NewzIntel.com

Category: Finance

  • 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 USA: Ernst’s “Made in America” Bill Earns Support of Iowans

    US Senate News:

    Source: United States Senator Joni Ernst (R-IA)

    WASHINGTON – U.S. Senate Committee on Small Business and Entrepreneurship Chair Joni Ernst (R-Iowa) and House Small Business Committee Chairman Roger Williams’ (R-Texas) newly unveiled initiative to continue the domestic manufacturing explosion happening under President Trump has earned widespread praise.
    Business leaders in Iowa and across the country have applauded the bipartisan Made in America Manufacturing Finance Act that doubles the loan limit for Small Business Administration (SBA) manufacturing loans to bring back “Made in America.”
    What They Are Saying About the Made in America Manufacturing Finance Act:
    Iowa Association of Business and Industry
    “Iowa’s manufacturers are ready to grow, invest, and lead in the future of American manufacturing – but access to capital is critical,” said Nicole Crain, President. “The Made in America Manufacturing Finance Act is a commonsense solution that will empower small manufacturers to invest in the tools, technology, and facilities they need to compete globally. ABI applauds Senator Ernst and Chairman Williams for their leadership and commitment to strengthening U.S. manufacturing.”
    Iowa Bankers Association
    “The Iowa Bankers Association thanks Senator Joni Ernst for her leadership in proposing the Made in America Manufacturing Finance Act,” said Adam Gregg, President. “Bank leaders in Iowa have advocated for increasing the loan limits in these SBA programs with the goal of driving more investment in communities across the state of Iowa.  Manufacturing is an important piece of Iowa’s economy, and Iowa banks are proud partners in helping small businesses grow and expand.  This proposed legislation will make the work of our Iowa banks even more impactful.”
    Cedar Rapids Metro Economic Alliance
    “Manufacturing is a cornerstone of our region’s economic vitality,” said Barbra Solberg. “By increasing access to capital for small manufacturers, the Made in America Manufacturing Finance Act empowers businesses to expand, innovate and compete globally—while reinforcing our domestic supply chains. We commend Senator Ernst for her leadership as Chair of the Senate Small Business Committee and her commitment to addressing the financial needs of small manufacturers in today’s economy.”
    Greater Burlington Partnership
    “Increasing loan limits for small manufacturers strengthens the backbone of our local economy,” said Amy O’Brien, CEO. “This bipartisan effort will give more Iowa businesses the tools they need to expand operations, invest in new technology, and create quality jobs right here at home. As the cost of doing business continues to rise, we support the recommended increases in borrowing to accommodate our manufacturing businesses.”
    Job Creators Network
    “Senate Small Business Committee Chair Joni Ernst and House Small Business Committee Chairman Roger Williams are standing up for American small businesses by introducing the Made in America Manufacturing Finance Act,” said Alfredo Ortiz, CEO. “This legislation significantly expands access to credit for American manufacturers under the Small Business Administration’s 7(a) and 504 loan programs, providing American manufacturers with the funds they need to invest, expand, and create good manufacturing jobs. This legislation is especially important during this period of high interest rates and scarce access to capital. It will significantly help grow the productive economy and contribute to President Trump’s goal of reshoring critical manufacturing capacity. All legislators on both sides of the aisle should vigorously support it.”
    Small Business & Entrepreneurship Council
    “Increasing the SBA’s 7(a) and 504 loan program limits to $10 million for small manufacturers is a pragmatic reform that will provide entrepreneurs with a modernized level of resources needed to build, transform, or expand manufacturing facilities and capabilities in support of advanced U.S.-based manufacturing,” said Karen Kerrigan, President & CEO. “Small, entrepreneurial firms dominate U.S. manufacturing, and if our goal is to support their competitiveness, growth and innovative capacity, access to appropriate levels of capital is necessary. Leveling up these proven SBA loan programs will help to fuel manufacturing activity and innovation, which is so vital to U.S. economic growth, opportunity, and our global competitiveness. SBE Council strongly supports the Made in America Manufacturing Finance Act.”
    National Small Business Association
    “While the demand for broader access to capital is generalized across the entire small business ecosystem, capital-intensive industries, including manufacturing, face unique challenges,” said Todd McCracken, President & CEO. “Initial investments in these industries, as well as long term development costs and diversification are appreciably more capital intensive than other businesses, as even a small change could result in significant retooling and related costs. Commonsense changes to existing federal support programs for small manufacturers would go a long way to leveling the playing field and allowing American entrepreneurs to invest in the United States. That is why we are pleased to support the Made in America Manufacturing Finance Act of 2025, which would increase the maximum loans small manufacturing companies are eligible for under the existing 7(a) and 504 loan programs.”
    National Association of Development Companies
    “The time is now to increase the 504 manufacturing loan size and foster expansion opportunities for our nation’s small manufacturers,” said Rhonda Pointon, President & CEO. “The National Association of Development Companies (NADCO) and CDCs across the country strongly support the Made in America Manufacturing Finance Act (MAMFA). This legislation would raise the 504 manufacturing loan limit to $10 million – empowering small manufacturers to scale, strengthen domestic production, and create high-quality jobs.”
    National Association of Government Guaranteed Lenders
    “Often, manufacturers need large facilities and/or specialty equipment that can exceed the current SBA loan size limitations,” said Anthony Wilkinson, President & CEO. “Therefore, especially since it has been 15 years since the 7(a) Program maximum loan size was increased to $5 million, we believe that it would be appropriate to consider increasing that maximum to $10 million for loans to small business manufacturers as proposed in your legislation.”

    MIL OSI USA News –

  • MIL-OSI USA: ICE San Diego, multiagency case results in guilty conviction for would-be sex trafficker attempting to entice, coerce child and adult into prostitution

    Source: US Immigration and Customs Enforcement

    SAN DIEGO — Steven Terrell Lewis, 39, of El Cajon, was convicted by a federal jury May 6 for attempted coercion and enticement of a 14-year-old high school student and attempted sex trafficking by force or coercion of a 22-year-old woman. U.S. Immigration and Customs Enforcement, the San Diego Human Trafficking Task Force, the National City Police Department, the El Cajon Police Department, the San Diego Sheriff’s Office and the San Diego District Attorney’s Office are investigating this case.

    “This guilty verdict sends the powerful message that those who exploit children will be held accountable to the fullest extent of the law,” said ICE Homeland Security Investigations San Diego Special Agent in Charge Shawn Gibson. “This outcome is the result of relentless cooperation among local, state and federal law enforcement agencies. Our agency remains steadfast in our mission to bring perpetrators of these heinous crimes to justice and to stand beside every victim until justice is served.”

    According to evidence presented at the April 22, 2024, trial, the 14-year-old victim was walking to a friend’s house after school around 3 p.m. in El Cajon when Lewis used his vehicle to pin her on the sidewalk, exited his vehicle, and snatched her cellphone from her hand to get her phone number. Lewis then proceeded to send sexually explicit text messages from a phone number ending in 8155 to the victim before she was able to block the phone number. On April 23, 2024, Lewis continued texting the victim, except this time from a different phone number through TextFree, a mobile application and web service, from a phone number ending in 0014.

    When Lewis identified himself as “Pimpin,” he sent a sexually explicit photograph to the 14-year-old victim and invited her to “go get some money” with him. She immediately notified a coach at her high school, who alerted the El Cajon Police Department and the San Diego Sheriff’s Office.

    One week after Lewis’ attempt to sex traffic the minor victim failed, on April 28, 2024, he began recruiting the 22-year-old victim through MegaPersonals and sent a ride-share vehicle to take her to Roosevelt Avenue in National City, known as “The Blade,” to work street-based prostitution for his financial benefit. Fortunately, the next day, an undercover National City police officer posing as a commercial sex buyer picked up the adult victim offered her resources to leave prostitution. However, Lewis continued to message the adult victim (from both phone numbers ending in 8155 and 0014), threatening her to continue to engage in commercial sex for his benefit.

    Officers from the San Diego Human Trafficking Task Force arrested Lewis May 16, 2024, following physical surveillance of Lewis and searches of his vehicles, residence and cellphones.

    The victims did not know each other.

    Investigators believe that other victims exist because, during a search of Lewis’ phone, they discovered a photograph of a handwritten note that appears to have been written by a concerned parent. The note reads, “If I find out one more time that this car is following my daughter down Graves Ave we will have a problem. I suggest you f—- chill.”

    At the time, Lewis was driving two vehicles registered to him, including a white, four-door 1996 Oldsmobile bearing California license plate number 3TIF671:

    He also drove a brown or beige-colored, four-door 1986 Chevrolet bearing California license plate number 1REC517:

    If you or someone you know has had an encounter with Lewis or you know the author of the note, investigators ask that you contact the San Diego Human Trafficking Task Force by calling 888-373-7888 or texting 233733.

    “The jury’s guilty verdicts are a powerful reminder that human trafficking has no place in our society. These verdicts are not just justice for the victims — it is a warning to human traffickers everywhere that those who exploit and attempt to exploit others for profit will be prosecuted to the fullest extent of law, no matter how long it takes,” said U.S. Attorney Adam Gordon. “I commend the bravery of the survivors who came forward. Their truth helped convict a predator — and protect countless others.”

    “Every year, there are thousands of reported human trafficking cases across the United States — including right here in California,” said California Attorney General Rob Bonta. “Whether it’s for sex or labor, abusing power to force or coerce someone into doing something against their will is wrong. At the California Department of Justice, we’re committed to standing up for survivors, disrupting and dismantling human trafficking rings, and securing justice. I am thankful for our federal, state and local partners because it takes all of us to combat human trafficking. If you or someone you know has been affected by human trafficking, there are resources available to you. You are not alone.”

    “As a member of the Human Trafficking Task Force, the protection of our youth is our top priority,” said San Diego Police Chief Scott Wahl. “This case highlights the importance of collaboration and the need to share information in order to bring suspects like this into custody.”

    Lewis is scheduled to be sentenced Aug. 1.

    This case is being prosecuted by Assistant U.S. Attorney Lyndzie M. Carter and Derek Ko.

    MIL OSI USA News –

  • MIL-OSI: StoneX Group Inc. Reports Fiscal 2025 Second Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Quarterly Net Operating Revenues of $487.3 million, up 15%  

    Quarterly Net Income of $71.7 million, ROE of 15.7%

    Quarterly Diluted EPS of $1.41 per share, up 29%

    NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) — StoneX Group Inc. (the “Company”; NASDAQ: SNEX), a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise, today announced its financial results for the fiscal year 2025 second quarter ended March 31, 2025.

    Sean O’Connor, the Company’s Executive Vice-Chairman of the Board, stated, “Our fiscal second quarter marked a continuation of StoneX’s sustained growth and success, with net income and diluted EPS up, 35% and 29%, respectively, driven by solid performance across a wide range of our products and segments. We believe this broad-based strength in our financial performance speaks to the resilience and adaptability of our business model in an ever-changing marketplace.

    Over the last several years, though we have benefited from a rising interest rate environment, volatility, a key driver of our business, has been generally muted. Since the beginning of this fiscal year, increased market volatility, coupled with our continued strong client acquisition and engagement, has helped offset the decline in short term interest rates. If a period of sustained volatility is ahead of us, we believe this will be yet another positive driver for the continued growth in our business.

    We recently announced that we reached a definitive agreement to acquire R.J. O’Brien, the oldest futures brokerage in the U.S., which we believe positions us as a market leader in global derivatives. RJO brings an attractive financial profile to StoneX, having generated approximately $766 million in revenue and approximately $170 million in EBITDA during calendar 2024. This acquisition, which we anticipate will close in the second half of 2025, is expected to enhance our margins, EPS and return on equity with the addition of nearly $6 billion in client float and approximately 190 million in annual listed derivative contract volumes.”

    StoneX Group Inc. Summary Financials

    Condensed consolidated financial statements for the Company will be included in our Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission (the “SEC”). Upon filing, the Quarterly Report on Form 10-Q will also be made available on the Company’s website at www.stonex.com.

      Three Months Ended March 31,   Six Months Ended March 31,
    (Unaudited) (in millions, except share and per share amounts)   2025       2024     %
    Change    		     2025       2024     %
    Change
    Revenues:                      
    Sales of physical commodities $ 35,992.6     $ 21,321.9     69%   $ 63,043.7     $ 40,142.8     57%
    Principal gains, net   300.5       281.8     7%     609.4       575.6     6%
    Commission and clearing fees   164.3       136.2     21%     313.6       265.9     18%
    Consulting, management, and account fees   44.3       40.2     10%     92.1       78.7     17%
    Interest income   389.0       326.0     19%     767.2       616.1     25%
    Total revenues   36,890.7       22,106.1     67%     64,826.0       41,679.1     56%
    Cost of sales of physical commodities   35,934.7       21,287.9     69%     62,925.7       40,076.7     57%
    Operating revenues   956.0       818.2     17%     1,900.3       1,602.4     19%
    Transaction-based clearing expenses   91.8       78.5     17%     178.3       152.8     17%
    Introducing broker commissions   45.5       42.0     8%     89.8       81.1     11%
    Interest expense   316.6       259.2     22%     622.8       495.2     26%
    Interest expense on corporate funding   14.8       16.2     (9)%     30.0       29.4     2%
    Net operating revenues   487.3       422.3     15%     979.4       843.9     16%
    Compensation and other expenses:                      
    Variable compensation and benefits   146.7       123.7     19%     280.0       245.6     14%
    Fixed compensation and benefits   120.4       110.7     9%     239.6       206.9     16%
    Trading systems and market information   19.5       19.4     1%     39.5       38.1     4%
    Professional fees   16.5       19.3     (15)%     35.5       35.0     1%
    Non-trading technology and support   20.9       18.0     16%     40.6       34.9     16%
    Occupancy and equipment rental   13.1       13.6     (4)%     26.1       21.3     23%
    Selling and marketing   13.4       15.6     (14)%     25.4       27.3     (7)%
    Travel and business development   7.1       7.1     —%     15.5       14.2     9%
    Communications   2.1       2.3     (9)%     4.2       4.5     (7)%
    Depreciation and amortization   15.6       12.3     27%     31.3       23.5     33%
    Bad debts (recoveries), net   0.1       (0.4 )   n/m     1.9       (0.7 )   n/m
    Other   14.8       15.3     (3)%     31.5       32.2     (2)%
    Total compensation and other expenses   390.2       356.9     9%     771.1       682.8     13%
    Other gains   —       6.9     (100)%     5.7       6.9     (17)%
    Income before tax   97.1       72.3     34%     214.0       168.0     27%
    Income tax expense   25.4       19.2     32%     57.2       45.8     25%
    Net income $ 71.7     $ 53.1     35%   $ 156.8     $ 122.2     28%
    Earnings per share:(1)                      
    Basic $ 1.49     $ 1.12     33%   $ 3.26     $ 2.59     26%
    Diluted $ 1.41     $ 1.09     29%   $ 3.10     $ 2.51     24%
    Weighted-average number of common shares outstanding:(1)                      
    Basic   46,789,431       45,710,784     2%     46,602,574       45,529,236     2%
    Diluted   49,376,423       47,248,414     5%     48,981,445       47,060,608     4%
                           
    Return on equity (“ROE”)(1)   15.7 %     14.0 %         17.5 %     16.7 %    
    ROE on tangible book value(1)   16.5 %     14.8 %         18.3 %     17.7 %    
    n/m = not meaningful to present as a percentage
    (1)   The Company calculates ROE on stated book value based on net income divided by average stockholders’ equity. For the calculation of ROE on tangible book value, the amount of goodwill and intangibles, net is excluded from stockholders’ equity.
    (2)   On March 21, 2025, the Company effected a three-for-two stock dividend to stockholders of record as of March 11, 2025. The stock split increased the number of shares of common stock outstanding. All share and per share amounts have been retroactively adjusted for the stock split.

    The following table presents our consolidated operating revenues by segment for the periods indicated.

      Three Months Ended March 31,   Six Months Ended March 31,
    (in millions)   2025       2024     %
    Change    		     2025       2024     %
    Change
    Segment operating revenues represented by:                      
    Commercial $ 248.6     $ 200.5     24%   $ 480.9     $ 398.9     21%
    Institutional   561.2       463.4     21%     1,100.8       899.1     22%
    Self-Directed/Retail   93.4       102.0     (8)%     217.5       194.5     12%
    Payments   50.3       49.3     2%     108.4       109.9     (1)%
    Corporate   16.7       14.4     16%     27.8       23.6     18%
    Eliminations   (14.2 )     (11.4 )   25%     (35.1 )     (23.6 )   49%
    Operating revenues $ 956.0     $ 818.2     17%   $ 1,900.3     $ 1,602.4     19%

    The following table presents our consolidated income by segment for the periods indicated.

      Three Months Ended March 31,   Six Months Ended March 31,
    (in millions)   2025       2024     %
    Change    		     2025       2024     %
    Change
    Segment income represented by:                      
    Commercial $ 96.7     $ 85.6     13%   $ 198.9     $ 172.8     15%
    Institutional   86.5       61.3     41%     164.6       126.5     30%
    Self-Directed/Retail   22.0       33.2     (34)%     78.9       61.9     27%
    Payments   24.5       24.6     —%     58.6       59.6     (2)%
    Total segment income $ 229.7     $ 204.7     12%   $ 501.0     $ 420.8     19%
    Reconciliation of segment income to income before tax:            
    Segment income $ 229.7     $ 204.7     12%   $ 501.0     $ 420.8     19%
    Net operating loss within Corporate (1)   (8.6 )     (12.8 )   (33)%     (29.7 )     (28.4 )   5%
    Overhead costs and expenses   (124.0 )     (119.6 )   4%     (257.3 )     (224.4 )   15%
    Income before tax $ 97.1     $ 72.3     34%   $ 214.0     $ 168.0     27%
    (1)   Includes interest expense on corporate funding.

    Key Operating Metrics

    The tables below present operating revenues disaggregated across the key products we provide to our clients and select operating data and metrics used by management in evaluating our performance, for the periods indicated.

      Three Months Ended March 31,   Six Months Ended March 31,
        2025       2024     %
    Change    		     2025       2024     %
    Change
    Operating Revenues (in millions):                      
    Listed derivatives $ 128.4     $ 111.7     15%   $ 240.2     $ 220.9     9%
    Over-the-counter (“OTC”) derivatives   60.3       53.0     14%     96.9       97.5     (1)%
    Securities   426.7       340.7     25%     828.5       656.9     26%
    FX/Contracts for difference (“CFD”) contracts   70.9       80.3     (12)%     169.5       154.9     9%
    Payments   49.2       48.4     2%     106.0       107.8     (2)%
    Physical contracts   72.6       45.9     58%     165.2       97.3     70%
    Interest/fees earned on client balances   101.7       104.2     (2)%     209.3       202.6     3%
    Other   43.7       31.0     41%     92.0       64.5     43%
    Corporate   16.7       14.4     16%     27.8       23.6     18%
    Eliminations   (14.2 )     (11.4 )   25%     (35.1 )     (23.6 )   49%
      $ 956.0     $ 818.2     17%   $ 1,900.3     $ 1,602.4     19%
    Volumes and Other Select Data:                              
    Listed derivatives (contracts, 000’s)   61,153       53,805     14%     114,333       104,563     9%
    Listed derivatives, average rate per contract (“RPC”)(1) $ 2.02     $ 1.98     2%   $ 2.02     $ 2.01     —%
    Average client equity – listed derivatives (millions) $ 6,639     $ 6,064     9%   $ 6,630     $ 6,117     8%
    OTC derivatives (contracts, 000’s)   897       810     11%     1,756       1,625     8%
    OTC derivatives, average RPC $ 68.35     $ 65.66     4%   $ 55.87     $ 60.28     (7)%
    Securities average daily volume (“ADV”) (millions) $ 8,915     $ 7,473     19%   $ 8,822     $ 6,838     29%
    Securities rate per million (“RPM”) (2) $ 279     $ 239     17%   $ 258     $ 265     (3)%
    Average money market/FDIC sweep client balances (millions) $ 1,283     $ 1,047     23%   $ 1,240     $ 1,054     18%
    FX/CFD contracts ADV (millions) $ 11,539     $ 10,453     10%   $ 11,613     $ 10,685     9%
    FX/CFD contracts RPM $ 97     $ 120     (19)%   $ 115     $ 114     1%
    Payments ADV (millions) $ 77     $ 64     20%   $ 81     $ 69     17%
    Payments RPM $ 10,526     $ 12,327     (15)%   $ 10,466     $ 12,453     (16)%
    (1)   Give-up fee revenues, related to contract execution for clients of other FCMs, as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average rate per contract.
    (2)   Interest expense associated with our fixed income activities is deducted from operating revenues in the calculation of Securities RPM while interest income related to securities lending is excluded.

