088)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0088)

    Detailed voting results


    8.15. Discharge 2023: Joint Undertakings (vote)

    Report on discharge in respect of the implementation of the budget of the EU joint undertakings for the financial year 2023 [COM(2024)0272 – C10-0079/2024 – 2024/2031(DEC)] – Committee on Budgetary Control. Rapporteur: Michal Wiezik (A10-0056/2025)

    (Majority of the votes cast)

    Clean Aviation Joint Undertaking

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0089)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    Circular Bio-based Europe Joint Undertaking

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0089)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    Clean Hydrogen Joint Undertaking

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0089)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    Europe’s Rail Joint Undertaking

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0089)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European High Performance Computing Joint Undertaking

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0089)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    European Joint Undertaking for ITER and the Development of Fusion Energy

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0089)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    Global Health EDCTP3 Joint Undertaking

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0089)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    Innovative Health Initiative Joint Undertaking

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0089)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    Chips Joint Undertaking (before 21.9.2023: Key Digital Technologies Joint Undertaking)

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0089)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    Single European Sky ATM Research 3 Joint Undertaking

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0089)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    Smart Networks and Services Joint Undertaking

    PROPOSALS FOR DECISIONS

    Adopted (P10_TA(2025)0089)

    Discharge was granted and closure of the accounts approved (see Annex V, Article 5(1) to the Rules of Procedure).

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0089)

    Detailed voting results


    8.16. A revamped long-term budget for the Union in a changing world (vote)

    Report on a revamped long-term budget for the Union in a changing world [2024/2051(INI)] – Committee on Budgets. Rapporteurs: Siegfried Mureşan and Carla Tavares (A10-0076/2025)

    The debate had taken place on 6 May 2025 (minutes of 6.5.2025, item 9).

    (Majority of the votes cast)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0090)

    Detailed voting results


    8.17. The European Water Resilience Strategy (vote)

    Report on the European Water Resilience Strategy [2024/2104(INI)] – Committee on the Environment, Climate and Food Safety. Rapporteur: Thomas Bajada (A10-0073/2025)

    The debate had taken place on 6 May 2025 (minutes of 6.5.2025, item 13).

    (Majority of the votes cast)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0091)

    Detailed voting results


    8.18. 2023 and 2024 reports on Türkiye (vote)

    2023 and 2024 Commission reports on Türkiye [2025/2023(INI)] – Committee on Foreign Affairs. Rapporteur: Nacho Sánchez Amor (A10-0067/2025)

    The debate had taken place on 6 May 2025 (minutes of 6.5.2025, item 14).

    (Majority of the votes cast)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0092)

    The following had spoken:

    Nacho Sánchez Amor (rapporteur), to move an oral amendment to add a new paragraph after paragraph 31. Parliament had agreed to put the oral amendment to the vote.

    Jordan Bardella, to move an oral amendment to add a new paragraph after paragraph 36. Parliament had not agreed to put the oral amendment to the vote as more than 39 Members had opposed it.

    Detailed voting results


    8.19. 2023 and 2024 reports on Serbia (vote)

    Report on the 2023 and 2024 Commission reports on Serbia [2025/2022(INI)] – Committee on Foreign Affairs. Rapporteur: Tonino Picula (A10-0072/2025)

    The debate had taken place on 6 May 2025 (minutes of 6.5.2025, item 16).

    (Majority of the votes cast)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0093)

    The following had spoken:

    Tonino Picula (rapporteur), to move an oral amendment to paragraph 23. Parliament had agreed to put the oral amendment to the vote.

    Detailed voting results


    8.20. 2023 and 2024 reports on Kosovo (vote)

    Report on the 2023 and 2024 Commission Reports on Kosovo [2025/2019(INI)] – Committee on Foreign Affairs. Rapporteur: Riho Terras (A10-0075/2025)

    The debate had taken place on 6 May 2025 (minutes of 6.5.2025, item 17).

    (Majority of the votes cast)

    MOTION FOR A RESOLUTION

    Adopted (P10_TA(2025)0094)

    Detailed voting results

    20

    (The sitting was suspended at 13:39.)


    IN THE CHAIR: Javi LÓPEZ
    Vice-President

    9. Resumption of the sitting

    The sitting resumed at 13:44.


    10. Approval of the minutes of the previous sitting

    The minutes of the previous sitting were approved.


    11. Winning the global tech race: boosting innovation and closing funding gaps (topical debate)

    The following spoke: Eva Maydell to open the debate proposed by the PPE Group.

    The following spoke: Adam Szłapka (President-in-Office of the Council) and Costas Kadis (Member of the Commission).

    The following spoke: Pablo Arias Echeverría, on behalf of the PPE Group, Alex Agius Saliba, on behalf of the S&D Group, Julie Rechagneux, on behalf of the PfE Group, Elena Donazzan, on behalf of the ECR Group, Christophe Grudler, on behalf of the Renew Group, Kim Van Sparrentak, on behalf of the Verts/ALE Group, Leila Chaibi, on behalf of The Left Group, Marcin Sypniewski, on behalf of the ESN Group, Tomislav Sokol, Christel Schaldemose, Kosma Złotowski, Svenja Hahn, David Cormand, Milan Mazurek, Massimiliano Salini, Giorgio Gori, Philippe Olivier, Charlie Weimers, Morten Løkkegaard, Eszter Lakos, Laura Ballarín Cereza, Diego Solier, Fernando Navarrete Rojas, Matthias Ecke, Mario Mantovani and Elena Sancho Murillo.

    The following spoke: Costas Kadis and Adam Szłapka.

    The debate closed.


    12. Competition policy – annual report 2024 (debate)

    Report on competition policy – annual report 2024 [2024/2079(INI)] – Committee on Economic and Monetary Affairs. Rapporteur: Lara Wolters (A10-0071/2025)

    Lara Wolters introduced the report.

    The following spoke: Teresa Ribera (Executive Vice-President of the Commission).

    The following spoke: Andreas Schwab, on behalf of the PPE Group, and Thomas Bajada, on behalf of the S&D Group.

    IN THE CHAIR: Antonella SBERNA
    Vice-President

    The following spoke: Pierre Pimpie, on behalf of the PfE Group, Francesco Ventola, on behalf of the ECR Group, Stéphanie Yon-Courtin, on behalf of the Renew Group, Kira Marie Peter-Hansen, on behalf of the Verts/ALE Group, Martin Schirdewan, on behalf of The Left Group, Rada Laykova, on behalf of the ESN Group, Markus Ferber, René Repasi, Enikő Győri, Marlena Maląg, Marie Toussaint, Marcin Sypniewski, Branislav Ondruš, who also answered a blue-card question from João Oliveira, Georgios Aftias, Nikos Papandreou, Dirk Gotink, Adnan Dibrani, Marco Falcone and Jonás Fernández.

    The following spoke under the catch-the-eye procedure: Ralf Seekatz, Sebastian Tynkkynen, Petras Gražulis, João Oliveira and Alexander Jungbluth.

    The following spoke: Teresa Ribera and Lara Wolters.

    The debate closed.

    Vote: 8 May 2025.


    13. Resilience and the need to improve the interconnection of energy grid infrastructure in the EU: the first lessons from the blackout in the Iberian Peninsula (debate)

    Council and Commission statements: Resilience and the need to improve the interconnection of energy grid infrastructure in the EU: the first lessons from the blackout in the Iberian Peninsula (2025/2686(RSP))

    Adam Szłapka (President-in-Office of the Council) and Dan Jørgensen (Member of the Commission) made the statements.

    The following spoke: Dolors Montserrat, on behalf of the PPE Group, Nicolás González Casares, on behalf of the S&D Group, Jorge Buxadé Villalba, on behalf of the PfE Group, Diego Solier, on behalf of the ECR Group, Anna Stürgkh, on behalf of the Renew Group, Diana Riba i Giner, on behalf of the Verts/ALE Group, Estrella Galán, on behalf of The Left Group, Petr Bystron, on behalf of the ESN Group, Paulo Cunha, who also answered a blue-card question from Petras Gražulis, Francisco Assis, António Tânger Corrêa, who also answered a blue-card question from Bruno Gonçalves, Patryk Jaki, Oihane Agirregoitia Martínez, Jaume Asens Llodrà, Irene Montero, Marc Jongen, Lefteris Nikolaou-Alavanos, François-Xavier Bellamy, who also answered a blue-card question from Nicolás González Casares, Sofie Eriksson, Paolo Borchia, Nora Junco García, Christophe Grudler, Pernando Barrena Arza, Pilar del Castillo Vera, who also declined to take a blue-card question from Nicolás González Casares, and Elena Sancho Murillo.

    IN THE CHAIR: Christel SCHALDEMOSE
    Vice-President

    The following spoke: András Gyürk, Nicolas Bay, Michał Kobosko, João Oliveira, Ana Miguel Pedro, Bruno Gonçalves, Pascale Piera, Daniel Obajtek, Seán Kelly, Bruno Tobback, Georg Mayer, Aleksandar Nikolic and Juan Carlos Girauta Vidal.

    The following spoke under the catch-the-eye procedure: Davor Ivo Stier, Susana Solís Pérez, Sebastian Tynkkynen, Maria Zacharia and Lukas Sieper.

    The following spoke: Dan Jørgensen and Adam Szłapka.

    The debate closed.


    14. High levels of retail food prices and their consequences for European consumers (debate)

    Council and Commission statements: High levels of retail food prices and their consequences for European consumers (2025/2687(RSP))

    Adam Szłapka (President-in-Office of the Council) and Costas Kadis (Member of the Commission) made the statements.

    The following spoke: Tomislav Sokol, on behalf of the PPE Group, Camilla Laureti, on behalf of the S&D Group, Gilles Pennelle, on behalf of the PfE Group, Stefano Cavedagna, on behalf of the ECR Group, Asger Christensen, on behalf of the Renew Group, David Cormand, on behalf of the Verts/ALE Group, Hanna Gedin, on behalf of The Left Group, Milan Mazurek, on behalf of the ESN Group, Carmen Crespo Díaz, Adnan Dibrani, Tomasz Buczek, Veronika Vrecionová, Christine Singer, Ana Miranda Paz, who also answered a blue-card question from João Oliveira, Konstantinos Arvanitis, who also answered a blue-card question from Rody Tolassy, Kateřina Konečná, Péter Magyar, Biljana Borzan, Marieke Ehlers, Sergio Berlato, Ciaran Mullooly, Marc Botenga, Nikolaos Anadiotis, Krzysztof Hetman, Pierfrancesco Maran, Barbara Bonte, Jessika Van Leeuwen, Laura Ballarín Cereza, Margarita de la Pisa Carrión and France Jamet.

    IN THE CHAIR: Esteban GONZÁLEZ PONS
    Vice-President

    The following spoke under the catch-the-eye procedure: Cristina Maestre, Mireia Borrás Pabón, Csaba Dömötör, Sebastian Tynkkynen, Rasmus Andresen, Elena Kountoura, João Oliveira, Lukas Sieper and Maria Zacharia.

    The following spoke: Costas Kadis and Adam Szłapka.

    The debate closed.


    15. Malta’s Golden Passport scheme circumventing EU sanctions against Russia (debate)

    Council and Commission statements: Malta’s Golden Passport scheme circumventing EU sanctions against Russia (2025/2688(RSP))

    Adam Szłapka (President-in-Office of the Council) and Michael McGrath (Member of the Commission) made the statements.

    The following spoke: David Casa, on behalf of the PPE Group, Alex Agius Saliba, on behalf of the S&D Group, Jadwiga Wiśniewska, on behalf of the ECR Group, Raquel García Hermida-Van Der Walle, on behalf of the Renew Group, Saskia Bricmont, on behalf of the Verts/ALE Group, Giuseppe Antoci, on behalf of The Left Group, Luděk Niedermayer, Birgit Sippel, Georgiana Teodorescu, who also declined to take a blue-card question from Raquel García Hermida-Van Der Walle, Irena Joveva, Daniel Freund, Peter Agius, Thomas Bajada, who also answered a blue-card question from Raquel García Hermida-Van Der Walle and did not accept a blue-card question from Daniel Freund, Alice Teodorescu Måwe, Daniel Attard, who also answered a blue-card question from Daniel Freund, and Evelyn Regner.

    The following spoke under the catch-the-eye procedure: Juan Fernando López Aguilar and Sebastian Tynkkynen.

    The following spoke: Alex Agius Saliba (the President cut off the speaker as his remarks did not constitute a point of order).

    The following spoke under the catch-the-eye procedure: Maria Zacharia.

    The following spoke: Michael McGrath and Adam Szłapka.

    The debate closed.


    16. The role of gas storage for securing gas supplies ahead of the winter season (debate)

    Report on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2017/1938 as regards the role of gas storage for securing gas supplies ahead of the winter season [COM(2025)0099 – C10-0041/2025 – 2025/0051(COD)] – Committee on Industry, Research and Energy. Rapporteur: Borys Budka (A10-0079/2025)

    Borys Budka introduced the report.

    The following spoke: Dan Jørgensen (Member of the Commission).

    The following spoke: Andrea Wechsler, on behalf of the PPE Group, Jens Geier, on behalf of the S&D Group, András Gyürk, on behalf of the PfE Group, Ondřej Krutílek, on behalf of the ECR Group, Yvan Verougstraete, on behalf of the Renew Group, Marie Toussaint, on behalf of the Verts/ALE Group, Dario Tamburrano, on behalf of The Left Group, Alexander Sell, on behalf of the ESN Group, Jüri Ratas, Nicolás González Casares, Julie Rechagneux, Michael Bloss, Thomas Geisel and Mirosława Nykiel.

    IN THE CHAIR: Ewa KOPACZ
    Vice-President

    The following spoke: Michalis Hadjipantela and Virgil-Daniel Popescu.

    The following spoke under the catch-the-eye procedure: Liudas Mažylis, Sebastian Tynkkynen, Marta Wcisło and Billy Kelleher.

    The following spoke: Dan Jørgensen and Borys Budka.

    The debate closed.

    Vote: 8 May 2025.


    17. Banking Union – annual report 2024 (debate)

    Report on Banking Union – annual report 2024 [2024/2055(INI)] – Committee on Economic and Monetary Affairs. Rapporteur: Ralf Seekatz (A10-0044/2025)

    Ralf Seekatz introduced the report.

    The following spoke: Michael McGrath (Member of the Commission).

    The following spoke: Marco Falcone, on behalf of the PPE Group, Jonás Fernández, on behalf of the S&D Group, Marlena Maląg, on behalf of the ECR Group, Billy Kelleher, on behalf of the Renew Group, Jussi Saramo, on behalf of The Left Group, Costas Mavrides and Giovanni Crosetto.

    The following spoke under the catch-the-eye procedure: Marta Wcisło, Sebastian Tynkkynen and Lukas Sieper.

    The following spoke: Michael McGrath and Ralf Seekatz.

    The debate closed.

    Vote: 8 May 2025.


    18. The fine against TikTok and the need to strengthen the protection of citizens’ rights on social media platforms (debate)

    Commission statement: The fine against TikTok and the need to strengthen the protection of citizens’ rights on social media platforms (2025/2704(RSP))

    Michael McGrath (Member of the Commission) made the statement.

    The following spoke: François-Xavier Bellamy, on behalf of the PPE Group, Alex Agius Saliba, on behalf of the S&D Group, Virginie Joron, on behalf of the PfE Group, Gheorghe Piperea, on behalf of the ECR Group, Veronika Cifrová Ostrihoňová, on behalf of the Renew Group, Alexandra Geese, on behalf of the Verts/ALE Group, Konstantinos Arvanitis, on behalf of The Left Group, Mary Khan, Pablo Arias Echeverría, Elisabeth Dieringer, Sandro Gozi, Fidias Panayiotou, Sunčana Glavak, Cynthia Ní Mhurchú and Moritz Körner.

    The following spoke under the catch-the-eye procedure: Juan Fernando López Aguilar, Billy Kelleher and Lukas Sieper.

    The following spoke: Michael McGrath.

    The debate closed.


    19. Debate on cases of breaches of human rights, democracy and the rule of law (debate)

    (For the titles and authors of the motions for resolutions, see minutes of 7.5.2025, item I.)


    19.1. Arrest and risk of execution of Tundu Lissu, Chair of Chadema, the main opposition party in Tanzania

    Motions for resolutions B10-0260/2025, B10-0261/2025, B10-0262/2025, B10-0263/2025, B10-0264/2025 and B10-0265/2025 (2025/2690(RSP))

    Reinhold Lopatka, Marit Maij, Jan-Christoph Oetjen, Catarina Vieira and Tomasz Froelich introduced their groups’ motions for resolutions.

    The following spoke under the catch-the-eye procedure: Lukas Sieper.

    The following spoke: Michael McGrath (Member of the Commission).

    The debate closed.

    Vote: 8 May 2025.


    19.2. Return of Ukrainian children forcibly transferred and deported by Russia

    Motions for resolutions B10-0247/2025, B10-0249/2025, B10-0250/2025, B10-0252/2025, B10-0255/2025 and B10-0258/2025 (2025/2691(RSP))

    Jessika Van Leeuwen, Thijs Reuten, Petras Auštrevičius, Villy Søvndal and Małgorzata Gosiewska introduced their groups’ motions for resolutions.

    The following spoke: Michał Szczerba, on behalf of the PPE Group, and Pina Picierno, on behalf of the S&D Group.

    IN THE CHAIR: Antonella SBERNA
    Vice-President

    The following spoke: Karin Karlsbro, on behalf of the Renew Group, Ingeborg Ter Laak, Sandra Gómez López, Charles Goerens, Lukas Mandl, Pierfrancesco Maran, Isabel Wiseler-Lima, Davor Ivo Stier and Alice Teodorescu Måwe.

    The following spoke under the catch-the-eye procedure: Liudas Mažylis, Nikos Papandreou, Lukas Sieper and Marta Wcisło.

    The following spoke: Michael McGrath (Member of the Commission).

    The debate closed.

    Vote: 8 May 2025.


    19.3. Violations of religious freedom in Tibet

    Motions for resolutions B10-0248/2025, B10-0251/2025, B10-0253/2025, B10-0254/2025, B10-0256/2025 and B10-0259/2025 (2025/2692(RSP))

    Danuše Nerudová, Hannes Heide, Mariusz Kamiński, Engin Eroglu and Ville Niinistö introduced their groups’ motions for resolutions.

    The following spoke: Michael McNamara, on behalf of the Renew Group.

    The following spoke under the catch-the-eye procedure: Vytenis Povilas Andriukaitis and Lukas Sieper.

    The following spoke: Michael McNamara, on the previous speaker’s comments, and Lukas Sieper on Michael McNamara’s contribution.

    The following spoke: Michael McGrath (Member of the Commission).

    The debate closed.

    Vote: 8 May 2025.


    20. Democratic legitimacy and the Commission’s continued authorisation of genetically modified organisms despite Parliament’s objections (debate)

    Commission statement: Democratic legitimacy and the Commission’s continued authorisation of genetically modified organisms despite Parliament’s objections (2025/2645(RSP))

    Olivér Várhelyi (Member of the Commission) made the statement.

    The following spoke: Esther Herranz García, on behalf of the PPE Group, Biljana Borzan, on behalf of the S&D Group, Paolo Inselvini, on behalf of the ECR Group, Martin Häusling, on behalf of the Verts/ALE Group, Nikolas Farantouris, on behalf of The Left Group, Daniel Buda, Maria Noichl, Georgiana Teodorescu and Günther Sidl.

    The following spoke under the catch-the-eye procedure: Kristian Vigenin, Diana Iovanovici Şoşoacă, Vytenis Povilas Andriukaitis and Lukas Sieper.

    The following spoke: Olivér Várhelyi.

    The debate closed.


    21. The illegal visit of President Erdoğan to the occupied areas of Cyprus (debate)

    Council and Commission statements: The illegal visit of President Erdoğan to the occupied areas of Cyprus (2025/2705(RSP))

    Michael McGrath (Member of the Commission) made the statement on behalf of the Commission.

    The following spoke: Loucas Fourlas, on behalf of the PPE Group, Costas Mavrides, on behalf of the S&D Group, Afroditi Latinopoulou, on behalf of the PfE Group, Geadis Geadi, on behalf of the ECR Group (the President reminded the speaker of the rules on conduct), Kai Tegethoff, on behalf of the Verts/ALE Group, and Irene Montero, on behalf of The Left Group.

    The following spoke: Michael McGrath.

    The debate closed.


    22. Explanations of vote


    22.1. Discharge 2023: EU general budget – European External Action Service (A10-0069/2025 – Joachim Stanisław Brudziński) (oral explanations of vote)

    Lynn Boylan


    22.2. Written explanations of vote

    Explanations of vote submitted in writing under Rule 201 appear on the Members’ pages on Parliament’s website.


    23. Agenda of the next sitting

    The next sitting would be held the following day, 8 May 2025, starting at 09:00. The agenda was available on Parliament’s website.


    24. Approval of the minutes of the sitting

    In accordance with Rule 208(3), the minutes of the sitting would be put to the House for approval at the beginning of the afternoon of the next sitting.


    25. Closure of the sitting

    The sitting closed at 22:21.


    LIST OF DOCUMENTS SERVING AS A BASIS FOR THE DEBATES AND DECISIONS OF PARLIAMENT


    I. Motions for resolutions tabled

    Arrest and risk of execution of Tundu Lissu, Chair of Chadema, the main opposition party in Tanzania

    The following Members or political groups had requested that a debate be held, in accordance with Rule 150, on the following motions for resolutions:

    on the arrest and risk of execution of Tundu Lissu, Chair of Chadema, the main opposition party in Tanzania (2025/2690(RSP)) (B10-0260/2025)
    Catarina Vieira, Nicolae Ştefănuță, Mounir Satouri, Maria Ohisalo, Mélissa Camara, Ville Niinistö
    on behalf of the Verts/ALE Group

    on the arrest and risk of execution of Tundu Lissu, Chair of Chadema, the main opposition party in Tanzania (2025/2690(RSP)) (B10-0261/2025)
    Yannis Maniatis, Francisco Assis, Marit Maij
    on behalf of the S&D Group

    on the arrest and risk of execution of Tundu Lissu, Chair of Chadema, the main opposition party in Tanzania (2025/2690(RSP)) (B10-0262/2025)
    Tomasz Froelich
    on behalf of the ESN Group

    on the arrest and risk of execution of Tundu Lissu, Chair of Chadema, the main opposition party in Tanzania (2025/2690(RSP)) (B10-0263/2025)
    Jan-Christoph Oetjen, Oihane Agirregoitia Martínez, Petras Auštrevičius, Malik Azmani, Dan Barna, Benoit Cassart, Olivier Chastel, Engin Eroglu, Svenja Hahn, Ilhan Kyuchyuk, Karin Karlsbro, Moritz Körner, Urmas Paet, Marie-Agnes Strack-Zimmermann, Hilde Vautmans, Michal Wiezik, Lucia Yar
    on behalf of the Renew Group

    on the arrest and risk of execution of Tundu Lissu, Chair of Chadema, the main opposition party in Tanzania (2025/2690(RSP)) (B10-0264/2025)
    Sebastião Bugalho, Reinhold Lopatka, Michael Gahler, David McAllister, Antonio López-Istúriz White, Ana Miguel Pedro, Davor Ivo Stier, Tomas Tobé, Liudas Mažylis, Ingeborg Ter Laak, Isabel Wiseler-Lima, Mirosława Nykiel, Wouter Beke, Luděk Niedermayer, Vangelis Meimarakis, Milan Zver, Tomáš Zdechovský, Danuše Nerudová, Miriam Lexmann, Jan Farský, Loránt Vincze, Jessica Polfjärd, Andrey Kovatchev, Inese Vaidere
    on behalf of the PPE Group

    on the arrest and risk of execution of Tundu Lissu, Chair of Chadema, the main opposition party in Tanzania (2025/2690(RSP)) (B10-0265/2025)
    Adam Bielan, Sebastian Tynkkynen, Waldemar Tomaszewski, Ondřej Krutílek, Veronika Vrecionová, Alexandr Vondra, Joachim Stanisław Brudziński, Ivaylo Valchev, Jadwiga Wiśniewska, Assita Kanko, Alberico Gambino, Carlo Fidanza
    on behalf of the ECR Group

    Return of Ukrainian children forcibly transferred and deported by Russia

    The following Members or political groups had requested that a debate be held, in accordance with Rule 150, on the following motions for resolutions:

    on the return of Ukrainian children forcibly transferred and deported by Russia (2025/2691(RSP)) (B10-0247/2025)
    Merja Kyllönen
    on behalf of The Left Group

    on the return of Ukrainian children forcibly transferred and deported by Russia (2025/2691(RSP)) (B10-0249/2025)
    Villy Søvndal, Sergey Lagodinsky, Nicolae Ştefănuță, Mounir Satouri, Maria Ohisalo, Catarina Vieira, Ville Niinistö
    on behalf of the Verts/ALE Group

    on the return of Ukrainian children forcibly transferred and deported by Russia (2025/2691(RSP)) (B10-0250/2025)
    Yannis Maniatis, Francisco Assis, Thijs Reuten, Evin Incir, Pina Picierno
    on behalf of the S&D Group

    on the return of Ukrainian children forcibly transferred and deported by Russia (2025/2691(RSP)) (B10-0252/2025)
    Petras Auštrevičius, Oihane Agirregoitia Martínez, Abir Al-Sahlani, Malik Azmani, Dan Barna, Helmut Brandstätter, Benoit Cassart, Olivier Chastel, Veronika Cifrová Ostrihoňová, Engin Eroglu, Svenja Hahn, Karin Karlsbro, Ľubica Karvašová, Moritz Körner, Ilhan Kyuchyuk, Nathalie Loiseau, Jan-Christoph Oetjen, Urmas Paet, Marie-Agnes Strack-Zimmermann, Eugen Tomac, Hilde Vautmans, Lucia Yar, Michał Kobosko
    on behalf of the Renew Group

    on the return of Ukrainian children forcibly transferred and deported by Russia (2025/2691(RSP)) (B10-0255/2025)
    Sebastião Bugalho, Jessika Van Leeuwen, Michael Gahler, David McAllister, Sandra Kalniete, Andrzej Halicki, Antonio López-Istúriz White, Ana Miguel Pedro, Dariusz Joński, Davor Ivo Stier, Tomas Tobé, Reinhold Lopatka, Liudas Mažylis, Ingeborg Ter Laak, Isabel Wiseler-Lima, Mirosława Nykiel, Wouter Beke, Luděk Niedermayer, Vangelis Meimarakis, Milan Zver, Tomáš Zdechovský, Danuše Nerudová, Miriam Lexmann, Ondřej Kolář, Jan Farský, Loránt Vincze, Jessica Polfjärd, Andrey Kovatchev, Ewa Kopacz, Matej Tonin, Inese Vaidere
    on behalf of the PPE Group

    on the return of Ukrainian children forcibly transferred and deported by Russia (2025/2691(RSP)) (B10-0258/2025)
    Adam Bielan, Mariusz Kamiński, Małgorzata Gosiewska, Sebastian Tynkkynen, Michał Dworczyk, Veronika Vrecionová, Ondřej Krutílek, Jaak Madison, Alexandr Vondra, Arkadiusz Mularczyk, Bogdan Rzońca, Roberts Zīle, Ivaylo Valchev, Joachim Stanisław Brudziński, Assita Kanko, Aurelijus Veryga, Jadwiga Wiśniewska, Rihards Kols, Maciej Wąsik, Marlena Maląg, Charlie Weimers, Cristian Terheş
    on behalf of the ECR Group

    Violations of religious freedom in Tibet

    The following Members or political groups had requested that a debate be held, in accordance with Rule 150, on the following motions for resolutions:

    on the violations of religious freedom in Tibet (2025/2692(RSP)) (B10-0248/2025)
    Ville Niinistö, Catarina Vieira, Maria Ohisalo, Erik Marquardt, Nicolae Ştefănuță, Mounir Satouri, Leoluca Orlando
    on behalf of the Verts/ALE Group

    on the violations of religious freedom in Tibet (2025/2692(RSP)) (B10-0251/2025)
    Yannis Maniatis, Francisco Assis, Hannes Heide
    on behalf of the S&D Group

    on the violations of religious freedom in Tibet (2025/2692(RSP)) (B10-0253/2025)
    Hermann Tertsch, Jorge Martín Frías, Jaroslav Bžoch, Susanna Ceccardi
    on behalf of the PfE Group

    on the violations of religious freedom in Tibet (2025/2692(RSP)) (B10-0254/2025)
    Engin Eroglu, Oihane Agirregoitia Martínez, Petras Auštrevičius, Malik Azmani, Dan Barna, Helmut Brandstätter, Benoit Cassart, Olivier Chastel, Bernard Guetta, Svenja Hahn, Ľubica Karvašová, Moritz Körner, Ilhan Kyuchyuk, Nathalie Loiseau, Karin Karlsbro, Jan-Christoph Oetjen, Marie-Agnes Strack-Zimmermann, Lucia Yar, Dainius Žalimas
    on behalf of the Renew Group

    on the violations of religious freedom in Tibet (2025/2692(RSP)) (B10-0256/2025)
    Sebastião Bugalho, Danuše Nerudová, Michael Gahler, Antonio López-Istúriz White, Ana Miguel Pedro, Davor Ivo Stier, Tomas Tobé, Reinhold Lopatka, Liudas Mažylis, Ingeborg Ter Laak, Isabel Wiseler-Lima, Mirosława Nykiel, Wouter Beke, Luděk Niedermayer, Vangelis Meimarakis, Milan Zver, Tomáš Zdechovský, Miriam Lexmann, Ondřej Kolář, Jan Farský, Loránt Vincze, Jessica Polfjärd, Andrey Kovatchev, Inese Vaidere
    on behalf of the PPE Group

    on the violations of religious freedom in Tibet (2025/2692(RSP)) (B10-0259/2025)
    Adam Bielan, Mariusz Kamiński, Waldemar Tomaszewski, Alberico Gambino, Sebastian Tynkkynen, Carlo Fidanza, Małgorzata Gosiewska, Ondřej Krutílek, Veronika Vrecionová, Assita Kanko, Michał Dworczyk, Arkadiusz Mularczyk, Bogdan Rzońca, Alexandr Vondra, Joachim Stanisław Brudziński, Jadwiga Wiśniewska, Maciej Wąsik, Marlena Maląg
    on behalf of the ECR Group


    II. Delegated acts (Rule 114(2))

    Draft delegated acts forwarded to Parliament

    – Commission Delegated Regulation supplementing Regulation (EU) 2023/2631 of the European Parliament and of the Council by establishing the content, methodologies, and presentation of the information to be voluntarily disclosed by issuers of bonds marketed as environmentally sustainable or of sustainability-linked bonds in the templates for periodic post-issuance disclosures (C(2025)00005 – 2025/2674(DEA))

    Deadline for raising objections: 3 months from the date of receipt of 16 April 2025

    referred to committee responsible: ECON

    – Commission Delegated Regulation supplementing Regulation (EU) 2023/2631of the European Parliament and of the Council by specifying rules of procedure for the exercise of the power to impose fines or periodic penalty payments by the European Securities and Markets Authority on external reviewers (C(2025)00006 – 2025/2676(DEA))

    Deadline for raising objections: 3 months from the date of receipt of 16 April 2025

    referred to committee responsible: ECON

    – Commission Delegated Regulation supplementing Regulation (EU) 2023/2631 of the European Parliament and of the Council by specifying the type of fees to be charged by ESMA to external reviewers of European Green Bonds, the matters in respect of which fees are due, the amount of the fees, and the manner in which those fees are to be paid (C(2025)00007 – 2025/2677(DEA))

    Deadline for raising objections: 3 months from the date of receipt of 16 April 2025

    referred to committee responsible: ECON

    – Commission Delegated Regulation supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the general conditions for the functioning of supervisory colleges, and repealing Commission Delegated Regulation (EU) 2016/98 (C(2025)00701 – 2025/2678(DEA))

    Deadline for raising objections: 3 months from the date of receipt of 23 April 2025

    referred to committee responsible: ECON

    – Commission Delegated Regulation amending Regulation (EU) 2023/1804 of the European Parliament and of the Council as regards additional data types on alternative fuels infrastructure (C(2025)01912 – 2025/2661(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 2 April 2025

    referred to committee responsible: TRAN

    – Commission Delegated Regulation supplementing Regulation (EU) 2023/1804 of the European Parliament and of the Council as regards common technical requirements for a common application programme interface (C(2025)01913 – 2025/2659(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 2 April 2025

    referred to committee responsible: TRAN

    – Commission Delegated Regulation amending Regulation (EC) No 1272/2008 of the European Parliament and of the Council as regards the harmonised classification and labelling of certain substances (C(2025)01916 – 2025/2660(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 2 April 2025

    referred to committee responsible: ENVI
    opinion: IMCO

    – Commission Delegated Regulation amending Regulation (EU) 2023/1804 of the European Parliament and of the Council as regards standards for wireless recharging, electric road system, vehicle-to-grid communication and hydrogen supply for road transport vehicles (C(2025)01918 – 2025/2662(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 2 April 2025

    referred to committee responsible: TRAN

    – Commission Delegated Regulation amending Delegated Regulation (EU) 2015/68 and Delegated Regulation (EU) 2015/208 with regard to vehicle braking requirements and to vehicle functional safety requirements for agricultural and forestry vehicles (C(2025)01944 – 2025/2663(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 3 April 2025

    referred to committee responsible: IMCO

    – Commission Delegated Regulation amending Delegated Regulation (EU) 2023/205 as regards the European Maritime Single Window environment data set (C(2025)02021 – 2025/2667(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 7 April 2025

    referred to committee responsible: TRAN

    – Commission Delegated Regulation supplementing Regulation (EU) No 305/2011 of the European Parliament and of the Council by establishing threshold levels and classes of performance for permanent anchor devices and safety hooks (C(2025)02119 – 2025/2670(DEA))

    Deadline for raising objections: 3 months from the date of receipt of 9 April 2025

    referred to committee responsible: IMCO

    – Commission Delegated Directive amending Directive 2005/36/EC of the European Parliament and of the Council as regards the minimum training requirements for the profession of veterinary surgeon (C(2025)02128 – 2025/2671(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 10 April 2025

    referred to committee responsible: IMCO

    – Commission Delegated Regulation amending Regulation (EU) 2019/1021 of the European Parliament and of the Council as regards perfluorooctane sulfonic acid and its derivatives (C(2025)02189 – 2025/2672(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 14 April 2025

    referred to committee responsible: ENVI

    – Commission delegated decision on the unilateral inclusion of sectors by Finland in the emissions trading system within the Union for buildings, road transport and additional sectors pursuant to Article 30j of Directive 2003/87/EC of the European Parliament and of the Council (C(2025)02232 – 2025/2673(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 15 April 2025

    referred to committee responsible: ENVI
    opinion: ITRE

    – Commission Delegated Regulation amending Delegated Regulation (EU) 2023/2197 as regards the date of application (C(2025)02258 – 2025/2675(DEA))

    Deadline for raising objections: 3 months from the date of receipt of 16 April 2025

    referred to committee responsible: SANT

    – Commission Delegated Regulation supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards specifying the conditions and indicators that the EBA is to use to determine whether extraordinary circumstances in the sense of Article 325az(5) and Article 325bf(6) of that Regulation have occurred (C(2025)02287 – 2025/2679(DEA))

    Deadline for raising objections: 3 months from the date of receipt of 23 April 2025

    referred to committee responsible: ECON

    – Commission Delegated Regulation supplementing Regulation (EU) 2023/1114 of the European Parliament and of the Council with regard to regulatory technical standards specifying the arrangements, systems and procedures to prevent, detect and report market abuse, the templates to be used for reporting suspected market abuse, and the coordination procedures between the competent authorities for the detection and sanctioning of market abuse in cross-border market abuse situations (C(2025)02480 – 2025/2684(DEA))

    Deadline for raising objections: 3 months from the date of receipt of 29 April 2025

    referred to committee responsible: ECON

    – Commission Delegated Regulation amending Annex I to Regulation (EU) 2019/1021 of the European Parliament and of the Council as regards perfluorooctanoic acid (PFOA), its salts and PFOA-related compounds (C(2025)02566 – 2025/2701(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 5 May 2025

    referred to committee responsible: ENVI

    – Commission Delegated Regulation (EU)…/ … amending Annex I to Regulation (EU) 2019/1021 of the European Parliament and of the Council as regards UV-328 (C(2025)02567 – 2025/2703(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 5 May 2025

    referred to committee responsible: ENVI

    – Commission Delegated Regulation amending Delegated Regulation (EU) 2024/2910 on the implementation of the Union’s international obligations, as referred to in Article 15(2) of Regulation (EU) No 1380/2013 of the European Parliament and of the Council, under the General Fisheries Commission for the Mediterranean (C(2025)02570 – 2025/2702(DEA))

    Deadline for raising objections: 2 months from the date of receipt of 5 May 2025

    referred to committee responsible: PECH


    III. Implementing measures (Rule 115)

    Draft implementing measures falling under the regulatory procedure with scrutiny forwarded to Parliament

    – Commission Regulation correcting certain language versions of Regulation (EU) No 142/2011 implementing Regulation (EC) No 1069/2009 of the European Parliament and of the Council laying down health rules as regards animal by-products and derived products not intended for human consumption and implementing Council Directive 97/78/EC as regards certain samples and items exempt from veterinary checks at the border under that Directive (D010438/05 – 2025/2693(RPS) – deadline: 22 July 2025)
    referred to committee responsible: ENVI
    opinion: AGRI

    – Commission Regulation amending Annex II to Regulation (EC) No 396/2005 of the European Parliament and of the Council as regards maximum residue levels for acetamiprid in or on certain products (D102375/03 – 2025/2664(RPS) – deadline: 4 June 2025)
    referred to committee responsible: ENVI

    – Commission Regulation amending Annex III to Regulation (EC) No 1333/2008 of the European Parliament and of the Council as regards the use of polyvinylpolypyrrolidone (E 1202) as a carrier in colour tablets for the decorative colouring of poultry eggshells (D106245/02 – 2025/2680(RPS) – deadline: 29 June 2025)
    referred to committee responsible: ENVI

    – Commission Regulation amending Regulation (EU) 2023/915 as regards maximum levels of inorganic arsenic in fish and other seafood (D106246/02 – 2025/2681(RPS) – deadline: 29 July 2025)
    referred to committee responsible: ENVI


    IV. Documents received

    The following documents had been received from other institutions:

    – Proposal for transfer of appropriations DEC 05/2025 – Section III – Commission (N10-0013/2025 – C10-0065/2025 – 2025/2078(GBD))
    referred to committee responsible: BUDG

    – Proposal for transfer of appropriations INF 1/2025 – Section VI – Economic and Social Committee (N10-0014/2025 – C10-0078/2025 – 2025/2091(GBD))
    referred to committee responsible: BUDG

    – Proposal for transfer of appropriations No. 2/2025 – Section IX – European Data Protection Supervisor (N10-0015/2025 – C10-0079/2025 – 2025/2092(GBD))
    referred to committee responsible: BUDG


    V. Transfers of appropriations and budgetary decisions

    In accordance with Article 31(1) of the Financial Regulation, the Committee on Budgets had decided to approve the European Commission’s transfers of appropriations DEC 03/2025 and DEC 04/2025 – Section III – Commission.

    In accordance with Article 31(6) of the Financial Regulation, the Council of the European Union had decided to approve the European Commission’s transfers of appropriations DEC 03/2025 and DEC 04/2025 – Section III – Commission.


    ATTENDANCE REGISTER

    Present:

    Aaltola Mika, Abadía Jover Maravillas, Adamowicz Magdalena, Aftias Georgios, Agirregoitia Martínez Oihane, Agius Peter, Agius Saliba Alex, Alexandraki Galato, Allione Grégory, Al-Sahlani Abir, Anadiotis Nikolaos, Anderson Christine, Andersson Li, Andresen Rasmus, Andrews Barry, Andriukaitis Vytenis Povilas, Androuët Mathilde, Angel Marc, Annemans Gerolf, Annunziata Lucia, Antoci Giuseppe, Arias Echeverría Pablo, Arimont Pascal, Arłukowicz Bartosz, Arnaoutoglou Sakis, Arndt Anja, Arvanitis Konstantinos, Asens Llodrà Jaume, Assis Francisco, Attard Daniel, Aubry Manon, Auštrevičius Petras, Axinia Adrian-George, Azmani Malik, Bajada Thomas, Baljeu Jeannette, Ballarín Cereza Laura, Bardella Jordan, Barna Dan, Barrena Arza Pernando, Bartulica Stephen Nikola, Bartůšek Nikola, Bay Nicolas, Bay Christophe, Beke Wouter, Beleris Fredis, Bellamy François-Xavier, Benea Dragoş, Benifei Brando, Benjumea Benjumea Isabel, Beňová Monika, Berendsen Tom, Berger Stefan, Berlato Sergio, Bernhuber Alexander, Biedroń Robert, Bielan Adam, Bischoff Gabriele, Blaha Ľuboš, Blinkevičiūtė Vilija, Blom Rachel, Bloss Michael, Bocheński Tobiasz, Boeselager Damian, Bogdan Ioan-Rareş, Bonaccini Stefano, Bonte Barbara, Borchia Paolo, Borrás Pabón Mireia, Borvendég Zsuzsanna, Borzan Biljana, Bosanac Gordan, Boßdorf Irmhild, Bosse Stine, Botenga Marc, Boyer Gilles, Boylan Lynn, Brandstätter Helmut, Brasier-Clain Marie-Luce, Bricmont Saskia, Brnjac Nikolina, Brudziński Joachim Stanisław, Bryłka Anna, Buchheit Markus, Buczek Tomasz, Buda Daniel, Buda Waldemar, Budka Borys, Bugalho Sebastião, Buła Andrzej, Bullmann Udo, Burkhardt Delara, Buxadé Villalba Jorge, Bystron Petr, Bžoch Jaroslav, Camara Mélissa, Canfin Pascal, Carberry Nina, Cârciu Gheorghe, Carême Damien, Casa David, Caspary Daniel, Cassart Benoit, Castillo Laurent, del Castillo Vera Pilar, Cavazzini Anna, Cavedagna Stefano, Cepeda José, Ceulemans Estelle, Chahim Mohammed, Chaibi Leila, Chastel Olivier, Chinnici Caterina, Christensen Asger, Ciccioli Carlo, Cifrová Ostrihoňová Veronika, Ciriani Alessandro, Cisint Anna Maria, Clausen Per, Clergeau Christophe, Cormand David, Corrado Annalisa, Costanzo Vivien, Cotrim De Figueiredo João, Cowen Barry, Cremer Tobias, Crespo Díaz Carmen, Cristea Andi, Crosetto Giovanni, Cunha Paulo, Dahl Henrik, Danielsson Johan, Dauchy Marie, Dávid Dóra, David Ivan, Decaro Antonio, de la Hoz Quintano Raúl, Della Valle Danilo, Deloge Valérie, De Masi Fabio, De Meo Salvatore, Demirel Özlem, Deutsch Tamás, Devaux Valérie, Dibrani Adnan, Diepeveen Ton, Dieringer Elisabeth, Dîncu Vasile, Di Rupo Elio, Disdier Mélanie, Dobrev Klára, Doherty Regina, Doleschal Christian, Dömötör Csaba, Do Nascimento Cabral Paulo, Donazzan Elena, Dorfmann Herbert, Dostalova Klara, Dostál Ondřej, Droese Siegbert Frank, Dworczyk Michał, Ecke Matthias, Ehler Christian, Ehlers Marieke, Eriksson Sofie, Erixon Dick, Eroglu Engin, Estaràs Ferragut Rosa, Everding Sebastian, Falcă Gheorghe, Falcone Marco, Farantouris Nikolas, Farreng Laurence, Farský Jan, Ferber Markus, Ferenc Viktória, Fernández Jonás, Fidanza Carlo, Fiocchi Pietro, Firea Gabriela, Firmenich Ruth, Fita Claire, Fourlas Loucas, Fourreau Emma, Fragkos Emmanouil, Freund Daniel, Frigout Anne-Sophie, Fritzon Heléne, Froelich Tomasz, Fuglsang Niels, Funchion Kathleen, Furet Angéline, Furore Mario, Gahler Michael, Gál Kinga, Galán Estrella, Gálvez Lina, Gambino Alberico, García Hermida-Van Der Walle Raquel, Garraud Jean-Paul, Gasiuk-Pihowicz Kamila, Geadi Geadis, Gedin Hanna, Geese Alexandra, Geier Jens, Geisel Thomas, Gemma Chiara, Georgiou Giorgos, Gerbrandy Gerben-Jan, Germain Jean-Marc, Gerzsenyi Gabriella, Geuking Niels, Gieseke Jens, Giménez Larraz Borja, Girauta Vidal Juan Carlos, Glavak Sunčana, Glück Andreas, Glucksmann Raphaël, Goerens Charles, Gomart Christophe, Gomes Isilda, Gómez López Sandra, Gonçalves Bruno, Gonçalves Sérgio, González Casares Nicolás, González Pons Esteban, Gori Giorgio, Gosiewska Małgorzata, Gotink Dirk, Gozi Sandro, Grapini Maria, Gražulis Petras, Grims Branko, Griset Catherine, Gronkiewicz-Waltz Hanna, Groothuis Bart, Grossmann Elisabeth, Grudler Christophe, Gualmini Elisabetta, Guarda Cristina, Győri Enikő, Gyürk András, Hadjipantela Michalis, Hahn Svenja, Haider Roman, Halicki Andrzej, Hansen Niels Flemming, Hauser Gerald, Häusling Martin, Hava Mircea-Gheorghe, Heide Hannes, Heinäluoma Eero, Henriksson Anna-Maja, Herbst Niclas, Herranz García Esther, Hetman Krzysztof, Hohlmeier Monika, Hojsík Martin, Holmgren Pär, Hölvényi György, Homs Ginel Alicia, Humberto Sérgio, Imart Céline, Incir Evin, Inselvini Paolo, Iovanovici Şoşoacă Diana, Jamet France, Jarubas Adam, Jerković Romana, Jongen Marc, Joński Dariusz, Joron Virginie, Jouvet Pierre, Joveva Irena, Juknevičienė Rasa, Junco García Nora, Jungbluth Alexander, Kabilov Taner, Kalfon François, Kaliňák Erik, Kaljurand Marina, Kalniete Sandra, Kamiński Mariusz, Karlsbro Karin, Kartheiser Fernand, Karvašová Ľubica, Katainen Elsi, Kefalogiannis Emmanouil, Kelleher Billy, Keller Fabienne, Kelly Seán, Kennes Rudi, Khan Mary, Kircher Sophia, Knafo Sarah, Knotek Ondřej, Kobosko Michał, Köhler Stefan, Kohut Łukasz, Kokalari Arba, Kolář Ondřej, Kols Rihards, Konečná Kateřina, Kopacz Ewa, Körner Moritz, Kountoura Elena, Kovařík Ondřej, Kovatchev Andrey, Krištopans Vilis, Kruis Sebastian, Krutílek Ondřej, Kubín Tomáš, Kuhnke Alice, Kulja András Tivadar, Kulmuni Katri, Kyllönen Merja, Kyuchyuk Ilhan, Lakos Eszter, Lalucq Aurore, Lange Bernd, Langensiepen Katrin, Laššáková Judita, László András, Latinopoulou Afroditi, Laurent Murielle, Laureti Camilla, Laykova Rada, Lazarov Ilia, Le Callennec Isabelle, Leggeri Fabrice, Lenaers Jeroen, Leonardelli Julien, Lewandowski Janusz, Lexmann Miriam, Liese Peter, Loiseau Nathalie, Løkkegaard Morten, Lopatka Reinhold, López Javi, López Aguilar Juan Fernando, López-Istúriz White Antonio, Lövin Isabella, Lucano Mimmo, Luena César, Łukacijewska Elżbieta Katarzyna, Lupo Giuseppe, McAllister David, Madison Jaak, Maestre Cristina, Magoni Lara, Magyar Péter, Maij Marit, Maląg Marlena, Manda Claudiu, Mandl Lukas, Maniatis Yannis, Mantovani Mario, Maran Pierfrancesco, Marczułajtis-Walczak Jagna, Maréchal Marion, Mariani Thierry, Marino Ignazio Roberto, Marquardt Erik, Martín Frías Jorge, Martusciello Fulvio, Marzà Ibáñez Vicent, Mato Gabriel, Mavrides Costas, Maydell Eva, Mayer Georg, Mazurek Milan, Mažylis Liudas, McNamara Michael, Mebarek Nora, Meimarakis Vangelis, Meleti Eleonora, Mendes Ana Catarina, Mendia Idoia, Mertens Verena, Mesure Marina, Metsola Roberta, Metz Tilly, Mikser Sven, Milazzo Giuseppe, Millán Mon Francisco José, Minchev Nikola, Miranda Paz Ana, Molnár Csaba, Montero Irene, Montserrat Dolors, Morace Carolina, Morano Nadine, Moratti Letizia, Moreira de Sá Tiago, Moreno Sánchez Javier, Moretti Alessandra, Motreanu Dan-Ştefan, Mularczyk Arkadiusz, Müller Piotr, Mullooly Ciaran, Mureşan Siegfried, Muşoiu Ştefan, Nagyová Jana, Navarrete Rojas Fernando, Negrescu Victor, Nemec Matjaž, Nerudová Danuše, Nesci Denis, Neuhoff Hans, Neumann Hannah, Nevado del Campo Elena, Nica Dan, Niebler Angelika, Niedermayer Luděk, Niinistö Ville, Nikolaou-Alavanos Lefteris, Nikolic Aleksandar, Ní Mhurchú Cynthia, Noichl Maria, Nordqvist Rasmus, Novakov Andrey, Nykiel Mirosława, Obajtek Daniel, Ódor Ľudovít, Oetjen Jan-Christoph, Ohisalo Maria, Olivier Philippe, Omarjee Younous, Ondruš Branislav, Ó Ríordáin Aodhán, Orlando Leoluca, Ozdoba Jacek, Paet Urmas, Pajín Leire, Palmisano Valentina, Panayiotou Fidias, Papadakis Kostas, Papandreou Nikos, Pappas Nikos, Pascual de la Parte Nicolás, Patriciello Aldo, Paulus Jutta, Pedro Ana Miguel, Pedulla’ Gaetano, Pellerin-Carlin Thomas, Peltier Guillaume, Penkova Tsvetelina, Pennelle Gilles, Pereira Lídia, Peter-Hansen Kira Marie, Petrov Hristo, Picaro Michele, Picierno Pina, Picula Tonino, Piera Pascale, Pietikäinen Sirpa, Pimpie Pierre, Piperea Gheorghe, de la Pisa Carrión Margarita, Pokorná Jermanová Jaroslava, Polato Daniele, Polfjärd Jessica, Popescu Virgil-Daniel, Pozņaks Reinis, Prebilič Vladimir, Princi Giusi, Protas Jacek, Pürner Friedrich, Rackete Carola, Radev Emil, Radtke Dennis, Rafowicz Emma, Ratas Jüri, Razza Ruggero, Rechagneux Julie, Regner Evelyn, Repasi René, Repp Sabrina, Ressler Karlo, Reuten Thijs, Riba i Giner Diana, Ricci Matteo, Ridel Chloé, Riehl Nela, Ripa Manuela, Rodrigues André, Ros Sempere Marcos, Roth Neveďalová Katarína, Rougé André, Ruissen Bert-Jan, Ruotolo Sandro, Rzońca Bogdan, Saeidi Arash, Salini Massimiliano, Salis Ilaria, Salla Aura, Sánchez Amor Nacho, Sanchez Julien, Sancho Murillo Elena, Saramo Jussi, Sardone Silvia, Sargiacomo Eric, Satouri Mounir, Saudargas Paulius, Sbai Majdouline, Sberna Antonella, Schaldemose Christel, Schaller-Baross Ernő, Schenk Oliver, Scheuring-Wielgus Joanna, Schieder Andreas, Schilling Lena, Schneider Christine, Schnurrbusch Volker, Schwab Andreas, Scuderi Benedetta, Seekatz Ralf, Sell Alexander, Serrano Sierra Rosa, Sidl Günther, Sienkiewicz Bartłomiej, Sieper Lukas, Simon Sven, Singer Christine, Sinkevičius Virginijus, Sippel Birgit, Sjöstedt Jonas, Śmiszek Krzysztof, Smith Anthony, Smit Sander, Sokol Tomislav, Solier Diego, Solís Pérez Susana, Sommen Liesbet, Sonneborn Martin, Sorel Malika, Sousa Silva Hélder, Søvndal Villy, Squarta Marco, Staķis Mārtiņš, Stancanelli Raffaele, Ştefănuță Nicolae, Steger Petra, Stier Davor Ivo, Storm Kristoffer, Stöteler Sebastiaan, Stoyanov Stanislav, Strack-Zimmermann Marie-Agnes, Strada Cecilia, Streit Joachim, Strik Tineke, Strolenberg Anna, Sturdza Şerban Dimitrie, Stürgkh Anna, Sypniewski Marcin, Szczerba Michał, Szekeres Pál, Szydło Beata, Tamburrano Dario, Tânger Corrêa António, Tarczyński Dominik, Tarquinio Marco, Tarr Zoltán, Târziu Claudiu-Richard, Tavares Carla, Tegethoff Kai, Teodorescu Georgiana, Teodorescu Måwe Alice, Terheş Cristian, Ter Laak Ingeborg, Terras Riho, Tertsch Hermann, Thionnet Pierre-Romain, Timgren Beatrice, Tinagli Irene, Tobback Bruno, Tobé Tomas, Tolassy Rody, Tomac Eugen, Tomašič Zala, Tomaszewski Waldemar, Tomc Romana, Tonin Matej, Toom Jana, Torselli Francesco, Tosi Flavio, Toussaint Marie, Tovaglieri Isabella, Tridico Pasquale, Trochu Laurence, Tsiodras Dimitris, Tudose Mihai, Turek Filip, Tynkkynen Sebastian, Ušakovs Nils, Vaidere Inese, Valchev Ivaylo, Vălean Adina, Valet Matthieu, Van Brempt Kathleen, Van Brug Anouk, van den Berg Brigitte, Vandendriessche Tom, Van Dijck Kris, Van Lanschot Reinier, Van Leeuwen Jessika, Vannacci Roberto, Van Sparrentak Kim, Varaut Alexandre, Vasconcelos Ana, Vasile-Voiculescu Vlad, Vautmans Hilde, Vedrenne Marie-Pierre, Ventola Francesco, Verougstraete Yvan, Veryga Aurelijus, Vicsek Annamária, Vieira Catarina, Vigenin Kristian, Vilimsky Harald, Vincze Loránt, Vind Marianne, Vistisen Anders, Vivaldini Mariateresa, Volgin Petar, von der Schulenburg Michael, Vondra Alexandr, Voss Axel, Vozemberg-Vrionidi Elissavet, Vrecionová Veronika, Vázquez Lázara Adrián, Waitz Thomas, Walsh Maria, Walsmann Marion, Warborn Jörgen, Warnke Jan-Peter, Wąsik Maciej, Wawrykiewicz Michał, Wcisło Marta, Wechsler Andrea, Weimers Charlie, Werbrouck Séverine, Wiesner Emma, Wiezik Michal, Winkler Iuliu, Winzig Angelika, Wiseler-Lima Isabel, Wiśniewska Jadwiga, Wölken Tiemo, Wolters Lara, Yar Lucia, Yon-Courtin Stéphanie, Yoncheva Elena, Zacharia Maria, Zalewska Anna, Žalimas Dainius, Zan Alessandro, Zarzalejos Javier, Zdechovský Tomáš, Zdrojewski Bogdan Andrzej, Zijlstra Auke, Zīle Roberts, Zingaretti Nicola, Złotowski Kosma, Zver Milan

    Excused:

    Verheyen Sabine

    MIL OSI Europe News

  • MIL-OSI: Brookfield Wealth Solutions Announces First Quarter Results and Declares Quarterly Distribution

    Source: GlobeNewswire (MIL-OSI)

    BROOKFIELD, NEWS, May 08, 2025 (GLOBE NEWSWIRE) — Brookfield Wealth Solutions (NYSE, TSX: BNT) today announced financial results for the three months ended March 31, 2025.

    Sachin Shah, CEO of Brookfield Wealth Solutions, stated, “Our business is off to a strong start in 2025. We have entered the U.K. market and begun offering new products that expand our asset base while maintaining our fundamental objective of generating high-quality earnings and durable risk-adjusted returns within our business.”

    Unaudited
    As of and for the periods ended March 31
    (US$ millions, except per share amounts)
    Three Months Ended
      2025       2024
    Total assets $ 141,612     $ 63,113
    Distributable operating earnings1   437       279
    Net income (loss)   (282 )     337
    Net income per each class A share $ 0.09     $ 0.08

    1. See Non-GAAP and Performance Measures on page 6 and a reconciliation from net income on page 5.

    First Quarter Highlights

    • Launched our U.K. pension risk transfer business under Blumont Annuity UK in late March, following a comprehensive authorization process and expect to be active in the market in 2025
    • Deployed $3 billion into Brookfield originated strategies across our investment portfolio at returns greater than 8%
    • Completed our first funding agreement-backed note (“FABN”) issuance at American National for $500 million
    • Originated $4 billion of annuity sales during the quarter across our retail, PRT and FABN channels
    • Our Property and Casualty float remained stable at approximately $8 billion, providing us with investment flexibility and risk diversification

    Operating Update
    We recognized $437 million of distributable operating earnings (“DOE”) for the three months ended March 31, 2025, compared to $279 million in the prior year period. The increase in earnings for the current period reflects contributions from AEL, which we acquired in May 2024, as well as higher net investment income resulting from progress made in repositioning assets into higher yielding investment strategies.

    We recorded a net loss of $282 million for the three months ended March 31, 2025, compared to net income of $337 million in the prior year period. The net loss in the current period is primarily the result of unrealized movements on reserves due to interest rate and equity market movements, which more than offset our strong operating performance. Net income in the prior year period resulted from our DOE and favorable mark-to-market on derivatives.

