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  • MIL-OSI: Trupanion Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, May 01, 2025 (GLOBE NEWSWIRE) — Trupanion, Inc. (Nasdaq: TRUP), a leading provider of medical insurance for cats and dogs, today announced financial results for the first quarter ended March 31, 2025.

    “Q1 was a strong start to the year, with performance ahead of plan across key metrics,” said Margi Tooth, Chief Executive Officer and President of Trupanion. “We saw early momentum in both retention and pet acquisition, and with expanded margins in our subscription business, we’re well-positioned to continue to invest in growth.”

    First Quarter 2025 Financial and Business Highlights

    • Total revenue was $342.0 million, an increase of 12% compared to the first quarter of 2024.
    • Total enrolled pets (including pets from our other business segment) was 1,667,637 at March 31, 2025, a decrease of 2% over March 31, 2024.
    • Subscription business revenue was $233.1 million, an increase of 16% compared to the first quarter of 2024.
    • Subscription enrolled pets was 1,052,845 at March 31, 2025, an increase of 5% over March 31, 2024.
    • Net loss was $(1.5) million, or $(0.03) per basic and diluted share, compared to a net loss of $(6.9) million, or $(0.16) per basic and diluted share, in the first quarter of 2024.
    • Adjusted EBITDA was $12.2 million, compared to adjusted EBITDA of $4.8 million in the first quarter of 2024.
    • Operating cash flow was $16.0 million and free cash flow was $14.0 million in the first quarter of 2025. This compared to operating cash flow of $2.4 million and free cash flow of $(0.6) million in the first quarter of 2024.
    • At March 31, 2025, the Company held $321.8 million in cash and short-term investments, including $48.8 million held outside the insurance entities, with an additional $15.0 million available under its credit facility.

    Conference Call
    Trupanion’s management will host a conference call today to review its first quarter 2025 results. The call is scheduled to begin shortly after 1:30 p.m. PT/ 4:30 p.m. ET. A live webcast will be accessible through the Investor Relations section of Trupanion’s website at https://investors.trupanion.com/ and will be archived online for 3 months upon completion of the conference call. Participants can access the conference call by dialing 1-866-250-8117 (United States) or 1-412-317-6011 (International). A telephonic replay of the call will also be available after the completion of the call, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 10197710.

    About Trupanion
    Trupanion is a leader in medical insurance for cats and dogs throughout the United States, Canada, and certain countries in Continental Europe with over 1,000,000 pets currently enrolled. For over two decades, Trupanion has given pet owners peace of mind so they can focus on their pet’s recovery, not financial stress. Trupanion is committed to providing pet parents with the highest value in pet medical insurance with unlimited payouts for the life of their pets. With its patented process, Trupanion is the only North American provider with the technology to pay veterinarians directly in seconds at the time of checkout. Trupanion is listed on NASDAQ under the symbol “TRUP”. The company was founded in 2000 and is headquartered in Seattle, WA. Trupanion policies are issued, in the United States, by its wholly-owned insurance entity American Pet Insurance Company and, in Canada, by Accelerant Insurance Company of Canada. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. Policies are sold and administered in Canada by Canada Pet Health Insurance Services, Inc. dba Trupanion 309-1277 Lynn Valley Road, North Vancouver, BC V7J 0A2 and in the United States by Trupanion Managers USA, Inc. (CA license No. 0G22803, NPN 9588590). Canada Pet Health Insurance Services, Inc. is a registered damage insurance agency and claims adjuster in Quebec #603927. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. For more information, please visit trupanion.com.

    Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Trupanion, including, but not limited to, its expectations regarding its ability to continue to grow its enrollments and revenue, and otherwise execute its business plan. These forward-looking statements are based upon the current expectations and beliefs of Trupanion’s management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release are based on information available to Trupanion as of the date hereof, and Trupanion has no obligation to update these forward-looking statements.

    In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods; the ability to keep growing our membership base and revenue; the accuracy of assumptions used in determining appropriate member acquisition expenditures; the severity and frequency of claims; the ability to maintain high retention rates; the accuracy of assumptions used in pricing medical plan subscriptions and the ability to accurately estimate the impact of new products or offerings on claims frequency; actual claims expense exceeding estimates; regulatory and other constraints on the ability to institute, or the decision to otherwise delay, pricing modifications in response to changes in actual or estimated claims expense; the effectiveness and statutory or regulatory compliance of our Territory Partner model and of our Territory Partners, veterinarians and other third parties in recommending medical plan subscriptions to potential members; the ability to retain existing Territory Partners and increase the number of Territory Partners and active hospitals; compliance by us and those referring us members with laws and regulations that apply to our business, including the sale of a pet medical plan; the ability to maintain the security of our data; fluctuations in the Canadian currency exchange rate; the ability to protect our proprietary and member information; the ability to maintain our culture and team; the ability to maintain the requisite amount of risk-based capital; our ability to implement and maintain effective controls, including to remediate material weaknesses in internal controls over financial reporting; the ability to protect and enforce Trupanion’s intellectual property rights; the ability to successfully implement our alliance with Aflac; the ability to continue key contractual relationships with third parties; third-party claims including litigation and regulatory actions; the ability to recognize benefits from investments in new solutions and enhancements to Trupanion’s technology platform and website; our ability to retain key personnel; and deliberations and determinations by the Trupanion board based on the future performance of the company or otherwise.

    For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the Securities and Exchange Commission (SEC), including but not limited to, Trupanion’s Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequently filed reports on Forms 10-Q, 10-K and 8-K. All documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system at https://www.sec.gov or the Investor Relations section of Trupanion’s website at https://investors.trupanion.com.

    Non-GAAP Financial Measures
    Trupanion’s stated results may include certain non-GAAP financial measures. These non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry as other companies in its industry may calculate or use non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Trupanion’s reported financial results. The presentation and utilization of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Trupanion urges its investors to review the reconciliation of its non-GAAP financial measures to the most directly comparable GAAP financial measures in its consolidated financial statements, and not to rely on any single financial or operating measure to evaluate its business. These reconciliations are included below and on Trupanion’s Investor Relations website.

    Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Trupanion believes that providing various non-GAAP financial measures that exclude stock-based compensation expense and depreciation and amortization expense allows for more meaningful comparisons between its operating results from period to period. Trupanion offsets new pet acquisition expense with sign-up fee revenue in the calculation of net acquisition cost because it collects sign-up fee revenue from new members at the time of enrollment and considers it to be an offset to a portion of Trupanion’s new pet acquisition expense. Trupanion believes this allows it to calculate and present financial measures in a consistent manner across periods. Trupanion’s management believes that the non-GAAP financial measures and the related financial measures derived from them are important tools for financial and operational decision-making and for evaluating operating results over different periods of time.

    Trupanion, Inc.
    Condensed Consolidated Statements of Operations
    (in thousands, except share data)
        Three Months Ended March 31,
          2025       2024  
      (unaudited)
    Revenue:        
    Subscription business   $ 233,064     $ 201,134  
    Other business     108,911       104,987  
    Total revenue     341,975       306,121  
    Cost of revenue:        
    Subscription business     189,845       172,132  
    Other business     101,027       97,762  
    Total cost of revenue(1),(2)     290,872       269,894  
    Operating expenses:        
    Technology and development(1)     8,072       6,960  
    General and administrative(1)     19,892       14,673  
    New pet acquisition expense(1)     20,516       16,843  
    Depreciation and amortization     3,791       3,785  
    Total operating expenses     52,271       42,261  
    Loss from investment in joint venture     (305 )     (103 )
    Operating loss     (1,473 )     (6,137 )
    Interest expense     3,211       3,596  
    Other (income), net     (3,240 )     (2,843 )
    Loss before income taxes     (1,444 )     (6,890 )
    Income tax (benefit) expense     39       (38 )
    Net loss   $ (1,483 )   $ (6,852 )
             
    Net loss per share:        
    Basic and diluted   $ (0.03 )   $ (0.16 )
    Weighted average shares of common stock outstanding:        
    Basic and diluted     42,775,955       41,917,094  
             
    (1)Includes stock-based compensation expense as follows:
        Three Months Ended March 31,
          2025       2024  
    Cost of revenue   $ 1,259     $ 1,390  
    Technology and development     1,151       1,254  
    General and administrative     4,528       3,449  
    New pet acquisition expense     2,892       2,059  
    Total stock-based compensation expense   $ 9,830     $ 8,152  
             
    (2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows:
        Three Months Ended March 31,
          2025       2024  
    Veterinary invoice expense   $ 247,450     $ 233,569  
    Other cost of revenue     43,422       36,325  
    Total cost of revenue   $ 290,872     $ 269,894  
    Trupanion, Inc.
    Condensed Consolidated Balance Sheets
    (in thousands, except share data)
      March 31,
    2025    		   December 31,
    2024
      (unaudited)    
    Assets      
    Current assets:      
    Cash and cash equivalents $ 166,308     $ 160,295  
    Short-term investments   155,508       147,089  
    Accounts and other receivables, net of allowance for credit losses of $1,046 at March 31, 2025 and $1,117 at December 31, 2024   290,104       274,031  
    Prepaid expenses and other assets   16,417       15,912  
    Total current assets   628,337       597,327  
    Restricted cash   39,702       39,235  
    Long-term investments   376       373  
    Property, equipment and internal-use software, net   101,938       102,191  
    Intangible assets, net   12,130       13,177  
    Other long-term assets   16,356       17,579  
    Goodwill   38,323       36,971  
    Total assets $ 837,162     $ 806,853  
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 9,681     $ 11,532  
    Accrued liabilities and other current liabilities   36,907       33,469  
    Reserve for veterinary invoices   54,042       51,635  
    Deferred revenue   267,357       251,640  
    Long-term debt – current portion   1,350       1,350  
    Total current liabilities   369,337       349,626  
    Long-term debt   127,526       127,537  
    Deferred tax liabilities   1,884       1,946  
    Other liabilities   4,742       4,476  
    Total liabilities   503,489       483,585  
    Stockholders’ equity:      
    Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 43,804,141 and 42,775,955 issued and outstanding at March 31, 2025; 43,516,631 and 42,488,445 shares issued and outstanding at December 31, 2024   —       —  
    Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding   —       —  
    Additional paid-in capital   578,293       568,302  
    Accumulated other comprehensive loss   (715 )     (2,612 )
    Accumulated deficit   (227,371 )     (225,888 )
    Treasury stock, at cost: 1,028,186 shares at March 31, 2025 and December 31, 2024   (16,534 )     (16,534 )
    Total stockholders’ equity   333,673       323,268  
    Total liabilities and stockholders’ equity $ 837,162     $ 806,853  
    Trupanion, Inc.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
      Three Months Ended March 31,
        2025       2024  
      (unaudited)
    Operating activities      
    Net loss $ (1,483 )   $ (6,852 )
    Adjustments to reconcile net loss to cash provided by operating activities:      
    Depreciation and amortization   3,791       3,785  
    Stock-based compensation expense   9,830       8,152  
    Other, net   349       (202 )
    Changes in operating assets and liabilities:      
    Accounts and other receivables   (15,965 )     (10,718 )
    Prepaid expenses and other assets   (204 )     287  
    Accounts payable, accrued liabilities, and other liabilities   1,527       (5,131 )
    Reserve for veterinary invoices   2,407       (885 )
    Deferred revenue   15,712       13,998  
    Net cash provided by operating activities   15,964       2,434  
    Investing activities      
    Purchases of investment securities   (40,875 )     (19,193 )
    Maturities and sales of investment securities   33,242       19,005  
    Purchases of property, equipment, and internal-use software   (1,928 )     (3,065 )
    Other   588       516  
    Net cash used in investing activities   (8,973 )     (2,737 )
    Financing activities      
    Repayment of debt financing   (338 )     (338 )
    Proceeds from exercise of stock options   1,024       372  
    Shares withheld to satisfy tax withholding   (915 )     (245 )
    Other   (230 )     (75 )
    Net cash used in financing activities   (459 )     (286 )
    Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net   (52 )     (313 )
    Net change in cash, cash equivalents, and restricted cash   6,480       (902 )
    Cash, cash equivalents, and restricted cash at beginning of period   199,530       170,464  
    Cash, cash equivalents, and restricted cash at end of period $ 206,010     $ 169,562  
    The following tables set forth our key operating metrics.
                                   
      Three Months Ended March 31,                        
        2025       2024                          
    Total Business:                              
    Total pets enrolled (at period end)   1,667,637       1,708,017                          
    Subscription Business:                              
    Total subscription pets enrolled (at period end)   1,052,845       1,006,168                          
    Monthly average revenue per pet $ 77.53     $ 69.79                          
    Average pet acquisition cost (PAC) $ 267     $ 207                          
    Average monthly retention   98.28 %     98.41 %                        
                                   
                                   
      Three Months Ended
      Mar. 31, 2025   Dec. 31, 2024   Sep. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sep. 30, 2023   Jun. 30, 2023
    Total Business:                              
    Total pets enrolled (at period end)   1,667,637       1,677,570       1,688,903       1,699,643       1,708,017       1,714,473       1,712,177       1,679,659  
    Subscription Business:                              
    Total subscription pets enrolled (at period end)   1,052,845       1,041,212       1,032,042       1,020,934       1,006,168       991,426       969,322       943,958  
    Monthly average revenue per pet $ 77.53     $ 76.02     $ 74.27     $ 71.72     $ 69.79     $ 67.07     $ 65.82     $ 64.41  
    Average pet acquisition cost (PAC) $ 267     $ 261     $ 243     $ 231     $ 207     $ 217     $ 212     $ 236  
    Average monthly retention   98.28 %     98.25 %     98.29 %     98.34 %     98.41 %     98.49 %     98.55 %     98.61 %
    The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands):
           
      Three Months Ended March 31,
        2025       2024  
    Net cash provided by operating activities $ 15,964     $ 2,434  
    Purchases of property, equipment, and internal-use software   (1,928 )     (3,065 )
    Free cash flow $ 14,036     $ (631 )
    The following tables reflect the reconciliation between GAAP and non-GAAP measures (in thousands except percentages):
      Three Months Ended March 31,
        2024       2023  
    Veterinary invoice expense $ 247,450     $ 233,569  
    Less:      
    Stock-based compensation expense(1)   (763 )     (862 )
    Other business cost of paying veterinary invoices(3)   (79,269 )     (81,213 )
    Subscription cost of paying veterinary invoices (non-GAAP) $ 167,418     $ 151,494  
    % of subscription revenue   71.8 %     75.3 %
           
    Other cost of revenue $ 43,422     $ 36,325  
    Less:      
    Stock-based compensation expense(1)   (482 )     (420 )
    Other business variable expenses(3)   (21,736 )     (16,498 )
    Subscription variable expenses (non-GAAP) $ 21,204     $ 19,407  
    % of subscription revenue   9.1 %     9.6 %
           
    Technology and development expense $ 8,072     $ 6,960  
    General and administrative expense   19,892       14,673  
    Less:      
    Stock-based compensation expense(1)   (5,396 )     (4,258 )
    Development expenses(2)   (1,406 )     (1,178 )
    Fixed expenses (non-GAAP) $ 21,162     $ 16,197  
    % of total revenue   6.2 %     5.3 %
           
    New pet acquisition expense $ 20,516     $ 16,843  
    Less:      
    Stock-based compensation expense(1)   (2,873 )     (1,857 )
    Other business pet acquisition expense(3)   (3 )     (13 )
    Subscription acquisition cost (non-GAAP) $ 17,640     $ 14,973  
    % of subscription revenue   7.6 %     7.4 %
           
    (1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation according to GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.3 million for the three months ended March 31, 2025.
    (2) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant.
    (3) Excluding the portion of stock-based compensation expense attributable to the other business segment.
    The following tables reflect the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
      Three Months Ended March 31,
        2025       2024  
    Operating Loss $ (1,473 )   $ (6,138 )
    Non-GAAP expense adjustments      
    Acquisition cost   17,643       14,985  
    Stock-based compensation expense(1)   9,514       7,397  
    Development expenses(2)   1,406       1,179  
    Depreciation and amortization   3,791       3,785  
    Gain (loss) from investment in joint venture   (305 )     (103 )
    Total adjusted operating income (non-GAAP) $ 31,186     $ 21,312  
           
    Subscription Business:      
    Subscription operating income (loss) $ 1,065     $ (4,525 )
    Non-GAAP expense adjustments      
    Acquisition cost   17,640       14,973  
    Stock-based compensation expense(1)   7,772       5,882  
    Development expenses(2)   958       774  
    Depreciation and amortization   2,584       2,487  
    Subscription adjusted operating income (non-GAAP) $ 30,019     $ 19,591  
           
    Other Business:      
    Other business operating loss $ (2,233 )   $ (1,510 )
    Non-GAAP expense adjustments      
    Acquisition cost   3       12  
    Stock-based compensation expense(1)   1,742       1,516  
    Development expenses(2)   448       404  
    Depreciation and amortization   1,207       1,298  
    Other business adjusted operating income (non-GAAP) $ 1,167     $ 1,720  
           
    (1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation in accordance with GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.3 million for the three months ended March 31, 2025.
    (2) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant.
    The following tables reflect the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
                   
      Three Months Ended March 31,
        2025       2024  
    Subscription revenue $ 233,064     $ 201,134  
    Subscription cost of paying veterinary invoices   167,418       151,493  
    Subscription variable expenses   21,204       19,407  
    Subscription fixed expenses*   14,423       10,642  
    Subscription adjusted operating income (non-GAAP) $ 30,019     $ 19,591  
    Other business revenue   108,911       104,987  
    Other business cost of paying veterinary invoices   79,269       81,213  
    Other business variable expenses   21,736       16,498  
    Other business fixed expenses*   6,739       5,555  
    Other business adjusted operating income (non-GAAP) $ 1,167     $ 1,721  
    Revenue   341,975       306,121  
    Cost of paying veterinary invoices   246,687       232,707  
    Variable expenses   42,940       35,905  
    Fixed expenses*   21,162       16,197  
    Total business adjusted operating income (non-GAAP) $ 31,186     $ 21,312  
           
    As a percentage of revenue: Three Months Ended March 31,
        2024       2023  
    Subscription revenue   100.0 %     100.0 %
    Subscription cost of paying veterinary invoices   71.8 %     75.3 %
    Subscription variable expenses   9.1 %     9.6 %
    Subscription fixed expenses*   6.2 %     5.3 %
    Subscription adjusted operating income (non-GAAP)   12.9 %     9.7 %
           
    Other business revenue   100.0 %     100.0 %
    Other business cost of paying veterinary invoices   72.8 %     77.4 %
    Other business variable expenses   20.0 %     15.7 %
    Other business fixed expenses*   6.2 %     5.3 %
    Other business adjusted operating income (non-GAAP)   1.1 %     1.6 %
           
    Revenue   100.0 %     100.0 %
    Cost of paying veterinary invoices   72.1 %     76.0 %
    Variable expenses   12.6 %     11.7 %
    Fixed expenses*   6.2 %     5.3 %
    Total business adjusted operating income (non-GAAP)   9.1 %     7.0 %
           
    *Fixed expenses represent shared services that support both our subscription and other business segments and, as such, are generally allocated to each segment pro-rata based on revenues.

    Adjusted operating income is a non-GAAP financial measure that adjusts operating income (loss) to remove the effect of acquisition cost, development expenses, non-recurring transaction or restructuring expenses, and gain (loss) from investment in joint venture. Non-cash items, such as stock-based compensation expense and depreciation and amortization, are also excluded. Acquisition cost, development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization are expected to remain recurring expenses for the foreseeable future, but are excluded from this metric to measure scale in other areas of the business. Management believes acquisition costs primarily represent the cost to acquire new subscribers and are driven by the amount of growth we choose to pursue based primarily on the amount of our adjusted operating income period over period. Accordingly, this measure is not indicative of our core operating income performance. We also exclude development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization because some investors may not view those items as reflective of our core operating income performance.

    Management uses adjusted operating income and the margin on adjusted operating income to understand the effects of scale in its non-acquisition cost and development expenses and to plan future advertising expenditures, which are designed to acquire new pets. Management uses this measure as a principal way of understanding the operating performance of its business exclusive of acquisition cost and new product exploration and development initiatives. Management believes disclosure of this metric provides investors with the same data that the Company employs in assessing its overall operations and that disclosure of this measure may provide useful information regarding the efficiency of our utilization of revenues, return on advertising dollars in the form of new subscribers and future use of available cash to support the continued growth of our business.

    The following tables reflect the reconciliation of adjusted EBITDA to net loss (in thousands):
                                   
      Three Months Ended March 31,                        
        2025       2024                          
    Net loss $ (1,483 )   $ (6,852 )                        
    Excluding:                              
    Stock-based compensation expense   9,514       7,398                          
    Depreciation and amortization expense   3,791       3,785                          
    Interest income   (2,835 )     (3,045 )                        
    Interest expense   3,211       3,596                          
    Income tax expense (benefit)   39       (38 )                        
    Adjusted EBITDA $ 12,237     $ 4,844                          
                                   
      Three Months Ended
      Mar. 31, 2025   Dec. 31, 2024   Sep. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sep. 30, 2023   Jun. 30, 2023
    Net (loss) income $ (1,483 )   $ 1,656     $ 1,425     $ (5,862 )   $ (6,852 )   $ (2,163 )   $ (4,036 )   $ (13,714 )
    Excluding:                              
    Stock-based compensation expense   9,514       8,036       8,127       8,381       7,398       6,636       6,585       6,503  
    Depreciation and amortization expense   3,791       3,924       4,381       4,376       3,785       3,029       2,990       3,253  
    Interest income   (2,835 )     (2,999 )     (3,232 )     (3,135 )     (3,045 )     (2,842 )     (2,389 )     (2,051 )
    Interest expense   3,211       3,427       3,820       3,655       3,596       3,697       3,053       2,940  
    Income tax expense (benefit)   39       38       39       (44 )     (38 )     130       (43 )     (238 )
    Goodwill impairment charges   —       5,299       —       —       —       —       —       —  
    Non-recurring transaction or restructuring expenses   —       —       —       —       —       —       8       65  
    (Gain) loss from equity method investment   —       —       (33 )     —       —       —       (110 )     —  
    Adjusted EBITDA $ 12,237     $ 19,381     $ 14,527     $ 7,371     $ 4,844     $ 8,487     $ 6,058     $ (3,242 )
     

    Contacts:

    Investors:
    Laura Bainbridge, Senior Vice President, Corporate Communications
    Gil Melchior, Director, Investor Relations
    Investor.Relations@trupanion.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/af9a2ab5-2802-4ca8-8a90-199e1c54b91a

    The MIL Network –

  • MIL-OSI: Archrock Completes Acquisition of Natural Gas Compression Systems, Inc.

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, May 01, 2025 (GLOBE NEWSWIRE) — Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today announced it has completed its previously announced acquisition of Natural Gas Compression Systems, Inc. (“NGCSI”) and NGCSE, Inc. (“NGCSE”) (collectively, “NGCS”).

    “We are pleased to complete our acquisition of NGCS and welcome its highly talented team of employees to Archrock,” said Brad Childers, President and Chief Executive Officer of Archrock. “This accretive transaction is expected to increase our scale, expand our customer relationships, deepen our operations in key regions and strengthen our position as a premier provider of natural gas compression services in the United States. We are confident Archrock is poised for continued growth and value creation as we power a cleaner America.”

    At closing, Archrock issued approximately 2.251 million new Archrock common shares to NGCSE. In addition, Archrock funded the $299 million cash portion of the total consideration with available capacity under its ABL credit facility. Archrock remains committed to its stated target leverage ratio range of between 3.0 times and 3.5 times. The transaction is expected to be immediately accretive to Archrock’s 2025 earnings per share and cash available for dividend per share.

    About Archrock

    Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how the Company embodies its purpose, WE POWER A CLEANER AMERICA™, visit www.archrock.com.

    Forward-Looking Statements

    This press release contains forward-looking statements, which include statements about the expected benefits of the acquisition of Natural Gas Compression Systems, Inc. and NGCSE, Inc. These statements are not guarantees of future performance or actions. Forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock’s Annual Report on Form 10-K for the year ended December 31, 2024, and those set forth from time to time in Archrock’s filings with the Securities and Exchange Commission, which are available online at www.sec.gov and at www.archrock.com. Except as required by law, Archrock expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

    For information, contact:

    Archrock, Inc.
    INVESTORS
    Megan Repine
    VP of Investor Relations
    281-836-8360
    investor.relations@archrock.com

    MEDIA
    Andrew Siegel / Jed Repko / Kara Grimaldi
    Joele Frank
    212-355-4449

    The MIL Network –

  • MIL-OSI: Trisura Group Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, May 01, 2025 (GLOBE NEWSWIRE) — Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading specialty insurance provider, today announced financial results for the first quarter of 2025.

    David Clare, President and CEO of Trisura, stated,

    “In Q1 Trisura reported a strong Operating ROE of 18.4% driven by Operating net income of $34.2 million or $0.70 per share. Growth, profitable underwriting, and higher Net investment income demonstrates consistent execution of our strategy.

    Profitable underwriting resulted in a quarterly Combined ratio of 82.7%, alongside strong growth of 28.1% in our Primary lines. We continued expanding US Surety, reaching 33 state licenses in our Treasury-listed entity while broadening rate filings and building relationships with key distribution partners.

    Growth and strong earnings lifted book value to a new record of $820 million, with a conservative 10.7% debt-to-capital underscoring flexibility and capacity for growth.”