    Interest expense

      Three Months Ended March 31,   Six Months Ended March 31,
    (in millions)   2025       2024     %
    Change    		     2025       2024     %
    Change
    Interest expense attributable to:                      
    Trading activities:                      
    Institutional dealer in fixed income securities $ 232.6     $ 198.0     17%   $ 456.2     $ 370.1     23%
    Securities borrowing   21.4       14.0     53%     43.4       28.6     52%
    Client balances on deposit   31.1       31.4     (1)%     64.9       67.7     (4)%
    Short-term financing facilities of subsidiaries and other direct interest of operating segments   31.5       15.8     99%     58.3       28.8     102%
        316.6       259.2     22%     622.8       495.2     26%
    Corporate funding   14.8       16.2     (9)%     30.0       29.4     2%
    Total interest expense $ 331.4     $ 275.4     20%   $ 652.8     $ 524.6     24%

    The increase in interest expense attributable to fixed income securities and securities borrowing was principally due to the growth in the size of the security repo and securities lending businesses. The increase in other direct interest expense attributable to operating segments principally resulted from an increase in the activities of our physical precious metals and commodities businesses.

    Net Operating Revenues

    The table below presents a disaggregation of consolidated net operating revenues used by management in evaluating our performance, for the periods indicated:

      Three Months Ended March 31,   Six Months Ended March 31,
        2025       2024     %
    Change    		     2025       2024     %
    Change
    Net Operating Revenues (in millions):                      
    Listed derivatives $ 60.3     $ 48.2     25%   $ 110.2     $ 98.6     12%
    OTC derivatives   60.2       53.0     14%     96.8       97.4     (1)%
    Securities   120.8       88.6     36%     222.6       184.5     21%
    FX/CFD contracts   62.5       71.8     (13)%     152.8       138.0     11%
    Payments   46.5       45.9     1%     100.7       102.9     (2)%
    Physical contracts   48.6       36.8     32%     125.7       78.8     60%
    Interest, net / fees earned on client balances   74.5       74.0     1%     151.9       137.0     11%
    Other   22.5       16.8     34%     48.4       35.1     38%
    Corporate   (8.6 )     (12.8 )   (33)%     (29.7 )     (28.4 )   5%
      $ 487.3     $ 422.3     15%   $ 979.4     $ 843.9     16%


    Variable vs. Fixed Expenses
    The table below sets forth our variable expenses and non-variable expenses as a percentage of total non-interest expenses for the periods indicated.

      Three Months Ended March 31,   Six Months Ended March 31,
    (in millions)   2025     % of
    Total    		     2024     % of
    Total    		     2025     % of
    Total    		     2024     % of
    Total
    Variable compensation and benefits $ 146.7     28%   $ 123.7     26%   $ 280.0     27%   $ 245.6     27%
    Transaction-based clearing expenses   91.8     17%     78.5     16%     178.3     17%     152.8     16%
    Introducing broker commissions   45.5     9%     42.0     9%     89.8     9%     81.1     9%
    Total variable expenses   284.0     54%     244.2     51%     548.1     53%     479.5     52%
    Fixed compensation and benefits   120.4     23%     110.7     23%     239.6     23%     206.9     23%
    Other fixed expenses   123.0     23%     122.9     26%     249.6     24%     231.0     25%
    Bad debts (recoveries), net   0.1     —%     (0.4 )   —%     1.9     —%     (0.7 )   —%
    Total non-variable expenses   243.5     46%     233.2     49%     491.1     47%     437.2     48%
    Total non-interest expenses $ 527.5     100%   $ 477.4     100%   $ 1,039.2     100%   $ 916.7     100%


    Other Gains, net

    The results of the six months ended March 31, 2025 included nonrecurring gains of $5.7 million resulting from proceeds received from class action settlements.

    Segment Results

    Our business activities are managed through four operating segments, including Commercial, Institutional, Self-Directed/Retail and Payments.

    The tables below present the financial performance, a disaggregation of operating revenues, select operating data and metrics, and a disaggregation of net operating revenue used by management in evaluating the performance of our segments, for the periods indicated. Additional information on the performance of our segments will be included in our Quarterly Report on Form 10-Q to be filed with the SEC.
    Commercial

      Three Months Ended March 31,   Six Months Ended March 31,
    (in millions)   2025       2024     %
    Change    		     2025       2024     %
    Change
    Revenues:                      
    Sales of physical commodities $ 35,955.5     $ 21,310.0     69%   $ 62,989.2     $ 40,119.5     57%
    Principal gains, net   89.6       73.7     22%     156.8       150.8     4%
    Commission and clearing fees   54.3       47.0     16%     103.0       91.3     13%
    Consulting, management and account fees   6.6       7.1     (7)%     13.1       12.9     2%
    Interest income   46.0       41.3     11%     98.9       82.6     20%
    Total revenues   36,152.0       21,479.1     68%     63,361.0       40,457.1     57%
    Cost of sales of physical commodities   35,903.4       21,278.6     69%     62,880.1       40,058.2     57%
    Operating revenues   248.6       200.5     24%     480.9       398.9     21%
    Transaction-based clearing expenses   19.1       16.9     13%     36.7       32.7     12%
    Introducing broker commissions   13.1       10.9     20%     24.4       21.3     15%
    Interest expense   23.1       8.5     172%     37.3       17.3     116%
    Net operating revenues   193.3       164.2     18%     382.5       327.6     17%
    Variable compensation and benefits   53.4       44.9     19%     96.9       81.9     18%
    Net contribution   139.9       119.3     17%     285.6       245.7     16%
    Fixed compensation and benefits   19.7       16.5     19%     36.7       32.0     15%
    Other fixed expenses   23.8       24.0     (1)%     49.1       47.8     3%
    Bad debts (recoveries), net   (0.3 )     0.1     n/m     0.9       —     n/m
    Non-variable direct expenses   43.2       40.6     6%     86.7       79.8     9%
    Other gain   —       6.9     (100)%     —       6.9     (100)%
    Segment income   96.7       85.6     13%     198.9       172.8     15%
    Allocation of overhead costs   9.9       8.9     11%     19.6       17.7     11%
    Segment income, less allocation of overhead costs $ 86.8     $ 76.7     13%   $ 179.3     $ 155.1     16%
      Three Months Ended March 31,   Six Months Ended March 31,
        2025       2024     %
    Change    		     2025       2024     %
    Change
    Operating Revenues (in millions):                      
    Listed derivatives $ 75.5     $ 59.1     28%   $ 137.7     $ 118.5     16%
    OTC derivatives   60.3       53.0     14%     96.9       97.5     (1)%
    Physical contracts   71.4       43.9     63%     161.5       94.5     71%
    Interest/fees earned on client balances   34.7       38.1     (9)%     71.3       75.3     (5)%
    Other   6.7       6.4     5%     13.5       13.1     3%
      $ 248.6     $ 200.5     24%   $ 480.9     $ 398.9     21%
                           
    Volumes and Other Select Data:    
    Listed derivatives (contracts, 000’s)   11,434       9,635     19%     22,042       19,157     15%
    Listed derivatives, average RPC (1) $ 6.35     $ 5.91     7%   $ 6.02     $ 5.94     1%
    Average client equity – listed derivatives (millions) $ 1,737     $ 1,684     3%   $ 1,732     $ 1,692     2%
    OTC derivatives (contracts, 000’s)   897       810     11%     1,756       1,625     8%
    OTC derivatives, average RPC $ 68.35     $ 65.66     4%   $ 55.87     $ 60.28     (7)%
    (1)   Give-up fee revenues, related to contract execution for clients of other FCMs, as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average RPC.
      Three Months Ended March 31,   Six Months Ended March 31,
        2025       2024     %
    Change    		     2025       2024     %
    Change
    Net Operating Revenues (in millions):                      
    Listed derivatives $ 46.6     $ 34.3     36%   $ 83.9     $ 71.1     18%
    OTC derivatives   60.2       53.0     —%     96.8       97.4     (1)%
    Physical contracts   47.6       35.0     36%     122.4       76.3     60%
    Interest/fees earned on client balances   32.1       35.2     (9)%     65.9       69.5     (5)%
    Other   6.8       6.7     1%     13.5       13.3     2%
      $ 193.3     $ 164.2     18%   $ 382.5     $ 327.6     17%


    Institutional

      Three Months Ended March 31,   Six Months Ended March 31,
    (in millions)   2025       2024     %
    Change    		     2025       2024     %
    Change
    Revenues:                      
    Sales of physical commodities $ —     $ —     —%   $ —     $ —     —%
    Principal gains, net   107.9       97.6     11%     216.5       200.8     8%
    Commission and clearing fees   95.4       74.8     28%     181.1       148.1     22%
    Consulting, management and account fees   20.5       17.7     16%     40.8       35.0     17%
    Interest income   337.4       273.3     23%     662.4       515.2     29%
    Total revenues   561.2       463.4     21%     1,100.8       899.1     22%
    Cost of sales of physical commodities   —       —     —%     —       —     —%
    Operating revenues   561.2       463.4     21%     1,100.8       899.1     22%
    Transaction-based clearing expenses   67.1       56.0     20%     130.1       108.9     19%
    Introducing broker commissions   7.2       8.0     (10)%     15.3       15.7     (3)%
    Interest expense   295.9       249.6     19%     590.4       476.1     24%
    Net operating revenues   191.0       149.8     28%     365.0       298.4     22%
    Variable compensation and benefits   62.5       47.3     32%     118.7       95.7     24%
    Net contribution   128.5       102.5     25%     246.3       202.7     22%
    Fixed compensation and benefits   21.8       20.4     7%     40.4       36.8     10%
    Other fixed expenses   20.3       22.2     (9)%     42.7       41.2     4%
    Bad debts (recoveries), net   (0.1 )     (1.4 )   (93)%     (0.1 )     (1.8 )   (94)%
    Non-variable direct expenses   42.0       41.2     2%     83.0       76.2     9%
    Other gain   —       —     —%     1.3       —     n/m
    Segment income   86.5       61.3     41%   $ 164.6     $ 126.5     30%
    Allocation of overhead costs   15.1       13.3     14%     29.9       26.1     15%
    Segment income, less allocation of overhead costs $ 71.4     $ 48.0     49%   $ 134.7     $ 100.4     34%
      Three Months Ended March 31,   Six Months Ended March 31,
        2025       2024     %
    Change    		     2025       2024     %
    Change
    Operating Revenues (in millions):                      
    Listed derivatives $ 52.9     $ 52.6     1%   $ 102.5     $ 102.4     —%
    Securities   398.8       314.9     27%     772.3       608.5     27%
    FX contracts   7.9       7.6     4%     17.5       15.6     12%
    Interest/fees earned on client balances   66.4       65.4     2%     136.7       125.9     9%
    Other   35.2       22.9     54%     71.8       46.7     54%
      $ 561.2     $ 463.4     21%   $ 1,100.8     $ 899.1     22%
                           
    Volumes and Other Select Data:                    
    Listed derivatives (contracts, 000’s)   49,719       44,170     13%     92,291       85,406     8%
    Listed derivatives, average RPC (1) $ 1.02     $ 1.12     (9)%   $ 1.07     $ 1.12     (4)%
    Average client equity – listed derivatives (millions) $ 4,902     $ 4,380     12%   $ 4,898     $ 4,425     11%
    Securities ADV (millions) $ 8,915     $ 7,473     19%   $ 8,822     $ 6,838     29%
    Securities RPM (2) $ 279     $ 239     17%   $ 258     $ 265     (3)%
    Average money market/FDIC sweep client balances (millions) $ 1,283     $ 1,047     23%   $ 1,240     $ 1,054     18%
    FX contracts ADV (millions) $ 2,948     $ 4,065     (27)%   $ 3,524     $ 4,017     (12)%
    FX contracts RPM $ 41     $ 30     37%   $ 38     $ 32     19%
    (1)   Give-up fees, related to contract execution for clients of other FCMs, are excluded from the calculation of listed derivatives, average RPC.
    (2)   Interest expense associated with our fixed income activities is deducted from operating revenues in the calculation of Securities RPM, while interest income related to securities lending is excluded.
     
      Three Months Ended March 31,   Six Months Ended March 31,
        2025       2024     %
    Change    		     2025       2024     %
    Change
    Net Operating Revenues (in millions):                      
    Listed derivatives $ 13.7     $ 13.9     (1)%   $ 26.3     $ 27.5     (4)%
    Securities   114.5       82.8     38%     210.1       174.2     21%
    FX contracts   7.1       6.6     8%     15.6       13.5     16%
    Interest/fees earned on client balances   41.8       38.1     10%     84.7       66.1     28%
    Other   13.9       8.4     65%     28.3       17.1     65%
      $ 191.0     $ 149.8     28%   $ 365.0     $ 298.4     22%

    Self-Directed/Retail

      Three Months Ended March 31,   Six Months Ended March 31,
    (in millions)   2025       2024     %
    Change    		     2025       2024     %
    Change
    Revenues:                      
    Sales of physical commodities $ 37.1     $ 11.9     212%   $ 54.5     $ 23.3     134%
    Principal gains, net   50.2       61.8     (19)%     129.7       117.4     10%
    Commission and clearing fees   13.7       13.7     —%     27.2       24.9     9%
    Consulting, management and account fees   16.0       13.9     15%     35.3       28.0     26%
    Interest income   7.7       10.0     (23)%     16.4       19.4     (15)%
    Total revenues   124.7       111.3     12%     263.1       213.0     24%
    Cost of sales of physical commodities   31.3       9.3     237%     45.6       18.5     146%
    Operating revenues   93.4       102.0     (8)%     217.5       194.5     12%
    Transaction-based clearing expenses   3.2       3.5     (9)%     6.6       7.0     (6)%
    Introducing broker commissions   24.2       22.4     8%     48.2       42.8     13%
    Interest expense   2.0       1.8     11%     4.1       3.4     21%
    Net operating revenues   64.0       74.3     (14)%     158.6       141.3     12%
    Variable compensation and benefits   4.6       4.4     5%     7.6       8.8     (14)%
    Net contribution   59.4       69.9     (15)%     151.0       132.5     14%
    Fixed compensation and benefits   8.9       11.3     (21)%     18.3       21.6     (15)%
    Other fixed expenses   27.9       25.4     10%     57.1       48.9     17%
    Bad debts, net of recoveries   0.6       —     n/m     1.1       0.1     n/m
    Non-variable direct expenses   37.4       36.7     2%     76.5       70.6     8%
    Other gain   —       —     —%     4.4       —     n/m
    Segment income   22.0       33.2     (34)%     78.9       61.9     27%
    Allocation of overhead costs   12.7       12.0     6%     25.3       23.5     8%
    Segment income, less allocation of overhead costs $ 9.3     $ 21.2     (56)%   $ 53.6     $ 38.4     40%
      Three Months Ended March 31,   Six Months Ended March 31,
        2025       2024     %
    Change    		     2025       2024     %
    Change
    Operating Revenues (in millions):                      
    Securities $ 27.9     $ 25.8     8%   $ 56.2     $ 48.4     16%
    FX/CFD contracts   63.0       72.7     (13)%     152.0       139.3     9%
    Physical contracts   1.2       2.0     (40)%     3.7       2.8     32%
    Interest/fees earned on client balances   0.6       0.7     (14)%     1.3       1.4     (7)%
    Other   0.7       0.8     (13)%     4.3       2.6     65%
      $ 93.4     $ 102.0     (8)%   $ 217.5     $ 194.5     12%
                           
    Volumes and Other Select Data:    
    FX/CFD contracts ADV (millions) $ 8,591     $ 6,388     34%   $ 8,089     $ 6,668     21%
    FX/CFD contracts RPM $ 116     $ 177     (34)%   $ 149     $ 164     (9)%
      Three Months Ended March 31,   Six Months Ended March 31,
        2025       2024     %
    Change    		     2025       2024     %
    Change
    Net Operating Revenues (in millions):                      
    Securities $ 6.3     $ 5.8     9%   $ 12.5     $ 10.3     21%
    FX/CFD contracts   55.4       65.2     (15)%     137.2       124.5     10%
    Physical contracts   1.0       1.8     (44)%     3.3       2.5     32%
    Interest/fees earned on client balances   0.6       0.7     (14)%     1.3       1.4     (7)%
    Other   0.7       0.8     (13)%     4.3       2.6     65%
      $ 64.0     $ 74.3     (14)%   $ 158.6     $ 141.3     12%


    Payments

      Three Months Ended March 31,   Six Months Ended March 31,
    (in millions)   2025       2024     %
    Change    		     2025       2024     %
    Change
    Revenues:                      
    Sales of physical commodities $ —     $ —     —%   $ —     $ —     —%
    Principal gains, net   47.7       46.5     3%     102.1       104.0     (2)%
    Commission and clearing fees   1.6       1.4     14%     3.4       2.9     17%
    Consulting, management, account fees   0.5       0.8     (38)%     1.8       1.7     6%
    Interest income   0.5       0.6     (17)%     1.1       1.3     (15)%
    Total revenues   50.3       49.3     2%     108.4       109.9     (1)%
    Cost of sales of physical commodities   —       —     —%     —       —     —%
    Operating revenues   50.3       49.3     2%     108.4       109.9     (1)%
    Transaction-based clearing expenses   1.7       1.7     —%     3.5       3.5     —%
    Introducing broker commissions   1.0       0.7     43%     1.9       1.3     46%
    Interest expense   —       0.1     (100)%     —       0.1     (100)%
    Net operating revenues   47.6       46.8     2%     103.0       105.0     (2)%
    Variable compensation and benefits   8.8       9.5     (7)%     17.9       20.1     (11)%
    Net contribution   38.8       37.3     4%     85.1       84.9     —%
    Fixed compensation and benefits   7.4       7.3     1%     14.0       14.6     (4)%
    Other fixed expenses   7.0       4.5     56%     12.5       9.7     29%
    Bad debts, net of recoveries   (0.1 )     0.9     n/m     —       1.0     (100)%
    Total non-variable direct expenses   14.3       12.7     13%     26.5       25.3     5%
    Segment income   24.5       24.6     —%     58.6       59.6     (2)%
    Allocation of overhead costs   5.7       5.2     10%     11.3       10.3     10%
    Segment income, less allocation of overhead costs $ 18.8     $ 19.4     (3)%   $ 47.3     $ 49.3     (4)%
      Three Months Ended March 31,   Six Months Ended March 31,
        2025       2024     %
    Change    		     2025       2024     %
    Change
    Operating Revenues (in millions):                      
    Payments $ 49.2     $ 48.4     2%   $ 106.0     $ 107.8     (2)%
    Other   1.1       0.9     22%     2.4       2.1     14%
      $ 50.3     $ 49.3     2%   $ 108.4     $ 109.9     (1)%
                           
    Volumes and Other Select Data:    
    Payments ADV (millions) $ 77     $ 64     20%   $ 81     $ 69     17%
    Payments RPM $ 10,526     $ 12,327     (15)%   $ 10,466     $ 12,453     (16)%
      Three Months Ended March 31,   Six Months Ended March 31,
        2025       2024     %
    Change    		     2025       2024     %
    Change
    Net Operating Revenues (in millions):                      
    Payments $ 46.5     $ 45.9     1%   $ 100.7     $ 102.9     (2)%
    Other   1.1       0.9     22%     2.3       2.1     10%
      $ 47.6     $ 46.8     2%   $ 103.0     $ 105.0     (2)%


    Overhead Costs and Expenses

    We incur overhead costs and expenses, including certain shared services such as information technology, accounting and treasury, credit and risk, legal and compliance, and human resources and other activities. The following table provides information regarding overhead costs and expenses. The allocation of overhead costs to operating segments includes costs associated with compliance, technology, and credit and risk costs. The share of allocated costs is based on resources consumed by the relevant businesses. In addition, the allocation of human resources and occupancy costs is principally based on employee costs within the relevant businesses.

      Three Months Ended March 31,   Six Months Ended March 31,
    (in millions)   2025       2024     %
    Change    		     2025       2024     %
    Change
    Compensation and benefits:                      
    Variable compensation and benefits $ 15.9     $ 16.4     (3)%   $ 36.1     $ 35.8     1%
    Fixed compensation and benefits   55.5       48.7     14%     116.5       89.3     30%
        71.4       65.1     10%     152.6       125.1     22%
    Other expenses:                      
    Occupancy and equipment rental   12.1       13.1     (8)%     24.2       20.4     19%
    Non-trading technology and support   16.1       13.6     18%     31.4       26.6     18%
    Professional fees   8.7       8.3     5%     17.4       15.8     10%
    Depreciation and amortization   6.8       6.1     11%     13.2       11.6     14%
    Communications   1.4       1.6     (13)%     2.9       3.2     (9)%
    Selling and marketing   2.3       4.3     (47)%     3.2       5.6     (43)%
    Trading systems and market information   1.8       1.5     20%     3.4       3.2     6%
    Travel and business development   2.2       2.1     5%     4.8       3.8     26%
    Other   1.2       3.9     (69)%     4.2       9.1     (54)%
        52.6       54.5     (3)%     104.7       99.3     5%
    Overhead costs and expenses   124.0       119.6     4%     257.3       224.4     15%
    Allocation of overhead costs   (43.4 )     (39.4 )   10%     (86.1 )     (77.6 )   11%
    Overhead costs and expense, net of allocation to operating segments $ 80.6     $ 80.2     —%   $ 171.2     $ 146.8     17%


    Balance Sheet Summary

    The following table below provides a summary of asset, liability and stockholders’ equity information for the periods indicated.