    Today, we are in a strong liquidity position, with approximately $25 billion of cash and short-term liquid investments across our investment portfolios, and another $22 billion of long-term liquid investments. These liquid assets position us well to mitigate current market volatility and support the ongoing rotation of our portfolio into higher yielding investment strategies.

    Regular Distribution Declaration
    The Board declared a quarterly return of capital of $0.09 per class A share and class B share payable on June 30, 2025 to shareholders of record as at the close of business on June 13, 2025. This distribution is identical in amount per share and has the same payment date as the quarterly distribution announced today by Brookfield Corporation on the Brookfield class A shares.

    Brookfield Corporation Operating Results
    An investment in class A shares of our company is intended to be, as nearly as practicable, functionally and economically, equivalent to an investment in the Brookfield class A shares. A summary of Brookfield Corporation’s first quarter operating results is provided below:

    Unaudited
    For the periods ended March 31
    (US$ millions, except per share amounts)
    Three Months Ended   Last Twelve Months Ended
      2025     2024     2025     2024
    Net income of consolidated business1 $ 215   $ 519   $ 1,549   $ 5,200
    Net income attributable to Brookfield shareholders2   73     102     612     1,112
    Distributable earnings before realizations3   1,301     1,001     5,171     4,279
    – Per Brookfield class A share3   0.82     0.63     3.26     2.70
    Distributable earnings3   1,549     1,216     6,607     4,865
    – Per Brookfield class A share3   0.98     0.77     4.17     3.07

    1. Consolidated basis – includes amounts attributable to non-controlling interests.
    2. Excludes amounts attributable to non-controlling interests.
    3. See Reconciliation of Net Income to Distributable Earnings on page 5 and Non-IFRS and Performance Measures section on page 8 of Brookfield Corporation’s press release dated May 8, 2025.

    Brookfield Corporation net income above is presented under IFRS. Given the economic equivalence, we expect that the market price of the class A shares of our company will be impacted significantly by the market price of the Brookfield class A shares and the business performance of Brookfield as a whole. In addition to carefully considering the disclosure made in this news release in its entirety, shareholders are strongly encouraged to carefully review Brookfield Corporation’s letter to shareholders, supplemental information and its other continuous disclosure filings. Investors, analysts and other interested parties can access Brookfield Corporation’s disclosure on its website under the Reports & Filings section at bn.brookfield.com.

    CONSOLIDATED BALANCE SHEETS

               
    Unaudited   March 31     December 31
    (US$ millions)     2025       2024
    Assets          
               
    Insurance invested assets          
    Cash, cash equivalents and short-term investments $ 16,686     $ 16,643  
    Investments   90,184       88,566  
    Reinsurance funds withheld   1,492       1,517  
    Accrued investment income   841   109,203     860   107,586
    Deferred policy acquisition costs     10,848       10,696
    Reinsurance recoverables and deposit assets     12,957       13,195
          133,008       131,477
               
    Other assets     8,604       8,476
    Total assets     141,612       139,953
               
    Liabilities and equity          
               
    Policy and contract claims     7,588       7,659
    Future policy benefits     14,582       14,088
    Policyholders’ account balances     84,606       83,079
    Deposit liabilities     1,483       1,502
    Market risk benefits     4,066       3,655
    Unearned premium reserve     1,674       1,843
    Funds withheld for reinsurance liabilities     3,266       3,392
          117,265       115,218
               
    Corporate borrowings     1,004       1,022
    Subsidiary borrowings     3,332       3,329
    Other liabilities     7,001       7,308
               
    Non-controlling interest   771       850  
    Class A and class B   1,469       1,470  
    Class C   10,770   13,010     10,756   13,076
    Total liabilities and equity   $ 141,612     $ 139,953


    CONSOLIDATED STATEMENTS OF OPERATIONS

    Unaudited
    For the periods ended March 31
    US$ millions
    Three Months Ended
      2025       2024  
    Net premiums and other policy revenue $ 1,301     $ 1,643  
    Net investment income, including funds withheld   1,429       670  
    Net investment gains (losses), including funds withheld   (112 )     172  
    Total revenues   2,618       2,485  
           
    Benefits and claims paid on insurance contracts   (1,107 )     (1,414 )
    Interest sensitive contract benefits   (524 )     (185 )
    Amortization of deferred policy acquisition costs   (339 )     (225 )
    Change in fair value of insurance-related derivatives and embedded derivatives   (200 )     44  
    Change in fair value of market risk benefits   (361 )     (31 )
    Other reinsurance expenses   (1 )     (7 )
    Operating expenses   (382 )     (233 )
    Interest expense   (73 )     (72 )
    Total benefits and expenses   (2,987 )     (2,123 )
    Net income (loss) before income taxes   (369 )     362  
    Income tax recovery (expense)   87       (25 )
    Net income (loss) $ (282 )   $ 337  
           
    Attributable to:      
    Class A and class B shareholders1 $ 4     $ 3  
    Class C shareholder   (330 )     332  
    Non-controlling interest   44       2  
      $ (282 )   $ 337  

    1. Class A shares receive distributions at the same amount per share as the cash dividends paid on each Brookfield class A share.


    SUMMARIZED FINANCIAL RESULTS

    RECONCILIATION OF NET INCOME TO DISTRIBUTABLE OPERATING EARNINGS

    Unaudited
    For the periods ended March 31
    US$ millions
    Three Months Ended
      2025       2024  
    Net income (loss) $ (282 )   $ 337  
    Unrealized net investment losses (gains), including funds withheld   112       (172 )
    Mark-to-market losses (gains) on insurance contracts and other net assets   685       65  
        515       230  
    Deferred income tax expense (recovery)   (183 )     15  
    Transaction costs   41       12  
    Depreciation   64       22  
    Distributable operating earnings1 $ 437     $ 279  

    1. Non-GAAP measure – see Non-GAAP and Performance Measures on page 6.

    Additional Information

    The statements contained herein are based primarily on information that has been extracted from our financial statements for the quarter ended March 31, 2025, which have been prepared using generally accepted accounting principles in the United States of America (“US GAAP” or “GAAP”).

    Brookfield Wealth Solutions’ Board of Directors have reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.

    Information on our distributions can be found on our website under Stock & Distributions/Distribution History.

    Brookfield Wealth Solutions Ltd. (NYSE, TSX: BNT) is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Each class A exchangeable limited voting share of Brookfield Wealth Solutions is exchangeable on a one-for-one basis with a class A limited voting share of Brookfield Corporation (NYSE, TSX: BN). For more information, please visit our website at bnt.brookfield.com or contact:

    Non-GAAP and Performance Measures

    This news release and accompanying financial statements are based on US GAAP, unless otherwise noted.

    We make reference to Distributable operating earnings. We define distributable operating earnings as net income after applicable taxes excluding the impact of depreciation and amortization, deferred income taxes related to basis and other changes, and breakage and transaction costs, as well as certain investment and insurance reserve gains and losses, including gains and losses related to asset and liability matching strategies, non-operating adjustments related to changes in cash flow assumptions for future policy benefits, and change in market risk benefits, and is inclusive of returns on equity invested in certain variable interest entities and our share of adjusted earnings from our investments in certain associates. Distributable operating earnings is a measure of operating performance. We use distributable operating earnings to assess our operating results.

    We provide additional information on key terms and non-GAAP measures in our filings available at bnt.brookfield.com.

    Notice to Readers

    Brookfield Wealth Solutions Ltd. (“Brookfield Wealth Solutions” or “our” or “we”) is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement.

    This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws, “forward-looking statements” within the meaning of Canadian provincial securities laws, “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, and “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, assumptions and expectations regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Wealth Solutions, Brookfield Corporation and their respective subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. Particularly, statements regarding international expansion plans and future capital markets initiatives, including statements relating to the redeployment of capital into higher yielding investments constitute forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “foresees,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” In particular, the forward-looking statements contained in this news release include statements referring to the growth of our business, international expansion, investment opportunities and expected future deployment of capital and financial earnings. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable estimates, assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Wealth Solutions or Brookfield Corporation to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

    Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) investment returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, including but not limited to, earthquakes, hurricanes, epidemics and pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

    We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the foregoing risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. Except as required by law, Brookfield Wealth Solutions undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

    Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to the historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of investment opportunities or otherwise).

    Certain of the information contained herein is based on or derived from information provided by independent third-party sources. While Brookfield Wealth Solutions believes that such information is accurate as of the date it was produced and that the sources from which such information has been obtained are reliable, Brookfield Wealth Solutions does not make any assurance, representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of any of the information or the assumptions on which such information is based, contained herein, including but not limited to, information obtained from third parties, and undue reliance should not be put on them.

    The MIL Network

  • MIL-OSI: Talen Energy Reports First Quarter 2025 Results, Affirms and Narrows 2025 Guidance

    Source: GlobeNewswire (MIL-OSI)

    Earnings Release Highlights

    • First quarter GAAP Net Income (Loss) Attributable to Stockholders of $(135) million.
    • First quarter Adjusted EBITDA of $200 million and Adjusted Free Cash Flow of $87 million, ahead of internal estimates.
    • Affirming and narrowing 2025 guidance; 2026 outlook unchanged.
    • Extended the Susquehanna Unit 2 refueling outage to perform incremental maintenance that is expected to improve capacity performance and efficiency.
    • The Federal Energy Regulatory Commission (the “FERC”) approved the terms of the reliability-must-run (“RMR”) settlement agreement between Talen, PJM, and key stakeholders to run units at Brandon Shores and H.A. Wagner generation facilities through May 31, 2029.

    HOUSTON, May 08, 2025 (GLOBE NEWSWIRE) — Talen Energy Corporation (“Talen,” the “Company,” “we,” or “our”) (NASDAQ: TLN), an independent power producer dedicated to powering the future, today reported its first quarter 2025 financial and operating results.

    “We are pleased today to report Talen’s solid start to the year. Our fleet ran well during periods of high demand demonstrating the value of our dispatchable fleet, earning $200 million of Adjusted EBITDA and $87 million of Adjusted Free Cash Flow. We are affirming and narrowing guidance. We remain committed to shareholders and continued to repurchase stock during the first quarter under our share repurchase program,” said Talen President and Chief Executive Officer Mac McFarland.

    McFarland continued, “The FERC approved our RMR settlement agreement, ensuring the units at our Brandon Shores and H.A. Wagner assets continue to support the grid in and around Baltimore. The AWS campus is energized and we are actively executing under this arrangement. We continue to pursue commercial and regulatory solutions for the Susquehanna ISA amendment.”

    Summary of Financial and Operating Results (Unaudited)

        Three Months Ended March 31,
    (Millions of Dollars Unless Otherwise Stated)   2025   2024
    GAAP Net Income (Loss) Attributable to Stockholders   $ (135 )   $ 294  
    Adjusted EBITDA     200       289  
    Adjusted Free Cash Flow     87       194  
    Total Generation (TWh) (a)     9.7       8.1  
    Carbon-Free Generation     46 %     58 %
    OSHA TRIR (b)     0.4       0.3  
    Fleet EFOF (c)     1.2 %     1.9 %

    ______________________

    (a) Total generation is net of station use consumption, where applicable, includes volumes produced by Susquehanna in support of Nautilus operations and includes generation from ERCOT assets for the three months ended March 31, 2024.
    (b) OSHA Total Recordable Incident Rate (“OSHA TRIR”) is the number of recordable incidents x 200,000 / total number of manhours worked. Only includes Talen-operated generation facilities (i.e., excludes Conemaugh and Keystone).
    (c) Fleet Equivalent Forced Outage Factor (“Fleet EFOF”) is the percentage of a given period in which a generating unit is not available due to forced outages and forced de-rates. Represents all generation facilities, including our portion of partially-owned facilities.
       

    For the quarter ended March 31, 2025, we reported GAAP Net Income (Loss) Attributable to Stockholders of $(135) million, Adjusted EBITDA of $200 million and Adjusted Free Cash Flow of $87 million. GAAP Net Income (Loss) Attributable to Stockholders decreased $(429) million compared to prior year, primarily due to the absence of the gain on the sale of the AWS Data Campus, unrealized losses in the nuclear facility decommission trust, and lower realized hedge gains due to higher settled PJM West Hub on-peak prices as a result of colder than normal weather. The decrease in Adjusted EBITDA of $(89) million and Adjusted Free Cash Flow of $(107) million compared to first quarter 2024 was primarily due to lower realized hedge gains.

    Our generation fleet continued to run reliably and safely, with a Fleet EFOF of 1.2% and an OSHA TRIR of 0.4. Total generation was 9.7 TWh, with 46% contributed from carbon-free nuclear generation at our Susquehanna nuclear facility. Also, our PJM gas-fired assets were dispatched more frequently during times of peak load than they were in 2024.

    Affirming and Narrowing 2025 Guidance; 2026 Outlook Unchanged

    (Millions of Dollars)   2025E
    Adjusted EBITDA   $975 – $1,125
    Adjusted Free Cash Flow   $450 – $540
         

    Susquehanna Refueling Outage

    On March 25, 2025, Susquehanna commenced its planned refueling outage on Unit 2. During the outage, we identified incremental maintenance in the non-nuclear portion of the Unit which we expect will lead to operational efficiency. As a prudent operator, we have elected to complete this scope of work while Unit 2 is already in outage and market prices and demand are relatively low. The incremental maintenance investment is expected to add roughly $20 million of additional spend and extend the outage into mid-May. We anticipate the resulting improvements in operational efficiency of Unit 2 will be long-term in nature and pay back the additional costs and lost margin in approximately one-and-a-half years.

    RMR Arrangement

    On May 1, 2025, the FERC approved the terms under which Talen will operate the units at its Brandon Shores and H.A. Wagner generation facilities until May 31, 2029, beyond their scheduled May 31, 2025 retirement dates. Talen, PJM, and a broad coalition of the Maryland Public Service Commission, Maryland customers, and electric utilities reached agreement in January 2025 on the “reliability-must-run” or “RMR” agreement. Under the RMR agreement, Brandon Shores Units 1 and 2 and H.A. Wagner Units 3 and 4 will remain in service and provide power necessary to maintain grid and transmission reliability in and around the City of Baltimore until transmission upgrades to provide reliable power to the area from other sources are complete. Beginning June 1, 2025, we expect to receive $145 million annually for Brandon Shores and $35 million for H.A. Wagner with some performance incentives.

    Share Repurchases

    Since the start of 2024, we have repurchased approximately 14 million shares, or 23% of our outstanding shares, for a total of approximately $2 billion, with $995 million remaining under our share repurchase program through year-end 2026. During the first quarter 2025, we repurchased 452,130 shares of stock for a total of $83 million. All share repurchase amounts exclude transaction costs.

    Balance Sheet and Liquidity

    We are focused on maintaining net leverage below our target of 3.5x net debt-to-Adjusted EBITDA, along with ample liquidity. As of May 2, 2025, we had total available liquidity of approximately $970 million, comprised of $270 million of unrestricted cash and $700 million of available capacity under the revolving credit facility. Our projected net leverage ratio, utilizing the 2025E Adjusted EBITDA midpoint and net debt balance as of May 2, 2025, is approximately 2.6x.

    Update on Hedging Activities

    As of March 31, 2025, including the impact of the Nuclear PTC, we had hedged approximately 95% of our expected generation volumes for 2025, 60% for 2026 and 30% for 2027. The Company’s hedging program is a key component of our comprehensive risk policy and supports the objective of increasing cash flow stability while maintaining upside optionality.

    Earnings Call

    The Company will hold an earnings call on Thursday, May 8, 2025, at 9:00 a.m. EDT (8:00 a.m. CDT). To listen to the earnings call, please register in advance for the webcast here. For participants joining the call via phone, please register here prior to the start time to receive dial-in information. For those unable to participate in the live event, a digital replay of the earnings call will be archived for approximately one year and available on Talen’s Investor Relations website at https://ir.talenenergy.com/news-events/events.

    About Talen

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

    Investor Relations:
    Sergio Castro
    Vice President & Treasurer
    InvestorRelations@talenenergy.com 

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

    Forward Looking Statements

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

     
    TALEN ENERGY CORPORATION AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
         
        Three Months Ended March 31,
    (Millions of Dollars, except share data)   2025   2024
    Capacity revenues   $ 49     $ 45  
    Energy and other revenues     582       572  
    Unrealized gain (loss) on derivative instruments     (241 )     (108 )
    Operating Revenues     390       509  
             
    Fuel and energy purchases     (268 )     (150 )
    Nuclear fuel amortization     (26 )     (35 )
    Unrealized gain (loss) on derivative instruments     59       (27 )
    Energy Expenses             (235 )             (212 )
             
    Operating Expenses        
    Operation, maintenance and development     (146 )     (154 )
    General and administrative     (34 )     (43 )
    Depreciation, amortization and accretion     (74 )     (75 )
    Other operating income (expense), net     (7 )      
    Operating Income (Loss)             (106 )     25  
    Nuclear decommissioning trust funds gain (loss), net     (12 )     75  
    Interest expense and other finance charges     (74 )     (59 )
    Gain (loss) on sale of assets, net     2       324  
    Other non-operating income (expense), net     3       23  
    Income (Loss) Before Income Taxes             (187 )     388  
    Income tax benefit (expense)     52       (69 )
    Net Income (Loss)             (135 )     319  
    Less: Net income (loss) attributable to noncontrolling interest           25  
    Net Income (Loss) Attributable to Stockholders   $         (135 )   $ 294  
    Per Common Share        
    Net Income (Loss) Attributable to Stockholders – Basic   $ (2.94 )   $ 5.00  
    Net Income (Loss) Attributable to Stockholders – Diluted   $ (2.94 )   $ 4.84  
    Weighted-Average Number of Common Shares Outstanding – Basic (in thousands)     45,849       58,807  
    Weighted-Average Number of Common Shares Outstanding – Diluted (in thousands)     45,849       60,716  
    TALEN ENERGY CORPORATION AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
             
    (Millions of Dollars, except share data)   March 31,
    2025
      December 31,
    2024
    Assets        
    Cash and cash equivalents   $ 295     $ 328  
    Restricted cash and cash equivalents     25       37  
    Accounts receivable     100       123  
    Inventory, net     219       302  
    Derivative instruments     33       66  
    Other current assets     174       184  
    Total current assets     846       1,040  
    Property, plant and equipment, net     3,138       3,154  
    Nuclear decommissioning trust funds     1,717       1,724  
    Derivative instruments     5       5  
    Other noncurrent assets     159       183  
    Total Assets   $ 5,865     $ 6,106  
             
    Liabilities and Equity        
    Long-term debt, due within one year   $ 17     $ 17  
    Accrued interest     54       18  
    Accounts payable and other accrued liabilities     203       266  
    Derivative instruments     92        
    Other current liabilities     156       154  
    Total current liabilities     522       455  
    Long-term debt     2,975       2,987  
    Derivative instruments     42       7  
    Postretirement benefit obligations     289       305  
    Asset retirement obligations and accrued environmental costs     468       468  
    Deferred income taxes     294       362  
    Other noncurrent liabilities     95       135  
    Total Liabilities   $ 4,685     $ 4,719  
    Commitments and Contingencies        
             
    Stockholders’ Equity        
    Common stock ($0.001 par value, 350,000,000 shares authorized) (a)   $     $  
    Additional paid-in capital     1,718       1,725  
    Accumulated retained earnings (deficit)     (528 )     (326 )
    Accumulated other comprehensive income (loss)     (10 )     (12 )
    Total Stockholders’ Equity     1,180       1,387  
    Total Liabilities and Stockholders’ Equity   $ 5,865     $ 6,106  

    ______________________
    (a) 45,509,780 and 45,961,910 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.

    TALEN ENERGY CORPORATION AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                 
        Three Months Ended March 31,
    (Millions of Dollars)   2025   2024
    Operating Activities            
    Net Income (Loss)   $ (135 )   $ 319  
    Non-cash reconciliation adjustments:            
    Unrealized (gains) losses on derivative instruments   196     128  
    Depreciation, amortization and accretion   72     74  
    Deferred income taxes   (70 )   57  
    Nuclear fuel amortization   26     35  
    Nuclear decommissioning trust funds (gain) loss, net (excluding interest and fees)   23     (64 )
    (Gain) loss on AWS Data Campus Sale       (324 )
    Other   37     (42 )
    Changes in assets and liabilities:            
    Accounts receivable   23     11  
    Inventory, net   83     89  
    Other assets   22     (1 )
    Accounts payable and accrued liabilities   (60 )   (154 )
    Accrued interest   36     29  
    Collateral received (posted), net   (67 )   5  
    Other liabilities   (67 )   11  
    Net cash provided by (used in) operating activities   119     173  
    Investing Activities            
    Nuclear decommissioning trust funds investment purchases   (592 )   (564 )
    Nuclear decommissioning trust funds investment sale proceeds   581     553  
    Nuclear fuel expenditures   (46 )   (41 )
    Property, plant and equipment expenditures   (18 )   (25 )
    Proceeds from AWS Data Campus Sale       339  
    Other   7     3  
    Net cash provided by (used in) investing activities   (68 )   265  
    Financing Activities            
    Share repurchases   (83 )   (30 )
    Deferred financing costs   (9 )    
    Debt repayments   (4 )   (2 )
    Cumulus Digital TLF repayment       (182 )
    Repurchase of noncontrolling interest       (39 )
    Other       (6 )
    Net cash provided by (used in) financing activities           (96 )           (259 )
    Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents           (45 )   179  
    Beginning of period cash and cash equivalents and restricted cash and cash equivalents   365     901  
    End of period cash and cash equivalents and restricted cash and cash equivalents   $         320     $         1,080  
                 

    Non-GAAP Financial Measures

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

    Adjusted EBITDA

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

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

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

    Adjusted Free Cash Flow

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

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

    Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation

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

        Three Months Ended March 31,
    (Millions of Dollars)   2025   2024
    Net Income (Loss)   $ (135 )   $ 319  
    Adjustments        
    Interest expense and other finance charges     74       59  
    Income tax (benefit) expense     (52 )     69  
    Depreciation, amortization and accretion     74       75  
    Nuclear fuel amortization     26       35  
    Unrealized (gain) loss on commodity derivative contracts     182       134  
    Nuclear decommissioning trust funds (gain) loss, net     12       (75 )
    Stock-based and other long-term incentive compensation expense     13       18  
    (Gain) loss on asset sales, net (a)     (2 )     (324 )
    Operational and other restructuring activities     9       2  
    Noncontrolling interest           (11 )
    Other     (1 )     (12 )
    Total Adjusted EBITDA   $ 200     $ 289  
             
    Capital expenditures, net     (64 )     (59 )
    Interest and finance charge payments     (23 )     (34 )
    Income taxes     (9 )      
    Pension contributions     (17 )     (2 )
    Total Adjusted Free Cash Flow   $ 87     $ 194  

    ______________________
    (a) See Note 18 to the Q1 2025 Financial Statements for additional information.

    Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2025 Guidance

        2025E
    (Millions of Dollars)   Low   High
    Net Income (Loss)   $ 205     $ 325  
             
    Adjustments        
    Interest expense and other finance charges     235       245  
    Income tax (benefit) expense     60       80  
    Depreciation, amortization and accretion     295       295  
    Nuclear fuel amortization     105       105  
    Unrealized (gain) loss on commodity derivative contracts     75       75  
    Adjusted EBITDA   $ 975     $ 1,125  
             
    Capital expenditures, net   $ (190 )   $ (210 )
    Interest and finance charge payments     (210 )     (220 )
    Income taxes     (70 )     (80 )
    Pension contributions     (55 )     (75 )
    Adjusted Free Cash Flow   $ 450     $ 540  

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

    The MIL Network

  • MIL-OSI: Kaltura Announces Financial Results for First Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) — Kaltura, Inc. (“Kaltura” or the “Company”), the video experience cloud, today announced financial results for the first quarter ended March 31, 2025, as well as outlook for the second quarter and full year 2025.

    “We surpassed our guidance for the first quarter, delivering record total and subscription revenue, as well as significant Net loss improvement on a GAAP basis, and on a non-GAAP basis – a record positive Adjusted net income, Adjusted EBITDA, and earnings profitability per share. We also posted record ARR and the highest net dollar retention rate since the first quarter of 2022,” said Ron Yekutiel, Co-founder, Chairman, President and Chief Executive Officer of Kaltura.   “We continue to forecast for the full year a return to growth of new bookings fueled by customer consolidation around our platform, maturity of our newer products, exciting new Gen AI capabilities which customers have increasingly been adopting, growth potential within our great customer base, and a gradual growth in our sales force.”

    First Quarter 2025 Financial Highlights:

    • Revenue for the first quarter of 2025 was $47.0 million, an increase of 5% compared to $44.8 million for the first quarter of 2024.
    • Subscription Revenue for the first quarter of 2025 was $44.9 million, an increase of 9% compared to $41.2 million for the first quarter of 2024.
    • Annualized Recurring Revenue (ARR) for the first quarter of 2025 was $174.8 million, an increase of 7% compared to $162.7 million for the first quarter of 2024.
    • GAAP Gross profit for the first quarter of 2025 was $32.7 million, representing a gross margin of 70% compared to a GAAP gross profit of $28.6 million and gross margin of 64% for the first quarter of 2024. 
    • Non-GAAP Gross profit for the first quarter of 2025 was $33.0 million, representing a non-GAAP gross margin of 70%, compared to a non-GAAP gross profit of $29.0 million and non-GAAP gross margin of 65% for the first quarter of 2024. 
    • GAAP Operating loss was $1.6 million for the first quarter of 2025, compared to an operating loss of $7.3 million for the first quarter of 2024.
    • Non-GAAP Operating income was $3.1 million for the first quarter of 2025, compared to a non-GAAP operating loss of $0.6 million for the first quarter of 2024.
    • GAAP Net loss was $1.1 million or $0.01 per diluted share for the first quarter of 2025, compared to a GAAP net loss of $11.1 million, or $0.08 per diluted share, for the first quarter of 2024.
    • Non-GAAP Net income was $3.5 million or $0.02 per diluted share for the first quarter of 2025, compared to a non-GAAP net loss of $4.4 million, or $0.03 per diluted share, for the first quarter of 2024.
    • Adjusted EBITDA was $4.1 million for the first quarter of 2025, compared to adjusted EBITDA of $0.6 million for the first quarter of 2024.
    • Net Cash Used in Operating Activities was $1.0 million for the first quarter of 2025, compared to $1.1 million for the first quarter of 2024.

    First Quarter 2025 Business Highlights:

    • Closed one new seven-digit deal and fifteen six-digit deals, similar to first quarter 2024, reflecting typical seasonality
    • Sequential and year-over-year improvement in net dollar retention rate, reaching 107% – best since first quarter of 2022
    • Growing interest in Gen AI products – more than 150 customers already showing interest representing roughly 20% of our customer base. We think this represents a significant upsell opportunity for us in the coming quarters
    • Recognized by Gartner as a representative vendor in their 2025 Market Guides for both Video Platform Services and Meeting Solutions
    • Kaltura TV Genie recently won the Product of the Year award for Streaming at the 2025 NAB Show
    • Held our first Investor Event in our NYC office and remotely using our Events Platform. Conducted product demos and a customer panel and provided additional insights about our long-term financial goal.   Recording of the event and its presentation deck are available in the Investor section of our website
    • “Kaltura Connect on the road” series of customers events to be held in New York (May 13th), San Francisco (May 15th), and London (May 20th), followed by six ‘Connect in Education’ events across the US and Europe and virtually for APAC organizations.   Information is available on our website

    Financial Outlook:

    For the second quarter of 2025, Kaltura expects:

    • Subscription Revenue to be between $40.8 million and $41.6 million. 
    • Total Revenue to be between $43.4 million and $44.2 million. 
    • Adjusted EBITDA to be between $1.5 million to $2.5 million.

    For the full year ending December 31, 2025, Kaltura expects:

    • Subscription Revenue to be between $170.4 million and $173.4 million. 
    • Total Revenue to be between $179.9 million and $182.9 million. 
    • Adjusted EBITDA to be in the range of $13.5 million to $15.5 million.

    The guidance provided above contains forward-looking statements and actual results may differ materially. Refer to “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. Kaltura has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net loss within this press release because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. The reconciliation for Adjusted EBITDA includes but is not limited to the following items: stock-based compensation expenses, depreciation, amortization, financial expenses (income), net, provision for income tax, and other non-recurring operating expenses. These items, which could materially affect the computation of forward-looking GAAP net loss, are inherently uncertain and depend on various factors, some of which are outside of the Company’s control. The guidance above is based on the Company’s current expectations relating to the macro-economic climate trends.

    Additional information on Kaltura’s reported results, including a reconciliation of the non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below.

    Investor Deck

    Our first quarter and full year 2025 Investor Deck has been posted in the investor relations page on our website at: www.investors.kaltura.com.

    Conference Call

    Kaltura will host a conference call today on May 8, 2025 to review its first quarter 2025 financial results and to discuss its financial outlook.

      Time: 8:00 a.m. ET
      United States/Canada Toll Free: 1-877-407-0789
      International Toll: +1-201-689-8562
         

    A live webcast will also be available in the Investor Relations section of Kaltura’s website at: https://investors.kaltura.com/news-and-events/events

    A replay of the webcast will be available in the Investor Relations section of the company’s web site approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.

    About Kaltura

    Kaltura’s mission is to create and power AI-infused hyper-personalized video experiences that boost customer and employee engagement and success. Kaltura’s AI Video Experience Cloud includes a platform for enterprise and TV content management and a wide array of Gen AI-infused video-first products, including Video Portals, LMS and CMS Video Extensions, Virtual Events and Webinars, Virtual Classrooms, and TV Streaming Applications. Kaltura engages millions of end-users at home, at work, and at school, boosting both customer and employee experiences, including marketing, sales, and customer success; teaching, learning, training and certification; communication and collaboration; and entertainment, and monetization. For more information, visit www.corp.kaltura.com. 

    Investor Contacts:
    Kaltura
    John Doherty
    Chief Financial Officer
    IR@Kaltura.com

    Sapphire Investor Relations
    Erica Mannion and Michael Funari
    +1 617 542 6180
    IR@Kaltura.com

    Media Contacts:
    Kaltura
    Nohar Zmora
    pr.team@kaltura.com

    Headline Media
    Raanan Loew
    raanan@headline.media
    +1 347 897 9276

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including but not limited to, statements regarding our future financial and operating performance, including our guidance; our business strategy, plans and objectives for future operations; expectations with respect to our products and capabilities; our expectations regarding potential profitability and growth; and general economic, business and industry conditions, including expectations with respect to trends in customer consolidation and corporate spending.

    In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Any forward-looking statements contained herein are based on our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent our expectations as of the date of this press release. Subsequent events may cause these expectations to change, and we disclaim any obligation to update the forward-looking statements in the future, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from our current expectations.

    Important factors that could cause actual results to differ materially from those anticipated in our forward-looking statements include, but are not limited to, the current volatile economic climate and its direct and indirect impact on our business and operations; political, economic, and military conditions in Israel and other geographies; our ability to retain our customers and meet demand; our ability to achieve and maintain profitability; the evolution of the markets for our offerings; our ability to keep pace with technological and competitive developments; risks associated with our use of certain artificial intelligence and machine learning models; our ability to maintain the interoperability of our offerings across devices, operating systems and third-party applications; risks associated with our Application Programming Interfaces, other components in our offerings and other intellectual property; our ability to compete successfully against current and future competitors; our ability to increase customer revenue; risks related to our approach to revenue recognition; our potential exposure to cybersecurity threats; our compliance with data privacy and data protection laws; our ability to meet our contractual commitments; our reliance on third parties; our ability to retain our key personnel; risks related to revenue mix and customer base; risks related to our international operations; risks related to potential acquisitions; our ability to generate or raise additional capital; and the other risks under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investor Relations page of our website at investors.kaltura.com.

    Non-GAAP Financial Measures

    Kaltura has provided in this press release and the accompanying tables measures of financial information that have not been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”), including non-GAAP gross profit, non-GAAP gross margin (calculated as a percentage of revenue), non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating income (loss), non-GAAP operating margin (calculated as a percentage of revenue), non-GAAP net income (loss), non-GAAP net income (loss) per share and Adjusted EBITDA.
    Kaltura defines these non-GAAP financial measures as the respective corresponding GAAP measure, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; and (3) war-related costs. Kaltura defines EBITDA as net profit (loss) before financial expenses (income), net, provision for income taxes, and depreciation and amortization expenses.

    Adjusted EBITDA is defined as EBITDA (as defined above), adjusted for the impact of certain non-cash and other items that we believe are not indicative of our core operating performance, such as non-cash stock-based compensation expenses and certain non-recurring operating expenses. We believe these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Kaltura’s financial condition and results of operations. These non-GAAP metrics are a supplemental measure of our performance, are not defined by or presented in accordance with GAAP, and should not be considered in isolation or as an alternative to net profit (loss) or any other performance measure prepared in accordance with GAAP. Non-GAAP financial measures are presented because we believe that they provide useful supplemental information to investors and analysts regarding our operating performance and are frequently used by these parties in evaluating companies in our industry. By presenting these non-GAAP financial measures, we provide a basis for comparison of our business operations between periods by excluding items that we do not believe are indicative of our core operating performance. We believe that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. Additionally, our management uses these non-GAAP financial measures as supplemental measures of our performance because they assist us in comparing the operating performance of our business on a consistent basis between periods, as described above. Although we use the non-GAAP financial measures described above, such measures have significant limitations as analytical tools and only supplement but do not replace, our financial statements in accordance with GAAP. See the tables below regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.

    Key Financial and Operating Metrics

    Annualized Recurring Revenue. We use Annualized Recurring Revenue (“ARR”) as a measure of our revenue trend and an indicator of our future revenue opportunity from existing recurring customer contracts. We calculate ARR by annualizing our recurring revenue for the most recently completed fiscal quarter. Recurring revenues are generated from SaaS and PaaS subscriptions, as well as term licenses for software installed on the customer’s premises (“On-Prem”). For the SaaS and PaaS components, we calculate ARR by annualizing the actual recurring revenue recognized for the latest fiscal quarter. For the On-Prem components for which revenue recognition is not ratable across the license term, we calculate ARR for each contract by dividing the total contract value (excluding professional services) as of the last day of the specified period by the number of days in the contract term and then multiplying by 365. Recurring revenue excludes revenue from one-time professional services and setup fees. ARR is not adjusted for the impact of any known or projected future customer cancellations, upgrades or downgrades or price increases or decreases. The amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to new bookings, cancellations, upgrades or downgrades, pending renewals, professional services revenue, foreign exchange rate fluctuations and acquisitions or divestitures. ARR should be viewed independently of revenue as it is an operating metric and is not intended to be a replacement or forecast of revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies.

    Net Dollar Retention Rate. Our Net Dollar Retention Rate, which we use to measure our success in retaining and growing recurring revenue from our existing customers, compares our recognized recurring revenue from a set of customers across comparable periods. We calculate our Net Dollar Retention Rate for a given period as the recognized recurring revenue from the latest reported fiscal quarter from the set of customers whose revenue existed in the reported fiscal quarter from the prior year (the numerator), divided by recognized recurring revenue from such customers for the same fiscal quarter in the prior year (denominator). For annual periods, we report Net Dollar Retention Rate as the arithmetic average of the Net Dollar Retention Rate for all fiscal quarters included in the period. We consider subdivisions of the same legal entity (for example, divisions of a parent company or separate campuses that are part of the same state university system), as well as Value-add Resellers (“VARs”) (meaning resellers that directly manage the relationship with the customer) and the customers they manage, to be a single customer for purposes of calculating our Net Dollar Retention Rate. Our calculation of Net Dollar Retention Rate for any fiscal period includes the positive recognized recurring revenue impacts of selling new services to existing customers and the negative recognized recurring revenue impacts of contraction and attrition among this set of customers. Our Net Dollar Retention Rate may fluctuate as a result of a number of factors, including the growing level of our revenue base, the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. Our calculation of Net Dollar Retention Rate may differ from similarly titled metrics presented by other companies.

    Remaining Performance Obligations. Remaining Performance Obligations represents the amount of contracted future revenue that has not yet been delivered, including both subscription and professional services revenues. Remaining Performance Obligations consists of both deferred revenue and contracted non-cancelable amounts that will be invoiced and recognized in future periods. We expect to recognize 59% of our Remaining Performance Obligations as revenue over the next 12 months, and the remainder over a period of four years, in each case, in accordance with our revenue recognition policy; however, we cannot guarantee that any portion of our Remaining Performance Obligations will be recognized as revenue within the timeframe we expect or at all.

     
    Consolidated Balance Sheets (U.S. dollars in thousands)
     
        As of
        March 31, 2025   December 31, 2024
        (Unaudited)    
    ASSETS        
    CURRENT ASSETS:        
    Cash and cash equivalents   $ 31,695     $ 33,059  
    Marketable securities     31,223       48,275  
    Trade receivables     18,209       19,978  
    Prepaid expenses and other current assets     9,943       9,481  
    Deferred contract acquisition and fulfillment costs, current     10,326       10,765  
             
    Total current assets     101,396       121,558  
             
    LONG-TERM ASSETS:        
    Marketable securities     18,004       3,379  
    Property and equipment, net     15,242       16,190  
    Other assets, noncurrent     3,120       2,983  
    Deferred contract acquisition and fulfillment costs, noncurrent     12,195       13,605  
    Operating lease right-of-use assets     11,670       12,308  
    Intangible assets, net     101       212  
    Goodwill     11,070       11,070  
             
    Total noncurrent assets     71,402       59,747  
             
    TOTAL ASSETS   $ 172,798     $ 181,305  
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    CURRENT LIABILITIES:        
    Current portion of long-term loans   $ 3,764     $ 3,110  
    Trade payables     8,311       3,265  
    Employees and payroll accruals     15,033       15,399  
    Accrued expenses and other current liabilities     12,298       14,262  
    Operating lease liabilities     2,536       2,504  
    Deferred revenue, current     53,879       63,123  
             
    Total current liabilities     95,821       101,663  
    NONCURRENT LIABILITIES:        
    Deferred revenue, noncurrent     57       67  
    Long-term loans, net of current portion     27,886       29,153  
    Operating lease liabilities, noncurrent     14,365       15,263  
    Other liabilities, noncurrent     12,010       10,772  
             
    Total noncurrent liabilities     54,318       55,255  
    TOTAL LIABILITIES   $ 150,139     $ 156,918  
    STOCKHOLDERS’ EQUITY:        
    Common stock   $ 16     $ 15  
    Treasury stock     (10,119 )     (7,801 )
    Additional paid-in capital     502,644       500,024  
    Accumulated other comprehensive income     47       959  
    Accumulated deficit     (469,929 )     (468,810 )
    Total stockholders’ equity     22,659       24,387  
             
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 172,798     $ 181,305  
     
    Consolidated Statements of Operations (U.S. dollars in thousands, except for share data)
     
        Three Months Ended
    March 31,
          2025       2024  
        (Unaudited)
             
    Revenue:        
             
    Subscription   $ 44,906     $ 41,170  
    Professional services     2,078       3,611  
             
    Total revenue     46,984       44,781  
             
    Cost of revenue:        
             
    Subscription     10,487       11,401  
    Professional services     3,761       4,772  
             
    Total cost of revenue     14,248       16,173  
             
    Gross profit     32,736       28,608  
             
    Operating expenses:        
             
    Research and development     12,088       12,005  
    Sales and marketing     11,923       11,812  
    General and administrative     10,302       12,082  
             
    Total operating expenses     34,313       35,899  
             
    Operating loss     1,577       7,291  
             
    Financial expense (income), net     (1,803 )     1,497  
             
    Loss before provision for income taxes     226       (8,788 )
    Provision for income taxes     1,345       2,308  
             
    Net loss   $ 1,119     $ 11,096  
             
    Net loss per share attributable to common stockholders, basic and diluted   $ 0.01     $ 0.08  
             
    Weighted average number of shares used in computing basic and diluted net loss per share attributable to common stockholders     154,009,623       144,253,660  
     
    Consolidated Statements of Operations (U.S. dollars in thousands, except for share data)
     
    Stock-based compensation included in above line items:
     
        Three Months Ended March 31,
          2025     2024
        (Unaudited)
             
    Cost of revenue   $ 128   $ 285
    Research and development     849     1,172
    Sales and marketing     432     770
    General and administrative     3,124     4,302
             
    Total   $ 4,533   $ 6,529
     
    Revenue by Segment (U.S. dollars in thousands):
     
        Three Months Ended March 31,
          2025     2024
        (Unaudited)
             
    Enterprise, Education and Technology   $ 34,416   $ 32,440
    Media and Telecom     12,568     12,341
             
    Total   $ 46,984   $ 44,781
     
    Gross Profit by Segment (U.S. dollars in thousands):
     
        Three Months Ended March 31,
          2025     2024
        (Unaudited)
             
    Enterprise, Education and Technology   $ 26,568   $ 23,556
    Media and Telecom     6,168     5,052
             
    Total   $ 32,736   $ 28,608
     
    Consolidated Statement of Cash Flows (U.S. dollars in thousands)
     
        Three Months Ended March 31,
          2025       2024  
        (Unaudited)
    Cash flows from operating activities:        
    Net loss   $ (1,119 )   $ (11,096 )
    Adjustments to reconcile net loss to net cash used in operating activities:        
    Depreciation and amortization     1,185       1,305  
    Stock-based compensation expenses     4,533       6,529  
    Amortization of deferred contract acquisition and fulfillment costs     2,864       2,888  
    Non-cash interest income, net     (60 )     (286 )
    Gain on foreign exchange     (61 )     (325 )
    Changes in operating assets and liabilities:        
    Decrease in trade receivables     1,769       5,475  
    Increase in prepaid expenses and other current assets and other assets, noncurrent     (1,293 )     (560 )
    Increase in deferred contract acquisition and fulfillment costs     (1,104 )     (1,067 )
    Increase in trade payables     5,216       4,447  
    Increase (decrease) in accrued expenses and other current liabilities     (1,973 )     1,654  
    Decrease in employees and payroll accruals     (2,566 )     (1,099 )
    Increase (decrease) in other liabilities, noncurrent     1,044       (36 )
    Decrease in deferred revenue     (9,254 )     (8,617 )
    Operating lease right-of-use assets and lease liabilities, net     (228 )     (358 )
             
    Net cash used in operating activities     (1,047 )     (1,146 )
             
    Cash flows from investing activities:        
             
    Investment in available-for-sale marketable securities     (26,390 )     (15,424 )
    Proceeds from maturities of available-for-sale marketable securities     28,933       12,000  
    Purchases of property and equipment     (297 )     (93 )
             
    Net cash provided by (used in) investing activities     2,246       (3,517 )
             
    Cash flows from financing activities:        
             
    Repayment of long-term loans     (875 )     (875 )
    Proceeds from exercise of stock options     1,470       104  
    Cash settlement of equity classified share-based payment awards     (889 )      
    Repurchase of common stock     (2,318 )      
    Payments on account of repurchase of common stock     (12 )      
    Payment of debt issuance costs           (10 )
             
    Net cash used in financing activities     (2,624 )     (781 )
             
    Effect of exchange rate changes on cash, cash equivalents and restricted cash     61       325  
             
    Net decrease in cash, cash equivalents and restricted cash   $ (1,364 )   $ (5,119 )
    Cash, cash equivalents and restricted cash at the beginning of the period     33,159       36,784  
    Cash, cash equivalents and restricted cash at the end of the period   $ 31,795     $ 31,665  
     
    Reconciliation from GAAP to Non-GAAP Results (U.S. dollars in thousands, except per share data; Unaudited)
     
        Three Months Ended March 31,
          2025       2024  
    Reconciliation of gross profit and gross margin        
    GAAP gross profit   $ 32,736     $ 28,608  
    Stock-based compensation expense     128       285  
    Amortization of acquired intangibles     97       105  
    Non-GAAP gross profit   $ 32,961     $ 28,998  
    GAAP gross margin     70 %     64 %
    Non-GAAP gross margin     70 %     65 %
    Reconciliation of operating expenses        
    GAAP research and development expenses   $ 12,088     $ 12,005  
    Stock-based compensation expense     849       1,172  
    Amortization of acquired intangibles            
    Non-GAAP research and development expenses   $ 11,239     $ 10,833  
    GAAP sales and marketing   $ 11,923     $ 11,812  
    Stock-based compensation expense     432       770  
    Amortization of acquired intangibles     14       13  
    Non-GAAP sales and marketing expenses   $ 11,477     $ 11,029  
    GAAP general and administrative expenses   $ 10,302     $ 12,082  
    Stock-based compensation expense     3,124       4,302  
    Amortization of acquired intangibles            
    War related costs(b)           21  
    Non-GAAP general and administrative expenses   $ 7,178     $ 7,759  
    Reconciliation of operating income (loss) and operating margin        
    GAAP operating loss   $ (1,577 )   $ (7,291 )
    Stock-based compensation expense     4,533       6,529  
    Amortization of acquired intangibles     111       118  
    War related costs(b)           21  
    Non-GAAP operating income (loss)   $ 3,067     $ (623 )
    GAAP operating margin     (3 )%     (16 )%
    Non-GAAP operating margin     7 %     (1 )%
    Reconciliation of net loss        
    GAAP net loss attributable to common stockholders   $ (1,119 )   $ (11,096 )
    Stock-based compensation expense     4,533       6,529  
    Amortization of acquired intangibles     111       118  
    War related costs(b)           21  
    Non-GAAP net income (loss) attributable to common stockholders   $ 3,525     $ (4,428 )
             
    Non-GAAP net income (loss) per share – basic and diluted   $ 0.02     $ (0.03 )
             
    Reconciliation of weighted average number of shares outstanding:        
    Weighted-average number of shares used in calculating GAAP and Non-GAAP net income (loss) per share, basic     154,009,623       144,253,660  
    Effect of dilutive shares used in calculating Non-GAAP net income (loss) per share, diluted (c)     11,294,304        
    Weighted-average number of shares used in calculating Non-GAAP net income (loss) per share, diluted     165,303,927       144,253,660  
     
    Adjusted EBITDA (U.S. dollars in thousands)
     
        Three Months Ended March 31,
          2025       2024  
         
    Net loss   $ (1,119 )   $ (11,096 )
    Financial expenses (income), net (a)     (1,803 )     1,497  
    Provision for income taxes     1,345       2,308  
    Depreciation and amortization     1,185       1,305  
    EBITDA     (392 )     (5,986 )
    Non-cash stock-based compensation expense     4,533       6,529  
    War related costs(b)           21  
    Adjusted EBITDA   $ 4,141     $ 564  
    (a) The three months ended March 31, 2025 and 2024, include $609 and $704, respectively, of interest expenses and $896 and $818, respectively, of interest income.
       
    (b) The three months ended March 31, 2024 includes costs related to conflicts in Israel, attributable to temporary relocation of key employees from Israel for business continuity purposes, purchase of emergency equipment for key employees for business continuity purposes, and charitable donations to communities directly impacted by the war.
       
    (c) The effect of these dilutive shares was not included in the GAAP calculation of diluted net loss per share for the three months ended March 31, 2025 and 2024 because the effect would have been anti-dilutive.
     
    Reported KPIs
     
        March 31,
          2025     2024
        (U.S. dollars, amounts in thousands)
    Annualized Recurring Revenue             $ 174,842   $ 162,713
    Remaining Performance Obligations             $ 184,860   $ 165,224
       

    Three Months Ended March 31,

        2025     2024  
    Net Dollar Retention Rate             107 %   98 %

    The MIL Network

  • MIL-OSI: Brookfield Corporation Reports 27% Increase in Distributable Earnings to $1.5 Billion

    Source: GlobeNewswire (MIL-OSI)

    $850 million of Shares Repurchased to Date in 2025

    Deployable Capital Increases to a Record $165 billion

    BROOKFIELD, Nnews, May 08, 2025 (GLOBE NEWSWIRE) — Brookfield Corporation (NYSE: BN, TSX: BN) announced strong financial results for the quarter ended March 31, 2025.

    Nick Goodman, President of Brookfield Corporation, said, “Our business performed well in the first quarter, with earnings 30% higher than the prior year, supported by continued momentum across our core operations. Our asset management business had strong inflows of $25 billion during the first quarter, our operating businesses continued to generate resilient cash flows, and our wealth solutions business delivered robust growth.”

    He added, “In spite of increased market volatility, the outlook for our business continues to be strong and our focus remains unchanged; to deliver 15%+ returns to our shareholders over the long-term. We continue to reinvest our excess cash flows to further compound capital and with the recent volatility, we have accelerated share repurchases, buying back $850 million of shares so far this year.”

    Operating Results

    Distributable earnings (“DE”) before realizations increased by 30% over the prior year quarter.

    Unaudited
    For the periods ended March 31
    (US$ millions, except per share amounts)
    Three Months Ended   Last Twelve Months Ended
      2025     2024     2025     2024
    Net income of consolidated business1 $ 215   $ 519   $ 1,549   $ 5,200
    Net income attributable to Brookfield shareholders2 $ 73     102   $ 612     1,112
                   
    Distributable earnings before realizations3   1,301     1,001     5,171     4,279
    –  Per Brookfield share3   0.82     0.63     3.26     2.70
                   
    Distributable earnings3   1,549     1,216     6,607     4,865
    –  Per Brookfield share3   0.98     0.77     4.17     3.07

    See endnotes on page 8.

    Total consolidated net income was $215 million for the quarter and $1.5 billion for the last twelve months (“LTM”). Distributable earnings before realizations were $1.3 billion ($0.82/share) for the quarter and $5.2 billion ($3.26/share) for the last twelve months.

    Our asset management business generated a 26% increase in fee-related earnings compared to the prior year quarter. This growth was attributed to robust fundraising momentum primarily driven by our complementary strategies and the final closes of two flagship funds.

    Wealth solutions delivered another strong quarter of financial performance, benefiting from strong investment performance and continued growth of our insurance asset base.

    Our operating businesses continue to deliver resilient and stable cash flows, underpinned by strong operating earnings across our renewable power and transition, infrastructure, and private equity businesses and 3% growth in same-store net operating income (“NOI”) from our core real estate portfolio.

    During the quarter and for the LTM, earnings from realizations were $248 million and $1.4 billion, with total DE for the quarter and for the LTM of $1.5 billion ($0.98/share) and $6.6 billion ($4.17/share), respectively.

    Regular Dividend Declaration

    The Board declared a quarterly dividend for Brookfield Corporation of $0.09 per share, payable on June 30, 2025 to shareholders of record as at the close of business on June 13, 2025. The Board also declared the regular monthly and quarterly dividends on our preferred shares.

    Operating Highlights

    Distributable earnings before realizations were $1.3 billion ($0.82/share) for the quarter and $5.2 billion ($3.26/share) over the last twelve months, representing an increase of 30% on a per share basis over the prior year quarter. Total distributable earnings were $1.5 billion ($0.98/share) for the quarter and $6.6 billion ($4.17/share) over the last twelve months.

    Asset Management:

    • DE was $684 million ($0.43/share) in the quarter and $2.7 billion ($1.71/share) over the LTM.
    • Fee-related earnings were a record $698 million, representing growth of 26% compared to the prior year quarter. This was driven by a 20% increase in fee-bearing capital over the LTM to $549 billion. Total inflows were $25 billion in the quarter.
    • We closed our flagship opportunistic credit fund strategy at $16 billion and finalized the institutional close for our fifth vintage opportunistic real estate strategy, bringing total capital raised to approximately $16 billion – with the final close-out of clients in wealth and regional sleeves expected over the balance of the year, we are set to have by far our largest pool of capital for opportunistic real estate to date.
    • Subsequent to the quarter end, we announced the acquisition of a majority stake in Angel Oak, a leading origination platform and asset manager with over $18 billion of assets under management.

    Wealth Solutions:

    • DE was $430 million ($0.27/share) in the quarter and $1.5 billion ($0.95/share) over the LTM.
    • We originated $4 billion of retail and institutional annuity sales during the quarter, increasing insurance assets to $133 billion at quarter end.
    • The business maintains a strong financial position, with statutory capital growing to over $16 billion.
    • We continue to gradually rotate the investment portfolio, rotating over $8 billion of American Equity Life’s portfolio to date, contributing to an average investment portfolio yield of 5.7%, which is 1.8% higher than the average cost of funds, and we maintain a 15% return on our $11.5 billion invested capital.
    • Through our combined wealth solutions platforms, we are raising close to $2 billion of retail capital per month, inclusive of over $650 million from our private wealth channel.

    Operating Businesses:

    • DE was $426 million ($0.27/share) in the quarter and $1.7 billion ($1.08/share) over the LTM.
    • Cash distributions from our operating businesses are underpinned by strong operating earnings. Our core real estate portfolio continues to grow its same-store NOI, delivering a 3% increase over the prior year quarter.
    • In our real estate business, we signed nearly 9 million square feet of office and retail leases during the quarter, including 2.3 million square feet of office leases in the U.S.
    • In our North American residential business, we generated approximately $640 million of proceeds from the sale of master plan communities as we shift the business to a more capital-light model.

    Earnings from the monetization of mature assets were $248 million ($0.16/share) for the quarter and $1.4 billion ($0.91/share) over the LTM.

    • During the quarter, we successfully closed approximately $22 billion of asset sales across the business. Substantially all sales were completed at prices in line or above our carrying values.
    • Total accumulated unrealized carried interest was $11.6 billion at quarter end, representing an increase of 14% compared to the prior year, net of $409 million carried interest realized into income over the LTM.
    • As we execute on our monetization pipeline, we expect to realize much of this into income over the next five years.

    We ended the quarter with a record $165 billion of capital available to deploy into new investments.

    • We have deployable capital of $165 billion, which includes $69 billion of cash, financial assets and undrawn credit lines at the Corporation, our affiliates and our wealth solutions business.
    • Our balance sheet remains conservatively capitalized. Our corporate debt at the Corporation has a weighted-average term of 15 years, and today, we have no maturities through the end of 2025.
    • We maintained strong access to the capital markets and executed on over $30 billion of financings, including issuing $500 million of 30-year senior unsecured notes at the Corporation, achieving our tightest 30-year spread to date.
    • To date this year, we have completed $850 million of share repurchases at prices significantly lower than our intrinsic value, adding value to each remaining share.

    CONSOLIDATED BALANCE SHEETS

    Unaudited
    (US$ millions)
        March 31     December 31
        2025       2024
    Assets        
    Cash and cash equivalents   $ 12,437   $ 15,051
    Other financial assets     29,996     25,887
    Accounts receivable and other     44,070     40,509
    Inventory     8,706     8,458
    Equity accounted investments     69,405     68,310
    Investment properties     95,960     103,665
    Property, plant and equipment     152,908     153,019
    Intangible assets     37,219     36,072
    Goodwill     37,024     35,730
    Deferred income tax assets     3,852     3,723
    Total Assets   $ 491,577   $ 490,424
             
    Liabilities and Equity        
    Corporate borrowings   $ 14,607   $ 14,232
    Accounts payable and other     58,795     60,223
    Non-recourse borrowings     231,257     220,560
    Subsidiary equity obligations     3,354     4,759
    Deferred income tax liabilities     24,634     25,267
             
    Equity        
    Non-controlling interests in net assets $ 113,667   $ 119,406  
    Preferred equity   4,103     4,103  
    Common equity   41,160   158,930   41,874   165,383
    Total Equity     158,930     165,383
    Total Liabilities and Equity   $ 491,577   $ 490,424

    CONSOLIDATED STATEMENTS OF OPERATIONS

    Unaudited
    For the periods ended March 31
    (US$ millions, except per share amounts)
    Three Months Ended
      2025       2024  
    Revenues $ 17,944     $ 22,907  
    Direct costs1   (10,995 )     (16,571 )
    Other income and gains   588       240  
    Equity accounted income   519       686  
    Interest expense      
    – Corporate borrowings   (179 )     (173 )
    – Non-recourse borrowings      
    Same-store   (3,916 )     (3,955 )
    Dispositions, net of acquisitions2   188        
    Upfinancings2   (254 )      
    Corporate costs   (18 )     (17 )
    Fair value changes   (824 )     158  
    Depreciation and amortization   (2,455 )     (2,475 )
    Income tax   (383 )     (281 )
    Net income   215       519  
    Net income attributable to non-controlling interests   (142 )     (417 )
    Net income attributable to Brookfield shareholders $ 73     $ 102  
           
    Net income per share      
    Diluted $ 0.02     $ 0.04  
    Basic   0.02       0.04  

    1.    Direct costs disclosed above exclude depreciation and amortization expense.
    2.    Interest expense from dispositions, net of acquisitions, and upfinancings completed over the twelve months ended March 31, 2025.


    SUMMARIZED FINANCIAL RESULTS

    DISTRIBUTABLE EARNINGS

    Unaudited
    For the periods ended March 31
    (US$ millions)
    Three Months Ended   Last Twelve Months Ended
      2025       2024       2025       2024  
    Asset management $ 684     $ 621     $ 2,708     $ 2,508  
                   
    Wealth solutions   430       273       1,507       868  
                   
    BEP   113       107       434       419  
    BIP   89       84       341       323  
    BBU   6       9       32       36  
    BPG   215       166       904       759  
    Other   3       (29 )     4       (37 )
    Operating businesses   426       337       1,715       1,500  
                   
    Corporate costs and other   (239 )     (230 )     (759 )     (597 )
    Distributable earnings before realizations1   1,301       1,001       5,171       4,279  
    Realized carried interest, net   189       183       409       547  
    Disposition gains from principal investments   59       32       1,027       39  
    Distributable earnings1 $ 1,549     $ 1,216     $ 6,607     $ 4,865  

    1.    Non-IFRS measure – see Non-IFRS and Performance Measures section on page 8.


    RECONCILIATION OF NET INCOME TO DISTRIBUTABLE EARNINGS

    Unaudited
    For the periods ended March 31
    (US$ millions)
    Three Months Ended   Last Twelve Months Ended
      2025       2024       2025       2024  
    Net income $ 215     $ 519     $ 1,549     $ 5,200  
    Financial statement components not included in DE:              
    Equity accounted fair value changes and other items   952       629       3,002       2,727  
    Fair value changes and other   869       (9 )     3,530       1,981  
    Depreciation and amortization   2,455       2,475       9,717       9,362  
    Disposition gains in net income   (402 )     (35 )     (1,601 )     (6,071 )
    Deferred income taxes   (159 )     (44 )     (456 )     (849 )
    Non-controlling interests in the above items1   (2,639 )     (2,525 )     (10,684 )     (8,192 )
    Less: realized carried interest, net   (189 )     (183 )     (409 )     (547 )
    Working capital, net   199       174       523       668  
    Distributable earnings before realizations2   1,301       1,001       5,171       4,279  
    Realized carried interest, net3   189       183       409       547  
    Disposition gains from principal investments   59       32       1,027       39  
    Distributable earnings2 $ 1,549     $ 1,216     $ 6,607     $ 4,865  

    1.    DE is a non-IFRS measure proportionate to the interests of shareholders and therefore excludes items in income attributable to non-controlling interests in non-wholly owned subsidiaries.
    2.    Non-IFRS measure – see Non-IFRS and Performance Measures section on page 8.
    3.    Includes our share of Oaktree’s distributable earnings attributable to realized carried interest.