    Highlights

    • Operating ROE(1) of 18.4% was strong, reflecting profitability from core operations, while ROE(1) was 15.0% in the quarter.
    • BVPS(2) of $17.16 increased 23.5% over Q1 2024 demonstrating consistent expansion in book value.
    • Operating net income(3) was $34.2 million in the quarter, which increased over the prior year as a result of growth in the business. Net income of $29.0 million was lower than Q1 2024 primarily as a result of higher Net gains on the investment portfolio in Q1 2024 and the impact of movements in the yield curve in the quarter.
    • Operating EPS(1) of $0.70 in the quarter increased by 2.9% demonstrating the strength of core operations(4) through continued growth and profitability. EPS of $0.60 in the quarter decreased from Q1 2024 primarily as a result of higher Net gains on the investment portfolio in Q1 2024 and the impact of movements in the yield curve in the quarter.
    • Combined ratio(1) for the quarter was 82.7%, reflecting a strong underwriting performance across the portfolio.
    • GPW(2) of $711.7 million, decreased by 1.6% compared to Q1 2024, primarily as a result of non-renewed programs in US Programs during 2024, offset by growth in our Primary lines(5). Trisura’s Primary lines grew by 28.1% in the quarter, which are the lines of business that contribute most meaningfully to Underwriting income(3).
    • Net investment income growth of 8.6% in the quarter was driven by a larger investment portfolio.
      Q1 2025 Q1 2024 $ variance % variance
    GPW 711,671   723,130   (11,458 ) (1.6% )
    Net insurance revenue(3) 172,711   153,054   19,657   12.8%  
             
    Underwriting income 29,862   29,359   503   1.7%  
    Net investment income 18,197   16,753   1,444   8.6%  
             
    Operating net income 34,170   33,188   982   3.0%  
    Net income 28,990   36,433   (7,443 ) (20.4% )
             
    Loss ratio(1) 31.5%   31.6%   n/a (0.1pts)
    Expense ratio(1) 51.2%   49.2%   n/a 2.0pts
    Combined ratio 82.7%   80.8%   n/a 1.9pts
             
    OEPS – diluted – in dollars 0.70   0.68   0.02   2.9%  
    EPS – diluted – in dollars 0.60   0.75   (0.15 ) (20.0% )
    BVPS – in dollars 17.16   13.89   3.27   23.5%  
    Debt-to-capital ratio(2) 10.7%   10.2%   n/a 0.5pts
    Operating ROE 18.4%   20.0%   n/a (1.6pts)
    ROE 15.0%   15.3%   n/a (0.3pts)

    Insurance Operations

    • Net insurance revenue of $172.7 million, increased by 12.8% compared to Q1 2024, reflecting growth in the business, driven by growth in our Primary Lines.
    • Underwriting income of $29.9 million, increased by 1.7% compared to Q1 2024 due to growth in the business and foreign exchange movement, offset by a higher Combined ratio.
    • The consolidated Combined ratio was 82.7% for the quarter reflecting a higher Loss ratio at Trisura Specialty offset by a shift in the business mix to Trisura Specialty which typically has a higher Expense ratio but a lower Loss ratio.

    Investments

    • Net investment income rose 8.6% in the quarter compared to Q1 2024. The portfolio benefited from growth in the business.

    Capital

    • The Minimum Capital Test ratio(6) of our regulated Canadian subsidiary was 273% as at March 31, 2025 (276% as at December 31, 2024), which comfortably exceeded regulatory requirements(7) of 150%.
    • As at December 31, 2024, the Risk-Based Capital(8) of the regulated US insurance companies were in excess of the various company action levels of the states in which they are licensed.
    • Consolidated debt-to-capital ratio of 10.7% as at March 31, 2025 is below our long-term target of 20.0%.

    Earnings Conference Call

    Trisura will host its First Quarter Earnings Conference Call to review financial results at 9:00a.m. ET on Friday, May 2nd, 2025.

    To listen to the call via live audio webcast, please follow the link below:

    https://edge.media-server.com/mmc/p/tzhsg4ir

    A replay of the call will be available through the link above.

    About Trisura Group

    Trisura Group Ltd. is a specialty insurance provider operating in the Surety, Warranty, Corporate Insurance, Program and Fronting business lines of the market. Trisura has investments in wholly owned subsidiaries through which it conducts insurance operations. Those operations are primarily in Canada and the United States. Trisura Group Ltd. is listed on the Toronto Stock Exchange under the symbol “TSU”.

    Further information is available at http://www.trisura.com. Important information may be disseminated exclusively via the website. Investors should consult the site to access this information. Details regarding the operations of Trisura Group Ltd. are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group’s SEDAR+ profile at www.sedarplus.ca.

    For more information, please contact:

    Name: Bryan Sinclair

    Tel: 416 607 2135

    Email: bryan.sinclair@trisura.com

    Non-IFRS Financial Measures and other Financial Measures

    We report certain financial information using non-IFRS financial measures, non-IFRS ratios and supplementary financial measures that we use to measure and evaluate the performance of our business. Non-IFRS financial measures do not have standardized meanings prescribed by IFRS and may not be comparable to similar measures used by other companies in our industry. They are used by management and financial analysts to assess our performance.

    Further, they provide users with an enhanced understanding of our results and related trends and increase transparency and clarity into the core results of the business.

    These metrics are operating performance measures that highlight trends in our core business or are required ratios used to measure compliance with OSFI and other regulatory standards. Our Company also believes that securities analysts, investors and other interested parties use these operating metrics to compare our Company’s performance against others in the specialty insurance industry. Our Company’s management also uses these operating metrics and other financial measures in order to facilitate operating performance comparisons from period to period. Such operating metrics and other financial measures should not be considered as the sole indicators of our performance and should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS. For more information about these supplementary financial measures, Non-IFRS financial measures, and Non-IFRS ratios, including definitions and explanations of how these measures provide useful information, refer to Section 8 – Accounting and Disclosure matters in our Q1 2025 MD&A , which is available on our website at http://www.trisura.com and on SEDAR+ at www.sedarplus.ca.

    Table 1 – Reconciliation of Operating net income to reported Net income and OEPS: reflect Net income, adjusted for certain items to normalize earnings to core operations in order to reflect our North American specialty operations.

      Q1 2025 Q1 2024
    Operating net income 34,170   33,188  
    Impact of Exited lines 111   –  
    Loss from run-off program –   (3,714 )
    Impact of movement in yield curve in Net insurance finance income (expenses) (3,569 ) 437  
    Impact of SBC 1,199   (2,923 )
    Net (gains) losses (4,547 ) 10,446  
    Tax impact of above items 1,626   (1,001 )
    Non-operating results, net of tax (5,180 ) 3,245  
    Net income 28,990   36,433  
         
    Operating net income 34,170   33,188  
    Weighted-average number of common shares outstanding – diluted
    (in thousands of shares)    		 48,472   48,456  
    Operating EPS – diluted (in dollars) 0.70   0.68  


    Table 2 – Reconciliation of Insurance service result to Underwriting income – Consolidated

    Financial statements line item 1   2 3   4   5   6   7 MD&A line item
    For the three months ended March 31, 2025
    Insurance revenue 779,606   (601,048 ) – –   –   (5,847 ) –   – 172,711   Net insurance revenue
    Insurance service expenses (585,213 ) 444,725   5,461 (10,649 ) (6,478 ) 5,736   3,569   – (142,849 ) Sum of Net claims ($54,345) and Net expenses ($88,504)
    Net income (expenses) from reinsurance contracts assets (156,323 ) 156,323   – –   –   –   –   – –   n/a
    Insurance service result 38,070   –   5,461 (10,649 ) (6,478 ) (111 ) 3,569   – 29,862   Underwriting income
    For the three months ended March 31, 2024
    Insurance revenue 744,266   (594,773 ) – –   –   –   –   3,561 153,054   Net insurance revenue
    Insurance service expenses (580,940 ) 466,895   5,345 (10,853 ) (3,858 ) –   (437 ) 153 (123,695 ) Sum of Net claims ($48,406) and Net expenses ($75,289)
    Net income (expenses) from reinsurance contracts assets (127,878 ) 127,878   – –   –   –   –   – –   n/a
    Insurance service result 35,448   –   5,345 (10,853 ) (3,858 ) –   (437 ) 3,714 29,359   Underwriting income
    Reconciling items in the table above:
    1 Net of reinsurance impact
    2 Other income
    3 Other operating expenses related to Trisura Specialty and Trisura US Programs
    4 Net insurance finance income (expenses)
    5 Impact of Exited lines
    6 Movement in yield curve in Net insurance finance income (expenses)
    7 Loss from run-off program


    Table 3 – ROE and Operating LTM ROE    : a measure of the Company’s use of equity.

      Q1 2025 Q1 2024
    LTM net income 111,472   89,398  
    LTM average equity 742,056   583,798  
    ROE 15.0%   15.3%  
    Operating LTM net income 136,831   116,819  
    Operating LTM ROE 18.4%   20.0%  


    Table 4 – Reconciliation of Average equity    (9)to LTM average equity: LTM average equity is used in calculating Operating ROE.

      Q1 2025
    		 Q1 2024
    Average equity 741,016   587,336  
    Adjustments: days in quarter proration 1,040   (3,538 )
    LTM average equity 742,056   583,798  


    Table 5 – Combined ratio – Consolidated:     Combined ratio is used to evaluate underlying profitability relative to Net insurance revenue in a given period.

       Q1 2025 Q1 2024
    Net insurance revenue, as presented in Table 2 172,711   153,054  
    Net claims, as presented in Table 2 (54,345 ) (48,406 )
    Net expenses, as presented in Table 2 (88,504 ) (75,289 )
    Underwriting income 29,862   29,359  
         
    Loss ratio 31.5%   31.6%  
    Expense ratio 51.2%   49.2%  
    Combined ratio 82.7%   80.8%  


    Footnotes

    (1) These are non-IFRS ratios. Non-IFRS ratios are not standardized under the financial reporting framework used to prepare the financial statements of the Company to which the ratio relates and might not be comparable to similar ratios disclosed by other companies. See Section 8, Accounting and Disclosure matters in our Q1 2025 MD&A for details on composition, as well as each non-IFRS financial measure used as a component of the ratio, and an explanation of how it provides useful information to an investor.

    (2) This is a supplementary financial measure. See Section 8, Accounting and Disclosure matters in our Q1 2025 MD&A for details on composition and an explanation of how it provides useful information to an investor.

    (3) These are non-IFRS financial measures. Non-IFRS financial measures are not standardized financial measures under the financial reporting framework used to prepare the financial statements of the Company to which the measure relates and might not be comparable to similar financial measures disclosed by other companies. See Section 8, Accounting and Disclosure matters in our Q1 2025 MD&A for details on composition and an explanation of how it provides useful information to an investor.

    (4) See Section 8, Accounting and Disclosure matters in our Q1 2025 MD&A for the definition of Operating Net Income, and for further explanation of “core operations”.

    (5) Primary lines are lines of insurance business such as Surety, Corporate Insurance, and Warranty.

    (6) This measure is calculated in accordance with the Office of the Superintendent of Financial Institutions Canada’s (OSFI’s) Guideline A, Minimum Capital Test.

    (7) This target is in accordance with OSFI’s Guideline A-4, Regulatory Capital and Internal Capital Targets.

    (8) This measure is calculated in accordance with the National Association of Insurance Commissioners, Risk Based Capital for Insurers Model Act.

    (9) Average equity is calculated as the sum of opening equity and closing equity over the last twelve months, divided by two.

    Cautionary Statement Regarding Forward-Looking Statements and Information

    Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of our Company and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “likely,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts”, “potential” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could”.

    Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of our Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

    Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behaviour of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; insurance risks including pricing risk, concentration risk and exposure to large losses, and risks associated with estimates of loss reserves; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; changes in capital requirements; changes in reinsurance arrangements and availability and cost of reinsurance; ability to collect amounts owed; catastrophic events, such as earthquakes, hurricanes or pandemics; the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; risks associated with reliance on distribution partners, capacity providers and program administrators; third party risks; risk that models used to manage the business do not function as expected; climate change risk; risk of economic downturn; risk of inflation; risks relating to cyber-security; risks relating to credit ratings; and other risks and factors detailed from time to time in our documents filed with securities regulators in Canada.

    We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, our Company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

    Cautionary Non-IFRS and Other Financial Measures

    Reported results conform to generally accepted accounting principles (GAAP), in accordance with IFRS. In addition to reported results, our Company also presents certain financial measures, including non-IFRS financial measures that are historical, non-IFRS ratios, and supplementary financial measures, to assess results. Non-IFRS financial measures, such as operating net income, are utilized to assess the Company’s overall performance. To arrive at operating results, our Company adjusts for certain items to normalize earnings to core operations, in order to reflect our North American specialty operations. Non-IFRS ratios include a non-IFRS financial measure as one or more of its components. Examples of non-IFRS ratios include operating diluted earnings per share and operating ROE. The Company believes that non-IFRS financial measures and non-IFRS ratios provide the reader with an enhanced understanding of our results and related trends and increase transparency and clarity into the core results of the business. Non-IFRS financial measures and non-IFRS ratios are not standardized terms under IFRS and, therefore, may not be comparable to similar terms used by other companies. Supplementary financial measures depict the Company’s financial performance and position, and are explained in this document where they first appear, and incorporates information by reference to our Company’s current MD&A, for the three months ended March 31, 2025. To access MD&A, see Trisura’s website or SEDAR+ at www.sedarplus.ca. These measures are pursuant to National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure.

    The MIL Network –

  • MIL-OSI: iRhythm Launches Zio® Long-Term Continuous Monitoring Service in Japan as the Zio® ECG Recording and Analysis System, Advancing AI-Powered Arrhythmia Detection

    Source: GlobeNewswire (MIL-OSI)

    • iRhythm Zio®Long-Term Continuous Monitoring (LTCM) system — commercially introduced in Japan as the Zio®ECG Recording and Analysis System — brings AI-powered, continuous, uninterrupted ECG monitoring for up to 14 days to Japan
    • Launch is timely amid a growing demand for early, accurate detection of arrhythmias in Japan, the second largest ambulatory cardiac monitoring market in the world, where the prevalence is expected to rise alongside an aging population1-3

    SAN FRANCISCO, May 01, 2025 (GLOBE NEWSWIRE) — iRhythm Technologies, Inc. (NASDAQ:IRTC) today announced the commercial launch in Japan of its Zio® long-term continuous ECG monitoring (LTCM) system, commercially introduced in this market as the Zio® ECG Recording and Analysis System. The system provides up to 14 days of continuous, uninterrupted ECG monitoring and leverages a deep-learned artificial intelligence (AI) algorithm approved by Japan’s Pharmaceuticals and Medical Devices Agency (PMDA) – and represents a significant advancement over other ambulatory cardiac monitoring options in Japan, including commonly used wired Holter monitors, which capture only 24 to 48 hours of data and other patch-based services that monitor only up to 7 days.

    “We are honored to introduce our AI-powered Zio ECG Recording and Analysis System that provides up to 14 days of continuous, uninterrupted cardiac monitoring to Japan, where we see a meaningful opportunity to help advance arrhythmia detection,” said Quentin Blackford, President and Chief Executive Officer of iRhythm. “Together with our trusted distribution partner, Senko Medical Instrument, we are committed to expanding access to advanced cardiac monitoring that supports clinical excellence and aligns with Japan’s dedication to high-quality, patient-centered care.”

    Advancing Arrhythmia Detection in Japan

    The Zio ECG Recording and Analysis System consists of a prescription-only, patch-based ECG monitoring device (Zio monitor, iRhythm’s latest-generation ECG patch), worn for up to 14 days, and the ZEUS (Zio ECG Utilization Software) system.

    The unique attributes of the Zio ECG Recording and Analysis System offer meaningful advantages for patients and clinicians:

    Zio monitor (Patch ECG Device): Improving Patient Monitoring Experience

    • The latest-generation patch ECG is thinner, lighter, and smaller—designed for comfortable, discreet wear, ease of use,4 and patient satisfaction5,6
    • Enables up to 14 days of continuous, uninterrupted ECG monitoring
    • Demonstrates 99% patient compliance with prescribed wear time6-8 and 99% analyzable data, delivering high-quality, actionable data6,10,11

    Zio Service (End-to-End Monitoring System): Combining Advanced AI with Human Expertise

    • PMDA-approved, deep-learned AI algorithm detects 13 arrhythmia types, as well as sinus rhythm and artifact, and is clinically proven to perform at the level of cardiologists11-14
    • End-of-wear reports are reviewed and validated by certified cardiographic technicians (CCTs), with 99% physician agreement6,8
    • Zio ECG Recording and Analysis System is associated with the highest diagnostic yield and lowest likelihood of retesting compared to other monitoring services, including other LTCMs and 24- to 48-hour duration Holter monitoring services6,8,15-20
    • In clinical settings, the Zio LTCM service may help reduce misinterpretation of ECG data and improve clinical efficiency12

    Zio® monitor by iRhythm Technologies,
    part of the Zio®ECG Recording and Analysis System

    “The Zio service represents a new step forward in how we monitor for arrhythmias in Japan,” said Dr. Kohei Yamashiro, Vice President and Director of the Heart Rhythm Center at Takatsuki General Hospital (Osaka Prefecture), the first hospital in Japan to introduce the Zio ECG Recording and Analysis System. “Its ease of use, extended monitoring period, and clear reporting provide important benefits for both patients and clinicians.”

    Clinically Proven Performance

    The clinical value of the Zio LTCM service has been demonstrated in a robust, growing body of clinical evidence. The Cardiac Ambulatory Monitor EvaLuation of Outcomes and Time to Events (CAMELOT) study, published in the American Heart Journal, found that Zio LTCM service was associated with the highest yield of specified arrhythmia diagnosis and the lowest likelihood of repeat testing compared to all other monitoring services.

    iRhythm’s comprehensive clinical evidence, encompassing more than 125 original research manuscripts21 and insights derived from over 2 billion hours of curated heartbeat data9 and more than 10 million patient reports posted since the company’s inception, underscore the company’s ongoing commitment to expanding evidence that supports improved patient outcomes.

    “The Zio long-term continuous monitoring service offers a clinically validated approach to arrhythmia detection by combining advanced AI with expert clinical review to support accurate and timely diagnoses,” said Dr. Mintu Turakhia, iRhythm Chief Medical Officer, Chief Scientific Officer, and EVP of Product Innovation. “As the need for effective long-term monitoring grows, we believe the introduction of Zio LTCM in Japan presents an opportunity to enhance patient care and support evolving clinical needs in cardiac monitoring—an impact also recognized by the Japanese Heart Rhythm Society.”

    Cardiac Arrhythmias and Prevalence in Japan

    A cardiac arrhythmia is a condition in which the heart beats too quickly, too slowly, or irregularly due to abnormal electrical impulses. If undetected and untreated, some arrhythmias can damage the heart, brain, or other organs and lead to an increased risk of stroke and death.22-24

    These potential complications make accurate, timely arrhythmia detection and diagnosis critical to improving patient outcomes and quality of life.

    The prevalence of cardiac arrhythmias continues to rise globally, and Japan is the second largest ambulatory cardiac monitoring market in the world with an estimated 1.6 million tests prescribed annually. This number is expected to continue to increase based on stroke and cardiovascular disease burden in Japan’s aging population.1-3

    Availability in Japan
    Zio® ECG Recording and Analysis System will be available to healthcare customers beginning May 2025, with nationwide availability anticipated by July 2025, through Senko Medical Instrument, iRhythm’s exclusive distribution partner in Japan.

    Outside of Japan, iRhythm offers its Zio® portfolio of cardiac monitoring solutions in Austria, the Netherlands, Spain, Switzerland, the United States, and the UK – and remains dedicated to bringing access to its advanced cardiac monitoring to even more patients, clinicians and healthcare systems around the world.

    About iRhythm Technologies, Inc.
    iRhythm is a leading digital health care company that creates trusted solutions that detect, predict, and prevent disease. Combining wearable biosensors and cloud-based data analytics with powerful proprietary algorithms, iRhythm distills data from millions of heartbeats into clinically actionable information. Through a relentless focus on patient care, iRhythm’s vision is to deliver better data, better insights, and better health for all. To learn more about iRhythm and the Zio® LTCM service in Japan, please visit irhythmtech.com/jp/ja. For additional information about iRhythm, please visit its corporate website at irhythmtech.com.

    Forward-Looking Statements 
    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future actions or operating or financial performance.  In particular, these include statements regarding the Japanese market opportunity, our ability to penetrate the Japanese market, and expansion of patient access to our products and services in Japan. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in our filings made with the Securities and Exchange Commission, including those on the Form 10-Q expected to be filed on or about May 1, 2025. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements. 

    Media Contact
    Kassandra Perry
    irhythm@highwirepr.com

    Investor Contact
    Stephanie Zhadkevich
    investors@irhythmtech.com

    —-
    Footnotes

    1. Irie S, Tada H. The Relationship between Holter Electrocardiography and Atrial Fibrillation Diagnosis Using Real-World Data in Japan. Int Heart J. 2023;64(2):178-187.
    2. Matsuda S. Health Policy in Japan – Current Situation and Future Challenges. JMA Journal, 2019.
    3. Annual Pharmaceutical Production Statistics, Ministry of Health, Labour, and Welfare (“MHLW”).
    4. Data on file. iRhythm Technologies, 2023.
    5. Zio monitor Instructions for Use. iRhythm Technologies, 2023.
    6. Based on US data.
    7. Data on file. iRhythm Technologies, 2022.
    8. Zio service provides continuous, uninterrupted recording and a comprehensive end-of-wear report.
    9. Data on file. iRhythm Technologies, 2024.
    10. Analyzable time is based off median values for a 14-day prescription
    11. Data on file. iRhythm Technologies, 2020.
    12. Hannun et al. Cardiologist-level arrhythmia detection and classification in ambulatory electrocardiograms using a deep neural network. Nat Med. 2019;25:65-69. https://doi.org/10.1038/s41591-018-0268-3
    13. Deep learned algorithm is only available in the United States, European Union, Switzerland, United Kingdom, and Japan.
    14. FDA 510K clearance, CE mark, UKCA mark, and PMDA-approval.
    15. Reynolds et al. Comparative effectiveness and healthcare utilization for ambulatory cardiac monitoring strategies in Medicare beneficiaries. Am Heart J. 2024;269:25–34. https://doi.org/10.1016/j.ahj.2023.12.002
    16. Diagnostic yield was assessed based upon the evaluation of specified arrhythmias, which refer to an arrhythmia encounter diagnosis as per Hierarchical Condition Categories (HCC) 96.
    17. Based on previous generation Zio XT device data. Zio monitor utilizes the same operating principles and ECG algorithm. Additional data on file.
    18. Zio LTCM service refers to Zio XT and Zio monitor service.
    19. Contraindications: Do not use the Zio monitor for critical care patients or for patients with symptomatic episodes where instance variations in cardiac performance could result in immediate danger to the patients or when real-time or in-patient monitoring should be prescribed. (Refer to the Zio monitor Instructions for Use for the full list of contraindications)
    20. Zio monitor and ZEUS are Japan PMDA approved.
    21. Data on file. iRhythm Technologies, 2025.
    22. Ataklte et al. Meta-analysis of ventricular premature complexes and their relation to cardiac mortality in general populations. The American Journal of Cardiology. 2013;112(8):1263-1270. doi:10.1016/j.amjcard.2013.05.065
    23. Lin et al. Long-term outcome of non-sustained ventricular tachycardia in structurally normal hearts. PLOS ONE. 2016;11(8). doi:10.1371/journal.pone.0160181
    24. Wolf et al. Atrial fibrillation as an independent risk factor for stroke: The Framingham Study. Stroke. 1991;22(8):983-988. doi:10.1161/01.str.22.8.983

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6ffe8ed2-1063-4455-8784-d0278fd46373

    The MIL Network –

  • MIL-OSI: Sprott Announces Date for 2025 First Quarter Results Webcast

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, May 01, 2025 (GLOBE NEWSWIRE) — Sprott Inc. (NYSE:SII) (TSX:SII) (“Sprott”) announced today that it plans to release its 2025 first quarter results at 7:00 a.m. on May 7, 2025. Sprott will host an earnings webcast that morning at 10:00 a.m. to discuss the results. Sprott CEO, Whitney George, together with Sprott CFO, Kevin Hibbert and Sprott Asset Management CEO, John Ciampaglia, will host the webcast, which can be accessed as outlined below.

    PLEASE NOTE: Research analysts who cover the company should register at: https://register-conf.media-server.com/register/BIa4daf41d0475486f809eb3c63ce3096d

    Pre-registration is now open.

    About Sprott
    Sprott is a global asset manager focused on precious metals and critical materials investments. We are specialists. We believe our in-depth knowledge, experience and relationships separate us from the generalists. Our investment strategies include Exchange Listed Products, Managed Equities and Private Strategies. Sprott has offices in Toronto, New York, Connecticut and California. The company’s common shares are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol (SII). For more information, please visit www.sprott.com.

    Investor contact information: (416) 943-4394 or ir@sprott.com.

    The MIL Network –

  • MIL-OSI: Codere Online Files 2023 Annual Report on Form 20-F and to Release Q1-25 Earnings on May 16th

    Source: GlobeNewswire (MIL-OSI)

    Luxembourg, Grand Duchy of Luxembourg, May 1, 2025 (GLOBE NEWSWIRE) – Codere Online Luxembourg, S.A. (Nasdaq: CDRO / CDROW) (the “Company” or “Codere Online”), a leading online gaming operator in Spain and Latin America, today announced that it has filed with the U.S. Securities and Exchange Commission (“SEC”) its annual report on form 20-F for the year ended December 31, 2023 (the “2023 20-F”) within the extension period granted by the Nasdaq Hearings Panel.