    (Unaudited) (in millions, except for share and per share amounts) March 31, 2025   September 30, 2024
    Summary asset information:      
    Cash and cash equivalents $ 1,307.3     $ 1,269.0  
    Cash, securities and other assets segregated under federal and other regulations $ 2,850.3     $ 2,841.2  
    Securities purchased under agreements to resell $ 6,917.6     $ 5,201.5  
    Securities borrowed $ 1,803.9     $ 1,662.3  
    Deposits with and receivables from broker-dealers, clearing organizations and counterparties, net $ 7,261.2     $ 7,283.2  
    Receivables from clients, net and notes receivable, net $ 1,354.9     $ 1,013.1  
    Financial instruments owned, at fair value $ 8,200.9     $ 6,767.1  
    Physical commodities inventory, net $ 796.2     $ 681.1  
    Property and equipment, net $ 146.3     $ 143.1  
    Operating right of use assets $ 159.8     $ 157.0  
    Goodwill and intangible assets, net $ 90.0     $ 80.6  
    Other $ 394.5     $ 367.1  
           
    Summary liability and stockholders’ equity information:      
    Accounts payable and other accrued liabilities $ 569.9     $ 548.8  
    Operating lease liabilities $ 201.9     $ 195.9  
    Payables to clients $ 10,712.6     $ 10,345.9  
    Payables to broker-dealers, clearing organizations and counterparties $ 578.7     $ 734.2  
    Payables to lenders under loans $ 340.9     $ 338.8  
    Senior secured borrowings, net $ 543.6     $ 543.1  
    Securities sold under agreements to repurchase $ 11,137.3     $ 8,581.3  
    Securities loaned $ 1,509.9     $ 1,615.9  
    Financial instruments sold, not yet purchased, at fair value $ 3,806.1     $ 2,853.3  
    Stockholders’ equity $ 1,882.0     $ 1,709.1  
           
    Common stock outstanding – shares   48,765,820       47,811,539  
    Net asset value per share $ 38.59     $ 35.75  

    Conference Call & Web Cast

    A conference call to discuss the Company’s financial results will be held tomorrow, Thursday, May 8, 2025 at 9:00 a.m. Eastern time. The call may also include discussion of Company developments, and forward-looking and other material information about business and financial matters. A live webcast of the conference call as well as additional information to review during the call will be made available in PDF form on-line on the Company’s corporate web site at https://register-conf.media-server.com/register/BIcee2351db2614b049aa108c318550f21 approximately ten minutes prior to the start time. Participants may preregister for the conference call here.

    For those who cannot access the live broadcast, a replay of the call will be available at https://www.stonex.com.

    About StoneX Group Inc.

    StoneX Group Inc., through its subsidiaries, operates a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise. The Company strives to be the one trusted partner to its clients, providing its network, product and services to allow them to pursue trading opportunities, manage their market risks, make investments and improve their business performance. A Fortune-500 company headquartered in New York City and listed on the Nasdaq Global Select Market (NASDAQ:SNEX), StoneX Group Inc. and its more than 4,700 employees serve more than 54,000 commercial, institutional, and payments clients, and more than 400,000 retail accounts, from more than 80 offices spread across six continents. Further information on the Company is available at www.stonex.com.

    Forward Looking Statements

    This press release includes 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, such as those pertaining to the Company’s financial condition, results of operations, business strategy, financial needs of the Company, the anticipated timing of the Company’s acquisition of R.J. O’Brien and the impact of the transaction. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words “believe,” “expect,” “anticipate,” “should,” “plan,” “will,” “may,” “could,” “intend,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms and similar expressions, as they relate to StoneX Group Inc., are intended to identify forward-looking statements.

    These forward-looking statements are largely based on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the Company. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the control of the Company, including adverse changes in economic, political and market conditions, including losses from our market-making and trading activities arising from counterparty failures, global trade policies and tariffs, the loss of key personnel, the impact of increasing competition, the impact of changes in government regulation, uncertainty concerning fiscal or monetary policies established by central banks and financial regulators, the possibility of liabilities arising from violations of foreign, United States (“U.S.”) federal and U.S. state securities laws, the impact of changes in technology in the securities and commodities trading industries, and other risks discussed in our filings with the SEC, including Part I, Item 1A of our Annual Report on Form 10-K for the year ended September 30, 2024. Although we believe that our forward-looking statements are based upon reasonable assumptions regarding our business and future market conditions, there can be no assurances that our actual results will not differ materially from any results expressed or implied by our forward-looking statements.

    These forward-looking statements speak only as of the date of this press release. StoneX Group Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

    StoneX Group Inc.

    Investor inquiries:

    Kevin Murphy
    (212) 403 – 7296
    kevin.murphy@stonex.com

    SNEX-G

    The MIL Network –

  • MIL-OSI: The Herzfeld Caribbean Basin Fund, Inc. Announces Special Meeting of Stockholders to be Held on June 17, 2025

    Source: GlobeNewswire (MIL-OSI)

    MIAMI BEACH, Fla., May 07, 2025 (GLOBE NEWSWIRE) — The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ: CUBA) (the “Fund”) today announced that the Fund has filed preliminary proxy materials (“Proxy Materials”) with the U.S. Securities and Exchange Commission in connection with a special meeting of stockholders to be held on June 17, 2025, for its stockholders to consider and vote on proposals necessary to approve the Fund’s conversion from its current investment strategy and redirect the Fund to focus on a “CLO Equity Strategy”. With this change, the Fund’s primary investment objective will change to a total return strategy with a secondary objective of generating high current income for stockholders. In accordance with the change in investment objective, the Fund will focus on investing in equity and junior debt tranches of collateralized loan obligations, or “CLOs”. CLOs are portfolios of collateralized loans consisting primarily of below investment grade U.S. senior secured loans with a large number of distinct underlying borrowers across various industry sectors.

    The Fund’s Board of Directors (“Board”) has fixed May 5, 2025, as the record date for determination of the Fund’s stockholders entitle to notice of and to vote at the Fund’s special meeting.

    The Fund’s special meeting will be held at the Fund’s offices at 119 Washington Avenue, Suite 504, Miami Beach, Florida 33139, on June 17, 2025, at 10:00 a.m., Eastern Time.

    There are three proposals to be considered by the Fund’s stockholders at the special meeting:

    • Proposal 1 seeks approval of an amended and restated investment advisory agreement between the Fund and Thomas J. Herzfeld Advisors, Inc. (the “Adviser”) to permit the Adviser to receive a fee based on “managed assets” and an incentive fee.
    • Proposal 2 seeks approval to revise the Fund’s investment objective from obtaining “long term capital appreciation” to a primary objective of “maximizing risk adjusted total returns” with a secondary objective of “generating high current income;” and to reclassify the Fund’s investment objective as non-fundamental.
    • Proposal 3 seeks approval to amend the fundamental policies of the Fund related to borrowing, the issuance of senior securities, underwriting securities issued by other persons, industry concentration, the purchase or sale of real estate, the purchase or sale of commodities, and making loans to other persons.

    The Investment Company Act of 1940, as amended (the “1940 Act”), requires any change to a fundamental policy and the entering into of the new investment management agreement be approved by “a majority of the outstanding voting securities” of the Fund (as defined under the 1940 Act).

    The Proposals referred to above are discussed in detail in the Proxy Materials filed today with the SEC.

    Additional Information about the Special Meeting

    The Fund is filing today with the SEC its preliminary Proxy Materials (Filing Type: PRE 14A). The Fund’s definitive Proxy Statement currently is anticipated to be filed with the SEC late in May 2025 (Filing Type: DEF 14A). Stockholders can obtain these documents (when available) free of charge from the SEC’s website at www.sec.gov. The definitive Proxy Statement for the Fund also will be posted (when available) on the Fund’s website at www.herzfeld.com/cuba. In addition, free copies (when it becomes available) of the definitive Proxy Statement and other documents filed with the SEC may also be obtained by directing a request to the Fund at (800) 854-3863.

    This press release is for informational purposes and is not intended to, and does not, solicit a proxy from any shareholder of the Fund. The solicitation of proxies to effect the proposed changes is only be made by a definitive Proxy Statement.

    This press release references a preliminary Proxy Materials filed by the Fund. The definitive Proxy Statement has yet to be filed with the Securities and Exchange Commission (the “SEC”). After the definitive Proxy Statement is filed with the SEC, it may be amended or withdrawn.

    The Fund and its directors, officers and employees, and the Adviser, and its shareholders, officers and employees and other persons may be deemed to be participants in the solicitation of proxies with respect to the proposed fundamental policy changes and the proposed approval of the investment advisory agreement. Investors and shareholders may obtain more detailed information regarding the direct and indirect interests of the Fund’s directors, officers and employees, and Adviser and its stockholders, officers and employees and other persons by reading the definitive Proxy Statement when it is filed with the SEC.    INVESTORS AND SECURITY HOLDERS OF THE FUND ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THESE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSALS. INVESTORS SHOULD CONSIDER THE INVESTMENT OBJECTIVE, RISKS, CHARGES AND EXPENSES OF THE FUND CAREFULLY. THE DEFINITIVE PROXY STATEMENT WILL CONTAIN INFORMATION WITH RESPECT TO THE INVESTMENT OBJECTIVE, RISKS, CHARGES AND EXPENSES OF THE FUND.

    The definitive Proxy Statement will not constitute an offer to buy or sell securities, in any state where such offer or sale is not permitted. Security holders may obtain free copies (when it becomes available) of the definitive Proxy Statement and other documents filed with the SEC at the SEC’s web site at www.sec.gov. In addition, free copies (when it becomes available) of the definitive Proxy Statement and other documents filed with the SEC may also be obtained by directing a request to the Fund at (800) 854-3863

    About Thomas J. Herzfeld Advisors, Inc.

    Thomas J. Herzfeld Advisors, Inc., founded in 1984, is an SEC registered investment advisor, specializing in investment analysis and account management in closed-end funds.

    More information about the advisor can be found at www.herzfeld.com.

    Past performance is no guarantee of future performance. An investment in the Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price which is more or less than the original purchase price or the net asset value. An investor should carefully consider the Fund’s investment objective, risks, charges and expenses. Please read the Fund’s disclosure documents before investing.

    Forward-Looking Statements

    This press release, and other statements that TJHA or the Fund may make, may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Fund’s or TJHA’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions. TJHA and the Fund caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and TJHA and the Fund assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. With respect to the Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, particularly with respect to Cuba and other Caribbean Basin countries, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Fund or in the Fund’s net asset value; (2) the relative and absolute investment performance of the Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or TJHA, as applicable; (8) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or TJHA or the Fund; (9) TJHA’s and the Fund’s ability to attract and retain highly talented professionals; (10) the impact of TJHA electing to provide support to its products from time to time; (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions; and (12) the effects of an epidemic, pandemic or public health emergency, including without limitation, COVID-19. Annual and Semi-Annual Reports and other regulatory filings of the Fund with the SEC are accessible on the SEC’s website at www.sec.gov and on TJHA’s website at www.herzfeld.com/cuba, and may discuss these or other factors that affect the Fund. The information contained on TJHA’s website is not a part of this press release.

    TJHA has received certain nominations or awards by third-parties as reflected herein. Investors should review the criteria for each nomination or award as reflected on the third-party’s webpage. In addition, the nominations and awards reflect past performance of the nominee or award designee and may not reflect the current performance or status of any such firm or individual and may no longer be applicable. Morningstar award content presented with permission and licensing fee. Contact us for more information on how the ratings are apportioned and for full disclosures regarding third party news and awards.

    Contact:
    Thomas Morgan
    Chief Compliance Officer
    Thomas J. Herzfeld Advisors, Inc.
    1-305-777-1660

    The MIL Network –

  • MIL-OSI Security: Middletown Man Indicted for Violent Crime Spree

    Source: Federal Bureau of Investigation (FBI) State Crime News

    WILMINGTON, Del. – A federal grand jury in the District of Delaware returned a four-count indictment on April 10, 2025, charging a Middletown man with robbing a restaurant and a gas station and committing a carjacking – all at gunpoint.

    According to court documents, on January 25, 2025, Anthony Fields, 48, of Middletown robbed a Middletown restaurant using a distinctive sawed-off shotgun with a duct-taped handle.  Five days later, Fields robbed a Middletown gas station brandishing the same distinctive sawed-off shotgun.  During these robberies, Fields stole cash, lottery tickets, and a gas station employee’s cell phone.  While fleeing the gas station robbery, Fields carjacked an occupied 2016 Hyundai Elantra, pointing the sawed-off shotgun at the victim driver.

    Despite Fields’ attempts to evade law enforcement, the Middletown Police Department and the FBI traced Fields’ movements in the days following his crime spree through witness testimony, phone and lottery ticket records, and video surveillance.  The investigation revealed that Fields cashed some of the stolen lottery tickets and abandoned the stolen car at a nearby casino before traveling to Philadelphia.  Fields turned himself in to authorities on February 2, 2025.  He remains in federal custody.

    The indictment charges Fields with two counts of Hobbs Act Robbery, one count of carjacking, and one count of brandishing and using a firearm in relation to a Hobbs Act Robbery.  If convicted of all counts, Fields faces a mandatory minimum of seven years of incarceration for brandishing and using the firearm, in addition to any penalties for the underlying crimes, and a maximum penalty of life in prison.  A federal district court judge will determine any sentence after consideration of the U.S. Sentencing Guidelines and other statutory factors.

    Shannon T. Hanson, Acting U.S. Attorney for the District of Delaware, and Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office made the announcement.

    This case is being investigated by the Middletown Police Department and the FBI.  Assistant U.S. Attorneys Kevin P. Pierce and Bryan C. Williamson are prosecuting the case.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware.  Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.

    An indictment contains allegations that a defendant has committed a crime.  Every defendant is presumed to be innocent until and unless proven guilty in court.

    MIL Security OSI –

  • MIL-OSI: AMD to Host Annual Meeting of Stockholders

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., May 07, 2025 (GLOBE NEWSWIRE) — AMD (NASDAQ: AMD) will hold its Annual Meeting of Stockholders on Wednesday, May 14, 2025 at 9 a.m. PDT as a virtual meeting accessible at https://www.virtualshareholdermeeting.com/AMD2025. Forward-looking and other material information may be discussed during the meeting.

    The matters to be voted on at the meeting are in AMD’s 2025 Proxy Statement filed with the U.S. Securities and Exchange Commission. The Proxy Statement and AMD’s Annual Report on Form 10-K can be accessed at ir.amd.com.

    The real-time audio webcast of the meeting will be available at https://www.virtualshareholdermeeting.com/AMD2025. A replay of the audio webcast can be accessed at ir.amd.com approximately 24 hours after the conclusion of the live event and will be available for up to one year after the meeting.

    About AMD
    For more than 55 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, LinkedIn, Facebook and X pages.

    AMD, the AMD Arrow logo and the combination thereof are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and may be trademarks of their respective owners.

    Contact
    Phil Hughes
    AMD Communications
    512-865-9697
    phil.hughes@amd.com

    Liz Stine
    AMD Investor Relations
    (720) 652-3965
    liz.stine@amd.com

    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-Evening Report: Vietnam is poised to become a top 20 economy, so why is Australia taking so long to make trade and investment links?

    Source: The Conversation (Au and NZ) – By Anne Vo, Senior lecturer in Vietnamese culture and politics, University of Wollongong

    Aritra Deb/Shutterstock

    At a time of widespread global trade instability, Australia should be expanding and diversifying its economic partnerships. Supply chains remain fragile, and protectionist rhetoric is once again gaining traction in major Western economies.

    US President Donald Trump’s America First agenda includes sweeping tariffs on imports, withdrawal from multilateral agreements and pressure to take production in-house.

    At the same time, China, Australia’s largest trading partner, has often used trade for geopolitical leverage. In 2020, Beijing imposed tariffs of more than 200% on Australian wine. This wiped 30% off the sector’s export value.

    So economic diversification is not only desirable but strategically imperative.

    An opportunity

    Fifty years on from the fall of Saigon, Vietnam presents a compelling opportunity for economic and strategic diversification. The reunited country is eager to move beyond its wartime image and assert itself as an emerging economic powerhouse.

    Vietnam’s capital, Ho Chi Min City. The country has shifted from being a place synonymous with war to becoming one of the world’s top economies.
    Nguyen Quang Ngoc Tonkin/Shutterstock

    Since the launch of the Doi Moi reforms in 1986, Vietnam has embraced economic liberalisation and market-oriented policies. The Doi Moi reforms opened the economy to foreign trade, allowed private ownership and restructured state-owned enterprises.

    From a growth rate of just 1.6% in 1980, Vietnam is now set to become one of the world’s top 20 economies by 2050. In 2023 alone, it attracted A$8.5 billion in foreign direct investment, underscoring strong investor confidence.

    The 50th anniversary of reunification on April 30 provided insights into the country’s growth. Celebrations included military parades, 3D virtual reality displays and exhibitions promoting advances in technology.

    Slow to act

    Yet Australia has been slow to act. Despite geographic proximity and shared interests, Australia’s economic footprint in Vietnam remains surprisingly small. In 2023, Australian foreign direct investment totalled just A$3 million. It ranked 22nd, behind countries including Switzerland and Seychelles.

    In trade, the disparity is similarly stark. Vietnam accounts for only 2.33% of Australia’s exports and 1.4% of imports. Two-way trade between the two countries reached $26.3 billion in 2022. At the same time, Vietnam’s trade with the United States, topped A$191.9 billion.

    Some Australian firms are already making inroads. BlueScope Steel, Linfox, and SunRice have invested significantly in manufacturing, logistics and agriculture. And RMIT University has been a key player in transnational education since it opened the first of three campuses in Vietnam in 2000.

    ANZ and Qantas also have a visible presence. However, small and medium-sized enterprises – which comprise more than 98% of Australian businesses – remain largely absent. Many prefer export partnerships or distributor agreements over direct investment.

    Potential obstacles

    Australian companies have long favoured English-speaking or high-income markets. These offer greater institutional and cultural familiarity and regulatory certainty.

    Vietnam’s relationship-based commercial environment poses challenges, especially for firms lacking embedded networks and local knowledge. Concerns around regulatory transparency, intellectual property protection, contract enforcement and corruption – though improving – continue to weigh on corporate decisions.

    Small to medium enterprises, in particular, face extra barriers due to limited institutional support, regulatory understanding, market intelligence and in-country networks.

    Help from government

    The Australian government has taken some steps to catch up. The Enhanced Economic Engagement Strategy, launched in 2021, aims to double two-way investment and elevate both nations to top ten trading partner status.

    It identifies priority sectors such as agriculture, education, clean energy, digital technology and manufacturing. However, the strategy contains no enforceable legal protections, tariff concessions or means of dispute resolution.

    Manufacturing is one of the priority areas recognised in Australia’s Enhanced Economic Engagement Strategy for Vietnam.
    Hien Phung Tu/Shutterstock

    The lack of these matters. Japan, South Korea and the European Union have pursued coordinated economic strategies that include concessional loans, robust legal frameworks and in-market support services. These help their businesses thrive in Vietnam’s complex regulatory environment.

    Similarly, the EU has integrated trade promotion with legal certainty under agreements like the EU Vietnam Free Trade Agreement.

    More needs to be done

    Without comparable tools, Australia’s initiatives risk being more aspirational than actionable.

    Last year’s upgrade in bilateral ties to a Comprehensive Strategic Partnership, signals growing political will.

    For Australia to realise the potential of its relationship with Vietnam it should back long-term policies. These policies should reduce market entry barriers, incentivise small to medium enterprises and increase joint skills development.

    Investors also need legal and institutional support.

    Australia has strong potential to expand into emerging sectors. These include renewable energy, digital technology, healthcare, vocational education and training, green and smart infrastructure and agritech.

    Vietnam’s push for environmentally sustainable economic growth, digital transformation and workforce training aligns closely with Australian strengths. This creates opportunities for strategic investment and cooperation.

    There is the potential for Australia to build a dynamic partnership with Vietnam central to its long-term economic position in the Indo-Pacific.