    EARNINGS PER SHARE

    Unaudited
    For the periods ended March 31
    (millions, except per share amounts)
    Three Months Ended   Last Twelve Months Ended
      2025       2024       2025       2024  
    Net income $ 215     $ 519     $ 1,549     $ 5,200  
    Non-controlling interests   (142 )     (417 )     (937 )     (4,088 )
    Net income attributable to shareholders   73       102       612       1,112  
    Preferred share dividends1   (40 )     (42 )     (166 )     (167 )
    Net income available to common shareholders   33       60       446       945  
    Dilutive impact of exchangeable shares of affiliate               12       7  
    Net income available to common shareholders including dilutive impact of exchangeable shares $ 33     $ 60     $ 458     $ 952  
                   
    Weighted average shares   1,504.0       1,518.8       1,507.5       1,545.4  
    Dilutive effect of conversion of options and escrowed shares using treasury stock method2 and exchangeable shares of affiliate3   39.5       24.8       76.3       39.5  
    Shares and share equivalents   1,543.5       1,543.6       1,583.8       1,584.9  
                   
    Diluted earnings per share $ 0.02     $ 0.04     $ 0.29     $ 0.60  

    1.    Excludes dividends paid on perpetual subordinated notes of $3 million (2024 – $3 million) and $10 million (2024 – $10 million) for the three and twelve months ended March 31, 2025, which are recognized within net income attributable to non-controlling interests.
    2.    Includes management share option plan and escrowed stock plan.
    3.    Per share amounts are inclusive of the dilutive effect of mandatorily redeemable preferred shares held in a consolidated subsidiary. Due to its anti-dilutive effect on EPS for the three months ended March 31, 2025, the exchange of BWS Class A shares has been excluded from the diluted EPS calculation.


    Additional Information

    The Letter to Shareholders and the company’s Supplemental Information for the three and twelve months ended March 31, 2025, contain further information on the company’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company’s website.

    The statements contained herein are based primarily on information that has been extracted from our financial statements for the periods ended March 31, 2025, which have been prepared using IFRS Accounting Standards, as issued by the International Accounting Standards Board (“IASB”). The amounts have not been audited by Brookfield Corporation’s external auditor.

    Brookfield Corporation’s Board of Directors has reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.

    Information on our dividends can be found on our website under Stock & Distributions/Distribution History.

    Quarterly Earnings Call Details

    Investors, analysts and other interested parties can access Brookfield Corporation’s 2025 First Quarter Results as well as the Shareholders’ Letter and Supplemental Information on Brookfield Corporation’s website under the Reports & Filings section at www.bn.brookfield.com.

    To participate in the Conference Call today at 10:00 a.m. ET, please pre-register at https://register-conf.media-server.com/register/BI8ec76857c24d465f8738d2aa3d9d69f7. Upon registering, you will be emailed a dial-in number, and unique PIN. The Conference Call will also be webcast live at https://edge.media-server.com/mmc/p/wq9u3hrd. For those unable to participate in the Conference Call, the telephone replay will be archived and available until May 8, 2026. To access this rebroadcast, please visit: https://edge.media-server.com/mmc/p/wq9u3hrd

    About Brookfield Corporation

    Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Alternative Asset Management, Wealth Solutions, and our Operating Businesses which are in renewable power, infrastructure, business and industrial services, and real estate.

    We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization. Brookfield Corporation is publicly traded in New York and Toronto (NYSE: BN, TSX: BN).

    Please note that Brookfield Corporation’s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR+ and can also be found in the investor section of its website at www.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

    For more information, please visit our website at www.bn.brookfield.com or contact:

    Media:
    Kerrie McHugh
    Tel: (212) 618-3469
    Email: kerrie.mchugh@brookfield.com
      Investor Relations:
    Katie Battaglia
    Tel: (416) 359-8544
    Email: katie.battaglia@brookfield.com


    Non-IFRS and Performance Measures

    This news release and accompanying financial information are based on IFRS Accounting Standards, as issued by the IASB, unless otherwise noted.

    We make reference to Distributable Earnings (“DE”). We define DE as the sum of distributable earnings from our asset management business, distributable operating earnings from our wealth solutions business, distributions received from our ownership of investments, realized carried interest and disposition gains from principal investments, net of earnings from our Corporate Activities, preferred share dividends and equity-based compensation costs. We also make reference to DE before realizations, which refers to DE before realized carried interest and realized disposition gains from principal investments. We believe these measures provide insight into earnings received by the company that are available for distribution to common shareholders or to be reinvested into the business.

    Realized carried interest and realized disposition gains are further described below:

    • Realized Carried Interest represents our contractual share of investment gains generated within a private fund after achieving our clients’ minimum return requirements. Realized carried interest is determined on third-party capital that is no longer subject to future investment performance.
    • Realized Disposition Gains from Principal Investments are included in DE because we consider the purchase and sale of assets from our directly held investments to be a normal part of the company’s business. Realized disposition gains include gains and losses recorded in net income and equity in the current period, and are adjusted to include fair value changes and revaluation surplus balances recorded in prior periods which were not included in prior period DE.

    We use DE to assess our operating results and the value of Brookfield Corporation’s business and believe that many shareholders and analysts also find this measure of value to them.

    We may make reference to Operating Funds from Operations (“Operating FFO”). We define Operating FFO as the company’s share of revenues less direct costs and interest expenses; excludes realized carried interest and disposition gains, fair value changes, depreciation and amortization and deferred income taxes; and includes our proportionate share of FFO from operating activities recorded by equity accounted investments on a fully diluted basis.

    We may make reference to Net Operating Income (“NOI”), which refers to our share of the revenues from our operations less direct expenses before the impact of depreciation and amortization within our real estate business. We present this measure as we believe it is a key indicator of our ability to impact the operating performance of our properties. As NOI excludes non-recurring items and depreciation and amortization of real estate assets, it provides a performance measure that, when compared to prior periods, reflects the impact of operations from trends in occupancy rates and rental rates.

    We disclose a number of financial measures in this news release that are calculated and presented using methodologies other than in accordance with IFRS. These financial measures, which include DE, should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with IFRS. We caution readers that these non-IFRS financial measures or other financial metrics are not standardized under IFRS and may differ from the financial measures or other financial metrics disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities.

    We provide additional information on key terms and non-IFRS measures in our filings available at www.bn.brookfield.com.

    End Notes  

    1.    Consolidated basis – includes amounts attributable to non-controlling interests.
    2.    Excludes amounts attributable to non-controlling interests.
    3.    See Reconciliation of Net Income to Distributable Earnings on page 5 and Non-IFRS and Performance Measures section on page 8.


    Notice to Readers

    Brookfield Corporation is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement.

    This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward- looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which in turn are based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield Corporation are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect,” “anticipate,” “believe,” “foresee,” “could,” “estimate,” “goal,” “intend,” “plan,” “seek,” “strive,” “will,” “may” and “should” and similar expressions. In particular, the forward-looking statements contained in this news release include statements referring to the impact of current market or economic conditions on our business, the future state of the economy or the securities market, the anticipated allocation and deployment of our capital, our fundraising targets, and our target growth objectives.

    Although Brookfield Corporation believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments including asset management, wealth solutions, renewable power and transition, infrastructure, private equity, real estate and corporate activities; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

    We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release or such other date specified herein. Except as required by law, Brookfield Corporation undertakes no obligation to publicly update or revise any forward- looking statements, whether written or oral, that may be as a result of new information, future events or otherwise.

    Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise).

    Target returns and growth objectives set forth in this news release are for illustrative and informational purposes only and have been presented based on various assumptions made by Brookfield Corporation in relation to the investment strategies being pursued, any of which may prove to be incorrect. There can be no assurance that targeted returns or growth objectives will be achieved. Due to various risks, uncertainties and changes (including changes in economic, operational, political or other circumstances) beyond Brookfield Corporation’s control, the actual performance of the business could differ materially from the target returns and growth objectives set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns and growth objectives. No assurance, representation or warranty is made by any person that the target returns or growth objectives will be achieved, and undue reliance should not be put on them.

    When we speak about our wealth solutions business or Brookfield Wealth Solutions, we are referring to Brookfield’s investments in this business that supported the acquisitions of its underlying operating subsidiaries.

    The MIL Network

  • MIL-OSI: AMG Reports Financial and Operating Results for the First Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    • New partnerships with Verition Fund Management and Qualitas Energy, together with Q1 investment in NorthBridge Partners, further diversify AMG’s business and broaden its participation in alternatives, in line with its growth strategy
    • Affiliate Peppertree Capital Management to be acquired, marking culmination of AMG investment and a successful outcome for all stakeholders
    • Strong net client cash inflows in alternatives of approximately $14 billion, driven by both liquid alternatives and private markets
    • Repurchased approximately $173 million in common stock in the first quarter

    WEST PALM BEACH, Fla., May 08, 2025 (GLOBE NEWSWIRE) — AMG, a strategic partner to leading independent investment management firms globally, today reported its financial and operating results for the first quarter of 2025.

    Jay C. Horgen, President and Chief Executive Officer of AMG, said:
    “In the first quarter, AMG reported Economic Earnings per share of $5.20, reflecting the ongoing evolution of our business and the positive impact of our disciplined capital allocation strategy. AMG’s focus on investing in areas of secular demand has enhanced the Company’s long-term growth prospects, and, together with our business strength and momentum, has positioned us to capitalize on the current market environment.

    “AMG’s proven ability to magnify the competitive advantages of partner-owned firms, while also preserving their independence, continues to differentiate our unique partnership model and is highly valued by prospective Affiliates. Since the beginning of the year, we have announced three new partnerships with firms managing alternative strategies. In February, we announced an investment in NorthBridge Partners, a private markets manager specializing in industrial logistics real estate assets. More recently, we announced two additional new partnerships with high-quality firms that have outstanding track records of performance across nearly two decades: Verition Fund Management, a premier global multi-strategy investment firm, and Qualitas Energy, a leading renewables-focused global infrastructure manager specializing in energy transition. These new partnerships enhance AMG’s exposure to secular growth areas and accelerate the evolution of our business profile, increasing our participation in liquid alternatives and private markets.

    “Given the diversity of our business and the quality of our Affiliates, along with our unique partnership structure, our strong capital position, and our overall financial flexibility, AMG is well-positioned to execute our strategy across all stages of a market cycle, and we are confident in our ability to create meaningful incremental shareholder value over time.”

    FINANCIAL HIGHLIGHTS     Three Months Ended  
    (in millions, except as noted and per share data)     3/31/2024   3/31/2025  
    Operating Performance Measures            
    AUM (at period end, in billions)     $ 699.4     $ 712.2    
    Average AUM (in billions)       680.0       712.1    
    Net client cash flows (in billions)       (3.7 )     (0.4 )  
    Aggregate fees       1,471.6       1,270.4    
    Financial Performance Measures            
    Net income (controlling interest)     $ 149.8     $ 72.4    
    Earnings per share (diluted)(1)       4.14       2.20    
    Supplemental Performance Measures(2)            
    Adjusted EBITDA (controlling interest)     $ 259.8     $ 228.2    
    Economic net income (controlling interest)       186.7       158.7    
    Economic earnings per share       5.37       5.20    
                         

    For additional information on our Supplemental Performance Measures, including reconciliations to GAAP, see the Financial Tables and Notes.

    Capital Management
    During the first quarter of 2025, the Company repurchased approximately $173 million in common stock. The Company also announced a first-quarter cash dividend of $0.01 per share of common stock, payable June 2, 2025 to stockholders of record as of the close of business on May 19, 2025.

    About AMG
    AMG (NYSE: AMG) is a strategic partner to leading independent investment management firms globally. AMG’s strategy is to generate long‐term value by investing in high-quality independent partner-owned firms, through a proven partnership approach, and allocating resources across AMG’s unique opportunity set to the areas of highest growth and return. Through its distinctive approach, AMG magnifies its Affiliates’ existing advantages and actively supports their independence and ownership culture. As of March 31, 2025, AMG’s aggregate assets under management were approximately $712 billion across a diverse range of private markets, liquid alternative, and differentiated long-only investment strategies. For more information, please visit the Company’s website at www.amg.com.

    Conference Call, Replay, and Presentation Information
    A conference call will be held with AMG’s management at 12:00 p.m. Eastern time today. Parties interested in listening to the conference call should dial 1-877-407-8291 (U.S. calls) or 1-201-689-8345 (non-U.S. calls) shortly before the call begins.

    The conference call will also be available for replay beginning approximately one hour after the conclusion of the call. To hear a replay of the call, please dial 1-877-660-6853 (U.S. calls) or 1-201-612-7415 (non-U.S. calls) and provide conference ID 13753083. The live call and replay of the session and a presentation highlighting the Company’s performance can also be accessed via AMG’s website at https://ir.amg.com/.

    Investor and Media Relations: Patricia Figueroa
    +1 (617) 747-3300
    ir@amg.com
    pr@amg.com

    Financial Tables Follow

    ASSETS UNDER MANAGEMENT – STATEMENT OF CHANGES (in billions) 

      Alternatives   Differentiated Long-Only  
    BY STRATEGY – QUARTER TO DATE Private Markets
      Liquid
    Alternatives

        Equities
      Multi-Asset &
    Fixed Income
      Total
     
    AUM, December 31, 2024 $ 135.4   $ 140.7     $ 316.2   $ 115.6   $ 707.9  
    Client cash inflows and commitments   3.5     15.9       8.8     4.8     33.0  
    Client cash outflows   (0.1 )   (5.7 )     (22.5 )   (5.1 )   (33.4 )
    Net client cash flows   3.4     10.2       (13.7 )   (0.3 )   (0.4 )
    New investments   1.7                   1.7  
    Market changes   0.4     2.4       (2.0 )   (0.3 )   0.5  
    Foreign exchange   0.3     1.5       1.7     0.2     3.7  
    Realizations and distributions (net)   (0.9 )   (0.0 )     (0.1 )   (0.1 )   (1.1 )
    Other       0.0       0.0     (0.1 )   (0.1 )
    AUM, March 31, 2025 $ 140.3   $ 154.8     $ 302.1   $ 115.0   $ 712.2  
                                     

    CONSOLIDATED STATEMENTS OF INCOME

      Three Months Ended
    (in millions, except per share data) 3/31/2024   3/31/2025
    Consolidated revenue $ 499.9     $ 496.6  
           
    Consolidated expenses:      
    Compensation and related expenses   240.4       230.3  
    Selling, general and administrative   91.7       94.7  
    Intangible amortization and impairments   7.3       83.3  
    Interest expense   29.9       34.1  
    Depreciation and other amortization   3.0       2.8  
    Other expenses (net)   9.0       11.7  
    Total consolidated expenses   381.3       456.9  
           
    Equity method income (net)(3)   117.5       75.3  
    Investment and other income   18.0       11.6  
    Income before income taxes   254.1       126.6  
           
    Income tax expense   55.4       27.4  
    Net income   198.7       99.2  
           
    Net income (non-controlling interests)   (48.9 )     (26.8 )
    Net income (controlling interest) $ 149.8     $ 72.4  
           
    Average shares outstanding (basic)   32.8       29.2  
    Average shares outstanding (diluted)   40.1       32.6  
           
    Earnings per share (basic) $ 4.56     $ 2.48  
    Earnings per share (diluted)(1) $ 4.14     $ 2.20  
     

    RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES(2)

      Three Months Ended
    (in millions, except per share data) 3/31/2024   3/31/2025
    Net income (controlling interest) $ 149.8     $ 72.4  
    Intangible amortization and impairments   25.6       85.8  
    Intangible-related deferred taxes   16.3       (0.7 )
    Other economic items   (5.0 )     1.2  
    Economic net income (controlling interest) $ 186.7     $ 158.7  
           
    Average shares outstanding (adjusted diluted)   34.8       30.5  
    Economic earnings per share $ 5.37     $ 5.20  
           
    Net income (controlling interest) $ 149.8     $ 72.4  
    Interest expense   29.9       34.1  
    Income taxes   57.4       30.3  
    Intangible amortization and impairments   25.6       85.8  
    Other items   (2.9 )     5.6  
    Adjusted EBITDA (controlling interest) $ 259.8     $ 228.2  
                   

    See Notes for additional information.

    CONSOLIDATED BALANCE SHEETS

      Period Ended
    (in millions) 12/31/2024   3/31/2025
    Assets      
    Cash and cash equivalents $ 950.0     $ 816.5  
    Receivables   409.7       581.7  
    Investments   595.6       592.8  
    Goodwill   2,504.9       2,512.5  
    Acquired client relationships (net)   1,777.8       1,703.9  
    Equity method investments in Affiliates (net)   2,246.6       2,159.5  
    Fixed assets (net)   57.6       56.9  
    Other assets   288.7       290.3  
    Total assets $ 8,830.9     $ 8,714.1  
           
    Liabilities and Equity      
    Payables and accrued liabilities $ 639.1     $ 665.7  
    Debt   2,620.2       2,620.7  
    Deferred income tax liability (net)   520.5       520.5  
    Other liabilities   402.4       442.1  
    Total liabilities   4,182.2       4,249.0  
           
    Redeemable non-controlling interests   350.5       366.1  
    Equity:      
    Common stock   0.6       0.6  
    Additional paid-in capital   733.1       667.8  
    Accumulated other comprehensive loss   (163.6 )     (175.7 )
    Retained earnings   6,899.8       6,971.9  
        7,469.9       7,464.6  
    Less: treasury stock, at cost   (4,124.6 )     (4,276.4 )
    Total stockholders’ equity   3,345.3       3,188.2  
    Non-controlling interests   952.9       910.8  
    Total equity   4,298.2       4,099.0  
    Total liabilities and equity $ 8,830.9     $ 8,714.1  
                   

    Notes

    (1) Earnings per share (diluted) adjusts for the dilutive effect of the potential issuance of incremental shares of our common stock.
       
      We assume the settlement of all of our Redeemable non-controlling interests using the maximum number of shares permitted under our arrangements. The issuance of shares and the related income acquired are excluded from the calculation if an assumed purchase of Redeemable non-controlling interests would be anti-dilutive to diluted earnings per share.
       
      We are required to apply the if-converted method to our outstanding junior convertible securities when calculating Earnings per share (diluted). Under the if-converted method, shares that are issuable upon conversion are deemed outstanding, regardless of whether the securities are contractually convertible into our common stock at that time. For this calculation, the interest expense (net of tax) attributable to these dilutive securities is added back to Net income (controlling interest), reflecting the assumption that the securities have been converted. Issuable shares for these securities and related interest expense are excluded from the calculation if an assumed conversion would be anti-dilutive to diluted earnings per share.
       
      The following table provides a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share:
       

     

        Three Months Ended
      (in millions) 3/31/2024   3/31/2025
      Numerator      
      Net income (controlling interest) $ 149.8   $ 72.4  
      Income (loss) from hypothetical settlement of Redeemable non-controlling interests, net of taxes   13.0     (3.9 )
      Interest expense on junior convertible securities, net of taxes   3.4     3.4  
      Net income (controlling interest), as adjusted $ 166.2   $ 71.9  
      Denominator      
      Average shares outstanding (basic)   32.8     29.2  
      Effect of dilutive instruments:      
      Stock options and restricted stock units   2.0     1.3  
      Hypothetical issuance of shares to settle Redeemable non-controlling interests   3.6     0.4  
      Junior convertible securities   1.7     1.7  
      Average shares outstanding (diluted)   40.1     32.6  
                   
    (2) As supplemental information, we provide non-GAAP performance measures of Adjusted EBITDA (controlling interest), Economic net income (controlling interest), and Economic earnings per share. We believe that many investors use our Adjusted EBITDA (controlling interest) when comparing our financial performance to other companies in the investment management industry. Management utilizes these non-GAAP performance measures to assess our performance before our share of certain non-cash GAAP expenses primarily related to the acquisition of interests in Affiliates and to improve comparability between periods. Economic net income (controlling interest) and Economic earnings per share are used by management and our Board of Directors as our principal performance benchmarks, including as one of the measures for determining executive compensation. These non-GAAP performance measures are provided in addition to, but not as a substitute for, Net income (controlling interest), Earnings per share, or other GAAP performance measures. For additional information on our non-GAAP measures, see our most recent Annual and Quarterly Reports on Form 10-K and 10-Q, respectively, which are accessible on the SEC’s website atwww.sec.gov.
       
      Adjusted EBITDA (controlling interest) represents our performance before our share of interest expense, income and certain non-income based taxes, depreciation, amortization, impairments, gains and losses related to Affiliate Transactions, and non-cash items such as certain Affiliate equity activity, gains and losses on our contingent payment obligations, and unrealized gains and losses on seed capital, general partner commitments, and other strategic investments. Adjusted EBITDA (controlling interest) is also adjusted to include realized economic gains and losses related to these seed capital, general partner commitments, and other strategic investments.
       
      Under our Economic net income (controlling interest) definition, we adjust Net income (controlling interest) for our share of pre-tax intangible amortization and impairments related to intangible assets (including the portion attributable to equity method investments in Affiliates) because these expenses do not correspond to the changes in the value of these assets, which do not diminish predictably over time. We also adjust for deferred taxes attributable to intangible assets because we believe it is unlikely these accruals will be used to settle material tax obligations. Further, we adjust for gains and losses related to Affiliate Transactions, net of tax, and other economic items. Other economic items include certain Affiliate equity activity, gains and losses related to contingent payment obligations, tax windfalls and shortfalls from share-based compensation, unrealized gains and losses on seed capital, general partner commitments, and other strategic investments, and realized economic gains and losses related to these seed capital, general partner commitments, and other strategic investments.
       
      Economic earnings per share represents Economic net income (controlling interest) divided by the Average shares outstanding (adjusted diluted). In this calculation, we exclude the potential shares issued upon settlement of Redeemable non-controlling interests from Average shares outstanding (adjusted diluted) because we intend to settle those obligations without issuing shares, consistent with all prior Affiliate equity purchase transactions. The potential share issuance in connection with our junior convertible securities is measured using a “treasury stock” method. Under this method, only the net number of shares of common stock equal to the value of the junior convertible securities in excess of par, if any, are deemed to be outstanding. We believe the inclusion of net shares under a treasury stock method best reflects the benefit of the increase in available capital resources (which could be used to repurchase shares of our common stock) that occurs when these securities are converted and we are relieved of our debt obligation.
       
      The following table provides a reconciliation of Average shares outstanding (adjusted diluted):
       
        Three Months Ended
      (in millions) 3/31/2024   3/31/2025
      Average shares outstanding (diluted) 40.1     32.6  
      Hypothetical issuance of shares to settle Redeemable non-controlling interests (3.6 )   (0.4 )
      Junior convertible securities (1.7 )   (1.7 )
      Average shares outstanding (adjusted diluted) 34.8     30.5  
                 
    (3) The following table presents pre-tax equity method earnings, equity method intangible amortization and impairments, and equity method income tax, which in aggregate form Equity method income (net):
       
        Three Months Ended
      (in millions) 3/31/2024   3/31/2025
      Pre-tax equity method earnings $ 142.4     $ 99.5  
      Equity method intangible amortization and impairments   (20.8 )     (18.6 )
      Equity method income tax   (4.1 )     (5.6 )
      Equity method income (net) $ 117.5     $ 75.3  
                     

    Forward-Looking Statements and Other Matters

    Certain matters discussed in this press release issued by Affiliated Managers Group, Inc. (“AMG” or the “Company”) may constitute forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “preliminary,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “projects,” “positioned,” “prospects,” “intends,” “plans,” “estimates,” “pending investments,” “anticipates,” or the negative version of these words or other comparable words. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including changes in the securities or financial markets or in general economic conditions, global trade tensions and changes in trade policies, the availability of equity and debt financing, competition for acquisitions of interests in investment management firms, uncertainties relating to closing of pending investments or transactions and potential changes in the anticipated benefits thereof, the investment performance and growth rates of our Affiliates and their ability to effectively market their investment strategies, the mix of Affiliate contributions to our earnings, and other risks, uncertainties, and assumptions, including those described under the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors may be updated from time to time in our periodic filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments, or otherwise, except as required by applicable law.

    This press release does not constitute an offer of any products, investment vehicles, or services of any AMG Affiliate.

    From time to time, AMG may use its website as a distribution channel of material Company information. AMG routinely posts financial and other important information regarding the Company in the Investor Relations section of its website at www.amg.com and encourages investors to consult that section regularly.

    The MIL Network

  • MIL-OSI Europe: Answer to a written question – Addressing the impact of the Carbon Border Adjustment Mechanism on the wind energy sector – E-000774/2025(ASW)

    Source: European Parliament

    The Carbon Border Adjustment Mechanism (CBAM) puts a carbon price on imports that is equivalent to that paid by EU producers under the EU Emissions Trading System (ETS).

    The CBAM thereby addresses the risk of carbon leakage, which could undermine the effectiveness of EU’s climate objectives. This makes the CBAM an essential tool for achieving a climate-neutral Union at the latest by 2050, in line with the Paris Agreement.

    As announced in the Steel and Metals Action Plan of 19 March 2025, the Commission will make a broad review of CBAM by the end of the year. As part of this review, it will make a first legislative proposal extending CBAM to certain downstream products for which there is a risk of carbon leakage.

    To mitigate the costs and administrative burden of the green transition as envisaged by the EU Green Deal, the Commission has taken measures to support EU industries.

    For instance, the Clean Industrial Deal, presented on 26 February 2025, highlights the importance of clean tech, which includes the wind energy sector, in driving future competitiveness, industrial transformation, and decarbonisation.

    The Clean Industrial Deal alone will mobilise over EUR 100 billion to support clean manufacturing in the EU.

    Further, the Commission presented on 26 February 2025 a package of CBAM simplifications, which will facilitate compliance with reporting requirements and simplify the authorisation of declarants, the calculation of emissions, and compliance with the financial liability.

    MIL OSI Europe News

  • MIL-OSI New Zealand: NZ Treasury – Interim Financial Statements of the Government of New Zealand for the nine months ended 31 March 2025

    Source: The New Zealand Treasury

    The Interim Financial Statements of the Government of New Zealand for the nine months ended 31 March 2025 were released by the Treasury today. The March results are reported against forecasts based on the Half Year Economic and Fiscal Update 2024 (HYEFU 2024), published on 17 December 2024, and the results for the same period for the previous year.

    The majority of the key fiscal indicators for the nine months ended 31 March 2025 were better than forecast. The Government’s main operating indicator, the operating balance before gains and losses excluding ACC (OBEGALx), showed a deficit of $6.6 billion. This was $0.5 billion smaller than forecast largely due to lower than forecast core Crown expenditure. Net core Crown debt was $2.1 billion lower than forecast at $182.0 billion, or 42.6% of GDP.

    Core Crown tax revenue, at $89.5 billion, was $0.2 billion (0.2%) higher than forecast. While GST and other individuals’ tax were both above forecast by $0.5 billion each, this was broadly offset by source deductions and corporate tax which were below forecast by $0.5 billion and $0.3 billion, respectively.

    Core Crown expenses, at $104.1 billion, were $0.6 billion (0.5%) below forecast. This variance included some significant offsetting variances and was mostly timing in nature. In particular, core government services expenses were $0.6 billion above forecast, while transport and housing expenses were $0.6 billion and $0.3 billion below forecast, respectively. The remaining variance was spread across a range of agencies.

    The OBEGALx was a deficit of $6.6 billion, $0.5 billion less than the forecast deficit. When including the revenue and expenses of ACC, the OBEGAL deficit was $8.4 billion, $0.4 billion less than the forecast deficit.

    The operating balance deficit of $4.5 billion was $0.8 billion higher than the forecast deficit. This reflected net unfavourable valuation movements along with the favourable OBEGAL result. Net gains on financial instruments were $4.0 billion lower than forecast, driven by the performance of the New Zealand Superannuation Fund (NZS Fund) and ACC’s investment portfolios. This unfavourable variance was partly offset by net losses on non-financial instruments being $2.6 billion less than forecast. This was largely owing to a $0.7 billion net actuarial gain on ACC’s outstanding claims liability compared to a forecast net loss of $1.0 billion, and the New Zealand Emissions Trading Scheme with net losses being $0.9 billion lower than forecast.

    The core Crown residual cash deficit of $5.3 billion was $1.7 billion lower than forecast. While net operating cash flows were broadly in line with forecast, net core Crown capital cash outflows were $1.5 billion lower than forecast. This variance is expected to be timing in nature, mainly owing to net purchases of investments and net increases in advances which were both below forecast by $0.6 billion and $0.7 billion, respectively.

    Net core Crown debt at $182.0 billion (42.6% of GDP) was $2.1 billion lower than forecast. This variance was largely due to the variance in core Crown residual cash deficit and the factors not impacting residual cash which improved net core Crown debt. Of these factors, the most significant was foreign exchange movements since the HYEFU 2024 forecast which have resulted in $0.5 billion of net gains improving net core Crown debt without impacting the core Crown residual cash indicator.

    Gross debt at $206.0 billion (48.3% of GDP) was $0.5 billion higher than forecast, largely owing to higher than forecast government stock, partially offset by lower than forecast Treasury bills.

    Net worth at $183.8 billion (43.1% of GDP) was $0.3 billion lower than forecast. The variance to forecast reflects a higher operating balance deficit discussed above, partially offset by net actuarial gains on retirement plan schemes ($0.5 billion). Net worth consisted of total Crown assets of $594.7 billion (in line with forecast) and total Crown liabilities of $410.9 billion ($0.3 billion higher than forecast).


          

      Year to date Full Year
    March
    2025
    Actual1
    $m
    March 
    2025
    HYEFU 2024
    Forecast1
    $m
    Variance2
    HYEFU 2024
    $m
    Variance
    HYEFU 2024
    %
    June
    2025
    HYEFU 2024
    Forecast3
    $m
    Core Crown tax revenue 89,478 89,278 200 0.2 120,623
    Core Crown revenue 99,124 99,152 (28) –  134,038
    Core Crown expenses 104,088 104,662 574 0.5 144,638
    Core Crown residual cash (5,297) (7,018) 1,721 24.5 (16,610)
    Net core Crown debt4 181,984 184,121 2,137 1.2 192,810
              as a percentage of GDP 42.6% 43.1%     45.1%
    Gross debt 205,997 205,456 (541) (0.3) 206,558
              as a percentage of GDP 48.3% 48.1%     48.3%
    OBEGAL excluding ACC (OBEGALx) (6,589) (7,118) 529 7.4 (12,868)
    OBEGAL (8,370) (8,774) 404 4.6 (17,317)
    Operating balance (excluding minority interests) (4,484) (3,656) (828) (22.6) (10,161)
    Net worth 183,815 184,118 (303) (0.2) 177,492
              as a percentage of GDP 43.1% 43.1%     41.5%
    1. Using the most recently published GDP (for the year ended 31 December 2024) of $426,925 million (Source: Stats NZ).
    2. Favourable variances against forecast have a positive sign and unfavourable variances against forecast have a negative sign.
    3. Using HYEFU 2024 forecast GDP for the year ending 30 June 2025 of $427,252 million (Source: The Treasury).
    4. 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

  • MIL-OSI: OTC Markets Group Reports First Quarter 2025 Financial Results Delivering Revenue and Operating Income Growth

    Source: GlobeNewswire (MIL-OSI)

    First Quarter 2025 Highlights:

    • Gross revenues of $30.4 million for the quarter, up 10% versus the prior year period
    • Operating income of $7.3 million for the quarter, up 9% versus the prior year period
    • Operating profit margin of 24.7%, versus 25.0% for the prior year period
    • Net income of $6.0 million, up 1% versus the prior year period, and quarterly diluted GAAP EPS of $0.50, up 2%
    • Total cash returned to shareholders during the quarter of $5.1 million, comprised of dividends of $2.2 million and repurchases of common stock of $2.9 million
    • Announcing second quarter 2025 dividend of $0.18 per share
    • 548 OTCQX®and 1,051 OTCQB®companies at quarter end
    • 14 graduates to a national securities exchange during the quarter
    • 116 subscribers to OTC Link ECN as of March 31, 2025, up 4 versus March 31, 2024
    • 141 unique OTC Link subscribers as of March 31, 2025, up 6 versus March 31, 2024
    • Approximately 56,000 average daily trades during the quarter versus approximately 34,000 during the prior year period
    • OTC Markets Group announced that in July 2025, it will launch OTCIDTM– a Basic Reporting Market for companies that meet a minimal current information standard and provide a management certification. The Pink Current Market will cease to exist

    NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) — OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced its financial results for the first quarter of 2025.

    “During the first quarter of 2025, we remained focused on overnight trading and the launch of the OTCID Basic Market,” said R. Cromwell Coulson, President and Chief Executive Officer. “We continued to certify and connect subscribers to MOON ATSTM and OTC OvernightTM, and open distribution channels for our overnight data feeds. We are in constant communication with issuers, advisors, investors and our broker-dealer community as we move towards the July 1st OTCID launch date. We believe these key initiatives will increase the value of our regulated trading platforms for broker-dealers and improve the quality of our markets for investors.”

    “Our first quarter results highlighted the value of our diversified revenue streams and synergistic business lines,” said Antonia Georgieva, Chief Financial Officer. “OTC Link revenues increased, supported by higher trading volume, with price increases and subscriber growth driving Market Data Licensing revenue growth. Our Corporate Services business saw sales improve but experienced a small decline in revenues due to a lower number of companies across our markets. We remain focused on our key initiatives and on driving growth in users and usage of our products.”

    First Quarter 2025 compared to First Quarter 2024

    Financial Highlights

        Three Months Ended March 31,        
    (in thousands, except shares and per share data)     2025       2024     % change   $ change
    OTC Link   $ 6,563     $ 5,397     22 %   1,166  
    Market data licensing     12,783       11,088     15 %   1,695  
    Corporate services     11,080       11,172     (1 %)   ( 92 )
    Gross Revenues     30,426       27,657     10 %   2,769  
    Net revenues     29,432       26,817     10 %   2,615  
    Revenues less transaction-based expenses     27,057       25,309     7 %   1,748  
    Operating expenses     19,783       18,610     6 %   1,173  
    Income from operations     7,274       6,699     9 %   575  
    Operating profit margin     24.7 %     25.0 %        
    Income before provision for income taxes     7,424       6,874     8 %   550  
    Net income   $ 6,040     $ 5,984     1 %   56  
                     
    Diluted earnings per share   $ 0.50     $ 0.49     2 %    
    Adjusted diluted earnings per share   $ 0.81     $ 0.76     7 %    
    Weighted-average shares outstanding, diluted     11,834,071       11,863,089          
                     
    • Gross revenues of $30.4 million, up 10% over the prior year quarter. Revenues less transaction-based expenses up 7%.
    • OTC Link revenues up 22%. Transaction-based revenues from OTC Link ECN and OTC Link NQB up 46% due to a higher volume of shares traded on those platforms. Contributing to the overall increase in OTC Link revenues were an increase in certain connectivity revenue due to growth in the number of connection licenses and higher QAP service revenue related to the higher volume of trading activity.
    • Market Data Licensing revenues up 15%. Redistributor-based revenues increased 19%, with professional user revenues increasing 20%, and non-professional user revenues increasing 45% quarter over quarter. Revenues from direct sold licenses increased 22% primarily due to price increases and growth in subscribers as well as certain one-time revenue recognized during the quarter. Revenues from data and compliance solutions declined slightly at 1%, with lower revenue from EDGAR Online partially offset by increases in revenues from data services and our Blue Sky data product.
    • Corporate Services revenues down 1%. Revenues from our OTCQB market declined 2%, reflecting a lower number of companies on the OTCQB market, offsetting price increases effective from the beginning of the year. Revenues from our OTCQX market and our Disclosure & News Service® (“DNS”) product increased 1% and 2%, respectively, in each case due to price increases offsetting a lower number of companies on the OTCQX markets or subscribing to DNS.
    • Operating expenses increased 6%. The increase was primarily driven by a 3% increase in compensation and benefits, 33% increase in professional and consulting fees, and 34% increase in general, administrative and other, primarily due to higher bad debt.
    • Operating income increased 9% and net income increased 1%, to $7.3 million and $6.0 million, respectively.
    • Adjusted EBITDA, which excludes non-cash stock-based compensation expense, increased 7% to $9.8 million, or $0.81 per adjusted diluted share.

    Dividend Declaration – Quarterly Cash Dividend

    OTC Markets Group announced today that its Board of Directors authorized and approved a quarterly cash dividend of $0.18 per share of Class A Common Stock. The quarterly cash dividend is payable on June 18, 2025, to stockholders of record on June 4, 2025. The ex-dividend date is June 4, 2025.

    Stock Buyback Program

    The Company is authorized to purchase shares from time to time on the open market, from employees and consultants, and through block trades, in compliance with applicable law. During the first quarter of 2025, the Company purchased 55,522 shares at an average price of $52.8575 per share.

    On March 11, 2025, the Board of Directors refreshed the Company’s stock repurchase program, giving the Company authorization to repurchase up to 300,000 shares of the Company’s Class A Common Stock.

    Non-GAAP Financial Measures

    In addition to disclosing results prepared in accordance with GAAP, the Company also discloses certain non-GAAP results of operations, including adjusted EBITDA and adjusted diluted earnings per share that either exclude or include amounts that are described in the reconciliation table of GAAP to non-GAAP information provided at the end of this release. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results but are provided to improve overall understanding of the Company’s current financial performance. Management believes that this non-GAAP information is useful to both management and investors regarding certain additional financial and business trends related to the operating results. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance.

    First Quarter 2025 Conference Call

    The Company will host a conference call and webcast on Thursday, May 8, 2025, at 8:30 a.m. Eastern Time, during which management will discuss the financial results in further detail. The call and webcast may be accessed as follows:

    Webcast:
    The conference webcast and management presentation can be accessed at the following link (replay available until May 7, 2026):

    https://edge.media-server.com/mmc/p/5vwtdq3q

    Live Call:
    Participants intending to ask a question during the live call and Q&A session should also register in advance at:

    https://register-conf.media-server.com/register/BI6b79867bad5f4586a7cd407f82eecd3b

    Upon registration, participants will receive a dial-in number along with a unique PIN number that can be used to access the live call. Live call participants may also select a “Call Me” option.

    The Quarterly Report, earnings release, transcript of the earnings call, and management presentation will also be available in the Investor Relations section of the corporate website at

    https://www.otcmarkets.com/about/investor-relations.

    About OTC Markets Group Inc.

    OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market and Pink® Open Market.

    Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets.

    OTC Link ATS, OTC Link ECN, OTC Link NQB, and MOON ATS are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.

    To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

    Investor Contact:

    Antonia Georgieva
    Chief Financial Officer
    Phone: (212) 220-2215
    Email: ir@otcmarkets.com

    Media Contact:

    OTC Markets Group Inc.
    Phone: (212) 896-4428
    Email: media@otcmarkets.com

           
    OTC MARKETS GROUP INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (in thousands, except share and per share information)
           
      Three Months Ended March 31,
        2025       2024  
    OTC Link $ 6,563     $ 5,397  
    Market data licensing   12,783       11,088  
    Corporate services   11,080       11,172  
    Gross revenues   30,426       27,657  
    Redistribution fees and rebates   (994 )     (840 )
    Net revenues   29,432       26,817  
    Transaction-based expenses   (2,375 )     (1,508 )
    Revenues less transaction-based expenses   27,057       25,309  
    Operating expenses      
    Compensation and benefits   12,906       12,522  
    IT Infrastructure and information services   2,715       2,699  
    Professional and consulting fees   1,956       1,466  
    Marketing and advertising   343       263  
    Occupancy costs   638       585  
    Depreciation and amortization   660       653  
    General, administrative and other   565       422  
    Total operating expenses   19,783       18,610  
    Income from operations   7,274       6,699  
    Other income      
    Other income   150       175  
    Income before provision for income taxes   7,424       6,874  
    Provision for income taxes   1,384       890  
    Net Income $ 6,040     $ 5,984  
           
    Earnings per share      
    Basic $ 0.50     $ 0.50  
    Diluted $ 0.50     $ 0.49  
           
    Basic weighted average shares outstanding   11,756,815       11,705,383  
    Diluted weighted average shares outstanding   11,834,071       11,863,089  
           
           
    Non-GAAP Reconciliation      
      Three Months Ended March 31,
        2025       2024  
    Net Income $ 6,040     $ 5,984  
    Excluding:      
    Interest expense (income)   (149 )     (175 )
    Provision for income taxes   1,384       890  
    Depreciation and amortization   660       653  
    Stock-based compensation expense   1,881       1,826  
    Adjusted EBITDA $ 9,816     $ 9,178  
           
    Adjusted diluted earnings per share $ 0.81     $ 0.76  
           
    Note: We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results, but are provided to improve overall understanding of the Company’s current financial performance.
           
    OTC MARKETS GROUP INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except share information)
           
      March 31,   December 31,
        2025       2024  
    Assets      
    Current assets      
    Cash and cash equivalents $ 29,016     $ 34,522  
    Short-term investments   3,871       4,513  
    Accounts receivable, net of allowance for credit losses of $462 and $326   9,268       8,097  
    Prepaid income taxes   430       244  
    Prepaid expenses and other current assets   2,771       2,237  
    Total current assets   45,356       49,613  
    Property and equipment, net   6,697       7,096  
    Operating lease right-of-use assets   10,597       10,951  
    Deferred tax assets, net   10,573       10,120  
    Goodwill   3,984       3,984  
    Intangible assets, net   6,684       6,829  
    Long-term restricted cash   1,606       1,606  
    Other assets   553       543  
    Total Assets $ 86,050     $ 90,742  
           
    Liabilities and stockholders’ equity      
    Current liabilities      
    Accounts payable $ 854     $ 1,175  
    Income taxes payable   1,457       54  
    Accrued expenses and other current liabilities   7,388       13,425  
    Deferred revenue   27,001       29,084  
    Total current liabilities   36,700       43,738  
    Income tax reserve   962       927  
    Operating lease liabilities   9,964       10,360  
    Total Liabilities   47,626       55,025  
    Commitments and contingencies      
    Stockholders’ equity      
    Common stock – par value $0.01 per share      
    Class A – 17,000,000 authorized, 12,904,727 issued, 12,013,295 outstanding at      
    March 31, 2025; 12,815,075 issued, 11,979,165 outstanding at December 31, 2024   129       128  
    Additional paid-in capital   36,889       35,127  
    Retained earnings   27,078       23,200  
    Treasury stock – 891,432 shares at March 31, 2025 and 835,910 shares at December 31, 2024   (25,672 )     (22,738 )
    Total Stockholders’ Equity   38,424       35,717  
    Total Liabilities and Stockholders’ Equity $ 86,050     $ 90,742  

    The MIL Network

  • MIL-OSI: Ring Energy Announces First Quarter 2025 Results and Provides Updated 2025 Outlook

    Source: GlobeNewswire (MIL-OSI)

    THE WOODLANDS, Texas, May 07, 2025 (GLOBE NEWSWIRE) — Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial results for first quarter 2025 and provided updated guidance for the second half of the year.

    First Quarter 2025 Highlights

    • Sold 12,074 barrels of oil per day (“Bo/d”) (> high end of guidance) and 18,392 barrels of oil equivalent per day (“Boe/d”) (> mid point of guidance);
    • Reported net income of $9.1 million, or $0.05 per diluted share, and Adjusted Net Income1 of $10.7 million, or $0.05 per diluted share;
    • Recorded Adjusted EBITDA1 of $46.4 million and Lease Operating Expense (“LOE”) of $11.89 per Boe (< mid point of guidance);
    • Invested $32.5 million in capital expenditures (within guidance, excluding acquisitions) that was 14% lower than 4Q 2024
    • Generated Adjusted Cash Flow from Operations1 of $38.2 million and Adjusted Free Cash Flow (“AFCF”)1 of $5.8 million;
    • Remained cash flow positive for the 22nd consecutive quarter and had liquidity of $141.1 million at the end of the period;
    • Completed highly-accretive acquisition of Central Basin Platform (“CBP”) assets from Lime Rock Resources IV, LP (“Lime Rock’) on March 31, 2025 with operations to date exceeding expectations; and
    • Provided updated guidance for the remainder of 2025, which reflects more than a 47% decrease in capital spending from original guidance for time period 2Q to 4Q 2025.

    Management Commentary

    Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “We’re excited to kick off 2025 with a strong first quarter, showcasing the flexibility, resilience, and strength of our proven, value-focused strategy amid fluctuating oil prices. Our performance met or surpassed all guidance targets, driven by exceptional oil sales volumes. As shared earlier, this success stemmed from the outperformance of our newly drilled wells and the tireless dedication of our operations team, who kept our PDP assets running at peak efficiency. On the final day of the quarter, we closed the highly accretive acquisition of Lime Rock’s CBP assets, which are outperforming the forecasts originally used to value them, adding more value to our portfolio. To set the stage for this synergistic transaction, we strategically adjusted the timing of our drilling program and capital spending initiatives, optimizing our financial position and reinforcing our balance sheet. With this strong foundation, we’re poised to continue delivering value to our stockholders despite the uncertainties currently facing our industry.”

    Mr. McKinney concluded, “We have been looking forward to sharing more about our proactive approach to navigating the recent dip in oil prices, showcasing the strength of our value-focused strategy. As previously announced, we’ve strategically reduced our second quarter capital spending by over 50%, while maintaining our sales volume guidance. Looking ahead, our updated full-year guidance reflects a 36% reduction in capital spending with only a 5% reduction to sales volumes, made possible by the exceptional performance of both our existing and newly acquired assets so far this year. This represents a 2% increase of year-over-year total sales. Should oil prices rise later in the year, we’re positioned to accelerate our debt reduction efforts, channeling the benefits of higher prices into strengthening our balance sheet. This disciplined approach highlights our proven strategy. We’re committed to delivering value for our stockholders and are deeply grateful for your trust and investment in Ring Energy as we build a brighter, more resilient future together.”

    Summary Results and Additional Key Items

      Q1 2025 Q4 2024 Q1 2025
    to Q
    4 2024
    % Change
    Q1 2024 Q1 2025
    to Q
    1 2024
    % Change
    Average Daily Sales Volumes (Boe/d) 18,392 19,658 (6)% 19,034 (3)%
    Crude Oil (Bo/d) 12,074 12,916 (7)% 13,394 (10)%
    Net Sales (MBoe) 1,655.3 1,808.5 (8)% 1,732.1 (4)%
    Realized Price – All Products ($/Boe) $47.78 $46.14 4% $54.56 (12)%
    Realized Price – Crude Oil ($/Bo) $70.40 $68.98 2% $75.72 (7)%
    Revenues ($MM) $79.1 $83.4 (5)% $94.5 (16)%
    Net Income ($MM) $9.1 $5.7 60% $5.5 65%
    Adjusted Net Income1 ($MM) $10.7 $12.3 (13)% $20.3 (47)%
    Adjusted EBITDA1 ($MM) $46.4 $50.9 (9)% $62.0 (25)%
    Capital Expenditures ($MM) $32.5 $37.6 (14)% $36.3 (10)%
    Adjusted Free Cash Flow1 ($MM) $5.8 $4.7 23% $15.6 (63)%


    Adjusted Net Income, Adjusted EBITDA, and Adjusted Free Cash Flow
    are non-GAAP financial measures, which are described in more detail and reconciled to the most comparable GAAP measures, in the tables shown later in this release under “Non-GAAP Financial Information.” In addition, see section titled “Condensed Operating Data” for additional details concerning costs and expenses discussed below.

    Sales volumes for 1Q 2025 were 18,392 Boe/d (66% oil, 18% natural gas liquids (“NGLs”) and 16% natural gas) versus 4Q 2024 sales volumes of 19,658 Boe/d (66% oil, 19% NGLs and 15% natural gas) and 1Q 2024 sales volumes of 19,034 Boe/d (70% oil, 15% NGLs and 15% natural gas).

    Average realized sales prices for 1Q 2025 were $70.40 per barrel of crude oil, $(0.19) per Mcf of natural gas, and $9.65 per barrel of NGLs. The realized natural gas and NGL prices were impacted by increased fees resulting in lower realized prices. The weighted average natural gas price per Mcf was $1.86 and the weighted average fee per Mcf was $(2.05); the weighted average NGL price per barrel was $22.64 offset by a weighted average fee per barrel of $(12.99). The weighted average natural gas price for 1Q 2025 reflects continued natural gas product takeaway constraints, which are being alleviated through additional third-party pipeline capacity. The average oil price differential the Company experienced from NYMEX WTI (“West Texas Intermediate”) futures pricing in 1Q 2025 was a negative $0.89 per barrel of crude oil, while the average natural gas price differential from NYMEX futures pricing was a negative $3.81 per Mcf.

    Revenues were $79.1 million for 1Q 2025 compared to $83.4 million for 4Q 2024 and $94.5 million for 1Q 2024. The 5% decrease in 1Q 2025 revenues from 4Q 2024 was driven by a negative $7.3 million volume variance offset by a positive $3.0 million price variance.

    Select Expenses and Other Items

      Q1 2025 Q4 2024 Q1 2025
    to Q
    4 2024
    % Change
    Q1 2024 Q1 2025
    to Q
    1 2024
    % Change
    Lease operating expenses (“LOE”) ($MM) $19.7 $20.3 (3)% $18.4 7%
    Lease operating expenses ($/BOE) (1) $11.89 $11.24 6% $10.60 12%
    Depreciation, depletion and amortization ($MM) $22.6 $24.5 (8)% $23.8 (5)%
    Depreciation, depletion and amortization ($/BOE) $13.66 $13.57 1% $13.74 (1)%
    General and administrative expenses (“G&A”) ($MM) $8.6 $8.0 8% $7.5 15%
    General and administrative expenses ($/BOE) $5.21 $4.44 17% $4.31 21%
    G&A excluding share-based compensation ($MM) $6.9 $6.4 8% $5.7 (21)%
    G&A excluding share-based compensation ($/BOE) $4.19 $3.52 19% $3.32 26%
    G&A excluding share-based compensation & transaction costs ($MM) $6.9 $6.3 10% $5.7 21%
    G&A excluding share-based compensation & transaction costs ($/BOE) $4.18 $3.51 19% $3.32 26%
    Interest expense ($MM) (2) $9.5 $10.1 (6)% $11.5 (17)%
    Interest expense ($/BOE) $5.74 $5.59 3% $6.64 (14)%
    Gain (loss) on derivative contracts ($MM) (3) $(0.9) $(6.3) 85% $(19.0) 95%
    Realized gain (loss) on derivative contracts ($MM) $(0.5) $0.7 (171)% $(1.4) 64%
    Unrealized gain (loss) on derivative contracts ($MM) $(0.4) $(7.0) 94% $(17.6) 98%

    (1) LOE was within the Company’s guidance of $11.75 to $12.25 per Boe for 1Q 2025.

    (2) The decline in interest expense from prior quarters was due to lower interest rates and reduced borrowings on the credit facility.

    (3) A summary listing of the Company’s outstanding derivative positions at March 31, 2025 is included in the tables shown later in this release. For the remainder (April through December) of 2025, the Company has approximately 1.7 million barrels of oil (approximately 47% of oil sales guidance midpoint) hedged at an average downside protection price of $64.44 and approximately 2.0 billion cubic feet of natural gas (approximately 37% of natural gas sales guidance midpoint) hedged at an average downside protection of $3.43.

    Capital Investment

    During 1Q 2025, capital expenditures for the Company’s drilling and development activities were $32.5 million, which was within the Company’s guidance of $26 million to $34 million. Ring also invested approximately $70.9 million for the Lime Rock Acquisition that closed on March 31, 2025 (including the $63.6 million cash payment at closing, the $5.0 million deposit payment made in February, and $2.3 million in direct transaction costs).

    Drilling and Development

    Ring drilled, completed, and placed on production seven wells. In the Northwest Shelf in Yoakum County, Ring drilled and completed three 1-mile horizontal wells and one 1.25-mile horizontal well, all with a working interest of 75%. In the CBP in Ector County, the Company drilled and completed three vertical wells, all with a working interest of 100%.

    Quarter   Area   Wells Drilled   Wells Completed
                 
    1Q 2025   Northwest Shelf (Horizontal)   4   4
        Central Basin Platform (Horizontal)    
        Central Basin Platform (Vertical)   3   3
        Total   7   7


    Acquisition – CBP Assets of Lime Rock

    During 1Q 2025, Ring completed the acquisition of CBP assets from Lime Rock. Those properties are located in the Permian Basin in Andrews County, Texas, and are focused on the development of approximately 17,700 net acres where the majority are similar to Ring’s existing CBP assets in the Shafter Lake area, and the remaining acreage exposes the Company to new active plays.

    The key transaction highlights include:

    • Highly Accretive: ~2,300 Boe/d (>75% oil) of low-decline net production from ~101 gross wells;
    • Increased Scale and Operational Synergies: ~17,700 net acres (100% HBP) mostly contiguous to Ring’s existing footprint;
    • Meaningful AFCF Generation: Supported by $121 million of oil-weighted reserves (based on NYMEX strip pricing as of February 19, 2025; and
    • Strengthens High-Return Inventory Portfolio: >40 gross locations that immediately compete for capital.

    After taking into account preliminary purchase price adjustments, consideration for the acquisition consisted of:

    • A cash payment of approximately $63.6 million net of the $5.0 million deposit payment made in February;
    • $10.0 million deferred cash payment due on or about December 31, 2025; and
    • The issuance of approximately 6.5 million shares of common stock.

    The cash payment at closing on March 31, 2025 was funded with cash on hand and borrowings under Ring’s senior revolving credit facility.

    Balance Sheet and Liquidity

    Total liquidity (defined as cash and cash equivalents plus borrowing base availability under the Company’s credit facility) at March 31, 2025 was approximately $141.1 million, consisting of $140.0 million of availability under Ring’s revolving credit facility, which included a reduction of $35 thousand for letters of credit, and $1.1 million in cash and cash equivalents. On March 31, 2025, the Company had $460 million in borrowings outstanding on its credit facility that has a current borrowing base of $600 million and reflects the draw on the revolving credit facility to fund the Lime Rock Acquisition. The Company is targeting continued debt reduction, dependent on market conditions, the timing and level of capital spending, and other considerations.

    Second Half of 2025 Sales Volumes, Capital Investment and Operating Expense Guidance

    Ring’s 2025 development program has been updated to reflect a reduction in capital spending in response to the weakened price environment. For full year 2025, Ring now expects total capital spending of $85 million to $113 million (versus $138 million to $170 million previously disclosed). In addition to wells that the Company plans to drill and complete, the full year capital spending program includes funds for targeted well recompletions, capital workovers, infrastructure upgrades, reactivations, and leasing costs, as well as non-operated drilling, completion, capital workovers, and facility improvements.

    All projects and estimates are based on assumed WTI oil prices of $50 to $70 per barrel and Henry Hub prices of $3.00 to $4.00 per Mcf. As in the past, Ring has designed its spending program with flexibility to respond to changes in commodity prices and other market conditions as appropriate.

    Based on the $99 million midpoint of spending guidance, the Company continues to expect the following estimated allocation of capital, including:

    • 61% for drilling, completion, and related infrastructure;
    • 33% for recompletions and capital workovers;
    • 4% for facility improvements (environmental and emission reducing upgrades); and
    • 2% for land, non-operated capital, and other.

    The guidance in the table below represents the Company’s current good faith estimate of the range of likely future results. Guidance could be affected by the factors discussed below in the “Safe Harbor Statement” section.

        Q2 2H
        2025 2025
    Sales Volumes:      
    Total Oil (Bo/d)   13,700 – 14,700 12,500 – 14,000
    Midpoint (Bo/d)   14,200 13,250
    Total (Boe/d)   20,500 – 22,500 19,000 – 21,000
    Midpoint (Boe/d)   21,500 20,000
    Oil (%)   66% 66%
    NGLs (%)   18% 18%
    Gas (%)   16% 16%
           
    Capital Program:      
    Capital spending(1) (millions)   $14 – $22 $38 – $58
    Midpoint (millions)   $18 $48
    New Hz and vertical wells (2)   2 – 3 11 – 13
    Recompletions and CTRs   6 – 8 17 – 22
           
    Operating Expenses:      
    LOE (per Boe)   $11.50 – $12.50 $11.50 – $12.50
    Midpoint (per Boe)   $12.00 $12.00


    (1)
    In addition to Company-directed drilling and completion activities, the capital spending outlook includes funds for targeted well recompletions, capital workovers, infrastructure upgrades, and well reactivations. Also included is anticipated spending for leasing acreage; and non-operated drilling, completion, capital workovers, and facility improvements.
    (2) Includes wells drilled, completed, and placed online.

    Conference Call Information

    Ring will hold a conference call on Thursday, May 8, 2025 at 12:00 p.m. ET (11 a.m. CT) to discuss its 1Q 2025 operational and financial results. An updated investor presentation will be posted to the Company’s website prior to the conference call.

    To participate in the conference call, interested parties should dial 833-953-2433 at least five minutes before the call is to begin. Please reference the “Ring Energy 1Q 2025 Earnings Conference Call”. International callers may participate by dialing 412-317-5762. The call will also be webcast and available on Ring’s website at www.ringenergy.com under “Investors” on the “News & Events” page. An audio replay will also be available on the Company’s website following the call.

    About Ring Energy, Inc.