    Following this positive development, the Company expects to release its first quarter 2025 results prior to 8:30AM US Eastern Time on May 16, 2025. At 8:30AM US Eastern Time on the same day, Codere Online’s management will host a conference call to discuss the results and provide a business update.

    The Company’s earnings press release and related materials will be available on Codere Online’s website at www.codereonline.com. Dial-in details for the conference call as well as the audio webcast registration link are accessible in the Events & Presentations section of the same website. A recording of the webcast will be available following the conference call.

    A copy of the 2023 20-F is available in the SEC Filings section of the Company’s website: www.codereonline.com/financials-and-filings.

    In order to minimize the environmental impact of its annual report by reducing paper consumption, the Company encourages its shareholders to read it in digital format. However, Company shareholders willing to receive a hard copy of this document, which contains the Company’s audited financial statements, may do so, free of charge, upon request addressed to ir@codereonline.com.

    About Codere Online

    Codere Online refers, collectively, to Codere Online Luxembourg, S.A. and its subsidiaries. Codere Online launched in 2014 as part of the renowned casino operator Codere Group. Codere Online offers online sports betting and online casino through its state-of-the art website and mobile applications. Codere currently operates in its core markets of Spain, Mexico, Colombia, Panama and Argentina. Codere Online’s online business is complemented by Codere Group’s physical presence throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence.

    Forward-Looking Statements
    Certain statements in this press release may constitute “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future, including the Company’s statements related to the Company’s ability to regain compliance with the Rule.

    These forward-looking statements are based on information available as of the date of this document and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the Company’s or its management team’s views as of any subsequent date, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

    As a result of a number of known and unknown risks and uncertainties, the Company’s actual results or performance may be materially different from those expressed or implied by these forward-looking statements. There may be additional risks that the Company does not presently know or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Additional information concerning certain of these and other risk factors is contained in Codere Online’s filings with the SEC. All subsequent written and oral forward-looking statements concerning Codere Online or other matters attributable to Codere Online or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.

    Contacts:

    Investors and Media
    Guillermo Lancha
    Director, Investor Relations and Communications
    Guillermo.Lancha@codereonline.com
    (+34) 628.928.152

    The MIL Network –

  • MIL-OSI: Employers Holdings, Inc. Reports First Quarter 2025 Results and Declares Increase in Regular Quarterly Dividend to $0.32 per Share and New Share Repurchase Authorization of $125 Million

    Source: GlobeNewswire (MIL-OSI)

    RENO, Nev., May 01, 2025 (GLOBE NEWSWIRE) — Employers Holdings, Inc. (the “Company”) (NYSE:EIG), a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services focused on small and mid-sized businesses engaged in low-to-medium hazard industries, today reported financial results for its first quarter ended March 31, 2025.

    Financial Highlights:
    (All comparisons vs. the first quarter of 2024).

    • Net income per diluted share decreased by 53%, from $1.11 to $0.52;
    • Adjusted net income per diluted share increased 30%, from $0.67 to $0.87;
    • Gross premiums written increased 1%, from $210.9 million to $212.1 million;
    • Net premiums earned decreased 1%, from $184.9 million to $183.0 million;
    • Underwriting expense ratio improved from 25.0% to 23.4%;
    • Net investment income increased 20%, from $26.8 million to $32.1 million;
    • Record number of ending policies in-force of 133,121, a 4% increase; and
    • Returned $27.5 million to stockholders through a combination of share repurchases and regular quarterly dividends.

    Management Commentary

    Chief Executive Officer Katherine Antonello commented: “First quarter net premiums earned were flat compared to 2024, driven by higher renewal premiums offset by lower new business and a reduction in audit premiums. Rate increases and underwriting actions taken to maintain our underwriting profitability targets in certain states impacted new business premiums, while final audit premiums decreased in-line with the moderation of employment and wage growth. We have identified several refinements in our underwriting and pricing approach that we believe will allow us to maintain our underwriting discipline but also return to moderate new business growth. Our appetite expansion effort continues to identify areas of profitable growth, and our success has given us the confidence to accelerate this effort. We again ended the period with another record number of policies in-force, which were up 4% year-over-year.

    We recorded our current accident year loss and LAE ratio on voluntary business at 66.0%, slightly above the 64.0% we maintained throughout 2024. As was the case in the first quarter of 2024, a full actuarial study was not performed, and the amount of indicated net prior year loss reserve development was consistent with our expectations. We will evaluate our prior year reserves in more detail at mid-year when we routinely perform a full reserve study.

    Our commission expense ratio was 12.6%, versus 13.6% a year ago. We continue to see improvement in our underwriting expense ratio, which decreased to 23.4%, from 25.0% a year ago.

    Our net investment income was $32.1 million, up 20% from a year ago. The increase was primarily due to returns from our investments in limited partnerships.

    Lastly, we raised our regular quarterly dividend to $0.32 per share, an increase of 7%, and announced a new $125.0 million share repurchase plan after exhausting the former plan prior to its scheduled expiration. These actions reflect our strong balance sheet, abundant underwriting capital, and the confidence in the Company’s future operations.”

    Summary of First Quarter 2025 Results

    (All comparisons vs. the first quarter of 2024, unless otherwise noted).

    Gross premiums written were $212.1 million, an increase of 1%. The increase was due to strong retention in renewal business writings partially offset by a decline in new business writings and lower final audit premiums. Net premiums earned were $183.0 million, a decrease of 1%.

    Losses and loss adjustment expenses were $120.7 million, an increase of 4%. The increase was primarily due to a higher current accident year loss and loss adjustment expense estimate. The Company’s loss and loss adjustment expense ratio was 66.0% (66.8% excluding LPT), versus 63.0% (64.1% excluding LPT).

    Commission expense was $23.0 million, a decrease of 8%. The Company’s commission expense ratio was 12.6%, versus 13.6% a year ago. The decrease was primarily due to a release of commissions payable associated with non-performing policies sent to collections.

    Underwriting expenses were $42.9 million, a decrease of 7%. The Company’s underwriting expense ratio was 23.4%, versus 25.0% a year ago. The decrease primarily related to lower bad debt expense and compensation-related expenses.

    Net investment income was $32.1 million, an increase of 20%. The increase was primarily due to returns from our investments in private equity limited partnerships, along with higher book yields on our fixed maturity securities.

    Net realized and unrealized (losses) gains on investments reflected on the income statement were $(12.8) million, versus $11.4 million.

    Income tax expense was $3.1 million (19.5% effective rate), versus $7.0 million (19.8% effective rate). The effective rates during each of the periods included income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, deferred gain amortization and related adjustments, and tax credits utilized.

    The Company’s book value per share including the deferred gain of $48.25 increased 12.3% year-over-year and 2.5% during the first quarter of 2025, computed after considering dividends declared. During the first quarter this measure was favorably impacted by $21.1 million of after-tax unrealized gains arising from fixed maturity securities (which are reflected on the balance sheet) partially offset by $9.2 million of net after tax unrealized losses arising from equity securities and other investments (which are reflected on the income statement). The Company’s adjusted book value per share of $50.75 increased by 8.5% year-over-year and 1.0% during the first quarter of 2025, computed after considering dividends declared.

    Second Quarter 2025 Dividend Declaration

    On April 30, 2025, the Company’s Board of Directors declared an increase in our regular quarterly dividend to $0.32. The dividend is payable on May 28, 2025 to stockholders of record as of May 14, 2025.

    Stock Repurchases and New Stock Repurchase Authorization

    During the first quarter of 2025, the Company repurchased 406,101 shares of its common stock at an average price of $49.69 per share. During the period from April 1, 2025 through April 29, 2025, the Company repurchased a further 170,000 shares of its common stock at an average price of $48.35 per share.

    On April 30, 2025, the Company’s Board of Directors authorized a new stock repurchase program to allow for repurchases of up to $125.0 million of our common stock from May 6, 2025 through December 31, 2026. The new program replaces a similar program that was scheduled to expire on July 31, 2025, but its repurchase authorization has been exhausted.

    Earnings Conference Call and Webcast

    The Company will host a conference call on Friday, May 2, 2025 at 11:00 a.m. Eastern Daylight Time / 8:00 a.m. Pacific Daylight Time.

    To participate in the live conference call, you must first register here. Once registered you will receive dial-in numbers and a unique PIN number.

    The webcast will be accessible on the Company’s website at www.employers.com through the “Investors” link.

    Reconciliation of Non-GAAP Financial Measures to GAAP

    The information in this press release should be read in conjunction with the Financial Supplement that is attached to this press release and available on our website.

    Within this earnings release we present various financial measures, some of which are “non-GAAP financial measures” as defined in Regulation G pursuant to Section 401 of the Sarbanes – Oxley Act of 2002. A description of these non-GAAP financial measures, as well as a reconciliation of such non-GAAP measures to our most directly comparable GAAP financial measures is included in the attached Financial Supplement. Management believes that these non-GAAP measures are important to the Company’s investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

    Forward-Looking Statements

    In this press release, the Company and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections of, among other things, the Company’s future performance, economic or market conditions, including current or future levels of inflation, potential implications of increased tariffs, changes in interest rates, labor market expectations, catastrophic events or geo-political conditions, legislative or regulatory actions or court decisions, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. Certain of these statements may constitute “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” or “continue,” or other comparable terminology and their negatives. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company’s future performance. Factors that could cause the Company’s actual results to differ materially from those indicated by such forward-looking statements include, among other things, those discussed or identified from time to time in the Company’s public filings with the Securities and Exchange Commission (SEC), including the risks detailed in the Company’s Quarterly Reports on Form 10-Q and the Company’s Annual Reports on Form 10-K. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

    Filings with the SEC

    The Company’s filings with the SEC and its quarterly investor presentations can be accessed through the “Investors” link on the Company’s website, www.employers.com. The Company’s filings with the SEC can also be accessed through the SEC’s EDGAR Database at www.sec.gov (EDGAR CIK No. 0001379041).

    About Employers Holdings, Inc.

    Employers Holdings, Inc. (NYSE: EIG), is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services (collectively “EMPLOYERS®”) focused on small and mid-sized businesses engaged in low-to-medium hazard industries. EMPLOYERS leverages over a century of experience to deliver comprehensive coverage solutions that meet the unique needs of its customers. Drawing from its long history and extensive knowledge, EMPLOYERS empowers businesses by protecting their most valuable asset – their employees – through exceptional claims management, loss control, and risk management services, creating safer work environments.

    EMPLOYERS is also proud to offer Cerity®, which is focused on providing digital-first, direct-to-consumer workers’ compensation insurance solutions with fast, and affordable coverage options through a user-friendly online platform.

    EMPLOYERS operates throughout the United States, apart from four states that are served exclusively by their state funds. Insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company and Cerity Insurance Company, all rated A (Excellent) by AM Best. Not all companies do business in all jurisdictions. EIG Services, Inc., and Cerity Services, Inc., are subsidiaries of Employers Holdings, Inc. EMPLOYERS® is a registered trademark of EIG Services, Inc., and Cerity® is a registered trademark of Cerity Services, Inc. For more information, please visit www.employers.com and www.cerity.com.

    Contact Information

    Michael Pedraja (775) 327-2706 or mpedraja@employers.com

         
    EMPLOYERS HOLDINGS, INC.
    Table of Contents
         
    Page    
         
    1   Consolidated Financial Highlights
         
    2   Summary Consolidated Balance Sheets
         
    3   Summary Consolidated Income Statements
         
    4   Return on Equity
         
    5   Combined Ratios
         
    6   Roll-forward of Unpaid Losses and LAE
         
    7   Consolidated Investment Portfolio
         
    8   Book Value Per Share
         
    9   Earnings Per Share
         
    10   Non-GAAP Financial Measures
         
       
    EMPLOYERS HOLDINGS, INC.
    Consolidated Financial Highlights (unaudited)
    $ in millions, except per share amounts
       
      Three Months Ended
      March 31,
        2025       2024     % change
    Selected financial highlights:          
    Gross premiums written $ 212.1     $ 210.9     1 %
    Net premiums written   210.3       209.1     1  
    Net premiums earned   183.0       184.9     (1 )
    Net investment income   32.1       26.8     20  
    Net income excluding LPT(1)   11.2       26.2     (57 )
    Adjusted net income(1)   21.3       17.2     24  
    Net Income before income taxes   15.9       35.3     (55 )
    Net Income   12.8       28.3     (55 )
    Comprehensive income   34.6       17.4     99  
    Total assets   3,556.9       3,562.8     —  
    Stockholders’ equity   1,075.7       1,018.9     6  
    Stockholders’ equity including the Deferred Gain(2)   1,168.1       1,116.1     5  
    Adjusted stockholders’ equity(2)   1,228.8       1,213.0     1  
    Annualized adjusted return on stockholders’ equity(3)   6.9 %     5.7 %   21 %
    Amounts per share:          
    Cash dividends declared per share $ 0.30     $ 0.28     7 %
    Earnings per diluted share(4)   0.52       1.11     (53 )
    Earnings per diluted share excluding LPT(4)   0.46       1.03     (55 )
    Adjusted earnings per diluted share(4)   0.87       0.67     30  
    Book value per share(2)   44.43       40.20     11  
    Book value per share including the Deferred Gain(2)   48.25       44.04     10  
    Adjusted book value per share(2)   50.75       47.86     6  
    Combined ratio excluding LPT:(5):          
    Loss and loss adjustment expense ratio:          
    Current Year   66.1 %     64.2 %    
    Prior Year   0.7       (0.1 )    
    Loss and loss adjustment expense ratio   66.8 %     64.1 %    
    Commission expense ratio   12.6 %     13.6 %    
    Underwriting expense ratio   23.4 %     25.0 %    
    Combined ratio excluding LPT   102.8 %     102.7 %    
    (1) See Page 3 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
    (2) See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
    (3) See Page 4 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
    (4) See Page 9 for description and calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
    (5) See Pages 5 for details and Page 10 for information regarding our use of Non-GAAP Financial Measures.
       
             
    EMPLOYERS HOLDINGS, INC.
    Summary Consolidated Balance Sheets (unaudited)
    $ in millions, except per share amounts
             
        March 31,
    2025    		   December 31,
    2024
    ASSETS        
    Investments, cash and cash equivalents   $ 2,537.6     $ 2,532.4  
    Accrued investment income     14.6       15.7  
    Premiums receivable, net     377.0       361.3  
    Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE     412.9       417.8  
    Deferred policy acquisition costs     63.8       59.6  
    Deferred income tax asset, net     35.0       38.3  
    Other assets     116.0       116.2  
    Total assets   $ 3,556.9     $ 3,541.3  
             
    LIABILITIES        
    Unpaid losses and LAE   $ 1,792.6     $ 1,808.2  
    Unearned premiums     428.0       402.2  
    Commissions and premium taxes payable     60.3       65.8  
    Deferred Gain     92.4       94.0  
    Other liabilities     107.9       102.4  
    Total liabilities   $ 2,481.2     $ 2,472.6  
             
    STOCKHOLDERS’ EQUITY        
    Common stock and additional paid-in capital   $ 424.7     $ 424.8  
    Retained earnings     1,478.5       1,472.9  
    Accumulated other comprehensive loss     (60.7 )     (82.5 )
    Treasury stock, at cost     (766.8 )     (746.5 )
    Total stockholders’ equity     1,075.7       1,068.7  
    Total liabilities and stockholders’ equity   $ 3,556.9     $ 3,541.3  
             
    Stockholders’ equity including the Deferred Gain (1)   $ 1,168.1     $ 1,162.7  
    Adjusted stockholders’ equity (1)     1,228.8       1,245.2  
    Book value per share (1)   $ 44.43     $ 43.52  
    Book value per share including the Deferred Gain(1)     48.25       47.35  
    Adjusted book value per share (1)     50.75       50.71  
    (1) See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
       
       
    EMPLOYERS HOLDINGS, INC.
    Summary Consolidated Income Statements (unaudited)
    $ in millions
       
      Three Months Ended
      March 31,
        2025       2024  
    Revenues:  
    Net premiums earned $ 183.0     $ 184.9  
    Net investment income   32.1       26.8  
    Net realized and unrealized (losses) gains on investments(1)   (12.8 )     11.4  
    Other income   0.3       —  
    Total revenues   202.6       223.1  
    Expenses:      
    Losses and LAE incurred   (120.7 )     (116.5 )
    Commission expense   (23.0 )     (25.1 )
    Underwriting expenses   (42.9 )     (46.2 )
    Interest and financing expenses   (0.1 )     —  
    Total expenses   (186.7 )     (187.8 )
    Net income before income taxes   15.9       35.3  
    Income tax expense   (3.1 )     (7.0 )
    Net Income   12.8       28.3  
    Unrealized AFS investment gains (losses) arising during the period, net of tax(2)   21.1       (11.6 )
    Reclassification adjustment for net realized AFS investment losses in net income, net of tax(2)   0.7       0.7  
    Total comprehensive income $ 34.6     $ 17.4  
    Net Income $ 12.8     $ 28.3  
    Amortization of the Deferred Gain – losses   (1.6 )     (1.5 )
    Amortization of the Deferred Gain – contingent commission   —       (0.4 )
    LPT contingent commission adjustments   —       (0.2 )
    Net income excluding LPT Agreement (3)   11.2       26.2  
    Net realized and unrealized losses (gains) on investments   12.8       (11.4 )
    Income tax (benefit) expense related to items excluded from Net income   (2.7 )     2.4  
    Adjusted net income $ 21.3     $ 17.2  
    (1) Includes unrealized (losses) gains on equity securities and other investments of $(11.7) million and $12.7 million for the three months ended March 31, 2025 and 2024, respectively.
    (2) AFS = Available for Sale securities.
    (3) See Page 10 regarding our use of Non-GAAP Financial Measures.
       
         
    EMPLOYERS HOLDINGS, INC.
    Return on Equity (unaudited)
    $ in millions
         
        Three Months Ended
        March 31,
          2025       2024  
             
    Net income A $ 12.8     $ 28.3  
    Impact of the LPT Agreement     (1.6 )     (2.1 )
    Net realized and unrealized losses (gains) on investments     12.8       (11.4 )
    Income tax (benefit) expense related to items excluded from Net income     (2.7 )     2.4  
    Adjusted net income (1) B   21.3       17.2  
             
    Stockholders’ equity – end of period   $ 1,075.7     $ 1,018.9  
    Stockholders’ equity – beginning of period     1,068.7       1,013.9  
    Average stockholders’ equity C   1,072.2       1,016.4  
             
    Stockholders’ equity – end of period   $ 1,075.7     $ 1,018.9  
    Deferred Gain – end of period     92.4       97.2  
    Accumulated other comprehensive loss – end of period     76.8       122.6  
    Income taxes related to accumulated other comprehensive loss – end of period     (16.1 )     (25.7 )
    Adjusted stockholders’ equity – end of period     1,228.8       1,213.0  
    Adjusted stockholders’ equity – beginning of period     1,245.2       1,199.1  
    Average adjusted stockholders’ equity (1) D   1,237.0       1,206.1  
             
    Return on stockholders’ equity A / C   1.2 %     2.8 %
    Annualized return on stockholders’ equity     4.8       11.1  
             
    Adjusted return on stockholders’ equity (1) B / D   1.7 %     1.4 %
    Annualized adjusted return on stockholders’ equity (1)     6.9       5.7  
    (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.
       
         
    EMPLOYERS HOLDINGS, INC.
    Combined Ratios (unaudited)
    $ in millions, except per share amounts
         
        Three Months Ended
        March 31,
          2025       2024  
             
    Net premiums earned A $ 183.0     $ 184.9  
    Losses and LAE incurred B   120.7       116.5  
    Amortization of deferred reinsurance gain – losses     1.6       1.5  
    Amortization of deferred reinsurance gain – contingent commission     —       0.4  
    LPT contingent commission adjustments     —       0.2  
    Losses and LAE excluding LPT(1) C   122.3       118.6  
    Prior year loss reserve development     1.3       (0.1 )
    Losses and LAE excluding LPT – current accident year D $ 121.0     $ 118.7  
    Commission expense E $ 23.0     $ 25.1  
    Underwriting expenses F $ 42.9     $ 46.2  
    GAAP combined ratio:        
    Loss and LAE ratio B/A   66.0 %     63.0 %
    Commission expense ratio E/A   12.6       13.6  
    Underwriting expense ratio F/A   23.4       25.0  
    GAAP combined ratio     102.0 %     101.6 %
    Combined ratio excluding LPT:(1)        
    Loss and LAE ratio excluding LPT C/A   66.8 %     64.1 %
    Commission expense ratio E/A   12.6       13.6  
    Underwriting expense ratio F/A   23.4       25.0  
    Combined ratio excluding LPT     102.8 %     102.7 %
    Combined ratio excluding LPT: current accident year:(1)        
    Loss and LAE ratio excluding LPT D/A   66.1 %     64.2 %
    Commission expense ratio E/A   12.6       13.6  
    Underwriting expense ratio F/A   23.4       25.0  
    Combined ratio excluding LPT: current accident year     102.1 %     102.8 %
    (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.
       
       
    EMPLOYERS HOLDINGS, INC.
    Roll-forward of Unpaid Losses and LAE (unaudited)
    $ in millions
       
      Three Months Ended
      March 31,
        2025     2024  
       
    Unpaid losses and LAE at beginning of period $ 1,808.2   $ 1,884.5  
    Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE   412.4     428.4  
    Net unpaid losses and LAE at beginning of period   1,395.8     1,456.1  
    Losses and LAE incurred:      
    Current year losses   121.0     118.7  
    Prior year losses   1.3     (0.1 )
    Total losses incurred   122.3     118.6  
    Losses and LAE paid:      
    Current year losses   8.0     6.8  
    Prior year losses   124.6     117.4  
    Total paid losses   132.6     124.2  
    Net unpaid losses and LAE at end of period   1,385.5     1,450.5  
    Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE   407.1     424.0  
    Unpaid losses and LAE at end of period $ 1,792.6   $ 1,874.5  
                 

    Total losses and LAE shown in the above table exclude amortization of the Deferred Gain and LPT contingent commission adjustments, which totaled $1.6 million and $2.1 million for the three months ended March 31, 2025 and 2024, respectively.

     
    EMPLOYERS HOLDINGS, INC.
    Consolidated Investment Portfolio (unaudited)
    $ in millions
             
        March 31, 2025   December 31, 2024
    Investment Positions:   Cost or Amortized
    Cost (1)    		   Net Unrealized Gain (Loss)   Fair Value   %   Fair Value   %
    Fixed maturity securities   $ 2,165.7   $ (76.9 )   $ 2,087.4   82 %   $ 2,097.4   83 %
    Equity securities     151.4     102.7       254.2   10       259.8   10  
    Short-term investments     —     —       —   —       0.1   —  
    Other invested assets     85.0     10.4       95.4   4       106.6   4  
    Cash and cash equivalents     100.4     —       100.4   4       68.3   3  
    Restricted cash and cash equivalents     0.2     —       0.2   —       0.2   —  
    Total investments and cash   $ 2,502.7   $ 36.2     $ 2,537.6   100 %   $ 2,532.4   100 %
                             
    Breakout of Fixed Maturity Securities:                        
    U.S. Treasuries and agencies   $ 68.0   $ (0.9 )   $ 67.1   3 %   $ 59.3   3 %
    States and municipalities     161.3     (1.6 )     159.7   8       159.3   8  
    Corporate securities     821.8     (33.6 )     788.0   38       803.0   38  
    Mortgage-backed securities     727.1     (36.8 )     689.9   33       684.9   33  
    Asset-backed securities     212.3     —       212.3   10       214.0   10  
    Collateralized loan obligations     26.4     (0.2 )     26.2   1       35.3   2  
    Bank loans and other     148.8     (3.8 )     144.2   7       141.6   7  
    Total fixed maturity securities   $ 2,165.7   $ (76.9 )   $ 2,087.4   100 %   $ 2,097.4   100 %
    Weighted average book yield     4.5%       4.5%
    Average credit quality (S&P)     A+       A+
    Duration     4.3       4.5
    (1) Amortized cost excludes allowance for current expected credit losses of $1.4 million.
       
                     
    EMPLOYERS HOLDINGS, INC.
    Book Value Per Share (unaudited)
    $ in millions, except per share amounts
                     
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024    		   December 31, 2023
    Numerators:                
    Stockholders’ equity A $ 1,075.7     $ 1,068.7     $ 1,018.9     $ 1,013.9  
    Plus: Deferred Gain     92.4       94.0       97.2       99.2  
    Stockholders’ equity including the Deferred Gain (1) B   1,168.1       1,162.7       1,116.1       1,113.1  
    Accumulated other comprehensive loss     76.8       104.5       122.6       108.9  
    Income taxes related to accumulated other comprehensive loss     (16.1 )     (22.0 )     (25.7 )     (22.9 )
    Adjusted stockholders’ equity (1) C $ 1,228.8     $ 1,245.2     $ 1,213.0     $ 1,199.1  
                     
    Denominator (shares outstanding) D   24,210,602       24,556,706       25,343,504       25,369,753  
                     
    Book value per share (1) A / D $ 44.43     $ 43.52     $ 40.20     $ 39.96  
    Book value per share including the Deferred Gain(1) B / D   48.25       47.35       44.04       43.88  
    Adjusted book value per share (1) C / D   50.75       50.71       47.86       47.26  
                     
    Year-over-year change in: (2)                
    Book value per share     13.5 %     11.9 %     14.5 %     18.1 %
    Book value per share including the Deferred Gain     12.3       10.6       13.1       16.3  
    Adjusted book value per share     8.5       9.8       10.8       10.5  
    (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.
    (2) Reflects the twelve month change in book value per share after taking into account dividends declared of $1.20, $1.18, $1.12 and $1.10 for the twelve month periods ended March 31, 2025, December 31, 2024, March 31, 2024 and December 31, 2023, respectively.
       