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

    – ref. Vietnam is poised to become a top 20 economy, so why is Australia taking so long to make trade and investment links? – https://theconversation.com/vietnam-is-poised-to-become-a-top-20-economy-so-why-is-australia-taking-so-long-to-make-trade-and-investment-links-255722

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Security: Justice Department Announces Results of Operation Restore Justice: 205 Alleged Child Sex Abuse Offenders Arrested in FBI-Led Five-Day Nationwide Crackdown

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    Seven cases move forward in Western Washington during National Child Abuse Prevention month

    Seattle – Today, the Department of Justice announced the results of Operation Restore Justice, a coordinated enforcement effort to identify, track and arrest child sex predators.  The operation resulted in the rescue of 115 children and the arrest of 205 child sexual abuse offenders in the nationwide crackdown.  The coordinated effort was executed by all 55 FBI field offices, the Child Exploitation and Obscenity Section in the Department’s Criminal Division, and United States Attorney’s Offices around the country.

    “The Department of Justice will never stop fighting to protect victims — especially child victims — and we will not rest until we hunt down, arrest, and prosecute every child predator who preys on the most vulnerable among us,” said Attorney General Pamela Bondi. “I am grateful to the FBI and their state and local partners for their incredible work in Operation Restore Justice and have directed my prosecutors not to negotiate.”

    “Every child deserves to grow up free from fear and exploitation, and the FBI will continue to be relentless in our pursuit of those who exploit the most vulnerable among us,” said FBI Director Kash Patel. “Operation Restore Justice proves that no predator is out of reach and no child will be forgotten. By leveraging the strength of all our field offices and our federal, state, and local partners, we’re sending a clear message: there is no place to hide for those who prey on children.”

    In the Western District of Washington, seven federal cases moved forward with criminal charges, pleas, and/or sentencings of those who target minors for sexual abuse.

    “There is no greater responsibility than protecting our children from those seeking to sexually abuse them, either online or in person,” said Acting U.S. Attorney Teal Luthy Miller. “The cases we prosecuted over the last month charging child sexual exploitation in person and over the internet, and child sex trafficking are examples of the difficult work we do every day with our law enforcement partners to try to keep children safe.”

    “FBI Seattle’s Violent Crimes Against Children squad and our partners are hard at work, not only during Child Abuse Prevention Month in April, but also throughout the year,” said W. Mike Herrington, Special Agent in Charge of the FBI Seattle field office. “We are arresting predators, recovering children, and assisting victims through the support of our victim specialists. Just this fiscal year in the Seattle division, we have arrested 122 subjects and identified or located 59 children.”

    These are the FBI-led child sex abuse cases prosecuted in the Western District of Washington in April 2025:

    Others arrested around the country are alleged to have committed various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. In Minneapolis, for example, a state trooper and Army Reservist was arrested for allegedly producing child sexual abuse material while wearing his uniforms. In Norfolk, VA, an illegal alien from Mexico is accused of transporting a minor across state lines for sex. In Washington, D.C., a former Metropolitan Police Department Police Officer was arrested for allegedly trafficking minor victims.

    In many cases, parental vigilance and community outreach efforts played a critical role in bringing these offenders to justice. For example, a California man was arrested about eight hours after a young victim bravely came forward and disclosed their abuse to FBI agents after an online safety presentation at a school near Albany, N.Y.

    This effort follows the Department’s observance of National Child Abuse Prevention Month in April and underscores the Department’s unwavering commitment to protecting children and raising awareness about the dangers they face. While the Department, including the FBI, investigates and prosecutes these crimes every day, April serves as a powerful reminder of the importance of preventing these crimes, seeking justice for victims, and raising awareness through community education.

    The Justice Department is committed to combating child sexual exploitation. These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.

    The Department partners with and oversees funding grants for the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.

    The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI’s tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.

    Other online resources:

    Electronic Press Kit

    Violent Crimes Against Children

    How we can help you: Parents and caregivers protecting your kids

    The charges contained in the indictments or criminal complaints are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

    These cases are being prosecuted by Assistant United States Attorneys Cecelia Gregson, Kate Crisham, and Special Assistant United States Attorney Laura Harmon. Ms. Harmon is a Senior Deputy Prosecutor with the King County Prosecutors Office, specially designated to prosecute child exploitation cases in federal court.

    MIL Security OSI –

  • 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: WF Holding Limited Announces Underwriters’ Exercise of Over-Allotment Option

    Source: GlobeNewswire (MIL-OSI)

    KUALA LUMPUR, May 07, 2025 (GLOBE NEWSWIRE) — WF Holding Limited (NASDAQ: WFF) (“WF Holding” or “Company”), a Malaysia-based manufacturer of fiberglass reinforced plastic (FRP) products, today announced the underwriters of its initial public offering (the “Offering”) have partially exercised their over-allotment option to purchase an additional 240,000 ordinary shares at the public offering price of US$4.00 per share, resulting in additional gross proceeds of US$960,000.

    After giving effect to the partial exercise of the over-allotment option, the total number of ordinary shares sold by the Company in the public offering increased to 2,240,000 ordinary shares and the gross proceeds increased to approximately US$8.96 million, before deducting underwriter discounts and other related expenses. The option closing date was May 7, 2025.

    The ordinary shares began trading on the Nasdaq Capital Market on March 27, 2025, under the ticker symbol “WFF.”

    Dominari Securities LLC acted as the lead underwriter, with Revere Securities LLC acting as a co-underwriter for the Offering. Bevilacqua PLLC acted as U.S. counsel to the Company, and The Crone Law Group, P.C. acted as U.S. counsel to the underwriters in connection with the Offering.

    A registration statement on Form F-1 relating to the Offering was filed with the U.S. Securities and Exchange Commission (the “SEC”) (File Number: 333-282294) and was declared effective by the SEC on March 26, 2025. The Offering was made only by means of a prospectus, forming a part of the registration statement, and a free writing prospectus. Copies of the final prospectus relating to the Offering may be obtained from Dominari Securities LLC by email at info@dominarisecurities.com, by standard mail to Dominari Securities LLC, 725 Fifth Avenue, 23rd Floor, New York, NY 10022 USA, or by telephone at +1 (212) 393-4500; or from Revere Securities LLC by email at contact@reveresecurities.com, by standard mail to Revere Securities LLC, 560 Lexington Ave, 16th Floor, New York, NY 10022 USA, or by telephone at (212) 688-2238. In addition, copies of the prospectus and free writing prospectus relating to the Offering may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov.

    This press release does not constitute an offer to sell, or the solicitation of an offer to buy any of the Company’s securities, nor shall there be any offer, solicitation or sale of any of the Company’s securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

    About WF Holding Limited (NASDAQ: WFF)

    Based in Malaysia, WF Holding Limited is an ISO 9001:2015 certified manufacturer of fiberglass reinforced plastic (FRP) products including tanks, pipes, ducts and custom-made FRP products. With a track record of over 30 years, we design and fabricate products that meet the specific needs of our clients, ensuring high-quality and reliable performance. Our high-quality and durable products leverage the advantages of FRP to reinforce critical industrial infrastructure, driving resilience, longevity and sustainability. We also deliver a wide range of related services such as consultation, delivery, installation, repair and maintenance.

    Forward-Looking Statements

    Certain statements in this announcement are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, the use of proceeds from the sale of the Company’s shares in the Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “may,” “could,” “will,” “should,” “would,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “project” or “continue” or the negative of these terms or other comparable terminology in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

    For more information, please contact:

    WF Holding Limited
    Investor Relations
    Email: corporate@winfung.com.my

    Sense Consultancy Group
    Yan Pheng Liang
    Email: phengliang@leesense.com

    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: ESCO Reports Second Quarter Fiscal 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    St. Louis, May 07, 2025 (GLOBE NEWSWIRE) — ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the second quarter ended March 31, 2025 (Q2 2025).

    Operating Highlights

    • Q2 2025 Sales increased $16.4 million (7 percent) to $265.5 million compared to $249.1 million in Q2 2024.
    • Q2 2025 Entered Orders were $290.8 million for a book-to-bill ratio of 1.10x, resulting in record backlog of $932 million.
    • Q2 2025 GAAP EPS increased 33 percent to $1.20 per share compared to $0.90 per share in Q2 2024.
    • Q2 2025 Adjusted EPS increased 24 percent to $1.35 per share compared to $1.09 per share in Q2 2024.
    • Net cash provided by operating activities was $58 million YTD, an increase of $39 million compared to the prior year period.

    Bryan Sayler, Chief Executive Officer and President, commented, “Q2 was another strong quarter as we delivered 7 percent top line growth, 250 basis points of Adjusted EBITDA margin expansion, and a 24 percent increase in Adjusted EPS compared to the prior year. All three segments delivered solid revenue growth, highlighted by strength across our Navy, commercial aerospace, utility, and Test end-markets.   It was very positive to see orders increase 22 percent over the prior year, with particular strength in both USG and Test.

    “As previously announced, we closed the SM&P acquisition on April 25th. Going forward, SM&P will be known as ESCO Maritime Solutions (Maritime). We are happy to welcome the Maritime employees to the ESCO team. Maritime’s signature and power management solutions meaningfully expand our naval product offerings in both the US and UK. We are optimistic about the future of ESCO and are pleased to have Maritime join us as an integral part of that journey.”       

    Segment Performance

    Aerospace & Defense (A&D)

    • Sales increased $8.7 million (8 percent) to $123.4 million in Q2 2025 from $114.7 million in Q2 2024. The Q2 increase was driven by strength in Navy and aerospace sales.
    • EBIT increased $6.9 million in Q2 2025 to $30.3 million from $23.4 million in Q2 2024. Adjusted EBIT increased $6.7 million in Q2 2025 to $30.3 million (24.6 percent margin) from $23.6 million (20.6 percent margin) in Q2 2024. Margin improvement was driven by price increases and mix, partially offset by inflationary pressures.
    • Entered Orders increased $6 million (5 percent) to $122 million in Q2 2025 compared to $116 million in Q2 2024.   Q2 2025 included a $6M order for PTI’s cartridge actuated devices/propellant actuated devices (CAD/PAD) products. The segment book-to-bill was 0.99x in the quarter, resulting in ending backlog of $605 million.  

    Utility Solutions Group (USG)

    • Sales increased $3.5 million (4 percent) to $90.8 million in Q2 2025 from $87.3 million in Q2 2024. Doble’s sales increased by $3.5 million (5 percent) driven by a strong quarter for offline and protection testing products and services, partially offset by lower cybersecurity/compliance (DUCe) solutions. NRG sales were flat to the prior year due to moderation in renewable energy projects.
    • EBIT increased $3.2 million in Q2 2025 to $20.8 million from $17.6 million in Q2 2024. Adjusted EBIT increased $3.3 million in Q2 2025 to $20.9 million (23.0 percent margin) from $17.6 million (20.1 percent margin) in Q2 2024.   Margin was favorably impacted by leverage on higher volume, price increases and mix, partially offset by inflationary pressures.  
    • Entered Orders increased $13 million (17 percent) to $92 million in Q2 2025. Doble orders increased by $11 million (17 percent) on strong offline test equipment and services orders. NRG orders increased by $2 million (15 percent) driven by solar orders in North America and EMEA.   The segment book-to-bill was 1.02x in the quarter, resulting in ending backlog of $124 million.

    RF Test & Measurement (Test)

    • Sales increased $4.3 million (9 percent) to $51.4 million in Q2 2025 from $47.1 million in Q2 2024. Sales growth was primarily driven by higher Test and Measurement, industrial shielding, and medical services in the US, along with a strong quarter for MPE filters projects.
    • EBIT increased $0.9 million in Q2 2025 to $6.4 million from $5.5 million in Q2 2024. Adjusted EBIT increased $0.7 million in Q2 2025 to $6.4 million (12.4 percent margin) from $5.7 million (12.2 percent margin) in Q2 2024. Margin was favorably impacted by leverage on higher volume, price increases, and cost reduction efforts, partially offset by unfavorable mix and inflationary pressures.  
    • Entered Orders increased $33 million (75 percent) to $77 million in Q2 2025. The increase was primarily driven by a strong quarter for US Test & Measurement, filters, and medical and industrial shielding orders. In addition, orders in China increased $9M in the quarter, primarily related to Test & Measurement projects. The segment book-to-bill was 1.50x in the quarter, resulting in ending backlog of $203 million.

    Business Outlook – 2025

    Guidance for Q3 2025 and FY 2025 is being shown both with and without the impact of Maritime to provide insight into our expectations for Maritime’s impact on the remainder of Q3 2025 (approximately 2 months) and FY 2025 (approximately 5 months).   The transaction costs and purchase accounting amortization associated with the Maritime acquisition have not yet been finalized and are not included in our current business outlook.  

    Consistent with our initial FY 2025 guidance, organic sales are expected to grow 6 to 8 percent in FY 2025. Maritime is expected to contribute sales in the range of $90 to $100 million in FY 2025.

        Guidance Range ($ Millions)
    Sales Guidance excluding Maritime   $ 1,090   $ 1,110
    Maritime Impact   $ 90   $ 100
    Sales Guidance including Maritime   $ 1,180   $ 1,210

    In our Q1 2025 earnings release (dated 2/6/2025), FY 2025 Adjusted EPS guidance was increased to $5.55-$5.75. Due to continued market strength and improvement in operational performance, we are raising our full-year guidance by another $0.10 to $5.65 to $5.85 (18 to 23 percent growth over the prior year). Maritime is expected to contribute Adjusted EPS in the range of $0.20 – $0.30 in FY 2025.     

        Guidance Range
    Previous FY 2025 Adjusted EPS Guidance   $ 5.55   $ 5.75
    Guidance Increase   $ 0.10   $ 0.10
    Updated FY’25 Adjusted EPS Guidance excluding Maritime   $ 5.65   $ 5.85
    Maritime Impact   $ 0.20   $ 0.30
    Updated FY’25 Adjusted EPS Guidance including Maritime   $ 5.85   $ 6.15

    Management’s expectation is for Q3 Adjusted EPS without Maritime to be in the range of $1.50 to $1.60 (15 to 22 percent growth over the prior year quarter). Maritime is expected to add Adjusted EPS in the range of $0.08 to $0.12 in Q3 2025.

        Guidance Range
    Q3 2025 Adjusted EPS Guidance excluding Maritime   $ 1.50   $ 1.60
    Maritime Impact   $ 0.08   $ 0.12
    Q3 2025 Adjusted EPS Guidance including Maritime   $ 1.58   $ 1.72

    Dividend Payment
    The next quarterly cash dividend of $0.08 per share will be paid on July 17, 2025 to stockholders of record on July 2, 2025.

    Conference Call
    The Company will host a conference call today, May 7, at 4:00 p.m. Central Time, to discuss the Company’s Q2 2025 results. A live audio webcast and an accompanying slide presentation will be available in the Investor Center of ESCO’s website. Participants may also access the webcast using this registration link. For those unable to participate, a webcast replay will be available after the call in the Investor Center of ESCO’s website.

    Forward-Looking Statements
    Statements in this press release regarding Management’s intentions, expectations and guidance for fiscal 2025, including restructuring and cost reduction actions, sales, orders, revenues, margin, earnings, Adjusted EPS, acquisition related amortization, and any other statements which are not strictly historical, are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. securities laws.

    Investors are cautioned that such statements are only predictions and speak only as of the date of this presentation, and the Company undertakes no duty to update them except as may be required by applicable laws or regulations. The Company’s actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company’s operations and business environment including but not limited to those described in Item 1A, “Risk Factors”, of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and the following: the timing and outcome, if any, of the Company’s strategic alternatives review of the VACCO business; the impacts of climate change and related regulation of greenhouse gases; the impacts of labor disputes, civil disorder, wars, elections, political changes, tariffs and trade disputes, terrorist activities, cyberattacks or natural disasters on the Company’s operations and those of the Company’s customers and suppliers; disruptions in manufacturing or delivery arrangements due to shortages or unavailability of materials or components or supply chain disruptions; inability to access work sites; the timing and content of future contract awards or customer orders; the timely appropriation, allocation and availability of Government funds; the termination for convenience of Government and other customer contracts or orders; weakening of economic conditions in served markets; the success of the Company’s competitors; changes in customer demands or customer insolvencies; competition; intellectual property rights; technical difficulties or data breaches; the availability of acquisitions; delivery delays or defaults by customers; performance issues with key customers, suppliers and subcontractors; material changes in the costs and availability of certain raw materials; material changes in the cost of credit; changes in laws and regulations including but not limited to changes in accounting standards and taxation; changes in interest, inflation and employment rates; costs relating to environmental matters arising from current or former facilities; uncertainty regarding the ultimate resolution of current disputes, claims, litigation or arbitration; and the integration and performance of acquired businesses.

    Non-GAAP Financial Measures
    The financial measures EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are presented in this press release. The Company defines “EBIT” as earnings before interest and taxes, “EBITDA” as earnings before interest, taxes, depreciation and amortization, “Adjusted EBIT” and “Adjusted EBITDA” as excluding the net impact of the items described in the attached Reconciliation of Non-GAAP Financial Measures, and “Adjusted EPS” as GAAP earnings per share excluding the net impact of the items described and reconciled in the attached Reconciliation of Non-GAAP Financial Measures.

    EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are not recognized in accordance with U.S. generally accepted accounting principles (GAAP). However, Management believes EBIT, Adjusted EBIT, EBITDA, and Adjusted EBITDA are useful in assessing the operational profitability of the Company’s business segments because they exclude interest, taxes, depreciation, and amortization, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by Management in determining resource allocations within the Company as well as incentive compensation. The presentation of EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS provides important supplemental information to investors by facilitating comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.

    About ESCO
    ESCO Technologies is a global provider of highly engineered products and solutions serving diverse end-markets. It manufactures filtration and fluid control products, advanced composites, as well as signature and power management solutions for aviation, Navy, space, and industrial customers. ESCO is an industry leader in designing and manufacturing RF test and measurement products and systems; and provides diagnostic instruments, software and services to industrial power users and the electric utility and renewable energy industries. Headquartered in St. Louis, Missouri, ESCO and its subsidiaries have offices and manufacturing facilities worldwide. For more information on ESCO and its subsidiaries, visit ESCO’s website at www.escotechnologies.com.

    ESCO TECHNOLOGIES INC. AND SUBSIDIARIES  
    Condensed Consolidated Statements of Operations (Unaudited)  
    (Dollars in thousands, except per share amounts)  
        
              Three Months
    Ended
    March 31,
    2025    		   Three Months
    Ended
    March 31,
    2024    		  
                     
    Net Sales     $ 265,519   249,129  
    Cost and Expenses:          
      Cost of sales   156,298   152,347  
      Selling, general and administrative expenses   58,163   55,097  
      Amortization of intangible assets   7,989   8,572  
      Interest expense   2,195   3,226  
      Other expenses (income), net   375   666  
        Total costs and expenses   225,020   219,908  
                     
    Earnings before income taxes   40,499   29,221  
    Income tax expense   9,466   6,002  
                     
        Net earnings $ 31,033   23,219  
                     
          Earnings Per Share (EPS)          
                     
          Diluted – GAAP $ 1.20   0.90  
                     
          Diluted – As Adjusted Basis $ 1.35 (1 ) 1.09 (2 )
                     
          Diluted average common shares O/S:   25,877   25,847  
                     
    (1 ) Q2 2025 Adjusted EPS excludes $0.15 per share of after-tax charges consisting primarily of acquisition related amortization.
                     
    (2 ) Q2 2024 Adjusted EPS excludes $0.19 per share of after-tax charges consisting of: $0.02 of MPE acquisition backlog charges, $0.02 of restructuring charges (primarily severance) within the Test and A&D segments, and $0.15 of acquisition related amortization.

       
       

    ESCO TECHNOLOGIES INC. AND SUBSIDIARIES  
    Condensed Consolidated Statements of Operations (Unaudited)  
    (Dollars in thousands, except per share amounts)  
        
              Six Months
    Ended
    March 31, 2025    		   Six Months
    Ended
    March 31, 2024    		  
                     
    Net Sales   $ 512,545     467,443  
    Cost and Expenses:          
      Cost of sales   304,940     286,498  
      Selling, general and administrative expenses   116,947     109,065  
      Amortization of intangible assets   15,982     16,440  
      Interest expense   4,452     5,893  
      Other expenses (income), net   (216 )   872  
        Total costs and expenses   442,105     418,768  
                     
    Earnings before income taxes   70,440     48,675  
    Income tax expense   15,934     10,287  
                     
        Net earnings $ 54,506     38,388  
                     
          Earnings Per Share (EPS)          
                     
          Diluted – GAAP $ 2.11     1.49  
                     
          Diluted – As Adjusted Basis $ 2.42   (1 ) 1.85 (2 )
                     
          Diluted average common shares O/S:   25,854     25,846  
                     
    (1 ) YTD Q2 2025 Adjusted EPS excludes $0.31 per share of after-tax charges consisting primarily of $0.01 of restructuring charges within the Test segment and $0.30 of acquisition related amortization.
                     
    (2 ) YTD Q2 2024 Adjusted EPS excludes $0.36 per share of after-tax charges consisting of: $0.05 of MPE acquisition backlog and inventory step-up charges and acquisition costs, $0.02 of restructuring charges (primarily severance) within the Test and A&D segments, and $0.29 of acquisition related amortization.