    Ring Energy, Inc. is an oil and gas exploration, development, and production company with current operations focused on the development of its Permian Basin assets. For additional information, please visit www.ringenergy.com

    Safe Harbor Statement

    This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitation, statements with respect to the Company’s strategy and prospects. The forward-looking statements include statements about the expected future reserves, production, financial position, business strategy, revenues, earnings, costs, capital expenditures and debt levels of the Company, expected benefits to the Company and its stockholders from the Lime Rock Acquisition, and plans and objectives of management for future operations. Forward-looking statements also include assumptions and projections for second quarter and full year 2025 guidance for sales volumes, oil mix as a percentage of total sales, capital expenditures, operating expenses and the projected impacts thereon, and the number of wells expected to be drilled and completed. Forward-looking statements are based on current expectations and assumptions and analyses made by Ring and its management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: declines in oil, natural gas liquids or natural gas prices; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities particularly in the winter; the timing of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; risks related to level of indebtedness and periodic redeterminations of the borrowing base and interest rates under the Company’s credit facility; Ring’s ability to generate sufficient cash flows from operations to meet the internally funded portion of its capital expenditures budget; the impacts of hedging on results of operations; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers, and any resulting trade tensions; cost and availability of transportation and storage capacity as a result of oversupply, government regulation or other factors; and Ring’s ability to replace oil and natural gas reserves. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the Securities and Exchange Commission (“SEC”), including its Form 10-K for the fiscal year ended December 31, 2024, and its other SEC filings. Ring undertakes no obligation to revise or update publicly any forward-looking statements, except as required by law.

    Contact Information

    Al Petrie Advisors
    Al Petrie, Senior Partner
    Phone: 281-975-2146
    Email: apetrie@ringenergy.com

     
    RING ENERGY, INC. 
    Condensed Statements of Operations 
    (Unaudited)
     
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
                 
    Oil, Natural Gas, and Natural Gas Liquids Revenues   $ 79,091,207     $ 83,440,546     $ 94,503,136  
                 
    Costs and Operating Expenses            
    Lease operating expenses     19,677,552       20,326,216       18,360,434  
    Gathering, transportation and processing costs     203,612       130,230       166,054  
    Ad valorem taxes     1,532,108       2,421,595       2,145,631  
    Oil and natural gas production taxes     3,584,455       3,857,147       4,428,303  
    Depreciation, depletion and amortization     22,615,983       24,548,849       23,792,450  
    Asset retirement obligation accretion     326,549       323,085       350,834  
    Operating lease expense     175,091       175,090       175,091  
    General and administrative expense     8,619,976       8,035,977       7,469,222  
                 
    Total Costs and Operating Expenses     56,735,326       59,818,189       56,888,019  
                 
    Income from Operations     22,355,881       23,622,357       37,615,117  
                 
    Other Income (Expense)            
    Interest income     90,058       124,765       78,544  
    Interest (expense)     (9,498,786 )     (10,112,496 )     (11,498,944 )
    Gain (loss) on derivative contracts     (928,790 )     (6,254,448 )     (19,014,495 )
    Gain (loss) on disposal of assets     124,610             38,355  
    Other income     8,942       80,970       25,686  
    Net Other Income (Expense)     (10,203,966 )     (16,161,209 )     (30,370,854 )
                 
    Income Before Benefit from (Provision for) Income Taxes     12,151,915       7,461,148       7,244,263  
                 
    Benefit from (Provision for) Income Taxes     (3,041,177 )     (1,803,629 )     (1,728,886 )
                 
    Net Income (Loss)   $ 9,110,738     $ 5,657,519     $ 5,515,377  
                 
    Basic Earnings (Loss) per Share   $ 0.05     $ 0.03     $ 0.03  
    Diluted Earnings (Loss) per Share   $ 0.05     $ 0.03     $ 0.03  
                 
    Basic Weighted-Average Shares Outstanding     199,314,182       198,166,543       197,389,782  
    Diluted Weighted-Average Shares Outstanding     201,072,594       200,886,010       199,305,150  
                             
    RING ENERGY, INC.
    Condensed Operating Data
    (Unaudited)
     
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
                 
    Net sales volumes:            
    Oil (Bbls)     1,086,694       1,188,272       1,218,837  
    Natural gas (Mcf)     1,615,196       1,683,793       1,496,507  
    Natural gas liquids (Bbls)     299,366       339,589       263,802  
    Total oil, natural gas and natural gas liquids (Boe)(1)     1,655,259       1,808,493       1,732,057  
                 
    % Oil     66 %     66 %     70 %
    % Natural Gas     16 %     15 %     15 %
    % Natural Gas Liquids     18 %     19 %     15 %
                 
    Average daily sales volumes:            
    Oil (Bbls/d)     12,074       12,916       13,394  
    Natural gas (Mcf/d)     17,947       18,302       16,445  
    Natural gas liquids (Bbls/d)     3,326       3,691       2,899  
    Average daily equivalent sales (Boe/d)     18,392       19,658       19,034  
                 
    Average realized sales prices:            
    Oil ($/Bbl)   $ 70.40     $ 68.98     $ 75.72  
    Natural gas ($/Mcf)     (0.19 )     (0.96 )     (0.55 )
    Natural gas liquids ($/Bbls)     9.65       9.08       11.47  
    Barrel of oil equivalent ($/Boe)   $ 47.78     $ 46.14     $ 54.56  
                 
    Average costs and expenses per Boe ($/Boe):            
    Lease operating expenses   $ 11.89     $ 11.24     $ 10.60  
    Gathering, transportation and processing costs     0.12       0.07       0.10  
    Ad valorem taxes     0.93       1.34       1.24  
    Oil and natural gas production taxes     2.17       2.13       2.56  
    Depreciation, depletion and amortization     13.66       13.57       13.74  
    Asset retirement obligation accretion     0.20       0.18       0.20  
    Operating lease expense     0.11       0.10       0.10  
    G&A (including share-based compensation)     5.21       4.44       4.31  
    G&A (excluding share-based compensation)     4.19       3.52       3.32  
    G&A (excluding share-based compensation and transaction costs)     4.18       3.51       3.32  
                             

    (1) Boe is determined using the ratio of six Mcf of natural gas to one Bbl of oil (totals may not compute due to rounding.) The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, natural gas, and natural gas liquids may differ significantly.

     
    RING ENERGY, INC.
    Condensed Balance Sheet 
    (Unaudited)
        As of
        March 31, 2025   December 31, 2024
    ASSETS        
    Current Assets        
    Cash and cash equivalents   $ 1,100,851     $ 1,866,395  
    Accounts receivable     35,680,686       36,172,316  
    Joint interest billing receivables, net     2,121,035       1,083,164  
    Derivative assets     5,309,892       5,497,057  
    Inventory     3,300,755       4,047,819  
    Prepaid expenses and other assets     1,156,529       1,781,341  
    Total Current Assets     48,669,748       50,448,092  
    Properties and Equipment        
    Oil and natural gas properties, full cost method     1,932,616,777       1,809,309,848  
    Financing lease asset subject to depreciation     4,272,259       4,634,556  
    Fixed assets subject to depreciation     3,359,292       3,389,907  
    Total Properties and Equipment     1,940,248,328       1,817,334,311  
    Accumulated depreciation, depletion and amortization     (496,993,139 )     (475,212,325 )
    Net Properties and Equipment     1,443,255,189       1,342,121,986  
    Operating lease asset     1,753,693       1,906,264  
    Derivative assets     5,020,380       5,473,375  
    Deferred financing costs     6,911,264       8,149,757  
    Total Assets   $ 1,505,610,274     $ 1,408,099,474  
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current Liabilities        
    Accounts payable   $ 86,417,436     $ 95,729,261  
    Income tax liability     537,591       328,985  
    Financing lease liability     846,380       906,119  
    Operating lease liability     661,487       648,204  
    Derivative liabilities     5,426,195       6,410,547  
    Notes payable           496,397  
    Deferred cash payment     9,415,066        
    Asset retirement obligations     441,611       517,674  
    Total Current Liabilities     103,745,766       105,037,187  
             
    Non-current Liabilities        
    Deferred income taxes     31,496,585       28,591,802  
    Revolving line of credit     460,000,000       385,000,000  
    Financing lease liability, less current portion     708,304       647,078  
    Operating lease liability, less current portion     1,234,690       1,405,837  
    Derivative liabilities     3,632,133       2,912,745  
    Asset retirement obligations     28,826,738       25,864,843  
    Total Liabilities     629,644,216       549,459,492  
    Commitments and contingencies        
    Stockholders’ Equity        
    Preferred stock – $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding            
    Common stock – $0.001 par value; 450,000,000 shares authorized; 206,509,126 shares and 198,561,378 shares issued and outstanding, respectively     206,509       198,561  
    Additional paid-in capital     808,627,109       800,419,719  
    Retained earnings (Accumulated deficit)     67,132,440       58,021,702  
    Total Stockholders’ Equity     875,966,058       858,639,982  
    Total Liabilities and Stockholders’ Equity   $ 1,505,610,274     $ 1,408,099,474  
     
    RING ENERGY, INC.
    Condensed Statements of Cash Flows 
    (Unaudited)
     
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
    Cash Flows From Operating Activities            
    Net income   $ 9,110,738     $ 5,657,519     $ 5,515,377  
    Adjustments to reconcile net income to net cash provided by operating activities:            
    Depreciation, depletion and amortization     22,615,983       24,548,849       23,792,450  
    Asset retirement obligation accretion     326,549       323,085       350,834  
    Amortization of deferred financing costs     1,238,493       1,299,078       1,221,607  
    Share-based compensation     1,690,958       1,672,320       1,723,832  
    Credit loss expense     17,917       (26,747 )     163,840  
    (Gain) loss on disposal of assets     (124,610 )            
    Deferred income tax expense (benefit)     2,805,346       1,723,338       1,585,445  
    Excess tax expense (benefit) related to share-based compensation     99,437       9,011       40,808  
    (Gain) loss on derivative contracts     928,790       6,254,448       19,014,495  
    Cash received (paid) for derivative settlements, net     (553,594 )     745,104       (1,461,515 )
    Changes in operating assets and liabilities:            
    Accounts receivable     (564,158 )     349,474       (5,240,487 )
    Inventory     747,064       580,161       171,416  
    Prepaid expenses and other assets     624,812       295,555       503,704  
    Accounts payable     (10,385,137 )     4,462,089       (1,601,276 )
    Settlement of asset retirement obligation     (207,580 )     (613,603 )     (591,361 )
    Net Cash Provided by Operating Activities     28,371,008       47,279,681       45,189,169  
                 
    Cash Flows From Investing Activities            
    Payments for the Lime Rock Acquisition     (70,859,769 )            
    Payments to purchase oil and natural gas properties     (647,106 )     (1,423,483 )     (475,858 )
    Payments to develop oil and natural gas properties     (31,083,507 )     (36,386,055 )     (38,904,808 )
    Payments to acquire or improve fixed assets subject to depreciation     (34,275 )           (124,937 )
    Proceeds from sale of fixed assets subject to depreciation     17,360              
    Proceeds from divestiture of equipment for oil and natural gas properties           121,232        
    Net Cash Used in Investing Activities     (102,607,297 )     (37,688,306 )     (39,505,603 )
                 
    Cash Flows From Financing Activities            
    Proceeds from revolving line of credit     114,000,000       22,000,000       51,500,000  
    Payments on revolving line of credit     (39,000,000 )     (29,000,000 )     (54,500,000 )
    Payments for taxes withheld on vested restricted shares, net     (896,431 )           (814,985 )
    Proceeds from notes payable           58,774        
    Payments on notes payable     (496,397 )     (475,196 )     (533,734 )
    Payment of deferred financing costs           (42,746 )      
    Reduction of financing lease liabilities     (136,427 )     (265,812 )     (255,156 )
    Net Cash Provided by (Used in) Financing Activities     73,470,745       (7,724,980 )     (4,603,875 )
                 
    Net Increase (Decrease) in Cash     (765,544 )     1,866,395       1,079,691  
    Cash at Beginning of Period     1,866,395             296,384  
    Cash at End of Period   $ 1,100,851     $ 1,866,395     $ 1,376,075  
     
    RING ENERGY, INC.
    Financial Commodity Derivative Positions 
    As of March 31, 2025
     
    The following tables reflect the details of current derivative contracts as of March 31, 2025 (quantities are in barrels (Bbl) for the oil derivative contracts and in million British thermal units (MMBtu) for the natural gas derivative contracts):
     
        Oil Hedges (WTI)
        Q2 2025   Q3 2025   Q4 2025   Q1 2026   Q2 2026   Q3 2026   Q4 2026   Q1 2027
                                     
    Swaps:                                
    Hedged volume (Bbl)     151,763     351,917     141,755     477,350     457,101     59,400     423,000     381,500
    Weighted average swap price   $ 68.53   $ 71.41   $ 69.13   $ 70.16   $ 69.38   $ 66.70   $ 66.70   $ 63.80
                                     
    Two-way collars:                                
    Hedged volume (Bbl)     464,100     225,400     404,800             379,685        
    Weighted average put price   $ 60.00   $ 65.00   $ 60.00   $   $   $ 60.00   $   $
    Weighted average call price   $ 69.85   $ 78.91   $ 75.68   $   $   $ 72.50   $   $
        Gas Hedges (Henry Hub)
        Q2 2025   Q3 2025   Q4 2025   Q1 2026   Q2 2026   Q3 2026   Q4 2026   Q1 2027
                                     
    NYMEX Swaps:                                
    Hedged volume (MMBtu)     513,900     455,250     128,400     140,600     662,300     121,400     613,300    
    Weighted average swap price   $ 3.60   $ 3.88   $ 4.25   $ 4.20   $ 3.54   $ 4.22   $ 3.83   $
                                     
    Two-way collars:                                
    Hedged volume (MMBtu)     18,300     308,200     598,000     553,500         515,728         700,000
    Weighted average put price   $ 3.00   $ 3.00   $ 3.00   $ 3.50   $   $ 3.00   $   $ 4.00
    Weighted average call price   $ 4.15   $ 4.75   $ 4.15   $ 5.03   $   $ 3.93   $   $ 5.20
        Oil Hedges (basis differential)
        Q2 2025   Q3 2025   Q4 2025   Q1 2026   Q2 2026   Q3 2026   Q4 2026   Q1 2027
                                     
    Argus basis swaps:                                
    Hedged volume (Bbl)     183,000     276,000     276,000                    
    Weighted average spread price (1)   $ 1.00   $ 1.00   $ 1.00   $   $   $   $   $
                                     
        Gas Hedges (basis differential)
        Q2 2025   Q3 2025   Q4 2025   Q1 2026   Q2 2026   Q3 2026   Q4 2026   Q1 2027
                                     
    El Paso Permian Basin basis swaps:                                
    Hedged volume (MMBtu)                                 700,000
    Weighted average spread price (2)   $   $   $   $   $   $   $   $ 0.74
                                                     

    (1) The oil basis swap hedges are calculated as the fixed price (weighted average spread price above) less the difference between WTI Midland and WTI Cushing, in the issue of Argus Americas Crude.

    (2) The gas basis swap hedges are calculated as the Henry Hub natural gas price less the fixed amount specified as the weighted average spread price above.

    RING ENERGY, INC.
    Non-GAAP Financial Information

    Certain financial information included in this release are not measures of financial performance recognized by accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures are “Adjusted Net Income,” “Adjusted EBITDA,” “Adjusted Free Cash Flow” or “AFCF,” “Adjusted Cash Flow from Operations” or “ACFFO,” “G&A Excluding Share-Based Compensation,” “G&A Excluding Share-Based Compensation and Transaction Costs,” “Leverage Ratio,” “All-In Cash Operating Costs,” and “Cash Operating Margin.” Management uses these non-GAAP financial measures in its analysis of performance. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.

    Reconciliation of Net income to Adjusted Net Income

    “Adjusted Net Income” is calculated as net income minus the estimated after-tax impact of share-based compensation, ceiling test impairment, unrealized gains and losses on changes in the fair value of derivatives, and transaction costs for executed acquisitions and divestitures (“A&D”). Adjusted Net Income is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current period to prior periods. The Company believes that the presentation of Adjusted Net Income provides useful information to investors as it is one of the metrics management uses to assess the Company’s ongoing operating and financial performance, and also is a useful metric for investors to compare Ring’s results with its peers.

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
        Total   Per
    share –
    diluted
      Total   Per
    share –
    diluted
      Total   Per
    share –
    diluted
    Net income   $ 9,110,738     $ 0.05     $ 5,657,519     $ 0.03     $ 5,515,377     $ 0.03  
                             
    Share-based compensation     1,690,958       0.01       1,672,320       0.01       1,723,832       0.01  
    Unrealized loss (gain) on change in fair value of derivatives     375,196             6,999,552       0.03       17,552,980       0.08  
    Transaction costs – executed A&D     1,776             21,017             3,539        
    Tax impact on adjusted items     (500,646 )     (0.01 )     (2,008,740 )     (0.01 )     (4,447,977 )     (0.02 )
                             
    Adjusted Net Income   $ 10,678,022     $ 0.05     $ 12,341,668     $ 0.06     $ 20,347,751     $ 0.10  
                             
    Diluted Weighted-Average Shares Outstanding     201,072,594           200,886,010           199,305,150      
                             
    Adjusted Net Income per Diluted Share   $ 0.05         $ 0.06         $ 0.10      


    Reconciliation of
    Net income to Adjusted EBITDA

    The Company defines “Adjusted EBITDA” as net income plus net interest expense (including interest income and expense), unrealized loss (gain) on change in fair value of derivatives, ceiling test impairment, income tax (benefit) expense, depreciation, depletion and amortization, asset retirement obligation accretion, transaction costs for executed acquisitions and divestitures (A&D), share-based compensation, loss (gain) on disposal of assets, and backing out the effect of other income. Company management believes Adjusted EBITDA is relevant and useful because it helps investors understand Ring’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. Adjusted EBITDA, as Ring calculates it, may not be comparable to Adjusted EBITDA measures reported by other companies. In addition, Adjusted EBITDA does not represent funds available for discretionary use.

        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
    Net income   $ 9,110,738     $ 5,657,519     $ 5,515,377  
                 
    Interest expense, net     9,408,728       9,987,731       11,420,400  
    Unrealized loss (gain) on change in fair value of derivatives     375,196       6,999,552       17,552,980  
    Income tax (benefit) expense     3,041,177       1,803,629       1,728,886  
    Depreciation, depletion and amortization     22,615,983       24,548,849       23,792,450  
    Asset retirement obligation accretion     326,549       323,085       350,834  
    Transaction costs – executed A&D     1,776       21,017       3,539  
    Share-based compensation     1,690,958       1,672,320       1,723,832  
    Loss (gain) on disposal of assets     (124,610 )           (38,355 )
    Other income     (8,942 )     (80,970 )     (25,686 )
                 
    Adjusted EBITDA   $ 46,437,553     $ 50,932,732     $ 62,024,257  
                 
    Adjusted EBITDA Margin     59 %     61 %     66 %
                             

    Reconciliations of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow and Adjusted EBITDA to Adjusted Free Cash Flow

    The Company defines “Adjusted Free Cash Flow” or “AFCF” as Net Cash Provided by Operating Activities less changes in operating assets and liabilities (as reflected on Ring’s Condensed Statements of Cash Flows), plus transaction costs for executed acquisitions and divestitures (A&D), current income tax expense (benefit), proceeds from divestitures of equipment for oil and natural gas properties, loss (gain) on disposal of assets, and less capital expenditures, credit loss expense, and other income. For this purpose, the Company’s definition of capital expenditures includes costs incurred related to oil and natural gas properties (such as drilling and infrastructure costs and lease maintenance costs) but excludes acquisition costs of oil and gas properties from third parties that are not included in Ring’s capital expenditures guidance provided to investors. Management believes that Adjusted Free Cash Flow is an important financial performance measure for use in evaluating the performance and efficiency of the Company’s current operating activities after the impact of capital expenditures and net interest expense (including interest income and expense, excluding amortization of deferred financing costs) and without being impacted by items such as changes associated with working capital, which can vary substantially from one period to another. Other companies may use different definitions of Adjusted Free Cash Flow.

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
                 
    Net Cash Provided by Operating Activities   $ 28,371,008     $ 47,279,681     $ 45,189,169  
    Adjustments – Condensed Statements of Cash Flows            
    Changes in operating assets and liabilities     9,784,999       (5,073,676 )     6,758,004  
    Transaction costs – executed A&D     1,776       21,017       3,539  
    Income tax expense (benefit) – current     136,393       71,280       102,633  
    Capital expenditures     (32,451,531 )     (37,633,168 )     (36,261,008 )
    Proceeds from divestiture of equipment for oil and natural gas properties           121,232        
    Credit loss expense     (17,917 )     26,747       (163,840 )
    Loss (gain) on disposal of assets                 (38,355 )
    Other income     (8,942 )     (80,970 )     (25,686 )
                 
    Adjusted Free Cash Flow   $ 5,815,786     $ 4,732,143     $ 15,564,456  
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025       2024       2024  
                 
    Adjusted EBITDA   $ 46,437,553     $ 50,932,732     $ 62,024,257  
                 
    Net interest expense (excluding amortization of deferred financing costs)     (8,170,235 )     (8,688,653 )     (10,198,793 )
    Capital expenditures     (32,451,531 )     (37,633,168 )     (36,261,008 )
    Proceeds from divestiture of equipment for oil and natural gas properties           121,232        
                 
    Adjusted Free Cash Flow   $ 5,815,787     $ 4,732,143     $ 15,564,456  


    Reconciliation of Net Cash Provided by Operating Activities to Adjusted Cash Flow from Operations

    The Company defines “Adjusted Cash Flow from Operations” or “ACFFO” as Net Cash Provided by Operating Activities, as reflected in Ring’s Condensed Statements of Cash Flows, less the changes in operating assets and liabilities, which includes accounts receivable, inventory, prepaid expenses and other assets, accounts payable, and settlement of asset retirement obligations, which are subject to variation due to the nature of the Company’s operations. Accordingly, the Company believes this non-GAAP measure is useful to investors because it is used often in its industry and allows investors to compare this metric to other companies in its peer group as well as the E&P sector.

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025     2024       2024
                 
    Net Cash Provided by Operating Activities   $ 28,371,008   $ 47,279,681     $ 45,189,169
                 
    Changes in operating assets and liabilities     9,784,999     (5,073,676 )     6,758,004
                 
    Adjusted Cash Flow from Operations   $ 38,156,007   $ 42,206,005     $ 51,947,173


    Reconciliation of General and Administrative Expense (G&A) to G&A Excluding Share-Based Compensation and Transaction Costs

    The following table presents a reconciliation of General and Administrative Expense (“G&A”), a GAAP measure, to G&A excluding share-based compensation, and G&A excluding share-based compensation and transaction costs for executed acquisitions and divestitures (A&D).

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025     2024     2024
                 
    General and administrative expense (G&A)   $ 8,619,976   $ 8,035,977   $ 7,469,222
    Shared-based compensation     1,690,958     1,672,320     1,723,832
    G&A excluding share-based compensation     6,929,018     6,363,657     5,745,390
    Transaction costs – executed A&D     1,776     21,017     3,539
    G&A excluding share-based compensation and transaction costs   $ 6,927,242   $ 6,342,640   $ 5,741,851


    Calculation of Leverage Ratio

    “Leverage” or the “Leverage Ratio” is calculated under the Company’s existing senior revolving credit facility and means as of any date, the ratio of (i) Consolidated total debt as of such date to (ii) Consolidated EBITDAX for the four consecutive fiscal quarters ending on or immediately prior to such date for which financial statements are required to have been delivered under the Company’s existing senior revolving credit facility.

    The Company defines “Consolidated EBITDAX” in accordance with its existing senior revolving credit facility that means for any period an amount equal to the sum of (i) consolidated net income (loss) for such period plus (ii) to the extent deducted in determining consolidated net income for such period, and without duplication, (A) consolidated interest expense, (B) income tax expense determined on a consolidated basis in accordance with GAAP, (C) depreciation, depletion and amortization determined on a consolidated basis in accordance with GAAP, (D) exploration expenses determined on a consolidated basis in accordance with GAAP, and (E) all other non-cash charges acceptable to Ring’s senior revolving credit facility administrative agent determined on a consolidated basis in accordance with GAAP, in each case for such period minus (iii) all noncash income added to consolidated net income (loss) for such period; provided that, for purposes of calculating compliance with the financial covenants, to the extent that during such period the Company shall have consummated an acquisition permitted by the credit facility or any sale, transfer or other disposition of any property or assets permitted by the senior revolving credit facility, Consolidated EBITDAX will be calculated on a pro forma basis with respect to the property or assets so acquired or disposed of.

    Also set forth in Ring’s existing senior revolving credit facility is the maximum permitted Leverage Ratio of 3.00. The following tables show the leverage ratio calculations for the quarters ended March 31, 2025 and March 31, 2024.

     
        (Unaudited)
        Three Months Ended    
        June 30,   September 30,   December 31,   March 31,   Last Four
    Quarters
          2024       2024       2024     2025  
    Consolidated EBITDAX Calculation:                    
    Net Income (Loss)   $ 22,418,994     $ 33,878,424     $ 5,657,519   $ 9,110,738   $ 71,065,675  
    Plus: Consolidated interest expense     10,801,194       10,610,539       9,987,731     9,408,728     40,808,192  
    Plus: Income tax provision (benefit)     6,820,485       10,087,954       1,803,629     3,041,177     21,753,245  
    Plus: Depreciation, depletion and amortization     24,699,421       25,662,123       24,548,849     22,615,983     97,526,376  
    Plus: non-cash charges acceptable to Administrative Agent     1,664,064       (26,228,108 )     8,994,957     2,392,703     (13,176,384 )
    Consolidated EBITDAX   $ 66,404,158     $ 54,010,932     $ 50,992,685   $ 46,569,329   $ 217,977,104  
    Plus: Pro Forma Acquired Consolidated EBITDAX     10,329,116       7,838,163       5,244,078     7,392,359     30,803,716  
    Less: Pro Forma Divested Consolidated EBITDAX     (469,376 )     (600,460 )     77,819     8,855     (983,162 )
    Pro Forma Consolidated EBITDAX   $ 76,263,898     $ 61,248,635     $ 56,314,582   $ 53,970,543   $ 247,797,658  
                         
    Non-cash charges acceptable to Administrative Agent:                    
    Asset retirement obligation accretion   $ 352,184     $ 354,195     $ 323,085   $ 326,549    
    Unrealized loss (gain) on derivative assets     (765,898 )     (26,614,390 )     6,999,552     375,196    
    Share-based compensation     2,077,778       32,087       1,672,320     1,690,958    
    Total non-cash charges acceptable to Administrative Agent   $ 1,664,064     $ (26,228,108 )   $ 8,994,957   $ 2,392,703    
                         
        As of                
        March 31,   Corresponding            
          2025     Leverage Ratio            
    Leverage Ratio Covenant:                    
    Revolving line of credit   $ 460,000,000       1.86              
    Lime Rock deferred payment     10,000,000       0.04              
    Consolidated Total Debt   $ 470,000,000       1.90              
    Pro Forma Consolidated EBITDAX     247,797,658                  
    Leverage Ratio     1.90                  
    Maximum Allowed     ≤ 3.00x                  
                             
        (Unaudited)
        Three Months Ended    
        June 30,   September 30,   December 31,   March 31,   Last Four
    Quarters
          2023       2023       2023       2024  
    Consolidated EBITDAX Calculation:                    
    Net Income (Loss)   $ 28,791,605     $ (7,539,222 )   $ 50,896,479     $ 5,515,377   $ 77,664,239  
    Plus: Consolidated interest expense     10,471,062       11,301,328       11,506,908       11,420,400     44,699,698  
    Plus: Income tax provision (benefit)     (6,356,295 )     (3,411,336 )     7,862,930       1,728,886     (175,815 )
    Plus: Depreciation, depletion and amortization     20,792,932       21,989,034       24,556,654       23,792,450     91,131,070  
    Plus: non-cash charges acceptable to Administrative Agent     (470,875 )     36,396,867       (29,695,076 )     19,627,646     25,858,562  
    Consolidated EBITDAX   $ 53,228,429     $ 58,736,671     $ 65,127,895     $ 62,084,759   $ 239,177,754  
    Plus: Pro Forma Acquired Consolidated EBITDAX     9,542,529       4,810,123                 14,352,652  
    Less: Pro Forma Divested Consolidated EBITDAX     (357,122 )     (672,113 )     (66,463 )     40,474     (1,055,224 )
    Pro Forma Consolidated EBITDAX   $ 62,413,836     $ 62,874,681     $ 65,061,432     $ 62,125,233   $ 252,475,182  
                         
    Non-cash charges acceptable to Administrative Agent:                    
    Asset retirement obligation accretion   $ 353,878     $ 354,175     $ 351,786     $ 350,834    
    Unrealized loss (gain) on derivative assets     (3,085,065 )     33,871,957       (32,505,544 )     17,552,980    
    Share-based compensation     2,260,312       2,170,735       2,458,682       1,723,832    
    Total non-cash charges acceptable to Administrative Agent   $ (470,875 )   $ 36,396,867     $ (29,695,076 )   $ 19,627,646    
                         
        As of                
        March 31,                
          2024                  
    Leverage Ratio Covenant:                    
    Revolving line of credit   $ 422,000,000                  
    Pro Forma Consolidated EBITDAX     252,475,182                  
    Leverage Ratio     1.67                  
    Maximum Allowed     ≤ 3.00x                  
                             

    All-In Cash Operating Costs

    The Company defines All-In Cash Operating Costs, a non-GAAP financial measure, as “all in cash” costs which includes lease operating expenses, G&A costs excluding share-based compensation, net interest expense (including interest income and expense, excluding amortization of deferred financing costs), workovers and other operating expenses, production taxes, ad valorem taxes, and gathering/transportation costs. Management believes that this metric provides useful additional information to investors to assess the Company’s operating costs in comparison to its peers, which may vary from company to company.

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
          2025     2024     2024
    All-In Cash Operating Costs:            
    Lease operating expenses (including workovers)   $ 19,677,552   $ 20,326,216   $ 18,360,434
    G&A excluding share-based compensation     6,929,018     6,363,657     5,745,390
    Net interest expense (excluding amortization of deferred financing costs)     8,170,235     8,688,653     10,198,793
    Operating lease expense     175,091     175,090     175,091
    Oil and natural gas production taxes     3,584,455     3,857,147     4,428,303
    Ad valorem taxes     1,532,108     2,421,595     2,145,631
    Gathering, transportation and processing costs     203,612     130,230     166,054
    All-in cash operating costs   $ 40,272,071   $ 41,962,588   $ 41,219,696
                 
    Boe     1,655,259     1,808,493     1,732,057
                 
    All-in cash operating costs per Boe   $ 24.33   $ 23.20   $ 23.80


    Cash Operating Margin

    The Company defines Cash Operating Margin, a non-GAAP financial measure, as realized revenues per Boe less all-in cash operating costs per Boe. Management believes that this metric provides useful additional information to investors to assess the Company’s operating margins in comparison to its peers, which may vary from company to company.

         
        (Unaudited for All Periods)
        Three Months Ended
        March 31,   December 31,   March 31,
         2025    2024    2024
    Cash Operating Margin            
    Realized revenues per Boe   $ 47.78   $ 46.14   $ 54.56
    All-in cash operating costs per Boe     24.33     23.20     23.80
    Cash Operating Margin per Boe   $ 23.45   $ 22.94   $ 30.76
     

    ______________________________________
    1
    A non-GAAP financial measure; see the “Non-GAAP Financial Information” section in this release for more information including reconciliations to the most comparable GAAP measures.

    The MIL Network

  • MIL-OSI: MKS Instruments Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    • Quarterly revenue of $936 million, at the high end of guidance
    • Quarterly GAAP net income of $52 million and net income per diluted share of $0.77, each above the midpoint of guidance
    • Quarterly Adjusted EBITDA of $236 million, at the high end of guidance, and Non-GAAP net earnings per diluted share of $1.71, above the high end of guidance

    ANDOVER, Mass., May 07, 2025 (GLOBE NEWSWIRE) — MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported first quarter 2025 financial results.

    “We maintained our recent momentum in the first quarter with solid revenue performance that was at the high end of our guidance, led by strong year-over-year growth in both our Semiconductor and Electronics & Packaging end markets,” said John T.C. Lee, President and Chief Executive Officer. “Our team is executing well and capturing opportunities across memory and foundry as well as advanced packaging necessary to support AI applications.”

    Mr. Lee added, “We exited the quarter seeing pockets of demand improvement in our Semiconductor and Electronics and Packaging markets. We are taking active steps to mitigate the impacts from new trade policies. This situation remains dynamic, but we are confident in our ability to manage through, supported by our resilient global manufacturing and supply chain, strong customer relationships and broad, deep product portfolio.”

    “MKS has a strong track record of financial discipline and execution which was once again reflected in our first quarter results,” said Ram Mayampurath, Executive Vice President, Chief Financial Officer and Treasurer.

    Mr. Mayampurath added, “Our GAAP and Non-GAAP gross margins were at the high end of our guidance range and our GAAP and Non-GAAP operating income exceeded our guidance midpoints. Our second quarter guidance reflects an overall stable demand environment and strong business fundamentals while also factoring in our current view of potential impacts from evolving trade policies. We remain focused on managing profitability and cash generation to delever and strengthen our balance sheet.”

    Selected GAAP and Non-GAAP Financial Measures
    (In millions, except per share data)
     
      Q1 2025   Q4 2024   Q1 2024
    Net Revenues          
    Semiconductor $ 413     $ 400     $ 351  
    Electronics & Packaging   253       254       208  
    Specialty Industrial   270       281       309  
    Total net revenues $ 936     $ 935     $ 868  
    GAAP Financial Measures          
    Gross margin   47.4 %     47.2 %     47.8 %
    Operating margin   11.9 %     14.5 %     12.2 %
    Net income $ 52     $ 90     $ 15  
    Net income per diluted share $ 0.77     $ 1.33     $ 0.22  
    Non-GAAP Financial Measures          
    Gross margin   47.4 %     47.2 %     47.8 %
    Operating margin   20.2 %     21.3 %     20.2 %
    Net earnings $ 116     $ 146     $ 79  
    Net earnings per diluted share $ 1.71     $ 2.15     $ 1.18  
                           


    Additional Financial Information

    At March 31, 2025, the Company had $655 million in cash and cash equivalents, $3.2 billion of secured term loan principal outstanding, $1.4 billion of convertible senior notes outstanding and up to $675 million of additional borrowing capacity under a revolving credit facility, subject to certain leverage ratio requirements. During the first quarter of 2025, the Company completed the repricing of its USD term loan B and EUR term loan B and made a voluntary principal prepayment of $100 million on its USD term loan B. Additionally, the Company repurchased approximately 546,000 shares of its common stock for approximately $45 million, and paid a cash dividend of $15 million or $0.22 per diluted share.

    Second Quarter 2025 Guidance

    • Revenue of $925 million, plus or minus $40 million
    • Gross margin of 46.5%, plus or minus 1.0%
    • GAAP operating expenses of $316 million, plus or minus $5 million and Non-GAAP operating expenses of $252 million, plus or minus $5 million
    • GAAP net income of $55 million, plus or minus $21 million and Non-GAAP net earnings of $106 million, plus or minus $19 million
    • GAAP net income per diluted share of $0.81, plus or minus $0.32 and Non-GAAP net earnings per diluted share of $1.56, plus or minus $0.28
    • Adjusted EBITDA of $216 million, plus or minus $23 million

    The guidance for the second quarter is based on the current business environment, including the impact of U.S. import tariffs and the imposition of retaliatory actions taken by other countries up through but not including the date of this release. The Company will continue to monitor and adapt to changes in the business environment as needed.

    Conference Call Details

    A conference call with management will be held on Thursday, May 8, 2025 at 8:30 a.m. (Eastern Time). To participate in the call by phone, participants should visit the Investor Relations section of MKS’ website at investor.mks.com and click on Events & Presentations, where you will be able to register online and receive dial-in details. We encourage participants to register and dial in to the conference call at least 15 minutes before the start of the call to ensure a timely connection. A live and archived webcast and related presentation materials will be available on the Investor Relations section of the MKS website.

    About MKS Instruments

    MKS Instruments enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world’s leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.

    Use of Non-GAAP Financial Results

    This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

    SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
     

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Instruments, Inc. (“MKS,” the “Company,” “our,” or “we”). These statements are only predictions based on current assumptions and expectations. Any statements that are not statements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the level and terms of our substantial indebtedness and our ability to service such debt; our entry into the chemicals technology business through our acquisition of Atotech Limited (“Atotech”) in August 2022 (the “Atotech Acquisition”), which has exposed us to significant additional liabilities; the risk that we are unable to realize the anticipated benefits of the Atotech Acquisition; risks related to cybersecurity, data privacy and intellectual property; competition from larger, more advanced or more established companies in our markets; the ability to successfully grow our business, including through growth of the Atotech business, and financial risks associated with that acquisition and potential future acquisitions, including goodwill and intangible asset impairments; manufacturing and sourcing risks, including those associated with limited and sole source suppliers and the impact and duration of supply chain disruptions, component shortages, and price increases; changes in global demand; risks associated with doing business internationally, including geopolitical conflicts, such as the conflict in the Middle East, trade compliance, trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations, which risks become more significant as we grow our business internationally and in China specifically; conditions affecting the markets in which we operate, including fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers upon which our operations may rely; the ability to anticipate and meet customer demand; the challenges, risks and costs involved with integrating or transitioning global operations of the companies we have acquired; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; dependence on new product development; rapid technological and market change; acquisition strategy; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks related to defective products; financial and legal risk management; and the other important factors described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequent Quarterly Reports on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, even if subsequent events cause our views to change, after the date of this press release. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

    Company Contact:
    Paretosh Misra
    Vice President, Investor Relations
    Telephone: (978) 284-4705
    Email: paretosh.misra@mks.com

     
     
    MKS Instruments, Inc.
    Unaudited Consolidated Statements of Operations
    (In millions, except per share data)
               
      Three Months Ended
      March 31,   December 31,   March 31,
        2025       2024       2024  
    Net revenues:          
    Products $ 819     $ 824     $ 754  
    Services   117       111       114  
    Total net revenues   936       935       868  
    Cost of revenues:          
    Products   437       443       398  
    Services   55       51       55  
    Total cost of revenues (exclusive of amortization shown separately below)   492       494       453  
    Gross profit   444       441       415  
    Research and development   70       65       70  
    Selling, general and administrative   185       176       170  
    Acquisition and integration costs         3       1  
    Restructuring and other   16       1       3  
    Fees and expenses related to amendments to the Term Loan Facility   2             3  
    Amortization of intangible assets   60       61       62  
    Income from operations   111       135       106  
    Interest income   (3 )     (5 )     (6 )
    Interest expense   53       54       87  
    Loss on extinguishment of debt   3       4       9  
    Other (income) expense, net   (1 )     3       (3 )
    Income before income taxes   59       79       19  
    Provision (benefit) for income taxes   7       (11 )     4  
    Net income $ 52     $ 90     $ 15  
    Net income per share:          
    Basic $ 0.77     $ 1.34     $ 0.22  
    Diluted $ 0.77     $ 1.33     $ 0.22  
    Cash dividends per common share $ 0.22     $ 0.22     $ 0.22  
    Weighted average shares outstanding:          
    Basic   67.4       67.4       67.0  
    Diluted   67.7       67.7       67.4  
               
    MKS Instruments, Inc.
    Unaudited Consolidated Balance Sheets
    (In millions)
           
           
      March 31,   December 31,
        2025       2024  
    ASSETS      
    Cash and cash equivalents $ 655     $ 714  
    Trade accounts receivable, net   639       615  
    Inventories   894       893  
    Other current assets   238       252  
    Total current assets   2,426       2,474  
    Property, plant and equipment, net   774       771  
    Right-of-use assets   239       238  
    Goodwill   2,496       2,479  
    Intangible assets, net   2,238       2,272  
    Other assets   383       356  
    Total assets $ 8,556     $ 8,590  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Short-term debt $ 50     $ 50  
    Accounts payable   323       341  
    Other current liabilities   408       384  
    Total current liabilities   781       775  
    Long-term debt, net   4,409       4,488  
    Non-current deferred taxes   502       504  
    Non-current accrued compensation   139       141  
    Non-current lease liabilities   211       211  
    Other non-current liabilities   160       149  
    Total liabilities   6,202       6,268  
    Stockholders’ equity:      
    Common stock          
    Additional paid-in capital   2,067       2,067  
    Retained earnings   512       503  
    Accumulated other comprehensive loss   (225 )     (248 )
    Total stockholders’ equity   2,354       2,322  
    Total liabilities and stockholders’ equity $ 8,556     $ 8,590  
           
    MKS Instruments, Inc.
    Unaudited Consolidated Statements of Cash Flows
    (In millions)
               
      Three Months Ended
      March 31,   December 31,   March 31,
        2025       2024       2024  
    Cash flows from operating activities:          
    Net income $ 52     $ 90     $ 15  
    Adjustments to reconcile net income to net cash provided by operating activities:          
    Depreciation and amortization   85       87       88  
    Unrealized loss (gain) on derivatives not designated as hedging instruments   2       11       3  
    Amortization of debt issuance costs and original issue discounts   6       7       8  
    Loss on extinguishment of debt   3       4       9  
    Stock-based compensation   22       11       15  
    Provision for excess and obsolete inventory   17       15       11  
    Deferred income taxes   (37 )     (58 )     (36 )
    Other   1       2       2  
    Changes in operating assets and liabilities, net of acquired assets and liabilities   (10 )     7       (48 )
    Net cash provided by operating activities   141       176       67  
    Cash flows from investing activities:          
    Purchases of property, plant and equipment   (18 )     (51 )     (18 )
    Net cash used in investing activities   (18 )     (51 )     (18 )
    Cash flows from financing activities:          
    Repurchase of common stock   (45 )            
    Proceeds from borrowings               761  
    Payments of borrowings   (113 )     (229 )     (806 )
    Payments of deferred financing fees               (2 )
    Dividend payments   (15 )     (15 )     (15 )
    Net (payments) proceeds related to employee stock awards   (5 )     3       (9 )
    Other financing activities   (2 )     (5 )     (1 )
    Net cash used in financing activities   (180 )     (246 )     (72 )
    Effect of exchange rate changes on cash and cash equivalents   (2 )     (26 )     (7 )
    Decrease in cash and cash equivalents   (59 )     (147 )     (30 )
    Cash and cash equivalents at beginning of period   714       861       875  
    Cash and cash equivalents at end of period $ 655     $ 714     $ 845  
               
    The following supplemental Non-GAAP earnings information is presented to aid in understanding MKS’ operating results:
               
    MKS Instruments, Inc.
    Schedule Reconciling Selected Non-GAAP Financial Measures
    (In millions, except per share data)
               
      Three Months Ended
      March 31,   December 31,   March 31,
       2025    2024    2024
    Net income $ 52     $ 90     $ 15  
    Acquisition and integration costs         3       1  
    Restructuring and other   16       1       3  
    Amortization of intangible assets   60       61       62  
    Loss on extinguishment of debt   3       4       9  
    Amortization of debt issuance costs   5       5       6  
    Fees and expenses related to amendments to the Term Loan Facility   2             3  
    Tax effect of Non-GAAP adjustments   (22 )     (18 )     (20 )
    Non-GAAP net earnings $ 116     $ 146     $ 79  
    Non-GAAP net earnings per diluted share $ 1.71     $ 2.15     $ 1.18  
    Weighted average diluted shares outstanding   67.7       67.7       67.4  
               
    Net cash provided by operating activities $ 141     $ 176     $ 67  
    Purchases of property, plant and equipment   (18 )     (51 )     (18 )
    Free cash flow $ 123     $ 125     $ 49  
    GAAP and Non-GAAP gross profit $ 444     $ 441     $ 415  
    GAAP and Non-GAAP gross margin   47.4 %     47.2 %     47.8 %
    Operating expenses $ 332     $ 306     $ 309  
    Acquisition and integration costs         3       1  
    Restructuring and other   16       1       3  
    Amortization of intangible assets   60       61       62  
    Fees and expenses related to amendments to the Term Loan Facility   2             3  
    Non-GAAP operating expenses $ 254     $ 242     $ 240  
    Income from operations $ 111     $ 135     $ 106  
    Operating margin   11.9 %     14.5 %     12.2 %
    Acquisition and integration costs         3       1  
    Restructuring and other   16       1       3  
    Amortization of intangible assets   60       61       62  
    Fees and expenses related to amendments to the Term Loan Facility   2             3  
    Non-GAAP income from operations $ 189     $ 199     $ 175  
    Non-GAAP operating margin   20.2 %     21.3 %     20.2 %
    Interest expense, net $ 50     $ 49     $ 81  
    Amortization of debt issuance costs   5       5       6  
    Non-GAAP interest expense, net $ 45     $ 45     $ 75  
    Net income $ 52     $ 90     $ 15  
    Interest expense, net   50       49       81  
    Other (income) expense, net   (1 )     3       (3 )
    Provision (benefit) for income taxes   7       (11 )     4  
    Depreciation   25       26       26  
    Amortization   60       61       62  
    Stock-based compensation   22       11       15  
    Acquisition and integration costs         3       1  
    Restructuring and other   16       1       3  
    Loss on extinguishment of debt   3       4       9  
    Fees and expenses related to amendments to the Term Loan Facility   2             3  
    Adjusted EBITDA $ 236     $ 237     $ 217  
    Adjusted EBITDA margin   25.2 %     25.3 %     25.0 %
               
    MKS Instruments, Inc.
    Schedule Reconciling Selected Non-GAAP Financial Measures
    (In millions, except per share data)
                           
      Three Months Ended March 31, 2025   Three Months Ended December 31, 2024
      Income Before Income Taxes   Provision for Income Taxes   Effective Tax Rate   Income Before Income Taxes    (Benefit) Provision for Income Taxes   Effective Tax Rate
    GAAP $ 59     $ 7     12.3 %   $ 79     $ (11 )   (14.5 %)
    Acquisition and integration costs                   3            
    Restructuring and other   16                 1            
    Amortization of intangible assets   60                 61            
    Loss on extinguishment of debt   3                 4            
    Amortization of debt issuance costs   5                 5            
    Fees and expenses related to amendments to the Term Loan Facility   2                            
    Tax effect of Non-GAAP adjustments         22                 18      
    Non-GAAP $ 145     $ 29     19.9 %   $ 153     $ 7     4.0 %
                           
                           
                  Three Months Ended March 31, 2024
                  Income Before Income Taxes   Provision for Income Taxes   Effective Tax Rate
    GAAP             $ 19     $ 4     23.1 %
    Acquisition and integration costs               1            
    Restructuring and other               3            
    Amortization of intangible assets               62            
    Loss on extinguishment of debt               9            
    Amortization of debt issuance costs               6            
    Fees and expenses related to amendments to the Term Loan Facility               3            
    Tax effect of Non-GAAP adjustments                     20      
    Non-GAAP             $ 103     $ 24     23.3 %
                           
    MKS Instruments, Inc.
    Schedule Reconciling Selected Non-GAAP Financial Measures – Q2’25 Guidance
    (In millions, except per share data)
           
      Three Months Ending June 30, 2025
      $ Amount   Per Share
    GAAP net income and net income per share $ 55     $ 0.81  
    Restructuring and other   4      
    Amortization of intangible assets   60      
    Loss on extinguishment of debt   2      
    Amortization of debt issuance costs   4      
    Tax effect of Non-GAAP adjustments   (19 )    
    Non-GAAP net earnings and net earnings per share $ 106     $ 1.56  
    Weighted average diluted shares   67.6      
           
    GAAP operating expenses $ 316      
    Restructuring and other   (4 )    
    Amortization of intangible assets   (60 )    
    Non-GAAP operating expenses $ 252      
           
    GAAP net income   55      
    Interest expense, net   52      
    Other expense (income), net   1      
    Provision for income taxes   4      
    Depreciation   26      
    Restructuring and other   4      
    Amortization of intangible assets   60      
    Stock-based compensation   12      
    Loss on extinguishment of debt   2      
    Adjusted EBITDA $ 216      
           
     
    MKS Instruments, Inc.
    Notes on Our Non-GAAP Financial Information
     

    Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

    Acquisition and integration costs include incremental expenses incurred to effect the Atotech Acquisition. Such acquisition costs may include advisory, legal, tax, accounting, valuation, and other professional or consulting fees. Such integration costs may include expenses directly related to integration of business and facility operations, information technology systems and infrastructure and other employee-related costs.

    Restructuring and other includes incremental expenses incurred in connection with restructuring programs and other strategic initiatives, primarily related to changes in business and/or cost structure. Such costs may include third-party services, one-time termination benefits, facility-related costs, contract termination fees and other items that have no direct correlation to our future business operations.

    Amortization of intangible assets includes non-cash amortization expense associated with intangible assets acquired in acquisitions.

    Loss on extinguishment of debt includes the non-cash write-off of unamortized debt issuance costs and original issue discount costs incurred from voluntary prepayments and/or repricing of our term loan facility.

    Amortization of debt issuance costs includes non-cash additional interest expense related to the amortization of debt issuance costs and original issue discount costs associated with our term loan facility.

    Fees and expenses related to amendments to the Term Loan Facility includes direct third-party costs related to repricings or refinancings of our term loan facility.

    Tax effect of Non-GAAP adjustments includes the impact of Non-GAAP adjustments that are tax effected at applicable statutory rates resulting in a difference between the GAAP and Non-GAAP tax rates. 

    The MIL Network

  • MIL-OSI: Great Elm Group Reports Fiscal 2025 Third Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    PALM BEACH GARDENS, Fla., May 07, 2025 (GLOBE NEWSWIRE) — Great Elm Group, Inc. (“we,” “our,” “GEG,” “Great Elm,” or “the Company”), (NASDAQ: GEG), an alternative asset manager, today announced financial results for its fiscal third quarter ended March 31, 2025.

    Fiscal Third Quarter 2025 and Recent Highlights

    • In February 2025, Great Elm acquired the assets of Greenfield CRE and formed Monomoy Construction Services, LLC (“MCS”), combining the assets of Greenfield CRE and the assets of Monomoy BTS Construction Management (“MCM”).
      • MCS is an integrated, full-service construction business serving Great Elm’s real estate verticals as well as its growing third-party project management services.
    • GEG’s fee-paying assets under management (“FPAUM”) and assets under management (“AUM”), as of March 31, 2025, totaled approximately $565 million and $768 million, respectively.
      • FPAUM and AUM growth of 15% and 12%, respectively, compared to the prior-year period.
    • Total revenue for the third quarter grew 15% to $3.2 million, compared to $2.8 million for the prior-year period.
      • Growth in revenue was primarily driven by increased revenue from real estate project management fees and rental income as well as increased management fees from Great Elm Capital Corp. (“GECC”) attributable to FPAUM growth.
    • Net loss from continuing operations for the third quarter was ($4.5) million, compared to net loss from continuing operations of ($2.9) million in the prior-year period.
      • Net loss was primarily driven by unrealized losses related to certain investment positions marked down at quarter-end, which the Company expects to reverse over time, assuming market conditions stabilize.
    • Adjusted EBITDA for the third quarter was $0.5 million, compared to $1.2 million in the prior-year period.
    • Through May 6, 2025, Great Elm has repurchased approximately 4.8 million shares for $8.7 million, at an average cost of $1.84 per share, through its share repurchase program.
      • Book value per share was $2.14 as of March 31, 2025, excluding Consolidated Funds.
    • As of March 31, 2025, GEG had approximately $32 million of cash on its balance sheet to support growth initiatives across its alternative asset management platform.
    • Subsequent to quarter end, GECC launched a $100 million At-the-Market equity program, providing additional capital flexibility.

    Management Commentary

    Jason Reese, Chief Executive Officer of the Company stated, “We achieved a solid fiscal third quarter 2025, continuing our positive momentum by expanding our assets under management and maintaining performance across our credit and real estate businesses. Notably, GECC delivered record total investment income in the first calendar quarter of 2025 and continues to drive significant growth in our fee-paying assets under management. GECC is also well positioned to pay meaningful incentive fees to GEG in the coming quarters.”

    “In real estate, our launch of Monomoy Construction Services in February through our acquisition of Greenfield CRE adds specialized construction experience to our expanding real estate platform and has been well received by Monomoy’s tenants. As the integration of MCS progresses, we remain focused on our robust project and property pipeline. At Monomoy BTS, we closed on a land purchase for our third development property during the quarter and expect to complete the project during the calendar year. Finally, during the quarter, we continued to repurchase our shares at an attractive discount to book value. Looking ahead, we remain committed to growing our core businesses and pursuing compelling investment opportunities to maximize long-term shareholder value.”

    GEG Managed Vehicle Highlights

    • GECC delivered a strong first calendar quarter of 2025, generating record Total Investment Income (“TII”), with Net Investment Income in excess of its increased quarterly distribution.
      • TII of $12.5 million for the quarter ended March 31, 2025, was the highest in GECC’s history, driven by cash flows from its CLO JV and income from new investments.
      • GECC increased its quarterly distribution by 5.7% for the first quarter of 2025, to $0.37 per share from $0.35 per share, which was paid on March 31, 2025.
      • In May, GECC launched a $100 million At-the-Market equity program, providing additional capital flexibility.
    • Monomoy BTS and Monomoy REIT continued to execute on their strategic priorities.
      • Monomoy BTS closed on a land purchase for its third build-to-suit property and made meaningful progress on its fourth project.
      • Monomoy REIT acquired a property for approximately $3.0 million and maintains a strong pipeline of transaction opportunities and open requirements from its tenants.
    • Great Elm Credit Income Fund was stable in the first calendar quarter of 2025, weathering credit market volatility, and delivered a return from inception through March 31, 2025, of approximately 13.9%, net of fees.1

    Discussion of Financial Results for the Fiscal Third Quarter Ended March 31, 2025

    GEG reported total revenue of $3.2 million, up 15% from $2.8 million in the prior-year period.

    GEG recorded net loss from continuing operations of ($4.5) million, compared to net loss from continuing operations of ($2.9) million in the prior-year period. The net loss this quarter was primarily driven by unrealized losses related to certain investment positions marked down at quarter-end, which the Company expects to reverse over time, assuming market conditions stabilize.

    GEG recorded Adjusted EBITDA of $0.5 million, compared to $1.2 million in the prior-year period.

    Acquisition of Assets of Greenfield CRE

    In February 2025, Great Elm acquired the assets of Greenfield CRE, a leading construction management company, and longstanding partner of Monomoy CRE, LLC, our real estate investment manager. In connection with the acquisition, Great Elm formed MCS and combined the assets of Greenfield CRE with the assets of MCM to launch an integrated, full-service construction business. With MCS, Monomoy will offer a full service, in-house suite of project management, procurement, construction management, asset management, market analysis and feasibility services for its industrial real estate tenants.

    Stock Repurchase Program

    In fiscal first quarter 2025, GEG’s Board of Directors approved an incremental stock repurchase program under which GEG is authorized to repurchase up to $20 million in the aggregate of its outstanding common stock in the open market. As of May 6, 2025, the Company has repurchased approximately 4.8 million shares for $8.7 million under this program.

    Fiscal 2025 Third Quarter Conference Call & Webcast Information

    When: Thursday, May 8, 2025, 8:30 a.m. Eastern Time (ET)
       
    Call: All interested parties are invited to participate in the conference call by dialing +1 (877) 407-0752; international callers should dial +1 (201) 389-0912. Participants should enter the Conference ID 13746971 if asked.
       
    Webcast: The conference call will be webcast simultaneously and can be accessed here. A copy of the slide presentation accompanying the conference call, can be found here.
       

    About Great Elm Group, Inc.

    Great Elm Group, Inc. (NASDAQ: GEG) is a publicly-traded, alternative asset manager focused on growing a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. Great Elm Group, Inc. and its subsidiaries currently manage Great Elm Capital Corp., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust, in addition to other investments. Great Elm Group, Inc.’s website can be found at www.greatelmgroup.com.

    Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

    Statements in this press release that are “forward-looking” statements, including statements regarding expected growth, profitability, acquisition opportunities and outlook involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent Great Elm’s assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and Great Elm’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from Great Elm’s expectations, please see Great Elm’s filings with the Securities and Exchange Commission (“SEC”), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to Great Elm’s financial position and results of operations is also contained in Great Elm’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov.

    Non-GAAP Financial Measures

    The SEC has adopted rules to regulate the use in filings with the SEC, and in public disclosures, of financial measures that are not in accordance with US GAAP, such as adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Adjusted EBITDA is derived from methodologies other than in accordance with US GAAP. Great Elm believes that Adjusted EBITDA is an important measure for investors to use in evaluating Great Elm’s businesses. In addition, Great Elm’s management reviews Adjusted EBITDA as they evaluate acquisition opportunities.

    Adjusted EBITDA has limitations as an analytical tool, and you should not consider it either in isolation from, or as a substitute for, analyzing Great Elm’s results as reported under US GAAP. Non-GAAP financial measures reported by Great Elm may not be comparable to similarly titled amounts reported by other companies.

    Included in the financial tables below is a reconciliation of Adjusted EBITDA to the most directly comparable US GAAP financial measure, net income from continuing operations.

    Endnotes
    1 Assumes invested at inception on November 1, 2023, and remained invested throughout the succeeding seventeen months ended March 31, 2025, with distributions reinvested, net of founder’s class fees and expenses. Performance results should not be regarded as final until audited financial statements are issued covering the period shown. Past performance is no guarantee of future results. This press release does not constitute an offer to sell or a solicitation of an offer to buy interests in any investment vehicle managed by Great Elm or its affiliates. Any such offer or solicitation will only be made pursuant to the applicable offering documents for such investment vehicle.