         
    EMPLOYERS HOLDINGS, INC.
    Earnings Per Share (unaudited)
    $ in millions, except per share amounts
         
        Three Months Ended
        March 31,
          2025       2024  
    Numerators:        
    Net income A $ 12.8     $ 28.3  
    Impact of the LPT Agreement     (1.6 )     (2.1 )
    Net income excluding LPT (1) B   11.2       26.2  
    Net realized and unrealized losses (gains) on investments     12.8       (11.4 )
    Income tax (benefit) expense related to items excluded from Net income     (2.7 )     2.4  
    Adjusted net income (1) C $ 21.3     $ 17.2  
             
    Denominators:        
    Average common shares outstanding (basic) D   24,398,610       25,345,942  
    Average common shares outstanding (diluted) E   24,606,572       25,535,971  
             
    Earnings per share:        
    Basic A / D $ 0.52     $ 1.12  
    Diluted A / E   0.52       1.11  
             
    Earnings per share excluding LPT: (1)        
    Basic B / D $ 0.46     $ 1.03  
    Diluted B / E   0.46       1.03  
             
    Adjusted earnings per share: (1)        
    Basic C / D $ 0.87     $ 0.68  
    Diluted C / E   0.87       0.67  
    (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.
       

    Non-GAAP Financial Measures

    Within this earnings release we present the following measures, each of which are “non-GAAP financial measures.” A reconciliation of these measures to the Company’s most directly comparable GAAP financial measures is included herein. Management believes that these non-GAAP measures are important to the Company’s investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

    The LPT Agreement is a non-recurring transaction that no longer provides any ongoing cash benefits to the Company. Management believes that providing non-GAAP measures that exclude the effects of the LPT Agreement (amortization of deferred reinsurance gain, adjustments to LPT Agreement ceded reserves and adjustments to the contingent commission receivable) is useful in providing investors, analysts and other interested parties a meaningful understanding of the Company’s ongoing underwriting performance.

    Deferred reinsurance gain (Deferred Gain) reflects the unamortized gain from the LPT Agreement. This gain has been deferred and is being amortized using the recovery method, whereby the amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries, except for the contingent profit commission, which was amortized through June 30, 2024, the date of its final determination. Amortization is reflected in losses and LAE incurred.

    Adjusted net income (see Page 3 for calculations) is net income excluding the effects of the LPT Agreement, and net realized and unrealized gains and losses on investments (net of tax), and any miscellaneous non-recurring transactions (net of tax). Management believes that providing this non-GAAP measures is helpful to investors, analysts and other interested parties in identifying trends in the Company’s operating performance because such items have limited significance to its ongoing operations or can be impacted by both discretionary and other economic factors and may not represent operating trends.

    Stockholders’ equity including the Deferred Gain (see Page 8 for calculations) is stockholders’ equity including the Deferred Gain. Management believes that providing this non-GAAP measure is useful in providing investors, analysts and other interested parties a meaningful measure of the Company’s total underwriting capital.

    Adjusted stockholders’ equity (see Page 8 for calculations) is stockholders’ equity including the Deferred Gain, less accumulated other comprehensive income (net of tax). Management believes that providing this non-GAAP measure is useful to investors, analysts and other interested parties since it serves as the denominator to the Company’s adjusted return on stockholders’ equity metric.

    Return on stockholders’ equity and Adjusted return on stockholders’ equity (see Page 4 for calculations). Management believes that these profitability measures are widely used by our investors, analysts and other interested parties.

    Book value per share, Book value per share including the Deferred Gain, and Adjusted book value per share (see Page 8 for calculations). Management believes that these valuation measures are widely used by our investors, analysts and other interested parties.

    Net income excluding LPT (see Page 3 for calculations). Management believes that these performance and underwriting measures are widely used by our investors, analysts and other interested parties.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    DEFIANCE, Ohio, May 01, 2025 (GLOBE NEWSWIRE) — SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the first quarter ended March 31, 2025.

    First Quarter 2025 Highlights Over the First Quarter Prior Year Include:

    • Adjusted net income of $2.7 million, after accounting for $0.7 million of nonrecurring merger expenses, was up 23.2 percent from the prior year adjusted net income of $2.2 million, with adjusted Diluted Earnings Per Share (“DEPS”) of $0.42. Unadjusted net income and EPS were slightly below the prior year quarter.
    • Successful completion of the Marblehead Bank acquisition, adding $56 million of low-cost deposits and $19 million in loans.
    • Interest income of $17.4 million increased by 13.5 percent from $15.3 million reported in the prior year quarter.
    • Loan growth of $96.7 million, or 9.8 percent from the prior-year quarter, with growth from the linked quarter of $41.6 million. This was our fourth consecutive quarter of sequential expanding loan growth, year over year. Growth adjusted for the Marblehead acquisition would be $78.2 and $23.1 million, from the linked quarter.
    • Deposit growth of $159.7 million, or 14.4 percent from the prior-year quarter, with growth from the linked quarter of $119.4 million. Growth adjusted for the Marblehead acquisition would be $103.7 and $63.4 million, from the linked quarter.
    • Tangible book value (“TBV”) per share ended the quarter at $15.79 up $0.86 per share or 5.8 percent from the prior year quarter. Absent the per share dilution from the acquisition of $0.87, TBV would have been up $1.73 per share or 11.6 percent.
    Earnings Highlights Three Months Ended
    ($ in thousands, except per share & ratios) Mar. 2025 Mar. 2024 % Change
    Operating revenue $ 15,386   $ 13,131   17.2 %
    Interest income   17,372     15,300   13.5 %
    Interest expense   6,093     6,120   -0.4 %
    Net interest income   11,279     9,180   22.9 %
    Provision for credit losses   387     –   N/M
    Noninterest income   4,107     3,951   3.9 %
    Noninterest expense   12,410     10,282   20.7 %
    Net income   2,158     2,368   -8.9 %
    Merger adjusted Earnings per diluted share   0.42     0.33   27.3 %
    Earnings per diluted share   0.33     0.35   -5.7 %
    Merger adjusted Return on Avg. Assets   0.76 %   0.67%   13.4 %
    Return on average assets   0.60 %   0.71%   -15.5 %
    Merger adjusted Return on Avg. Equity   8.35 %   7.26%   15.0 %
    Return on average equity   6.63 %   7.72%   -14.1 %

    “Our first quarter results highlight the value of our growth strategy, even in the midst of temporary economic uncertainty,” said Mark A. Klein, Chairman, President, and CEO. “Merger adjusted net income for the quarter was $2.7 million, a 22.3 percent increase from the prior-year quarter, with the GAAP EPS of $0.33 slightly down from the prior year. The successful closing of the acquisition in the first quarter significantly strengthened our liquidity position through their low-cost deposit base and further expanded our market presence in Northern Ohio. This marks an important milestone in executing our long-term growth strategy to grow organically and through M & A.”

    Interest income for the quarter grew by 13.5 percent to $17.4 million compared to the previous year, driven by continued strong loan growth. Total loans increased by $96.7 million, compared to the prior year, and by $41.5 million from the linked quarter. Adjusted for the Marblehead acquisition, total loan growth would have been $78.2 and $23.1 million, respectively. Deposits rose by $158.9 million, or 14.3 percent, to $1.27 billion, a result of the acquisition and a testament to the trust our clients place in us. Adjusted for the acquisition, deposit growth would have been $102.9 and $62.6 million, respectively.

    RESULTS OF OPERATIONS

    Consolidated Revenue

    In the first quarter of 2025, total operating revenue increased to $15.4 million, a 17.2 percent rise from $13.1 million in the prior year and a slight 0.1 percent decrease from the linked quarter, driven by growth in both net interest income and noninterest income. Net interest income reached $11.3 million, a strong 22.9 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.7 million to $15.4 million. Deposit costs increased by 5.1 percent to $5.4 million, but were largely offset by decreases in interest expense on other funding sources, resulting in a 0.4 percent decrease in total interest expense compared to the prior year quarter. As a result, the net interest margin expanded by 41 basis points year-over-year to 3.40 percent, reflecting the continued strength of our interest-earning assets and disciplined management of our funding costs. Noninterest income for the quarter increased by 3.9 percent year-over-year to $4.1 million due to improvements in gains on sale and title insurance, partially offset by decreases in mortgage loan servicing fees. Looking ahead, we remain focused on maintaining a balanced strategy that drives sustainable revenue growth while effectively managing costs, ensuring consistent value creation for our shareholders.

    Mortgage Loan Business

    Net mortgage banking revenue for the quarter reached $1.5 million, down $84,000 from the prior-year quarter. Loan servicing fees added $894,000 to revenue, reflecting an increase of $39,000 from the prior year quarter. The OMSR net valuation adjustment for the first quarter of 2025 was a positive $11,000 compared to a positive $181,000 in the first quarter of 2024.

                 
    Mortgage Banking            
    ($ in thousands) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Prior Year
    Growth
    Mortgage originations $ 39,775   $ 72,534   $ 70,715   $ 75,110   $ 42,912   $ (3,137 )
    Mortgage sales   39,279     62,301     61,271     55,835     36,623     2,656  
    Mortgage servicing portfolio   1,432,184     1,427,318     1,406,273     1,389,805     1,371,713     60,471  
    Mortgage servicing rights   14,965     14,868     14,357     14,548     14,191     774  
                 
                 
    Revenue            
    Loan servicing fees   894     886     874     862     855     39  
    OMSR amortization   (294 )   (358 )   (370 )   (335 )   (273 )   (21 )
    Net administrative fees   600     528     504     527     582     18  
    OMSR valuation adjustment   11     288     (465 )   38     181     (170 )
    Net loan servicing fees   611     816     39     565     763     (152 )
    Gain on sale of mortgages   849     1,196     1,311     1,277     781     68  
    Mortgage banking revenue, net $ 1,460   $ 2,012   $ 1,350   $ 1,842   $ 1,544   $ (84 )
                 

    Noninterest Income and Noninterest Expense

    “Noninterest income for the first quarter of 2025 totaled $4.1 million, up $156,000 or 3.9 percent from the prior-year quarter, primarily due to increased gains on sales of mortgage loans and OSMR, and increased title service and other revenue. Compared to the prior-year quarter, gains on sales of mortgage loans and OSMR grew modestly by $68,000 year over year, and title insurance revenue added $131,000, reflecting the consistent benefit of our revenue diversification strategy,” Mr. Klein noted.

                   
    Noninterest Income/Noninterest Expense          
    ($ in thousands, except ratios)   Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Prior Year
    Growth
    Noninterest Income (NII)   $ 4,107   $ 4,557   $ 4,123   $ 4,386   $ 3,951   $ 156  
    NII / Total Revenue     26.7%     29.5%     28.8%     31.5%     30.1%     -3.4%  
    NII / Average Assets     1.1%     1.3%     1.2%     1.3%     1.2%     -0.1%  
    Total Revenue Growth     17.2%     2.2%     4.5%     -0.6%     -6.1%     23.3%  
                                           
    Noninterest Expense (NIE)   $ 12,410   $ 11,003   $ 11,003   $ 10,671   $ 10,282   $ 2,128  
    Efficiency Ratio     80.0%     71.1%     76.8%     75.9%     78.2%     1.8%  
    NIE / Average Assets     3.4%     3.2%     3.2%     3.2%     3.1%     0.3%  
    Net Noninterest Expense/Avg. Assets   -2.3%     -1.9%     -2.0%     -1.9%     -1.9%     -0.4%  
    Total Expense Growth     20.7%     6.1%     5.0%     3.2%     -4.6%     25.3%  

    Noninterest expense for the first quarter of 2025 was impacted by the one-time merger related expenses of $726,000. Adjusting for these expenses and the $300,000 in Marblehead operating expenses for the quarter, total operating costs were up just 3.5 percent from the linked quarter and 10.7 percent.

    “Our efficiency ratio in the first quarter of 2025 was 76.0 percent when we factor out the merger related costs, which was an improvement compared to the prior year.” stated Mr. Klein.

    Balance Sheet

    As of March 31, 2025, SB Financial reported total assets of $1.50 billion, higher from both the linked quarter and the previous year. This growth was primarily driven by a robust increase in the loan portfolio, which reached $1.09 billion, marking a $96.7 million or 9.8 percent increase year over year. Loan growth also included $18.7 million in loans added with the completion of the acquisition. Cash increased by $78.5 million from the prior year, including $35 million added from the liquidation of the acquired investment portfolio.

    Total deposits increased to $1.27 billion, growing $158.9 million or 14.3 percent year over year, including $56 million in low-cost deposits from the acquisition and $102.9 million in organic deposit growth reflecting SB Financial’s successful efforts in deposit gathering and customer engagement. Shareholders’ equity ended the quarter at $131.5 million, representing a $7.8 million increase from the prior year. This growth reflects management’s commitment to enhancing shareholder value and the Company’s disciplined approach to capital management.

    During the first quarter, SB Financial repurchased 26,446 shares, less than previous quarters as the average price was above our target range. This reflects the Company’s dedication to returning value to shareholders through dividends and share repurchases while retaining adequate capital to support our long-term growth.

    “As we progress through the remainder of 2025, our balance sheet strength and strategic management of resources highlight our long-term strategic growth ambitions, both organically and through successful acquisitions,” said Mr. Klein, Chairman, President, and CEO. “Even in the current challenging rate environment, we achieved our fourth consecutive quarter of loan growth, with balances increasing by $96.7 million from the previous year, which included $78.2 million of organic loan growth. This performance underscores the strength of our deep client relationships and our continued competitiveness in the market. Our strong asset quality, supported by top-decile coverage ratios, remains a cornerstone of our financial stability, which we will leverage to take advantage of emerging opportunities while maintaining our focus on operational excellence. Looking ahead, we are committed to driving shareholder value and sustaining robust financial performance as the economic landscape stabilizes.”

                 
    Loan Balances            
    ($ in thousands, except ratios) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Annual
    Growth
    Commercial $ 125,878   $ 124,764   $ 123,821   $ 123,287   $ 120,016   $ 5,862  
    % of Total   11.6%     11.9%     12.0%     12.3%     12.1%     4.9%  
    Commercial RE   509,518     479,573     459,449     434,967     429,362     80,156  
    % of Total   46.8%     45.8%     44.6%     43.3%     43.3%     18.7%  
    Agriculture   61,443     64,680     64,887     64,329     62,365     (922 )
    % of Total   5.6%     6.2%     6.3%     6.4%     6.3%     -1.5%  
    Residential RE   319,307     308,378     314,010     316,233     314,668     4,639  
    % of Total   29.3%     29.5%     30.5%     31.5%     31.7%     1.5%  
    Consumer & Other   72,128     69,340     67,788     66,574     65,141     6,987  
    % of Total   6.6%     6.6%     6.6%     6.6%     6.6%     10.7%  
    Total Loans $ 1,088,274   $ 1,046,735   $ 1,029,955   $ 1,005,390   $ 991,552   $ 96,722  
    Total Growth Percentage                 9.8%  
                 
                 
    Deposit Balances            
    ($ in thousands, except ratios) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Annual
    Growth
    Non-Int DDA $ 240,446   $ 232,155   $ 222,425   $ 208,244   $ 219,395   $ 21,051  
    % of Total   18.9%     20.1%     19.2%     18.7%     19.7%     9.6%  
    Interest DDA   208,583     201,085     202,097     190,857     169,171     39,412  
    % of Total   16.4%     17.4%     17.4%     17.1%     15.2%     23.3%  
    Savings   285,902     237,987     241,761     231,855     244,157     41,745  
    % of Total   22.5%     20.6%     20.8%     20.8%     21.9%     17.1%  
    Money Market   257,013     222,161     228,182     225,650     221,362     35,651  
    % of Total   20.2%     19.3%     19.7%     20.2%     19.9%     16.1%  
    Time Deposits   279,276     259,217     265,068     258,582     258,257     21,019  
    % of Total   22.0%     22.5%     22.9%     23.2%     23.2%     8.1%  
    Total Deposits $ 1,271,220   $ 1,152,605   $ 1,159,533   $ 1,115,188   $ 1,112,342   $ 158,878  
    Total Growth Percentage                 14.3%  
                 

    Asset Quality

    As of March 31, 2025, SB Financial continued to demonstrate strong asset quality metrics. Nonperforming assets totaled $6.1 million, representing 0.41 percent of total assets, an increase of $3.2 million compared to $2.9 million or 0.22 percent of total assets reported in the prior year. This year-over-year growth was driven by weakness in three credits that we continue to expect to resolve favorably in 2025.

    The allowance for credit losses remained strong at 1.41 percent of total loans, providing 254.4 percent coverage of nonperforming loans, a level slightly lower than the linked quarter but indicative of our conservative approach to risk management amid the current environment. The net loan charge-offs to average loans ratio remained modest at 3 basis points, improving from 7 basis points in the prior quarter and consistent with the year-ago period, reflecting disciplined credit practices and effective collateral management.

    “Our asset quality metrics fully illustrate the diligence of our approach and commitment to disciplined risk management,” stated Mark Klein, Chairman, President, and CEO. “While we observed a slight uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and continued low charge-off levels underscore the quality of our loan portfolio. We remain focused on balancing our conservative approach in maintaining the integrity of our credit processes with the need to effectively manage our balance sheet for long-term growth.”

                 
    Nonperforming Assets                
    ($ in thousands, except ratios) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024   Annual
    Change
    Commercial & Agriculture $ 3,418   $ 2,927   $ 2,899   $ 2,781   $ 897   $ 2,521  
    % of Total Com./Ag. loans   1.82%     1.55%     1.54%     1.48%     0.49%     281.0%  
    Commercial RE   798     807     813     475     49     749  
    % of Total CRE loans   0.16%     0.17%     0.18%     0.11%     0.01%     1528.6%  
    Residential RE   1,608     1,539     1,536     1,247     1,295     313  
    % of Total Res. RE loans   0.50%     0.50%     0.49%     0.39%     0.41%     24.2%  
    Consumer & Other   227     243     270     231     193     34  
    % of Total Con./Oth. loans   0.31%     0.35%     0.40%     0.35%     0.30%     17.6%  
    Total Nonaccruing Loans   6,051     5,516     5,518     4,734     2,434     3,617  
    % of Total loans   0.56%     0.53%     0.54%     0.47%     0.25%     148.6%  
    Foreclosed Assets and Other Assets   73     –     –     510     510     (437 )
    Total Change (%)             -85.7%  
    Total Nonperforming Assets $ 6,124   $ 5,516   $ 5,518   $ 5,244   $ 2,944   $ 3,180  
    % of Total assets   0.41%     0.40%     0.40%     0.39%     0.22%     108.02%  


    Webcast and Conference Call

    The Company will hold the first quarter 2025 earnings conference call and webcast on May 2, 2025, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

    About SB Financial Group

    Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 26 offices: 24 in ten Ohio counties and two in Northeast, Indiana, and 26 ATMs. State Bank has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and title opinions throughout the Tri-State and Kentucky. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.

    Forward-Looking Statements

    Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

    Non-GAAP Financial Measures

    This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the OMSR valuation adjustment and any gain on sale of assets from net income to report a non-GAAP adjusted net income level. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

    Investor Contact Information:

    Mark A. Klein
    Chairman, President and
    Chief Executive Officer
    Mark.Klein@YourStateBank.com

    Anthony V. Cosentino
    Executive Vice President and
    Chief Financial Officer
    Tony.Cosentino@YourStateBank.com

        SB FINANCIAL GROUP, INC.
        CONSOLIDATED BALANCE SHEETS – (Unaudited)
                               
              March   December   September   June   March
          ($ in thousands)     2025       2024       2024       2024       2024  
                               
    ASSETS                    
      Cash and due from banks   $ 105,145     $ 25,928     $ 49,348     $ 21,983     $ 26,602  
      Interest bearing time deposits     1,565       1,565       1,706       2,417       2,417  
      Available-for-sale securities     199,721       201,587       211,511       207,856       213,239  
      Loans held for sale     4,286       6,770       8,927       7,864       4,730  
      Loans, net of unearned income     1,088,274       1,046,735       1,029,955       1,005,390       991,552  
      Allowance for credit losses     (15,391 )     (15,096 )     (15,278 )     (15,612 )     (15,643 )
      Premises and equipment, net     21,875       20,456       20,715       20,860       20,985  
      Federal Reserve and FHLB Stock, at cost     5,340       5,223       5,223       5,204       6,512  
      Foreclosed assets and other assets     73       –       –       510       510  
      Interest receivable     5,072       4,908       4,842       4,818       3,706  
      Goodwill     27,158       23,239       23,239       23,239       23,239  
      Cash value of life insurance     30,871       30,685       30,488       30,294       30,103  
      Mortgage servicing rights     14,965       14,868       14,357       14,548       14,191  
      Other assets     12,048       12,649       8,916       12,815       13,869  
                               
          Total assets   $ 1,501,002     $ 1,379,517     $ 1,393,949     $ 1,342,186     $ 1,336,012  
                               
                               
                               
    LIABILITIES AND SHAREHOLDERS’ EQUITY                    
      Deposits                    
        Non interest bearing demand   $ 240,446     $ 232,155     $ 222,425     $ 208,244     $ 219,395  
        Interest bearing demand     208,583       201,085       202,097       190,857       169,171  
        Savings     285,902       237,987       241,761       231,855       244,157  
        Money market     257,013       222,161       228,182       225,650       221,362  
        Time deposits     279,276       259,217       265,068       258,582       258,257  
                               
          Total deposits     1,271,220       1,152,605       1,159,533       1,115,188       1,112,342  
                               
      Short-term borrowings     11,058       10,585       15,240       15,178       12,916  
      Federal Home Loan Bank advances     35,000       35,000       35,000       35,000       35,000  
      Trust preferred securities     10,310       10,310       10,310       10,310       10,310  
      Subordinated debt net of issuance costs     19,702       19,690       19,678       19,666       19,654  
      Interest payable     2,634       2,351       3,374       2,944       2,772  
      Other liabilities     19,552       21,468       17,973       18,421       19,295  
                               
          Total liabilities     1,369,476       1,252,009       1,261,108       1,216,707       1,212,289  
                               
      Shareholders’ Equity                    
        Common stock     61,319       61,319       61,319       61,319       61,319  
        Additional paid-in capital     14,955       15,194       15,090       15,195       14,978  
        Retained earnings     117,397       116,186       113,515       112,104       109,938  
        Accumulated other comprehensive loss     (26,872 )     (30,234 )     (24,870 )     (31,801 )     (31,547 )
        Treasury stock     (35,273 )     (34,957 )     (32,213 )     (31,338 )     (30,965 )
                               
          Total shareholders’ equity     131,526       127,508       132,841       125,479       123,723  
                               
          Total liabilities and shareholders’ equity $ 1,501,002     $ 1,379,517     $ 1,393,949     $ 1,342,186     $ 1,336,012  
    SB FINANCIAL GROUP, INC.
    CONSOLIDATED STATEMENTS OF INCOME – (Unaudited)
                             
    ($ in thousands, except per share & ratios)   At and for the Three Months Ended
                             
            March   December   September   June   March
    Interest income      2025     2024       2024     2024       2024  
      Loans                    
      Taxable   $ 15,244   $ 14,920     $ 14,513   $ 13,883     $ 13,547  
      Tax exempt     115     122       127     124       123  
      Securities                    
      Taxable     1,169     1,178       1,192     1,226       1,274  
      Tax exempt     38     35       37     37       37  
      Other interest income     806     592       679     384       319  
                             
        Total interest income     17,372     16,847       16,548     15,654       15,300  
                             
    Interest expense                      
      Deposits     5,352     5,169       5,568     5,208       5,090  
      Repurchase agreements & other     24     41       43     36       34  
      Federal Home Loan Bank advances   362     369       369     370       613  
      Trust preferred securities     160     177       187     187       188  
      Subordinated debt     195     194       195     194       195  
                             
        Total interest expense     6,093     5,950       6,362     5,995       6,120  
                             
                             
    Net interest income     11,279     10,897       10,186     9,659       9,180  
                             
      Provision for credit losses     387     (76 )     200     –       –  
                             
    Net interest income after provision                    
      for loan losses       10,892     10,973       9,986     9,659       9,180  
                             
    Noninterest income                    
      Wealth management fees     864     916       882     848       865  
      Customer service fees     879     842       870     875       880  
      Gain on sale of mtg. loans & OMSR   849     1,196       1,311     1,277       781  
      Mortgage loan servicing fees, net     611     816       39     565       763  
      Gain on sale of non-mortgage loans   15     10       20     105       10  
      Title insurance revenue     397     478       485     406       266  
      Net gain on sales of securities     –     –       –     –       –  
      Gain (loss) on sale of assets     –     –       200     –       –  
      Other     492     299       316     310       386  
                             
        Total noninterest income     4,107     4,557       4,123     4,386       3,951  
                             
    Noninterest expense                    
      Salaries and employee benefits     6,237     6,185       6,057     6,009       5,352  
      Net occupancy expense     893     702       706     707       769  
      Equipment expense     1,072     1,127       1,069     1,060       1,077  
      Data processing fees     1,439     821       758     727       769  
      Professional fees     1,034     895       659     615       758  
      Marketing expense     165     207       241     176       197  
      Telephone and communication expense     139     136       128     156       105  
      Postage and delivery expense     137     116       145     89       97  
      State, local and other taxes     224     224       208     230       245  
      Employee expense     174     168       228     159       178  
      Other expenses     896     422       804     743       735  
                             