        
        

    ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
    Condensed Business Segment Information (Unaudited)
    (Dollars in thousands)
       
            GAAP   As Adjusted  
            Q2 2025   Q2 2024   Q2 2025   Q2 2024  
    Net Sales                  
      Aerospace & Defense $ 123,369     114,701     123,369     114,701    
      USG   90,767     87,309     90,767     87,309    
      Test   51,383     47,119     51,383     47,119    
        Totals $ 265,519     249,129     265,519     249,129    
                           
    EBIT                    
      Aerospace & Defense $ 30,296     23,377     30,298     23,640    
      USG   20,779     17,575     20,862     17,575    
      Test   6,369     5,542     6,369     5,745    
      Corporate   (14,750 )   (14,047 )   (9,648 )   (8,260 )  
        Consolidated EBIT   42,694     32,447     47,881     38,700    
        Less: Interest expense   (2,195 )   (3,226 )   (2,195 )   (3,226 )  
        Less: Income tax expense   (9,466 )   (6,002 )   (10,659 )   (7,440 )  
        Net earnings $ 31,033     23,219     35,027     28,034    
                              
    Note 1: Adjusted net earnings of $35.0 million in Q2 2025 exclude $4.0 million (or $0.15 per share) of after-tax charges consisting primarily of acquisition related amortization.
                           
    Note 2: Adjusted net earnings of $28.0 million in Q2 2024 exclude $4.8 million (or $0.19 per share) of after-tax charges consisting of: $0.02 of MPE acquisition backlog charges, $0.02 of restructuring charges (primarily severance) within the Test and A&D segments, and $0.15 of acquisition related amortization.
                           
    EBITDA Reconciliation to Net earnings:           Q2 2025 –   Q2 2024 –  
            Q2 2025   Q2 2024   As Adjusted   As Adjusted  
    Consolidated EBITDA $ 56,668     46,550     56,895     47,174    
    Less: Depr & Amort   (13,974 )   (14,103 )   (9,014 )   (8,474 )  
    Consolidated EBIT   42,694     32,447     47,881     38,700    
    Less: Interest expense   (2,195 )   (3,226 )   (2,195 )   (3,226 )  
    Less: Income tax expense   (9,466 )   (6,002 )   (10,659 )   (7,440 )  
    Net earnings $ 31,033     23,219     35,027     28,034    
                           

       
       

    ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
    Condensed Business Segment Information (Unaudited)
    (Dollars in thousands)
       
            GAAP   As Adjusted  
            YTD Q2 2025   YTD Q2 2024   YTD Q2 2025   YTD Q2 2024  
    Net Sales                  
      Aerospace & Defense $ 237,670     209,434     237,670     209,434    
      USG   177,427     170,293     177,427     170,293    
      Test   97,448     87,716     97,448     87,716    
        Totals $ 512,545     467,443     512,545     467,443    
                           
    EBIT                      
      Aerospace & Defense $ 51,892     40,040     51,920     40,303    
      USG   41,269     35,200     41,352     35,320    
      Test   10,791     7,321     11,256     7,797    
      Corporate   (29,060 )   (27,993 )   (18,959 )   (16,860 )  
        Consolidated EBIT   74,892     54,568     85,569     66,560    
        Less: Interest expense   (4,452 )   (5,893 )   (4,452 )   (5,893 )  
        Less: Income tax   (15,934 )   (10,287 )   (18,390 )   (13,045 )  
        Net earnings $ 54,506     38,388     62,727     47,622    
                              
    Note 1: Adjusted net earnings of $62.7 million in YTD 2025 exclude $8.2 million (or $0.31 per share) of after-tax charges consisting of: $0.01 of restructuring charges within the Test segment and acquisition related costs at Corporate, and $0.30 of acquisition related amortization.
                           
    Note 2: Adjusted net earnings of $47.6 million in YTD 2024 exclude $9.2 million (or $0.36 per share) of after-tax charges consisting of: $0.05 of MPE acquisition backlog and inventory step-up charges and acquisition costs, $0.02 of restructuring costs (primarily severance) within the Test and A&D segments, and $0.29 of acquisition related amortization.
                           
    EBITDA Reconciliation to Net earnings:           YTD   YTD  
            YTD   YTD   Q2 2025 –   Q2 2024 –  
            Q2 2025   Q2 2024   As Adjusted   As Adjusted  
    Consolidated EBITDA $ 102,673     82,123     103,393     83,582    
    Less: Depr & Amort   (27,781 )   (27,555 )   (17,824 )   (17,022 )  
    Consolidated EBIT   74,892     54,568     85,569     66,560    
    Less: Interest expense   (4,452 )   (5,893 )   (4,452 )   (5,893 )  
    Less: Income tax expense   (15,934 )   (10,287 )   (18,390 )   (13,045 )  
    Net earnings $ 54,506     38,388     62,727     47,622    
                           

        
       

    ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets (Unaudited)
    (Dollars in thousands)
       
            March 31,
    2025    		   September 30,
    2024
                 
    Assets          
      Cash and cash equivalents $ 57,397   65,963
      Accounts receivable, net   218,123   240,680
      Contract assets   125,281   130,534
      Inventories   231,200   209,164
      Other current assets   28,752   22,308
        Total current assets   660,753   668,649
      Property, plant and equipment, net   172,081   170,596
      Intangible assets, net   394,594   407,602
      Goodwill   536,222   539,899
      Operating lease assets   38,322   37,744
      Other assets   13,690   14,130
          $ 1,815,662   1,838,620
                 
    Liabilities and Shareholders’ Equity        
      Current maturities of long-term debt $ 20,000   20,000
      Accounts payable   81,244   98,371
      Contract liabilities   128,114   124,845
      Other current liabilities   92,661   106,638
        Total current liabilities   322,019   349,854
      Deferred tax liabilities   72,580   75,333
      Non-current operating lease liabilities   35,948   34,810
      Other liabilities   39,787   39,273
      Long-term debt   68,000   102,000
      Shareholders’ equity   1,277,328   1,237,350
          $ 1,815,662   1,838,620

        
       

    ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
    Consolidated Statements of Cash Flows (Unaudited)
    (Dollars in thousands)
           
        Six Months
    Ended
    March 31, 2025    		   Six Months
    Ended
    March 31, 2024
    Cash flows from operating activities:        
    Net earnings $ 54,506     38,388  
    Adjustments to reconcile net earnings to net cash        
    provided by operating activities:        
    Depreciation and amortization   27,781     27,555  
    Stock compensation expense   5,323     4,144  
    Changes in assets and liabilities   (27,207 )   (47,869 )
    Effect of deferred taxes   (2,128 )   (2,981 )
    Net cash provided by operating activities   58,275     19,237  
             
    Cash flows from investing activities:        
    Acquisition of business, net of cash acquired     (56,179 )
    Capital expenditures   (15,350 )   (16,301 )
    Additions to capitalized software   (5,465 )   (5,912 )
    Net cash used by investing activities   (20,815 )   (78,392 )
             
    Cash flows from financing activities:        
    Proceeds from long-term debt   66,000     154,000  
    Principal payments on long-term debt and short-term borrowings   (100,000 )   (65,000 )
    Dividends paid   (4,130 )   (4,125 )
    Purchases of common stock into treasury     (7,189 )
    Other   (6,146 )   (1,432 )
    Net cash (used) provided by financing activities   (44,276 )   76,254  
             
    Effect of exchange rate changes on cash and cash equivalents   (1,750 )   471  
             
    Net (decrease) increase in cash and cash equivalents   (8,566 )   17,570  
    Cash and cash equivalents, beginning of period   65,963     41,866  
    Cash and cash equivalents, end of period $ 57,397     59,436  

        
       

    ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
    Other Selected Financial Data (Unaudited)
    (Dollars in thousands)
       
    Backlog And Entered Orders – Q2 2025   A&D   USG   Test   Total
      Beginning Backlog – 1/1/25 $ 606,687     122,857     177,404     906,948  
      Entered Orders   121,706     92,184     76,950     290,840  
      Sales     (123,369 )   (90,767 )   (51,383 )   (265,519 )
      Ending Backlog – 3/31/25 $ 605,024     124,274     202,971     932,269  
                         
    Backlog And Entered Orders – YTD Q2 2025   A&D   USG   Test   Total
      Beginning Backlog – 10/1/24 $ 600,382     119,943     158,644     878,969  
      Entered Orders   242,312     181,758     141,775     565,845  
      Sales     (237,670 )   (177,427 )   (97,448 )   (512,545 )
      Ending Backlog – 3/31/25 $ 605,024     124,274     202,971     932,269  

       
       

    ESCO TECHNOLOGIES INC. AND SUBSIDIARIES  
    Reconciliation of Non-GAAP Financial Measures (Unaudited)  
             
    EPS – Adjusted Basis Reconciliation – Q2 2025      
      EPS – GAAP Basis – Q2 2025 $ 1.20  
      Adjustments (defined below)   0.15  
      EPS – As Adjusted Basis – Q2 2025 $ 1.35  
             
      Adjustments exclude $0.15 per share consisting primarily of acquisition      
      related amortization.      
      The $0.15 of EPS adjustments per share consists of $5.2 million of pre-tax      
      charges offset by $1.2 million of tax benefit for net impact of $4 million.      
             
    EPS – Adjusted Basis Reconciliation – Q2 2024      
      EPS – GAAP Basis – Q2 2024 $ 0.90  
      Adjustments (defined below)   0.19  
      EPS – As Adjusted Basis – Q2 2024 $ 1.09  
             
      Adjustments exclude $0.19 per share consisting primarily of $0.02 of MPE      
      acquisition backlog charges, $0.02 of restructuring charges within the Test      
      and A&D segments, and $0.15 of acquisition related amortization.      
      The $0.19 of EPS adjustments per share consists of $6.2 million of pre-tax charges      
      offset by $1.4 million of tax benefit for net impact of $4.8 million.      
             
    EPS – Adjusted Basis Reconciliation – YTD Q2 2025      
      EPS – GAAP Basis – YTD Q2 2025 $ 2.11  
      Adjustments (defined below)   0.31  
      EPS – As Adjusted Basis – YTD Q2 2025 $ 2.42  
             
      Adjustments exclude $0.31 per share consisting primarily of $0.01 of restructuring      
      charges within the Test segment and $0.30 of acquisition related amortization.      
      The $0.31 of EPS adjustments per share consists of $10.7 million of pre-tax charges      
      offset by $2.5 million of tax benefit for net impact of $8.2 million.      
             
    EPS – Adjusted Basis Reconciliation – YTD Q2 2024      
      EPS – GAAP Basis – YTD Q2 2024 $ 1.49  
      Adjustments (defined below)   0.36  
      EPS – As Adjusted Basis – YTD Q2 2024 $ 1.85  
             
      Adjustments exclude $0.36 per share consisting primarily of $0.05 of MPE acquisition      
      backlog charges, inventory step-up charges and acquisition costs, $0.02 of      
      restructuring charges, and $0.29 of acquisition related amortization.      
      The $0.36 of EPS adjustments per share consists of $12 million of pre-tax charges      
      offset by $2.8 million of tax benefit for net impact of $9.2 million.      

    SOURCE ESCO Technologies Inc.
    Kate Lowrey, Vice President of Investor Relations, (314) 213-7277

    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: Occidental Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, May 07, 2025 (GLOBE NEWSWIRE) — Occidental (NYSE: OXY) today announced its first quarter 2025 financial results. The earnings release and accompanying financial schedules can be accessed via the Investor Relations section of the company’s website, oxy.com. The earnings release is also available on the U.S. Securities and Exchange Commission’s website at sec.gov.

    The company will hold a conference call to discuss the results on Thursday, May 8, 2025, at 1 p.m. Eastern/12 p.m. Central. The conference call may be accessed by calling 1-866-871-6512 (international callers dial 1-412-317-5417) or via webcast at oxy.com/investors. Participants may pre-register for the conference call at https://dpregister.com/sreg/10197735/feb22db66a. A recording of the webcast will be posted on the Investor Relations section of the company’s website within several hours after the call is completed.

    About Occidental

    Occidental is an international energy company with assets primarily in the United States, the Middle East and North Africa. We are one of the largest oil and gas producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of America. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas, and includes our Oxy Low Carbon Ventures subsidiary, which is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. We are dedicated to using our global leadership in carbon management to advance a lower-carbon world. Visit Oxy.com for more information.

    Contacts

    The MIL Network –

  • MIL-OSI: APA Corporation Announces First-Quarter 2025 Financial and Operational Results

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, May 07, 2025 (GLOBE NEWSWIRE) — APA Corporation (Nasdaq: APA) today announced first-quarter 2025 results. Results can be found on the company’s website by visiting www.apacorp.com or investor.apacorp.com.

    APA will host a conference call on May 8 at 10 a.m. Central time via the webcast link available on the company website to discuss the results. Following the conference call, a replay will be available for one year on the “Investors” page of the company’s website.

    About APA

    APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.

         
    Contacts    
         
    Investor:   (281) 302-2286
    Media:   (713) 296-7276
    Website:   www.apacorp.com 
         

    APA-F

    The MIL Network –

  • MIL-OSI Canada: Breaking barriers in child care

    Licensed child-care providers can now apply for up to $5 million in new funding through the second intake of the Inclusive Spaces Program Grant. Applications are open until June 13, as part of the $15-million federal-provincial investment in the Inclusive Spaces Program Grant under the Canada-Alberta Canada-Wide Early Learning and Child Care Agreement. Investing in inclusive child-care spaces is essential to supporting Alberta’s growing population, strengthening workforce participation and ensuring all children have an accessible space in Alberta’s high-quality child-care system.

    The Inclusive Spaces Program Grant helps licensed daycares, preschools and family day home agencies improve their spaces and programming for children with diverse cultural, linguistic and support needs. More than 100 projects were approved during the first intake. The second and third intakes will create hundreds of new opportunities to transform child-care spaces across the province.

    “Every child deserves access to high-quality care that meets their unique needs. This funding is expanding inclusive spaces throughout Alberta – making a difference in every corner of the province.”

    Matt Jones, Minister of Jobs, Economy and Trade

    More Alberta families can now access child care with personalized, inclusive or modified supports. Whether that means adding wheelchair-accessible washrooms, building sensory-friendly areas, or incorporating multilingual resources into daily programming, this funding provides better quality child care for Alberta’s kids.

    This work is part of Alberta’s broader effort to expand access to high-quality early learning and child care, while also ensuring existing child-care spaces work for as many families as possible. By reducing barriers for children requiring additional support, the government is empowering more parents to stay in the workforce and helping more children to thrive in safe, engaging environments.

    “As a proud recipient of the Inclusive Spaces Grant in Intake 1, we are thrilled to see the government’s continued commitment to inclusive child care. This funding will help child-care providers like us create a welcoming environment where children of all abilities and cultural backgrounds can grow, play and thrive together.”

    Hayat El-Ossmani, owner and director, B-Smart Learning Center

    The Inclusive Spaces Program Grant complements Alberta’s Inclusive Child Care Program and Access, Support and Participation Program, which provide ongoing supports to child-care providers and prevent the exclusion of children with diverse needs.

    Every child deserves to feel seen, supported and included. Alberta’s government, in partnership with the federal government, is making that dream a reality – helping child-care centres across the province open their doors even wider.

    Quick facts

    • Alberta launched the $15-million Inclusive Spaces Program Grant in December 2024 in partnership with the federal government. Its funding is being distributed in three equal intakes of $5 million.
    • Through this grant, Alberta’s government has already distributed $5 million across 105 programs, supporting projects that will make child care more welcoming and accessible to everyone.
      • 75 grants were issued for materials, with project costs ranging from $1,200 to $116,000.
      • 30 grants were issued for renovations, with project costs ranging from $9,700 to $256,000.
    • The second of three $5-million intake periods is now open and will close on June 13.
      • This will be followed by one more intake period in fall 2025 to finish allocating the full $15 million in funding.
    • Applications will be assessed through Alberta’s Ministry of Jobs, Economy and Trade.

    Related information

    • Child care – supports for inclusion
    • Inclusive Spaces Program Grant
    • Canada-Alberta Canada-Wide Early Learning and Child Care Agreement

    Related news

    • Alberta’s inclusive spaces transformation (Dec. 13, 2024)

    MIL OSI Canada News –

  • MIL-OSI USA: Attorney General Bonta: Trump Administration Must Make a U-Turn on Illegal Withholding of Billions in Funding for EV Charging Infrastructure

    Source: US State of California

    BURLINGAME – California Attorney General Rob Bonta, California Governor Gavin Newsom, California Department of Transportation, and the California Energy Commission, today co-led a coalition of 17 attorneys general in filing a lawsuit against the Trump Administration for unlawfully withholding billions of dollars in funding approved by bipartisan majorities in Congress for electric vehicle (EV) charging infrastructure that would reduce planet-warming pollution, expand access to clean vehicles, and create thousands of green jobs. Under the direction of the President, the Federal Highway Administration (FHWA) issued a directive to thwart Congress’s $5 billion program, the National Electric Vehicle Infrastructure (NEVI) formula program, which would expand EV charging infrastructure nationwide. This directive purports to revoke the approval of all prior state EV infrastructure plans and withholds the distribution of federal funds to states. Specifically, in California, FHWA’s unlawful actions would cost the state more than $300 million, eliminate thousands of good-paying jobs, and dismantle a critical, emerging tech industry. 

    “The President continues his unconstitutional attempts to withhold funding that Congress appropriated to programs he dislikes. This time he’s illegally stripping away billions of dollars for electric vehicle charging infrastructure, all to line the pockets of his Big Oil friends,” said Attorney General Rob Bonta. “The facts don’t lie: The demand for clean transportation continues to rise, and California will be at the forefront of this transition to a more sustainable, low-emissions future. California will not back down, not from Big Oil, and not from federal overreach.”

    “When America retreats, China wins. President Trump’s illegal action withholding funds for electric vehicle infrastructure is yet another Trump gift to China – ceding American innovation and killing thousands of jobs,” said Governor Gavin Newsom. “Instead of hawking Teslas on the White House lawn, President Trump could actually help Elon – and the nation – by following the law and releasing this bipartisan funding.” 

    “California remains fully committed to developing a robust, reliable and accessible EV charging network which will help improve air quality and enhance the EV driving experience for all,” said California Energy Commission Chair David Hochschild.

    “Withholding funding now would be wasteful, illegal, performative, and only serve to delay the progress we’ve made in building a cleaner, more sustainable transportation future,” said California Transportation Secretary Toks Omishakin. “We will continue to stand up for Californians and the nation because the future of the planet depends on it.”

    In 2022, Congress passed the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law. One provision of the IIJA appropriated $5 billion for NEVI to facilitate a national network of electric vehicle charging infrastructure across the states, making clean cars accessible and convenient for more consumers and markets. On Day One, President Trump issued an executive order directing federal agencies to immediately stop releasing certain funds appropriated through the IIJA, including $5 billion that Congress appropriated for electric vehicle charging stations under NEVI. Following that directive, FHWA effectively halted the NEVI program by, among other things, withholding billions in funds that Congress had directed to the States for building EV infrastructure.

    California continues to lead the nation in the adoption of zero-emission vehicles (ZEVs) and the development of supporting infrastructure to rapidly deploy funds to develop and ensure a reliable and easy-to-use charging network. To date, over 2 million ZEVs have been sold in California, representing more than 30% of all ZEVs sold in the United States. 

    The California Energy Commission anticipates that California will need several hundred thousand more EV charging ports to support light-duty cars and trucks and incrementally more charging ports for medium- and heavy-duty trucks and buses to meet climate goals. California’s State Electric Vehicle Infrastructure Deployment Plan, approved by the federal government, would leverage public funding and private investment to build out a statewide charging infrastructure, including $384 million from the NEVI program.

    The complaint filed today alleges that the NEVI directive was arbitrary and capricious and not in accordance with law under the federal Administrative Procedure Act, and in violation of the U.S. Constitution. The NEVI program was created by statute, and, as it is a formula program, the amounts due to states are allocated by Congress, not the President. The complaint asks the court to declare that the NEVI directive is unlawful and to permanently stop the administration from withholding the funds. The states also seek a preliminary injunction to halt the illegal withholding of NEVI funds to the states.

    In filing the lawsuit Attorney General Bonta was joined by the attorneys general of Washington, Colorado, Arizona, Delaware, Hawaii, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Wisconsin, Vermont, and the District of Columbia. 

    A copy of the complaint will be made available here.

    MIL OSI USA News –

  • 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: Introducing Sunrun Flex, a Superior Solar and Storage Solution for Consumers

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, May 07, 2025 (GLOBE NEWSWIRE) — Sunrun (Nasdaq: RUN), the nation’s leading provider of clean energy as a subscription service, today introduced Sunrun Flex™, the first solar and battery storage solution designed to adapt to customers’ changing energy needs. This new offering marks the first significant financial innovation in the solar industry in nearly two decades, since Sunrun introduced the residential Power Purchase Agreement in 2007.