    Media & Investor Contact:
    Investor Relations
    geginvestorrelations@greatelmcap.com

    Great Elm Group, Inc.
    Condensed Consolidated Balance Sheets (unaudited)
    Dollar amounts in thousands (except per share data)

    ASSETS   March 31, 2025     June 30, 2024  
    Current assets            
    Cash and cash equivalents   $ 31,528     $ 48,147  
    Restricted cash           1,571  
    Receivables from managed funds     8,244       2,259  
    Investments in marketable securities           9,929  
    Investments, at fair value     47,955       44,585  
    Prepaid and other current assets     3,048       1,215  
    Real estate assets, net     7,981       5,769  
    Related party loan receivable     7,500        
    Assets of Consolidated Funds:            
    Cash and cash equivalents     3,221       2,371  
    Investments, at fair value     11,345       11,471  
    Other assets     236       253  
    Total current assets     121,058       127,570  
    Identifiable intangible assets, net     12,245       11,037  
    Goodwill     470        
    Right-of-use assets     1,690       225  
    Other assets     1,727       1,614  
    Total assets   $ 137,190     $ 140,446  
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Current liabilities            
    Accounts payable   $ 2,030     $ 317  
    Accrued expenses and other current liabilities     4,463       7,009  
    Current portion of related party payables     254       634  
    Current portion of lease liabilities     346       137  
    Liabilities of Consolidated Funds:            
    Payable for securities purchased     204       100  
    Accrued expenses and other liabilities     171       162  
    Total current liabilities     7,468       8,359  
    Lease liabilities, net of current portion     1,352       57  
    Long-term debt (face value $26,945)     26,302       26,090  
    Convertible notes (face value $36,380 and $35,494, including $16,578 and $16,174 held by related parties, respectively)     35,864       34,900  
    Other liabilities     889       845  
    Total liabilities     71,875       70,251  
    Commitments and contingencies            
    Stockholders’ equity            
    Preferred stock, $0.001 par value; 5,000,000 authorized and zero outstanding            
    Common stock, $0.001 par value; 350,000,000 shares authorized and 28,687,736 shares issued and 26,687,301 outstanding at March 31, 2025; and 31,875,285 shares issued and 30,494,448 outstanding at June 30, 2024     25       30  
    Additional paid-in-capital     3,310,838       3,315,638  
    Accumulated deficit     (3,253,636 )     (3,252,954 )
    Total Great Elm Group, Inc. stockholders’ equity     57,227       62,714  
    Non-controlling interests     8,088       7,481  
    Total stockholders’ equity     65,315       70,195  
    Total liabilities and stockholders’ equity   $ 137,190     $ 140,446  
     

    Great Elm Group, Inc.
    Condensed Consolidated Statements of Operations (unaudited)
    Amounts in thousands (except per share data)

        For the three months ended March 31,     For the nine months ended March 31,  
        2025     2024     2025     2024  
    Revenues   $ 3,209     $ 2,787     $ 10,708     $ 8,916  
    Cost of revenues     (11 )           1,082        
    Operating costs and expenses:                        
    Investment management expenses     4,033       2,733       10,522       8,334  
    Depreciation and amortization     361       271       918       837  
    Selling, general and administrative     1,362       1,630       4,674       5,738  
    Expenses of Consolidated Funds     19       22       40       22  
    Total operating costs and expenses     5,775       4,656       16,154       14,931  
    Operating loss     (2,555 )     (1,869 )     (6,528 )     (6,015 )
    Dividends and interest income     1,481       2,359       4,606       6,417  
    Net realized and unrealized gain (loss)     (2,439 )     (2,753 )     3,767       1,735  
    Net realized and unrealized gain (loss) on investments of Consolidated Funds     (338 )     131       (89 )     245  
    Interest and other income of Consolidated Funds     389       323       1,168       451  
    Interest expense     (1,039 )     (1,074 )     (3,097 )     (3,197 )
    (Loss) income before income taxes from continuing operations     (4,501 )     (2,883 )     (173 )     (364 )
    Income tax benefit (expense)                        
    Net (loss) income from continuing operations     (4,501 )     (2,883 )     (173 )     (364 )
    Discontinued operations:                        
    Net income from discontinued operations                       16  
    Net (loss) income   $ (4,501 )   $ (2,883 )   $ (173 )   $ (348 )
    Less: net (loss) income attributable to non-controlling interest, continuing operations     (4 )     217       509       328  
    Net (loss) income attributable to Great Elm Group, Inc.   $ (4,497 )   $ (3,100 )   $ (682 )   $ (676 )
    Net (loss) income attributable to shareholders per share                        
    Basic   $ (0.17 )   $ (0.10 )   $ (0.02 )   $ (0.02 )
    Diluted     (0.17 )     (0.10 )     (0.02 )     (0.02 )
    Weighted average shares outstanding                        
    Basic     26,915       30,066       28,000       29,844  
    Diluted     26,915       30,066       28,000       29,844  
     

    Great Elm Group, Inc.
    Reconciliation from Net Income (loss) from Continuing Operations to Adjusted EBITDA
    Dollar amounts in thousands

        Three months ended
    March 31,
      Nine months ended
    March 31,
    (in thousands)   2025     2024     2025     2024  
    Net income (loss) from continuing operations – GAAP   $ (4,501 )   $ (2,883 )   $ (173 )   $ (364 )
    Interest expense     1,039       1,074       3,097       3,197  
    Income tax expense (benefit)                        
    Depreciation and amortization     361       271       918       837  
    Non-cash compensation     796       698       2,668       2,426  
    (Gain) loss on investments     2,777       2,622       (3,678 )     (1,980 )
    Change in contingent consideration           (554 )     (6 )     (518 )
    Adjusted EBITDA   $ 472     $ 1,228     $ 2,826     $ 3,598  

    The MIL Network

  • MIL-OSI: Global Net Lease Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    – Successfully Closed First Phase of Multi-Tenant Portfolio Sale Resulting in $1.1 Billion of Gross Proceeds; On Track to Close Remaining Multi-Tenant Portfolio Sale by End of Q2’25

    – Reduced Net Debt by $833 Million in Q1’25; Improved Net Debt to Adjusted EBITDA to 6.7x

    – Repurchased 7.9 Million Shares at a Weighted Average Price of $7.50 Totaling $59 Million as of May 2, 2025

    – Reaffirms 2025 Guidance

    NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) — Global Net Lease, Inc. (NYSE: GNL) (“GNL” or the “Company”), an internally managed real estate investment trust that focuses on acquiring and managing a globally diversified portfolio of strategically located commercial real estate properties, announced today its financial and operating results for the quarter ended March 31, 2025.

    First Quarter 2025 Highlights

    • Successfully closed the first phase of the sale of the multi-tenant portfolio, consisting of 59 unencumbered assets, with the net proceeds used to pay down $850 million of the Revolving Credit Facility
    • Remain on track to close the remaining two phases of the multi-tenant portfolio sale, consisting of 41 encumbered assets, by the end of the second quarter 2025, after which GNL expects to begin realizing G&A savings and enhanced portfolio metrics
    • Revenue was $132.4 million in first quarter 2025, compared to $147.9 million in first quarter 2024, primarily as a result of asset dispositions
    • Net loss attributable to common stockholders was $200.3 million, compared to a net loss of $34.7 million in first quarter 2024, primarily caused by the timing and purchase price allocation associated with the partial completion of the multi-tenant portfolio sale
    • Net loss attributable to common stockholders is expected to significantly improve upon completion of the sale of the remaining multi-tenant portfolio
    • Core Funds from Operations (“Core FFO”) was $35.0 million compared to $56.6 million in first quarter 2024, primarily as a result of asset dispositions, including the multi-tenant portfolio sale
    • Adjusted Funds from Operations (“AFFO”)1 was $66.2 million, or $0.29 per share, compared to $75.0 million in first quarter 2024, or $0.33 per share, primarily as a result of asset dispositions, including the multi-tenant portfolio sale
    • 2025 closed plus disposition pipeline totals $2.1 billion2 at a cash cap rate of 8.3% and a weighted average lease term of 5.2 years; maintains focus on using net proceeds from non-core asset sales to reduce leverage and strengthen the balance sheet
    • Reduced Net Debt by $1.5 billion since first quarter 2024, including $833.2 million in first quarter 2025, improving Net Debt to Adjusted EBITDA from 8.4x to 6.7x over the same period
    • As of May 2, 2025, the Company has repurchased 7.9 million shares of its outstanding common stock under its Share Repurchase Program announced in February 2025, at a weighted average price of $7.50, for a total of $59.4 million; this includes 2.4 million shares for a total of $19.4 million repurchased in first quarter 2025
    • Leased over 826,000 square feet across the single-tenant portfolio, resulting in nearly $6.1 million of new straight-line rent
    • Single-tenant renewal leasing spread of 8.2% with a weighted average lease term of 6.6 years; new leases completed in the single-tenant portfolio in the quarter had a weighted average lease term of 5.0 years
    • Weighted average annual rent increase of 1.5% provides organic rental growth, excluding 18.7% of the portfolio with CPI-linked leases that have historically experienced significantly higher rental increases
    • Sector-leading 60% of annualized straight-line rent comes from investment-grade or implied investment-grade tenants3

    “The first quarter of 2025 was a pivotal period in GNL’s transformation as we took important steps to streamline our portfolio, strengthen the balance sheet, and enhance financial flexibility,” said Michael Weil, CEO of GNL. “We believe with lower leverage, greater liquidity, and disciplined execution and capital allocation, GNL is better positioned to operate more efficiently and pursue new opportunities aligned with our strategic vision. These foundational initiatives are not only aimed at improving near-term metrics, but at building lasting resilience and long-term value for shareholders. As we continue executing on our strategy, we believe these efforts will help narrow the trading gap between GNL and our net lease peers. We look forward to completing the final two phases of the multi-tenant portfolio sale in the second quarter and carrying that momentum into the second half of 2025 and beyond.”

    Full Year 2025 Guidance Update4

    • The Company reaffirms its 2025 AFFO per Share guidance range of $0.90 to $0.96 and Net Debt to Adjusted EBITDA range of 6.5x to 7.1x.

    Summary of Results

        Three Months Ended March 31,
    (In thousands, except per share data)     2025       2024  
    Revenue from tenants   $ 132,415     $ 147,880  
             
    Net loss attributable to common stockholders   $ (200,315 )   $ (34,687 )
    Net loss per diluted common share   $ (0.87 )   $ (0.15 )
             
    NAREIT defined FFO attributable to common stockholders   $ 32,961     $ 55,773  
    NAREIT defined FFO per diluted common share   $ 0.14     $ 0.24  
             
    Core FFO attributable to common stockholders   $ 34,967     $ 56,592  
    Core FFO per diluted common share   $ 0.15     $ 0.25  
             
    AFFO attributable to common stockholders   $ 66,220     $ 74,964  
    AFFO per diluted common share   $ 0.29     $ 0.33  
                     

    Property Portfolio

    As of March 31, 2025, the Company’s portfolio of 1,045 net lease properties is located in ten countries and territories, and is comprised of 51.3 million rentable square feet. As a result of the agreement to sell 100 of the 101 properties in its former multi-tenant retail segment in connection with the Multi-Tenant Retail Disposition, the Company has determined that as of March 31, 2025, the Company operates in three remaining reportable segments based on property type: (1) Industrial & Distribution, (2) Retail (formerly known as “Single-Tenant Retail”) and (3) Office. The real estate portfolio metrics include (inclusive of the properties to be sold in the remaining two phases of the multi-tenant portfolio sale):

    • 95% leased (98%5 adjusting for vacant properties sold shortly after the first quarter of 2025) with a remaining weighted-average lease term of 6.3 years6
    • 86% of the portfolio contains contractual rent increases based on annualized straight-line rent
    • 60% of portfolio annualized straight-line rent derived from investment grade and implied investment grade rated tenants
    • 76% U.S. and Canada, 24% Europe (based on annualized straight-line rent)
    • 40% Industrial & Distribution, 25% Retail, 22% Office and 13% related to the remaining 41 properties in the Multi-Tenant Retail Portfolio that are expected to be sold in the second quarter of 2025 (based on an annualized straight-line rent)

    Capital Structure and Liquidity Resources7

    As of March 31, 2025, the Company had liquidity of $499.1 million and $1.4 billion of capacity under its revolving credit facility. The Company had net debt of $3.7 billion8, including $2.3 billion of gross mortgage debt. The Company successfully reduced its outstanding net debt balance by $833.2 million from fourth quarter 2024.

    As of March 31, 2025, the percentage of debt that is fixed rate (including variable rate debt fixed with swaps) was 91%. The Company’s total combined debt had a weighted average interest rate of 4.2% (4.4% when including mortgages classified as part of discontinued operations) resulting in an interest coverage ratio of 2.5 times9. Weighted-average debt maturity was 2.7 years as of March 31, 2025.

    Footnotes/Definitions

    1 While we consider AFFO a useful indicator of our performance, we do not consider AFFO as an alternative to net income (loss) or as a measure of liquidity. Furthermore, other REITs may define AFFO differently than we do. Projected AFFO per share data included in this release is for informational purposes only and should not be relied upon as indicative of future dividends or as a measure of future liquidity.
    2 Closed plus disposition pipeline of $2.1 billion as of May 1, 2025. Includes $1.9 billion of closed plus pipeline occupied dispositions at a cash cap rate of 8.3% and $201 million of closed plus pipeline vacant dispositions. The properties included in our disposition pipeline for such purposes include those for which we have entered into purchase and sale agreements (“PSAs”) or non-binding letters of intents (“LOIs”). There can be no assurance that the transactions contemplated by such PSAs or LOIs will be completed on the terms contemplated, if at all.
    3 As used herein, “Investment Grade Rating” includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied Investment Grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant’s obligation under the lease) or by using a proprietary Moody’s analytical tool, which generates an implied rating by measuring a company’s probability of default. The term “parent” for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant or a guarantor. Ratings information is as of March 31, 2025. Comprised of 33.3% leased to tenants with an actual investment grade rating and 26.8% leased to tenants with an Implied Investment Grade rating based on annualized cash rent as of March 31, 2025.
    4 We do not provide guidance on net income. We only provide guidance on AFFO per share and our Net Debt to Adjusted EBITDA ratio and do not provide reconciliations of this forward-looking non-GAAP guidance to net income per share or our debt to net income due to the inherent difficulty in quantifying certain items necessary to provide such reconciliations as a result of their unknown effect, timing and potential significance. Examples of such items include impairment of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions and other non-recurring expenses.
    5 First quarter 2025 occupancy was temporarily impacted by the vacancy of Contractor’s Steel, a privately-owned and operated full-service steel supplier that occupied nearly 1.4 million square feet. Following their departure and subsequent to the first quarter of 2025, GNL sold all five vacant properties, which helped minimize vacancy downtime. Including the sale of these properties, GNL’s pro-forma first quarter of 2025 occupancy would be 98% compared to the 95% provided in company filings.
    6 Weighted-average remaining lease term in years is based on square feet as of March 31, 2025.
    7 During the three months ended March 31, 2025, the Company did not sell any shares of Common Stock or Series B Preferred Stock through its Common Stock or Series B Preferred Stock “at-the-market” programs. However, as of May 2, 2025, the Company had repurchased 7.9 million shares of its outstanding common stock under its Share Repurchase Program for a total of $59.4 million, including 2.4 million shares repurchased in the first quarter of 2025 for a net amount of $19.4 million.
    8 Comprised of the principal amount of GNL’s outstanding debt totaling $3.9 billion less cash and cash equivalents totaling $147.0 million, as of March 31, 2025.
    9 The interest coverage ratio is calculated by dividing adjusted EBITDA for the applicable quarter by cash paid for interest (calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net). Management believes that Interest Coverage Ratio is a useful supplemental measure of our ability to service our debt obligations. Adjusted EBITDA and Cash Paid for Interest are Non-GAAP metrics and are reconciled below.

    Conference Call 

    GNL will host a webcast and conference call on May 8, 2025 at 11:00 a.m. ET to discuss its financial and operating results.

    To listen to the live call, please go to GNL’s “Investor Relations” section of the website at least 15 minutes prior to the start of the call to register and download any necessary audio software.

    Dial-in instructions for the conference call and the replay are outlined below.

    Conference Call Details

    Live Call

    Dial-In (Toll Free): 1-877-407-0792
    International Dial-In: 1-201-689-8263

    Conference Replay*

    For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the GNL website at www.globalnetlease.com

    Or dial in below:

    Domestic Dial-In (Toll Free): 1-844-512-2921

    International Dial-In: 1-412-317-6671

    Conference Number: 13750622

    *Available from 2:00 p.m. ET on May 8, 2025 through August 8, 2025.

    Supplemental Schedules 

    The Company will furnish supplemental information packages with the Securities and Exchange Commission (the “SEC”) to provide additional disclosure and financial information. Once posted, the supplemental package can be found under the “Presentations” tab in the Investor Relations section of GNL’s website at www.globalnetlease.com and on the SEC website at www.sec.gov. 

    About Global Net Lease, Inc. 

    Global Net Lease, Inc. is a publicly traded real estate investment trust listed on the NYSE, which focuses on acquiring and managing a global portfolio of income producing net lease assets across the United States, United Kingdom, and Western and Northern Europe. Additional information about GNL can be found on its website at www.globalnetlease.com.

    Forward-Looking Statements

    The statements in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. The words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “expects,” “estimates,” “projects,” “potential,” “predicts,” “plans,” “intends,” “would,” “could,” “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the risks that any potential future acquisition or disposition (including the proposed closing of the encumbered properties portion of the multi-tenant portfolio) by the Company is subject to market conditions, capital availability and timing considerations and may not be identified or completed on favorable terms, or at all. Some of the risks and uncertainties, although not all risks and uncertainties, that could cause the Company’s actual results to differ materially from those presented in the Company’s forward-looking statements are set forth in the “Risk Factors” and “Quantitative and Qualitative Disclosures about Market Risk” sections in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and all of its other filings with the U.S. Securities and Exchange Commission, as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

    Contacts: 

    Investors and Media:
    Email: investorrelations@globalnetlease.com
    Phone: (332) 265-2020

     
    Global Net Lease, Inc.
    Consolidated Balance Sheets (Unaudited)
    (In thousands)
        March 31,
    2025
      December 31,
    2024
    ASSETS        
    Real estate investments, at cost:        
    Land   $ 755,520     $ 802,317  
    Buildings, fixtures and improvements     3,972,434       4,120,664  
    Construction in progress     2,024       3,364  
    Acquired intangible lease assets     648,368       695,597  
    Total real estate investments, at cost     5,378,346       5,621,942  
    Less accumulated depreciation and amortization     (1,016,159 )     (999,909 )
    Total real estate investments, net     4,362,187       4,622,033  
    Real estate assets held for sale     171,675       17,406  
    Assets related to discontinued operations     670,483       1,816,131  
    Cash and cash equivalents     147,047       159,698  
    Restricted cash     59,144       64,510  
    Derivative assets, at fair value     327       2,471  
    Unbilled straight-line rent     92,757       89,804  
    Operating lease right-of-use asset     67,461       66,163  
    Prepaid expenses and other assets     51,360       51,504  
    Multi-tenant disposition receivable, net     108,729        
    Deferred tax assets     4,915       4,866  
    Goodwill     44,842       51,370  
    Deferred financing costs, net     8,407       9,808  
    Total Assets   $ 5,789,334     $ 6,955,764  
             
    LIABILITIES AND EQUITY        
    Mortgage notes payable, net   $ 1,774,116     $ 1,768,608  
    Revolving credit facility     547,406       1,390,292  
    Senior notes, net     911,416       906,101  
    Acquired intangible lease liabilities, net     20,441       24,353  
    Derivative liabilities, at fair value     2,679       3,719  
    Accounts payable and accrued expenses     47,789       52,878  
    Operating lease liability     40,673       40,080  
    Prepaid rent     14,389       13,571  
    Deferred tax liability     5,991       5,477  
    Dividends payable     11,990       11,909  
    Real estate liabilities held for sale     1,377        
    Liabilities related to discontinued operations     495,515       551,818  
    Total Liabilities     3,873,782       4,768,806  
    Commitments and contingencies            
    Stockholders’ Equity:        
    7.25% Series A cumulative redeemable preferred stock     68       68  
    6.875% Series B cumulative redeemable perpetual preferred stock     47       47  
    7.50% Series D cumulative redeemable perpetual preferred stock     79       79  
    7.375% Series E cumulative redeemable perpetual preferred stock     46       46  
    Common stock     3,617       3,640  
    Additional paid-in capital     4,342,134       4,359,264  
    Accumulated other comprehensive loss     (15,755 )     (25,844 )
    Accumulated deficit     (2,414,684 )     (2,150,342 )
    Total Stockholders’ Equity     1,915,552       2,186,958  
    Total Liabilities and Equity   $ 5,789,334     $ 6,955,764  
                     
    Global Net Lease, Inc.
    Consolidated Statements of Operations (Unaudited)
    (In thousands, except share and per share data)
        Three Months Ended March 31,
          2025       2024  
    Revenue from tenants   $ 132,415     $ 147,880  
             
    Expenses:        
    Property operating     13,953       17,796  
    Impairment charges     60,315       4,327  
    Merger, transaction and other costs     1,579       753  
    General and administrative     16,203       14,663  
    Equity-based compensation     3,093       1,973  
    Depreciation and amortization     56,334       57,172  
    Goodwill impairment     7,134        
    Total expenses     158,611       96,684  
    Operating (loss) income before gain on dispositions of real estate investments     (26,196 )     51,196  
    (Loss) gain on dispositions of real estate investments     (1,678 )     5,868  
    Operating (loss) income     (27,874 )     57,064  
    Other income (expense):        
    Interest expense     (53,437 )     (64,593 )
    Loss on extinguishment and modification of debt     (418 )     (58 )
    (Loss) gain on derivative instruments     (3,856 )     1,588  
    Unrealized (losses) gains on undesignated foreign currency advances and other hedge ineffectiveness     (6,351 )     1,032  
    Other income (expense)     48       (40 )
    Total other expense, net     (64,014 )     (62,071 )
    Net loss before income taxes     (91,888 )     (5,007 )
    Income tax provision     (3,280 )     (2,358 )
    Loss from continuing operations     (95,168 )     (7,365 )
    Loss from discontinued operations     (94,211 )     (16,386 )
    Net loss     (189,379 )     (23,751 )
    Preferred stock dividends     (10,936 )     (10,936 )
    Net loss attributable to common stockholders   $ (200,315 )   $ (34,687 )
             
    Basic and Diluted Loss Per Share:        
    Net loss per share from continuing operations   $ (0.46 )   $ (0.08 )
    Net loss per share from discontinued operations     (0.41 )     (0.07 )
    Net loss per share attributable to common stockholders — Basic and Diluted[1]   $ (0.87 )   $ (0.15 )
             
    Weighted average shares outstanding — Basic and Diluted     230,264       230,320  
                     
                     
    Global Net Lease, Inc.
    Quarterly Reconciliation of Non-GAAP Measures (Unaudited)
    (In thousands)
        Three Months Ended
    March 31,
          2025       2024  
    Adjusted EBITDA        
    Net loss   $ (189,379 )   $ (23,751 )
    Depreciation and amortization     56,334       57,172  
    Interest expense     53,437       64,593  
    Income tax expense     3,280       2,358  
    Discontinued operations adjustments     47,219       53,018  
    EBITDA     (29,109 )     153,390  
    Impairment charges     60,315       4,327  
    Equity-based compensation     3,093       1,973  
    Merger, transaction and other costs     1,579       753  
    Loss (gain) on dispositions of real estate investments     1,678       (5,867 )
    Loss (gain) on derivative instruments     3,856       (1,588 )
    Unrealized losses (gains) on undesignated foreign currency advances and other hedge ineffectiveness     6,351       (1,032 )
    Loss on extinguishment and modification of debt     418       58  
    Other (income) expense      (48 )     40  
    Expenses attributable to European tax restructuring[1]           469  
    Transition costs related to the REIT Merger and Internalization[2]           2,826  
    Goodwill impairment[3]     7,134        
    Discontinued operations adjustments     83,149       (16 )
    Adjusted EBITDA     138,416       155,333  
    Net operating income (NOI)        
    General and administrative     16,203       14,663  
    Expenses attributable to European tax restructuring[1]           (469 )
    Transition costs related to the Merger and Internalization[2]           (2,826 )
    Discontinued operations adjustments     1,255       1,514  
    NOI     155,874       168,215  
    Amortization related to above- and below- market lease intangibles and right-of-use assets, net     160       2,225  
    Straight-line rent     (5,235 )     (4,562 )
    Cash NOI   $ 150,799     $ 165,878  
             
    Cash Paid for Interest:        
    Interest Expense – continuing operations   $ 53,437     $ 64,593  
    Interest Expense – discontinued operations     17,457       18,160  
    Non-cash portion of interest expense     (2,486 )     (2,394 )
    Amortization of discounts on mortgages and senior notes     (13,960 )     (15,338 )
    Total cash paid for interest   $ 54,448     $ 65,021  
                     
    _____________
    [1] Amounts relate to costs incurred related to the tax restructuring of our European entities. We do not consider these expenses to be part of our normal operating performance and have, accordingly, increased Adjusted EBITDA for these amounts.
    [2] Amounts include costs related to (i) compensation incurred for our former Co-Chief Executive Officer who retired effective March 31, 2024; (ii) a transition service agreement with our former advisor and; (iii) insurance premiums related to expiring directors and officers insurance of former RTL directors. We do not consider these expenses to be part of our normal operating performance and have, accordingly, increased Adjusted EBITDA for these amounts.
    [3] This is a non-cash item and is added back as it is not considered indicative of operating performance.
                     
    Global Net Lease, Inc.
    Quarterly Reconciliation of Non-GAAP Measures (Unaudited)
    (In thousands)
        Three Months Ended
    March 31,
          2025       2024  
    Net loss attributable to stockholders (in accordance with GAAP)   $ (200,315 )   $ (34,687 )
    Impairment charges     60,315       4,327  
    Depreciation and amortization     56,334       57,172  
    Loss (gain) on dispositions of real estate investments     1,678       (5,867 )
    Discontinued operations FFO adjustments     114,949       34,828  
    FFO (defined by NAREIT)     32,961       55,773  
    Merger, transaction and other costs     1,579       753  
    Loss on extinguishment and modification of debt     418       58  
    Discontinued operations Core FFO adjustments     9       8  
    Core FFO attributable to common stockholders     34,967       56,592  
    Non-cash equity-based compensation     3,093       1,973  
    Non-cash portion of interest expense     2,486       2,394  
    Amortization related to above- and below-market lease intangibles and right-of-use assets, net     160       2,225  
    Straight-line rent     (5,235 )     (4,562 )
    Unrealized losses (gains) on undesignated foreign currency advances and other hedge ineffectiveness     6,351       (1,032 )
    Eliminate unrealized losses (gains) on foreign currency transactions[1]     3,304       (1,259 )
    Amortization of discounts on mortgages and senior notes     13,960       15,338  
    Expenses attributable to European tax restructuring[2]           469  
    Transition costs related to the REIT Merger and Internalization[3]           2,826  
    Goodwill impairment[4]     7,134        
    Adjusted funds from operations (AFFO) attributable to common stockholders   $ 66,220     $ 74,964  
                     
    _____________
    [1] For AFFO purposes, we add back unrealized (gain) loss. For the three months ended March 31, 2025, loss on derivative instruments was $3.9 million, which consisted of unrealized losses of $3.3 million and realized losses of $0.6 million. For the three months ended March 31, 2024, the gain on derivative instruments was $1.6 million which consisted of unrealized gains of $1.3 million and realized gains of $0.3 million.
    [2] Amounts relate to costs incurred related to the tax restructuring of our European entities. We do not consider these expenses to be part of our normal operating performance and have, accordingly, increased AFFO for these amounts.
    [3] Amounts include costs related to (i) compensation incurred for our former Co-Chief Executive Officer who retired effective March 31, 2024; (ii) a transition service agreement with our former advisor and; (iii) insurance premiums related to expiring directors and officers insurance of former RTL directors. We do not consider these expenses to be part of our normal operating performance and have, accordingly, increased AFFO for these amounts.
    [4] This is a non-cash item and is added back as it is not considered indicative of operating performance.
                     

    The following table provides operating financial information for the Company’s reportable segments:

        Three Months Ended March 31,
    (In thousands)     2025     2024
    Industrial & Distribution:        
    Revenue from tenants   $ 58,009   $ 61,994
    Property operating expense     5,257     4,644
    Net Operating Income   $ 52,752   $ 57,350
             
    Retail[1], [2]:        
    Revenue from tenants   $ 36,958   $ 42,595
    Property operating expense     3,906     5,098
    Net Operating Income   $ 33,052   $ 37,497
             
    Office[2]:        
    Revenue from tenants   $ 37,448   $ 35,096
    Property operating expense     4,790     5,258
    Net Operating Income   $ 32,658   $ 29,838
             
    Multi-Tenant Retail[3]:        
    Revenue from tenants   $   $ 8,195
    Property operating expense         2,796
    Net Operating Income   $   $ 5,399
                 
    _____________
    [1] Amounts in the Retail segment reflect the reclassification and inclusion of one property that was previously part of the Multi-Tenant Retail segment, which is not included in the Multi-Tenant Retail Disposition.
    [2] Amounts in the Retail segment and Office segment reflect changes to the reclassification of one tenant from the Office segment to the Retail segment to conform to the current year presentation based on a re-evaluation of the property type.
    [3] Reflects former Multi-Tenant Retail properties that were sold individually prior to December 31, 2024. Does not include the Multi-Tenant Retail Portfolio which is presented as a discontinued operation.
                 

    Caution on Use of Non-GAAP Measures

    Funds from Operations (“FFO”), Core Funds from Operations (“Core FFO”), Adjusted Funds from Operations (“AFFO”), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), Net Operating Income (“NOI”) and Cash Net Operating Income (“Cash NOI”) and Cash Paid for Interest should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP measures.

    Other REITs may not define FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition (as we do), or may interpret the current NAREIT definition differently than we do, or may calculate Core FFO or AFFO differently than we do. Consequently, our presentation of FFO, Core FFO and AFFO may not be comparable to other similarly-titled measures presented by other REITs in our peer group.

    We consider FFO, Core FFO and AFFO useful indicators of our performance. Because FFO, Core FFO and AFFO calculations exclude such factors as depreciation and amortization of real estate assets and gain or loss from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), FFO, Core FFO and AFFO presentations facilitate comparisons of operating performance between periods and between other REITs.

    As a result, we believe that the use of FFO, Core FFO and AFFO, together with the required GAAP presentations, provide a more complete understanding of our operating performance including relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. However, FFO, Core FFO and AFFO are not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Investors are cautioned that FFO, Core FFO and AFFO should only be used to assess the sustainability of our operating performance excluding these activities, as they exclude certain costs that have a negative effect on our operating performance during the periods in which these costs are incurred.

    Funds from Operations, Core Funds from Operations and Adjusted Funds from Operations

    Funds From Operations

    Due to certain unique operating characteristics of real estate companies, as discussed below, NAREIT, an industry trade group, has promulgated a measure known as FFO, which we believe to be an appropriate supplemental measure to reflect the operating performance of a REIT. FFO is not equivalent to net income or loss as determined under GAAP.

    We calculate FFO, a non-GAAP measure, consistent with the standards established over time by the Board of Governors of NAREIT, as restated in a White Paper approved by the Board of Governors of NAREIT effective in December 2018 (the “White Paper”). The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding depreciation and amortization related to real estate, gain and loss from the sale of certain real estate assets, gain and loss from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for unconsolidated partnerships and joint ventures are calculated to exclude the proportionate share of the non-controlling interest to arrive at FFO, Core FFO, AFFO and NOI attributable to stockholders, as applicable. Our FFO calculation complies with NAREIT’s definition.

    FFO includes adjustments related to the treatment of the sale of the Multi-Tenant Retail Portfolio as a discontinued operation, which includes adjustments for depreciation and amortization and loss (gain) on dispositions of real estate investments.

    The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, and straight-line amortization of intangibles, which implies that the value of a real estate asset diminishes predictably over time. We believe that, because real estate values historically rise and fall with market conditions, including inflation, interest rates, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation and certain other items may be less informative. Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate related depreciation and amortization, among other things, provides a more complete understanding of our performance to investors and to management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income.

    Core Funds From Operations

    In calculating Core FFO, we start with FFO, then we exclude certain non-core items such as merger, transaction and other costs, as well as certain other costs that are considered to be non-core, such as debt extinguishment or modification costs. The purchase of properties, and the corresponding expenses associated with that process, is a key operational feature of our core business plan to generate operational income and cash flows in order to make dividend payments to stockholders. In evaluating investments in real estate, we differentiate the costs to acquire the investment from the subsequent operations of the investment. We also add back non-cash write-offs of deferred financing costs, prepayment penalties and certain other costs incurred with the early extinguishment or modification of debt which are included in net income but are considered financing cash flows when paid in the statement of cash flows. We consider these write-offs and prepayment penalties to be capital transactions and not indicative of operations. By excluding expensed acquisition, transaction and other costs as well as non-core costs, we believe Core FFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties.

    Core FFO includes adjustments related to the treatment of the sale of the Multi-Tenant Retail Portfolio as a discontinued operation, which includes adjustments for acquisition and transaction costs and loss on extinguishment of debt.

    Adjusted Funds From Operations

    In calculating AFFO, we start with Core FFO, then we exclude certain income or expense items from AFFO that we consider more reflective of investing activities, other non-cash income and expense items and the income and expense effects of other activities or items, including items that were paid in cash that are not a fundamental attribute of our business plan or were one time or non-recurring items. These items include, for example, early extinguishment or modification of debt and other items excluded in Core FFO as well as unrealized gain and loss, which may not ultimately be realized, such as gain or loss on derivative instruments, gain or loss on foreign currency transactions, and gain or loss on investments. In addition, by excluding non-cash income and expense items such as amortization of above-market and below-market leases intangibles, amortization of deferred financing costs, straight-line rent and equity-based compensation from AFFO, we believe we provide useful information regarding income and expense items which have a direct impact on our ongoing operating performance. We also exclude revenue attributable to the reimbursement by third parties of financing costs that we originally incurred because these revenues are not, in our view, related to operating performance. We also include the realized gain or loss on foreign currency exchange contracts for AFFO as such items are part of our ongoing operations and affect our current operating performance.

    In calculating AFFO, we also exclude certain expenses which under GAAP are treated as operating expenses in determining operating net income. All paid and accrued acquisition, transaction and other costs (including prepayment penalties for debt extinguishments or modifications and merger related expenses) and certain other expenses, including expenses related to our European tax restructuring and transition costs related to the Merger and Internalization, negatively impact our operating performance during the period in which expenses are incurred or properties are acquired and will also have negative effects on returns to investors, but are excluded by us as we believe they are not reflective of our on-going performance. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income. In addition, as discussed above, we view gain and loss from fair value adjustments as items which are unrealized and may not ultimately be realized and not reflective of ongoing operations and are therefore typically adjusted for when assessing operating performance. Excluding income and expense items detailed above from our calculation of AFFO provides information consistent with management’s analysis of our operating performance. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such changes that may reflect anticipated and unrealized gain or loss, we believe AFFO provides useful supplemental information. By providing AFFO, we believe we are presenting useful information that can be used to, among other things, assess our performance without the impact of transactions or other items that are not related to our portfolio of properties. AFFO presented by us may not be comparable to AFFO reported by other REITs that define AFFO differently. Furthermore, we believe that in order to facilitate a clear understanding of our operating results, AFFO should be examined in conjunction with net income (loss) calculated in accordance with GAAP and presented in our consolidated financial statements. AFFO should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or ability to make distributions.

    Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Net Operating Income, Cash Net Operating Income and Cash Paid for Interest

    We believe that Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization adjusted for acquisition, transaction and other costs, other non-cash items and including our pro-rata share from unconsolidated joint ventures, is an appropriate measure of our ability to incur and service debt. We also exclude revenue attributable to the reimbursement by third parties of financing costs that we originally incurred because these revenues are not, in our view, related to operating performance. All paid and accrued acquisition, transaction and other costs (including prepayment penalties for debt extinguishments or modifications) and certain other expenses, including expenses related to our European tax restructuring and transition costs related to the Merger and Internalization, negatively impact our operating performance during the period in which expenses are incurred or properties are acquired and will also have negative effects on returns to investors, but are not reflective of on-going performance. Adjusted EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income (loss) as calculated in accordance with GAAP as an indicator of our operating activities. Other REITs may calculate Adjusted EBITDA differently and our calculation should not be compared to that of other REITs.

    EBITDA includes adjustments related to the treatment of the sale of the Multi-Tenant Retail Portfolio as a discontinued operation, which includes adjustments for depreciation and amortization and interest expense. Adjusted EBITDA includes adjustments related to the treatment of the sale of the Multi-Tenant Retail Portfolio as a discontinued operation, which includes adjustments for merger, transaction and other costs, (loss) gain on dispositions of real estate investments, loss (gain) on derivative instruments, loss on extinguishment of debt and other income (expense).

    NOI is a non-GAAP financial measure equal to net income (loss), the most directly comparable GAAP financial measure, less discontinued operations, interest, other income and income from preferred equity investments and investment securities, plus corporate general and administrative expense, acquisition, transaction and other costs, depreciation and amortization, other non-cash expenses and interest expense. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe NOI is a useful measure for evaluating the operating performance of our real estate assets and to make decisions about resource allocations. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition activity on an unlevered basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity.

    Cash NOI is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as net operating income (which is separately defined herein) excluding amortization of above/below market lease intangibles and straight-line rent adjustments that are included in GAAP lease revenues. We believe that Cash NOI is a helpful measure that both investors and management can use to evaluate the current financial performance of our properties and it allows for comparison of our operating performance between periods and to other REITs. Cash NOI should not be considered as an alternative to net income, as an indication of our financial performance, or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present Cash NOI may not be directly comparable to the way other REITs calculate and present Cash NOI.

    Cash NOI includes all of the adjustments described above for Adjusted EBITDA related to the treatment of the sale of the Multi-Tenant Retail Portfolio as a discontinued operation, as well as adjustments for general and administrative expenses.

    Cash Paid for Interest is calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net. Management believes that Cash Paid for Interest provides useful information to investors to assess our overall solvency and financial flexibility. Cash Paid for Interest should not be considered as an alternative to interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.

    The MIL Network

  • MIL-OSI: Greenlight Re Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Net Income Expands to $29.6 million Despite California Wildfire Losses,
    Leading to Fully Diluted Book Value Per Share Growth of 5.1%

    GRAND CAYMAN, Cayman Islands, May 07, 2025 (GLOBE NEWSWIRE) — Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (“Greenlight Re” or the “Company”) today reported its financial results for the first quarter ended March 31, 2025.

    First Quarter 2025 Highlights (all comparisons are to first quarter 2024 unless noted otherwise):

    • Gross premiums written increased 14.1% to $247.9 million;
    • Net premiums earned increased 4.3% to $168.5 million;
    • Net underwriting loss of $7.8 million, compared to net underwriting income of $3.4 million;
    • Combined ratio of 104.6%, compared to 97.9%;
    • Total investment income of $40.5 million, compared to $31.4 million;
    • Net income of $29.6 million, or $0.86 per diluted ordinary share, compared to net income of $27.0 million, or $0.78 per diluted ordinary share; and
    • Fully diluted book value per share increased 5.1% to $18.87, from $17.95 at December 31, 2024.

    Greg Richardson, Chief Executive Officer of Greenlight Re, stated, “We delivered strong book value per share growth of 5.1% this quarter, driven by an outstanding return of 7.2% from our Solasglas investment portfolio despite challenging market conditions. These results more than offset the financial impact of the California wildfires, which contributed 14 combined ratio points for the quarter, in line with the preliminary loss estimates we previously disclosed.”

    David Einhorn, Chairman of the Board of Directors, said, “Our investment portfolio performed well during what appears to be the beginning of a bear market. We are positioning Solasglas to have low gross and net exposure as we ride out what should be a period of high volatility ahead of what we expect will be an improved investment opportunity set.”

    Greenlight Capital Re, Ltd. First Quarter 2025 Earnings Call

    Greenlight Re will host a live conference call to discuss its financial results on Thursday, May 8, 2025, at 9:00 a.m. Eastern Time. Dial-in details:
            
    U.S. toll free: 1-877-407-9753
    International: 1-201-493-6739

    The conference call can also be accessed via webcast at:
    https://event.webcasts.com/starthere.jsp?ei=1714274&tp_key=429d07a808

    A telephone replay will be available following the call through May 13, 2025. The replay of the call may be accessed by dialing 1-877-660-6853 (U.S. toll free) or 1-201-612-7415 (international), access code 13752944. An audio file of the call will also be available on the Company’s website, www.greenlightre.com.

    Non-GAAP Financial Measures
    In presenting the Company’s results, management has included fully diluted book value per share as a financial measure that is not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). This measure is referred to as a non-GAAP measure. The non-GAAP measure may be defined or calculated differently by other companies. Management believes the measure allows for a more thorough understanding of the Company’s performance. The non-GAAP measure may not be comparable to similarly titled measures reported by other companies and should be used to monitor our results and should be considered in addition to, and not viewed as a substitute for those measures determined in accordance with GAAP. Reconciliation of the measure to the most comparable GAAP figures is included in the attached financial information in accordance with Regulation G.

    Forward-Looking Statements
    This news release contains forward-looking statements concerning Greenlight Capital Re, Ltd. and/or its subsidiaries (the “Company”) within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on the Company’s behalf. These risks and uncertainties include a downgrade or withdrawal of our A.M. Best ratings; any suspension or revocation of any of our licenses; losses from catastrophes; the loss of significant brokers; the performance of Solasglas Investments, LP; the carry values of our investments made under our Greenlight Re Innovations segment may differ significantly from those that would be used if we carried these investments at fair value; and other factors described in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as those factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, which speak only as to the date of this release, whether as a result of new information, future events, or otherwise, except as provided by law.

    About Greenlight Capital Re, Ltd.
    Greenlight Re (www.greenlightre.com) provides multiline property and casualty insurance and reinsurance through its licensed and regulated reinsurance entities in the Cayman Islands and Ireland, and its Lloyd’s platform, Greenlight Innovation Syndicate 3456. The Company complements its underwriting activities with a non-traditional investment approach designed to achieve higher rates of return over the long term than reinsurance companies that exclusively employ more traditional investment strategies. The Company’s innovations unit, Greenlight Re Innovations, supports technology innovators in the (re)insurance space by providing investment capital, risk capacity, and access to a broad insurance network.

    Investor Relations Contact
    Karin Daly
    Vice President, The Equity Group Inc.
    (212) 836-9623
    IR@greenlightre.ky

           
    GREENLIGHT CAPITAL RE, LTD.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (expressed in thousands of U.S. dollars, except per share and share amounts)
           
      March 31,
    2025
      December 31,
    2024
      (Unaudited)    
    Assets      
    Investments      
    Investment in related party investment fund, at fair value $ 435,341   $ 387,144
    Other investments   73,266     73,160
    Total investments   508,607     460,304
    Cash and cash equivalents   47,477     64,685
    Restricted cash and cash equivalents   595,282     584,402
    Reinsurance balances receivable (net of allowance for expected credit losses)   768,711     704,483
    Loss and loss adjustment expenses recoverable (net of allowance for expected credit losses)   87,963     85,790
    Deferred acquisition costs   96,759     82,249
    Unearned premiums ceded   38,895     29,545
    Other assets   8,402     4,765
    Total assets $ 2,152,096   $ 2,016,223
    Liabilities and equity      
    Liabilities      
    Loss and loss adjustment expense reserves $ 916,600   $ 860,969
    Unearned premium reserves   384,311     324,551
    Reinsurance balances payable   93,730     105,892
    Funds withheld   21,825     21,878
    Other liabilities   8,992     6,305
    Debt   59,834     60,749
    Total liabilities   1,485,292     1,380,344
    Shareholders’ equity      
    Ordinary share capital (par value $0.10; issued and outstanding, 34,557,449) (2024: par value $0.10; issued and outstanding, 34,831,324) $ 3,456   $ 3,483
    Additional paid-in capital   482,876     481,551
    Retained earnings   180,472     150,845
    Total shareholders’ equity   666,804     635,879
    Total liabilities and equity $ 2,152,096   $ 2,016,223
               
       
    GREENLIGHT CAPITAL RE, LTD.
    CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (Unaudited)
    (expressed in thousands of U.S. dollars, except percentages and per share amounts)
       
      Three months ended March 31
        2025       2024  
    Underwriting results:      
    Gross premiums written $ 247,945     $ 217,258  
    Gross premiums ceded   (28,548 )     (23,181 )
    Net premiums written   219,397       194,077  
    Change in net unearned premium reserves   (50,934 )     (32,541 )
    Net premiums earned $ 168,463     $ 161,536  
    Net loss and LAE incurred:      
    Current year $ (118,666 )   $ (103,925 )
    Prior year   (4,218 )     (5,401 )
    Net loss and LAE incurred   (122,884 )     (109,326 )
    Acquisition costs   (46,866 )     (41,610 )
    Underwriting expenses   (6,358 )     (6,339 )
    Deposit interest expense, net   (149 )     (876 )
    Net underwriting income (loss) $ (7,794 )   $ 3,385  
           
    Income from investment in Solasglas $ 32,197     $ 18,248  
    Net investment income   8,287       13,178  
    Total investment income $ 40,484     $ 31,426  
           
    Corporate and other expenses $ (4,672 )   $ (4,375 )
    Foreign exchange gains (losses)   4,355       (1,649 )
    Interest expense   (1,464 )     (1,249 )
    Income tax expense   (1,282 )     (519 )
    Net income $ 29,627     $ 27,019  
           
    Earnings per share      
    Basic $ 0.87     $ 0.79  
    Diluted $ 0.86     $ 0.78  
           
    Underwriting ratios:      
    Current year loss ratio   70.4 %     64.3 %
    Prior year reserve development ratio   2.5 %     3.3 %
    Loss ratio   72.9 %     67.6 %
    Acquisition cost ratio   27.8 %     25.8 %
    Composite ratio   100.7 %     93.4 %
    Underwriting expense ratio   3.9 %     4.5 %
    Combined ratio   104.6 %     97.9 %
                   
                   

    The following tables present the Company’s results by segment and on a consolidated basis:

                   
    GREENLIGHT CAPITAL RE, LTD.
    SEGMENT RESULTS OF OPERATIONS (unaudited)
    (expressed in thousands of U.S. dollars)
    Three months ended March 31, 2025
                   
      Open Market   Innovations   Corporate   Total Consolidated
    Gross premiums written $ 220,709     $ 27,466     $ (230 )   $ 247,945  
    Net premiums written $ 195,609     $ 23,971     $ (183 )   $ 219,397  
    Net premiums earned $ 149,641     $ 19,005     $ (183 )   $ 168,463  
    Net loss and LAE incurred   (112,763 )     (10,346 )     225       (122,884 )
    Acquisition costs   (40,881 )     (6,033 )     48       (46,866 )
    Other underwriting expenses   (4,797 )     (1,561 )           (6,358 )
    Deposit interest expense, net   (149 )                 (149 )
    Underwriting income (loss)   (8,949 )     1,065       90       (7,794 )
    Net investment income   5,771       448       2,068       8,287  
    Corporate and other expenses         (572 )     (4,100 )     (4,672 )
    Income from investment in Solasglas               32,197       32,197  
    Foreign exchange gains (losses)               4,355       4,355  
    Interest expense               (1,464 )     (1,464 )
    Income (loss) before income taxes $ (3,178 )   $ 941     $ 33,146     $ 30,909  
                   
    Underwriting ratios:              
    Loss ratio   75.4 %     54.4 %     123.0 %     72.9 %
    Acquisition cost ratio   27.3 %     31.7 %     26.2 %     27.8 %
    Composite ratio   102.7 %     86.1 %     149.2 %     100.7 %
    Underwriting expenses ratio   3.3 %     8.2 %     %     3.9 %
    Combined ratio   106.0 %     94.3 %     149.2 %     104.6 %
                                   
                   
    GREENLIGHT CAPITAL RE, LTD.
    SEGMENT RESULTS OF OPERATIONS (unaudited)
    (expressed in thousands of U.S. dollars)
    Three months ended March 31, 2024
                   
      Open Market   Innovations   Corporate   Total Consolidated
    Gross premiums written $ 187,061     $ 30,068     $ 129     $ 217,258  
    Net premiums written $ 167,716     $ 26,244     $ 117     $ 194,077  
    Net premiums earned $ 131,610     $ 20,197     $ 9,729     $ 161,536  
    Net loss and LAE incurred   (86,700 )     (13,127 )     (9,499 )     (109,326 )
    Acquisition costs   (33,579 )     (6,053 )     (1,978 )     (41,610 )
    Other underwriting expenses   (5,478 )     (861 )           (6,339 )
    Deposit interest expense, net   (876 )                 (876 )
    Underwriting income (loss)   4,977       156       (1,748 )     3,385  
    Net investment income   12,616       (183 )     745       13,178  
    Corporate and other expenses         (590 )     (3,785 )     (4,375 )
    Income from investment in Solasglas           18,248       18,248  
    Foreign exchange gains (losses)           (1,649 )     (1,649 )
    Interest expense           (1,249 )     (1,249 )
    Income (loss) before income taxes $ 17,593     $ (617 )   $ 10,562     $ 27,538  
                   
    Underwriting ratios:              
    Loss ratio   65.9 %     65.0 %     97.6 %     67.6 %
    Acquisition cost ratio   25.5 %     30.0 %     20.3 %     25.8 %
    Composite ratio   91.4 %     95.0 %     117.9 %     93.4 %
    Underwriting expenses ratio   4.8 %     4.3 %     %     4.5 %
    Combined ratio   96.2 %     99.3 %     117.9 %     97.9 %
                                   
    GREENLIGHT CAPITAL RE, LTD.
    KEY FINANCIAL MEASURES AND NON-GAAP MEASURES
     

    Management uses certain key financial measures, some of which are not prescribed under U.S. GAAP rules and standards (“non-GAAP financial measures”), to evaluate our financial performance, financial position, and the change in shareholder value. Generally, a non-GAAP financial measure, as defined in SEC Regulation G, is a numerical measure of a company’s historical or future financial 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 under U.S. GAAP. We believe that these measures, which may be calculated or defined differently by other companies, provide consistent and comparable metrics of our business performance to help shareholders understand performance trends and facilitate a more thorough understanding of the Company’s business. Non-GAAP financial measures should not be viewed as substitutes for those determined under U.S. GAAP.

    The key non-GAAP financial measure used in this news release is:

    • Fully diluted book value per share

    This non-GAAP financial measure is described below.

    Fully Diluted Book Value Per Share

    Our primary financial goal is to increase fully diluted book value per share over the long term. We use fully diluted book value as a financial measure in our incentive compensation plan.

    We believe that long-term growth in fully diluted book value per share is the most relevant measure of our financial performance because it provides management and investors a yardstick to monitor the shareholder value generated. Fully diluted book value per share may also help our investors, shareholders, and other interested parties form a basis of comparison with other companies within the property and casualty reinsurance industry. Fully diluted book value per share should not be viewed as a substitute for the most comparable U.S. GAAP measure, which in our view is the basic book value per share.

    We calculate basic book value per share as (a) ending shareholders’ equity, divided by (b) the total ordinary shares issued and outstanding, as reported in the consolidated financial statements. Fully diluted book value per share represents basic book value per share combined with any dilutive impact of in-the-money stock options (assuming net exercise) and all outstanding restricted stock units, “RSUs”. We believe these adjustments better reflect the ultimate dilution to our shareholders.

    The following table presents a reconciliation of the fully diluted book value per share to basic book value per share (the most directly comparable U.S. GAAP financial measure):

                       
      March 31,
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
    Numerator for basic and fully diluted book value per share:                  
    Total equity as reported under U.S. GAAP $ 666,804   $ 635,879   $ 663,418   $ 634,020   $ 624,458
    Denominator for basic and fully diluted book value per share:                  
    Ordinary shares issued and outstanding as reported and denominator for basic book value per share   34,557,449     34,831,324     34,832,493     35,321,144     35,321,144
    Add: In-the-money stock options (1) and all outstanding RSUs   773,938     590,001     602,013     594,612     585,334
    Denominator for fully diluted book value per share   35,331,387     35,421,325     35,434,506     35,915,756     35,906,478
                       
    Basic book value per share $ 19.30   $ 18.26   $ 19.05   $ 17.95   $ 17.68
    Fully diluted book value per share $ 18.87   $ 17.95   $ 18.72   $ 17.65   $ 17.39
    (1) Assuming net exercise by the grantee.
     

    The MIL Network

  • MIL-OSI: Ormat Technologies Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    REVENUE GROWTH AND RECORD QUARTERLY ADJUSTED EBITDA SUPPORT ONGOING STRATEGIC PORTFOLIO EXPANSION

    HIGHLIGHTS

    • TOTAL REVENUES AND NET INCOME1 IMPROVED 2.5% AND 4.6%, RESPECTIVELY
    • RECORD ADJUSTED EBITDA OF $150.3 MILLION, AN INCREASE OF 6.4% VS LAST YEAR
    • ENERGY STORAGE SEGMENT REVENUES INCREASED BY 120% DRIVING MEANINGFUL MARGIN INCREASE
    • SIGNED AN AGREEMENT TO ACQUIRE THE 20MW BLUE MOUNTAIN GEOTHERMAL POWER PLANT FROM CYRQ ENERGY
    • COMPANY REITERATES ITS 2025 FULL-YEAR GUIDANCE, REFLECTING STRONG EXECUTION AND CONFIDENCE IN THE BUSINESS OUTLOOK

    RENO, Nev., May 07, 2025 (GLOBE NEWSWIRE) — Ormat Technologies, Inc. (NYSE: ORA) (the “Company” or “Ormat”), a leading renewable energy company, today announced financial results for the first quarter ended March 31, 2025.

    KEY FINANCIAL RESULTS

      Q1 2025 Q1 2024 Change (%)
    GAAP Measures      
    Revenues ($ millions)      
                 Electricity 180.2   191.3   (5.8 %)
                 Product 31.8   24.8   27.9 %
                 Energy Storage 17.8   8.1   119.7 %
    Total Revenues 229.8   224.2   2.5 %
           
    Gross Profit 72.9   78.8   (7.5 %)
    Gross margin (%)      
    Electricity 33.5 % 39.0 %  
    Product 22.3 % 14.8 %  
    Energy Storage 30.6 % 7.5 %  
    Gross margin (%) 31.7 % 35.2 %  
    Operating income ($ millions) 50.9   52.6   (3.2 %)
    Net income attributable to the Company’s stockholders 40.4   38.6   4.6 %
    Diluted EPS ($) 0.66   0.64   3.1 %
    Non-GAAP Measures      
    Adjusted Net income attributable to the Company’s stockholders 41.5   39.6   4.8 %
    Adjusted Diluted EPS ($) 0.68   0.65   4.6 %
    Adjusted EBITDA2($ millions) 150.3   141.2   6.4 %

    1 Net Income attributable to the Company’s stockholder
    2 See reconciliation table below

    “Ormat had a strong start to 2025, achieving a 2.5% increase in revenue, a 4.6% rise in net income attributable to the Company’s stockholders, and a 6.4% increase in adjusted EBITDA. This growth was driven by improved performance in both our Product and Storage segments,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “Our Storage segment benefited from new capacity added over the last 12 months and from higher merchant prices in the PJM market. We expect continued good performance throughout 2025 as we transition our Storage segment to a more predictable portfolio designed to maximize profitability.”

    “While our Electricity segment experienced a slight year-over-year decline in the quarter due to previously disclosed curtailments in California and Nevada, the balance of our geothermal operations delivered a consistent, solid performance. We have several projects under development that we anticipate will reach commercial operation by the end of 2025, which we expect will deliver solid generation growth and further strengthen our earnings trajectory. Additionally, we believe that the potential easing of project permitting timelines combined with increased focus on geothermal exploration will further support our growth in the segment, expand our revenues, and help us achieve our long-term targets.”

    “I am pleased to announce that Ormat signed an agreement to acquire the Blue Mountain geothermal power plant from Cyrq Energy for $88 million, subject to standard working capital adjustments. The 20 MW facility, located in Humboldt County, was built using Ormat technology, features an existing 51 MW interconnection capacity and a Power Purchase Agreement (PPA) with NV Energy (NVE) that expires at the end of 2029. Following the acquisition, Ormat plans to upgrade the power plant, increasing its capacity by 3.5 MW. Additionally, subject to permit and PPA approval, Ormat intends to add a 13 MW solar facility to support the plant’s auxiliaries. The acquisition is anticipated to close towards the end of the second quarter. This acquisition underscores Ormat’s capability to strategically expand and enhance assets in the U.S., leveraging our advanced technology and expertise to optimize performance and efficiency. The planned upgrades and solar addition demonstrate our commitment to innovation and maximizing renewable energy output, contributing to a sustainable future.”

    Blachar continued, “The demand for electricity, particularly from baseload renewable sources, remains strong, and we continue to observe high PPA pricing in the Electricity Segment, and increased Resource Adequacy (RA) pricing in the Storage Segment. Regarding the recent reciprocal tariffs, we anticipate a limited short-term impact on our Storage Segment as we have already procured batteries for all projects currently under construction. Additionally, our Electricity Segment operations and project development have limited exposure to China, mitigating potential adverse effects from the tariffs. Ormat remains committed to delivering reliable and sustainable energy solutions and enhancing shareholder value. We will continue navigating this fluid regulatory environment with a focus on maintaining our growth trajectory and supporting the transition to a cleaner energy future.”