        Total noninterest expense     12,410     11,003       11,003     10,671       10,282  
                             
                             
    Income before income tax expense     2,589     4,527       3,106     3,374       2,849  
                             
      Income tax expense     431     892       752     261       481  
                             
    Net income       $ 2,158   $ 3,635     $ 2,354   $ 3,113     $ 2,368  
                             
    Common share data:                    
      Basic earnings per common share   $ 0.33   $ 0.55     $ 0.35   $ 0.47     $ 0.35  
      Diluted earnings per common share $ 0.33   $ 0.55     $ 0.35   $ 0.47     $ 0.35  
                             
    Average shares outstanding (in thousands):                    
      Basic:     6,481     6,575       6,660     6,692       6,715  
      Diluted:     6,502     6,599       6,675     6,700       6,723  
    SB FINANCIAL GROUP, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS – (Unaudited)
                         
    ($ in thousands, except per share & ratios) At and for the Three Months Ended
                         
        March   December   September   June   March
    SUMMARY OF OPERATIONS     2025       2024       2024       2024       2024  
                         
    Net interest income   $ 11,279     $ 10,897     $ 10,186     $ 9,659     $ 9,180  
    Tax-equivalent adjustment     41       42       44       43       43  
    Tax-equivalent net interest income     11,320       10,939       10,230       9,702       9,223  
    Provision for credit loss     387       (76 )     200       –       –  
    Noninterest income     4,107       4,557       4,123       4,386       3,951  
    Total operating revenue     15,386       15,454       14,309       14,045       13,131  
    Noninterest expense     12,410       11,003       11,003       10,671       10,282  
    Pre-tax pre-provision income     2,976       4,451       3,306       3,374       2,849  
    Net income     2,158       3,635       2,354       3,113       2,368  
                         
    PER SHARE INFORMATION:                    
    Basic earnings per share (EPS)     0.33       0.55       0.35       0.47       0.35  
    Diluted earnings per share     0.33       0.55       0.35       0.47       0.35  
    Common dividends     0.145       0.145       0.140       0.140       0.135  
    Book value per common share     20.29       19.64       20.05       18.80       18.46  
    Tangible book value per common share (TBV)     15.79       16.00       16.49       15.26       14.93  
    Market price per common share     20.82       20.91       20.56       14.00       13.78  
    Market price to TBV     131.8 %     130.7 %     124.7 %     91.8 %     92.3 %
    Market price to trailing 12 month EPS     12.2       12.1       11.8       7.9       7.9  
                         
    PERFORMANCE RATIOS:                    
    Return on average assets (ROAA)     0.60 %     1.04 %     0.68 %     0.93 %     0.71 %
    Pre-tax pre-provision ROAA     0.83 %     1.28 %     0.96 %     1.01 %     0.86 %
    Return on average equity (ROE)     6.63 %     11.13 %     7.32 %     10.16 %     7.72 %
    Return on average tangible equity     8.32 %     13.58 %     8.97 %     12.59 %     9.55 %
    Efficiency ratio     80.00 %     71.09 %     76.78 %     75.86 %     78.17 %
    Earning asset yield     5.23 %     5.18 %     5.16 %     5.02 %     4.97 %
    Cost of interest bearing liabilities     2.32 %     2.36 %     2.53 %     2.47 %     2.55 %
    Net interest margin     3.40 %     3.35 %     3.17 %     3.10 %     2.99 %
    Tax equivalent effect     0.01 %     0.01 %     0.02 %     0.01 %     0.01 %
    Net interest margin, tax equivalent     3.41 %     3.36 %     3.19 %     3.11 %     3.00 %
    Non interest income/Average assets     1.14 %     1.31 %     1.20 %     1.31 %     1.19 %
    Non interest expense/Average assets     3.45 %     3.15 %     3.20 %     3.18 %     3.08 %
    Net noninterest expense/Average assets     -2.31 %     -1.85 %     -2.00 %     -1.87 %     -1.90 %
                         
    ASSET QUALITY RATIOS:                    
    Gross charge-offs     87       195       29       –       66  
    Recoveries     2       13       2       16       9  
    Net charge-offs     85       182       27       (16 )     57  
    Nonperforming loans/Total loans     0.56 %     0.53 %     0.54 %     0.47 %     0.25 %
    Nonperforming assets/Loans & OREO     0.56 %     0.53 %     0.54 %     0.52 %     0.30 %
    Nonperforming assets/Total assets     0.41 %     0.40 %     0.40 %     0.39 %     0.22 %
    Allowance for credit loss/Nonperforming loans     254.35 %     273.68 %     276.83 %     329.78 %     642.69 %
    Allowance for credit loss/Total loans     1.41 %     1.44 %     1.48 %     1.55 %     1.58 %
    Net loan charge-offs/Average loans (ann.)     0.03 %     0.07 %     0.01 %     (0.01 %)     0.02 %
                         
    CAPITAL & LIQUIDITY RATIOS:                    
    Loans/ Deposits     85.61 %     90.81 %     88.82 %     90.15 %     89.14 %
    Equity/ Assets     8.76 %     9.24 %     9.53 %     9.35 %     9.26 %
    Tangible equity/Tangible assets     6.96 %     7.66 %     7.97 %     7.72 %     7.63 %
    Common equity tier 1 ratio (Bank)     12.35 %     13.43 %     13.19 %     13.98 %     13.84 %
                         
    END OF PERIOD BALANCES                    
    Total assets     1,501,002       1,379,517       1,393,949       1,342,186       1,336,012  
    Total loans     1,088,274       1,046,735       1,029,955       1,005,390       991,552  
    Deposits     1,271,220       1,152,605       1,159,533       1,115,188       1,112,342  
    Shareholders equity     131,526       127,508       132,841       125,479       123,723  
    Goodwill and intangibles     29,125       23,597       23,613       23,630       23,646  
    Tangible equity     102,401       103,911       109,228       101,849       100,077  
    Mortgage servicing portfolio     1,432,184       1,427,318       1,406,273       1,389,805       1,371,713  
    Wealth/Brokerage assets under care     519,158       547,697       557,724       525,713       525,517  
    Total assets under care     3,452,344       3,354,532       3,357,946       3,257,704       3,233,242  
    Full-time equivalent employees     262       252       248       249       245  
    Period end common shares outstanding     6,483       6,494       6,624       6,676       6,702  
    Market capitalization (all)     134,982       135,780       136,189       93,458       92,359  
                         
    AVERAGE BALANCES                    
    Total assets     1,459,896       1,395,473       1,376,849       1,342,847       1,333,236  
    Total earning assets     1,346,354       1,301,872       1,283,407       1,246,099       1,230,736  
    Total loans     1,076,328       1,040,580       1,018,262       1,005,018       993,310  
    Deposits     1,227,449       1,163,531       1,145,964       1,120,367       1,091,803  
    Shareholders equity     131,944       130,647       128,608       122,510       123,058  
    Goodwill and intangibles     26,714       23,605       23,621       23,638       23,654  
    Tangible equity     105,230       107,042       104,987       98,872       99,404  
    Average basic shares outstanding     6,481       6,575       6,660       6,692       6,715  
    Average diluted shares outstanding     6,502       6,599       6,675       6,700       6,723  
    SB FINANCIAL GROUP, INC.
      Rate Volume Analysis – (Unaudited)
      For the Three Months Ended Mar. 31, 2025 and 2024
               
      ($ in thousands) Three Months Ended Mar. 31, 2025     Three Months Ended Mar. 31, 2024
        Average   Average     Average   Average
    Assets Balance Interest Rate     Balance Interest Rate
                       
      Taxable securities $ 196,880   $ 1,276 2.63 %     $ 210,252   $ 1,413 2.70 %
      Overnight Cash   66,460     699 4.27 %       20,729     180 3.48 %
      Nontaxable securities   6,686     38 2.30 %       6,445     37 2.30 %
      Loans, net   1,076,328     15,359 5.79 %       993,310     13,670 5.52 %
                       
      Total earning assets   1,346,354     17,372 5.23 %       1,230,736     15,300 4.99 %
                       
      Cash and due from banks   10,339             4,512      
      Allowance for loan losses   (15,238 )           (15,830 )    
      Premises and equipment   21,082             21,281      
      Other assets   97,359             92,537      
                       
      Total assets $ 1,459,896           $ 1,333,236      
                       
    Liabilities                
      Savings, MMDA and interest bearing demand $ 709,324   $ 2,959 1.69 %     $ 605,243   $ 2,525 1.67 %
      Time deposits   276,253     2,393 3.51 %       258,592     2,565 3.98 %
      Repurchase agreements & other   13,106     24 0.74 %       15,993     34 0.85 %
      Advances from Federal Home Loan Bank   35,044     362 4.19 %       51,030     613 4.82 %
      Trust preferred securities   10,310     160 6.29 %       10,310     188 7.31 %
      Subordinated debt   19,694     195 4.02 %       19,646     195 3.98 %
                       
      Total interest bearing liabilities   1,063,731     6,093 2.32 %       960,814     6,120 2.55 %
                       
      Non interest bearing demand   241,872     –         227,968     –  
                       
      Total funding   1,305,603     1.89 %       1,188,782     2.06 %
            44.20 %         1  
      Other liabilities   22,349             21,396      
                       
      Total liabilities   1,327,952             1,210,178      
                       
      Equity   131,944             123,058      
                       
      Total liabilities and equity $ 1,459,896           $ 1,333,236      
                       
      Net interest income   $ 11,279         $ 9,180  
                       
      Net interest income as a percent of average interest-earning assets – GAAP measure 3.40 %         2.99 %
                       
      Net interest income as a percent of average interest-earning assets – non GAAP 3.41 %         3.00 %
      – Computed on a fully tax equivalent (FTE) basis             
    Non-GAAP reconciliation Three Months Ended
           
    ($ in thousands, except per share & ratios) Mar. 31, 2025   Mar. 31, 2024
           
    Total Operating Revenue $ 15,386     $ 13,131  
    Adjustment to (deduct)/add OMSR recapture/impairment *   (11 )     (181 )
           
    Adjusted Total Operating Revenue   15,375       12,950  
           
           
    Total Operating Expense $ 12,410     $ 10,282  
    Adjustment for merger expenses   (726 )     –  
           
    Adjusted Total Operating Expense   11,684       10,282  
           
           
    Income before Income Taxes   2,589       2,849  
    Adjustment for OMSR*/Merger Expenses   715       (181 )
           
    Adjusted Income before Income Taxes   3,304       2,668  
           
           
    Provision for Income Taxes   431       481  
    Adjustment for OMSR/Merger Expenses **   150       (38 )
           
    Adjusted Provision for Income Taxes   581       443  
           
           
    Net Income   2,158       2,368  
    Adjustment for OMSR*/Merger Expenses   565       (143 )
           
    Adjusted Net Income   2,723       2,225  
           
           
    Diluted Earnings per Share   0.33       0.35  
    Adjustment for OMSR*/Merger Expenses   0.09       (0.02 )
           
    Adjusted Diluted Earnings per Share $ 0.42     $ 0.33  
           
           
    Return on Average Assets   0.60 %     0.71 %
    Adjustment for OMSR*/Merger Expenses   0.15 %     -0.04 %
           
    Adjusted Return on Average Assets   0.75 %     0.67 %
           
    *valuation adjustment to the Company’s mortgage servicing rights    
           
    **tax effect is calculated using a 21% statutory federal corporate income tax rate

    The MIL Network –

  • MIL-OSI: Mercury Acquires Star Lab to Advance Its Leadership Position in Secure Processing

    Source: GlobeNewswire (MIL-OSI)

    ANDOVER, Mass., May 01, 2025 (GLOBE NEWSWIRE) — Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing to the edge, today announced the closure of an agreement that will further advance the company’s leadership position in secure processing capabilities for aerospace and defense applications.

    Mercury has completed the acquisition of Star Lab, a subsidiary of Wind River Systems, Inc., that provides anti-tamper and cybersecurity software solutions designed to protect mission-critical processors from advanced attacks. Mercury has worked with Star Lab for more than a decade, leveraging its technology in deployed and awarded Common Processing Architecture and BuiltSECURE™ products, which mitigate reverse engineering and safeguard confidential data from adversarial threats even when a system has been compromised. This unique technology is required across many defense applications in order to deter, impede, detect, and respond to the exploitation of critical program information.

    Star Lab software is readily and easily integrated with many other Mercury products to provide unique and valuable cybersecurity protection for customers. The acquisition will enhance a wide range of Mercury products and solutions, such as rugged servers, embedded processing cards, mixed signal cards, avionics, and integrated processing solutions. Star Lab will join Mercury’s Processing Technologies business unit.

    “Mercury is a leader in secure processing technologies for aerospace and defense platforms, with unique expertise and IP related to advanced cryptography, secure boot, and physical protection technologies,” said Tom Smelker, Mercury’s Senior Vice President of Processing Technologies. “As holistic security becomes increasingly essential for government missions, the acquisition of Star Lab will allow Mercury to deliver an expanded portfolio of fully integrated security solutions to our customers and partners.”

    Mercury Systems – Innovation that matters® 
    Mercury Systems is a technology company that delivers mission-critical processing power to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has 23 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)

    Forward-Looking Safe Harbor Statement
    This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company’s focus on enhanced execution of the Company’s strategic plan. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, including tariffs, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company’s products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, adherence to required manufacturing standards, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, changes in tax rates or tax regulations, such as the deductibility of internal research and development, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the dispute arising with the former CEO over his resignation, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 28, 2024 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

    INVESTOR CONTACT
    Tyler Hojo
    Vice President, Investor Relations
    Tyler.Hojo@mrcy.com

    MEDIA CONTACT
    Turner Brinton
    Senior Director, Corporate Communications
    Turner.Brinton@mrcy.com

    The MIL Network –

  • MIL-OSI: Ready Capital Corporation Announces First Quarter 2025 Results and Webcast Call

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, May 01, 2025 (GLOBE NEWSWIRE) — Ready Capital Corporation (NYSE: RC) (the “Company”) today announced that the Company will release its first quarter 2025 financial results after the New York Stock Exchange closes on Thursday, May 8, 2025. Management will host a webcast and conference call on Friday, May 9, 2025 at 8:30 a.m. Eastern Time to provide a general business update and discuss the financial results for the quarter ended March 31, 2025. 

    Webcast:
    The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. The webcast of the conference call will be available in the Investor Relations section of the Company’s website at www.readycapital.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

    Dial-in:
    The conference call can be accessed by dialing 877-407-0792 (domestic) or 201-689-8263 (international).

    Replay:
    A replay of the call will also be available on the Company’s website approximately two hours after the live call through May 23, 2025.  To access the replay, dial 844-512-2921 (domestic) or 412-317-6671 (international). The replay pin number is 13750797.

    About Ready Capital Corporation

    Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program and government guaranteed loans focused on the United States Department of Agriculture. Headquartered in New York, New York, the Company employs approximately 500 professionals nationwide.

    Contact
    Investor Relations
    Ready Capital Corporation
    212-257-4666
    InvestorRelations@readycapital.com

    The MIL Network –

  • MIL-OSI: Runway Growth Finance Corp. Reschedules Release of First Quarter 2025 Financial Results and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    MENLO PARK, Calif., May 01, 2025 (GLOBE NEWSWIRE) — Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced that it has rescheduled its previously announced release of first quarter 2025 financial results to after market close on Monday, May 12, 2025. Runway Growth will now host a conference call and simultaneous webcast to discuss its first quarter 2025 financial results on a conference call that day at 2:00 p.m. PT (5:00 p.m. ET).

    To participate in the conference call or webcast, participants should register online at the Runway Growth Investor Relations website. Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. The earnings call can also be accessed through the following links:

    A replay of the webcast will be available two hours after the call and archived on the same web page for 90 days.

    About Runway Growth Finance Corp.
    Runway Growth is a growing specialty finance company focused on providing flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity. Runway Growth is a closed-end investment fund that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. Runway Growth is externally managed by Runway Growth Capital LLC, an established registered investment adviser that was formed in 2015 and led by industry veteran David Spreng. For more information, please visit www.runwaygrowth.com.

    Forward-Looking Statements
    Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Runway Growth’s filings with the Securities and Exchange Commission. Runway Growth undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

    IR Contacts:
    Taylor Donahue, Prosek Partners, rway@prosek.com
    Thomas B. Raterman, Chief Financial Officer and Chief Operating Officer, tr@runwaygrowth.com

    The MIL Network –

  • MIL-OSI: Gabelli Announces Partnership with Keeley’s Asset and Wealth Management Services

    Source: GlobeNewswire (MIL-OSI)

    GREENWICH, Conn. and CHICAGO, May 01, 2025 (GLOBE NEWSWIRE) — GAMCO Investors, Inc. (“Gabelli”) (OTCQX: GAMI) announced today that it has reached an agreement with Teton Advisors, Inc. (OTC Pink: TETAA) for the investment management services business of Keeley – Teton Advisors, LLC (“Keeley”). Keeley consists of four mutual funds and approximately 500 separately managed accounts (SMAs) with assets under management (“AUM”) of close to $1.0 billion.

    As part of the transaction, employees of Chicago-based Keeley — which include research, portfolio management, and client service professionals — will continue to operate under the Keeley name and service existing clients. Keeley is led by Kevin M. Keeley, son of founder, John L. Keeley, Jr..

    “Our history with Keeley began in the mid-1960s when John L. Keeley, Jr. and I were both sell side analysts,” said Mario Gabelli, founder of Gabelli. “John and I were always of the mindset that clients come first, and that philosophy still holds true today. John L. Keeley, Jr. and I were among a handful that started firms in the mid-1970s. It is with great pleasure that we welcome Keeley clients and teammates to our firm and look forward to continue serving as trusted stewards to our customers.”

    “Today’s announcement marks a pivotal milestone for Keeley and highlights our commitment to delivering long-term value for our customers and stakeholders,” said Kevin M. Keeley, CEO of Keeley. “While we have been a partner to Gabelli for many years, we are pleased to now be more closely aligned to such a highly regarded asset manager. We look forward to continuing to offer best in-class service to our clients.”

    About Gabelli

    Gabelli is best known for its research-driven value approach to equity investing (known as PMV with a Catalyst™). Gabelli conducts its investment advisory business principally through two subsidiaries: Gabelli Funds, LLC (24 open-end funds, 14 closed-end funds, 5 actively managed ETFs, and a SICAV) and GAMCO Asset Management Inc. (approximately 1,400 institutional and private wealth separate accounts). Gabelli serves a broad client base including institutions, intermediaries, offshore investors, private wealth, and direct retail investors. In recent years, Gabelli has successfully integrated new teams of RIAs by providing attractive compensation arrangements and extensive research capabilities. As we stated in the past, Gabelli continues to look for new acquisitions / lift-outs and will pay finder’s fees for successful opportunities.

    Gabelli offers a wide range of solutions for clients across Value and Growth Equity, Convertibles, actively managed ETFs, sector-focused strategies including Gold and Utilities, Merger Arbitrage, Fixed Income, and 100% U.S. Treasury Money Market.

    CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

    The financial results set forth in this press release are preliminary. Our disclosure and analysis in this press release, which do not present historical information, contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.  Forward-looking statements convey our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results. Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, the economy, and other conditions, there can be no assurance that our actual results will not differ materially from what we expect or believe. Therefore, you should proceed with caution in relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.

    Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that are difficult to predict and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Some of the factors that may cause our actual results to differ from our expectations include risks associated with a decline in the securities markets that adversely affect our assets under management, negative performance of our products, the failure to perform as required under our investment management agreements, and a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors contained in our Annual Report and other public filings. Other factors that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations whether as a result of new information, future developments or otherwise, except as may be required by law.

    Contact: Kieran Caterina
      SVP, Chief Accounting Officer
      (914) 921-5149
       
      For further information please visit
      www.gabelli.com

    The MIL Network –

  • MIL-OSI: T1 Provides Update from G1 Dallas

    Source: GlobeNewswire (MIL-OSI)

    AUSTIN, Texas and NEW YORK, May 01, 2025 (GLOBE NEWSWIRE) — T1 Energy Inc. (NYSE: TE) (“T1,” “T1 Energy,” or the “Company”) provided an update on the Company’s progress at its G1 Dallas solar module manufacturing facility in Wilmer, Texas.

    Highlights

    • On April 30th, T1 achieved term conversion of the G1 Dallas construction loan to a $235 million term loan in line with the previously communicated timeline
    • The conversion of the construction loan was conditioned upon third-party verification that construction, commissioning, and testing of all G1 Dallas production line equipment was complete
    • T1 produced 443 MW of PV solar modules at G1 Dallas during Q1 2025, equivalent to 96% of the Company’s production plan

    On April 30, 2025, the construction loan of the G1 Dallas solar module manufacturing facility converted to a $235 million term loan in accordance with the terms set forth by T1’s banking consortium of commercial lenders. The term conversion occurred following T1’s satisfaction of certain conditions precedent, including:

    • A formal acknowledgement by each of T1’s solar module offtake customers that facility commissioning had occurred;
    • Confirmation by Gray Construction, Inc. that substantial completion of G1 construction had occurred; and
    • Certification by an independent engineer that G1 Dallas, with a total annual production capacity of 5 GW, has been installed, tested, and is ready and capable of being used for its intended purposes in a safe manner.

    “The term conversion of the G1 Dallas construction loan is an important milestone for T1,” said Evan Calio, T1’s Chief Financial Officer. “With commissioning and third-party technical certification of the facility complete, G1 Dallas is now fully operational, and all production lines have been handed over to our operations team.”

    G1 Operations Update

    During Q1 2025, G1 Dallas produced 443 MW of PV solar modules while construction, commissioning, testing, and inspection of the production lines were ongoing, equating to 96% of T1’s Q1 production plan. In addition, T1 has elected to optimize the G1 product mix for prevailing market conditions by converting three production lines from PERC to TOPCon technology.

    About T1 Energy

    T1 Energy Inc. (NYSE: TE) is an energy solutions provider building an integrated U.S. supply chain for solar and batteries. In December 2024, T1 completed a transformative transaction, positioning the Company as one of the leading solar manufacturing companies in the United States, with a complementary solar and battery storage strategy. Based in the United States with plans to expand its operations in America, the Company is also exploring value optimization opportunities across its portfolio of assets in Europe.

    To learn more about T1, please visit www.T1energy.com and follow us on social media.

    Investor contact:

    Jeffrey Spittel
    EVP, Investor Relations and Corporate Development
    jeffrey.spittel@T1energy.com
    Tel: +1 409 599-5706

    Media contact:

    Amy Jaick
    SVP, Communications
    amy.jaick@T1energy.com
    Tel: +1 973 713-5585

    T1 intends to use its website as a channel of distribution to disclose information which may be of interest or material to investors and to communicate with investors and the public. Such disclosures will be included on T1’s website in the ‘Investor Relations’ section. T1, and its CEO and Chairman of the Board, Daniel Barcelo, also intend to use certain social media channels, including, but not limited to, X, LinkedIn, and Instagram, as means of communicating with the public and investors about T1, its progress, products, and other matters. While not all the information that T1 or Daniel Barcelo post to their respective digital platforms may be deemed to be of a material nature, some information may be. As a result, T1 encourages investors and others interested to review the information that it and Daniel Barcelo posts and to monitor such portions of T1’s website and social media channels on a regular basis, in addition to following T1’s press releases, SEC filings, and public conference calls and webcasts. The contents of T1’s website and its and Daniel Barcelo’s social media channels shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8a689f8d-4c71-4a98-84c8-7f2d331544d3

    The MIL Network –

  • MIL-OSI: Bimini Capital Management Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    VERO BEACH, Fla., May 01, 2025 (GLOBE NEWSWIRE) — Bimini Capital Management, Inc. (OTCQB: BMNM), (“Bimini Capital,” “Bimini,” or the “Company”), today announced results of operations for the three-month period ended March 31, 2025.

    First Quarter 2025 Highlights

    • Net income of $0.6 million, or $0.06 per common share
    • Book value per share of $0.74
    • Company to discuss results on Friday, May 2, 2025, at 10:00 AM ET

    Management Commentary 

    Commenting on the first quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, “While economic data and events generally are never uniformly stable or consistent, the first quarter of 2025 was relatively uneventful.  Interest rates were generally range bound, and volatility was low for most of the quarter.  These are ideal conditions for a levered investment strategy in Agency RMBS.  Accordingly, the Company and the Agency RMBS market generated attractive returns for the period.  Orchid Island Capital’s stock also traded well during the quarter – at least until the last week of the quarter. Orchid was able to take advantage of these conditions and the performance of its common stock price and raise additional capital, enhancing the Company’s advisory service revenues going forward. 

    “Although we did not add to the RMBS portfolio at our Royal Palm Capital subsidiary this quarter we did several times during 2024, and with funding costs down as a result of Fed rates cuts late in 2024, our net interest income, inclusive of dividends from our holdings of Orchid, increased substantially.

    “While the first quarter market conditions were very supportive of our two operating segments, conditions so far in the second quarter have been challenging.  At the moment, there remains considerable uncertainty about how the tariffs introduced by the new administration will ultimately impact the economy and markets. To the extent the economy slows, leading to potential additional rate cuts by the Fed, and/or longer-term interest rates rise as a result of the inflationary impacts of the tariffs, both the Company’s investment portfolio as well as Orchid’s could benefit from enhanced net interest margins resulting from the steeper interest rate curve.”