    Flex is a smarter way to design solar energy for homes with protection against increased energy use from life events, such as growing a family or purchasing an electric vehicle. Customers enjoy a predictable monthly minimum payment, while only paying for extra energy above their pre-solar consumption baseline when they use it at a low, locked-in Flex Rate.

    Flex households also benefit from battery backup during outages and the exclusive opportunity to earn Sunrun Rollover Credits—the first offering of its kind in the solar industry.

    “Sunrun Flex is a game-changing innovation that is customer-first in all aspects,” said Sunrun CEO Mary Powell. “Customers appreciate the peace of mind that comes from removing any guesswork and knowing they can flex their consumption depending on their energy lifestyle, while also providing protection for those hot summer months when consumption naturally increases.”

    Until now, home solar systems were designed to either match a household’s current energy usage or be oversized in anticipation of future needs—potentially resulting in either unmet needs as energy usage increases or generating solar energy that is not used immediately. Flex removes any uncertainty, offering a solution that fits families’ needs now and in the future.

    Key benefits with Sunrun Flex include:

    • Cost Predictability: Customers enjoy predictable, affordable monthly payments, with the ability to “flex” their energy usage as life changes—all while knowing exactly what their cost per kilowatt hour will be.
    • Rollover Credits: When customers use less energy than their baseline, they earn credits they can then apply when they use more energy in the future. This allows customers to bank credits during months of less energy demand and apply them later when they exceed their baseline.
    • Premium Storage: Sunrun Flex comes standard with premium battery storage, providing most homes with full backup energy protection during outages and helping customers avoid peak utility rates by using stored solar power in the evenings.
    • Grid Services: Flex customers are enrolled in Sunrun’s grid services programs and are compensated for participating, where available.
    • Performance Guarantee: Every Sunrun Flex subscription includes 24/7 system monitoring, free maintenance and repairs, a solar performance and battery health guarantee, and Flex Guarantee, which ensures a customer will not pay Sunrun more than the panels produce annually.

    “We know households that go solar increase their energy consumption by about 15% within the first year. It’s also not uncommon for solar customers to adopt an electric vehicle, which drives up their energy consumption even more,” said Sunrun President and Chief Revenue Officer Paul Dickson. “Flex is designed for the future of home energy. As customers adopt a more electrified lifestyle, Flex will provide them and their communities with benefits on day one, while unlocking future revenue opportunities for Sunrun.”

    Sunrun Flex systems are sized above a customer’s pre-solar usage for the customer’s growing energy needs. The customer will always pay a minimum monthly bill, and if the customer exceeds their energy baseline in a month, they will purchase the additional electricity at a Flex Rate. If the customer uses less than their energy baseline in a month, they will accrue Rollover Credits that can be used against their Flex charges in future months.

    With Flex, Sunrun optimizes the flow of solar energy to provide the most benefit to the customer, whether that’s immediate self consumption, storing it in the battery for later use, or exporting it to the grid so that the customer can get utility credits.

    “Flex gives us peace of mind knowing that our family is protected against rising utility bills and that our Sunrun Flex system will grow with us,” said Sunrun Flex customer Pete Aguilar. “Now we can live freely and make upgrades to our home because we’ve got energy available when we need it.”

    Sunrun’s Flex offering is exclusive to Sunrun-managed sales teams. For more information about Sunrun Flex, visit sunrun.com/flex.

    About Sunrun
    Sunrun Inc. (Nasdaq: RUN) revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to locally-generated, renewable energy. Today, Sunrun is the nation’s leading provider of clean energy as a subscription service, offering residential solar and storage with no upfront costs. Sunrun’s innovative products and solutions can connect homes to the cleanest energy on earth, providing them with energy security, predictability, and peace of mind. Sunrun also manages energy services that benefit communities, utilities, and the electric grid while enhancing customer value. Discover more at www.sunrun.com.

    Media Contact
    Wyatt Semanek
    Director, Corporate Communications
    press@sunrun.com

    Investor & Analyst Contact
    Patrick Jobin
    SVP, Deputy CFO & Investor Relations Officer
    investors@sunrun.com

    The MIL Network –

  • MIL-OSI: FormFactor Announces Participation at Upcoming Conferences

    Source: GlobeNewswire (MIL-OSI)

    LIVERMORE, Calif., May 07, 2025 (GLOBE NEWSWIRE) — FormFactor, Inc. (Nasdaq: FORM) is pleased to announce its participation in the following investor conferences:

    B. Riley 25thAnnual Investor Conference
    Location: The Ritz-Carlton, Marina del Rey
    Date: May 21st – 22nd, 2025
    Format: 1:1’s Only

    Craig-Hallum 22ndAnnual Institutional Investor Conference
    Location: Depot Renaissance Hotel Minneapolis
    Date: May 28th, 2025
    Format: 1:1’s Only

    TD Cowen 53rdAnnual Technology, Media & Telecom Conference
    Location: InterContinental New York Barclay
    Date: May 29th, 2025
    Format: 1:1’s Only

    About FormFactor:

    FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full IC life cycle – from characterization, modeling, reliability, and design de-bug to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

    Source: FormFactor, Inc.

    FORM-F

    Investor Contact:
    Stan Finkelstein
    Investor Relations
    (925) 290-4273
    ir@formfactor.com

    The MIL Network –

  • MIL-OSI: Monroe Capital Corporation BDC Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, May 07, 2025 (GLOBE NEWSWIRE) — Monroe Capital Corporation (NASDAQ: MRCC) today announced its financial results for the first quarter ended March 31, 2025.

    Except where the context suggests otherwise, the terms “Company,” “we,” “us,” and “our” refer to Monroe Capital Corporation (together with its subsidiaries).

    First Quarter 2025 Financial Highlights

    • Net Investment Income (“NII”) of $4.1 million, or $0.19 per share
    • Adjusted Net Investment Income (a non-GAAP measure described below) of $4.2 million, or $0.19 per share
    • Net increase (decrease) in net assets resulting from operations of $0.5 million, or $0.03 per share
    • Net Asset Value (“NAV”) of $186.9 million, or $8.63 per share
    • Paid quarterly dividend of $0.25 per share on March 31, 2025
    • Current annual cash dividend yield to stockholders of approximately 14.3%(1)

    Chief Executive Officer Theodore L. Koenig commented, “We are pleased to announce that we paid a $0.25 per share dividend during the first quarter representing an approximate 14.3% annualized dividend yield. The dividend was supported by the meaningful spillover income we have accumulated from prior strong performance. Our approach remains centered on prioritizing asset quality and positioning the portfolio for long-term performance across changing market conditions.”

    Monroe Capital Corporation is a business development company affiliate of the award-winning private credit investment firm and lender, Monroe Capital LLC.

    _______________________
    (1)     Based on an annualized dividend and closing share price as of May 6, 2025.

    Management Commentary

    Adjusted Net Investment Income totaled $4.2 million, or $0.19 per share for the quarter ended March 31, 2025, a decrease from $6.2 million, or $0.29 per share for the quarter ended December 31, 2024. NAV decreased by $0.22 per share, or 2.5%, to $186.9 million or $8.63 per share as of March 31, 2025, compared to $191.8 million or $8.85 per share as of December 31, 2024. The decrease in NAV this quarter was primarily the result of net unrealized losses associated with certain portfolio companies and the first quarter dividend being in excess of the Company’s NII for the quarter. As of March 31, 2025, the Company has an estimated $0.53 per share in undistributed spillover income.

    At quarter end, the Company’s debt-to-equity leverage decreased from 1.53 times debt-to-equity at December 31, 2024 to 1.45 times debt-to-equity at March 31, 2025, as a result of paydowns of the revolving credit facility with proceeds from investment sales and paydowns during the quarter. We continue to focus on managing the Company’s investment portfolio and selectively redeploying capital resulting from future repayments.

    Selected Financial Highlights
    (in thousands, except per share data)

      March 31, 2025   December 31, 2024
    Consolidated Statements of Assets and Liabilities data: (unaudited)   (audited)
    Investments, at fair value $ 430,571   $ 457,048
    Total assets $ 461,518   $ 490,671
    Net assets $ 186,877   $ 191,762
    Net asset value per share $ 8.63   $ 8.85
      For the Quarter Ended
      March 31, 2025   December 31, 2024
    Consolidated Statements of Operations data: (unaudited)
    Net investment income $ 4,086     $ 6,022  
    Adjusted net investment income(2) $ 4,206     $ 6,185  
    Net gain (loss) $ (3,554)     $ (7,737)  
    Net increase (decrease) in net assets resulting from operations $ 532     $ (1,715)  
           
    Per share data:      
    Net investment income $ 0.19     $ 0.28  
    Adjusted net investment income(2) $ 0.19     $ 0.29  
    Net gain (loss) $ (0.16)     $ (0.36)  
    Net increase (decrease) in net assets resulting from operations $ 0.03     $ (0.08)  
     

    _______________________
    (2)     See Non-GAAP Financial Measure – Adjusted Net Investment Income below for a detailed description of this non-GAAP measure and a reconciliation from NII to Adjusted Net Investment Income. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company.

    Portfolio Summary

      March 31, 2025   December 31, 2024
      (unaudited)
    Investments, at fair value $ 430,571     $ 457,048  
    Number of portfolio company investments   85       91  
    Percentage portfolio company investments on non-accrual(3)   3.4%       3.4%  
    Weighted average contractual yield(4)   10.1%       10.2%  
    Weighted average effective yield(4)   9.2%       10.2%  
           
    Asset class percentage at fair value:      
    First lien loans   77.3%       79.1%  
    Junior secured loans   7.5%       6.5%  
    Equity investments   15.2%       14.4%  
     

    _______________________
    (3)     Represents portfolio debt or preferred equity investments on non-accrual status as a percentage of total investments at fair value.
    (4) Portfolio yield is calculated only on the portion of the portfolio that has a contractual coupon and therefore does not account for dividends on equity investments (other than preferred equity investments).

    Financial Review

    The Company’s NII for the quarter ended March 31, 2025 totaled $4.1 million, or $0.19 per share, compared to $6.0 million, or $0.28 per share, for the quarter ended December 31, 2024. Adjusted Net Investment Income was $4.2 million, or $0.19 per share, for the quarter ended March 31, 2025, compared to $6.2 million, or $0.29 per share, for the quarter ended December 31, 2024. Excluding the impact of the incentive fee limitations of $(0.3) million and $(1.2) million for the quarters ended March 31, 2025 and December 31, 2024, respectively, Adjusted Net Investment Income totaled $3.9 million, or $0.18 per share for the quarter ended March 31, 2025, a decrease from $5.0 million, or $0.23 per share for the quarter ended December 31, 2024. Please refer to the Company’s Form 10-Q for additional information on the Company’s incentive fee structure and calculation.

    Total investment income for the quarter ended March 31, 2025 totaled $11.6 million, compared to $14.0 million for the quarter ended December 31, 2024. Total investment income decreased by $2.4 million primarily due to the lower effective yield on the portfolio driven by base rate declines and lower spreads on certain portfolio assets as well as a decrease in average invested assets.

    Total expenses for the quarter ended March 31, 2025 were $7.6 million, compared to $8.0 million for the quarter ended December 31, 2024. Excluding the impact of the incentive fee limitations, total expenses decreased by $1.3 million primarily due to a lower interest rate environment and reduced average debt outstanding.

    Net gain (loss) was $(3.6) million for the quarter ended March 31, 2025, compared to $(7.7) million for the quarter ended December 31, 2024. For the quarter ended March 31, 2025, the net change in unrealized loss on investments was primarily driven by mark-to-market losses from a few specific legacy portfolio companies that continue to be impacted by macroeconomic and idiosyncratic challenges and the Company’s investment in MRCC Senior Loan Fund I, LLC (“SLF”). The decrease in value at SLF was driven by net losses on SLF’s investments, which are loans to traditional upper middle-market borrowers.

    The Company’s average portfolio mark decreased by 1.1%, from 92.2% of amortized cost as of December 31, 2024 to 91.1% of amortized cost as of March 31, 2025.

    Net increase (decrease) in net assets resulting from operations was $0.5 million, or $0.03 per share, for the quarter ended March 31, 2025, compared to $(1.7) million, or $(0.08) per share, for the quarter ended December 31, 2024.

    Liquidity and Capital Resources

    As of March 31, 2025, the Company had $6.5 million in cash and cash equivalents, $141.2 million of debt outstanding on its revolving credit facility and $130.0 million of debt outstanding on its 2026 Notes. As of March 31, 2025, the Company had approximately $113.8 million available for additional borrowings on its revolving credit facility, subject to borrowing base availability.

    MRCC Senior Loan Fund

    SLF is a joint venture with Life Insurance Company of the Southwest (“LSW”), an affiliate of National Life Insurance Company. SLF invests primarily in senior secured loans to middle market companies in the United States. The Company and LSW have each committed $50.0 million of capital to the joint venture. As of March 31, 2025, the Company had made net capital contributions of $42.7 million in SLF with a fair value of $31.9 million, as compared to net capital contributions of $42.7 million in SLF with a fair value of $32.7 million as of December 31, 2024. For the quarter ended March 31, 2025, the Company received dividend income from SLF of $0.9 million, consistent with the $0.9 million received for the quarter ended December 31, 2024. SLF’s underlying investments are loans to middle-market borrowers that are generally larger than the rest of MRCC’s portfolio, which is focused on lower middle-market companies. SLF’s average mark on the underlying investment portfolio decreased during the quarter, from 86.8% of amortized cost as of December 31, 2024, to 82.8% of amortized cost as of March 31, 2025.

    As of March 31, 2025, SLF had total assets of $86.0 million (including investments at fair value of $78.4 million), total liabilities of $22.2 million (including borrowings under the $110.0 million secured revolving credit facility with Capital One, N.A. (the “SLF Credit Facility”) of $21.8 million) and total members’ capital of $63.8 million. As of December 31, 2024, SLF had total assets of $104.2 million (including investments at fair value of $98.0 million), total liabilities of $38.7 million (including borrowings under the SLF Credit Facility of $38.2 million) and total members’ capital of $65.5 million.

    Non-GAAP Financial Measure – Adjusted Net Investment Income

    On a supplemental basis, the Company discloses Adjusted Net Investment Income (including on a per share basis) which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with generally accepted accounting principles of the United States of America (“non-GAAP”). Adjusted Net Investment Income represents NII, excluding the net capital gains incentive fee and income taxes. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. The management agreement with the Company’s advisor provides that a capital gains incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized capital losses for such year. Management believes that Adjusted Net Investment Income is a useful indicator of operations exclusive of any net capital gains incentive fee as NII does not include gains associated with the capital gains incentive fee.

    The following tables provide a reconciliation from NII (the most comparable GAAP measure) to Adjusted Net Investment Income for the periods presented (in thousands, except per share data):

      For the Quarter Ended
      March 31, 2025   December 31, 2024
      Amount   Per Share Amount   Amount   Per Share Amount
      (unaudited)
    Net investment income $ 4,086   $ 0.19   $ 6,022   $ 0.28
    Net capital gains incentive fee   —     —     —     —
    Income taxes, including excise taxes   120     0.00     163     0.01
    Adjusted Net Investment Income $ 4,206   $ 0.19   $ 6,185   $ 0.29
     

    Adjusted Net Investment Income may not be comparable to similar measures presented by other companies, as it is a non-GAAP financial measure that is not based on a comprehensive set of accounting rules or principles and therefore may be defined differently by other companies. In addition, Adjusted Net Investment Income should be considered in addition to, not as a substitute for, or superior to, financial measures determined in accordance with GAAP.

    First Quarter 2025 Financial Results Conference Call

    The Company will host a webcast and conference call to discuss these operating and financial results on Thursday, May 8, 2025 at 11:00 a.m. Eastern Time. The webcast will be hosted on a webcast link located in the Investor Relations section of the Company’s website at http://ir.monroebdc.com/events.cfm. To participate in the conference call, please dial (800) 715-9871 approximately 10 minutes prior to the call. Please reference conference ID # 9094217.

    For those unable to listen to the live broadcast, the webcast will be available for replay on the Company’s website approximately two hours after the event.

    For a more detailed discussion of the financial and other information included in this press release, please also refer to the Company’s Form 10-Q for the quarter ended March 31, 2025, which was filed with the SEC (www.sec.gov) on Wednesday, May 7, 2025.

    MONROE CAPITAL CORPORATION
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
    (in thousands, except per share data)
     
      March 31, 2025   December 31, 2024
      (unaudited)   (audited)
    Assets      
    Investments, at fair value:      
    Non-controlled/non-affiliate company investments $ 315,012     $ 343,835  
    Non-controlled affiliate company investments   83,642       80,483  
    Controlled affiliate company investments   31,917       32,730  
    Total investments, at fair value (amortized cost of: $472,436 and $495,797, respectively)   430,571       457,048  
    Cash and cash equivalents   6,463       9,044  
    Interest and dividend receivable   23,309       23,511  
    Other assets   1,175       1,068  
    Total assets $ 461,518     $ 490,671  
    Liabilities      
    Debt $ 271,200     $ 293,900  
    Less: Unamortized debt issuance costs   (2,108)       (1,925)  
    Total debt, less unamortized debt issuance costs   269,092       291,975  
    Interest payable   1,424       2,903  
    Base management fees payable   1,851       1,965  
    Accounts payable and accrued expenses   2,215       2,066  
    Directors’ fees payable   59       —  
    Total liabilities   274,641       298,909  
    Net Assets      
    Common stock, $0.001 par value, 100,000 shares authorized, 21,666 and 21,666 shares issued and outstanding, respectively $ 22     $ 22  
    Capital in excess of par value   297,712       297,712  
    Accumulated undistributed (overdistributed) earnings   (110,857)       (105,972)  
    Total net assets $ 186,877     $ 191,762  
    Total liabilities and total net assets $ 461,518     $ 490,671  
    Net asset value per share $ 8.63     $ 8.85  
     
    MONROE CAPITAL CORPORATION
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share data)
     
      For the Quarter Ended
      March 31, 2025   December 31, 2024
      (unaudited)
    Investment income:      
    Non-controlled/non-affiliate company investments:      
    Interest income $ 8,029     $ 8,576  
    Payment-in-kind interest income   1,132       1,379  
    Dividend income   72       237  
    Other income   229       310  
    Total investment income from non-controlled/non-affiliate company investments   9,462       10,502  
    Non-controlled affiliate company investments:      
    Interest income   452       1,300  
    Payment-in-kind interest income   767       1,247  
    Dividend income   57       56  
    Other income   —       18  
    Total investment income from non-controlled affiliate company investments   1,276       2,621  
    Controlled affiliate company investments:      
    Dividend income   900       900  
    Total investment income from controlled affiliate company investments   900       900  
    Total investment income   11,638       14,023  
    Operating expenses:      
    Interest and other debt financing expenses   4,677       5,113  
    Base management fees   1,851       1,965  
    Professional fees   263       196  
    Administrative service fees   353       282  
    General and administrative expenses   226       233  
    Directors’ fees   62       49  
    Total operating expenses   7,432       7,838  
    Net investment income before income taxes   4,206       6,185  
    Income taxes, including excise taxes   120       163  
    Net investment income   4,086       6,022  
    Net gain (loss):      
    Net realized gain (loss):      
    Non-controlled/non-affiliate company investments   (438)       283  
    Net realized gain (loss)   (438)       283  
    Net change in unrealized gain (loss):      
    Non-controlled/non-affiliate company investments   (2,574)       (1,139)  
    Non-controlled affiliate company investments   271       (6,694)  
    Controlled affiliate company investments   (813)       (167)  
    Foreign currency and other transactions   —       (20)  
    Net change in unrealized gain (loss)   (3,116)       (8,020)  
    Net gain (loss)   (3,554)       (7,737)  
    Net increase (decrease) in net assets resulting from operations $ 532     $ (1,715)  
    Per common share data:      
    Net investment income per share – basic and diluted $ 0.19     $ 0.28  
    Net increase (decrease) in net assets resulting from operations per share – basic and diluted $ 0.03     $ (0.08)  
    Weighted average common shares outstanding – basic and diluted   21,666       21,666  
     


    Additional Supplemental Information:

    The composition of the Company’s investment income was as follows (in thousands):

      For the Quarter Ended
      March 31, 2025   December 31, 2024
      (unaudited)
    Interest income $ 7,966   $ 9,468
    Payment-in-kind interest income   1,899     2,626
    Dividend income   1,029     1,193
    Other income   229     328
    Prepayment gain (loss)   245     173
    Accretion of discounts and amortization of premiums   270     235
    Total investment income $ 11,638   $ 14,023
     

    The composition of the Company’s interest expense and other debt financing expenses was as follows (in thousands):

      For the Quarter Ended
      March 31, 2025   December 31, 2024
      (unaudited)
    Interest expense – revolving credit facility $ 2,773   $ 3,227
    Interest expense – 2026 Notes   1,555     1,555
    Amortization of debt issuance costs   349     331
    Total interest and other debt financing expenses $ 4,677   $ 5,113
     


    About Monroe Capital Corporation

    Monroe Capital Corporation is a publicly-traded specialty finance company that principally invests in senior, unitranche and junior secured debt and, to a lesser extent, unsecured debt and equity investments in middle-market companies. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation. The Company’s investment activities are managed by its investment adviser, Monroe Capital BDC Advisors, LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended, and an affiliate of Monroe Capital LLC. To learn more about Monroe Capital Corporation, visit www.monroebdc.com.