    FINANCIAL HIGHLIGHTS

    • Net income attributable to the Company’s stockholders for the first quarter was $40.4 million, an increase of 4.6% compared to last year. Diluted EPS for the first quarter was $0.66, an increase of 3.1%, compared to the prior year period. This increase is mainly driven by income tax benefits related to the storage facilities expected to commence commercial operation during 2025.
    • Adjusted net income attributable to the Company’s stockholders and Adjusted diluted EPS for the first quarter increased 4.8% and 4.6%, respectively.
    • Adjusted EBITDA for the first quarter was $150.3 million, an increase of 6.4% compared to 2024. The year-over-year increase in Adjusted EBITDA was driven by the Energy Storage segment, due to the contribution of new assets, higher merchant pricing in the East Coast markets, and a legal settlement with a battery supplier. In the Product segment, the increase was derived from a higher backlog and improved contract’ margins. The increase in the Storage and Product segments was partly offset by the reduction in Electricity segment EBITDA mainly due to curtailments in the U.S.
    • Electricity segment revenues decreased by 5.8% during the first quarter, compared to last year. The year-over-year decrease in the first quarter revenue was driven by the previously disclosed energy curtailments, mainly at our McGinness complex, maintenance on the transmission line by the local grid operator, and wildfires in California, which forced grid operators to curtail part of the supplied power.
    • Product segment revenues increased by 27.9% in the first quarter, driven largely by the timing of revenue recognition and our higher backlog. Gross margin increased from 14.8% in the first quarter 2024 to 22.3% in 2025, reflecting marked growth in revenue.
    • Product segment backlog stands at approximately $314 million as of May 7th, 2025, and includes the recently signed Engineering, Procurement, and Construction (EPC) contract for the development of the Te Mihi Stage 2 geothermal plant in New Zealand and the BOT project in Dominica.
    • Energy Storage segment revenues increased 119.7% for the first quarter compared to 2024. The improvement was driven by strong performance in the PJM merchant market, where a spike in cold weather along the East Coast contributed to elevated merchant pricing.

    BUSINESS HIGHLIGHTS:

    • In early May, the company signed an agreement to acquire the 20MW Blue Mountain geothermal power plant from Cyrq Energy for $88 million. Closing is expected by the end of the second quarter.
    • In February 2025, Ormat won a tender issued by the Israeli Electricity Authority and was awarded two 15-year tolling agreements for two energy storage facilities with a combined capacity of approximately 300MW/1200MWh. Ormat will retain a 50% equity interest.
    • Ormat commenced commercial operations of the 35MW Ijen geothermal power plant in Indonesia in February 2025, holding a 49% equity interest.
    • In January 2025, Ormat signed a 10-year Power Purchase Agreement (PPA) with Calpine Energy Solutions for up to 15MW of carbon-free geothermal capacity at favorable terms. This PPA will replace the current lower-priced PPA with Southern California Edison for Mammoth 2 in the first quarter of 2027.
    • We currently do not expect material impact from the new import tariffs on our 2025 and 2026 financial results. All batteries required for our projects arrived or were in transit to the U.S. before significant increased tariffs were imposed.

    2025 GUIDANCE

    • Total revenues of between $935 million and $975 million.
    • Electricity segment revenues of between $710 million and $725 million.
    • Product segment revenues of between $172 million and $187 million.
    • Energy Storage revenues of between $53 million and $63 million.
    • Adjusted EBITDA to be between $563 million and $593 million.
      • Adjusted EBITDA attributable to minority interest of approximately $21 million.

    The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three months ended March 31, 2025. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.

    DIVIDEND

    On May 7, 2025, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on June 4, 2025, to stockholders of record as of the close of business on May 21, 2025. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters.

    CONFERENCE CALL DETAILS

    Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, May 8, 2025, at 9:00 a.m. ET.

    Participants within the United States and Canada, please dial +1-800-715-9871, approximately 15 minutes prior to the scheduled start of the call. If you are calling outside of the United States and Canada, please dial +1-646-960-0440. The access code for the call is 3818407. Please request the “Ormat Technologies, Inc. call” when prompted by the conference call operator. The conference call will also be accompanied by a live webcast which will be hosted on the Investor Relations section of the Company’s website.

    A replay will be available one hour after the end of the conference call. To access the replay within the United States and Canada, please dial 1-800-770-2030. From outside of the United States and Canada, please dial +1-647-362-9199. Please use the replay access code 3818407. The webcast will also be archived on the Investor Relations section of the Company’s website.

    ABOUT ORMAT TECHNOLOGIES

    With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company, and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,400 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,538MW with a 1,248MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 290MW energy storage portfolio that is located in the U.S.

    ORMAT’S SAFE HARBOR STATEMENT

    Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues and Adjusted EBITDA, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, legal, market, industry and geopolitical developments and incentives, demand for renewable energy, and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat’s plans, objectives and expectations for future operations and are based upon its management’s current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under “Risk Factors” as described in Ormat’s most recent annual report, and in subsequent filings.

    These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Condensed Consolidated Statement of Operations
    For the Three Months Ended March 31, 2025, and 2024
     
      Three Months Ended March 31,
      2025   2024  
    Revenues: (Thousands, except per share data)
    Electricity         180,241   191,253  
    Product         31,769   24,832  
    Energy storage          17,752   8,081  
    Total revenues         229,762   224,166  
    Cost of revenues:    
    Electricity         119,833   116,730  
    Product         24,684   21,154  
    Energy storage          12,318   7,472  
    Total cost of revenues         156,835   145,356  
    Gross profit         72,927   78,810  
    Operating expenses:    
    Research and development expenses         2,542   1,564  
    Selling and marketing expenses         4,172   5,126  
    General and administrative expenses         17,909   19,537  
    Other operating income         (3,125 )  
    Write-off of unsuccessful exploration and storage activities         516    
    Operating income         50,913   52,583  
    Other income (expense):    
    Interest income         1,313   1,839  
    Interest expense, net         (34,473 ) (30,968 )
    Derivatives and foreign currency transaction gains (losses)         2,060   (1,582 )
    Income attributable to sale of tax benefits         17,571   17,476  
    Other non-operating income, net         222   26  
    Income from operations before income tax and equity in earnings of investees         37,606   39,374  
    Income tax (provision) benefit         3,795   147  
    Equity in earnings (losses) of investees         (367 ) 829  
    Net income         41,034   40,350  
    Net income attributable to noncontrolling interest         (672 ) (1,763 )
    Net income attributable to the Company’s stockholders         40,362   38,587  
    Earnings per share attributable to the Company’s stockholders:    
    Basic: 0.67   0.64  
    Diluted: 0.66   0.64  
    Weighted average number of shares used in computation of earnings per share attributable to the Company’s stockholders:    
    Basic         60,559   60,386  
    Diluted         60,840   60,536  
         
    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Condensed Consolidated Balance Sheet
    For the Period Ended March 31, 2025, and the Period Ended December 31, 2024
     
      March 31,
    2025
      December 31,
    2024
    ASSETS                                       (In thousands)
    Current assets:      
    Cash and cash equivalents          112,704     94,395  
    Restricted cash and cash equivalents (primarily related to VIEs)         112,001     111,377  
    Receivables:      
         Trade less allowance for credit losses of $249 and $163 respectively (primarily related to VIEs)         173,590     164,050  
         Other         45,489     50,792  
    Inventories         42,107     38,092  
    Costs and estimated earnings in excess of billings on uncompleted contracts 20,940     29,243  
    Prepaid expenses and other         94,023     59,173  
              Total current assets         600,854     547,122  
    Investment in unconsolidated companies          158,618     144,585  
    Deposits and other         89,021     75,383  
    Deferred income taxes         165,983     153,936  
    Property, plant and equipment, net ($3,261,700 and $3,271,248 related to VIEs, respectively) 3,497,915     3,501,886  
    Construction-in-process ($370,762 and $251,442 related to VIEs, respectively) 844,873     755,589  
    Operating leases right of use ($13,725 and $13,989 related to VIEs, respectively)         32,232     32,114  
    Finance leases right of use (none related to VIEs)         2,935     2,841  
    Intangible assets, net         295,225     301,745  
    Goodwill         151,291     151,023  
              Total assets         5,838,947     5,666,224  
           
    LIABILITIES AND EQUITY          
    Current liabilities:      
    Accounts payable and accrued expenses         201,354     234,334  
    Commercial paper (less deferred financing costs of $22 and $23, respectively)         99,978     99,977  
    Billings in excess of costs and estimated earnings on uncompleted contracts 52,198     23,091  
    Current portion of long-term debt:      
         Limited and non-recourse (primarily related to VIEs) 70,453     70,262  
         Full recourse         184,227     161,313  
         Financing Liability         5,905     4,093  
         Operating lease liabilities         3,657     3,633  
         Finance lease liabilities         1,451     1,375  
              Total current liabilities         619,223     598,078  
    Long-term debt, net of current portion:      
    Limited and non-recourse: (primarily related to VIEs and less deferred financing costs of $8,216 and $8,849, respectively) 560,824     578,204  
    Full recourse: (less deferred financing costs of $4,782 and $4,671, respectively) 957,027     822,828  
    Convertible senior notes (less deferred financing costs of $6,138 and $6,820, respectively) 470,299     469,617  
    Financing Liability         213,810     216,476  
    Operating lease liabilities         22,722     22,523  
    Finance lease liabilities         1,544     1,529  
    Liability associated with sale of tax benefits         144,081     152,292  
    Deferred income taxes         71,479     68,616  
    Liability for unrecognized tax benefits         6,481     6,272  
    Liabilities for severance pay         11,147     10,488  
    Asset retirement obligation         131,431     129,651  
    Other long-term liabilities         33,533     29,270  
         Total liabilities         3,243,601     3,105,844  
           
    Redeemable noncontrolling interest         9,573     9,448  
           
    Equity:      
    The Company’s stockholders’ equity:      
    Common stock, par value $0.001 per share; 200,000,000 shares authorized; 60,662,626 and 60,500,580 issued and outstanding as of March 31, 2025, and December 31, 2024, respectively         61     61  
    Additional paid-in capital         1,640,910     1,635,245  
    Treasury stock, at cost (258,667 shares held as of March 31, 2025, and December 31, 2024, respectively)         (17,964 )   (17,964 )
    Retained earnings         847,607     814,518  
    Accumulated other comprehensive income (loss)         (9,410 )   (6,731 )
    Total stockholders’ equity attributable to Company’s stockholders         2,461,204     2,425,129  
    Noncontrolling interest         124,569     125,803  
    Total equity         2,585,773     2,550,932  
    Total liabilities, redeemable noncontrolling interest and equity         5,838,947     5,666,224  


    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES

    Reconciliation of EBITDA and Adjusted EBITDA
    For the Three Months Ended March 31, 2025, and 2024

    We calculate EBITDA as net income before interest, taxes, depreciation, amortization and accretion. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives not designated as hedging instruments; (ii) stock-based compensation, (iii) merger and acquisition transaction costs; (iv) gain or loss from extinguishment of liabilities; (v) cost related to a settlement agreement; (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration and storage activities; and (viii) other unusual or non-recurring items. We adjust for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of these measures will enhance an investor’s ability to evaluate our financial and operating performance. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. Our Board of Directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

    The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2025, and 2024:

      Three Months Ended March 31,  
      2025    2024   
      (Dollars in thousands)  
    Net income 41,034     40,350    
    Adjusted for:        
    Interest expense, net (including amortization of deferred financing costs) 33,160     29,129    
    Income tax provision (benefit) (3,795 )   (147 )  
    Adjustment to investment in unconsolidated companies: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla and Ijen 3,421     3,352    
    Depreciation, amortization and accretion 69,157     61,676    
    EBITDA 142,977     134,360    
    Mark-to-market (gains) or losses of derivative instruments 939     813    
    Stock-based compensation 4,911     4,769    
    Allowance for bad debts 26        
    Merger and acquisition transaction costs     1,299    
    Settlement agreement 900        
    Write-off of unsuccessful exploration and storage activities 516        
    Adjusted EBITDA 150,269     141,241    


    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES

    Reconciliation of Adjusted Net Income attributable to the Company’s stockholders and Adjusted EPS
    For the Three Months Ended March 31, 2025, and 2024

    Adjusted Net Income attributable to the Company’s stockholders and Adjusted diluted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributable to the Company’s stockholders and Adjusted diluted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

    The following tables reconciles Net income attributable to the Company’s stockholders and Adjusted diluted EPS for the three months ended March 31, 2025, and 2024.

      Three Months Ended March 31,  
      2025   2024  
      (Dollars in millions, except per share data)  
    GAAP Net income attributable to the Company’s stockholders 40.4   38.6  
    Write-off of unsuccessful exploration and storage activities 0.41    
    Merger and acquisition transaction costs   1.0  
    Allowance for bad debts 0.02    
    Settlement agreement 0.71    
    Adjusted Net income attributable to the Company’s stockholders 41.5   39.6  
    GAAP diluted EPS 0.66   0.64  
    Write-off of unsuccessful exploration and storage activities 0.01    
    Merger and acquisition transaction costs   0.02  
    Allowance for bad debts 0.00    
    Settlement agreement 0.01    
    Adjusted Diluted EPS ($) 0.68   0.65  
    Ormat Technologies Contact:
    Smadar Lavi
    VP Head of IR and ESG Planning & Reporting
    775-356-9029 (ext. 65726)
    slavi@ormat.com 
    Investor Relations Agency Contact:
    Joseph Caminiti or Josh Carroll
    Alpha IR Group
    312-445-2870
    ORA@alpha-ir.com 

    The MIL Network

  • MIL-OSI: Best Fortune Teller Online For Accurate Fortune Telling In 2025 – The Psychic Experts

    Source: GlobeNewswire (MIL-OSI)

    New York City, May 07, 2025 (GLOBE NEWSWIRE) — Connect with the best fortune teller online offering accurate fortune telling and powerful insights about the future, love life, career path, and more.

    SAN FRANCISCO, CA, May 07, 2025 (GLOBE NEWSWIRE) – The psychic experts have just ranked the best fortune tellers of 2025 for those who want to know what the future holds for them. With one platform, people can connect with reliable online fortune-telling services and get answers to their pressing questions.

    Discover your destiny with the best fortune tellers online, offering accurate fortune telling that delivers clarity, truth, and trusted predictions.

    ⇒ Find out what your future holds – talk to the best fortune teller now!

    As spiritual curiosity and the demand for real psychics increase globally, the psychic experts are proud to be a trusted platform that helps users find a live fortune teller for psychic reading or fortune telling. The psychic experts are a reputable platform that reviews the best fortune teller websites. These websites provide their services through different mediums like live chat readings, video sessions, and phone consultations.

    Now, people can experience the best fortune teller online and receive accurate fortune telling with clear answers to their most important life questions.

    ⇒ Don’t guess your future – ask the best fortune teller!

    How The Psychic Experts Pick the Best Fortune Tellers

    After years of rating fortune tellers and psychic readers, the psychic experts have just launched their own curated guide of the most accurate and trusted fortune tellers of 2025.

    This new list is not just a deeper and more polished look at the best fortune tellers online, but also justifies the ratings using the five-pillar evaluation that goes like this;

    1. Accuracy & Intuition

    Do these psychic readers align their readings with events and real-life emotions? 

    2. Communication Style

    Are they communicating with clarity, empathy, and honesty?

    3. Reading Tools & Techniques

    What reading tools are being used for fortune-telling for the fortune-telling services? Tarot, runes, clairvoyance, astrology, or some other medium?

    4. Ratings & Reviews

    Do these fortune tellers have consistently high user satisfaction and offer meaningful results?

    5. Ethics & Energy

    Do they offer genuine spiritual service or try to upsell or manipulate their clients?

    Find peace of mind with the best fortune tellers specializing in accurate fortune telling for love, career, and personal growth.

    ⇒ The answers you need are here – talk to a verified fortune teller!

    What Is Fortune Telling and Why Does It Matter in 2025?

    Fortune telling is most often mystified more than it should be, which leads to misunderstandings, too. Fortune telling is just gaining insights about the future of a person or about unknown events via a range of metaphysical tools. 

    This is why many people sometimes have doubts about the authenticity of fortune-telling platforms. However, other people still believe that tarot cards, palm reading, astrology, or clairvoyant visions hold immense value, which is why they are always seeking a good fortune teller who will illuminate their path and offer clarity, compassion, and spiritual precision, and predict other information about their life and future.

    Get real answers from the best fortune tellers using accurate fortune telling to help guide your decisions and reveal your true path.

    ⇒ Real insights, real answers – start accurate fortune telling!

    2025 is filled with shifting perspectives, career transitions, uncertainty, and spiritual awakenings for many people. This increases the demand for genuine fortune tellers who offer spiritual advice or affirmation. However, many people are still cautious about whether online fortune-telling platforms can be misleading or fake. But all those doubts can be eliminated if a person checks out reviews and ratings of fortune tellers and their services before booking, or even better, approach them with an authentic platform like the-psychic-experts.com.

    In 2025, more and more people are turning to the online fortune teller world, as from the comfort of their homes, they can receive spiritual awakening and answers to their complex questions. A live fortune teller, for example, can offer genuine interpretations of someone’s life and future, dreams and events, and can help people with:

    • New relationships
    • Critical business and career decisions
    • Spiritual or karmic guidance
    • Emotional wounds from the past
    • Dreams and their interpretation
    • Complex situations arise with everyday choices.

    ⇒ Ask anything, get instant answers from the best fortune teller!

    Why Online Fortune Telling Is Booming In 2025

    With the rise of technology use and digital platforms, people turn to the internet for answers to everything. For people who want guidance from fortune tellers for their everyday purposes or for reading and spiritual consultations, a dependable platform is very necessary that carefully analyzes all the psychic reading platforms and provides unbiased ratings and reviews so that spiritual seekers can connect with genuine fortune tellers.

    The psychic experts have analyzed more than a hundred fortune-telling websites and have produced a database that claims to offer the utmost clarity and customer satisfaction. With the use of the psychic experts, users can be assured that the fortune-telling services they are going to get will be of the highest quality.

    ⇒ Wondering what’s next? Ask the best fortune teller now!

    The rise of fortune teller online services in 2025 is more prominent than ever. 

    Especially the online services, as they are convenient, anonymous, and 24/7 accessible. These online consultations and fortune-telling have revolutionized the way people seek spiritual consultations. From the comfort of their home, during a lunch break, or during a late-night moment of anxiety, platforms like the psychic experts are one umbrella under which all the seasoned fortune tellers instantly come together.

    There are many benefits of online fortune-telling in 2025, and some of them are:

    • Instant access to fortune-telling: There is no need to book weeks in advance.
    • Global Access: Connecting spiritual seekers with top psychics from all over the world.
    • A variety of Tools Include tarot, astrology, runes, numerology, and mediumship.
    • Free Trials & Readings: Many people like to try a free fortune teller before they pay online.
    • Flexible Pricing: Such online fortune-telling services are available for every budget and urgency level.
    • Authenticity: Verified ratings by the-psychic-experts.com help people avoid scams related to online fortune-telling services.

    If you still don’t know where to begin, you can try the free fortune teller online feature on the-psychic-experts.com. It is risk-free and 100% genuine and authentic.

    ⇒ Discover your destiny with the best fortune teller today!

    Why the Whole World Is Turning to Online Fortune Tellers in 2025

    Fortune telling comes in many shapes and forms. However, one of the most desired forms of fortune-telling is called “reading” and “spiritual consultation.” This type of fortune telling doesn’t rely on specific methods or devices; rather, the fortune teller gives their client predictions and advice that they claim to have come from visions or spirits.

    So, whether it’s love, career, family, or personal growth, every modern spiritual guidance-seeking individual is turning to fortune teller online services for answers to their worldly and otherworldly problems. 

    ⇒ Free fortune teller is live – ask your question now!

    However, not all readers out there are genuine or exceptional. While many websites and apps have made access to fortune tellers quite easy and affordable, it is not necessary that the said fortune tellers will always turn out to be authentic or real. This is why it is important to make sure that the quality of fortune that you are going to get will be of the highest level.

    The demand for virtual guidance through mobile apps and websites has driven the rise of online spiritual consultations, but along with it comes a jungle of unvetted services.

    This is where the psychic expert steps in. The online fortune tellers that they recommend have been in business for more than a decade. They help people who want to avail themselves of fortune-telling services get connected to qualified professionals in this field so that people can gain spiritual insights into their minds, bodies, and spirits.

    Discover the best fortune teller trusted for accurate fortune telling that reveals your destiny with clarity and truth.

    ⇒ Talk to the best fortune teller now and change your life!

    The readings provided by these spiritual professionals are very accurate because they go through an intensive screening process, which depends on detailed user review analysis and direct testing. The rigorous selection process is the reason why this platform is trustworthy and ensures that every online fortune teller it ranks is 100% experienced and effective.

    Unlike random listings or paid placements, the list of best fortune tellers by the psychic experts in 2025 list represents the top 1% of spiritual advisors. The reason for their authenticity is vigorous testing for accuracy, communication levels with their clients, and spiritual alignment.

    ⇒ Don’t wait – get accurate fortune telling instantly online!

    What Sets an Accurate Fortune Teller Apart in 2025?

    What sets an accurate fortune teller apart in 2025 is their intuitive abilities and the various divination techniques that they use to make predictions about a person’s future. These fortune tellers are able to interpret symbols, read patterns, and use tools like palm lines, tarot cards, or tea leaves in order to offer guidance and spiritual insights to individuals. With this guidance, these individuals can navigate their life journey with much clarity and in the right direction. 

    Fortune tellers also provide their clients with a better understanding of their future and correlate them with present circumstances so that the individual may make better decisions in their life, reflect on themselves, and grow personally, professionally, or spiritually.

    ⇒ Your answers are waiting – get a free fortune teller reading!

    The best fortune teller isn’t someone who claims to have psychic abilities. It’s someone who can translate the unseen energies into clear, empowering messages for their clients.

    The in-depth reviews by the psychic experts reveal the major qualities that set apart a truly accurate fortune teller in today’s world, and these are:

    • Clarity in readings – There is no room for vague perceptions
    • Emotional intelligence – alongside empathetic delivery
    • Accurate predictions that match the desires and circumstances of the client 
    • Methodical tools – Using tarot, astrology, or numerology for fortune-telling
    • Live interaction – Creating a real-time connection

    Many top-rated psychics offer free fortune teller online sessions or discounted first readings, which greatly help users test their authenticity before committing.

    ⇒ Free, fast, and accurate – talk to a fortune teller now!

    Top Features That Make a Fortune Teller Platform the Best

    Not all online fortune teller services provide the same high level of quality as the psychic experts. Here’s what sets the most validated and genuine platforms apart from others;

    Verified Reader Profiles
    All listed readers are verified and undergo proper background checks and psychic ability assessments to see if they are eligible to be featured.

    Satisfaction Guarantee
    Clients are 100% satisfied that they can receive refunds or session credits if it doesn’t go as planned, thus adding a factor of trust to the transaction.

    ⇒ Let the best fortune teller guide your next move!

    Real User Reviews
    Each psychic’s page has reviews from real users and transparent ratings, as well as client feedback and reading stats.

    Multiple Psychic Disciplines
    From astrology to numerology to clairvoyance, there are multiple disciplines on these platforms so that people can choose from their preferred method of Psychic reading.

    ⇒ Take control of your destiny – try accurate fortune telling!

    Most Popular Online Fortune Telling Methods in 2025

    If you want to reach out to a fortune teller in 2025, there are many easy ways to do so. Their availability in the digital world has also made it easy to reach out to spiritual readers via an electronic device, either with a phone call, an Android app, or a website like the-psychic-experts.com.

    Many online psychic platforms offer different ways to connect with fortune tellers. 

    Online fortune telling is an accessible spiritual art now, and through the following mediums, a person can easily contact a fortune teller anytime and anywhere in the world:

    • Live Chat Readings – Live chat readings are perfect for users who want quick answers and privacy.
    • Video Sessions – Video sessions help clients who want facial cues and a full, energetic presence during their session.
    • Phone Consultations – Phone consultations are both an old and modern method of reading, as they offer a direct, voice-to-voice connection.
    • Email Readings – Email readings are also perfect for those who prefer detailed, written records of spiritual insights.

    Each method of fortune telling has its own advantages, disadvantages, and energy levels, so the psychic experts recommend that users try more than one type of psychic reading medium to see which suits them best.

    ⇒ Get life-changing clarity from the best fortune teller!

    Most Popular Fortune Telling Services in 2025

    People wondering what the future holds for them or having trouble navigating their life’s twists seek help from reliable fortune tellers, who act like a compass in their complex lives and set them on a journey of self-discovery. The psychic experts review and reveal the most seasoned and genuine psychics, tarot readers, and astrologers, all of whom act as a beacon of insight in the day-to-day life of their spiritual seekers.

    While the-psychic-experts.com sheds light on the expert advisors that unveil the spiritual connections and energies associated with people that they didn’t even know existed, there are some pros and cons associated with online fortune-telling services.

    ⇒ Discover the truth now with the best fortune teller online!

    Pros

    One of the benefits of online fortune-telling services is that there are hundreds of psychic readers available online who are ready to help people who seek guidance from them. They have been present in this psychic industry for years, sometimes more than 2 or 3 decades. Many fortune-telling platforms have mobile applications, both for iOS and Android, that people use to access fortune-telling services from anywhere in the world. Psychic reading and fortune telling use a wide range of services and tools to make sure that the spiritual guidance they offer is accurate and genuine.

    Cons

    One of the drawbacks of online fortune-telling services is that a person may need to book psychic reading services in advance. However, the psychic experts also shed light on some psychic readers who offer a free initial consultation or demo for first-time users. Some people may also find fortune-telling services expensive.

    ⇒ Experience accurate fortune telling that actually helps!

    Different Types Of Fortune Telling Services In 2025

    Fortune telling is a very broad and intricate practice. It utilizes centuries of spiritual wisdom and intuitive insight and brings it right in front of those who seek this knowledge. Whether a person is out to seek clarity, direction, or a new way of life, fortune tellers can offer them multiple services that help them reconnect with their inner self and get spiritual guidance. Here are the most common types of services offered by fortune tellers in 2025;

    Fortune Telling

    This is the umbrella under which all other psychic and spiritual services fall. 

    Fortune telling is the navigation of signs, energies, and symbols to provide insight into the past, present, and future of a user. 

    It uses tools like crystal balls and runes and even utilizes more intuitive practices like clairvoyance to help seekers who want answers to their life’s uncertainties. 

    Fortune-telling sessions focus on personal concerns, such as love, family, money, health, and purpose, and another labyrinth of possibilities of life, and help individuals see the path more clearly, even when their whole life is chaotic.

    ⇒ Get real answers fast from a free fortune teller!

    Psychic Readings

    Psychic readings go beyond what the eyes can see. 

    Psychic readings use heightened intuition and extrasensory perception, such as cosmic airwaves, to pick up on energy fields, emotional vibrations, and spiritual signals around the person who came to the psychic. 

    The goal is not about prediction. Rather, it is about perspective. 

    A psychic can unveil hidden insights and help someone make much sense of their inner conflicts. Such psychics also help people understand emotional imbalances or navigate an important decision. 

    These psychic readings are very personal and can affect both grounding and illuminating the path of a person.

    Love Readings

    Relationships are one of the most common reasons people seek spiritual guidance. Sometimes, they are new, long-standing, but most of the time, complicated. 

    Love psychics or relationship-focused fortune tellers provide a way to understand emotional dynamics, compatibility, soulmate connections, and romantic obstacles between two people. 

    These readings peel away the emotional layers beneath a relationship and decode the feelings, intentions, and future potential of both partners involved.

    ⇒ Reveal your future with accurate fortune telling!

    Tarot Readings

    Tarot is a timeless art of psychic reading.

    It is an intuitive form of divination that reveals the past, present, and future. It uses a deck of 78 symbolic cards, with each card representing a theme, energy, or message. 

    A person will be told to pick a card, and then the reader will interpret the card based on their position and the question at hand.

    This method of psychic reading reveals complex narratives about the querent’s past, present, and future. These readings can clarify complex situations, offer insights into unseen influences, and help a person better understand their own emotions.

    Dream Analysis

    Dreams are productions of the subconscious mind, but they always try to tell us something.

    It is the subconscious mind’s way of speaking. Dream interpreters act as translators of dreams and nightmares. They can analyze symbols, emotions, and patterns in dreams and decode what the dream is trying to communicate. 

    Whether it’s a recurring dream or an unsettling nightmare, dream analysis reveals buried emotions, unresolved issues, or hidden desires. This psychic reading service even suggests the spiritual or prophetic meaning behind dreams and emotions that we experience in sleep.

    ⇒ Find real clarity fast – talk to the best fortune teller today!

    Astrology Readings

    Astrology is the study of planetary movements and their celestial alignments and how they influence life on Earth. 

    An astrologer can map out cosmic constellations and create a natal chart that uses the exact time, date, and location of a person’s birth to uncover hidden traits, tendencies, and life patterns. 

    So, whether a psychic reader is looking at your solar return for the year ahead, investigating your relationship compatibility with your partner, or understanding a difficult life phase, astrology readings provide a cosmic map for solving life’s rhythms.

    Career Forecasts

    Accurate fortune tellers can also help people align with their professional purpose. 

    These readers will utilize the power of intuition, energetic sensing, and sometimes tools like numerology or astrology to identify where someone’s talents truly lie. 

    Career readings are mostly booked by professionals who are dealing with work-related challenges, entrepreneurial possibilities, timing for job changes, or when a new opportunity arises, and they want to know whether it will bring success for them or not.

    ⇒ Ready for answers? Connect with a free fortune teller today!

    Numerology Readings

    Numerology is the study of the energetic vibrations of numbers.

    They govern how these numbers relate to human life. 

    Every letter in a person’s name and every digit in their birth date holds a numeric value that has immense power, and that reveals information about their character, strengths, life cycles, and karmic lessons. 

    Numerology readings uncover these hidden messages to provide clarity on their purpose and the timing of events in their life.

    Occult Readings

    For those drawn to esoteric mysteries and the deeper mystical truths, some fortune tellers offer readings that are rooted in the occult sciences. 

    These sessions are different from others and explore symbolism, ritual magic, elemental energies, spiritual entities, or ancient esoteric systems. 

    They’re mostly suited for individuals who have the power and the mental abilities to confront the hidden forces influencing their lives, as these types of readings often involve exploring the subconscious or spirit world through unique and sacred methods.

    ⇒ Trusted and accurate fortune telling – start now!

    Palmistry

    Also known as palm reading, Palmistry is the ancient art that involves analyzing the shape, lines, and texture of a person’s hand. These patterns help a reader gain insight into the personality, experiences, and future of their client. 

    Every person’s palm is said to carry their narrative. 

    The lifeline, heartline, and headline are just a few, among others, that are read in combination to reveal one’s emotional tendencies, mental strengths, career prospects, and life trajectory.

    Graphology

    Graphology, or handwriting analysis, involves reading the way a person writes. In this way, the psychic reader can gain insight into their personality, emotional state, and thought patterns. 

    Everything from the pressure of the pen to the slant of a signature has a meaning and could carry psychological significance. Graphologists interpret these details to reveal hidden truths that may not be expressed verbally.

    Paranormal Readings

    Paranormal psychics explore realms that lie beyond the normal range of perception. 

    These readings focus on spiritual encounters, supernatural events, or unexplained phenomena. 

    For individuals who believe that they’ve experienced things, like hauntings, spirit contact, or energetic disturbances, paranormal readings are a great way for readers to offer them validation and clarity around those otherworldly experiences.

    ⇒ Get your personalized reading from a certified fortune teller!

    Past Life Exploration

    Some readers claim that the soul undergoes multiple incarnations, and those incarnations echo from past lives and influence the present day. 

    Past life readers use intuitive impressions, visualizations, or regressions to explore a person’s soul history. 

    These readings can help a reader understand irrational fears, recurring dreams, deep attractions, or unexplained patterns that seem to bother their clients and follow them throughout their current lives.

    Picture Readings

    In picture readings, the fortune teller uses a photograph to measure the energy around a person.

    That photograph could be of a person, place, or object, and it acts as an energetic anchor. 

    The reader will go deep into the vibration within the image to reveal hidden truths, emotional energy, or unresolved spiritual connections. 

    This type of reading is very useful when someone wants insight into a person who cannot be physically present for the session.

    Faith-Based and Spiritual Readings

    For those people who come from religious or spiritual backgrounds, some readers offer insights into scriptural wisdom, prayer, or divine guidance. 

    These readings center around faith, life purpose, and spiritual alignment. 

    They may also involve messages that the readers say are received from higher beings or spiritual guardians, thus depending on the tradition and belief system that is being practiced by the spiritual seeker.

    ⇒ Ask anything – the best fortune teller is online now!

    Frequently Asked Questions

    What exactly does a fortune teller do?

    Fortune tellers interpret symbols, energies, or spiritual signs and guide where your life is headed. 

    They use tools like tarot cards, astrology charts, Palmistry, or intuitive abilities to gain insights into past experiences, current events, or future possibilities for their clients.

    Are fortune-telling services accurate?

    Fortune telling is less about prediction and more about perception. A fortune teller, even the most genuine one, cannot accurately predict every detail of your future with scientific precision. 

    However, what they can offer is intuitive guidance, emotional clarity, and fresh perspectives. This type of guidance can help you make better decisions. 

    The accuracy of a fortune-telling service often depends on the reader’s skill, your openness, and the type of questions you ask.

    What types of questions can I ask a fortune teller?

    You can ask about anything. You can ask a fortune teller about relationships, careers, finances, health, life purpose, spiritual growth, or emotional challenges. Anything that you want answers to.

    The more specific your question is, the better, insightful, and more resourceful your reading will be.

    Do I need to believe in the supernatural for a reading to work?

    Not at all. 

    You don’t need to believe in the supernatural if you want to avail of fortune-telling services.

    While some people do approach fortune telling from a spiritual or mystical perspective, others are just using it as a tool for self-reflection or decision-making. 

    All you need to do is come with an open mind and a willingness to explore new insights.

    How do I choose the right type of reading?

    Fortune telling or psychic reading is the safest and common method of reading.

    If you’re unsure, start with a general fortune-telling or psychic reading. 

    However, if you have a specific question in mind, like love, career, or past lives, then there are other types of services available. You can choose a reader who specializes in that field. 

    Many services also offer short and free trial readings, so you can test the reader before paying in full.  

    Is my information kept confidential?

    Yes. 

    Professional fortune tellers will keep all your information private as they respect your space and treat all readings as confidential. 

    So, feel free to share personal details or ask sensitive questions because your session is conducted with discretion and trust.

    How long does a typical reading last?

    Psychic reading times can vary from person to person. 

    While a basic session might last 10–20 minutes, if you need a more in-depth reading, your session can also extend up to 30–60 minutes or longer than that.

    Many platforms offer flexible time slots depending on your needs and budget.

    What’s the difference between a psychic and a fortune teller?

    The term “fortune teller” is a broad term. It includes many types of intuitive readers. 

    Psychics, on the other hand, use extrasensory perception (ESP) and other insights to tap into the unseen energies surrounding and associated with a person. 

    While all psychics can be fortunetelling tellers, not all fortune tellers are psychics.

    Can I get a reading online or over the phone?

    Absolutely. You can read online by availing yourself of the service of online fortune tellers.

    Many fortune tellers offer remote services through online chat, phone calls, or email. 

    These formats offer flexibility to people from all over the world, and you can be guaranteed that online fortune-telling services are just as effective as in-person readings. Platforms like the psychic experts allow you to connect with readers from anywhere in the world.

    How often should I get a reading?

    There’s no right or wrong answer.

    You can have readings as many times as you like or as your situation and personal needs demand. 

    Some people get readings regularly, some do it a few times a year, while others only seek fortune-telling services during major life events.

    Final Words

    Fortune’s telling’s beauty doesn’t just lie in the spiritual answers that you receive but in the questions that you come to ask. Fortune telling offers self-reflection, examines the patterns in your life, and gently nudges you toward personal empowerment.

    There is a wide array of services available in today’s world, from tarot and astrology to dream interpretation and past life exploration. However, fortune telling and psychic reading aren’t just limited to live demonstrations and face-to-face conversations. It is also available online via verified platforms like the-psychic-experts.com.

    These services aren’t just for the mystically inclined. 

    Every type of person, whether they are entrepreneurs, artists, parents, students, or skeptics, can turn to fortune tellers when their life isn’t going as planned or when they need guidance and clarity. 

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    The MIL Network

  • MIL-OSI: Symbotic Reports Second Quarter Fiscal Year 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    WILMINGTON, Mass., May 07, 2025 (GLOBE NEWSWIRE) — Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics technology for the supply chain, announced financial results for its second quarter of fiscal year 2025, which ended on March 29, 2025. Symbotic posted revenue of $550 million, a net loss of $21 million and adjusted EBITDA1 of $35 million for the second quarter of fiscal year 2025.

    By comparison, in the second quarter of fiscal year 2024, Symbotic had revenue of $393 million, a net loss of $55 million and adjusted EBITDA1 of $9 million.

    Cash and cash equivalents increased by $52 million from the prior quarter to $955 million at the end of the second quarter of fiscal year 2025.

    “Our execution has improved, and our margins expanded,” said Symbotic Chairman and Chief Executive Officer Rick Cohen. “With stronger project execution and a compelling roadmap of product innovation, we remain well-positioned to deliver increasing value to our stakeholders.”

    “Second quarter revenue grew by 40% year-over-year, and we delivered a record number of system starts and completes,” said Symbotic Chief Financial Officer, Carol Hibbard. “Looking forward, we remain committed to delivering improved execution while investing to support our future growth and innovation.”

    OUTLOOK

    For the third quarter of fiscal 2025, Symbotic expects revenue of $520 million to $540 million, and adjusted EBITDA2 of $26 million to $30 million.

    WEBCAST INFORMATION

    Symbotic will host a webcast today at 5:00 pm ET to discuss its second quarter of fiscal year 2025 results. The webcast link is: https://edge.media-server.com/mmc/go/Symbotic-Q2-2025.

    ABOUT SYMBOTIC

    Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world’s largest retail, wholesale, and food & beverage companies. Applying next-generation technology, high-density storage and machine learning to solve today’s complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce, Symbotic transforms the flow of goods and the economics of the supply chain for its customers. For more information, visit www.symbotic.com

    USE OF NON-GAAP FINANCIAL INFORMATION

    Symbotic reports its financial results in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”). This press release contains financial measures that are not recognized under U.S. GAAP (“non-GAAP financial measures”), including adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, and free cash flow. These non-GAAP financial measures have limitations as an analytical tool as they do not have a standardized meaning prescribed by U.S. GAAP. The non-GAAP financial measures Symbotic uses may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies and, therefore, are unlikely to be comparable to similar measures presented by other companies. Rather, these non-GAAP financial measures are provided as a supplement to corresponding U.S. GAAP measures to provide additional information regarding the results of operations from management’s perspective. Accordingly, non-GAAP financial measures should not be considered a substitute for, in isolation from, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. All non-GAAP financial measures presented in this press release are reconciled to their closest reported U.S. GAAP financial measures. Symbotic recommends that investors review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release, and not rely on any single financial measure to evaluate its business.

    Symbotic defines adjusted EBITDA, a non-GAAP financial measure, as GAAP net loss excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; business combination transaction expenses; equity method investment; internal control remediation; business transformation costs; fair value adjustments on strategic investments; restructuring charges; joint venture formation fees; equity financing transaction costs; and other infrequent items that may arise from time to time. Symbotic defines adjusted gross profit, a non-GAAP financial measure, as GAAP gross profit excluding the following items: depreciation, stock-based compensation, and restructuring charges. Symbotic defines adjusted gross profit margin, a non-GAAP financial measure, as adjusted gross profit divided by revenue. Symbotic defines free cash flow, a non-GAAP financial measure, as net cash provided by or used in operating activities less purchases of property and equipment and capitalization of internal use software development costs. In addition to Symbotic’s financial results determined in accordance with U.S. GAAP, Symbotic believes that adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, and free cash flow non-GAAP financial measures, are useful in evaluating the performance of Symbotic’s business because they highlight trends in its core business.

    FORWARD-LOOKING STATEMENTS

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, Symbotic’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events, backlog or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or similar expressions.

    Forward-looking statements include, but are not limited to, statements about the ability of or expectations regarding Symbotic to:

    • meet the technical requirements of existing or future supply agreements with its customers, including with respect to existing backlog;
    • expand its target customer base and maintain its existing customer base;
    • realize the benefits expected from the acquisition of Walmart’s Advanced Systems and Robotics business, the GreenBox joint venture, the Commercial Agreement with GreenBox, Symbotic’s acquisitions of developed technology intangible assets, and the commercial agreement with Walmart de México y Centroamérica;
    • realize its outlook, including its system gross margin;
    • anticipate industry trends;
    • maintain and enhance its system;
    • maintain the listing of the Symbotic Class A Common Stock on Nasdaq;
    • execute its growth strategy;
    • develop, design and sell systems that are differentiated from those of competitors;
    • execute its research and development strategy;
    • acquire, maintain, protect and enforce intellectual property;
    • attract, train and retain effective officers, key employees or directors;
    • comply with laws and regulations applicable to its business;
    • stay abreast of modified or new laws and regulations applying to its business;
    • successfully defend litigation;
    • issue equity securities in connection with future transactions;
    • meet future liquidity requirements and, if applicable, comply with restrictive covenants related to long-term indebtedness;
    • timely and effectively remediate any material weaknesses in its internal control over financial reporting;
    • anticipate rapid technological changes; and
    • effectively respond to general economic and business conditions.

    Forward-looking statements also include, but are not limited to, statements with respect to:

    • the future performance of Symbotic’s business and operations;
    • expectations regarding revenues, expenses, adjusted EBITDA and anticipated cash needs;
    • expectations regarding cash flow, liquidity and sources of funding;
    • expectations regarding capital expenditures;
    • the anticipated benefits of Symbotic’s leadership structure;
    • the effects of pending and future legislation, regulation and trade practices, including tariffs;
    • business disruption;
    • disruption to the business due to Symbotic’s dependency on certain customers;
    • increasing competition in the warehouse automation industry;
    • any delays in the design, production or launch of Symbotic’s systems and products;
    • the failure to meet customers’ requirements under existing or future contracts or customer’s expectations as to price or pricing structure;           
    • any defects in new products or enhancements to existing products;
    • the fluctuation of operating results from period to period due to a number of factors, including the pace of customer adoption of Symbotic’s new products and services and any changes in its product mix that shift too far into lower gross margin products; and
    • any consequences associated with joint ventures and legislative and regulatory actions and reforms.

    Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in Symbotic’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 4, 2024. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and Symbotic believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned not to place undue reliance on these forward-looking statements because of their inherent uncertainty and to appreciate the limited purposes for which they are being used by management. While we believe that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements speak only as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. Symbotic is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that Symbotic has filed or will file from time to time with the SEC.

    In addition to factors previously disclosed in Symbotic’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024 filed with the SEC on December 4, 2024 and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: failure to realize the benefits expected from the acquisition of Walmart’s Advanced Systems and Robotics business and risks related to the acquisition.

    Any financial projections in this press release or discussed in the webcast are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Symbotic’s control. While all projections are necessarily speculative, Symbotic believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this communication should not be regarded as an indication that Symbotic, or its representatives, considered or considers the projections to be a reliable prediction of future events.

    Annualized, projected and estimated numbers are not forecasts and may not reflect actual results.

    This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Symbotic and is not intended to form the basis of an investment decision in Symbotic. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.

    INVESTOR RELATIONS CONTACT

    Charlie Anderson
    Vice President, Investor Relations & Corporate Development
    ir@symbotic.com

    MEDIA INQUIRIES
    mediainquiry@symbotic.com

    Symbotic Inc. and Subsidiaries
    Consolidated Statements of Operations
     
      Three Months Ended   Six Months Ended
     (in thousands, except share and per share information) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Revenue:                  
    Systems $ 513,372     $ 464,059     $ 370,693     $ 977,431     $ 718,398  
    Software maintenance and support   6,685       5,525       2,566       12,210       4,735  
    Operation services   29,594       17,109       20,073       46,703       30,142  
    Total revenue   549,651       486,693       393,332       1,036,344       753,275  
    Cost of revenue:                  
    Systems   414,560       381,819       342,124       796,378       626,071  
    Software maintenance and support   2,095       1,884       1,936       3,979       3,662  
    Operation services   25,168       22,951       19,052       48,120       29,266  
    Total cost of revenue   441,823       406,654       363,112       848,477       658,999  
    Gross profit   107,828       80,039       30,220       187,867       94,276  
    Operating expenses:                  
    Research and development expenses   61,540       43,592       46,462       105,133       88,606  
    Selling, general, and administrative expenses   78,347       61,076       48,652       139,421       95,663  
    Total operating expenses   139,887       104,668       95,114       244,554       184,269  
    Operating loss   (32,059 )     (24,629 )     (64,894 )     (56,687 )     (89,993 )
    Other income, net   11,714       7,823       9,812       19,536       16,011  
    Loss before income tax and equity method investment   (20,345 )     (16,806 )     (55,082 )     (37,151 )     (73,982 )
    Income tax expense (benefit)   1,397       (150 )     252       1,248       80  
    Loss from equity method investment   (2,490 )     (1,564 )           (4,055 )      
    Net loss   (21,438 )     (18,520 )     (54,830 )     (39,958 )     (73,902 )
    Net loss attributable to noncontrolling interests   (17,513 )     (15,044 )     (46,021 )     (32,557 )     (62,257 )
    Net loss attributable to common stockholders $ (3,925 )   $ (3,476 )   $ (8,809 )   $ (7,401 )   $ (11,645 )
                       
    Loss per share of Class A Common Stock:                  
    Basic and Diluted $ (0.04 )   $ (0.03 )   $ (0.09 )     (0.07 )   $ (0.13 )
    Weighted-average shares of Class A Common Stock outstanding:                  
    Basic and Diluted   107,726,978       106,098,566       93,043,769       106,900,622       88,155,791  
                                           

    Symbotic Inc. and Subsidiaries
    Reconciliation of Non-GAAP Financial Measures

    The following table reconciles GAAP net loss to Adjusted EBITDA:

      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Net loss $ (21,438 )   $ (18,520 )   $ (54,830 )   $ (39,958 )   $ (73,902 )
    Interest income   (7,229 )     (7,769 )     (9,795 )     (14,998 )     (15,944 )
    Income tax expense (benefit)   (1,397 )     150       (252 )     (1,248 )     (80 )
    Depreciation and amortization   11,169       6,860       2,468       18,029       5,033  
    Stock-based compensation   47,962       28,741       34,726       76,703       64,188  
    Business Combination transaction expenses   3,298       3,802             7,100        
    Equity method investment   2,490       1,564             4,055        
    Internal control remediation   2,175       3,076             5,251        
    Business transformation costs   2,400                   2,400        
    Fair value adjustments on strategic investments   (4,481 )                 (4,481 )      
    Restructuring charges   (231 )           34,206       (231 )     34,206  
    Joint venture formation fees                           1,089  
    Equity financing transaction costs               1,985             1,985  
    Adjusted EBITDA $ 34,718     $ 17,904     $ 8,508     $ 52,622     $ 16,575  
                                           

    The following table reconciles GAAP gross profit to Adjusted gross profit:

      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Gross profit $ 107,828     $ 80,039     $ 30,220     $ 187,867     $ 94,276  
    Depreciation   2,949       2,469       88       5,418       181  
    Stock-based compensation   11,264       3,709       5,156       14,973       8,587  
    Restructuring charges   (231 )           34,206       (231 )     34,206  
    Adjusted gross profit $ 121,810     $ 86,217     $ 69,670     $ 208,027     $ 137,250  
                                           
    Gross profit margin   19.6 %     16.4 %     7.7 %     18.1 %     12.5 %
    Adjusted gross profit margin   22.2 %     17.7 %     17.7 %     20.1 %     18.2 %
                                           

    The following table reconciles GAAP net cash provided by (used in) operating activities to free cash flow:

      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
                       
    Net cash provided by (used in) operating activities $ 269,575     $ 205,027     $ 21,072     $ 474,602     $         (9,078 )
    Purchases of property and equipment and capitalization of internal use software development costs   (20,560 )     (7,357 )     (2,871 )     (27,917 )             (5,864 )
    Free cash flow $ 249,015     $ 197,670     $ 18,201     $ 446,685     $         (14,942 )
                                           

    Symbotic Inc. and Subsidiaries
    Supplemental Common Share Information

    Total Common Shares issued and outstanding:

      March 29, 2025   September 28, 2024
    Class A Common Shares issued and outstanding 108,380,772   104,689,377
    Class V-1 Common Shares issued and outstanding 76,223,325   76,965,386
    Class V-3 Common Shares issued and outstanding 404,309,196   404,309,196
      588,913,293   585,963,959
           
    Symbotic Inc. and Subsidiaries
    Consolidated Balance Sheets
     
    (in thousands, except share data) March 29, 2025   September 28, 2024
    ASSETS
    Current assets:      
    Cash and cash equivalents $ 954,944     $ 727,310  
    Accounts receivable   137,562       201,548  
    Unbilled accounts receivable   160,248       218,233  
    Inventories   146,281       106,136  
    Deferred expenses   4,979       1,058  
    Prepaid expenses and other current assets   93,966       101,252  
    Total current assets   1,497,980       1,355,537  
    Property and equipment, net   123,706       97,109  
    Intangible assets, net   125,793       3,664  
    Goodwill   68,669        
    Equity method investment   85,323       81,289  
    Other assets   62,714       40,953  
    Total assets $ 1,964,185     $ 1,578,552  
    LIABILITIES AND EQUITY
    Current liabilities:      
    Accounts payable $ 220,027     $ 175,188  
    Accrued expenses and other current liabilities   166,269       165,644  
    Deferred revenue   1,086,297       676,314  
    Total current liabilities   1,472,593       1,017,146  
    Deferred revenue   8,152       129,233  
    Other liabilities   61,866       42,043  
    Total liabilities   1,542,611       1,188,422  
    Commitments and contingencies          
    Equity:      
    Class A Common Stock, 3,000,000,000 shares authorized, 108,380,772 and 104,689,377 shares issued and outstanding at March 29, 2025 and September 28, 2024, respectively   13       13  
    Class V-1 Common Stock, 1,000,000,000 shares authorized, 76,223,325 and 76,965,386 shares issued and outstanding at March 29, 2025 and September 28, 2024, respectively   7       7  
    Class V-3 Common Stock, 450,000,000 shares authorized, 404,309,196 shares issued and outstanding at March 29, 2025 and September 28, 2024   40       40  
    Additional paid-in capital   1,539,378       1,523,692  
    Accumulated deficit   (1,331,326 )     (1,323,925 )
    Accumulated other comprehensive loss   (2,698 )     (2,594 )
    Total stockholders’ equity   205,414       197,233  
    Noncontrolling interest   216,160       192,897  
    Total equity   421,574       390,130  
    Total liabilities and equity $ 1,964,185     $ 1,578,552  
                   
    Symbotic Inc. and Subsidiaries
    Consolidated Statements of Cash Flows
     
      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Cash flows from operating activities:                  
    Net loss $ (21,438 )   $ (18,520 )   $ (54,830 )   $ (39,958 )   $ (73,902 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                  
    Depreciation and amortization   12,279       7,645       3,155       19,924       6,352  
    Equity in net loss from equity method investment   4,055                   4,055        
    Foreign currency (gains) losses, net   20       (32 )     (30 )     (12 )     (8 )
    Gain on investments               (8,745 )           (8,745 )
    Loss on disposal of assets         201             201        
    Provision for excess and obsolete inventory   292       688       34,206       980       34,276  
    Stock-based compensation   43,355       26,773       28,065       70,128       57,527  
    Gain from strategic investment fair value adjustment   (4,481 )                 (4,481 )      
    Changes in operating assets and liabilities:                  
    Accounts receivable   (3,195 )     67,376       25,328       64,181       (58,461 )
    Inventories   (23,232 )     (10,425 )     (16,353 )     (33,657 )     (17,920 )
    Prepaid expenses and other current assets   89,491       10,317       (9,777 )     99,808       (42,430 )
    Deferred expenses   (1,757 )     (2,164 )     2,106       (3,921 )     (5,046 )
    Other assets   (6,400 )     (1,079 )     440       (7,479 )     (5,466 )
    Accounts payable   13,806       31,145       30,576       44,951       23,315  
    Accrued expenses and other current liabilities   (65,685 )     45,540       (17,600 )     (20,145 )     (1,884 )
    Deferred revenue   230,283       58,336       2,678       288,619       72,644  
    Other liabilities   2,182       (10,774 )     1,853       (8,592 )     10,670  
      Net cash provided by (used in) operating activities   269,575       205,027       21,072       474,602       (9,078 )
    Cash flows from investing activities:                  
    Purchases of property and equipment and capitalization of internal use software development costs   (20,560 )     (7,357 )     (2,871 )     (27,917 )     (5,864 )
    Proceeds from maturities of marketable securities               140,000             290,000  
    Purchases of marketable securities               (343 )           (48,660 )
    Acquisitions of strategic investments         (17,992 )           (17,992 )      
    Cash paid for business acquisitions   (200,000 )                 (200,000 )      
    Net cash provided by (used in) investing activities   (220,560 )     (25,349 )     136,786       (245,909 )     235,476  
    Cash flows from financing activities:                  
    Payment for taxes related to net share settlement of stock-based compensation awards         (3,012 )     (3,125 )     (3,012 )     (3,181 )
    Net proceeds from issuance of common stock under employee stock purchase plan   3,233             3,435       3,233       3,435  
    Distributions to or on behalf of Symbotic Holdings LLC partners   (382 )     (850 )           (1,232 )      
    Proceeds from issuance of Class A Common Stock               257,985             257,985  
    Proceeds from exercise of warrants                           158,702  
    Net cash provided by (used in) financing activities   2,851       (3,862 )     258,295       (1,011 )     416,941  
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash   50       (84 )     (13 )     (34 )     (15 )
    Net increase in cash, cash equivalents, and restricted cash   51,916       175,732       416,140       227,648       643,324  
    Cash, cash equivalents, and restricted cash – beginning of period   906,086       730,354       488,102       730,354       260,918  
    Cash, cash equivalents, and restricted cash – end of period $ 958,002     $ 906,086     $ 904,242     $ 958,002     $ 904,242  
                       
                       
      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Reconciliation of cash, cash equivalents, and restricted cash:                  
    Cash and cash equivalents $ 954,944     $ 903,034     $ 901,382     $ 954,944     $ 901,382  
    Restricted cash   3,058       3,052       2,860       3,058       2,860  
    Cash, cash equivalents, and restricted cash $ 958,002     $ 906,086     $ 904,242     $ 958,002     $ 904,242  

    1 Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is a non-GAAP financial measure as defined below under “Use of Non-GAAP Financial Information.” See the tables below for reconciliations to net loss, the most comparable GAAP measure.

    2 Symbotic is not providing guidance for net loss, which is the most comparable GAAP financial measure to adjusted EBITDA, because information reconciling forward-looking adjusted EBITDA to net loss is unavailable to it without unreasonable effort. Symbotic is not able to provide reconciliations of adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of Symbotic’s control and/or cannot be reasonably predicted, such as the provision for stock-based compensation.

    The MIL Network

  • MIL-OSI: SLR Investment Corp. Announces Quarter Ended March 31, 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Net Investment Income of $0.41 Per Share for Q1 2025;

    Declared Quarterly Distribution of $0.41 Per Share;

    Stable NAV/Strong Credit Quality

    NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) — SLR Investment Corp. (NASDAQ: SLRC) (the “Company”, “SLRC”, “we”, “us”, or “our”) today reported net investment income (“NII”) of $22.1 million, or $0.41 per share, for the first quarter of 2025. On May 7, 2025, the Board declared a quarterly distribution of $0.41 per share payable on June 27, 2025, to holders of record as of June 13, 2025.

    As of March 31, 2025, net asset value (“NAV”) was $18.16 per share, compared to $18.20 per share at December 31, 2024.

    “We remain pleased with the composition, quality, and performance of our portfolio on an absolute and relative basis in the first quarter,” said Michael Gross, Co-CEO of SLR Investment Corp. “While the ultimate impact from tariffs remains highly uncertain, we are actively engaged with our portfolio companies and believe that our portfolio, which is heavily collateralized by working capital assets and focused on domestic services businesses, is well positioned for the current environment.”   

    “We are seeing a significant and growing pipeline of asset-based lending investment opportunities driven by both the market dislocation and the retreat of traditional bank lenders which allows us to remain selective while investing in structures that are designed to be more resilient in today’s uncertain environment,” said Bruce Spohler, Co-CEO of SLR Investment Corp. “With conservative portfolio net leverage near the low-end of our target range and available capital of over $800 million, SLRC is well positioned to take advantage of our attractive investment pipeline amidst continued market volatility.”

    FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED MARCH 31, 2025:

    At March 31, 2025:

    Investment Portfolio fair value: $2.0 billion | Comprehensive Investment Portfolio(1) fair value: $3.1 billion
    Non-accruals: 0.4% at fair value, 0.6% at cost of Investment Portfolio
    Net assets: $990.5 million or $18.16 per share
    Leverage: 1.04x net debt-to-equity

    Operating Results for the Quarter Ended March 31, 2025:

    Net investment income: $22.1 million or $0.41 per share
    Net realized and unrealized losses: $2.2 million or $0.04 per share
    Net increase in net assets from operations: $19.9 million or $0.37 per share

    Comprehensive Investment Portfolio Activity(2)for the Quarter Ended March 31, 2025:

    Investments made: $361.3 million
    Investments prepaid and sold: $390.6 million

    (1) The Comprehensive Investment Portfolio for the quarter ended March 31, 2025 is comprised of SLRC’s investment portfolio and SLR Credit Solutions’ (“SLR-CS”) portfolio, SLR Equipment Finance’s (“SLR-EF”) portfolio, Kingsbridge Holdings, LLC’s (“KBH”) portfolio, SLR Business Credit’s (“SLR-BC”) portfolio, SLR Healthcare ABL’s (“SLR-HC ABL”) portfolio owned by the Company (collectively, the Company’s “Commercial Finance Portfolio Companies”), and the senior secured loans held by the SLR Senior Lending Program LLC (“SSLP”) attributable to the Company, and excludes the Company’s fair value of the equity interests in SSLP and the Commercial Finance Portfolio Companies and also excludes SLRC’s loans to KBH, SLR-EF, and SLR HC ABL.
    (2) Comprehensive Investment Portfolio activity for the quarter ended March 31, 2025, includes investment activity of the Commercial Finance Portfolio Companies and SSLP attributable to the Company.