    Details of First Quarter 2025 Results of Operations

    Orchid reported net income for the first quarter 2025 of $17.1 million and generated a 2.60% return on its book value for the quarter – not annualized. Orchid also raised $205.4 million during the quarter and its shareholders equity increased from $668.5 million at December 31, 2024 to $855.9 million at March 31, 2025. As a result, Bimini’s advisory service revenues of approximately $3.6 million represented a 22% increase over the first quarter of 2024 and a 6% increase over the fourth quarter of 2024. 

    Royal Palm did not add to the RMBS portfolio during the first quarter of 2025 but did so several times during 2024, and interest revenue increased 25% over the first quarter of 2024 and 4% over the fourth quarter of 2024.  With funding costs down as a result of Fed rates cuts late in 2024, net interest income, inclusive of dividends from holdings of Orchid common shares, increased approximately 64% over the first quarter of 2024 and by approximately 35% over the fourth quarter of 2024.  Note these figures represent just the net interest income from the investment portfolio, and do not include interest charges on our trust preferred or other long-term debt.

    Interest charges on the preferred trust and other long-term debt of $0.54 million were down 8% from the fourth quarter of 2024 and 12% from the first quarter of 2024. Expenses of $2.92 million increased 4% from the fourth quarter of 2024 and decreased 3% from the first quarter of 2024.  Bimini recorded an income tax provision of $0.2 million for the first quarter of 2025.

    Management of Orchid Island Capital, Inc.

    Orchid is managed and advised by Bimini. As Manager, Bimini is responsible for administering Orchid’s business activities and day-to-day operations. Pursuant to the terms of a management agreement, our subsidiary, Bimini Advisors, provides Orchid with its management team, including its officers, along with appropriate support personnel. Bimini also maintains a common stock investment in Orchid which is accounted for under the fair value option, with changes in fair value recorded in the statement of operations for the current period. For the three months ended March 31, 2025, Bimini’s statement of operations included a fair value adjustment of $(0.1) million and dividends of $0.2 million from its investment in Orchid common stock. Also, during the three months ended March 31, 2025, Bimini recorded $3.6 million in advisory services revenue for managing Orchid’s portfolio, consisting of $2.7 million of management fees, $0.6 million in overhead reimbursement, and $0.2 million in repurchase, clearing and administrative fees.

    Book Value Per Share

    The Company’s book value per share on March 31, 2025 was $0.74. The Company computes book value per share by dividing total stockholders’ equity by the total number of shares outstanding of the Company’s Class A Common Stock. At March 31, 2025, the Company’s stockholders’ equity was $7.4 million, with 10,005,457 Class A Common shares outstanding.

    Capital Allocation and Return on Invested Capital

    The Company allocates capital between two MBS sub-portfolios, the pass-through MBS portfolio and the structured MBS portfolio, consisting of interest-only and inverse interest-only securities. The table below details the changes to the respective sub-portfolios during the quarter.

    Portfolio Activity for the Quarter  
              Structured Security Portfolio          
                  Inverse                  
      Pass     Interest-     Interest-                  
      Through     Only     Only                  
      Portfolio     Securities     Securities     Sub-total     Total  
    Market Value – December 31, 2024 $ 120,055,716     $ 2,285,605     $ 6,849     $ 2,292,454     $ 122,348,170  
    Securities purchased   –       –       –       –       –  
    Return of investment   n/a       (77,876 )     (346 )     (78,222 )     (78,222 )
    Pay-downs   (2,793,832 )     n/a       n/a       n/a       (2,793,832 )
    Discount accreted due to pay-downs   19,415       n/a       n/a       n/a       19,415  
    Mark to market gains   1,423,056       45,169       1,368       46,537       1,469,593  
    Market Value – March 31, 2025 $ 118,704,355     $ 2,252,898     $ 7,871     $ 2,260,769     $ 120,965,124  

    The tables below present the allocation of capital between the respective portfolios at March 31, 2025 and December 31, 2024, and the return on invested capital for each sub-portfolio for the three-month period ended March 31, 2025. Capital allocation is defined as the sum of the market value of securities held, less associated repurchase agreement borrowings, plus cash and cash equivalents and restricted cash associated with repurchase agreements. Capital allocated to non-portfolio assets is not included in the calculation.

    Capital Allocation  
              Structured Security Portfolio          
                  Inverse                  
      Pass     Interest-     Interest-                  
      Through     Only     Only                  
      Portfolio     Securities     Securities     Sub-total     Total  
    March 31, 2025                                      
    Market value $ 118,704,355     $ 2,252,898     $ 7,871     $ 2,260,769     $ 120,965,124  
    Cash equivalents and restricted cash   5,500,438       –       –       –       5,500,438  
    Repurchase agreement obligations   (115,510,999 )     –       –       –       (115,510,999 )
    Total $ 8,693,794     $ 2,252,898     $ 7,871     $ 2,260,769     $ 10,954,563  
    % of Total   79.4 %     20.5 %     0.1 %     20.6 %     100.0 %
    December 31, 2024                                      
    Market value $ 120,055,716     $ 2,285,605     $ 6,849     $ 2,292,454     $ 122,348,170  
    Cash equivalents and restricted cash   7,422,746       –       –       –       7,422,746  
    Repurchase agreement obligations   (117,180,999 )     –       –       –       (117,180,999 )
    Total $ 10,297,463     $ 2,285,605     $ 6,849     $ 2,292,454     $ 12,589,917  
    % of Total   81.8 %     18.2 %     0.1 %     18.2 %     100.0 %

    The returns on invested capital in the PT MBS and structured MBS portfolios were approximately 4.6% and 3.7%, respectively, for the three months ended March 31, 2025. The combined portfolio generated a return on invested capital of approximately 4.4%.

    Returns for the Quarter Ended March 31, 2025  
              Structured Security Portfolio          
                  Inverse                  
      Pass     Interest-     Interest-                  
      Through     Only     Only                  
      Portfolio     Securities     Securities     Sub-total     Total  
    Interest income (net of repo cost) $ 397,204     $ 38,427     $ 43     $ 38,470     $ 435,674  
    Realized and unrealized gains   1,442,471       45,169       1,368       46,537       1,489,008  
    Hedge losses   (1,368,795 )     n/a       n/a       n/a       (1,368,795 )
    Total Return $ 470,880     $ 83,596     $ 1,411     $ 85,007     $ 555,887  
    Beginning capital allocation $ 10,297,463     $ 2,285,605     $ 6,849     $ 2,292,454     $ 12,589,917  
    Return on invested capital for the quarter(1)   4.6 %     3.7 %     20.6 %     3.7 %     4.4 %
    (1 ) Calculated by dividing the Total Return by the Beginning Capital Allocation, expressed as a percentage.


    Prepayments

    For the first quarter of 2025, the Company received approximately $2.9 million in scheduled and unscheduled principal repayments and prepayments, which equated to a 3-month constant prepayment rate (“CPR”) of approximately 7.3%. Prepayment rates on the two MBS sub-portfolios were as follows (in CPR):

      PT Structured  
      MBS Sub- MBS Sub- Total
    Three Months Ended Portfolio Portfolio Portfolio
    March 31, 2025 7.5 6.2 7.3
    December 31, 2024 10.9 12.5 11.1
    September 30, 2024 6.3 6.7 6.3
    June 30, 2024 10.9 5.5 10.0
    March 31, 2024 18.0 9.2 16.5


    Portfolio

    The following tables summarize the MBS portfolio as of March 31, 2025 and December 31, 2024:

    ($ in thousands)   
                    Weighted  
            Percentage       Average  
            of   Weighted   Maturity  
      Fair   Entire   Average   in Longest
    Asset Category Value   Portfolio   Coupon   Months Maturity
    March 31, 2025                  
    Fixed Rate MBS $ 118,704   98.1 % 5.60 % 338 1-Jan-55
    Structured MBS   2,261   1.9 % 2.86 % 279 15-May-51
    Total MBS Portfolio $ 120,965   100.0 % 5.27 % 337 1-Jan-55
    December 31, 2024                  
    Fixed Rate MBS $ 120,056   98.1 % 5.60 % 341 1-Jan-55
    Structured MBS   2,292   1.9 % 2.85 % 281 15-May-51
    Total MBS Portfolio $ 122,348   100.0 % 5.26 % 340 1-Jan-55
    ($ in thousands)  
      March 31, 2025   December 31, 2024  
          Percentage of       Percentage of  
    Agency Fair Value Entire
    Portfolio    		   Fair Value Entire
    Portfolio    		  
    Fannie Mae $ 31,705 26.2 % $ 32,692 26.7 %
    Freddie Mac   89,260 73.8 %   89,656 73.3 %
    Total Portfolio $ 120,965 100.0 % $ 122,348 100.0 %
      March 31, 2025 December 31, 2024
    Weighted Average Pass Through Purchase Price $ 102.72 $ 102.72
    Weighted Average Structured Purchase Price $ 4.48 $ 4.48
    Weighted Average Pass Through Current Price $ 100.85 $ 99.63
    Weighted Average Structured Current Price $ 14.02 $ 13.71
    Effective Duration (1)   3.257   3.622
    (1 ) Effective duration is the approximate percentage change in price for a 100 basis point change in rates. An effective duration of 3.257 indicates that an interest rate increase of 1.0% would be expected to cause a 3.257% decrease in the value of the MBS in the Company’s investment portfolio at March 31, 2025. An effective duration of 3.622 indicates that an interest rate increase of 1.0% would be expected to cause a 3.622% decrease in the value of the MBS in the Company’s investment portfolio at December 31, 2024. These figures include the structured securities in the portfolio but not the effect of the Company’s hedges. Effective duration quotes for individual investments are obtained from The Yield Book, Inc.


    Financing and Liquidity

    As of March 31, 2025, the Company had outstanding repurchase obligations of approximately $115.5 million with a net weighted average borrowing rate of 4.47%. These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $121.4 million. At March 31, 2025, the Company’s liquidity was approximately $4.5 million, consisting of unpledged MBS and cash and cash equivalents.

    We may pledge more of our structured MBS as part of a repurchase agreement funding but retain cash in lieu of acquiring additional assets. In this way, we can, at a modest cost, retain higher levels of cash on hand and decrease the likelihood that we will have to sell assets in a distressed market in order to raise cash. Below is a list of outstanding borrowings under repurchase obligations at March 31, 2025.

    ($ in thousands)  
    Repurchase Agreement Obligations
              Weighted   Weighted
      Total     Average   Average
      Outstanding % of   Borrowing   Maturity
    Counterparty Balances Total   Rate   (in Days)
    South Street Securities, LLC $ 25,952 22.5 % 4.46 % 21
    Marex Capital Markets Inc.   24,040 20.8 % 4.45 % 39
    DV Securities, LLC Repo   19,282 16.7 % 4.45 % 21
    Mirae Asset Securities (USA) Inc.   18,870 16.3 % 4.51 % 51
    Clear Street LLC   16,365 14.2 % 4.46 % 49
    Mitsubishi UFJ Securities, Inc.   11,002 9.5 % 4.49 % 49
      $ 115,511 100.0 % 4.47 % 36


    Summarized Consolidated Financial Statements

    The following is a summarized presentation of the unaudited consolidated balance sheets as of March 31, 2025, and December 31, 2024, and the unaudited consolidated statements of operations for the three months ended March 31, 2025 and 2024. Amounts presented are subject to change.

    BIMINI CAPITAL MANAGEMENT, INC.
    CONSOLIDATED BALANCE SHEETS
    (Unaudited – Amounts Subject to Change)
     
      March 31, 2025   December 31, 2024
    ASSETS          
    Mortgage-backed securities $ 120,965,124   $ 122,348,170
    Cash equivalents and restricted cash   5,500,438     7,422,746
    Orchid Island Capital, Inc. common stock, at fair value   4,279,414     4,427,372
    Accrued interest receivable   587,536     601,640
    Deferred tax assets, net   15,750,116     15,930,953
    Other assets   4,356,674     4,122,776
    Total Assets $ 151,439,302   $ 154,853,657
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Repurchase agreements $ 115,510,999   $ 117,180,999
    Long-term debt   27,362,762     27,368,158
    Other liabilities   1,191,564     3,483,093
    Total Liabilities   144,065,325     148,032,250
    Stockholders’ equity   7,373,977     6,821,407
    Total Liabilities and Stockholders’ Equity $ 151,439,302   $ 154,853,657
    Class A Common Shares outstanding   10,005,457     10,005,457
    Book value per share $ 0.74   $ 0.68
    BIMINI CAPITAL MANAGEMENT, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited – Amounts Subject to Change)
     
      Three Months Ended March 31,  
      2025     2024  
    Advisory services $ 3,582,289     $ 2,929,261  
    Interest and dividend income   1,947,040       1,598,965  
    Interest expense   (1,844,020 )     (1,815,678 )
    Net revenues   3,685,309       2,712,548  
    Other (expense) income   (27,745 )     926,731  
    Expenses   2,924,157       3,029,395  
    Net income before income tax provision   733,407       609,884  
    Income tax provision   180,837       396,776  
    Net income $ 552,570     $ 213,108  
                   
    Basic and Diluted Net (Loss) Income Per Share of:              
    CLASS A COMMON STOCK $ 0.06     $ 0.02  
    CLASS B COMMON STOCK $ 0.06     $ 0.02  
      Three Months Ended March 31,  
    Key Balance Sheet Metrics 2025     2024  
    Average MBS(1) $ 121,656,646     $ 90,697,087  
    Average repurchase agreements(1)   116,345,999       85,752,999  
    Average stockholders’ equity(1)   7,097,692       8,234,295  
                   
    Key Performance Metrics              
    Average yield on MBS(2)   5.73 %     6.15 %
    Average cost of funds(2)   4.49 %     5.63 %
    Average economic cost of funds(3)   4.13 %     5.54 %
    Average interest rate spread(4)   1.24 %     0.52 %
    Average economic interest rate spread(5)   1.60 %     0.61 %
    (1 ) Average MBS, repurchase agreements and stockholders’ equity balances are calculated using two data points, the beginning and ending balances.
    (2 ) Portfolio yields and costs of funds are calculated based on the average balances of the underlying investment portfolio/repurchase agreement balances and are annualized for the quarterly periods presented.
    (3 ) Represents interest cost of our borrowings and the effect of derivative agreements attributed to the period related to hedging activities, divided by average repurchase agreements.
    (4 ) Average interest rate spread is calculated by subtracting average cost of funds from average yield on MBS.
    (5 ) Average economic interest rate spread is calculated by subtracting average economic cost of funds from average yield on MBS.


    About Bimini Capital Management, Inc.

    Bimini Capital Management, Inc. invests primarily in, but is not limited to investing in, residential mortgage-related securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae). Its objective is to earn returns on the spread between the yield on its assets and its costs, including the interest expense on the funds it borrows. In addition, Bimini generates a significant portion of its revenue serving as the manager of the MBS portfolio of, and providing certain repurchase agreement trading, clearing and administrative services to, Orchid Island Capital, Inc.

    Forward Looking Statements

    Statements herein relating to matters that are not historical facts are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and on management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Important factors that could cause such differences are described in Bimini Capital Management, Inc.’s filings with the Securities and Exchange Commission, including Bimini Capital Management, Inc.’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Bimini Capital Management, Inc. assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes in other factors affecting forward-looking statements, except as may be required by applicable law.

    Earnings Conference Call Details

    An earnings conference call and live audio webcast will be hosted Friday, May 2, 2025, at 10:00 AM ET. Participants can register and receive dial-in information at https://register-conf.media-server.com/register/BIa731c864bb5447568e7b00d74642ab23. A live audio webcast of the conference call can be accessed at https://edge.media-server.com/mmc/p/cq5fazei or via the investor relations section of the Company’s website at https://ir.biminicapital.com. An audio archive of the webcast will be available on the website for 30 days after the call.

    CONTACT:
    Bimini Capital Management, Inc.
    Robert E. Cauley, 772-231-1400
    Chairman and Chief Executive Officer
    https://ir.biminicapital.com

    The MIL Network –

  • MIL-OSI Security: Arizona Man Sentenced for COVID Loan Fraud and Tax Fraud

    Source: Office of United States Attorneys

    TUCSON, Ariz. – Roy Lane, 44, of St. David, Arizona, was sentenced on Tuesday by U.S. District Judge John C. Hinderaker to four years in prison, followed by three years of supervised release, for filing false tax returns and loan applications to obtain COVID-19 disaster relief. Layne previously pleaded guilty to two counts of Wire Fraud and one count of Filing a False Claim.

    According to court documents, and evidence presented in court, to create the appearance that he was operating several businesses, Layne filed paperwork with the IRS, applied for a business license from the City of Tucson, opened business bank accounts, and filed false employment-related tax returns. In April 2020, he filed an application with the U.S. Small Business Administration, that claimed he operated a “wholesale” business with 17 employees that had revenue of more than a half million dollars a year. In 2021, he submitted a false application for a Paycheck Protection Act loan, claiming that same “wholesale” business had 31 employees and $1.2 million in revenue. Based on these and other false applications, Layne ultimately received over $300,000 in COVID-19 related loans to which he was not entitled.

    Layne also used the personal identifying information and identities of other people to file false claims for refunds with the IRS. In total, Layne claimed over $7.4 million in false refunds, of which the IRS paid over $590,000.

    In addition to the prison term, U.S. District Judge John C. Hinderaker ordered Layne to pay $856,692.91 in restitution to the United States.

    IRS Criminal Investigation and the FBI investigated the case. Trial Attorney Matthew R. Hoffman of the Tax Division and Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, Tucson, prosecuted the case.

    CASE NUMBER:            CR-24-04907-TUC-JCH
    RELEASE NUMBER:    2025-070_Layne

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

    MIL Security OSI –

  • MIL-OSI: Skyward Specialty Insurance Group Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, May 01, 2025 (GLOBE NEWSWIRE) — Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today reported first quarter 2025 net income of $42.1 million, or $1.01 per diluted share, compared to $36.8 million, or $0.90 per diluted share, for the same 2024 period.

    Adjusted operating income(1) for the first quarter of 2025 was $37.3 million, or $0.90 per diluted share, compared to $31.0 million, or $0.75 per diluted share, for the same 2024 period.

    Highlights for the first quarter included:

    • Gross written premiums of $535.3 million, an increase of 16.7% compared to 2024;
    • Combined ratio of 90.5%;
    • Ex-Cat combined ratio of 88.3%;
    • Annualized return on equity of 20.5%; and,
    • Book value per share of $21.06, an increase of 6% compared to December 31, 2024.
    (1)See “Reconciliation of Non-GAAP Financial Measures”

    Skyward Specialty Chairman and CEO Andrew Robinson commented, “We delivered outstanding first quarter results, including adjusted operating income(1) which increased over 20% to $37.3 million, which is the best in Company history, and we achieved annualized return on equity of 20.5%. We continued our consistent and strong record of growth in underwriting performance as gross written premiums increased by approximately 17%, and we delivered a 90.5% combined ratio inclusive of 2.2 points of catastrophe losses. Our strong growth this quarter highlights the strength of our diversified business portfolio, with our global agriculture unit and our accident & health division each having a breakout quarter; we have highlighted these two areas as part of our intentional strategy to grow in areas less exposed to the P&C market.”

    “As we look out to the remainder of the year, we remain confident that the strength of our diversified business portfolio, the power of our Rule Our Niche strategy, our investment in technology and talent, and our track record for consistent execution, positions us to continue to deliver strong financial results that create long-term value for our shareholders.”

    Results of Operations

    Underwriting Results

    Premiums            
    ($ in thousands)   Three months ended March 31,
    unaudited     2025       2024     %
    Change
    Gross written premiums   $ 535,326     $ 458,620     16.7 %
    Ceded written premiums   $ (192,055 )   $ (171,520 )   12.0 %
    Net retention     64.1 %     62.6 %   NM (1)
    Net written premiums   $ 343,271     $ 287,100     19.6 %
    Net earned premiums   $ 300,366     $ 236,342     27.1 %
    (1)Not meaningful            
                 

    The increase in gross written premiums for the first quarter of 2025, when compared to the same 2024 period, was driven by double-digit premium growth primarily from the agriculture and credit (re)insurance, accident & health and specialty programs divisions, partially offset by a decrease in gross written premiums in the global property division.

    During the first quarter 2025, the Company updated its underwriting divisions to align with how management currently oversees the business, allocates resources and evaluates operating performance. The Company added a ninth division, Agriculture and Credit (Re)insurance, which includes the Global Agriculture unit, previously reported with Global Property, and the Mortgage and Credit units, and focuses on specialty classes for which reinsurance provides a more attractive market entry. The Industry Solutions division is now the Construction & Energy Solutions division and the Inland Marine unit is now included in the Transactional E&S division. Programs is now Specialty Programs. Prior reporting periods have been conformed to reflect the new presentation.

    Combined Ratio   Three months ended March 31,
    (unaudited)   2025   2024
    Non-cat loss and LAE   60.2 %   60.6 %
    Cat loss and LAE(1)   2.2 %   0.4 %
    Prior accident year development – LPT   0.0 %   (0.1) %
    Loss Ratio   62.4 %   60.9 %
    Net policy acquisition costs   14.8 %   13.6 %
    Other operating and general expenses   14.0 %   16.0 %
    Commission and fee income   (0.7) %   (0.9) %
    Expense ratio   28.1 %   28.7 %
    Combined ratio   90.5 %   89.6 %
    Ex-Cat Combined Ratio(2)   88.3 %   89.2 %
             
    (1)Current accident year
    (2)Defined as the combined ratio excluding cat loss and LAE(1)        
             

    The loss ratio for the first quarter of 2025 increased 1.5 points when compared to the same 2024 period, due to higher catastrophe losses, primarily from convective storms in the Midwest and the California wildfires. Partially offsetting the increase in the cat loss and LAE ratio was improvement in the non-cat loss and LAE ratio driven by the business mix shift.

    The expense ratio for the first quarter improved 0.6 points when compared to the same 2024 period due to earnings leverage partially offset by higher acquisition costs due to the business mix shift.

    The expense ratios for the first quarters of 2025 and 2024 exclude the impact of IPO related stock compensation and secondary offering expenses, which are reported in other expenses in our condensed consolidated statements of operations and comprehensive income.

    Investment Results

    Net Investment Income        
    $ in thousands   Three months ended March 31,
    (unaudited)     2025       2024  
    Short-term investments & cash and cash equivalents   $ 4,041     $ 5,088  
    Fixed income     16,730       12,478  
    Equities     657       627  
    Alternative & strategic investments     (2,097 )     104  
    Net investment income   $ 19,331     $ 18,297  
    Net unrealized gains on securities still held   $ 5,491     $ 8,991  
    Net realized gains (losses)     1,350       (688 )
    Net investment gains   $ 6,841     $ 8,303  
     

    Net investment income for the first quarter of 2025 increased $1.0 million when compared to the same 2024 period, driven by increased income from our fixed income portfolio due to a higher yield and larger asset base. Partially offsetting the increase in income from our fixed income portfolio were (i) losses from the alternative and strategic investments portfolio due to the decline in the fair value of limited partnership investments, and (ii) less income from short-term investments driven by a lower yield.

    Stockholders’ Equity

    Stockholders’ equity was $850.7 million at March 31, 2025 which represented an increase of 7.1% when compared to stockholders’ equity of $794.0 million at December 31, 2024. The increase in stockholders’ equity was primarily due to an increase in the market value of our investment portfolio and net income.

    Conference Call

    At 9:30 a.m. eastern time tomorrow, May 2, 2025, Skyward Specialty management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at investors.skywardinsurance.com under Events & Presentations. Additionally, investors can access the earnings call via conference call by registering via the conference link. Users will receive dial-in information and a unique PIN to join the call upon registering.

    Non-GAAP Financial Measures

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

    We consider these non-GAAP financial measures to be useful metrics for our management and investors to facilitate operating performance comparisons from period to period. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered supplemental in nature and is not meant to be a substitute for revenue or net income, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as comparative measures. For more information regarding these non-GAAP financial measures and a reconciliation of such measures to comparable GAAP financial measures, see the section entitled “Reconciliation of Non-GAAP Financial Measures.”

    About Skyward Specialty Insurance Group, Inc.

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

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

    Forward-Looking Statements

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

    Skyward Specialty Insurance Group, Inc.