    About Monroe Capital LLC

    Monroe Capital LLC (including its subsidiaries and affiliates, together “Monroe”) is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, alternative credit solutions, structured credit, real estate and equity. Since 2004, the firm has been successfully providing capital solutions to clients in the U.S. and Canada. Monroe prides itself on being a value-added and user-friendly partner to business owners, management, and both private equity and independent sponsors. Monroe’s platform offers a wide variety of investment products for both institutional and high net worth investors with a focus on generating high quality “alpha” returns irrespective of business or economic cycles. The firm is headquartered in Chicago and has 11 locations throughout the United States, Asia and Australia.

    Monroe has been recognized by both its peers and investors with various awards including Private Debt Investor as the 2024 Lower Mid-Market Lender of the Year, Americas and 2023 Lower Mid-Market Lender of the Decade; Inc.’s 2024 Founder-Friendly Investors List; Global M&A Network as the 2023 Lower Mid-Markets Lender of the Year, U.S.A.; DealCatalyst as the 2022 Best CLO Manager of the Year; Korean Economic Daily as the 2022 Best Performance in Private Debt – Mid Cap; Creditflux as the 2021 Best U.S. Direct Lending Fund; and Pension Bridge as the 2020 Private Credit Strategy of the Year. For more information and important disclaimers, please visit www.monroecap.com.

    Forward-Looking Statements

    This press release may contain certain forward-looking statements. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future. Such statements speak only as of the time when made, and the Company undertakes no obligation to update any such statement now or in the future.

    SOURCE: Monroe Capital Corporation

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    Aggregate Subscriber Value of $1.2 billion in Q1, 23% growth year-over-year

    Contracted Net Value Creation of $164 million, or $0.72 per share, 104% growth year-over-year

    Cash Generation of $56 million in Q1, the fourth consecutive quarter of positive Cash Generation

    Paid down $27 million of recourse debt in Q1 with excess cash

    Reiterating Cash Generation guidance of $200 million to $500 million in 2025

    Customer Additions with Storage grew 46% in Q1 compared to the prior year, as Storage Attachment Rate reached a record 69%

    Contracted Net Earning Assets of $2.6 billion, $11.36 per share, including $605 million of unrestricted cash

    SAN FRANCISCO, May 07, 2025 (GLOBE NEWSWIRE) — Sunrun (Nasdaq: RUN), the nation’s leading provider of clean energy as a subscription service, today announced financial results for the quarter ended March 31, 2025.

    “The first quarter was another strong quarter for Sunrun as we exceeded our volume and Cash Generation targets by significant margins in what is seasonally the slowest quarter of the year. We are focused on delivering the best product for customers, underwriting volumes with strong unit margins, optimizing our routes to market, and driving cost discipline, including leveraging AI for innovation, creating significant operating efficiencies and quality enhancement. This has allowed us to gain market share in recent periods and produce strong operating and financial results,” said Mary Powell, Sunrun’s Chief Executive Officer. “It is a dynamic environment for tax policy and tariffs. Like many companies across the country, we are controlling what we can and are ready to adapt to changes that may occur. Sunrun has faced periods of major change over the last few years, and we used it as an opportunity to become even stronger. We believe the tariff outlook is manageable, and we will still generate meaningful cash this year.”

    “We delivered our fourth consecutive quarter of positive Cash Generation and are reiterating our Cash Generation outlook for 2025,” said Danny Abajian, Sunrun’s Chief Financial Officer. “We have a strong balance sheet with no near-term corporate debt maturities and have paid down recourse parent debt by $214 million over the last four quarters, including a $27 million paydown using excess cash in Q1. As we increase our Cash Generation, we will continue to further pay down parent recourse debt and are committed to a capital allocation strategy beyond this initial de-leveraging period that drives significant shareholder value.”

    First Quarter Updates

    • Storage Attachment Rate Reaches 69%: Customer Additions with storage grew 46% during the quarter compared to the prior-year period. Storage Attachment Rate reached 69% in Q1, up from 50% in the prior-year period. Sunrun has installed more than 173,000 solar and storage systems, representing over 2.8 Gigawatt hours of Networked Storage Capacity.
    • Continued Strong Capital Markets Execution:
      • In March 2025 Sunrun placed a $369 million securitization of residential solar and battery systems. The securitization was placed privately given strong interest from large alternative asset managers in the private credit markets. The securitization was priced at a yield of 6.36%, in-line with the yield of our January securitization. The weighted average spread of the notes was 225 basis points, which is approximately 28 basis points higher than our securitization in January 2025. The higher spread followed overall market movements in credit spreads for similarly rated credit. Similar to prior transactions, Sunrun raised additional capital in a subordinated non-recourse financing, which increased the cumulative advance rate to well above 80% net of all fees, as measured against the initial Contracted Subscriber Value of the portfolio.
      • In January 2025, Sunrun priced a $629 million securitization of residential solar and battery systems. The oversubscribed transaction was structured with three separate classes of A rated notes, only two of which were publicly offered. The weighted average spread of the notes was 197 basis points. Similar to prior transactions, Sunrun raised additional capital in a subordinated non-recourse financing, which increased the cumulative advance rate to well above 80% net of all fees, as measured against the initial Contracted Subscriber Value of the portfolio.
    • Paying Down Recourse Debt: We continue to pay down parent recourse debt. During the first quarter, we repaid $27 million of recourse debt, reducing our borrowings under our Working Capital Facility and repurchasing a small amount of our 2026 Convertible Notes (as of March 31 we have $5.5 million of these notes still outstanding). Since March 31, 2024 we have paid down recourse debt by $214 million, by repurchasing our 2026 Convertible Notes and reducing borrowings under our recourse Working Capital Facility. We have also increased our unrestricted cash balance by $118 million and grown Net Earning Assets by $1.6 billion over this time period. We expect to pay down our recourse debt by $100 million or more in 2025. Aside from the $5.5 million outstanding of our 2026 Convertible Notes, we have no recourse debt maturities until March 2027.
    • Expanding differentiation & innovating with Sunrun Flex: We recently introduced Sunrun Flex, the first solar-plus-storage subscription designed to adapt to households’ changing energy needs. This new offering marks the most significant innovation across the solar industry since Sunrun introduced the residential Power Purchase Agreement in 2007. Flex helps families plan for their growing energy needs, whether it’s a growing household size or adopting a new electric vehicle, by installing a solar system sized above their current energy usage. Customers enjoy a low, predictable monthly minimum payment and only pay for extra energy if and when they use it. Flex households also benefit from battery backup during outages, and the new feature of earning Sunrun Rollover Credits—a first in the solar industry.
    • Improving Grid Stability with Virtual Power Plants: Our CalReady distributed power plant has more than quadrupled in size as the summer heat begins to stress California’s energy grid. More than 56,000 Sunrun customers’ solar-plus-battery systems — totaling approximately 75,000 batteries — will provide critical energy to California’s grid during times of high energy prices, heat waves, and other grid emergency events while simultaneously lowering energy costs for all ratepayers. CalReady’s power output has more than quadrupled and is expected to deliver an average of 250 megawatts per two-hour event, with the ability to reach an instantaneous peak of up to 375 megawatts — enough to power approximately 280,000 homes, equivalent to all of Ventura County, California. Sunrun customers enrolled in CalReady are compensated for sharing their stored solar energy, and Sunrun is paid for dispatching the batteries.

    Key Operating Metrics

    Commencing with the first quarter 2025 reporting, Sunrun has modified how certain key operating metrics are calculated. Please refer to the appendix for the updated definitions and refer to the accompanying presentation posted to Sunrun Investor Relations website for additional information. Prior periods have been recast to reflect the current methodology for comparison purposes.

    In the first quarter of 2025, Subscriber Additions were 23,692, a 7% increase compared to the first quarter of 2024. As of March 31, 2025, Sunrun had 912,878 Subscribers. Subscribers as of March 31, 2025 grew 14% compared to March 31, 2024.

    Storage Capacity Installed was 334 megawatt hours in the first quarter of 2025, a 61% increase from the first quarter of 2024. Solar Capacity Installed was 191 megawatts, an 8% increase from the first quarter of 2024.

    Subscriber Value was $52,206 in the first quarter of 2025, a 15% increase compared to the first quarter of 2024. Contracted Subscriber Value was $48,727 in the first quarter of 2025, a 14% increase compared to the first quarter of 2024. Subscriber Value figures for the first quarter of 2025 reflect a 7.5% discount rate based on observed project-level capital costs, compared to 7.6% in the prior year period. Subscriber Value reflects an average Investment Tax Credit of 43.6% in the first quarter of 2025 compared to 35.2% in the prior year period. Storage Attachment Rate was 69% in the first quarter of 2025 compared to 50% in the prior year period.

    Creation Costs per Subscriber Addition were $41,817 in the first quarter of 2025, a 7% increase compared to the first quarter of 2024.

    Net Subscriber Value was $10,390 in the first quarter of 2025, a 66% increase compared to $6,247 in the first quarter of 2024. Contracted Net Subscriber Value was $6,910 in the first quarter of 2025, a 90% increase compared to $3,641 in the first quarter of 2024.

    Aggregate Subscriber Value was $1.2 billion in the first quarter of 2025, a 23% increase compared to the first quarter of 2024. Aggregate Creation Costs were $991 million in the first quarter of 2025, a 14% increase compared to the first quarter of 2024. Contracted Net Value Creation was $164 million in the first quarter of 2025, an increase of 104% compared to the first quarter of 2024, and representing $0.72 per weighted average basic share outstanding in the period.

    Cash Generation was $56 million in the first quarter of 2025. This result represents the fourth consecutive quarter of positive Cash Generation.

    Contracted Net Earning Assets were $2.6 billion, or $11.36 per share, which included $979 million in Total Cash, as of March 31, 2025.

    Outlook

    Aggregate Subscriber Value is expected to be in a range of $1.3 billion to $1.375 billion in the second quarter of 2025, representing 21% growth compared to the second quarter of 2024 at the midpoint.

    Contracted Net Value Creation is expected to be in a range of $125 million to $200 million in the second quarter of 2025, representing 80% growth compared to the second quarter of 2024 at the midpoint.

    Cash Generation is expected to be in a range of $50 million to $60 million in the second quarter of 2025.

    For the full-year 2025, Aggregate Subscriber Value is expected to be in a range of $5.7 billion to $6.0 billion, representing 14% growth compared to full-year 2024 at the midpoint.

    Contracted Net Value Creation is expected to be in a range of $650 million to $850 million for the full-year 2025, representing 9% growth compared to full-year 2024 at the midpoint.

    Cash Generation is expected to be in a range of $200 million to $500 million for the full-year 2025, unchanged from the company’s prior guidance.

    First Quarter 2025 GAAP Results

    Total revenue was $504.3 million in the first quarter of 2025, up $46.1 million, or 10%, from the first quarter of 2024. Customer agreements and incentives revenue was $402.9 million, an increase of $80.0 million, or 25%, compared to the first quarter of 2024. Solar energy systems and product sales revenue was $101.4 million, a decrease of $33.9 million, or 25%, compared to the first quarter of 2024. The increasing mix of Subscribers results in less upfront revenue recognition, as revenue is recognized over the life of the Customer Agreement, which is typically 20 or 25 years.

    Total cost of revenue was $405.4 million, a decrease of 5% year-over-year. Total operating expenses were $619.2 million, a decrease of 3% year-over-year.

    Net income attributable to common stockholders was $50.0 million, or $0.22 per basic share and $0.20 per diluted share, in the first quarter of 2025.

    Financing Activities

    As of May 7, 2025, closed transactions and executed term sheets provide us with expected tax equity to fund over 375 Megawatts of Solar Energy Capacity Installed for Subscribers beyond what was deployed through March 31, 2025. Sunrun also has $819 million in unused commitments available in its non-recourse senior revolving warehouse loan at the end of Q1 to fund approximately 286 megawatts of projects for Subscribers.

    Conference Call Information

    Sunrun is hosting a conference call for analysts and investors to discuss its first quarter 2025 results and business outlook at 1:30 p.m. Pacific Time today, May 7, 2025. A live audio webcast of the conference call along with supplemental financial information will be accessible via the “Investor Relations” section of Sunrun’s website at https://investors.sunrun.com. The conference call can also be accessed live over the phone by dialing (877) 407-5989 (toll free) or (201) 689-8434 (toll). An audio replay will be available following the call on the Sunrun Investor Relations website for approximately one month.

    About Sunrun

    Sunrun Inc. (Nasdaq: RUN) revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to locally-generated, renewable energy. Today, Sunrun is the nation’s leading provider of clean energy as a subscription service, offering residential solar and storage with no upfront costs. Sunrun’s innovative products and solutions can connect homes to the cleanest energy on earth, providing them with energy security, predictability, and peace of mind. Sunrun also manages energy services that benefit communities, utilities, and the electric grid while enhancing customer value. Discover more at www.sunrun.com

    Forward Looking Statements

    This communication contains forward-looking statements related to Sunrun (the “Company”) within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements related to: the Company’s financial and operating guidance and expectations; the Company’s business plan, trajectory, expectations, market leadership, competitive advantages, operational and financial results and metrics (and the assumptions related to the calculation of such metrics); the Company’s momentum in its business strategies including expectations regarding market share, total addressable market, growth in certain geographies, customer value proposition, market penetration, growth of certain divisions, financing activities, financing capacity, product mix, and ability to manage cash flow and liquidity; the Company’s introduction of new products, including Sunrun Flex; the growth of the solar industry; the Company’s financing activities and expectations to refinance, amend, and/or extend any financing facilities; trends or potential trends within the solar industry, our business, customer base, and market; the Company’s ability to derive value from the anticipated benefits of partnerships, new technologies, and pilot programs, including contract renewal and repowering programs; anticipated demand, market acceptance, and market adoption of the Company’s offerings, including new products, services, and technologies; the Company’s strategy to be a margin-focused, multi-product, customer-oriented company; the ability to increase margins based on a shift in product focus; expectations regarding the growth of home electrification, electric vehicles, virtual power plants, and distributed energy resources; the Company’s ability to manage suppliers, inventory, and workforce; supply chains and regulatory impacts affecting supply chains including reliance on specific countries for critical components; the Company’s leadership team and talent development; the legislative and regulatory environment of the solar industry and the potential impacts of proposed, amended, and newly adopted legislation and regulation on the solar industry and our business, including federal and state-level solar incentive programs (such as the Investment Tax Credit), net metering policies, and utility rate structures; the ongoing expectations regarding the Company’s storage and energy services businesses and anticipated emissions reductions due to utilization of the Company’s solar energy systems; and factors outside of the Company’s control such as macroeconomic trends, bank failures, public health emergencies, natural disasters, acts of war, terrorism, geopolitical conflict, or armed conflict / invasion, and the impacts of climate change. These statements are not guarantees of future performance; they reflect the Company’s current views with respect to future events and are based on assumptions and estimates and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. The risks and uncertainties that could cause the Company’s results to differ materially from those expressed or implied by such forward-looking statements include: the Company’s continued ability to manage costs and compete effectively; the availability of additional financing on acceptable terms; worldwide economic conditions, including slow or negative growth rates and inflation; volatile or rising interest rates; changes in policies and regulations, including net metering, interconnection limits, and fixed fees, or caps and licensing restrictions and the impact of these changes on the solar industry and our business; the Company’s ability to attract and retain the Company’s business partners; supply chain risks and associated costs, including reliance on specific countries for critical components, tariff and trade policy impacts, and raw material availability for solar panels and batteries; realizing the anticipated benefits of past or future investments, partnerships, strategic transactions, or acquisitions, and integrating those acquisitions; the Company’s leadership team and ability to attract and retain key employees; changes in the retail prices of traditional utility generated electricity; the availability of rebates, tax credits and other incentives; the availability of solar panels, batteries, and other components and raw materials; the Company’s business plan and the Company’s ability to effectively manage the Company’s growth and labor constraints; the Company’s ability to meet the covenants in the Company’s investment funds and debt facilities; factors impacting the home electrification and solar industry generally, and such other risks and uncertainties identified in the reports that we file with the U.S. Securities and Exchange Commission from time to time. All forward-looking statements used herein are based on information available to us as of the date hereof, and we assume no obligation to update publicly these forward-looking statements for any reason, except as required by law.

    Citations to industry and market statistics used herein may be found in our Investor Presentation, available via the “Investor Relations” section of Sunrun’s website at https://investors.sunrun.com.

    Consolidated Balance Sheets
    (In Thousands)
        March 31, 2025   December 31, 2024
             
    Assets        
    Current assets:        
    Cash   $ 604,874   $ 574,956
    Restricted cash     373,881     372,312
    Accounts receivable, net     172,121     170,706
    Inventories     414,401     402,083
    Prepaid expenses and other current assets     101,936     202,579
    Total current assets     1,667,213     1,722,636
    Restricted cash     148     148
    Solar energy systems, net     15,497,538     15,032,115
    Property and equipment, net     109,132     121,239
    Other assets     3,103,824     3,021,746
    Total assets   $ 20,377,855   $ 19,897,884
    Liabilities and total equity        
    Current liabilities:        
    Accounts payable   $ 268,908   $ 354,214
    Distributions payable to noncontrolling interests and redeemable noncontrolling interests     37,816     41,464
    Accrued expenses and other liabilities     537,042     543,752
    Deferred revenue, current portion     133,878     129,442
    Deferred grants, current portion     8,389     7,900
    Finance lease obligations, current portion     25,526     26,045
    Non-recourse debt, current portion     250,422     231,665
    Total current liabilities     1,261,981     1,334,482
    Deferred revenue, net of current portion     1,238,468     1,208,905
    Deferred grants, net of current portion     193,009     196,535
    Finance lease obligations, net of current portion     58,025     66,139
    Convertible senior notes     472,226     479,420
    Line of credit     358,493     384,226
    Non-recourse debt, net of current portion     12,479,475     11,806,181
    Other liabilities     120,973     119,846
    Deferred tax liabilities     97,684     137,940
    Total liabilities     16,280,334     15,733,674
    Redeemable noncontrolling interests     657,772     624,159
    Total stockholders’ equity     2,615,402     2,554,207
    Noncontrolling interests     824,347     985,844
    Total equity     3,439,749     3,540,051
    Total liabilities, redeemable noncontrolling interests and total equity   $ 20,377,855   $ 19,897,884
    Consolidated Statements of Operations
    (In Thousands, Except Per Share Amounts)
        Three Months Ended March 31,
         2025     2024 
    Revenue:        
    Customer agreements and incentives   $ 402,920     $ 322,967  
    Solar energy systems and product sales     101,351       135,221  
    Total revenue     504,271       458,188  
    Operating expenses:        
    Cost of customer agreements and incentives     308,629       269,534  
    Cost of solar energy systems and product sales     96,798       156,159  
    Sales and marketing     145,990       152,264  
    Research and development     9,979       12,087  
    General and administrative     57,763       51,266  
    Total operating expenses     619,159       641,310  
    Loss from operations     (114,888 )     (183,122 )
    Interest expense, net     (227,434 )     (192,159 )
    Other (expense) income, net     (45,399 )     89,930  
    Loss before income taxes     (387,721 )     (285,351 )
    Income tax benefit     (110,550 )     (2,201 )
    Net loss     (277,171 )     (283,150 )
    Net loss attributable to noncontrolling interests and redeemable noncontrolling interests     (327,182 )     (195,332 )
    Net income (loss) attributable to common stockholders   $ 50,011     $ (87,818 )
    Net income (loss) per share attributable to common stockholders        
    Basic   $ 0.22     $ (0.40 )
    Diluted   $ 0.20     $ (0.40 )
    Weighted average shares used to compute net income (loss) per share attributable to common stockholders        
    Basic     226,406       219,882  
    Diluted     257,911       219,882  
    Consolidated Statements of Cash Flows
    (In Thousands)
        Three Months Ended March 31,
         2025     2024 
    Operating activities:        
    Net loss   $ (277,171 )   $ (283,150 )
    Adjustments to reconcile net loss to net cash used in operating activities:        
    Depreciation and amortization, net of amortization of deferred grants     169,890       150,520  
    Deferred income taxes     (110,550 )     (2,202 )
    Stock-based compensation expense     25,005       28,869  
    Interest on pass-through financing obligations     —       4,756  
    Reduction in pass-through financing obligations     —       (9,335 )
    Unrealized loss (gain) on derivatives     45,070       (55,103 )
    Other noncash items     61,499       14,639  
    Changes in operating assets and liabilities:        
    Accounts receivable     (6,906 )     (1,371 )
    Inventories     (12,318 )     47,753  
    Prepaid expenses and other assets     (45,761 )     (135,678 )
    Accounts payable     (15,618 )     59,641  
    Accrued expenses and other liabilities     27,910       3,395  
    Deferred revenue     34,744       34,173  
    Net cash used in operating activities     (104,206 )     (143,093 )
    Investing activities:        
    Payments for the costs of solar energy systems     (654,802 )     (538,975 )
    Purchases of property and equipment, net     (219 )     3,531  
    Net cash used in investing activities     (655,021 )     (535,444 )
    Financing activities:        
    Repayment of trade receivable financing     (24,742 )     —  
    Proceeds from line of credit     148,824       139,805  
    Repayment of line of credit     (174,557 )     (292,305 )
    Proceeds from issuance of convertible senior notes, net of capped call transaction     —       444,822  
    Repurchase of convertible senior notes     (2,124 )     (173,715 )
    Proceeds from issuance of non-recourse debt     1,520,629       770,106  
    Repayment of non-recourse debt     (838,483 )     (431,532 )
    Payment of debt fees     (28,018 )     (47,779 )
    Proceeds from pass-through financing and other obligations, net     —       1,808  
    Early repayment of pass-through financing obligation     —       (20,000 )
    Payment of finance lease obligations     (6,483 )     (6,732 )
    Contributions received from noncontrolling interests and redeemable noncontrolling interests     255,900       164,337  
    Distributions paid to noncontrolling interests and redeemable noncontrolling interests     (60,253 )     (74,834 )
    Acquisition of noncontrolling interests     —       (1,159 )
    Proceeds from transfer of investment tax credits     624,776       106,529  
    Payments to redeemable noncontrolling interests and noncontrolling interests of investment tax credits     (624,776 )     (106,529 )
    Net proceeds related to stock-based award activities     21       1,056  
    Net cash provided by financing activities     790,714       473,878  
    Net change in cash and restricted cash     31,487       (204,659 )
    Cash and restricted cash, beginning of period     947,416       987,838  
    Cash and restricted cash, end of period   $ 978,903     $ 783,179  