    Comprehensive Investment Portfolio

    Portfolio Activity

    During the three months ended March 31, 2025, SLRC had Comprehensive Investment Portfolio originations of $361.3 million and repayments of $390.6 million across the Company’s four investment strategies:

    For the Quarter Ended March 31, 2025
    ($mm)
               
    Asset Class Sponsor
    Finance
    (1)
    Asset-based
    Lending(2)
    Equipment
    Finance(3)
    Life Science
    Finance
    Total
    Comprehensive Investment
    Portfolio Activity
    Originations $44.8   $163.8 $128.1   $24.6   $361.3  
    Repayments /
    Amortization
    $73.0   $98.9 $173.5   $45.2   $390.6  
    Net Portfolio
    Activity
    ($28.2)   $64.9 $(45.4)   ($20.6)   ($ 29.3)  

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

    Comprehensive Investment Portfolio Composition

    The Comprehensive Investment Portfolio is diversified across approximately 940 unique issuers, operating in over 105 industries, and resulting in an average exposure of $3.2 million or 0.1% per issuer. As of March 31, 2025, 98.2% of the Company’s Comprehensive Investment Portfolio was invested in senior secured loans of which 96.4% was held in first lien senior secured loans. Second lien ABL exposure was 1.6% and second lien cash flow exposure was 0.2% of the Comprehensive Investment Portfolio as of March 31, 2025.

    SLRC’s Comprehensive Investment Portfolio composition by asset class as of March 31, 2025 was as follows:

    Comprehensive Investment Portfolio Composition
    (at fair value)
    Amount Weighted Average Asset Yield(5)
    ($mm) %
    Senior Secured Investments      
    Cash Flow Loans (Sponsor Finance)(1) $ 588.0 19.3 % 10.4 %
    Asset-Based Loans(2) $ 1,121.3 36.7 % 13.8 %
    Equipment Financings(3) $ 1,102.6 36.1 % 11.5 %
    Life Science Loans $ 186.8 6.1 % 12.5 %
    Total Senior Secured Investments $ 2,998.7 98.2 % 12.2 %
    Equity and Equity-like Securities $ 54.2 1.8 %  
    Total Comprehensive Investment Portfolio $ 3,052.9 100.0 %  
    Floating Rate Investments(4) $ 1,872.7 61.8 %  
    First Lien Senior Secured Loans $ 2,942.9 96.4 %  
    Second Lien Senior Secured
    Asset-Based Loans
    $ 48.0 1.6 %  
    Second Lien Senior Secured
    Cash Flow Loans
    $ 7.8 0.2 %  

    (1) Includes cash flow loans held in the SSLP attributable to the Company and excludes the Company’s equity investment in SSLP.
    (2) Includes SLR-CS, SLR-BC, and SLR-HC ABL’s portfolios, as well as asset-based loans on the Company’s balance sheet, and excludes the Company’s equity investments in each of SLR-CS, SLR-BC, and SLR-HC ABL.
    (3) Includes SLR-EF’s portfolio and equipment financings on the Company’s balance sheet and Kingsbridge Holdings’ (KBH) portfolio. Excludes the Company’s equity and debt investments in each of SLR-EF and KBH.
    (4) Floating rate investments are calculated as a percent of the Company’s income-producing Comprehensive Investment Portfolio. The majority of fixed rate loans are associated with SLR-EF and leases held by KBH. Additionally, SLR-EF and KBH seek to match-fund their fixed rate assets with fixed rate liabilities.
    (5) The weighted average asset yield for income producing cash flow, asset-based and life science loans on balance sheet is based on a yield to maturity calculation. The weighted average asset yield calculation for Life Science loans includes the amortization of expected exit/success fees. The weighted average yield for on-balance sheet equipment financings is calculated based on the expected average life of the investments. The weighted average asset yield for SLR-CS asset-based loans is an Internal Rate of Return (IRR) calculated using actual cash flows received and the expected terminal value. The weighted average asset yield for SLR-BC and SLR-HC ABL represents total interest and fee income for the three-month period ended on March 31, 2025 against the average portfolio over the same fiscal period, annualized. The weighted average asset yield for SLR-EF represents total interest and fee income for the three-month period ended on March 31, 2025 compared to the portfolio as of March 31, 2025, annualized. The weighted average yield for the KBH equipment leasing portfolio represents the blended yield from the company’s 1st lien loan on par value and the annualized dividend yield on the cost basis of the company’s equity investment as of March 31, 2025.

    SLR Investment Corp. Portfolio

    Asset Quality

    As of March 31, 2025, 99.6% of SLRC’s portfolio was performing on a fair value basis and 99.4% on a cost basis, with only one investment on non-accrual.

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

    As of March 31, 2025, the composition of our investment portfolio, on a risk ratings basis, was as follows:

    Internal Investment Rating Investments at Fair Value ($mm) % of Total Portfolio
    1 $622.3 31.0%  
    2 $1,334.9 66.6%  
    3 $39.4 2.0%  
    4 $7.8 0.4%  

    Investment Income Contribution by Asset Class

    Investment Income Contribution by Asset Class(1)
    ($mm)
    For the Quarter
    Ended:
    Sponsor
    Finance
    Asset-based
    Lending
    Equipment
    Finance
    Life Science
    Finance
    Total
    3/31/2025 $17.0   $19.5   $9.7   $7.0   $53.2  
    % Contribution   32.0%     36.7%     18.2%     13.1%     100.0%  

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

    SLR Senior Lending Program LLC (SSLP)

    As of March 31, 2025, the Company and its 50% partner, Sunstone Senior Credit L.P., had contributed combined equity capital of $95.8 million of a total $100 million equity commitment to the SSLP. At quarter end, SSLP had total commitments of $177.0 million at par and total funded portfolio investments of $165.6 million at fair value, consisting of floating rate senior secured loans to 31 different borrowers and an average investment of $5.3 million per borrower. This compares to funded portfolio investments of $178.7 million at fair value across 32 different borrowers at December 31, 2024. During the quarter ended March 31, 2025, SSLP invested $6.6 million in 6 portfolio companies and had $19.9 million of investments repaid.

    In Q1 2025, the Company earned income of $1.9 million from its investment in the SSLP, representing an annualized yield of 15.7% on the cost basis of the Company’s investment, consistent with the annualized yield in Q4 2024.

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

    Investment Income

    For the fiscal quarters ended March 31, 2025, and 2024, gross investment income totaled $53.2 million and $58.1 million, respectively. The decrease in gross investment income for the year over year three-month periods was primarily due to a decrease in the size of the income producing investment portfolio as well as a decrease in index rates.

    Expenses

    SLRC’s net expenses totaled $31.1 million and $34.2 million, respectively, for the fiscal quarters ended March 31, 2025, and 2024. The decrease in expenses for the year-over-year three-month periods was primarily due to lower interest expense from a decrease in average borrowings as well as a decrease in the index rates on borrowings.

    SLRC’s investment adviser agreed to waive incentive fees resulting from income earned due to the accretion of the purchase price discount allocated to investments acquired in the Company’s merger with SLR Senior Investment Corp., which closed on April 1, 2022. For the fiscal quarters ended March 31, 2025 and 2024, $2 thousand and $46 thousand, respectively, of such performance-based incentive fees were waived.

    Net Investment Income

    SLRC’s net investment income totaled $22.1 million and $23.9 million, or $0.41 and $0.44, per average share, respectively, for the fiscal quarters ended March 31, 2025, and 2024.

    Net Realized and Unrealized Loss

    Net realized and unrealized gain (loss) for the fiscal quarters ended March 31, 2025 and 2024 totaled $(2.2) million and $4.0 million, respectively.

    Net Increase in Net Assets Resulting from Operations

    For the fiscal quarters ended March 31, 2025, and 2024, the Company had a net increase in net assets resulting from operations of $19.9 million and $27.9 million, respectively. For the same periods, earnings per average share were $0.37 and $0.51, respectively.

    Capital and Liquidity

    Credit Facilities

    As of March 31, 2025, the Company had $549.3 million drawn on $970 million of total commitments available on its revolving credit facilities and $140 million of term loans outstanding.

    Unsecured Debt

    On February 18, 2025, the Company closed a private offering of $50.0 million of unsecured notes due 2028 with a fixed rate of interest of 6.14% and a maturity date of February 18, 2028. The issuance of notes in the first quarter followed the $49.0 million issuance of unsecured notes in the fourth quarter of 2024 with a maturity date of December 16, 2027. As of March 31, 2025, the Company had $359 million of unsecured notes outstanding and the company does not have any near-term refinancing obligations with the next maturity occurring in December 2026.

    Leverage

    As of March 31, 2025, the Company’s net debt-to-equity ratio was 1.04x compared to 1.03x at December 31, 2024 and 1.16x at March 31, 2024. The Company’s target range is 0.9x to 1.25x net debt-to-equity.

    Available Capital

    As of March 31, 2025, including anticipated available borrowing capacity at the SSLP and our specialty finance portfolio companies, subject to borrowing base limits, SLRC, SSLP and our specialty finance portfolio companies had over $800 million of available capital in the aggregate.

    Unfunded Commitments

    As of March 31, 2025, excluding commitments of $72.4 million to SLR-CS, SLR-BC, SLR-HC ABL, SLR Equipment Finance, and SSLP, over which the Company has discretion to fund, the Company had unfunded commitments of approximately $196.2 million.

    Subsequent Events

    On May 7, 2025, the Board declared a quarterly distribution of $0.41 per share payable on June 27, 2025, to holders of record as of June 13, 2025.

    Conference Call and Webcast Information

    The Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Thursday, May 8, 2025. All interested parties may participate in the conference call by dialing (800) 225-9448 approximately 5-10 minutes prior to the call, international callers should dial (203) 518-9708. Participants should reference SLR Investment Corp. and Conference ID: SLRC1Q25. A telephone replay will be available until May 22, 2025 and can be accessed by dialing (800) 925-9527. International callers should dial (402) 220-5388.

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

     

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

    Assets

    March 31, 2025
    (unaudited)
    December31,
    2024
    Investments at fair value:        
    Companies less than 5% owned (cost: $1,015,960 and $1,019,357, respectively) $ 1,021,278   $ 1,027,457
    Companies 5% to 25% owned (cost: $105,224 and $103,655, respectively)   89,490     89,945
    Companies more than 25% owned (cost: $918,904 and $916,554, respectively)   893,631     888,232
    Cash   19,931     16,761
    Cash equivalents (cost: $447,074 and $397,510, respectively)   447,074     397,510
    Dividends receivable   17,423     15,375
    Interest receivable   11,645     11,993
    Receivable for investments sold   1,336     1,573
    Prepaid expenses and other assets   1,164     571
    Total assets $ 2,502,972   $ 2,449,417
    Liabilities    
    Debt ($1,048,260 and $1,041,093 face amounts, respectively, reported net of unamortized debt issuance costs of $8,848 and $9,399, respectively.

    $

    1,039,412

     

    $

    1,031,694

    Payable for investments and cash equivalents purchased   447,074     397,510
    Management fee payable   7,513     7,739
    Performance-based incentive fee payable   5,523     5,920
    Interest payable   6,040     7,836
    Administrative services payable   4,084     3,332
    Other liabilities and accrued expenses   2,841     2,460
    Total liabilities $ 1,512,487   $ 1,456,491
    Net Assets  
    Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares  
    authorized, respectively, and 54,554,634 and 54,554,634 shares issued and  
    outstanding, respectively $ 546     $ 546  
    Paid-in capital in excess of par   1,117,606       1,117,606  
    Accumulated distributable net loss   (127,667 )     (125,226 )
    Total net assets $ 990,485     $ 992,926  
    Net Asset Value Per Share $ 18.16     $ 18.20  
     
    SLR INVESTMENT CORP.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share amounts)
       
      Three months ended
      March 31, 2025   March 31, 2024  
    INVESTMENT INCOME:          
    Interest:    
    Companies less than 5% owned $ 29,174     $ 41,004  
    Companies 5% to 25% owned   1,224       831  
    Companies more than 25% owned   3,235       3,338  
    Dividends:    
    Companies 5% to 25% owned   770        
    Companies more than 25% owned   17,796       12,227  
    Other income:    
    Companies less than 5% owned   874       574  
    Companies more than 25% owned   105       125  
    Total investment income   53,178       58,099  
    EXPENSES:    
    Management fees   7,513       7,882  
    Performance-based incentive fees   5,526       5,952  
    Interest and other credit facility expenses   15,840       18,188  
    Administrative services expense   1,361       1,376  
    Other general and administrative expenses   835       895  
    Total expenses   31,075       34,293  
    Performance-based incentive fees waived   (2 )     (46 )
    Net expenses   31,073       34,247  
       Net investment income $ 22,105     $ 23,852  
    REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS:
    Net realized gain (loss) on investments and cash equivalents (companies less than 5% owned) $ (422)     $ 135  
    Net change in unrealized gain (loss) on investments and cash equivalents:    
    Companies less than 5% owned   (2,780 )     3,484  
    Companies 5% to 25% owned   (2,027 )     1  
    Companies more than 25% owned   3,050       399  
    Net change in unrealized gain (loss) on investments and cash equivalents   (1,757 )     3,884  
    Net realized and unrealized gain (loss) on investments and cash equivalents   (2,179 )     4,019  
    NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 19,926     $ 27,871  
    EARNINGS PER SHARE $ 0.37     $ 0.51  
     

    About SLR Investment Corp.

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

    Forward-Looking Statements

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

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

    The MIL Network

  • MIL-OSI: Magnite Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Contribution ex-TAC(1)Grows 12% Year-Over-Year

    Contribution ex-TAC(1)from CTV Grows 15% Year-Over-Year

    Adjusted EBITDA(1)Grows 47% Year-Over-Year

    NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) — Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, today reported its results of operations for the quarter ended March 31, 2025.

    Q1 2025 Highlights:

    • Revenue of $155.8 million, up 4% year-over-year
    • Contribution ex-TAC(1) of $145.8 million, up 12% year-over-year
    • Contribution ex-TAC(1) attributable to CTV of $63.2 million, up 15% year-over-year, exceeded guidance of $61.0 to $63.0 million
    • Contribution ex-TAC(1) attributable to DV+ of $82.6 million, up 9% year-over year, exceeded guidance of $79.0 to $81.0 million
    • Net loss of $9.6 million, or $0.07 per share, compared to a net loss of $17.8 million, or $0.13 per share for Q1 2024
    • Adjusted EBITDA(1) of $36.8 million, up 47% year-over-year, representing a 25% Adjusted EBITDA margin(2), compared to Adjusted EBITDA(1) of $25.0 million or a 19% margin in Q1 2024
    • Non-GAAP earnings per share(1) of $0.12, compared to non-GAAP earnings per share(1) of $0.05 for Q1 2024
    • Operating cash flow(3) of $18.2 million

    Expectations:

    • Total Contribution ex-TAC(1) for Q2 2025 to be between $154 million and $160 million
    • Contribution ex-TAC(1) attributable to CTV for Q2 2025 to be between $70 million and $72 million
    • Contribution ex-TAC(1) attributable to DV+ for Q2 2025 to be between $84 million and $88 million
    • Adjusted EBITDA operating expenses(4) for Q2 2025 to be between $110 million and $112 million
    • Performance in Q2 to date has been in line with prior expectations; however, due to tariff-driven economic uncertainty, not reaffirming full-year 2025 expectations

    “We beat the high end of our CTV and DV+ top line guidance in the first quarter, with significant outperformance in Adjusted EBITDA. Our performance has remained strong to start Q2. However, we have taken a more cautious approach to our outlook and guidance due to tariff-driven economic uncertainty. In CTV, we continue to see strong programmatic adoption and are very pleased with the growth of Netflix and their continued rollout of programmatic globally. On the DV+ side of the business, we applaud the monumental antitrust ruling against Google. This ruling and its ensuing remedies have the potential to radically transform the open internet and create a more level playing field, which could significantly increase our monetization opportunities and market share, possibly as soon as next year,” said Michael G. Barrett, CEO of Magnite.

    First quarter 2025 Results Summary        
    (in millions, except per share amounts and percentages)        
      Three Months Ended
      March 31, 2025   March 31, 2024   Change
    Favorable/ (Unfavorable)
    Revenue $155.8   $149.3   4%
    Gross profit $93.0   $83.4   11%
    Contribution ex-TAC(1) $145.8   $130.6   12%
    Net loss ($9.6)   ($17.8)   46%
    Adjusted EBITDA(1) $36.8   $25.0   47%
    Adjusted EBITDA margin(2)   25%   19%   6 ppt
    Basic and diluted net loss per share ($0.07)   ($0.13)   46%
    Non-GAAP earnings per share(1) $0.12   $0.05   140%
    Footnotes:
    (1 ) Contribution ex-TAC, Adjusted EBITDA, and non-GAAP earnings per share are non-GAAP financial measures. Please see the discussion in the section called “Non-GAAP Financial Measures” and the reconciliations included at the end of this press release.
    (2 ) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Contribution ex-TAC.
    (3 ) Operating cash flow is calculated as Adjusted EBITDA less capital expenditures.
    (4 ) Adjusted EBITDA operating expenses is calculated as Contribution ex-TAC less Adjusted EBITDA.

    First quarter 2025 Results Conference Call and Webcast:

    The Company will host a conference call on May 7, 2025 at 1:30 PM (PT) / 4:30 PM (ET) to discuss the results for its first quarter of 2025.

    Live conference call  
    Toll free number: (844) 875-6911 (for domestic callers)
    Direct dial number: (412) 902-6511 (for international callers)
    Passcode: Ask to join the Magnite conference call
    Simultaneous audio webcast: http://investor.magnite.com under “Events and Presentations”
       
    Conference call replay  
    Toll free number: (877) 344-7529 (for domestic callers)
    Direct dial number: (412) 317-0088 (for international callers)
    Passcode: 4251284
    Webcast link: http://investor.magnite.com under “Events and Presentations”

    About Magnite
    We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world’s leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

    Forward-Looking Statements:

    This press release and management’s prepared remarks during the conference call referred to above include, and management’s answers to questions during the conference call may include, forward-looking statements, including statements based upon or relating to our expectations, assumptions, estimates, and projections. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “anticipate,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms, and similar expressions. Forward-looking statements may include, but are not limited to, statements concerning the Company’s guidance or expectations with respect to future financial performance; acquisitions by the Company, or the anticipated benefits thereof; macroeconomic conditions or concerns related thereto; the growth of ad-supported programmatic connected television (“CTV”); our ability to use and collect data to provide our offerings; the scope and duration of client relationships; the fees we may charge in the future; key strategic objectives; anticipated benefits of new offerings; business mix; sales growth; benefits from supply path optimization; our ability to adapt to advancements in artificial intelligence; the development of identity solutions; client utilization of our offerings; the impact of requests for discounts, rebates, or other fee concessions; our competitive differentiation; our market share and leadership position in the industry; market conditions, trends, and opportunities; certain statements regarding future operational performance measures; and other statements that are not historical facts. These statements are not guarantees of future performance; they reflect our current views with respect to future events and are based on assumptions and estimates and subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements.

    We discuss many of these risks and additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this press release and in other filings we have made and will make from time to time with the Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings. These forward-looking statements represent our estimates and assumptions only as of the date of the report in which they are included. Unless required by federal securities laws, we assume no obligation to update any of these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated, to reflect circumstances or events that occur after the statements are made. Without limiting the foregoing, any guidance we may provide will generally be given only in connection with quarterly and annual earnings announcements, without interim updates, and we may appear at industry conferences or make other public statements without disclosing material nonpublic information in our possession. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. Investors should read this press release and the documents that we reference in this press release and have filed or will file with the SEC completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

    Non-GAAP Financial Measures and Operational Measures:

    In addition to our GAAP results, we review certain non-GAAP financial measures to help us evaluate our business on a consistent basis, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in our technology and development and sales and marketing, and assess our operational efficiencies. These non-GAAP financial measures include Contribution ex-TAC, Adjusted EBITDA, Non-GAAP Income (Loss), and Non-GAAP Earnings (Loss) per share, each of which is discussed below.

    These non-GAAP financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. You are encouraged to evaluate these adjustments, and review the reconciliation of these non-GAAP financial measures to their most comparable GAAP measures, and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies. See “Reconciliation of Revenue to Gross Profit to Contribution ex-TAC,” “Reconciliation of net loss to Adjusted EBITDA,” “Reconciliation of net loss to non-GAAP income,” and “Reconciliation of GAAP loss per share to non-GAAP earnings per share” included as part of this press release.

    We do not provide a reconciliation of our non-GAAP financial expectations for Contribution ex-TAC and Adjusted EBITDA, or a forecast of the most comparable GAAP measures, because the amount and timing of many future charges that impact these measures (such as amortization of future acquired intangible assets, acquisition-related charges, foreign exchange (gain) loss, net, stock-based compensation, impairment charges, provision or benefit for income taxes, and our future revenue mix), which could be material, are variable, uncertain, or out of our control and therefore cannot be reasonably predicted without unreasonable effort, if at all. In addition, we believe such reconciliations or forecasts could imply a degree of precision that might be confusing or misleading to investors.

    Contribution ex-TAC:

    Contribution ex-TAC is calculated as gross profit plus cost of revenue, excluding traffic acquisition cost (“TAC”). Traffic acquisition cost, a component of cost of revenue, represents what we must pay sellers for the sale of advertising inventory through our platform for revenue reported on a gross basis. Contribution ex-TAC is a non-GAAP financial measure that is most comparable to gross profit. We believe Contribution ex-TAC is a useful measure in facilitating a consistent comparison against our core business without considering the impact of traffic acquisition costs related to revenue reported on a gross basis.

    Adjusted EBITDA:

    We define Adjusted EBITDA as net income (loss) adjusted to exclude stock-based compensation expense, depreciation and amortization, amortization of acquired intangible assets, impairment charges, interest income or expense, and other cash and non-cash based income or expenses that we do not consider indicative of our core operating performance, including, but not limited to foreign exchange gains and losses, acquisition and related items, gains or losses on extinguishment of debt, other debt refinancing expenses, non-operational real estate and other expenses (income), net, and provision (benefit) for income taxes. We also track future expenses on an Adjusted EBITDA basis, and describe them as Adjusted EBITDA operating expenses, which includes total operating expenses. Total operating expenses include cost of revenue. Adjusted EBITDA operating expenses is calculated as Contribution ex-TAC less Adjusted EBITDA. We adjust Adjusted EBITDA operating expenses for the same expense items excluded in Adjusted EBITDA. We believe Adjusted EBITDA is useful to investors in evaluating our performance for the following reasons:

    • Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s performance without regard to items such as those we exclude in calculating this measure, which can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired.
    • Our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of performance and the effectiveness of our business strategies, and in communications with our board of directors concerning our performance. Adjusted EBITDA is also used as a metric for determining payment of cash incentive compensation.
    • Adjusted EBITDA provides a measure of consistency and comparability with our past performance that many investors find useful, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

    Although Adjusted EBITDA is frequently used by investors and securities analysts in their evaluations of companies, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results of operations as reported under GAAP. These limitations include:

    • Stock-based compensation is a non-cash charge and will remain an element of our long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period.
    • Depreciation and amortization are non-cash charges, and the assets being depreciated or amortized will often have to be replaced in the future, but Adjusted EBITDA does not reflect any cash requirements for these replacements.
    • Impairment charges are non-cash charges related to goodwill, intangible assets and/or long-lived assets.
    • Adjusted EBITDA does not reflect certain cash and non-cash charges related to acquisition and related items, such as amortization of acquired intangible assets, merger, acquisition, or restructuring related severance costs, and changes in the fair value of contingent consideration.
    • Adjusted EBITDA does not reflect cash and non-cash charges and changes in, or cash requirements for, acquisition and related items, such as certain transaction expenses.
    • Adjusted EBITDA does not reflect cash and non-cash charges related to certain financing transactions such as gains or losses on extinguishment of debt or other debt refinancing expenses.
    • Adjusted EBITDA does not reflect certain non-operational real estate and other (income) and expense, net, which consists of transactions or expenses that are typically by nature non-operating, one-time items, or unrelated to our core operations.
    • Adjusted EBITDA does not reflect changes in our working capital needs, capital expenditures, or contractual commitments.
    • Adjusted EBITDA does not reflect cash requirements for income taxes and the cash impact of other income or expense.
    • Other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

    Our Adjusted EBITDA is influenced by fluctuations in our revenue, cost of revenue, and the timing and amounts of the cost of our operations. Adjusted EBITDA should not be considered as an alternative to net income (loss), income (loss) from operations, or any other measure of financial performance calculated and presented in accordance with GAAP.

    Non-GAAP Income (Loss) and Non-GAAP Earnings (Loss) per Share:

    We define non-GAAP earnings (loss) per share as non-GAAP income (loss) divided by non-GAAP weighted-average shares outstanding. Non-GAAP income (loss) is equal to net income (loss) excluding stock-based compensation, cash and non-cash based merger, acquisition, and restructuring costs, which consist primarily of professional service fees associated with merger and acquisition activities, cash-based employee termination costs, and other restructuring activities, including facility closures, relocation costs, contract termination costs, and impairment costs of abandoned technology associated with restructuring activities, amortization of acquired intangible assets, gains or losses on extinguishment of debt, non-operational real estate and other expenses or income, foreign currency gains and losses, interest expense associated with Convertible Senior Notes, other debt refinance expenses, and the tax impact of these items. In periods in which we have non-GAAP income, non-GAAP weighted-average shares outstanding used to calculate non-GAAP earnings per share includes the impact of potentially dilutive shares. Potentially dilutive shares consist of stock options, restricted stock units, performance stock units, and potential shares issued under the Employee Stock Purchase Plan, each computed using the treasury stock method, and the impact of shares that would be issuable assuming conversion of all of the Convertible Senior Notes, calculated under the if-converted method. We believe non-GAAP earnings (loss) per share is useful to investors in evaluating our ongoing operational performance and our trends on a per share basis, and also facilitates comparison of our financial results on a per share basis with other companies, many of which present a similar non-GAAP measure. However, a potential limitation of our use of non-GAAP earnings (loss) per share is that other companies may define non-GAAP earnings (loss) per share differently, which may make comparison difficult. This measure may also exclude expenses that may have a material impact on our reported financial results. Non-GAAP earnings (loss) per share is a performance measure and should not be used as a measure of liquidity. Because of these limitations, we also consider the comparable GAAP measure of net income (loss).

    Investor Relations Contact
    Nick Kormeluk
    (949) 500-0003
    nkormeluk@magnite.com

    Media Contact
    Charlstie Veith
    (516) 300-3569
    press@magnite.com

    MAGNITE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (unaudited)
           
      March 31, 2025   December 31, 2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 429,708     $ 483,220  
    Accounts receivable, net   1,053,153       1,200,046  
    Prepaid expenses and other current assets   32,207       19,914  
    TOTAL CURRENT ASSETS   1,515,068       1,703,180  
    Property and equipment, net   79,134       68,730  
    Right-of-use lease assets   55,752       50,329  
    Internal use software development costs, net   26,689       26,625  
    Intangible assets, net   13,926       21,309  
    Goodwill   978,217       978,217  
    Other assets, non-current   5,864       6,378  
    TOTAL ASSETS $ 2,674,650     $ 2,854,768  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable and accrued expenses $ 1,306,517     $ 1,466,377  
    Lease liabilities, current   16,229       16,086  
    Debt, current, net of debt issuance costs   207,568       3,641  
    Other current liabilities   8,173       9,880  
    TOTAL CURRENT LIABILITIES   1,538,487       1,495,984  
    Debt, non-current, net of debt discount and debt issuance costs   349,001       550,104  
    Lease liabilities, non-current   43,759       38,983  
    Other liabilities, non-current   1,650       1,479  
    TOTAL LIABILITIES   1,932,897       2,086,550  
    STOCKHOLDERS’ EQUITY      
    Common stock   2       2  
    Additional paid-in capital   1,416,149       1,433,809  
    Accumulated other comprehensive loss   (3,592 )     (4,421 )
    Accumulated deficit   (670,806 )     (661,172 )
    TOTAL STOCKHOLDERS’ EQUITY   741,753       768,218  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,674,650     $ 2,854,768  
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share amounts)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Revenue $ 155,771     $ 149,319  
    Expenses (1)(2):      
    Cost of revenue   62,799       65,902  
    Sales and marketing   48,106       43,689  
    Technology and development   22,292       26,891  
    General and administrative   23,938       26,665  
    Total expenses   157,135       163,147  
    Loss from operations   (1,364 )     (13,828 )
    Other (income) expense:      
    Interest expense, net   5,177       7,958  
    Foreign exchange (gain) loss, net   2,217       (2,315 )
    Loss on extinguishment of debt   2,152       7,387  
    Other income   (423 )     (1,292 )
    Total other expense, net   9,123       11,738  
    Loss before income taxes   (10,487 )     (25,566 )
    Benefit for income taxes   (853 )     (7,809 )
    Net Loss $ (9,634 )   $ (17,757 )
    Net loss per share:      
    Basic and diluted $ (0.07 )   $ (0.13 )
    Weighted average shares used to compute net loss per share:      
    Basic and diluted   141,852       139,297  
    (1) Stock-based compensation expense included in our expenses was as follows:
      Three Months Ended
    March 31, 2025   March 31, 2024
    Cost of revenue $ 572   $ 500
    Sales and marketing   9,144     8,236
    Technology and development   4,635     5,416
    General and administrative   6,858     6,679
    Total stock-based compensation expense $ 21,209   $ 20,831
    (2) Depreciation and amortization expense included in our expenses was as follows:
      Three Months Ended
      March 31, 2025   March 31, 2024
    Cost of revenue $ 13,025   $ 10,716
    Sales and marketing   2,448     2,610
    Technology and development   69     147
    General and administrative   59     94
    Total depreciation and amortization expense $ 15,601   $ 13,567
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    OPERATING ACTIVITIES:      
    Net loss $ (9,634 )   $ (17,757 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
    Depreciation and amortization   15,601       13,567  
    Stock-based compensation   21,209       20,831  
    Loss on extinguishment of debt   2,152       7,387  
    Amortization of debt discount and issuance costs   967       1,152  
    Non-cash lease expense   (516 )     (546 )
    Deferred income taxes   154       (7,770 )
    Unrealized foreign currency (gain) loss, net   4,496       (3,910 )
    Other items, net   (101 )     124  
    Changes in operating assets and liabilities:      
    Accounts receivable   147,859       175,313  
    Prepaid expenses and other assets   (11,469 )     (812 )
    Accounts payable and accrued expenses   (166,353 )     (249,742 )
    Other liabilities   (1,804 )     1,752  
    Net cash provided by (used in) operating activities   2,561       (60,411 )
    INVESTING ACTIVITIES:      
    Purchases of property and equipment   (14,377 )     (5,873 )
    Capitalized internal use software development costs   (2,821 )     (3,379 )
    Net cash used in investing activities   (17,198 )     (9,252 )
    FINANCING ACTIVITIES:      
    Proceeds from the Term Loan B Facility refinancing and repricing activities, net of debt discount   92,622       361,350  
    Repayment of the Term Loan B Facility from refinancing and repricing activities   (92,622 )     (351,000 )
    Payment for debt issuance costs   (159 )     (4,510 )
    Proceeds from exercise of stock options   252        
    Purchase of treasury stock   (19,229 )      
    Taxes paid related to net share settlement   (20,314 )     (8,941 )
    Net cash used in financing activities   (39,450 )     (3,101 )
    EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH   575       (621 )
    CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   (53,512 )     (73,385 )
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period   483,220       326,219  
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period $ 429,708     $ 252,834  
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-(Continued)
    (In thousands)
    (unaudited)
       
      Three Months Ended
    SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: March 31, 2025   March 31, 2024
    Cash paid for income taxes $ 571   $ 729
    Cash paid for interest $ 6,679   $ 7,182
    Capitalized assets financed by accounts payable and accrued expenses and other liabilities $ 8,133   $ 7,272
    Capitalized stock-based compensation $ 422   $ 576
    Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 11,692   $ 8,255
    Operating lease right-of-use assets reduction and corresponding non-cash adjustment to operating lease liabilities $ 2,047   $
    Non-cash financing activity related to Amendment No. 2 to the 2024 Credit Agreement $ 270,555   $
    MAGNITE, INC.
    RECONCILIATION OF REVENUE TO GROSS PROFIT TO CONTRIBUTION EX-TAC
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Revenue $ 155,771   $ 149,319
    Less: Cost of revenue   62,799     65,902
    Gross Profit   92,972     83,417
    Add back: Cost of revenue, excluding TAC   52,876     47,136
    Contribution ex-TAC $ 145,848   $ 130,553
    MAGNITE, INC.
    RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Net loss $ (9,634 )   $ (17,757 )
    Add back (deduct):      
    Depreciation and amortization expense, excluding amortization of acquired intangible assets   8,218       5,978  
    Amortization of acquired intangibles   7,383       7,589  
    Stock-based compensation expense   21,209       20,831  
    Non-operational real estate and other (income) expense, net   (36 )     24  
    Interest expense, net   5,177       7,958  
    Foreign exchange (gain) loss, net   2,217       (2,315 )
    Loss on extinguishment of debt   2,152       7,387  
    Other debt refinancing expense   967       3,140  
    Benefit for income taxes   (853 )     (7,809 )
    Adjusted EBITDA $ 36,800     $ 25,026  
    MAGNITE, INC.
    RECONCILIATION OF NET LOSS TO NON-GAAP INCOME
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Net loss $ (9,634 )   $ (17,757 )
    Add back (deduct):      
    Merger, acquisition, and restructuring costs, including amortization of acquired intangibles and excluding stock-based compensation expense   7,383       7,589  
    Stock-based compensation expense   21,209       20,831  
    Non-operational real estate and other (income) expense, net   (36 )     24  
    Foreign exchange (gain) loss, net   2,217       (2,315 )
    Interest expense, Convertible Senior Notes   421       421  
    Loss on extinguishment of debt   2,152       7,387  
    Other debt refinancing expense   967       3,140  
    Tax effect of Non-GAAP adjustments (1)   (6,822 )     (11,336 )
    Non-GAAP income $ 17,857     $ 7,984  
            (1 ) Non-GAAP income includes the estimated tax impact from the reconciling items between net loss and non-GAAP income. 
    MAGNITE, INC.
    RECONCILIATION OF GAAP LOSS PER SHARE TO NON-GAAP EARNINGS PER SHARE
    (In thousands, except per share amounts)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    GAAP net loss per share (1):      
    Basic and diluted $ (0.07 )   $ (0.13 )
           
    Non-GAAP income (2) $ 17,857     $ 7,984  
    Non-GAAP earnings per share $ 0.12     $ 0.05  
           
    Reconciliation of weighted-average shares used to compute net loss per share to non-GAAP weighted average shares outstanding:      
    Weighted-average shares used to compute basic net loss per share   141,852       139,297  
    Dilutive effect of weighted-average common stock options, RSUs, and PSUs   8,191       4,371  
    Dilutive effect of weighted-average ESPP shares   65       65  
    Dilutive effect of weighted-average Convertible Senior Notes   3,210       3,210  
    Non-GAAP weighted-average shares outstanding   153,318       146,943  
           
    (1) Calculated as net loss divided by basic and diluted weighted-average shares used to compute net loss per share as included in the condensed consolidated statement of operations.
    (2) Refer to reconciliation of net loss to non-GAAP income.
    MAGNITE, INC.
    CONTRIBUTION EX-TAC BY CHANNEL
    (In thousands)
    (unaudited)
       
      Contribution ex-TAC
      Three Months Ended
      March 31, 2025   March 31, 2024
    Channel:              
    CTV $ 63,225   43 %   $ 54,894   42 %
    Mobile   58,008   40 %     53,299   41 %
    Desktop   24,615   17 %     22,360   17 %
    Total $ 145,848   100 %   $ 130,553   100 %

    The MIL Network

  • MIL-OSI: red violet Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    BOCA RATON, Fla., May 07, 2025 (GLOBE NEWSWIRE) — Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended March 31, 2025.

    “We are extremely pleased to report another record-setting quarter, marking a strong start to 2025,” stated Derek Dubner, red violet’s CEO. “Our team continues to execute, achieving new highs across key financial metrics and underscoring the leverage and durability of our business model. We have generated meaningful momentum and are energized by the opportunities ahead to build on this success throughout the year.”

    First Quarter Financial Results

    For the three months ended March 31, 2025 as compared to the three months ended March 31, 2024:

    • Total revenue increased 26% to $22.0 million.
    • Gross profit increased 37% to $15.8 million. Gross margin increased to 72% from 66%.
    • Adjusted gross profit increased 33% to $18.3 million. Adjusted gross margin increased to 83% from 79%.
    • Net income increased 93% to $3.4 million, which resulted in earnings of $0.25 and $0.24 per basic and diluted share, respectively. Net income margin increased to 16% from 10%.
    • Adjusted EBITDA increased 47% to $8.4 million. Adjusted EBITDA margin increased to 38% from 32%.
    • Adjusted net income increased 53% to $4.8 million, which resulted in adjusted earnings of $0.35 and $0.33 per basic and diluted share, respectively.
    • Net cash provided by operating activities increased 16% to $5.0 million.
    • Cash and cash equivalents were $34.6 million as of March 31, 2025.

    First Quarter and Recent Business Highlights

    • Added 315 customers to IDI during the first quarter, ending the quarter with 9,241 customers.
    • Added 21,918 users to FOREWARN® during the first quarter, ending the quarter with 325,336 users. Over 545 REALTOR® Associations throughout the U.S. are now contracted to use FOREWARN.
    • Paid out a special cash dividend of $0.30 per share on the Company’s common stock to shareholders of record as of January 31, 2025. The dividend, totaling $4.2 million, was paid on February 14, 2025.

    Conference Call

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

    About red violet®

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

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

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

    Use of Non-GAAP Financial Measures

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

    FORWARD-LOOKING STATEMENTS

    This press release contains “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as “expects,” “plans,” “projects,” “will,” “may,” “anticipate,” “believes,” “should,” “intends,” “estimates,” and other words of similar meaning. Such forward looking statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and which may cause results to differ materially from expectations, including whether our strong start to 2025 and the meaningful momentum and opportunities that have been generated will allow us to build on that success throughout the year. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed above together with the additional factors under the heading “Forward-Looking Statements” and “Risk Factors” in red violet’s Form 10-K for the year ended December 31, 2024, filed on February 27, 2025, as may be supplemented or amended by the Company’s other SEC filings. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

    RED VIOLET, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Amounts in thousands, except share data)
    (unaudited)

        March 31, 2025     December 31, 2024  
    ASSETS:                
    Current assets:                
    Cash and cash equivalents   $ 34,603     $ 36,504  
    Accounts receivable, net of allowance for doubtful accounts of $166 and $188 as of
    March 31, 2025 and December 31, 2024, respectively
        9,646       8,061  
    Prepaid expenses and other current assets     1,653       1,627  
    Total current assets     45,902       46,192  
    Property and equipment, net     543       545  
    Intangible assets, net     37,488       35,997  
    Goodwill     5,227       5,227  
    Right-of-use assets     1,753       1,901  
    Deferred tax assets     6,597       7,496  
    Other noncurrent assets     1,579       1,173  
    Total assets   $ 99,089     $ 98,531  
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                
    Current liabilities:                
    Accounts payable   $ 2,013     $ 2,127  
    Accrued expenses and other current liabilities     1,989       2,881  
    Current portion of operating lease liabilities     343       406  
    Deferred revenue     754       712  
    Dividend payable           4,181  
    Total current liabilities     5,099       10,307  
    Noncurrent operating lease liabilities     1,502       1,592  
    Other noncurrent liabilities     640        
    Total liabilities     7,241       11,899  
    Shareholders’ equity:                
    Preferred stock—$0.001 par value, 10,000,000 shares authorized, and 0 shares
    issued and outstanding, as of March 31, 2025 and December 31, 2024
               
    Common stock—$0.001 par value, 200,000,000 shares authorized, 13,950,797 and
    13,936,329 shares issued and outstanding, as of March 31, 2025 and
    December 31, 2024
        14       14  
    Additional paid-in capital     89,264       87,488  
    Retained earnings (accumulated deficit)     2,570       (870 )
    Total shareholders’ equity     91,848       86,632  
    Total liabilities and shareholders’ equity   $ 99,089     $ 98,531  
     

    RED VIOLET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Amounts in thousands, except share data)
    (unaudited)

        Three Months Ended March 31,  
        2025     2024  
    Revenue   $ 22,003     $ 17,511  
    Costs and expenses(1):                
    Cost of revenue (exclusive of depreciation and amortization)     3,661       3,756  
    Sales and marketing expenses     5,407       3,712  
    General and administrative expenses     6,174       5,790  
    Depreciation and amortization     2,550       2,270  
    Total costs and expenses     17,792       15,528  
    Income from operations     4,211       1,983  
    Interest income     308       365  
    Income before income taxes     4,519       2,348  
    Income tax expense     1,079       564  
    Net income   $ 3,440     $ 1,784  
    Earnings per share:                
    Basic   $ 0.25     $ 0.13  
    Diluted   $ 0.24     $ 0.13  
    Weighted average shares outstanding:                
    Basic     13,998,028       13,997,064  
    Diluted     14,491,713       14,164,506  
                     
                     
    (1) Share-based compensation expense in each category:                
    Sales and marketing expenses   $ 195     $ 138  
    General and administrative expenses     1,401       1,264  
    Total   $ 1,596     $ 1,402  
     

    RED VIOLET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Amounts in thousands)
    (unaudited)

        Three Months Ended March 31,  
        2025     2024  
    CASH FLOWS FROM OPERATING ACTIVITIES:                
    Net income   $ 3,440     $ 1,784  
    Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation and amortization     2,550       2,270  
    Share-based compensation expense     1,596       1,402  
    Write-off of long-lived assets     2        
    Provision for bad debts     62       70  
    Noncash lease expenses     148       134  
    Deferred income tax expense     899       471  
    Changes in assets and liabilities:                
    Accounts receivable     (1,647 )     (806 )
    Prepaid expenses and other current assets     (26 )     (378 )
    Other noncurrent assets     (406 )     156  
    Accounts payable     (114 )     722  
    Accrued expenses and other current liabilities     (1,392 )     (1,347 )
    Deferred revenue     42       (38 )
    Operating lease liabilities     (153 )     (135 )
    Net cash provided by operating activities     5,001       4,305  
    CASH FLOWS FROM INVESTING ACTIVITIES:                
    Purchase of property and equipment     (50 )     (65 )
    Capitalized costs included in intangible assets     (2,469 )     (2,327 )
    Net cash used in investing activities     (2,519 )     (2,392 )
    CASH FLOWS FROM FINANCING ACTIVITIES:                
    Taxes paid related to net share settlement of vesting of restricted stock units     (202 )     (383 )
    Repurchases of common stock           (1,415 )
    Dividend payable     (4,181 )      
    Net cash used in financing activities     (4,383 )     (1,798 )
    Net (decrease) increase in cash and cash equivalents   $ (1,901 )   $ 115  
    Cash and cash equivalents at beginning of period     36,504       32,032  
    Cash and cash equivalents at end of period   $ 34,603     $ 32,147  
    SUPPLEMENTAL DISCLOSURE INFORMATION:                
    Cash paid for interest   $     $  
    Cash paid for income taxes   $     $  
    Share-based compensation capitalized in intangible assets   $ 382     $ 446  
    Retirement of treasury stock   $ 202     $ 1,942  

    Use and Reconciliation of Non-GAAP Financial Measures

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

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

        Three Months Ended March 31,  
    (Dollars in thousands)   2025     2024  
    Net income   $ 3,440     $ 1,784  
    Interest income     (308 )     (365 )
    Income tax expense     1,079       564  
    Depreciation and amortization     2,550       2,270  
    Share-based compensation expense     1,596       1,402  
    Litigation costs     9       27  
    Write-off of long-lived assets and others     2       7  
    Adjusted EBITDA   $ 8,368     $ 5,689  
    Revenue   $ 22,003     $ 17,511  
                     
    Net income margin     16 %     10 %
    Adjusted EBITDA margin     38 %     32 %

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

        Three Months Ended March 31,  
    (Dollars in thousands, except share data)   2025     2024  
    Net income   $ 3,440     $ 1,784  
    Share-based compensation expense     1,596       1,402  
    Amortization of share-based compensation
    capitalized in intangible assets
        409       275  
    Tax effect of adjustments(1)     (613 )     (308 )
    Adjusted net income   $ 4,832     $ 3,153  
    Earnings per share:                
    Basic   $ 0.25     $ 0.13  
    Diluted   $ 0.24     $ 0.13  
    Adjusted earnings per share:                
    Basic   $ 0.35     $ 0.23  
    Diluted   $ 0.33     $ 0.22  
    Weighted average shares outstanding:                
    Basic     13,998,028       13,997,064  
    Diluted     14,491,713       14,164,506  

    (1) The tax effect of adjustments is calculated using the expected federal and state statutory tax rate. The expected federal and state income tax rate was approximately 26.00% and 25.75% for the three months ended March 31, 2025 and 2024, respectively.

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

        Three Months Ended March 31,  
    (Dollars in thousands)   2025     2024  
    Revenue   $ 22,003     $ 17,511  
    Cost of revenue (exclusive of depreciation and amortization)     (3,661 )     (3,756 )
    Depreciation and amortization related to cost of revenue     (2,500 )     (2,214 )
    Gross profit     15,842       11,541  
    Depreciation and amortization of certain intangible assets(1)     2,452       2,214  
    Adjusted gross profit   $ 18,294     $ 13,755  
                     
    Gross margin     72 %     66 %
    Adjusted gross margin     83 %     79 %

    (1) Depreciation and amortization of certain intangible assets primarily consists of the amortization of capitalized internal-use software development costs, which are included within intangible assets and amortized over their estimated useful lives.

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

        Three Months Ended March 31,  
    (Dollars in thousands)   2025     2024  
    Net cash provided by operating activities   $ 5,001     $ 4,305  
    Less:                
    Purchase of property and equipment     (50 )     (65 )
    Capitalized costs included in intangible assets     (2,469 )     (2,327 )
    Free cash flow   $ 2,482     $ 1,913  

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

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

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

    SUPPLEMENTAL METRICS

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

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

      (Unaudited)  
    (Dollars in thousands)   Q2’23     Q3’23     Q4’23     Q1’24     Q2’24     Q3’24     Q4’24     Q1’25  
    Customer metrics                                                                
    IDI – billable customers(1)     7,497       7,769       7,875       8,241       8,477       8,743       8,926       9,241  
    FOREWARN – users(2)     146,537       168,356       185,380       236,639       263,876       284,967       303,418       325,336  
    Revenue metrics                                                                
    Contractual revenue %(3)     79 %     79 %     82 %     78 %     74 %     77 %     77 %     74 %
    Gross revenue retention %(4)     94 %     94 %     92 %     93 %     94 %     94 %     96 %     96 %
    Other metrics                                                                
    Employees – sales and marketing   63     65     71     76     86     93     95     90  
    Employees – support   9     9     9     10     10     11     11     11  
    Employees – infrastructure   26     27     27     29     27     29     28     29  
    Employees – engineering   47     47     51     51     56     58     57     62  
    Employees – administration   25     25     25     25     25     26     25     24  

    (1) We define a billable customer of IDI as a single entity that generated revenue in the last three months of the period. Billable customers are typically corporate organizations. In most cases, corporate organizations will have multiple users and/or departments purchasing our solutions, however, we count the entire organization as a discrete customer.

    (2) We define a user of FOREWARN as a unique person that has a subscription to use the FOREWARN service as of the last day of the period. A unique person can only have one user account.

    (3) Contractual revenue % represents revenue generated from customers pursuant to pricing contracts containing a monthly fee and any additional overage divided by total revenue. Pricing contracts are generally annual contracts or longer, with auto renewal.

    (4) Gross revenue retention is defined as the revenue retained from existing customers, net of reinstated revenue, and excluding expansion revenue. Revenue is measured once a customer has generated revenue for six consecutive months. Revenue is considered lost when all revenue from a customer ceases for three consecutive months; revenue generated by a customer after the three-month loss period is defined as reinstated revenue. Gross revenue retention percentage is calculated on a trailing twelve-month basis. The numerator of which is revenue lost during the period due to attrition, net of reinstated revenue, and the denominator of which is total revenue based on an average of total revenue at the beginning of each month during the period, with the quotient subtracted from one. Our gross revenue retention calculation excludes revenue from idiVERIFIED, which is purely transactional and currently represents less than 3% of total revenue.

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

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

    Expanded Product Portfolio with the Acquisition of Tech-X Corporation

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

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

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

    First Quarter 2025 and Recent Business Highlights

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

    First Quarter 2025 Financial Results

    GAAP Financial Results

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

    Key Operating Indicators and Non-GAAP Financial Results:

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

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

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

    Second Quarter and Full Year 2025 Financial Outlook

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

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

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

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

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

    Q1 2025 Conference Call Details

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

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

    About Silvaco

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

    Safe Harbor Statement

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

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

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

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

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

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

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

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

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

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

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

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

    Investor Contact:
    Greg McNiff
    investors@silvaco.com 

    Media Contact:
    Farhad Hayat
    press@silvaco.com

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

    Headlines

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

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

    — Reaffirms Full Year 2025 Outlook —

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

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

    Fiscal 2025 Third Quarter Results and Key Financial Metrics

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

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

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

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

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

    Capital Allocation

    The Company reported the following related to its capital structure:

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

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

    Fiscal Year 2025 Outlook Reaffirmed

    The Company continues to expect:

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

    Conference Call

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

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

    About H&R Block

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

    About Non-GAAP Financial Information

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

    Forward-Looking Statements

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

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

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

    Non-GAAP Financial Information

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

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

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

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    ________________

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

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

    Highlights

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

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

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

    Financial Highlights for the First Quarter of 2025

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

    Guidance

    For the second quarter of 2025, Fortinet currently expects:

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

    For the fiscal year 2025, Fortinet currently expects:

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

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

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

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

    Conference Call Details

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

    Second Quarter 2025 Conference Participation Schedule:

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

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

    About Fortinet (www.fortinet.com)

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

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

    FTNT-F

    Forward-Looking Statements

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

    Non-GAAP Financial Measures

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

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

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

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

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

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

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

    The MIL Network

  • MIL-OSI Australia: Kondalilla National Park temporary closure

    Source: Tasmania Police

    Issued: 7 May 2025

    Parts of Kondalilla National Park, including the Kondalilla Falls Lower Circuit are temporarily closed due to damage from flash flooding.

    Recent heavy rainfall and severe weather in the Blackall Range has resulted in damage to bridges and tracks in the national park.

    Queensland Parks and Wildlife Service (QPWS) Rangers are working to assess and repair the damage and will re-open parts of the Kondalilla Falls when it is safe to do so.

    These measures have been enforced to ensure the safety of visitors.

    Sections of Kondalilla National Park remain open:

    • Picnic Creek Circuit
    • Kondalilla Falls Lookout
    • Kondalilla Falls Rock Pools
    • Access to Flat Rock and the Sunshine Coast Hinterland Great Walk

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

    QPWS will continue to monitor the situation and will provide updates when the protected areas are safe to reopen.

    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

  • MIL-OSI: Glen Burnie Bancorp Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    GLEN BURNIE, Md., May 07, 2025 (GLOBE NEWSWIRE) — Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), today reported results for the first quarter ended March 31, 2025. Net income for the first quarter was $153,000, or $0.05 per basic and diluted common share, as compared to net income of $3,000, or $0 per basic and diluted common share for the three-month period ended March 31, 2024.   On March 31, 2025, Bancorp had total assets of $358.0 million. Bancorp is the oldest independent commercial bank in Anne Arundel County.

    “The Company continues to pursue growing loans and deposits to improve revenues, margins and, ultimately, profitability. That said, we are aware of headwinds that could result in a slowing economy. We continue to emphasize disciplined lending practices, focusing on growing new client relationships, safety, and margin. Our allowance for credit losses stood at $2.7 million at March 31, 2025, representing 1.30% of total loans. Our non-performing assets remained at minimal levels consistent with previous quarters, underscoring the strength of our underwriting standards and ongoing credit monitoring,” said Mark C. Hanna, President and Chief Executive Officer. “Our team is committed to our customers and communities, and we continue to focus on growing funding sources, growing earning assets and building the infrastructure needed to grow customer relationships. These strategic priorities drive all areas of revenue and expense control, with the goal of expanding both return on assets and return on capital for the long term. While markets have been volatile recently, our Company remains financially strong, sound, and secure as reflected in our capital levels, asset quality, diversified deposit base and access to multiple liquidity sources.”

    Highlights for the First Three Months of 2025

    Net interest income decreased $8,000, or 0.31% to $2.56 million through March 31, 2025, as compared to $2.57 million during the prior-year first quarter. The decrease resulted from a $233,000 increase in interest expense, offset by a $224,000 increase in interest income. The increase in interest on deposits was driven by increased deposit balances in the money market products. The increase in interest and fees on loans was driven by the $30.0 million higher average balance and 0.27% higher yield on loan balances.

    The Company expects that its strong liquidity and capital positions will provide ample capacity for future growth.

    Return on average assets for the three-month period ended March 31, 2025, was 0.17%, as compared to 0% for the three-month period ended March 31, 2024. Return on average equity for the three-month period ended March 31, 2025, was 3.22%, as compared to 0.06% for the three-month period ended March 31, 2024.   Release of provision for credit allowance on loans and unfunded commitments primarily drove the higher return on average assets and average equity.

    On March 31, 2025, liquidity remained strong due to managed cash and cash equivalents, borrowing lines with the FHLB of Atlanta, the Federal Reserve and correspondent banks, and the size and composition of the bond portfolio.

    Balance Sheet Review

    Total assets were $358.0 million on March 31, 2025, a decrease of $1.0 million or 0.27%, from $359.0 million on December 31, 2024.   Cash and cash equivalents decreased $788,000 or 3.22%, from December 31, 2024, to March 31, 2025. Investment securities were $106.6 million on March 31, 2025, a decrease of $1.3 million or 1.23%, from $107.9 million on December 31, 2024.   Loans, net of deferred fees and costs, were $207.4 million on March 31, 2025, an increase of $2.2 million or 1.06%, from $205.2 million on December 31, 2024.   Loan balances increased 16.52% over the last four quarters, growing from $178.0 million on March 31, 2024 to $207.4 million on March 31, 2025. With the $20 million reduction in short term borrowings over the past twelve months, average earning-asset balances declined slightly to $356.2 million on March 31, 2025, as compared to $362.0 million during the prior-year first quarter.

    Total deposits were $317.3 million on March 31, 2025, an increase of $8.1 million or 2.61%, from $309.2 million on December 31, 2024. Noninterest-bearing deposits were $104.5 million on March 31, 2025, an increase of $3.7 million or 3.71%, from $100.7 million on December 31, 2024.   Interest-bearing deposits were $212.8 million on March 31, 2025, an increase of $4.4 million or 2.08%, from $208.4 million on December 31, 2024. Total borrowings were $20.0 million on March 31, 2025, a decrease of $10.0 million, or 33.33% from $30.0 million on December 31, 2024.

    As of March 31, 2025, total stockholders’ equity was $19.2 million (5.36% of total assets), equivalent to a book value of $6.61 per common share. Total stockholders’ equity on December 31, 2024, was $17.8 million (4.96% of total assets), equivalent to a book value of $6.14 per common share. The increase in the ratio of stockholders’ equity to total assets was due to an increase in equity from the decline in the market value loss of the Company’s available-for-sale securities portfolio. Included in stockholders’ equity on March 31, 2025, and December 31, 2024, were unrealized losses (net of taxes) on the Company’s available-for-sale investment securities totaling $17.8 million and $19.0 million, respectively. This decrease in unrealized losses primarily resulted from decreasing market interest rates during the first quarter of 2025, which increased the fair value of the investment securities. Changes in unrealized losses on the investment portfolio are attributed to changes in interest rates, not credit quality. The Company does not intend to sell, and it is more likely than not that it will not be required to sell any securities held at an unrealized loss.

    Asset quality, which has trended within a narrow range over the past several years, remains sound on March 31, 2025. Nonperforming assets, which consist of nonaccrual loans, restructured loans to borrowers with financial difficulty, accruing loans past due 90 days or more, and other real estate owned, represented 0.32% of total assets on March 31, 2025, as compared to 0.10% on December 31, 2024, demonstrating positive asset quality trends across the portfolio.   The allowance for credit losses on loans was $2.7 million, or 1.30% of total loans, as of March 31, 2025, as compared to $2.8 million, or 1.38% of total loans, as of December 31, 2024. The allowance for credit losses for unfunded commitments was $110,000 as of March 31, 2025, as compared to $584,000 as of December 31, 2024. The $474,000 decrease was primarily driven by the utilization of 1.33% lower loss rates during the first quarter of 2025 as compared to the fourth quarter of 2024.

    Review of Financial Results

    For the three-month periods ended March 31, 2025, and 2024

    Net income for the three-month period ended March 31, 2025, was $153,000, as compared to net income of $3,000 for the three-month period ended March 31, 2024.   The increase is primarily the result of a $315,000 decrease in the allowance for credit loss and $474,000 decrease in the allowance for unfunded commitments included in other noninterest expenses, partially offset by a $209,000 increase in salary and employee benefits costs, a $129,000 increase in legal, accounting and other professional fees, and a $203,000 decrease in income tax benefit.  

    The Company is taking steps to reduce non-interest expenses in future periods which include the January 2025 closure of our Linthicum branch office, the planned closing of our Severna Park branch office in May of 2025, and the recent announcement of an early retirement program.

    Net interest income for the three-month period ended March 31, 2025, totaled $2.56 million, as compared to $2.57 million for the three-month period ended March 31, 2024. The $8,000 decrease in net interest income was primarily due to the $439,000 increase in interest expense related to higher balances on money market deposits, $193,000 lower interest and dividends on securities due to principal paydowns, and $77,000 lower interest on deposits with banks due to lower cash balances, offset by $494,000 higher interest income on loans due to higher yields and balances, and $206,000 lower interest on short term borrowings due to lower borrowing balances.

    Net interest margin for the three-month period ended March 31, 2025, was 2.92%, as compared to 2.86% for the same period of 2024, an increase of 0.06%. The increase in the net interest margin is primarily due to increases in the yield on loans, offset by increases in yields on interest-bearing deposits and borrowed funds. Loan yields increased from 5.06% to 5.34% between the two periods while the cost of interest-bearing liabilities increased from 1.51% to 1.89% between the two periods.  