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

    or

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

    Consolidated Balance Sheets        
    ($ in thousands, except share and per share amounts)        
    (unaudited)   March 31,
    2025    		   December 31,
    2024
    Assets        
    Investments:        
    Fixed maturity securities, available-for-sale, at fair value (amortized cost of $1,410,269 and $1,320,266, respectively)   $ 1,397,508     $ 1,292,218  
    Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $250 and $243, respectively)     37,519       39,153  
    Equity securities, at fair value     108,075       106,254  
    Mortgage loans, at fair value     16,012       26,490  
    Equity method investments     88,588       98,594  
    Other long-term investments     37,646       33,182  
    Short-term investments, at fair value     308,042       274,929  
    Total investments     1,993,390       1,870,820  
    Cash and cash equivalents     112,916       121,603  
    Restricted cash     40,590       35,922  
    Premiums receivable, net     417,542       321,641  
    Reinsurance recoverables, net     902,970       857,876  
    Ceded unearned premium     232,147       203,901  
    Deferred policy acquisition costs     126,439       113,183  
    Deferred income taxes     26,984       30,486  
    Goodwill and intangible assets, net     87,089       87,348  
    Other assets     90,566       86,698  
    Total assets   $ 4,030,633     $ 3,729,478  
    Liabilities and stockholders’ equity        
    Liabilities:        
    Reserves for losses and loss adjustment expenses   $ 1,871,491     $ 1,782,383  
    Unearned premiums     708,347       637,185  
    Deferred ceding commission     45,544       40,434  
    Reinsurance and premium payables     243,083       177,070  
    Funds held for others     113,748       102,665  
    Accounts payable and accrued liabilities     78,154       76,206  
    Notes payable     100,000       100,000  
    Subordinated debt, net of debt issuance costs     19,545       19,536  
    Total liabilities     3,179,912       2,935,479  
    Stockholders’ equity        
    Common stock, $0.01 par value, 500,000,000 shares authorized, 40,402,879 and 40,127,908 shares issued and outstanding, respectively     404       401  
    Additional paid-in capital     721,186       718,598  
    Accumulated other comprehensive loss     (10,047 )     (22,120 )
    Retained earnings     139,178       97,120  
    Total stockholders’ equity     850,721       793,999  
       Total liabilities and stockholders’ equity   $ 4,030,633     $ 3,729,478  
             
    Condensed Consolidated Statements of Operations and Comprehensive Income
    ($ in thousands)   Three months ended March 31,
    (unaudited)     2025       2024  
             
    Revenues:        
    Net earned premiums   $ 300,366     $ 236,342  
    Commission and fee income     1,976       2,026  
    Net investment income     19,331       18,297  
    Net investment gains     6,841       8,303  
    Other income     13       —  
    Total revenues     328,527       264,968  
    Expenses:        
    Losses and loss adjustment expenses     187,309       143,914  
    Underwriting, acquisition and insurance expenses     86,551       69,774  
    Interest expense     1,834       2,727  
    Amortization expense     337       388  
    Other expenses     1,061       1,188  
    Total expenses     277,092       217,991  
    Income before income taxes     51,435       46,977  
    Income tax expense     9,377       10,193  
    Net income     42,058       36,784  
    Comprehensive income:        
    Net income   $ 42,058     $ 36,784  
    Other comprehensive income:        
    Unrealized gains and losses on investments:        
    Net change in unrealized gains (losses) on investments, net of tax     12,255       (5,418 )
    Reclassification adjustment for losses on securities no longer held, net of tax     (182 )     (908 )
    Total other comprehensive income (loss)     12,073       (6,326 )
    Comprehensive income   $ 54,131     $ 30,458  
             
    Share and Per Share Data        
    ($ in thousands, except share and per share amounts)   Three months ended March 31,
    (unaudited)     2025       2024  
             
    Weighted average basic shares     40,196,416       39,108,351  
    Weighted average diluted shares     41,680,595       41,085,136  
             
    Basic earnings per share   $ 1.05     $ 0.94  
    Diluted earnings per share   $ 1.01     $ 0.90  
    Basic adjusted operating earnings per share   $ 0.93     $ 0.79  
    Diluted adjusted operating earnings per share   $ 0.90     $ 0.75  
             
    Annualized ROE(1)     20.5 %     21.7 %
    Annualized adjusted ROE(2)     18.2 %     18.3 %
    Annualized ROTE(3)     22.9 %     25.0 %
    Annualized adjusted ROTE(4)     20.3 %     21.1 %
             
        March 31   December 31
          2025       2024  
             
    Shares outstanding     40,402,879       40,127,908  
    Fully diluted shares outstanding     42,234,957       42,059,182  
             
    Book value per share   $ 21.06     $ 19.79  
    Fully diluted book value per share   $ 20.14     $ 18.88  
    Fully diluted tangible book value per share   $ 18.08     $ 16.80  
             
    (1)Annualized ROE is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period
    (2)Annualized adjusted ROE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period
    (3)Annualized ROTE is net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period
    (4)Annualized adjusted ROTE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period


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

    ($ in thousands)   Three months ended March 31,
    (unaudited)     2025       2024  
        Pre-tax   After-tax   Pre-tax   After-tax
    Income as reported   $ 51,435     $ 42,058     $ 46,977     $ 36,784  
    Less (add):                
    Net investment gains     6,841       5,594       8,303       6,501  
    Net impact of loss portfolio transfer     —       —       241       189  
    Other income     13       11       —       —  
    Other expenses     (1,061 )     (868 )     (1,188 )     (930 )
    Adjusted operating income   $ 45,642     $ 37,321     $ 39,621     $ 31,024  
                     


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

    ($ in thousands)   Three months ended March 31,
    (unaudited)   2025   2024
    Income before income taxes   $ 51,435   $ 46,977
    Add:        
    Interest expense     1,834     2,727
    Amortization expense     337     388
    Other expenses     1,061     1,188
    Less:        
    Net investment income     19,331     18,297
    Net investment gains     6,841     8,303
    Other income     13     —
    Underwriting income   $ 28,482   $ 24,680
             


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

    ($ in thousands)   March 31,   December 31,
    (unaudited)   2025   2024   2024
    Stockholders’ equity   $ 850,721   $ 692,272   $ 793,999
    Less: Goodwill and intangible assets     87,089     88,137     87,348
    Tangible stockholders’ equity   $ 763,632   $ 604,135   $ 706,651
                 
        Three months ended March 31,
    ($ in thousands)   2025   2024   % Change
    Accident & Health   $ 63,169   $ 40,901   54.4 %
    Agriculture and Credit (Re)insurance     87,847     43,321   102.8 %
    Captives     68,401     68,408   — %
    Construction & Energy Solutions     75,571     74,222   1.8 %
    Global Property     46,686     57,312   (18.5) %
    Professional Lines     41,166     42,239   (2.5) %
    Specialty Programs     62,675     52,178   20.1 %
    Surety     37,798     33,842   11.7 %
    Transactional E&S     52,006     46,232   12.5 %
    Total gross written premiums(1)   $ 535,319   $ 458,655   16.7 %
    (1)Excludes exited business            

    The MIL Network –

  • MIL-OSI: Asure Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Reports First Quarter 2025 Total Revenues of $34.9 million

    Recurring Revenues Grew 10% from Prior Year

    AUSTIN, Texas, May 01, 2025 (GLOBE NEWSWIRE) — Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, today reported results for the first quarter ended March 31, 2025.

    First Quarter 2025 Financial Highlights

    • Revenue of $34.9 million, up 10% year over year, excluding ERTC revenue up 13% from the prior year first quarter
    • Recurring revenue of $33.2 million versus $30.3 million during the prior year first quarter
    • Net loss of $2.4 million versus a net loss of $0.3 million during the prior year first quarter
    • EBITDA(1) of $4.1 million versus $4.4 million during the prior year first quarter
    • Adjusted EBITDA(1) of $7.3 million versus $6.8 million during the prior year first quarter
    • Gross profit of $24.6 million versus $22.6 million during the prior year first quarter
    • Non-GAAP gross profit(1) of $26.3 million (Non-GAAP gross margin(1) of 75%) versus $23.8 million (and 75% in prior year first quarter)

    Recent Business Highlights

    • New Payroll Tax Management solution launched which is designed specifically for large Canadian companies and global enterprises with employees in Canada. Our ability to serve enterprise clients with international workforces with this innovative solution creates further opportunities to grow our business and the seamless integration of payroll tax services into major platforms such as Workday, Oracle, and SAP is a key benefit. The Canadian payroll tax solution addresses critical compliance needs for organizations managing cross-border payroll processes, reducing complexity and ensuring accurate, timely filing.
    • In April 2025 we entered into a credit agreement primarily with MidCap Financial Trust, whereby the Company may borrow up to $60 million. At closing, which occurred on April 10, we received $20 million of gross proceeds.

    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Management Commentary

    “We are excited to be off to a great start to 2025 with healthy results for our first quarter of 2025 with our revenues increasing 10% from the prior year first quarter. Our results were driven by strong performance coming from our Payroll Tax Management and initial contribution from our recently acquired product offerings,” said Asure Chairman and CEO Pat Goepel.

    “Our team is focused on continuing to execute our growth strategy. Our revenues are now more than 95% recurring, our contracted revenue backlog sits at an all-time high, and we believe that the investments we have made in the business will continue to drive greater adoption of our broadened product suite for the remainder of 2025.”

    Second Quarter 2025 and Full Year 2025 Revenue Guidance Ranges

    The Company is providing the following guidance for the second quarter of 2025 and the full year 2025 based on the Company’s year-to-date results and recent business trends. The guidance for our second quarter of 2025 and the full year 2025 excludes any contribution from future potential acquisitions.

    Guidance for 2025

    Guidance Range   Q2-2025   FY-2025
    Revenue $ 30.0 M – 32.0 M $ 134.0 M -138.0 M
    Adjusted EBITDA(1) $ 5.0 M -6.0 M   23% -24%
             

    Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does.

    Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results.

    Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.

    Management’s projections are based on management’s current beliefs and assumptions about the Company’s business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2025 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 5 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry.

    Conference Call Details

    Asure management will host a conference call on Thursday, May 1, 2025, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852.

    About Asure Software, Inc.

    Asure (Nasdaq: ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure’s suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management. The company’s approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com. 

    Non-GAAP and Adjusted Financial Measures

    This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations.

    Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items.

    Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items.

    Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items.

    Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items.

    EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue.

    Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances.

    Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

    Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs.

    Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

    Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs.

    Income Taxes. The Company excludes income taxes, both at the federal and state levels.

    One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature.

    Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business.

    Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs.

    Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants.

    Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic.

    Use of Forward-Looking Statements

    This press release contains certain statements made by management that may constitute “forward- looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of “forward-looking statements” include statements we make regarding our operating performance, future results of operations and financial position, revenue growth, earnings or other projections. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.

    The risks and uncertainties referred to above include—but are not limited to—risks associated with breaches of the Company’s security measures; risks related to material weaknesses; possible fluctuations in the Company’s financial and operating results; privacy concerns and laws and other regulations may limit the effectiveness of our applications; the financial and other impact of any previous and future acquisitions; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs; risk of our software and solutions not functioning adequately; interruptions, delays or changes in the Company’s services or the Company’s Web hosting; may incur debt to meet future capital requirements; volatility and weakness in bank and capital markets; access to additional capital; significant costs as a result of operating as a public company; the expiration of Employee Retention Tax Credits (“ERTC”) and the impact of the Internal Revenue Service recent measures regarding ERTC claims and the corresponding cash collections of existing receivables; the inability to continue to release timely updates for changes in laws; the inability to develop new and improved versions of the Company’s services and technological developments; customer’s nonrenewal of their agreements and other similar changes could negatively impact revenue, operating results and financial conditions; the exposure of market, interest, credit and liquidity risk on client funds held int rust; the Company’s operation in highlight competitive markets; risk that our clients could have insufficient funds that could result in limitations in the ability to transmit ACH transactions; impairment of intangible assets; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; various financial aspects of the Company’s Software-as-a-Service model; adverse effects to our business a result of claims, lawsuits, and other proceedings; issues in the use of artificial intelligence in our HCM products and services; adverse changes to financial accounting standards to the Company; inability to maintain third-party licensed software; evolving regulation of the Internet, changes in the infrastructure underlying the Internet or interruptions in Internet; factors affecting the Company’s deferred tax assets and ability to value and utilize them; the nature of the Company’s business model; inability to adopt new or correctly interpret existing money service and money transmitter business status; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; interruptions to supply chains and extended shut down of businesses; potential enactment of adverse tax laws, regulation, political, economic and social factors; potential sales of a substantial number of shares of our common stock along with its volatility; risks associate with potential equity-related transactions including dividends, rights under the stockholder plan to discourage certain actions and other impacts as a result of actions of our stockholders.

    Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2025.

    The forward-looking statements, including the financial guidance and 2025 outlook, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based. © 2025 Asure Software, Inc. All rights reserved

     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share amounts)
           
      March 31, 2025   December 31, 2024
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 14,076     $ 21,425  
    Accounts receivable, net of allowance for credit losses of $6,545 and $6,328 at March 31, 2025 and December 31, 2024, respectively   15,800       18,154  
    Inventory   220       195  
    Prepaid expenses and other current assets   5,970       4,888  
    Total current assets before funds held for clients   36,066       44,662  
    Funds held for clients   257,019       192,615  
    Total current assets   293,085       237,277  
    Property and equipment, net   20,999       19,669  
    Goodwill   94,724       94,724  
    Intangible assets, net   73,003       69,114  
    Operating lease assets, net   4,403       4,041  
    Other assets, net   12,727       11,813  
    Total assets $ 498,941     $ 436,638  
    LIABILITIES AND STOCKHOLDERS’EQUITY      
    Current liabilities:      
    Current portion of notes payable $ 7,948     $ 7,008  
    Accounts payable   2,475       1,364  
    Accrued compensation and benefits   2,911       4,485  
    Operating lease liabilities, current   1,432       1,438  
    Other accrued liabilities   6,071       6,600  
    Deferred revenue   4,662       8,363  
    Total current liabilities before client fund obligations   25,499       29,258  
    Client fund obligations   258,586       194,378  
    Total current liabilities   284,085       223,636  
    Long-term liabilities:      
    Deferred revenue   3,321       3,430  
    Deferred tax liability   2,903       2,612  
    Notes payable, net of current portion   6,172       5,709  
    Operating lease liabilities, noncurrent   3,892       3,578  
    Other liabilities   905       358  
    Total long-term liabilities   17,193       15,687  
    Total liabilities   301,278       239,323  
    Stockholders’ equity:      
    Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding   —       —  
    Common stock, $0.01 par value; 44,000 shares authorized; 27,122 and 26,671 shares issued, 27,122 and 26,671 shares outstanding at December 31, 2024 and December 31, 2023, respectively   271       267  
    Treasury stock at cost, zero(1)at March 31, 2025 and December 31, 2024   —       —  
    Additional paid-in capital   507,149       504,849  
    Accumulated deficit   (309,624 )     (307,226 )
    Accumulated other comprehensive loss   (133 )     (575 )
    Total stockholders’ equity   197,663       197,315  
    Total liabilities and stockholders’ equity $ 498,941     $ 436,638  
    (1) The aggregate Treasury stock of prior repurchases of the Company’s own common stock was retired and subsequently issued effective January 1, 2024. See the Consolidated Statement of Changes in Stockholders’ Equity for the impact of this transaction.
     
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (in thousands, except per share amounts)
     
      Three Months Ended
    March 31,
      2025   2024
           
    Revenue:      
    Recurring $ 33,187     $ 30,273  
    Professional services, hardware and other   1,667       1,379  
    Total revenue   34,854       31,652  
    Cost of sales   10,246       9,045  
    Gross profit   24,608       22,607  
    Operating expenses:      
    Sales and marketing   8,386       7,767  
    General and administrative   11,900       10,063  
    Research and development   2,029       1,769  
    Amortization of intangible assets   4,308       3,449  
    Total operating expenses   26,623       23,048  
    Loss from operations   (2,015 )     (441 )
    Interest income   171       336  
    Interest expense   (451 )     (180 )
    Other income, net   188       10  
    Loss from operations before income taxes   (2,107 )     (275 )
    Income tax expense   291       33  
    Net loss   (2,398 )     (308 )
    Other comprehensive income (loss):      
    Unrealized gain (loss) on marketable securities   442       (244 )
    Comprehensive loss $ (1,956 )   $ (552 )
           
    Basic and diluted loss per share      
    Basic $ (0.09 )   $ (0.01 )
    Diluted $ (0.09 )   $ (0.01 )
           
    Weighted average basic and diluted shares      
    Basic   26,961       25,334  
    Diluted   26,961       25,334  
                   
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
       
      Three Months Ended March 31,
      2025   2024
           
    Cash flows from operating activities:      
    Net loss $ (2,398 )   $ (308 )
    Adjustments to reconcile loss to net cash provided by (used in) operations:      
    Depreciation and amortization   5,972       4,860  
    Amortization of operating lease assets   374       335  
    Amortization of debt financing costs and discount   253       142  
    Non-cash interest expense   197       —  
    Net accretion of discounts and amortization of premiums on available-for-sale securities   (110 )     (78 )
    Provision for expected losses   93       46  
    Provision for deferred income taxes   291       24  
    Net realized gains on sales of available-for-sale securities   (656 )     (652 )
    Share-based compensation   1,863       1,902  
    Changes in operating assets and liabilities:      
    Accounts receivable   2,261       (919 )
    Inventory   (24 )     (50 )
    Prepaid expenses and other assets   (1,049 )     (473 )
    Operating lease right-of-use assets   —       30  
    Accounts payable   903       (960 )
    Accrued expenses and other long-term obligations   (1,737 )     (2,665 )
    Operating lease liabilities   (427 )     (141 )
    Deferred revenue   (3,810 )     (5,040 )
    Net cash provided by (used in) operating activities   1,996       (3,947 )
    Cash flows from investing activities:      
    Acquisition of intangible assets   (6,346 )     (710 )
    Purchases of property and equipment   (192 )     (240 )
    Software capitalization costs   (2,769 )     (2,435 )
    Purchases of available-for-sale securities   (6,589 )     (3,516 )
    Proceeds from sales and maturities of available-for-sale securities   3,266       2,406  
    Net cash used in investing activities   (12,630 )     (4,495 )
    Cash flows from financing activities:      
    Payments made on amounts due for the acquisition of intangibles   (723 )     (236 )
    Net proceeds from issuance of common stock   441       176  
    Net change in client fund obligations   64,207       21,122  
    Net cash provided by financing activities   63,925       21,062  
    Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents   53,291       12,620  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period   145,712       177,622  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $ 199,003     $ 190,242  
                   
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
    (in thousands)
       
      Three Months Ended March 31,
      2025
    		   2024
           
    Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Condensed Consolidated Balance Sheets
    Cash and cash equivalents $ 14,076     $ 23,166  
    Restricted cash and restricted cash equivalents included in funds held for clients   184,927       167,076  
    Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 199,003     $ 190,242  
           
    Supplemental information:      
    Cash paid for interest $ 125     $ —  
           
    Non-cash investing and financing activities:      
    Acquisition of intangible assets $ 750     $ 6,345  
    Notes payable issued for acquisitions $ 1,150     $ 827  
    Shares issued for acquisitions $ —     $ 4,494  
                   
     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
    (unaudited)
                     
    (in thousands) Q1-25 Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23
    Revenue(1) $ 34,854   $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420  
                     
    Gross Profit to non-GAAP Gross Profit                
    Gross Profit $ 24,608   $ 20,928   $ 19,704   $ 18,868   $ 22,607   $ 17,839   $ 21,280   $ 22,018  
    Gross Margin   70.6 %   68.0 %   67.2 %   67.3 %   71.4 %   67.9 %   72.5 %   72.4 %
                     
    Share-based Compensation   44     44     44     43     40     32     28     46  
    Depreciation   1,369     1,190     1,232     1,145     1,110     921     984     1,309  
    Amortization – intangibles   50     50     50     50     50     50     50     50  
    One-time expenses                
    Settlements, penalties & interest   29     25     2     3     —     (6 )   8     —  
    Acquisition and transaction costs   167     221     367     264     39     —     —     —  
    Other non-recurring expenses   —     84     —     —     —     —     —     —  
    Non-GAAP Gross Profit $ 26,267   $ 22,542   $ 21,399   $ 20,373   $ 23,846   $ 18,836   $ 22,350   $ 23,423  
    Non-GAAP Gross Margin   75.4 %   73.2 %   73.0 %   72.6 %   75.3 %   71.7 %   76.2 %   77.0 %
                     
    Sales and Marketing Expense to non-GAAP Sales and Marketing Expense
    Sales and Marketing Expense $ 8,386   $ 6,945   $ 6,680   $ 6,924   $ 7,767   $ 6,422   $ 6,597   $ 8,515  
                     
    Share-based Compensation   322     251     269     237     243     180     210     149  
    Depreciation   1     —     1     —     1     1     —     —  
    One-time expenses                
    Settlements, penalties & interest   51     78     (5 )   5     18     6     30     4  
    Acquisition and transaction costs   30     9     68     37     11     —     —     —  
    Other non-recurring expenses   —     52     —     —     —     —     —     180  
    Non-GAAP Sales and Marketing Expense $ 7,982   $ 6,555   $ 6,347   $ 6,645   $ 7,494   $ 6,235   $ 6,357   $ 8,182  
                     
    General and Administrative Expense to non-GAAP General and Administrative Expense
    General and Administrative Expense $ 11,900   $ 9,940   $ 10,378   $ 10,118   $ 10,063   $ 9,747   $ 9,294   $ 10,336  
                     
    Share-based Compensation   1,407     1,081     1,187     1,122     1,535     980     936     1,298  
    Depreciation   244     269     264     256     251     225     200     234  
    One-time expenses                
    Settlements, penalties & interest   492     142     377     304     98     284     101     432  
    Acquisition and transaction costs   491     282     371     245     57     51     —     —  
    Other non-recurring expenses   136     220     253     —     86     53     —     453  
    Non-GAAP General and Administrative Expense $ 9,130   $ 7,946   $ 7,926   $ 8,191   $ 8,036   $ 8,154   $ 8,057   $ 7,919  
                     
    Research and Development Expense to non-GAAP Research and Development Expense
    Research and Development Expense $ 2,029   $ 2,103   $ 1,973   $ 1,962   $ 1,769   $ 1,739   $ 1,803   $ 1,325  
                     
    Share-based Compensation   90     87     90     86     85     69     76     89  
    Depreciation   1     —   $ —   $ —   $ —   $ —   $ —   $ —  
    One-time expenses                
    Settlements, penalties & interest   9     21     —     27     31     —     —     —  
    Acquisition and transaction costs   91     153     195     369     147     —     —     —  
    Other non-recurring expenses   —     29     —     —     —     —     —     —  
    Non-GAAP Research and Development Expense $ 1,838   $ 1,813   $ 1,688   $ 1,480   $ 1,506   $ 1,670   $ 1,727   $ 1,236  
                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
    (unaudited)
                     
    (in thousands) Q1-25 Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23
    Revenue(1) $ 34,854   $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420  
                     
    GAAP Net Loss to Adjusted EBITDA
    GAAP Net Loss $ (2,398 ) $ (3,204 ) $ (3,901 ) $ (4,360 ) $ (308 ) $ (3,582 ) $ (2,206 ) $ (3,765 )
                     
    Interest expense, net   280     211     109     (53 )   (156 )   (24 )   782     1,593  
    Income taxes   291     499     170     231     33     (158 )   (123 )   627  
    Depreciation   1,614     1,460     1,497     1,402     1,361     1,148     1,185     1,542  
    Amortization – intangibles   4,358     4,482     4,345     4,096     3,499     3,743     3,384     3,343  
    EBITDA $ 4,145   $ 3,448   $ 2,220   $ 1,316   $ 4,429   $ 1,127   $ 3,022   $ 3,340  
    EBITDA Margin   11.9 %   11.2 %   7.6 %   4.7 %   14.0 %   4.3 %   10.3 %   11.0 %
                     
    Share-based Compensation   1,863     1,463     1,591     1,488     1,902     1,260     1,251     1,582  
    One Time Expenses                
    Settlements, penalties & interest   581     266     375     339     147     283     140     436  
    Acquisition and transaction costs   779     665     1,001     914     254     51     —     —  
    Other non-recurring expenses   136     385     253     —     86     53     —     633  
    Other expense (income), net   (188 )   2     —     —     (10 )   1     1,800     93  
    Adjusted EBITDA $ 7,316   $ 6,229   $ 5,440   $ 4,057   $ 6,808   $ 2,775   $ 6,213   $ 6,084  
    Adjusted EBITDA Margin   21.0 %   20.2 %   18.6 %   14.5 %   21.5 %   10.6 %   21.2 %   20.0 %
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

    Investor Relations Contact
    Patrick McKillop
    Vice President, Investor Relations
    617-335-5058
    patrick.mckillop@asuresoftware.com 

    The MIL Network –

  • MIL-OSI: Monolithic Power Systems Earnings Commentary for the Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    KIRKLAND, Wash., May 01, 2025 (GLOBE NEWSWIRE) — MPS will report its results after the market closes on May 1, 2025 and host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webcast, which can be accessed at https://mpsic.zoom.us/j/92570889542.

    Q1 2025 Financial Summary  (Unaudited)
      GAAP
      Q1’25
    		   Q4’24
    		   Q1’24
    		     QoQ Change YoY Change
    Revenue ($k) $ 637,554   $ 621,665   457,885     Up 2.6% Up 39.2%
    Gross Margin 55.4%   55.4%   55.1%     Flat Up 0.3 pts
    Opex ($k) $ 184,471   $ 181,101   156,954     Up 1.9% Up 17.5%
    Operating Margin 26.5%   26.3%   20.9%     Up 0.2 pts Up 5.6 pts
    Net income ($k) $ 133,791   $ 1,449,363   92,541     Down 90.8% Up 44.6%
    Diluted EPS $ 2.79   $ 29.88   1.89     Down 90.7% Up 47.6%
      Non-GAAP
      Q1’25
    		   Q4’24
    		   Q1’24
    		     QoQ Change YoY Change
    Revenue ($k) $ 637,554   $ 621,665   $ 457,885     Up 2.6% Up 39.2%
    Gross Margin 55.7%   55.8%   55.7%     Down 0.1 pts Flat
    Opex ($k) $ 133,526   $ 126,117   $ 103,426     Up 5.9% Up 29.1%
    Operating Margin 34.7%   35.5%   33.1%     Down 0.8 pts Up 1.6 pts
    Net income ($k) $ 193,813   $ 198,401   $ 137,492     Down 2.3% Up 41.0%
    Diluted EPS $ 4.04   $ 4.09   $ 2.81     Down 1.2% Up 43.8%
    Tax Rate 15.0%   12.5%   12.5%     Up 2.5 pts Up 2.5 pts
    Revenue by End Market
     
        Revenue   YoY Change   % of Revenue
    End Market ($M)   Q1’25
    		 Q1’24   $   %     Q1’25   Q1’24  
    Storage & Computing   $ 188.5 $ 106.1   $ 82.4   77.7%     29.6 %  23.2 % 
    Automotive   144.9 87.1   57.8   66.4%     22.7   19.0  
    Enterprise Data   132.9 149.7   (16.8 )  (11.2% )    20.8   32.7  
    Communications   71.8 46.7   25.1   53.7%     11.3   10.2  
    Consumer   56.9 38.1   18.8   49.3%     8.9   8.3  
    Industrial   42.6 30.2   12.4   41.1%     6.7   6.6  
    Total   $ 637.6 $ 457.9   $ 179.7   39.2%     100 %  100 % 
                               

    Ongoing Business Conditions

    In Q1 2025, MPS achieved record quarterly revenue of $637.6 million, slightly higher than revenue in the fourth quarter of 2024 and 39.2% higher than revenue in the first quarter of 2024.