    Key Operating and Financial Metrics

    The following operating metrics are used by management to evaluate the performance of the business. Management believes these metrics, when taken together with other information contained in our filings with the SEC and within this press release, provide investors with helpful information to determine the economic performance of the business activities in a period that would otherwise not be observable from historic GAAP measures. Management believes that it is helpful to investors to evaluate the present value of cash flows expected from subscribers over the full expected relationship with such subscribers (“Subscriber Value”, more fully defined in the definitions appendix below) in comparison to the costs associated with adding these customers, regardless of whether or not the costs are expensed or capitalized in the period (“Creation Cost”, more fully defined in the definitions appendix below). The Company also believes that Subscriber Value, Aggregate Subscriber Value, Creation Costs, Aggregate Creation Costs, Net Subscriber Value, Contracted Net Subscriber Value, Upfront Net Subscriber Value, Net Value Creation, Contracted Net Value Creation, and Upfront Value Creation are useful metrics for investors because they present an unlevered and levered view of all of the costs associated with new customers in a period compared to the expected future cash flows from these customers over a 30-year period, based on contracted pricing terms with its customers, which is not observable in any current or historic GAAP-derived metric. Management believes it is useful for investors to also evaluate the future expected cash flows from all customers that have been deployed through the respective measurement date, less estimated costs to maintain such systems and estimated distributions to tax equity partners in consolidated joint venture partnership flip structures, and distributions to project equity investors (“Gross Earning Assets”, more fully defined in the definitions appendix below). The Company also believes Gross Earning Assets is useful for management and investors because it represents the remaining future expected cash flows from existing customers, which is not a current or historic GAAP-derived measure.

    Various assumptions are made when calculating these metrics. Subscriber Value metrics are calculated using a discount rate based on the observed project-level capital costs in the period. Gross Earning Assets utilize a 6% rate to discount future cash flows to the present period. Furthermore, these metrics assume that Subscribers renew after the initial contract period at a rate equal to 90% of the rate in effect at the end of the initial contract term. For Customer Agreements with 25-year initial contract terms, a 5-year renewal period is assumed. For a 20-year initial contract term, a 10-year renewal period is assumed. In all instances, we assume a 30-year customer relationship, although the customer may renew for additional years, or purchase the system. Estimated cost of servicing assets has been deducted and is estimated based on the service agreements underlying each fund.

    KEY OPERATING METRICS
    Unit Economics in Period 1Q24 2Q24 3Q24 4Q24 1Q25
    $ per Subscriber Addition, unless otherwise noted          
      Subscriber Additions in period   22,058     24,984     30,348     30,709     23,692  
      Subscriber Value $45,477   $44,291   $47,335   $50,998   $52,206  
      Discount rate (observed project-level capital costs)   7.6%     7.5%     7.1%     7.3%     7.5%  
      Contracted Subscriber Value $42,871   $41,872   $44,551   $48,273   $48,727  
      x Advance Rate on Contracted Subscriber Value (estimated)   86.3%     86.3%     87.2%     85.9%     86.9%  
      = Upfront Proceeds (estimated) $37,001   $36,117   $38,869   $41,486   $42,339  
      – Creation Costs $(39,230)   $(38,258)   $(37,756)   $(38,071)   $(41,817)  
      = Upfront Net Subscriber Value $(2,229)   $(2,140)   $1,113   $3,415   $523  
      Upfront Net Subscriber Value margin %   (5.2)%     (5.1)%     2.5%     7.1%     1.1%  
    Aggregate Gross, Net & Upfront Value Creation in Period 1Q24 2Q24 3Q24 4Q24 1Q25
    $ millions, unless otherwise noted          
      Aggregate Subscriber Value $1,003   $1,107   $1,437   $1,566   $1,237  
      Aggregate Contracted Subscriber Value $946   $1,046   $1,352   $1,482   $1,154  
      Aggregate Upfront Proceeds (estimated) $816   $902   $1,180   $1,274   $1,003  
      Less Aggregate Creation Costs $(865)   $(956)   $(1,146)   $(1,169)   $(991)  
      Net Value Creation $138   $151   $291   $397   $246  
      Contracted Net Value Creation $80   $90   $206   $313   $164  
      Upfront Net Value Creation $(49)   $(53)   $34   $105   $12  
      Cash Generation $(311)   $217   $2   $34   $56  
      Net Value Creation per share $0.63   $0.68   $1.30   $1.77   $1.09  
      Contracted Net Value Creation per share $0.37   $0.41   $0.92   $1.39   $0.72  
      Upfront Net Value Creation per share $(0.22)   $(0.24)   $0.15   $0.47   $0.05  
    Volume Additions in Period 1Q24 2Q24 3Q24 4Q24 1Q25
      Storage Capacity Installed (MWhrs)   207.2     264.5     336.3     392.0     333.7  
      Solar Capacity Installed (MWs)   177.0     192.3     229.7     242.4     190.9  
      Solar Capacity Installed with Storage (MWs)   81.3     94.9     127.0     142.5     126.7  
      Solar Capacity Installed without Storage (MWs)   95.7     97.4     102.7     100.0     64.2  
      Customer Additions   24,038     26,687     31,910     32,932     25,428  
      Customer Additions with Storage   11,970     14,398     18,988     20,405     17,501  
      Customer Additions without Storage   12,068     12,289     12,922     12,527     7,927  
      Storage Attachment Rate   50%     54%     60%     62%     69%  
      Subscriber Additions (included within Customer Additions)   22,058     24,984     30,348     30,709     23,692  
      Subscriber Additions as % of Customer Additions   92%     94%     95%     93%     93%  
    Customer Base Value & Energy Capacity at End of Period 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025
      Net Earning Assets ($ millions) $5,247   $5,675   $6,231   $6,766   $6,825  
      Net Earning Assets per share $23.78   $25.42   $27.81   $29.99   $30.02  
      Contracted Net Earning Assets ($ millions) $1,754   $2,035   $2,416   $2,723   $2,583  
      Contracted Net Earning Assets per share $7.95   $9.11   $10.78   $12.07   $11.36  
      Customers   957,313     984,000     1,015,910     1,048,842     1,074,270  
      Subscribers (included within Customers)   803,145     828,129     858,477     889,186     912,878  
      Networked Storage Capacity (MWhrs)   1,532     1,796     2,133     2,525     2,858  
      Networked Solar Capacity (MWs)   6,866     7,058     7,288     7,531     7,721  
    Basic Shares Outstanding 1Q24 2Q24 3Q24 4Q24 1Q25
      Basic shares outstanding at end of period (in millions)   220.7     223.3     224.1     225.7     227.3  
      Weighted average basic shares outstanding in period (in millions)   219.9     222.5     223.7     224.9     226.4  
                                     

    Figures presented above may not sum due to rounding. In-period per share figures are calculated using the weighted average basic shares outstanding while end of period per share figures are calculated using the corresponding basic shares outstanding as of the measurement date. For adjustments related to Subscriber Value and Creation Costs, please see the supplemental materials available on the Sunrun Investor Relations website at investors.sunrun.com.

    Glossary of Terms

    Definitions for Volume-related Terms

    Deployments represent solar or storage systems, whether sold directly to customers or subject to executed Customer Agreements (i) for which we have confirmation that the systems are installed, subject to final inspection, or (ii) in the case of certain system installations by our partners, for which we have accrued at least 80% of the expected project cost (inclusive of acquisitions of installed systems). A portion of customers have subsequently entered into Customer Agreements to obtain, or have directly purchased, additional solar or storage systems at the same host customer site, and since these represent separate assets, they are considered separate Deployments.

    Customer Agreements refer to, collectively, solar or storage power purchase agreements and leases.

    Subscribers represent customers subject to Customer Agreements for solar or storage systems that have been recognized as Deployments, whether or not they continue to be active.

    Purchase Customers represent customers who purchased, whether outright or with proceeds from third-party loans, solar or storage systems that have been recognized as Deployments.

    Customers represent aggregate Subscribers and Purchase Customers.

    Subscriber Additions represent the number of Subscribers added in a period.

    Purchase Customer Additions represent the number of Purchase Customers added in a period.

    Customer Additions represent Subscriber Additions plus Purchase Customer Additions.

    Solar Capacity Installed represents the aggregate megawatt production capacity of solar energy systems that were recognized as Deployments in a period.

    Storage Capacity Installed represents the aggregate megawatt hour capacity of storage systems that were recognized as Deployments in a period.

    Networked Solar Capacity represents the cumulative Solar Capacity Installed from the company’s inception through the measurement date.

    Networked Storage Capacity represents the cumulative Storage Capacity Installed from the company’s inception through the measurement date.

    Storage Attachment Rate represents Customer Additions with storage divided by total Customer Additions.

    Definitions for Unit-based and Aggregate Value, Costs and Margin Terms

    Subscriber Value represents Contracted Subscriber Value plus Non-contracted or Upside Subscriber Value.

    Contracted Subscriber Value represents the per Subscriber present value of estimated upfront and future Contracted Cash Flows from Subscriber Additions in a period, discounted at the observed cost of capital in the period.

    Non-contracted or Upside Subscriber Value represents the per Subscriber present value of estimated future Non-contracted or Upside Cash Flows from Subscribers Additions in a period, discounted at the observed cost of capital in the period.

    Contracted Cash Flows represent (x) (1) scheduled payments from Subscribers during the initial terms of the Customer Agreements, (2) net proceeds from tax equity partners, (3) payments from government and utility incentive and rebate programs, (4) contracted net cash flows from grid services programs with utilities or grid operators, and (5) contracted or defined (i.e., with fixed pricing) cash flows from the sale of renewable energy credits, less (y) (1) estimated operating and maintenance costs to service the systems and replace equipment over the initial terms of the Customer Agreements, consistent with estimates by independent engineers, (2) distributions to tax equity partners in consolidated joint venture partnership flip structures, and (3) distributions to any project equity investors. For Flex Customer Agreements that allow variable billings based on the amount of electricity consumed by the Subscriber, only the minimum contracted payment is included in Contracted Cash Flows.

    Non-contracted or Upside Cash Flows represent (1) net cash flows realized from either the purchase of systems by Subscribers at the end of the Customer Agreement initial terms or renewals of Customer Agreements beyond the initial terms, estimated in both cases to have equivalent value, assuming only a 30-year relationship and a contract renewal rate equal to 90% of each Subscriber’s contractual rate in effect at the end of the initial contract term, (2) non-contracted net cash flows from grid service programs with utilities and grid operators, and (3) non-contracted net cash flows from the sale of renewable energy credits. After the initial contract term, our Customer Agreements typically automatically renew on an annual basis and the rate is initially set at up to a 10% discount to then-prevailing utility power prices. For Flex Customer Agreements that allow variable billings based on the amount of electricity consumed by the Subscriber, an assumption is made that each Subscriber’s electricity consumption increases by approximately 2% per year through the end of the initial term of the Customer Agreement and into the renewal period, resulting in billings in excess of the minimum contracted amount (which minimums are included in Contracted Cash Flows).

    Aggregate Creation Costs represent the sum of certain operating expenses and capital expenditures incurred in a period. The following items are included from the cash flow statement: (i) payments for the costs of solar energy systems, plus (ii) purchases of property and equipment, less (iii) net depreciation and amortization, less (iv) stock based compensation expense. The following items are included from the income statement: (i) cost of customer agreements and incentives revenue, adjusted to exclude fleet servicing costs and non-cash net impairment of solar energy systems, plus (ii) sales and marketing expenses, adjusted to exclude amortization of cost to obtain customer contracts (which is the amortization of previously capitalized sales commissions), plus (iii) general and administrative expenses, plus (iv) research and development expenses. In addition, gross additions to capitalized costs to obtain contracts (i.e., sales commissions), which are presented on the balance sheet within Other Assets, are included. Because the sales, marketing, general and administrative costs are for activities related to the entire business, including solar energy system and product sales, the gross margin on solar energy system and product sales is reflected as a contra cost. Costs associated with certain restructuring activities and one-time items are identified and excluded.

    Creation Costs represent Aggregate Creation Costs divided by Subscriber Additions.

    Net Subscriber Value represents Subscriber Value less Creation Costs.

    Contracted Net Subscriber Value represents Contracted Subscriber Value less Creation Costs.

    Upfront Net Subscriber Value represents Contracted Subscriber Value multiplied by Advance Rate less Creation Costs.

    Advance Rate or Advance Rate on Contracted Subscriber Value represents the company’s estimated upfront proceeds, expressed as a percentage of Contracted Subscriber Value or Aggregate Contracted Subscriber Value, from project-level capital and other upfront cash flows, based on market terms and observed cost of capital in a period.

    Aggregate Subscriber Value represents Subscriber Value multiplied by Subscriber Additions.

    Aggregate Contracted Subscriber Value represents Contracted Subscriber Value multiplied by Subscriber Additions.

    Aggregate Upfront Proceeds represent Aggregate Contracted Subscriber Value multiplied by Advance Rate. Actual project financing transaction timing for portfolios of Subscribers may occur in a period different from the period in which Subscribers are recognized, and may be executed at different terms. As such, Aggregate Upfront Proceeds are an estimate based on capital markets conditions present during each period and may differ from ultimate Proceeds Realized in respect of such Subscribers.

    Proceeds Realized represents cash flows received from non-recourse financing partners in addition to upfront customer prepayments, incentives and rebates. It is calculated as the proceeds from non-controlling interests on the cash flow statement, plus the net proceeds from non-recourse debt (excluding normal non-recourse debt amortization for existing debt, as such debt is serviced by cash flows from existing solar and storage assets), plus the gross additions to deferred revenue which represents customer payments for prepaid Customer Agreements along with local rebates and incentive programs.

    Net Value Creation represents Aggregate Subscriber Value less Aggregate Creation Costs.

    Contracted Net Value Creation represents Aggregate Contracted Subscriber Value less Aggregate Creation Costs.

    Upfront Net Value Creation represents Aggregate Upfront Proceeds less Aggregate Creation Costs.

    Cash Generation is calculated using the change in our unrestricted cash balance from our consolidated balance sheet, less net proceeds (or plus net repayments) from all recourse debt (inclusive of convertible debt), and less any primary equity issuances or net proceeds derived from employee stock award activity (or plus any stock buybacks or dividends paid to common stockholders) as presented on the Company’s consolidated statement of cash flows. The Company expects to continue to raise tax equity and asset-level non-recourse debt to fund growth, and as such, these sources of cash are included in the definition of Cash Generation. Cash Generation also excludes long-term asset or business divestitures and equity investments in external non-consolidated businesses (or less dividends or distributions received in connection with such equity investments). Restricted cash in a reserve account with a balance equal to the amount outstanding of 2026 convertible notes is considered unrestricted cash for the purposes of calculating Cash Generation.

    Definitions for Gross and Net Value from Existing Customer Base Terms

    Gross Earning Assets is calculated as Contracted Gross Earning Assets plus Non-contracted or Upside Gross Earning Assets.

    Contracted Gross Earning Assets represents, as of any measurement date, the present value of estimated remaining Contracted Cash Flows that we expect to receive in future periods in relation to Subscribers as of the measurement date, discounted at 6%.

    Non-contracted or Upside Gross Earning Assets represents, as of any measurement date, the present value of estimated Non-contracted or Upside Cash Flows that we expect to receive in future periods in relation to Subscribers as of the measurement date, discounted at 6%.

    Net Earning Assets represents Gross Earning Assets, plus Total Cash, less adjusted debt and lease pass-through financing obligations, as of the measurement date. Debt is adjusted to exclude a pro-rata share of non-recourse debt associated with funds with project equity structures along with debt associated with the company’s ITC safe harboring equipment inventory facility. Because estimated cash distributions to our project equity partners are deducted from Gross Earning Assets, a proportional share of the corresponding project level non-recourse debt is deducted from Net Earning Assets, as such debt would be serviced from cash flows already excluded from Gross Earning Assets.

    Contracted Net Earning Assets represents Net Earning Assets less Non-contracted or Upside Gross Earning Assets.

    Non-contracted or Upside Net Earning Assets represents Net Earning Assets less Contracted Net Earning Assets.

    Total Cash represents the total of the restricted cash balance and unrestricted cash balance from our consolidated balance sheet.

    Other Terms

    Annual Recurring Revenue represents revenue arising from Customer Agreements over the following twelve months for Subscribers that have met initial revenue recognition criteria as of the measurement date.

    Average Contract Life Remaining represents the average number of years remaining in the initial term of Customer Agreements for Subscribers that have met revenue recognition criteria as of the measurement date.

    Households Served in Low-Income Multifamily Properties represent the number of individual rental units served in low-income multi-family properties from shared solar energy systems deployed by Sunrun. Households are counted when the solar energy system has interconnected with the grid, which may differ from Deployment recognition criteria.

    Positive Environmental Impact from Customers represents the estimated reduction in carbon emissions as a result of energy produced from our Networked Solar Capacity over the trailing twelve months. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits.

    Positive Expected Lifetime Environmental Impact from Customer Additions represents the estimated reduction in carbon emissions over thirty years as a result of energy produced from solar energy systems that were recognized as Deployments in a period. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis, leveraging our estimated production figures for such systems, which degrade over time, and is extrapolated for 30 years. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits.

    Per Share Operational Metrics

    The Company presents certain operating metrics on a per share basis to aid investors in understanding the scale of such operational metrics in relation to the outstanding basic share count in each period. These metrics are operational in nature and not a financial metric. These metrics are not a substitute for GAAP financials, liquidity related measures, or any financial performance metrics.

    Net Value Creation, Contracted Net Value Creation, and Upfront Net Value Creation are also presented on a per share basis, calculated by dividing each metric by the weighted average basic shares outstanding for each period, as presented on the Company’s Consolidated Statements of Operations.

    Net Earning Assets and Contracted Net Earning Assets are also presented on a per share basis, calculated by dividing each metric by the basic shares outstanding as of the end of each period, as presented on the Company’s Consolidated Balance Sheets.

    Investor & Analyst Contacts:

    Patrick Jobin
    SVP, Deputy CFO & Investor Relations Officer
    investors@sunrun.com

    Bronson Fleig
    Director, Finance & Investor Relations
    investors@sunrun.com

    Media Contact:

    Wyatt Semanek
    Director, Corporate Communications
    press@sunrun.com

    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: Remitly Reports First Quarter 2025 Results Above Outlook and Raises Full Year 2025 Outlook

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

    For the second quarter of 2025, Remitly currently expects:

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

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

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

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

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

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

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

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

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

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

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

    Contacts

    Media Inquiries:
    press@remitly.com

    Investor Relations:
    Stephen Shulstein
    stephens@remitly.com

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

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

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

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

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

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


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

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

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

    About LiveRamp

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

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

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

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

    The MIL Network –