    The average balance of interest-earning assets decreased $5.8 million while the yield increased 0.35% from 3.78% to 4.13%, when comparing the three-month periods ended March 31, 2025, and 2024, respectively. The average balance of interest-bearing funds increased $7.6 million during these same periods. The average balance of noninterest-bearing funds decreased $12.9 million, and the cost of funds increased 0.31%, when comparing the three-month periods ended March 31, 2025, and 2024.

    The release of credit loss allowance on loans for the three-month period ended March 31, 2025, was $146,000, as compared to a provision of credit loss allowance of $169,000 for the same period of 2024. The decrease for the three-month period ended March 31, 2025, when compared to the three-month period ended March 31, 2024, primarily reflects the use of a lower loss rate. Noninterest income for the three-month period ended March 31, 2025, was $205,000, as compared to $229,000 for the three-month period ended March 31, 2024.

    For the quarter ended March 31, 2025, noninterest expense totaled $2.8 million, a decrease of $69,000 compared to $2.9 million for the quarter ended March 31, 2024. On a year-over-year comparative basis, noninterest expenses decreased due to a $474,000 decrease in the credit allowance for unfunded commitments, partially offset by a $209,000 increase in salary and employee benefits and $129,000 increase in legal, accounting, and other professional fees. Salary and employee benefits expenses increased primarily due to increased employee wages and the cost of incentive programs.

    For the three-month period ended March 31, 2025, income tax benefit was $29,000, as compared with $232,000 for the same period a year earlier.   The $232,000 income tax benefit included $87,000 associated with amended Maryland tax returns for tax years 2022 and 2021.

    Glen Burnie Bancorp Information

    Glen Burnie Bancorp is a bank holding company headquartered in Glen Burnie, Maryland. Founded in 1949, The Bank of Glen Burnie® is a locally owned community bank with seven branch offices serving Anne Arundel County. The Bank is engaged in the commercial and retail banking business including the acceptance of demand and time deposits, and the origination of loans to individuals, associations, partnerships, and corporations. The Bank’s real estate financing consists of residential first and second mortgage loans, home equity lines of credit and commercial mortgage loans. The Bank also originates automobile loans through arrangements with local automobile dealers. Additional information is available at www.thebankofglenburnie.com.

    Forward-Looking Statements

    The statements contained herein that are not historical financial information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, which could cause the Company’s actual results in the future to differ materially from its historical results and those presently anticipated or projected. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. For a more complete discussion of these and other risk factors, please see the Company’s reports filed with the Securities and Exchange Commission.

             
    GLEN BURNIE BANCORP AND SUBSIDIARY
    CONSOLIDATED BALANCE SHEETS
    (dollars in thousands)
               
      March 31,   March 31,   December 31,
        2025       2024       2024  
      (unaudited)   (unaudited)   (audited)
    ASSETS          
    Cash and due from banks $ 1,792     $ 9,091     $ 2,012  
    Interest-bearing deposits in other financial institutions   21,884       33,537       22,452  
       Total Cash and Cash Equivalents   23,676       42,628       24,464  
               
    Investment securities available for sale, at fair value   106,623       128,727       107,949  
    Restricted equity securities, at cost   1,201       246       1,671  
               
    Loans, net of deferred fees and costs   207,393       177,950       205,219  
    Less: Allowance for credit losses(1)   (2,689 )     (2,035 )     (2,839 )
       Loans, net   204,704       175,915       202,380  
               
    Premises and equipment, net   2,609       2,928       2,678  
    Bank owned life insurance   8,877       8,700       8,834  
    Deferred tax assets, net   8,088       8,255       8,548  
    Accrued interest receivable   1,243       1,281       1,345  
    Accrued taxes receivable   159       363       148  
    Prepaid expenses   474       460       471  
    Other assets   319       367       468  
       Total Assets $ 357,973     $ 369,870     $ 358,956  
               
    LIABILITIES          
    Noninterest-bearing deposits $ 104,487     $ 115,167     $ 100,747  
    Interest-bearing deposits   212,770       194,064       208,442  
    Total Deposits   317,257       309,231       309,189  
               
    Short-term borrowings   20,000       40,000       30,000  
    Defined pension liability   338       327       330  
    Accrued expenses and other liabilities   1,197       2,183       1,620  
       Total Liabilities   338,792       351,741       341,139  
               
    STOCKHOLDERS’ EQUITY          
    Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,900,681, 2,887,467, and 2,900,481 shares as of March 31, 2025, March 31, 2024, and December 31, 2024, respectively.   2,901       2,887       2,901  
    Additional paid-in capital   11,037       10,989       11,037  
    Retained earnings   23,035       23,575       22,882  
    Accumulated other comprehensive loss   (17,792 )     (19,322 )     (19,003 )
       Total Stockholders’ Equity   19,181       18,129       17,817  
       Total Liabilities and Stockholders’ Equity $ 357,973     $ 369,870     $ 358,956  
               
    GLEN BURNIE BANCORP AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF (LOSS) INCOME
    (dollars in thousands, except per share amounts)
    (unaudited)
             
         Three Months Ended
    March 31,
          2025       2024  
    Interest income        
    Interest and fees on loans   $ 2,709     $ 2,215  
    Interest and dividends on securities     745       938  
    Interest on deposits with banks and federal funds sold     175       252  
    Total Interest Income     3,629       3,405  
             
    Interest expense        
    Interest on deposits     841       402  
    Interest on short-term borrowings     225       431  
    Total Interest Expense     1,066       833  
             
    Net Interest Income     2,563       2,572  
    (Release) provision of credit loss allowance     (146 )     169  
    Net interest income after credit loss provision     2,709       2,403  
             
    Noninterest income        
    Service charges on deposit accounts     31       38  
    Other fees and commissions     131       148  
    Income on life insurance     43       43  
    Total Noninterest Income     205       229  
             
    Noninterest expenses        
    Salary and employee benefits     1,827       1,618  
    Occupancy and equipment expenses     309       331  
    Legal, accounting and other professional fees     383       254  
    Data processing and item processing services     256       250  
    FDIC insurance costs     41       38  
    Advertising and marketing related expenses     37       23  
    Loan collection costs     45       5  
    Telephone costs     38       40  
    Other expenses     (146 )     302  
    Total Noninterest Expenses     2,790       2,861  
             
    Loss before income taxes     124       (229 )
    Income tax beneift     (29 )     (232 )
             
       Net income   $ 153     $ 3  
             
    Basic and diluted net income per common share   $ 0.05     $  
             
    GLEN BURNIE BANCORP AND SUBSIDIARY            
    CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
    For the three months ended March 31, 2025 and 2024            
    (dollars in thousands)                  
                         
                    Accumulated    
            Additional       Other   Total
        Common   Paid-in   Retained   Comprehensive   Stockholders’
    (unaudited) Stock   Capital   Earnings   Loss   Equity
    Balance, December 31, 2023 $ 2,883   $ 10,964   $ 23,859     $ (18,381 )   $ 19,325  
                         
    Net income           3             3  
    Cash dividends, $0.10 per share           (287 )           (287 )
    Dividends reinvested under dividend reinvestment plan   4     25                 29  
    Other comprehensive loss                 (941 )     (941 )
    Balance, March 31, 2024 $ 2,887   $ 10,989   $ 23,575     $ (19,322 )   $ 18,129  
                         
                         
                    Accumulated    
            Additional       Other   Total
        Common   Paid-in   Retained   Comprehensive   Stockholders’
    (unaudited) Stock   Capital   Earnings   (Loss) Income   Equity
    Balance, December 31, 2024 $ 2,901   $ 11,037   $ 22,882     $ (19,003 )   $ 17,817  
                         
    Net income           153             153  
    Other comprehensive income                 1,211       1,211  
    Balance, March 31, 2025 $ 2,901   $ 11,037   $ 23,035     $ (17,792 )   $ 19,181  
                         
    GLEN BURNIE BANCORP AND SUBSIDIARY
    SELECTED FINANCIAL DATA
    (dollars in thousands, except per share amounts)
                     
        Three Months Ended   Year Ended
        March 31,   December 31,   March 31,   December 31,
          2025       2024       2024       2024  
        (unaudited)   (unaudited)   (unaudited)   (unaudited)
                     
    Financial Data                
    Assets   $ 357,973     $ 358,956     $ 369,870     $ 358,956  
    Investment securities     106,623       107,949       128,727       107,949  
    Loans, (net of deferred fees & costs)     207,393       205,219       177,950       205,219  
    Allowance for loan losses     2,689       2,839       2,035       2,839  
    Deposits     317,257       309,189       309,231       309,189  
    Borrowings     20,000       30,000       40,000       30,000  
    Stockholders’ equity     19,181       17,817       18,129       17,817  
    Net income (loss)     153       (39 )     3       (112 )
                     
    Average Balances                
    Assets   $ 353,308     $ 366,888     $ 358,877     $ 363,994  
    Investment securities     132,805       136,868       163,618       148,037  
    Loans, (net of deferred fees & costs)     205,868       204,703       175,914       192,646  
    Deposits     312,030       314,046       305,858       309,838  
    Borrowings     20,215       30,323       31,667       32,721  
    Stockholders’ equity     19,258       20,664       19,124       19,169  
                     
    Performance Ratios                
    Annualized return on average assets     0.17%       -0.04%       0.00%       -0.03%  
    Annualized return on average equity     3.22%       -0.75%       0.06%       -0.58%  
    Net interest margin     2.92%       2.98%       2.86%       2.98%  
    Dividend payout ratio     0%       0%       9426%       -773%  
    Book value per share   $ 6.61     $ 6.14     $ 6.28     $ 6.14  
    Basic and diluted net income (loss) per share     0.05       (0.01 )           (0.04 )
    Cash dividends declared per share     0.00       0.00       0.10       0.30  
    Basic and diluted weighted average shares outstanding     2,900,681       2,900,681       2,885,552       2,893,871  
                     
    Asset Quality Ratios                
    Allowance for loan losses to loans     1.30%       1.38%       1.14%       1.38%  
    Nonperforming loans to avg. loans     0.55%       0.18%       0.21%       0.19%  
    Allowance for loan losses to nonaccrual & 90+ past due loans     236.9%       789.1%       549.1%       789.1%  
    Net charge-offs (recoveries) annualize to avg. loans     0.01%       -0.04 %     0.66%       0.08%  
                     
    Capital Ratios                
    Common Equity Tier 1 Capital   N/A     15.15%       17.14%       15.15%  
    Tier 1 Risk-based Capital Ratio   N/A     15.15%       17.14%       15.15%  
    Leverage Ratio   N/A     9.97%       10.43%       9.97%  
    Total Risk-Based Capital Ratio   N/A     16.40%       18.30%       16.40%  
                     

    The MIL Network

  • MIL-OSI: First Pacific Bancorp Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    WHITTIER, Calif., May 07, 2025 (GLOBE NEWSWIRE) — First Pacific Bancorp (the “Company”) (OTC Pink: FPBC), the holding company for First Pacific Bank (the “Bank”), today reported consolidated results for the first quarter ending March 31, 2025, marking its eighth consecutive quarter of profitability. The Company remains well-capitalized, with a healthy liquidity position supported by a stable core deposit base and access to substantial sources of liquidity.

    Highlights for the first quarter of 2025 include:

    • Total assets ended the first quarter 2025 at $456 million, up $23 million from $433 million at year end 2024.
    • Total deposits ended the first quarter 2025 at $390 million, up $39 million since year end 2024.
    • Total loans ended the first quarter 2025 at $294 million, up $17 million from year end 2024.
    • Asset quality remains excellent with minimal levels of classified or non-performing assets.
    • The Bank ended the first quarter with a strong capital position, with a leverage capital ratio of 9.0% and a total risk-based capital ratio of 12.7%.
    • As of March 31, 2025, cash and cash equivalents totaled $47 million, including funds invested overnight, up $6 million since year end 2024.
    • Unused borrowing capacity from credit facilities on March 31, 2025, totaled $187 million.

    For the first quarter ending March 31, 2025, the Company realized a pre-tax, pre-provision profit of $550 thousand, compared to a pre-tax, pre-provision profit of $702 thousand in Q4 2024 and $222 thousand in Q1 2024. Net income for the first quarter of 2025 was $393 thousand, up from $162 thousand in Q1 2024.    

    Asset quality remains excellent with minimal non-performing assets, an allowance for credit losses of 1.08% of total loans, and zero loan losses.

    “We are pleased with the momentum we’ve carried into 2025. Our diversified business model, prudent risk management, and focus on operational discipline continue to position us for sustained performance in a dynamic environment,” said Joe Matranga, Chairman of the Board.

    “We delivered strong first quarter results, driven by consistent performance across our markets and continued growth in both loans and deposits,” said Nathan Rogge, President and Chief Executive Officer. “As we execute our client-focused strategy and invest in infrastructure and technology, we are well positioned for long-term success. Our recent move to a larger San Diego regional office reflects our confidence in future growth and our ongoing commitment to serving our clients.”

    ABOUT FIRST PACIFIC BANK

    First Pacific Bank is a wholly owned subsidiary of First Pacific Bancorp (OTC Pink: FPBC) and is a growing community bank catering to individuals, professionals, and small-to-medium sized businesses throughout Southern California. Since opening in 2006, the Bank has offered a personalized approach, access to decision makers, a broad range of solutions, and a commitment to delivering an exceptional customer experience. First Pacific Bank operates locations in Los Angeles County, Orange County, San Diego County, and the Inland Empire. For more information, visit firstpacbank.com or call 888.BNK.AT.FPB.

    FORWARD-LOOKING STATEMENTS

    This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and First Pacific Bancorp intends for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. Forward-looking statements relate to, among other things, our business plan, and strategies, and can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and similar expressions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Factors that might cause such differences include, but are not limited to: successfully realizing the benefits of our business strategy and plans,; changes in general economic and financial market conditions, either nationally or locally, in areas in which First Pacific Bank conducts its operations; effects of inflation and changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; impact of any natural disasters, including earthquakes; effect of governmental supervision and regulation, including any regulatory or other enforcement actions; legislation or regulatory changes which adversely affect First Pacific Bank’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events, or circumstances after the date of such statements except as required by law.  

    — Summary Financial Tables Follow —

    First Pacific Bancorp 
    Consolidated Balance Sheets
    (Unaudited)
      Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024
    ASSETS          
    Cash and due from banks $ 8,042,164   $ 4,708,926   $ 23,584,084   $ 4,671,483   $ 7,317,500  
    Fed funds sold & int-bearing balances   39,250,000     36,290,000     25,520,000     37,860,000     37,575,000  
    Total cash and cash equivalents   47,292,164     40,998,926     49,104,084     42,531,483     44,892,500  
               
    Debt securities (AFS)   1,859,740     1,866,022     3,041,852     3,077,666     5,138,340  
    Debt securities (HTM)   99,099,346     100,257,560     101,260,391     102,202,926     103,474,749  
    Total debt securities   100,959,086     102,123,582     104,302,243     105,280,592     108,613,089  
               
    Construction & land development   25,245,823     23,320,351     23,067,204     24,651,513     25,480,398  
    1-4 Family residential   63,536,698     58,588,090     58,082,570     68,588,393     68,521,663  
    Multifamily residential   30,452,183     28,561,276     28,966,811     26,800,829     26,947,419  
    Nonfarm, nonresidential real estate   105,299,777     100,066,570     99,715,860     94,643,169     97,893,840  
    Commercial & industrial   64,956,570     62,322,690     57,342,017     53,504,969     54,785,564  
    Consumer & Other   4,572,607     4,525,108     780,639     1,831,036     1,123,918  
    Total loans   294,063,658     277,384,085     267,955,101     270,019,909     274,752,802  
    Allowance for credit losses (loans)   (3,179,637 )   (3,179,637 )   (3,109,975 )   (3,109,975 )   (3,109,975 )
    Total loans, net   290,884,021     274,204,448     264,845,126     266,909,934     271,642,827  
               
    Premises, equipment, and ROU net   2,822,403     1,328,964     1,452,886     1,714,833     1,992,588  
    Goodwill, core deposit & other intangibles   1,259,139     1,273,134     1,287,129     1,298,084     1,313,367  
    Bank owned life insurance   5,317,491     5,287,738     5,257,550     5,227,763     5,198,654  
    Accrued interest and other assets   7,703,693     7,755,355     7,505,380     7,476,554     7,415,609  
               
    Total Assets $ 456,237,997   $ 432,972,147   $ 433,754,398   $ 430,439,243   $ 441,068,634  
               
    LIABILITIES AND SHAREHOLDERS’ EQUITY          
    Deposits:          
    Noninterest-bearing demand $ 143,205,484   $ 131,515,568   $ 129,473,091   $ 144,240,187   $ 133,945,262  
    Interest-bearing transaction accounts   39,203,360     28,454,639     24,660,000     24,797,108     28,166,207  
    Money market and savings   162,563,677     146,423,126     143,270,628     143,497,864     148,732,230  
    Time deposits   44,568,676     44,302,867     44,388,137     41,060,590     38,662,227  
    Total deposits   389,541,197     350,696,200     341,791,856     353,595,749     349,505,926  
               
    Borrowings   23,000,000     40,000,000     50,000,000     35,000,000     50,000,000  
    Accrued interest and other liabilities   3,952,095     3,122,902     3,430,132     3,781,444     3,936,909  
    Total liabilities   416,493,292     393,819,102     395,221,988     392,377,193     403,442,835  
               
    Shareholders’ Equity:          
    Capital stock and APIC   37,389,068     37,272,567     37,117,627     36,970,386     36,788,606  
    Retained earnings   3,043,502     2,650,877     2,151,305     1,902,788     1,705,174  
    Accum other comprehensive income   (687,865 )   (770,399 )   (736,522 )   (811,124 )   (867,981 )
    Total shareholders’ equity   39,744,705     39,153,045     38,532,410     38,062,050     37,625,799  
               
    Total Liabilities and Shareholders’ Equity $ 456,237,997   $ 432,972,147   $ 433,754,398   $ 430,439,243   $ 441,068,634  
               
    First Pacific Bancorp
    Consolidated Income Statements – Quarterly
    (Unaudited)
               
      Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024
    INTEREST INCOME          
    Loans, including fees $ 4,788,107   $ 4,814,128   $ 4,817,174   $ 4,655,844   $ 4,700,535  
    Debt securities   462,472     484,508     499,268     514,613     543,857  
    Fed funds & int-bearing balances   339,864     419,597     450,166     573,022     410,685  
    Total interest income   5,590,443     5,718,233     5,766,608     5,743,479     5,655,077  
               
    INTEREST EXPENSE          
    Deposits   1,812,760     1,777,351     1,790,578     1,687,121     1,746,032  
    Borrowings   219,832     332,375     444,250     524,599     507,390  
    Total interest expense   2,032,592     2,109,726     2,234,828     2,211,720     2,253,422  
               
    Net interest income   3,557,851     3,608,507     3,531,780     3,531,759     3,401,655  
               
    Provision for credit losses                    
               
    Net interest income after provision   3,557,851     3,608,507     3,531,780     3,531,759     3,401,655  
               
    NONINTEREST INCOME          
    Service charges, fees and other income   122,610     119,173     106,628     96,460     108,365  
    Sublease income   45,222         53,975     52,970     53,872  
    Gains (losses) on sale of assets           15,335          
    Gains on early payoff of debt       54,125         144,325      
    Total noninterest income   167,832     173,298     175,938     293,755     162,237  
               
    NONINTEREST EXPENSE          
    Salaries and benefits   2,119,302     1,984,774     2,154,290     2,182,674     2,178,486  
    Occupancy and equipment   259,480     258,180     374,069     363,695     368,816  
    Other expense   797,261     836,692     834,281     1,007,247     794,158  
    Total noninterest expense   3,176,043     3,079,646     3,362,640     3,553,616     3,341,460  
               
    Income before income tax expense   549,640     702,159     345,078     271,898     222,432  
               
    Income tax expense (benefit)   157,015     202,586     96,563     74,281     60,524  
               
    Net Income $ 392,625   $ 499,573   $ 248,515   $ 197,617   $ 161,908  
               
    Earnings per share basic (QTR) $ 0.09   $ 0.12   $ 0.06   $ 0.05   $ 0.04  
    Weighted average shares outstanding (QTR)   4,333,735     4,293,829     4,288,851     4,283,351     4,281,653  
               
    First Pacific Bancorp
    Quarterly Financial Highlights
    (Unaudited)
                 
        Quarterly
        2025 2024 2024 2024 2024
    ($$ in thousands except per share data)   1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
    EARNINGS            
    Net interest income $ 3,558   3,609   3,532   3,532   3,402  
    Provision for loan losses $ 0   0   0   0   0  
    Noninterest income $ 168   173   176   294   162  
    Noninterest expense $ 3,176   3,080   3,363   3,554   3,341  
    Income tax expense $ 157   203   97   74   61  
    Net income $ 393   500   249   198   162  
                 
    Earnings per share basic $ 0.09   0.12   0.06   0.05   0.04  
    Weighted average shares outstanding   4,333,735   4,293,829   4,288,851   4,283,351   4,281,653  
    Ending shares outstanding   4,335,088   4,294,500   4,291,927   4,283,351   4,283,351  
                 
    PERFORMANCE RATIOS            
    Return on average assets   0.37 % 0.47 % 0.23 % 0.18 % 0.15 %
    Return on average common equity   4.05 % 5.12 % 2.58 % 2.10 % 1.73 %
    Yield on loans   6.79 % 6.91 % 6.98 % 6.97 % 6.84 %
    Yield on earning assets   5.44 % 5.50 % 5.58 % 5.52 % 5.49 %
    Cost of deposits   2.00 % 1.98 % 2.05 % 1.96 % 2.05 %
    Cost of funding   2.12 % 2.18 % 2.32 % 2.28 % 2.35 %
    Net interest margin   3.46 % 3.47 % 3.42 % 3.40 % 3.31 %
    Efficiency ratio   85.2 % 81.4 % 90.7 % 92.9 % 93.8 %
                 
    CAPITAL            
    Tangible equity to tangible assets   8.46 % 8.77 % 8.61 % 8.57 % 8.26 %
    Book value (BV) per common share $ 9.17   9.12   8.98   8.89   8.78  
    Tangible BV per common share $ 8.88   8.82   8.68   8.58   8.48  
                 
    ASSET QUALITY            
    Net loan charge-offs (recoveries) $ 0   0   0   0   0  
    Allowance for credit losses (loans) $ 3,180   3,180   3,110   3,110   3,110  
    Allowance to total loans   1.08 % 1.15 % 1.16 % 1.15 % 1.13 %
    Nonperforming loans $ 849   672   991   77   160  
                 
    END OF PERIOD BALANCES            
    Total loans $ 294,064   277,384   267,955   270,020   274,753  
    Total assets $ 456,238   432,972   433,754   430,439   441,069  
    Deposits $ 389,541   350,696   341,792   353,596   349,506  
    Loans to deposits   75.5 % 79.1 % 78.4 % 76.4 % 78.6 %
    Shareholders’ equity $ 39,745   39,153   38,532   38,062   37,626  
    Full-time equivalent employees   46   49   44   44   46  
                 
    AVERAGE BALANCES (QTRLY)            
    Total loans $ 286,119   276,301   273,960   267,766   275,578  
    Earning assets $ 416,486   412,424   410,298   416,965   412,791  
    Total assets $ 430,891   425,750   424,199   430,830   426,592  
    Deposits $ 368,363   355,369   346,142   346,032   341,226  
    Shareholders’ equity $ 39,326   38,746   38,267   37,788   37,443  
                           

    The MIL Network

  • MIL-OSI: Intermex Reports First-Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    Company to Host Conference Call Today at 9 a.m. ET

    MIAMI, May 07, 2025 (GLOBE NEWSWIRE) — International Money Express, Inc. (NASDAQ: IMXI) (“Intermex” or the “Company”), one of the nation’s leading global omnichannel money transfer services to Latin America and the Caribbean, today reported financial and operating results for the first quarter of 2025.

    Financial performance highlights for the first quarter of 2025:

    • Revenues of $144.3 million
    • Net income of $7.8 million
    • Diluted EPS of $0.25
    • Adjusted Diluted EPS of $0.35
    • Adjusted EBITDA of $21.6 million

    Bob Lisy, Chairman, President, and CEO of Intermex, stated “Intermex’s first quarter results reflect the strength and discipline of the Intermex business model, despite an economic and political backdrop that was difficult to anticipate. Year-over-year volume growth reflects our highly resilient consumer base and our ability to serve them effectively through our omnichannel strategy.”

    First Quarter 2025 Financial Results (all comparisons are to the First Quarter 2024)
    Year over year volumes grew at 3.7%, however total revenues for the Company were down 4.1% to $144.3 million. This was driven by a shift in retail consumer sending behavior as consumers sent fewer transactions, but in larger amounts transferred per transaction in the quarter. The reduction in service fees from lower transactions was partially offset by an increase in revenue primarily related to growth in digital channels. The Company’s user base generated 12.8 million money transfer transactions, down 5.2% from last year. The total principal amount transferred for the period was $5.6 billion, an increase of 3.7%.

    The Company reported net income of $7.8 million, a decrease of 35.5%. Diluted earnings per share were $0.25, a decrease of 28.6%. The decreases in net income and diluted earnings per share were driven primarily by the items noted above for revenues, partly offset by lower services charges from agents and banks. It is worth noting that while revenue was down from lower transactions, the higher year over year volume offset much of the interest and banking expense reductions that would otherwise typically be captured with a lower number of transactions. Lower income tax provision also positively impacted net income. Diluted earnings per share was positively impacted by the reduction in share count from the Company’s stock repurchase activity.

    Adjusted net income totaled $10.9 million, a decrease of 25.9%. Adjusted diluted earnings per share totaled $0.35, a decrease of 18.6%. Adjusted net income and adjusted diluted earnings per share were impacted by the items noted above, adjusted for certain items detailed in the reconciliation tables below following the unaudited condensed consolidated financial statements. Adjusted diluted earnings per share was positively impacted by the reduction in share count from the Company’s stock repurchases.

    Adjusted EBITDA decreased 15.0% to $21.6 million, attributable to the same items noted above, partially offset by the higher net effect of the adjusting items detailed in the reconciliation tables below following the unaudited condensed consolidated financial statements.

    Adjusted and other non-GAAP measures discussed above and elsewhere in this press release are defined below under the heading, Non-GAAP Measures.

    Other Items
    The Company ended the first quarter of 2025 with $151.8 million in cash and cash equivalents. Net Free Cash Generated for the first quarter of 2025 was $10.3 million, up from the first quarter of 2024. Year-over-year Net Free Cash Generated primarily reflects the investments in assets placed into service as a result of the Company’s move to the new U.S. headquarters facility in the first quarter of 2024, partially offset by the decrease in net income.

    The Company incurred $1.2 million in transaction costs for the first quarter, primarily legal and professional fees incurred in relation to its previously announced evaluation of strategic alternatives. In addition, the Company incurred restructuring costs of approximately $0.3 million primarily related to the Company’s foreign operations.

    The Company repurchased 367,873 shares of its common stock for $5.0 million during the first quarter of 2025 through its underlying share repurchase program and a privately-negotiated transaction.

    Guidance
    Based on our first quarter 2025 financial results and the underlying market dynamics we have observed to date, the Company is revising its previously issued full-year guidance below. Current levels of uncertainty and volatility affecting market conditions and consumer behavior, have increased the difficulty of reliably forecasting short-term results.   Moreover, as previously announced, the Company is in the process of executing on a long-term strategy of investing in its digital business offerings to increase their contribution to the Company’s revenue and to increase its profitability.   Accordingly, the Company is discontinuing issuing quarterly guidance.

    Full-year 2025:
    •Revenue of $634.9 million to $654.2 million.
    •Diluted EPS of $1.53 to $1.65.
    •Adjusted Diluted EPS of $1.86 to $2.02.
    •Adjusted EBITDA of $103.6 million to $106.8 million.

    Non-GAAP Measures
    Adjusted Net Income, Adjusted Earnings per Share, Adjusted EBITDA, Adjusted EBITDA Margin and Net Free Cash Generated, each a Non-GAAP financial measure, are the primary metrics used by management to evaluate the financial performance of our business. We present these Non-GAAP financial measures because we believe they are frequently used by analysts, investors, and other interested parties to evaluate companies in our industry. Furthermore, we believe they are helpful in highlighting trends in our operating results, because certain of such measures exclude, among other things, the effects of certain transactions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the jurisdictions in which we operate and capital investments.

    Adjusted Net Income is defined as Net Income adjusted to add back certain charges and expenses, such as non-cash amortization of certain intangible assets resulting from business and asset acquisition transactions, non-cash compensation costs, and other items outlined in the reconciliation table below, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing future Company performance.

    Adjusted Earnings per Share – Basic and Diluted is calculated by dividing Adjusted Net Income by GAAP weighted-average common shares outstanding (basic and diluted).

    Adjusted EBITDA is defined as Net Income before depreciation and amortization, interest expense, income taxes, and adjusted to add back certain charges and expenses, such as non-cash compensation costs and other items outlined in the reconciliation table below, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing future Company performance.

    Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Revenues.

    Net Free Cash Generated is defined as Net Income before provision for credit losses and depreciation and amortization adjusted to add back certain non-cash charges and expenses, such as non-cash compensation costs, and reduced by cash used in investing activities and servicing of our debt obligations.

    Adjusted Net Income, Adjusted Earnings per Share, Adjusted EBITDA, Adjusted EBITDA Margin, and Net Free Cash Generated are non-GAAP financial measures and should not be considered as an alternative to operating income, net income, net income margin or earnings per share, as a measure of operating performance or cash flows, or as a measure of liquidity. Non-GAAP financial measures are not necessarily calculated the same way by different companies and should not be considered a substitute for or superior to U.S. GAAP.

    Reconciliations of Net Income, the Company’s closest GAAP measure, to Adjusted Net Income, Adjusted EBITDA, and Net Free Cash Generated, as well as a reconciliation of Earnings per Share (Basic and Diluted) to Adjusted Earnings per Share (Basic and Diluted) and Net Income Margin to Adjusted EBITDA Margin, are outlined in the tables below following the condensed consolidated financial statements. A quantitative reconciliation of projected Adjusted EBITDA and Adjusted Diluted EPS to the most comparable GAAP measure is not available without unreasonable efforts because of the inherent difficulty in forecasting and quantifying the amounts necessary under GAAP guidance for operating or other adjusted items including, without limitation, costs and expenses related to acquisitions and other transactions, share-based compensation, tax effects of certain adjustments and losses related to legal contingencies or disposal of assets. For the same reasons, we are unable to address the probable significance of the unavailable information.

    Investor and Analyst Conference Call / Presentation
    Intermex will host a conference call and webcast presentation at 9:00 a.m. Eastern Time today. Interested parties are invited to join the discussion and gain firsthand knowledge about Intermex’s financial performance and operational achievements through the following channels:

    • A live broadcast of the conference call may be accessed via the Investor Relations section of Intermex’s website at https://investors.intermexonline.com/.
    • To participate in the live conference call via telephone, please register HERE. Upon registering, a dial-in number and unique PIN will be provided to join the conference call.
    • Following the conference call, an archived webcast of the call will be available for one year on Intermex’s website at https://investors.intermexonline.com/.

    Safe Harbor Compliance Statement for Forward-Looking Statements
    This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, which reflect our current views concerning certain events that are not historical facts but could have an effect on our future performance, including but without limitation, statements regarding our plans, objectives, financial performance, business strategies, projected results of operations, restructuring initiatives and expectations for the Company. These statements may include and be identified by words or phrases such as, without limitation, “would,” “will,” “should,” “expects,” “believes,” “anticipates,” “continues,” “could,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “forecasts,” “intends,” “assumes,” “estimates,” “approximately,” “shall,” “our planning assumptions,” “future outlook,” “currently,” “target,” “guidance,” and similar expressions (including the negative and plural forms of such words and phrases). These forward-looking statements are based largely on information currently available to our management and our current expectations, assumptions, plans, estimates, judgments, projections about our business and our industry, and macroeconomic conditions, and are subject to various risks, uncertainties, estimates, contingencies, and other factors, many of which are outside our control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements and could materially adversely affect our business, financial condition, results of operations, cash flows, and liquidity. Such factors include, among others: changes in immigration laws and their enforcement, including any adverse effects on the level of immigrant employment, earning potential and other commercial activities; our success in expanding customer acceptance of our digital services and infrastructure, as well as developing, introducing and marketing new digital and other products and services; new technology or competitors that disrupt the current money transfer and payment ecosystem, including the introduction of new digital platforms; loss of, or reduction in business with, key sending agents; our ability to effectively compete in the markets in which we operate; economic factors such as inflation, the level of economic activity, recession risks and labor market conditions, as well as volatility in market interest rates; international political factors, including ongoing hostilities in Ukraine and the Middle East, political instability, tariffs, including the effects of tariffs on domestic markets and industrial activity and employment, border taxes or restrictions on remittances or transfers from the outbound countries in which we operate or plan to operate; volatility in foreign exchange rates that could affect the volume of consumer remittance activity and/or affect our foreign exchange related gains and losses; consumer confidence in our brands and in consumer money transfers generally; expansion into new geographic markets or product markets; our ability to successfully execute, manage, integrate and obtain the anticipated financial benefits of key acquisitions and mergers; cybersecurity-attacks or disruptions to our information technology, computer network systems, data centers and mobile devices applications; the ability of our risk management and compliance policies, procedures and systems to mitigate risk related to transaction monitoring; consumer fraud and other risks relating to the authenticity of customers’ orders or the improper or illegal use of our services by consumers, sending agents or digital partners; our ability to maintain favorable banking and paying agent relationships necessary to conduct our business; bank failures, sustained financial illiquidity, or illiquidity at the clearing, cash management or custodial financial institutions with which we do business; changes to banking industry regulation and practice; credit risks from our agents, digital partners and the financial institutions with which we do business; our ability to recruit and retain key personnel; our ability to maintain compliance with applicable laws and regulatory requirements, including those intended to prevent use of our money remittance services for criminal activity, those related to data and cybersecurity protection, and those related to new business initiatives; enforcement actions and private litigation under regulations applicable to money remittance services; changes in tax laws in the countries in which we operate; our ability to protect intellectual property rights; our ability to satisfy our debt obligations and remain in compliance with our credit facility requirements; public health conditions, responses thereto and the economic and market effects thereof; the use of third-party vendors and service providers; weakness in U.S. or international economic conditions; and other economic, business, and/or competitive factors, risks and uncertainties, including those described in the “Risk Factors” and other sections of periodic reports and other filings that we file with the Securities and Exchange Commission. Accordingly, we caution investors and all others not to place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date such statement is made and we undertake no obligation to update any of the forward-looking statements.

    About International Money Express, Inc.
    Founded in 1994, Intermex applies proprietary technology enabling consumers to send money from the United States, Canada, Spain, Italy, the United Kingdom and Germany to more than 60 countries. The Company provides the digital movement of money through a network of agent retailers in the United States, Canada, Spain, Italy, the United Kingdom and Germany; Company-operated stores; our mobile apps; and the Company’s websites. Transactions are fulfilled and paid through thousands of retail and bank locations around the world. Intermex is headquartered in Miami, Florida, with international offices in Puebla, Mexico, Guatemala City, Guatemala, London, England, and Madrid, Spain. For more information about Intermex, please visit www.intermexonline.com.

    Alex Sadowski
    Investor Relations Coordinator
    ir@intermexusa.com
    tel. 305-671-8000

    Condensed Consolidated Balance Sheets
             
        March 31,   December 31,
    (in thousands of dollars)     2025     2024
    ASSETS   (Unaudited)    
    Current assets:        
    Cash and cash equivalents   $ 151,764   $ 130,503
    Accounts receivable, net of allowance of $4,095 and $3,546, respectively     131,026     107,077
    Prepaid wires, net     32,577     49,205
    Prepaid expenses and other current assets     10,561     10,998
    Total current assets     325,928     297,783
             
    Property and equipment, net     52,603     50,354
    Goodwill     55,195     55,195
    Intangible assets, net     26,058     26,847
    Deferred tax asset, net     18    
    Other assets     30,787     32,198
    Total assets   $ 490,589   $ 462,377
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current liabilities:        
    Accounts payable   $ 23,410   $ 19,520
    Wire transfers and money orders payable, net     115,081     85,044
    Accrued and other liabilities     47,977     47,434
    Total current liabilities     186,468     151,998
             
    Long-term liabilities:        
    Debt, net     147,385     156,623
    Lease liabilities, net     17,493     18,582
    Deferred tax liability, net         250
    Total long-term liabilities     164,878     175,455
             
    Stockholders’ equity:        
    Total stockholders’ equity     139,243     134,924
    Total liabilities and stockholders’ equity   $ 490,589   $ 462,377
             
    Condensed Consolidated Statements of Income
         
        Three Months Ended March 31,
    (in thousands of dollars, except for per share data)     2025     2024
        (Unaudited)
    Revenues:        
    Wire transfer and money order fees, net   $ 120,167   $ 126,921
    Foreign exchange gain, net     20,181     20,346
    Other income     3,962     3,145
    Total revenues     144,310     150,412
             
    Operating expenses:        
    Service charges from agents and banks     93,788     97,934
    Salaries and benefits     18,288     18,106
    Other selling, general and administrative expenses     10,989     9,953
    Provision for credit losses     2,066     1,595
    Restructuring costs     306    
    Transaction costs     1,169     10
    Depreciation and amortization     3,629     3,228
    Total operating expenses     130,235     130,826
             
    Operating income     14,075     19,586
             
    Interest expense     2,700     2,702
             
    Income before income taxes     11,375     16,884
             
    Income tax provision     3,606     4,778
             
    Net income   $ 7,769   $ 12,106
             
    Earnings per common share:        
    Basic   $ 0.25   $ 0.36
    Diluted   $ 0.25   $ 0.35
             
    Weighted-average common shares outstanding:        
    Basic     30,587,949     33,675,441
    Diluted     30,831,633     34,188,814
    Reconciliation from Net Income to Adjusted Net Income
         
        Three Months Ended March 31,
    (in thousands of dollars, except for per share data)     2025       2024  
        (Unaudited)
             
    Net Income   $ 7,769     $ 12,106  
             
    Adjusted for:        
    Share-based compensation (a)     2,112       2,153  
    Restructuring costs (b)     306        
    Transaction costs (c)     1,169       10  
    Other charges and expenses (d)     327       437  
    Amortization of intangibles (e)     711       977  
    Income tax benefit related to adjustments (f)     (1,466 )     (1,012 )
    Adjusted Net Income   $ 10,928     $ 14,671  
             
    Adjusted earnings per common share:        
    Basic   $ 0.36     $ 0.44  
    Diluted   $ 0.35     $ 0.43  

    (a) Represents share-based compensation relating to equity awards granted primarily to employees and independent directors of the Company.

    (b) Represents primarily severance, write-off of assets and, legal and professional fees related to the execution of restructuring plans.

    (c) Represents primarily financial advisory, professional and legal fees related to business acquisition transactions and strategic alternatives.

    (d) Represents primarily loss on disposal of fixed assets.

    (e) Represents the amortization of certain intangible assets that resulted from business and asset acquisition transactions.

    (f) Represents the current and deferred tax impact of the taxable adjustments to Net Income using the Company’s blended federal and state tax rate for each period. Relevant tax-deductible adjustments include all adjustments to Net Income.

    Reconciliation from Basic Earnings per Share to Adjusted Basic Earnings per Share
         
        Three Months Ended March 31,
          2025       2024  
        (Unaudited)
    Basic Earnings per Share   $ 0.25     $ 0.36  
    Adjusted for:        
    Share-based compensation     0.07       0.06  
    Restructuring costs     0.01        
    Transaction costs     0.04       NM  
    Other charges and expenses     0.01       0.01  
    Amortization of intangibles     0.02       0.03  
    Income tax benefit related to adjustments     (0.05 )     (0.03 )
    Adjusted Basic Earnings per Share   $ 0.36     $ 0.44  

    NM—Amount is not meaningful

    The table above may contain slight summation differences due to rounding

    Reconciliation from Diluted Earnings per Share to Adjusted Diluted Earnings per Share
         
        Three Months Ended March 31,
          2025       2024  
        (Unaudited)
    Diluted Earnings per Share   $ 0.25     $ 0.35  
    Adjusted for:        
    Share-based compensation     0.07       0.06  
    Restructuring costs     0.01        
    Transaction costs     0.04       NM  
    Other charges and expenses     0.01       0.01  
    Amortization of intangibles     0.02       0.03  
    Income tax benefit related to adjustments     (0.05 )     (0.03 )
    Adjusted Diluted Earnings per Share   $ 0.35     $ 0.43  

    NM—Amount is not meaningful

    The table above may contain slight summation differences due to rounding

    Reconciliation from Net Income to Adjusted EBITDA
         
        Three Months Ended March 31,
    (in thousands of dollars)     2025     2024
        (Unaudited)
    Net Income   $ 7,769   $ 12,106
             
    Adjusted for:        
    Interest expense     2,700     2,702
    Income tax provision     3,606     4,778
    Depreciation and amortization     3,629     3,228
    EBITDA     17,704     22,814
    Share-based compensation (a)     2,112     2,153
    Restructuring costs (b)     306    
    Transaction costs (c)     1,169     10
    Other charges and expenses (d)     327     437
    Adjusted EBITDA   $ 21,618   $ 25,414

    (a) Represents share-based compensation relating to equity awards granted primarily to employees and independent directors of the Company.

    (b) Represents primarily severance, write-off of assets and legal and professional fees related to the execution of restructuring plans.

    (c) Represents primarily financial advisory, professional and legal fees related to business acquisition transactions and strategic alternatives.

    (d) Represents primarily loss on disposal of fixed assets.

    Reconciliation from Net Income Margin to Adjusted EBITDA Margin
         
        Three Months Ended March 31,
        2025     2024  
        (Unaudited)
    Net Income Margin   5.4 %   8.0 %
    Adjusted for:        
    Interest expense   1.9 %   1.8 %
    Income tax provision   2.5 %   3.2 %
    Depreciation and amortization   2.5 %   2.1 %
    EBITDA Margin   12.3 %   15.2 %
    Share-based compensation   1.5 %   1.4 %
    Restructuring costs   0.2 %   %
    Transaction costs   0.8 %   %
    Other charges and expenses   0.2 %   0.3 %
    Adjusted EBITDA Margin   15.0 %   16.9 %

    The table above may contain slight summation differences due to rounding

    Reconciliation of Net Income to Net Free Cash Generated
         
        Three Months Ended March 31,
    (in thousands of dollars)     2025       2024  
        (Unaudited)
             
    Net income for the period   $ 7,769     $ 12,106  
             
    Depreciation and amortization     3,629       3,228  
    Share-based compensation     2,112       2,153  
    Provision for credit losses     2,066       1,595  
    Cash used in investing activities     (5,313 )     (13,480 )
    Term loan pay downs           (1,641 )
             
    Net Free Cash Generated during the period   $ 10,263     $ 3,961  

    The MIL Network

  • MIL-OSI: One Stop Systems Reports Q1 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    First quarter of 2025 consolidated gross margin increased 320 basis points year-over-year to 32.6%, on consolidated revenue of $12.3 million

    OSS segment gross margin of 45.5%, on OSS segment revenue of $5.2 million

    OSS segment experienced strong first-quarter bookings of $10.4 million

    Management continues to expect double-digit consolidated revenue growth in 2025 and consolidated EBITDA break even for the year

    ESCONDIDO, Calif., May 07, 2025 (GLOBE NEWSWIRE) — One Stop Systems, Inc. (“OSS” or the “Company”) (Nasdaq: OSS), a leader in rugged Enterprise Class compute for artificial intelligence (AI), machine learning (ML), autonomy and sensor processing at the edge, reported results for the three-month period ended March 31, 2025. Comparisons for the three-month periods are to the same year-ago periods unless otherwise noted.

    “Our OSS segment achieved strong bookings during the first quarter of 2025, driven by growing demand from both new and existing commercial and defense customers. This positive trend highlights increased interest in our Enterprise Class compute solutions and validates our strategic focus on building multi-year, predictable revenue streams. Higher OSS segment orders are particularly encouraging amid ongoing uncertainty in business and government spending. Momentum remains strong, as the programs we are pursuing closely align with our customers’ evolving priorities on AI, ML, autonomy and sensor processing at the Edge,” stated OSS President and CEO, Mike Knowles.

    “As expected, our consolidated gross margin improved year-over-year and from the fourth quarter of 2024, supported by a 45.5% gross margin at our OSS segment, associated with a more profitable mix of products. While near-term market conditions affected the timing of certain OSS segment orders anticipated for the first and second quarters of 2025, we remain on track to achieve our 2025 annual guidance. In addition, we expect bookings to remain strong throughout the year within our OSS segment and support profitable revenue growth in the second half of 2025 and into 2026,” concluded Mr. Knowles.

    2025 First-Quarter Financial Summary

    Consolidated revenue was $12.3 million, compared to $12.7 million in the first quarter of 2024. OSS segment revenue decreased 5.9%, as compared to the same period in 2024, primarily due to lower volume of shipments to a commercial aerospace customer, partially offset by higher volume of shipments to a defense customer. Bressner segment revenue decreased $65,637, or 0.9%, as compared to the same period in 2024.

    The following table sets forth net revenue by segment for the three months ended March 31, 2025, and March 31, 2024 (Dollars may not calculate due to rounding):

      Three Months Ended

    Entity:

    March 31,
    2025
      % of Net
    Revenue
      March 31,
    2024
     
    % of Net
    Revenue

      %
    Change
    OSS $ 5,206,810       42.5 %   $ 5,533,872       43.7 %     (5.9 )%
    Bressner   7,052,277       57.5 %     7,117,914       56.3 %     (0.9 )%
    Total net revenue $ 12,259,088       100.0 %   $ 12,651,786       100.0 %     (3.1 )%
                                           

    Consolidated gross margin percentage was 32.6% for the three months ended March 31, 2025, compared to 29.4% in the prior year quarter. On a segment basis, the OSS segment had a gross margin of 45.5%, an increase of 11.3 percentage points as compared to the prior year of 34.2%. The increase in OSS segment gross margin was primarily due to higher volume of certain higher margin data storage units and componentry shipped in the quarter. The Company’s Bressner segment had a gross margin percentage of 23.1%, compared to 25.7% in the same period last year, due to product mix.

    Total operating expenses increased 19.2% to $5.9 million. This increase was predominantly attributable to higher marketing and selling costs due to an increase in personnel costs from the additions in headcount made during 2024 as well as an increase in research and development costs driven by higher engineering labor to support new product development.

    The Company reported a net loss of $2.0 million, or $(0.09) per share, as compared to a net loss of $1.3 million, or $(0.06) per share, in the prior year period.

    Adjusted EBITDA, a non-GAAP metric, was a loss of $1.1 million, compared to adjusted EBITDA loss of $500,452 in the prior year period.

    As of March 31, 2025, the Company reported cash and short-term investments of $9.1 million and total working capital of $23.1 million, compared to cash and short-term investments of $10.0 million and total working capital of $24.0 million at December 31, 2024.

    2025 Full Year Outlook

    OSS is executing a strategic plan targeting both commercial and defense markets, aiming to provide integrated solutions and establish OSS as a platform incumbent on large, multi-year programs. This approach is expected to drive long-term value by increasing predictable, recurring revenue and building a strong, multi-year backlog.

    As a result of OSS’ multi-year strategy, the Company continues to anticipate consolidated revenue of $59 to $61 million for the full year of 2025. This includes expected OSS segment revenue of approximately $30 million, representing over 20% year-over-year growth. In addition, the Company expects to be EBITDA break-even for the full year of 2025. Management expects revenue and profitability to improve at a higher rate in the second half of 2025 based on current trends and the Company’s expanding sales pipeline.

    Conference Call

    OSS will hold a conference call to discuss its results for the first quarter of 2025, followed by a question-and-answer period.

    Date: Wednesday, May 7, 2025
    Time: 10:00 a.m. ET (7:00 a.m. PT)
    Toll-free dial-in: 1-800-717-1738
    International dial-in: 1-646-307-1865
    Conference ID: 57745 (required for entry)
    Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1710966&tp_key=28a1f0fc7f

    A replay of the call will be available after 1:00 p.m. ET on May 7, 2025, through May 21, 2025.

    Toll-free replay: 1-844-512-2921
    International replay: 1-412-317-6671
    Passcode: 1157745

    About One Stop Systems

    One Stop Systems, Inc. (Nasdaq: OSS) is a leader in AI enabled solutions for the demanding ‘edge’. OSS designs and manufactures Enterprise Class compute and storage products that enable rugged AI, sensor fusion and autonomous capabilities without compromise. These hardware and software platforms bring the latest data center performance to harsh and challenging applications, whether they are on land, sea or in the air.

    OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software. These specialized compact products are used across multiple industries and applications, including autonomous trucking and farming, as well as aircraft, drones, ships and vehicles within the defense industry.

    OSS solutions address the entire AI workflow, from high-speed data acquisition to deep learning, training and large-scale inference, and have delivered many industry firsts for industrial OEM and government customers.

    As the fastest growing segment of the multi-billion-dollar edge computing market, AI enabled solutions require—and OSS delivers—the highest level of performance in the most challenging environments without compromise.

    OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com. You can also follow OSS on X, YouTube, and LinkedIn.

    Non-GAAP Financial Measures

    We believe that the use of adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, is helpful for an investor to assess the performance of the Company. The Company defines adjusted EBITDA as income (loss) before interest, taxes, depreciation, amortization, acquisition expense, impairment of long-lived assets, financing costs, government funded programs, fair value adjustments from purchase accounting, stock-based compensation expense, and expenses related to discontinued operations.

    Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States, or GAAP. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash operating expenses, we believe that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.

    Our adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. Our adjusted EBITDA is not a measurement of financial performance under GAAP, and should not be considered as an alternative to operating income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider adjusted EBITDA to be a substitute for, or superior to, the information provided by GAAP financial results.

      For the Three Months Ended March 31,
        2025       2024  
    Net loss $ (2,017,634 )   $ (1,339,622 )
    Depreciation   223,847       289,547  
    Amortization of right-of-use assets net of change in lease liability   (2,032 )     55,997  
    Stock-based compensation expense   612,561       408,740  
    Interest expense   14,186       35,342  
    Interest income   (72,511 )     (141,725 )
    Provision for income taxes   109,466       191,269  
    Adjusted EBITDA $ (1,132,116 )   $ (500,452 )
           

    (Dollars may not calculate due to rounding)

    Adjusted EPS excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. We believe that exclusion of certain selected items assists in providing a more complete understanding of our underlying results and trends and allows for comparability with our peer company index and industry. We use this measure along with the corresponding GAAP financial measures to manage our business and to evaluate our performance compared to prior periods and the marketplace. The Company defines non-GAAP income (loss) as income or (loss) before amortization, government funded programs, impairment of long lived assets, stock-based compensation, expenses related to discontinued operations, and acquisition costs. Adjusted EPS expresses adjusted income (loss) on a per share basis using weighted average diluted shares outstanding.

    Adjusted EPS is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the adjusted income from continuing operations and adjusted EPS financial adjustments described above, and investors should not infer from our presentation of these non-GAAP financial measures that these costs are unusual, infrequent or non-recurring.

    The following table reconciles non-GAAP net income and basic and diluted earnings per share:

      For the Three Months Ended March 31,
        2025       2024  
    Net loss $ (2,017,634 )   $ (1,339,622 )
    Stock-based compensation expense   612,561       408,740  
    Non-GAAP net loss $ (1,405,073 )   $ (930,882 )
    Non-GAAP net loss per share:      
    Basic $ (0.07 )   $ (0.04 )
    Diluted $ (0.07 )   $ (0.04 )
    Weighted average common shares outstanding:      
    Basic   21,384,599       20,709,234  
    Diluted   21,384,599       20,709,234  
     

    (Dollars may not calculate due to rounding)

    Forward-Looking Statements

    OSS cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. . Words such as, but not limited to, “anticipate,” “aim,” “believe,” “contemplate,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “suggest,” “strategy,” “target,” “will,” “would,” and similar expressions or phrases, or the negative of those expressions or phrases, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include but are not limited to those relating to increased sales and revenues, non-GAAP financial measures, our multi-year strategy, increase in margins, and operating expenses. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by OSS or its partners that any of our plans or expectations will be achieved. Factors that could interfere with our ability to achieve our plans or expectations , include but are not limited to, our ability to expand our product offerings and further penetrate our target markets, future demand for AI/ML integrations, global socio-economic challenges, stock market uncertainty or volatility, reductions in business and/or government spending, and changes in our business strategies, management and/or senior leadership. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading “Risk Factors” in our latest Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

    Media Contacts:
    Robert Kalebaugh
    One Stop Systems, Inc.
    Tel (858) 518-6154
    Email contact

    Investor Relations:
    Andrew Berger
    Managing Director
    SM Berger & Company, Inc.
    Tel (216) 464-6400
    Email contact

    ONE STOP SYSTEMS, INC. (OSS)
    CONSOLIDATED BALANCE SHEETS
     
      Unaudited   Audited
      March 31,   December 31,
        2025       2024  
    ASSETS      
    Current assets      
    Cash and cash equivalents $ 6,498,468     $ 6,794,093  
    Short-term investments   2,620,169       3,217,065  
    Accounts receivable, net   7,245,983       8,177,371  
    Inventories, net   15,099,479       13,176,156  
    Prepaid expenses and other current assets   1,178,620       836,364  
    Total current assets   32,642,719       32,201,048  
    Property and equipment, net   1,472,160       1,669,026  
    Operating lease right-of use assets   1,463,099       1,536,094  
    Deposits and other   38,093       38,093  
    Goodwill   1,489,722       1,489,722  
    Total Assets $ 37,105,793     $ 36,933,982  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities      
    Accounts payable $ 4,475,684     $ 2,068,017  
    Accrued expenses and other liabilities   3,730,499       4,806,675  
    Current portion of operating lease obligation   272,865       285,937  
    Current portion of notes payable   1,079,484       1,035,050  
    Total current liabilities   9,558,532       8,195,679  
    Deferred tax liability, net   45,572       52,574  
    Operating lease obligation, net of current portion   1,451,728       1,513,684  
    Total liabilities   11,055,832       9,761,937  
    Commitments and contingencies      
    Stockholders’ equity      
    Common stock, $0.0001 par value; 50,000,000 shares authorized; 21,582,196 and 21,148,810 shares issued and outstanding   2,158       2,115  
    Additional paid-in capital   49,824,911       49,082,737  
    Accumulated other comprehensive income   293,587       140,254  
    Accumulated deficit   (24,070,695 )     (22,053,061 )
    Total stockholders’ equity   26,049,961       27,172,045  
    Total Liabilities and Stockholders’ Equity $ 37,105,793     $ 36,933,982  
           
    ONE STOP SYSTEMS, INC. (OSS)
    UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars may not calculate due to rounding)
     
      For the Three Months Ended March 31,
        2025       2024  
    Revenue:      
    Product $ 11,848,713     $ 12,287,046  
    Customer funded development   410,375       364,740  
        12,259,088       12,651,786  
    Cost of revenue:      
    Product   7,912,314       8,818,756  
    Customer funded development   349,782       109,737  
        8,262,096       8,928,493  
    Gross profit   3,996,992       3,723,293  
    Operating expenses:      
    General and administrative   2,366,369       2,094,317  
    Marketing and selling   2,218,190       1,920,113  
    Research and development   1,357,293       970,877  
    Total operating expenses   5,941,852       4,985,307  
    Loss from operations   (1,944,860 )     (1,262,014 )
    Other (expense) income, net:      
    Interest income   72,511       141,725  
    Interest expense   (14,186 )     (35,342 )
    Other (expense) income, net   (21,633 )     7,278  
    Total other income, net   36,692       113,661  
    Loss before income taxes   (1,908,168 )     (1,148,353 )
    Provision for income taxes   109,466       191,269  
    Net loss $ (2,017,634 )   $ (1,339,622 )
           
    Net loss per share:      
    Basic $ (0.09 )   $ (0.06 )
    Diluted $ (0.09 )   $ (0.06 )
           
    Weighted average common shares outstanding:      
    Basic   21,384,599       20,709,234  
    Diluted   21,384,599       20,709,234  
           
    ONE STOP SYSTEMS, INC. (OSS)
    UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
     
      For the Three Months Ended March 31,
        2025       2024  
    Cash flows from operating activities:      
    Net loss $ (2,017,634 )   $ (1,339,622 )
    Adjustments to reconcile net loss to net cash (used in) provided by operating activities:      
    Deferred income taxes   1,737       (188,674 )
    Loss on disposal of property and equipment         354  
    Provision for bad debt   (100 )      
    Warranty reserves         (15,000 )
    Depreciation   223,847       289,547  
    Amortization of right-of-use assets   76,825       100,138  
    Inventory reserves   (146,200 )     94,063  
    Stock-based compensation expense   612,561       408,740  
    Changes in operating assets and liabilities:      
    Accounts receivable   1,068,100       842,057  
    Inventories   (1,418,185 )     (66,013 )
    Prepaid expenses and other current assets   (332,400 )     (224,116 )
    Accounts payable   2,336,310       1,486,003  
    Accrued expenses and other liabilities   (1,461,601 )     700,041  
    Operating lease liabilities   (78,857 )     (44,141 )
    Net cash (used in) provided by operating activities   (1,135,596 )     2,043,378  
           
    Cash flows from investing activities:      
    Redemption of short-term investment grade securities   597,288       1,811,364  
    Purchases of property and equipment, including capitalization of labor costs for test equipment and ERP   (12,793 )     (167,168 )
    Net cash provided by investing activities   584,495       1,644,196  
           
    Cash flows from financing activities:      
    Proceeds from exercise of stock options and warrants   373,310       127,350  
    Payment of payroll taxes on net issuance of employee stock options   (243,654 )     (246,376 )
    Repayments on notes payable         (680,948 )
    Net cash provided by (used in) financing activities   129,656       (799,974 )
           
    Net change in cash and cash equivalents   (421,445 )     2,887,600  
    Effect of exchange rates on cash   125,820       (32,446 )
    Cash and cash equivalents, beginning of period   6,794,093       4,048,948  
    Cash and cash equivalents, end of period $ 6,498,468     $ 6,904,102  

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