    Our performance during the quarter reflected the continued strength of our diversified market strategy and a continued trend of the ordering patterns we saw at the end of 2024.

    Q1 2025 highlights include:

    • At our March 20th investor day, we showcased MPS innovation across a range of areas including new opportunities in Robotics, Automotive, Data Center, Building Automation, Medical, and Audio.
    • In Q1, Storage and Computing segment revenue increased 38% quarter-over-quarter on strong demand for both memory and notebook solutions.
    • We continue to win designs across all major Enterprise Data customers with revenue ramps expected in the second half of this year.
    • Finally, Q1 ’25 Automotive revenue increased 13% from Q4’24, the third consecutive quarter of sequential double-digit growth.

    MPS continues to focus on innovation, solving our customers’ most challenging problems, and maintaining the highest level of quality. We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and swiftly adapt to market changes as they occur.

    “Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.

    Q1’25 Revenue Results

    MPS reported first quarter revenue of $637.6 million, slightly higher than the fourth quarter of 2024 and 39.2% higher than the first quarter of 2024. Compared with the fourth quarter of 2024, sales in Storage & Computing, Automotive, Communication and Industrial improved sequentially.

    First quarter 2025 Storage and Computing revenue of $188.5 million increased 38.1% from the fourth quarter of 2024. The sequential increase was primarily driven by higher sales of power solutions for storage and notebooks. First quarter 2025 Storage and Computing revenue was up 77.7% year over year. Storage and Computing revenue represented 29.6% of MPS’s first quarter 2025 revenue compared with 22.0% in the fourth quarter of 2024.

    First quarter Automotive revenue of $144.9 million increased 12.9% from the fourth quarter of 2024 primarily from higher sales in ADAS, body electronics, and infotainment power solutions. First quarter 2025 Automotive revenue was up 66.4% year over year. Automotive revenue represented 22.7% of MPS’s first quarter 2025 revenue compared with 20.6% in the fourth quarter of 2024.

    First quarter 2025 Communications revenue of $71.8 million was up 12.3% from the fourth quarter of 2025 primarily on higher sales into networking and optical solutions. First quarter 2025 Communications revenue was up 53.7% year over year. Communications sales represented 11.3% of our total first quarter 2025 revenue compared with 10.3% in the fourth quarter of 2024.

    First quarter 2025 Industrial revenue of $42.6 million increased 4.3% from the fourth quarter of 2024 primarily due to higher sales for industrial meters. First quarter 2025 Industrial revenue was up 41.1% year over year. Industrial revenue represented 6.7% of our total first quarter 2025 revenue compared with 6.6% in the fourth quarter of 2024.

    First quarter Consumer revenue of $56.9 million decreased 0.6% from the fourth quarter of 2024 primarily from lower sales in gaming partially offset by higher sales for TV solutions. First quarter 2025 Consumer revenue was up 49.3% year over year. Consumer revenue represented 8.9% of MPS’s first quarter 2025 revenue compared with 9.2% in the fourth quarter of 2024.

    In our Enterprise Data market, first quarter 2025 revenue of $132.9 million decreased 31.8% from the fourth quarter of 2024. First quarter 2025 Enterprise Data revenue was down 11.2% year over year. Enterprise Data revenue represented 20.8% of MPS’s first quarter 2025 revenue compared with 31.3% in the fourth quarter of 2024.

    Q1’25 Gross Margin & Operating Income

    GAAP gross margin was 55.4%, flat to the fourth quarter of 2024. Our GAAP operating income was $168.8 million compared to $163.3 million reported in the fourth quarter of 2024.

    Non-GAAP gross margin for the first quarter of 2025 was 55.7%, down 0.1 percentage points compared to the fourth quarter of 2024. Our non-GAAP operating income was $221.5 million compared to $220.7 million reported in the fourth quarter of 2024.

    Q1’25 Operating Expenses

    Our GAAP operating expenses were $184.5 million in the first quarter of 2025 compared with $181.1 million in the fourth quarter of 2024.

    Our Non-GAAP operating expenses were $133.5 million, up from $126.1 million in the fourth quarter of 2024.

    The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan income.

    Total stock-based compensation and related expenses, including approximately $1.7 million charged to cost of goods sold, was $53.8 million compared with $56.3 million recorded in the fourth quarter of 2024.

    The Bottom Line

    First quarter 2025 GAAP net income was $133.8 million or $2.79 per fully diluted share, compared with $1.4 billion or $29.88 per share in the fourth quarter of 2024. Fourth quarter 2024 GAAP net income and EPS included the recognition of a tax benefit granted to a foreign subsidiary.

    First quarter 2025 non-GAAP net income was $193.8 million or $4.04 per fully diluted share, compared with $198.4 million or $4.09 per fully diluted share in the fourth quarter of 2024.

    The first quarter 2025 non-GAAP tax rate increased to 15% from 12.5% in the fourth quarter of 2024.

    There were 48.0 million fully diluted shares outstanding at the end of the first quarter of 2025.

    Balance Sheet and Cash Flow

    Cash, cash equivalents and short-term investments were $1,026.7 million at the end of the first quarter of 2025 compared to $862.9 million at the end of the fourth quarter of 2024. For the first quarter of 2025, MPS generated operating cash flow of $256.4 million compared with the fourth quarter of 2024 operating cash flow of $167.7 million.

    Accounts receivable at the end of the first quarter of 2025 were $214.9 million, representing 31 days of sales outstanding, which was 6 days higher than the 25 days reported at the end of the fourth quarter of 2024.

    Our internal inventories at the end of the first quarter of 2025 were $454.8 million, up from $419.6 million at the end of the fourth quarter of 2024. Days of inventory of 146 days at the end of the first quarter of 2025 was 8 days higher than at the end of the fourth quarter of 2024.

    We have carefully managed our internal inventories throughout the year, balancing the uncertainty in the market with being prepared to capture market upturns when they occur. Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the first quarter of 143 days was 9 days higher than at the end of the fourth quarter of 2024.

    Selected Balance Sheet and Inventory Data (Unaudited)
           
      Q1’25 Q4’24 Q1’24
    Cash, Cash Equivalents, and Short-Term Investments $ 1,026.7 M $ 862.9 M $ 1,286.4 M
    Operating Cash Flow $ 256.4 M $ 167.7 M $ 248.0 M
    Accounts Receivable $ 214.9 M $ 172.5 M $ 194.4 M
    Days of Sales Outstanding 31 Days 25 Days 39 Days
    Internal Inventories $ 454.8 M $ 419.6 M $ 396.0 M
    Days of Inventory (current quarter revenue) 146 Days 138 Days 175 Days
    Days of Inventory (next quarter revenue) 143 Days 134 Days 159 Days
           

    Q2’25 Business Outlook

    For the second quarter of 2025 ending June 30, we are forecasting:

    • Revenue in the range of $640 million to $660 million.
    • GAAP gross margin in the range of 54.9% to 55.5%.
    • Non-GAAP gross margin in the range of 55.2% to 55.8%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.
    • Total stock-based compensation and related expenses in the range of $58.3 million to $60.3 million including approximately $1.9 million that would be charged to cost of goods sold.
    • GAAP operating expenses between $189 million and $195 million.
    • Non-GAAP operating expenses in the range of $132.6 million to $136.6 million. This estimate excludes stock-based compensation and related expenses in the range of $56.4 million to $58.4 million.
    • Interest and other income in the range from $6.2 million to $6.6 million before foreign exchange gains or losses.
    • Non-GAAP tax rate of 15% for 2025.
    • Fully diluted shares outstanding in the range of 47.9 to 48.3 million shares.

    For further information, contact:

    Bernie Blegen
    Executive Vice President and Chief Financial Officer
    Monolithic Power Systems, Inc.
    408-826-0777
    MPSInvestor.Relations@monolithicpower.com 

    Safe Harbor Statement

    This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Q2’25 Business Outlook” section herein, our statement regarding our business focus, our statement regarding the expansion and diversification of our global supply chain and the quote from our CEO and founder, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the second quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, global tariffs and retaliatory measures, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs and retaliatory measures, and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar.

    Non-GAAP Financial Measures

    This CFO Commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income, net, non-GAAP operating income and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, other income, net, operating income and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense (income), amortization of acquisition-related intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income (expense). Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP other income, net excludes the effect of deferred compensation plan expense (income). Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense (income). Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.

    RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
    (Unaudited, in thousands, except per share amounts)
     
        Three Months Ended March 31,
        2025   2024
    Net income   $ 133,791     $ 92,541  
                     
    Adjustments to reconcile net income to non-GAAP net income:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income), net     (6 )     47  
    Tax effect     5,897       (7,156 )
    Non-GAAP net income   $ 193,813     $ 137,492  
                     
    Non-GAAP net income per share:                
    Basic   $ 4.05     $ 2.83  
    Diluted   $ 4.04     $ 2.81  
                     
    Shares used in the calculation of non-GAAP net income per share:                
    Basic     47,851       48,635  
    Diluted     48,006       48,928  
    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Gross profit   $ 353,230     $ 252,441  
    Gross margin     55.4 %     55.1 %
                     
    Adjustments to reconcile gross profit to non-GAAP gross profit:                
    Stock-based compensation and related expenses     1,706       1,900  
    Amortization of acquisition-related intangible assets     287       258  
    Deferred compensation plan expense (income)     (163 )     440  
    Non-GAAP gross profit   $ 355,060     $ 255,039  
    Non-GAAP gross margin     55.7 %     55.7 %
    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)
     
        Three Months Ended March 31,
        2025   2024
    Total operating expenses   $ 184,471     $ 156,954  
                     
    Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:                
    Stock-based compensation and related expenses     (52,105 )     (49,869 )
    Amortization of acquisition-related intangible assets     (33 )     (33 )
    Deferred compensation plan income (expense)     1,193       (3,626 )
    Non-GAAP operating expenses   $ 133,526     $ 103,426  
                     
    RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
    (Unaudited, in thousands)
     
        Three Months Ended March 31,
        2025   2024
    Total operating income   $ 168,759     $ 95,487  
                     
    Adjustments to reconcile total operating income to non-GAAP total operating income:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income)     (1,356 )     4,066  
    Non-GAAP operating income   $ 221,534     $ 151,613  
                     
    RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET
    (Unaudited, in thousands)
     
        Three Months Ended March 31,
        2025   2024  
    Total other income, net   $ 5,131     $ 9,540  
                   
    Adjustments to reconcile other income, net to non-GAAP other income, net:              
    Deferred compensation plan expense (income)     1,350       (4,019 )
    Non-GAAP other income, net   $ 6,481     $ 5,521  
                     
    RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
    (Unaudited, in thousands)
     
        Three Months Ended March 31,
        2025   2024
    Total income before income taxes   $ 173,890     $ 105,027
                   
    Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:              
    Stock-based compensation and related expenses     53,811       51,769
    Amortization of acquisition-related intangible assets     320       291
    Deferred compensation plan expense (income), net     (6 )     47
    Non-GAAP income before income taxes   $ 228,015     $ 157,134
                   
    2025 SECOND QUARTER OUTLOOK
    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited)
        Three Months Ending
    March 31, 2025
                     
        Low   High
    Gross margin     54.9 %     55.5 %
    Adjustment to reconcile gross margin to non-GAAP gross margin:                
    Stock-based compensation and other expenses     0.3 %     0.3 %
    Non-GAAP gross margin     55.2 %     55.8 %
                     
    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)
        Three Months Ending
    March 31, 2025
                     
        Low   High
    Operating expenses   $ 189,000     $ 195,000  
    Adjustments to reconcile operating expenses to non-GAAP operating expenses:                
    Stock-based compensation and other expenses     (56,400 )     (58,400 )
    Non-GAAP operating expenses   $ 132,600     $ 136,600  
                     

    The MIL Network –

  • MIL-OSI: Viper Energy, Inc. Announces Closing of Drop Down Transaction

    Source: GlobeNewswire (MIL-OSI)

    MIDLAND, Texas, May 01, 2025 (GLOBE NEWSWIRE) — Viper Energy, Inc. (NASDAQ: VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today announced that it and its operating subsidiary, Viper Energy Partners LLC (the “Operating Company”), have closed their previously announced acquisition of all of the equity interests in certain mineral and royalty interest-owning subsidiaries of Diamondback (the “Drop Down”). The total consideration for the Drop Down consisted of (i) $1.0 billion in cash and (ii) the issuance (the “Equity Issuance”) of 69,626,640 units representing limited liability company interests in the Operating Company and an equivalent number of shares of Viper’s Class B Common Stock, in each case, subject to transaction costs and certain customary post-closing adjustments.

    The mineral and royalty interests acquired by the Operating Company in the Drop Down represent approximately 22,847 net royalty acres in the Permian Basin, approximately 69% of which are currently operated by Diamondback. Viper funded the cash consideration for the Drop Down with (i) proceeds from its previously announced underwritten public offering of shares of its Class A Common Stock, completed on February 3, 2025, and (ii) borrowings under the Operating Company’s revolving credit facility. Immediately following the completion of the Drop Down, Diamondback beneficially owned approximately 53.7% of Viper’s outstanding voting common stock.

    The Drop Down was approved by Viper’s audit committee comprised of all independent directors and the full board of directors, in each case, on January 30, 2025, and by the majority of the Company’s stockholders, other than Diamondback and its subsidiaries, at the special meeting of the Company’s stockholders held on May 1, 2025 (the “Special Meeting”). At the Special Meeting, Viper’s stockholders also approved the Equity Issuance, as required under the rules of The Nasdaq Stock Market LLC.

    About Viper Energy, Inc.

    Viper is a corporation formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin. For more information, please visit www.viperenergy.com.

    About Diamondback Energy, Inc.

    Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

    Forward-Looking Statements

    This news 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, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Viper’s: future performance; business strategy; future operations; estimates and projections of operating income, losses, costs and expenses, returns, cash flow, and financial position; production levels on properties in which Viper has mineral and royalty interests, developmental activity by other operators; reserve estimates and Viper’s ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the Drop Down and other acquisitions or divestitures); and plans and objectives (including Diamondback’s plans for developing Viper’s acreage and Viper’s cash dividend policy and common stock repurchase program) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Viper are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Viper believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond its control. Accordingly, forward-looking statements are not guarantees of Viper’s future performance and the actual outcomes could differ materially from what Viper expressed in its forward-looking statements.

    Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases, and any related company or government policies or actions; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers, and any resulting trade tensions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial sector; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production on Viper’s mineral and royalty acreage, or governmental orders, rules or regulations that impose production limits on such acreage; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change and the risks and other factors disclosed in Viper’s filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the Securities and Exchange Commission’s web site at http://www.sec.gov.

    In light of these factors, the events anticipated by Viper’s forward-looking statements may not occur at the time anticipated or at all. Moreover, new risks emerge from time to time. Viper cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements made in this news release. All forward-looking statements speak only as of the date of this news release or, if earlier, as of the date they were made. Viper does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

    Investor Contact:
    Chip Seale
    +1 432.247.6218
    cseale@viperenergy.com

    The MIL Network –

  • MIL-OSI: Monolithic Power Systems Announces Results for the First Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    KIRKLAND, Wash., May 01, 2025 (GLOBE NEWSWIRE) — Monolithic Power Systems, Inc. (“MPS”) (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced financial results for the quarter ended March 31, 2025.

    The financial results for the quarter ended March 31, 2025 were as follows:

    • Revenue was $637.6 million for the quarter ended March 31, 2025, a 2.6% increase from $621.7 million for the quarter ended December 31, 2024 and a 39.2% increase from $457.9 million for the quarter ended March 31, 2024.
    • GAAP gross margin was 55.4% for the quarter ended March 31, 2025, compared with 55.1% for the quarter ended March 31, 2024.
    • Non-GAAP gross margin (1) was 55.7% for the quarter ended March 31, 2025, excluding the impact of $1.7 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $0.2 million for deferred compensation plan income, compared with 55.7% for the quarter ended March 31, 2024, excluding the impact of $1.9 million for stock-based compensation and related expenses, $0.4 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets.
    • GAAP operating expenses were $184.5 million for the quarter ended March 31, 2025, compared with $157.0 million for the quarter ended March 31, 2024.
    • Non-GAAP operating expenses (1) were $133.5 million for the quarter ended March 31, 2025, excluding $52.1 million for stock-based compensation and related expenses and $1.2 million for deferred compensation plan income, compared with $103.4 million for the quarter ended March 31, 2024, excluding $49.9 million for stock-based compensation and related expenses and $3.6 million for deferred compensation plan expense.
    • GAAP operating income was $168.8 million for the quarter ended March 31, 2025, compared with $95.5 million for the quarter ended March 31, 2024.
    • Non-GAAP operating income (1) was $221.5 million for the quarter ended March 31, 2025, excluding $53.8 million for stock-based compensation and related expenses, $1.4 million for deferred compensation plan income and $0.3 million for amortization of acquisition-related intangible assets, compared with $151.6 million for the quarter ended March 31, 2024, excluding $51.8 million for stock-based compensation and related expenses, $4.1 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets.
    • GAAP other income, net was $5.1 million for the quarter ended March 31, 2025, compared with $9.5 million for the quarter ended March 31, 2024.
    • Non-GAAP other income, net (1) was $6.5 million for the quarter ended March 31, 2025, excluding $1.4 million for deferred compensation plan expense, compared with $5.5 million for the quarter ended March 31, 2024, excluding $4.0 million for deferred compensation plan income.
    • GAAP income before income taxes was $173.9 million for the quarter ended March 31, 2025, compared with $105.0 million for the quarter ended March 31, 2024.
    • Non-GAAP income before income taxes (1) was $228.0 million for the quarter ended March 31, 2025, excluding $53.8 million for stock-based compensation and related expenses and $0.3 million for amortization of acquisition-related intangible assets, compared with $157.1 million for the quarter ended March 31, 2024, excluding $51.8 million for stock-based compensation and related expenses and $0.3 million for amortization of acquisition-related intangible assets.
    • GAAP net income was $133.8 million and $2.79 per diluted share for the quarter ended March 31, 2025. Comparatively, GAAP net income was $92.5 million and $1.89 per diluted share for the quarter ended March 31, 2024.
    • Non-GAAP net income (1) was $193.8 million and $4.04 per diluted share for the quarter ended March 31, 2025, excluding $53.8 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $5.9 million for related tax effects, compared with $137.5 million and $2.81 per diluted share for the quarter ended March 31, 2024, excluding $51.8 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $7.2 million for related tax effects.

    The following is a summary of revenue by end market (in thousands):

        Three Months Ended March 31,
    End Market   2025   2024
    Storage and Computing   $ 188,511   $ 106,121
    Automotive     144,904     87,092
    Enterprise Data     132,924     149,727
    Communications     71,671     46,645
    Consumer     56,947     38,074
    Industrial     42,597     30,226
    Total   $ 637,554   $ 457,885

    “Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS. 

    Business Outlook

    The following are MPS’s financial targets for the second quarter ending June 30, 2025:

    • Revenue in the range of $640.0 million to $660.0 million.
    • GAAP gross margin between 54.9% and 55.5%. Non-GAAP gross margin (1) between 55.2% and 55.8%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.
    • GAAP operating expenses between $189.0 million and $195.0 million. Non-GAAP operating expenses (1) between $132.6 million and $136.6 million, which excludes estimated stock-based compensation and related expenses in the range of $56.4 million to $58.4 million.
    • Total stock-based compensation and related expenses of $58.3 million to $60.3 million including approximately $1.9 million that would be charged to cost of goods sold.
    • Interest and other income in the range of $6.2 million to $6.6 million before foreign exchange gains or losses.
    • Non-GAAP tax rate of 15% for 2025.
    • Fully diluted shares outstanding between 47.9 million and 48.3 million.

    (1) Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense (income), amortization of acquisition-related intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income (expense). Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP other income, net excludes the effect of deferred compensation plan expense (income). Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense (income). Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to non-GAAP reconciliations in the tables set forth below.

    Earnings Commentary
    Earnings commentary on the results of operations for the quarter ended March 31, 2025 is available under the Investor Relations page on the MPS website.

    Earnings Webinar
    MPS plans to host a question-and-answer webinar covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, May 1, 2025. The live event will be held via a Zoom webcast, which can be accessed at: https://mpsic.zoom.us/j/92570889542. The Zoom webcast can also be accessed live over the phone by dialing (669) 444-9171; the webcast ID is 92570889542. A replay of the event will be archived and available for replay for one year under the Investor Relations page on the MPS website.

    Safe Harbor Statement
    This press release contains, and statements that will be made during the accompanying earnings webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Business Outlook” section and the quote from our CEO herein, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the second quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying earnings webinar are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, global tariffs and retaliatory measures, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs and retaliatory measures, and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this press release or in the accompanying earnings webinar.

    About Monolithic Power Systems
    Monolithic Power Systems, Inc. (“MPS”) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

    Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries. 

    Contact:
    Bernie Blegen
    Executive Vice President and Chief Financial Officer
    Monolithic Power Systems, Inc.
    408-826-0777
    MPSInvestor.Relations@monolithicpower.com

    Monolithic Power Systems, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited, in thousands, except par value)
        March 31,   December 31,
        2025   2024
    ASSETS                
    Current assets:                
    Cash and cash equivalents   $ 637,354     $ 691,816  
    Short-term investments     389,310       171,130  
    Accounts receivable, net     214,866       172,518  
    Inventories     454,793       419,611  
    Other current assets     92,063       109,978  
    Total current assets     1,788,386       1,565,053  
    Property and equipment, net     527,348       494,945  
    Acquisition-related intangible assets, net     9,651       9,938  
    Goodwill     25,944       25,944  
    Deferred tax assets, net     1,318,457       1,326,840  
    Other long-term assets     135,974       194,377  
    Total assets   $ 3,805,760     $ 3,617,097  
                     
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    Current liabilities:                
    Accounts payable   $ 127,310     $ 102,526  
    Accrued compensation and related benefits     74,785       63,918  
    Other accrued liabilities     161,306       128,123  
    Total current liabilities     363,401       294,567  
    Income tax liabilities     69,535       65,193  
    Other long-term liabilities     105,814       111,570  
    Total liabilities     538,750       471,330  
    Commitments and contingencies                
    Stockholders’ equity:                
    Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,877 and 47,823, respectively     764,959       706,817  
    Retained earnings     2,545,375       2,487,461  
    Accumulated other comprehensive loss     (43,324 )     (48,511 )
    Total stockholders’ equity     3,267,010       3,145,767  
    Total liabilities and stockholders’ equity   $ 3,805,760     $ 3,617,097  
    Monolithic Power Systems, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited, in thousands, except per share amounts)
        Three Months Ended March 31,
        2025   2024
    Revenue   $ 637,554     $ 457,885  
    Cost of revenue     284,324       205,444  
    Gross profit     353,230       252,441  
    Operating expenses:                
    Research and development     92,227       75,990  
    Selling, general and administrative     92,244       80,964  
    Total operating expenses     184,471       156,954  
    Operating income     168,759       95,487  
    Other income, net     5,131       9,540  
    Income before income taxes     173,890       105,027  
    Income tax expense     40,099       12,486  
    Net income   $ 133,791     $ 92,541  
                     
    Net income per share:                
    Basic   $ 2.80     $ 1.90  
    Diluted   $ 2.79     $ 1.89  
    Weighted-average shares outstanding:                
    Basic     47,851       48,635  
    Diluted     48,006       48,928  
    RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
    (Unaudited, in thousands, except per share amounts)
        Three Months Ended March 31,
        2025   2024
    Net income   $ 133,791     $ 92,541  
                     
    Adjustments to reconcile net income to non-GAAP net income:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income), net     (6 )     47  
    Tax effect     5,897       (7,156 )
    Non-GAAP net income   $ 193,813     $ 137,492  
                     
    Non-GAAP net income per share:                
    Basic   $ 4.05     $ 2.83  
    Diluted   $ 4.04     $ 2.81  
                     
    Shares used in the calculation of non-GAAP net income per share:                
    Basic     47,851       48,635  
    Diluted     48,006       48,928  
    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Gross profit   $ 353,230     $ 252,441  
    Gross margin     55.4 %     55.1 %
                     
    Adjustments to reconcile gross profit to non-GAAP gross profit:                
    Stock-based compensation and related expenses     1,706       1,900  
    Amortization of acquisition-related intangible assets     287       258  
    Deferred compensation plan expense (income)     (163 )     440  
    Non-GAAP gross profit   $ 355,060     $ 255,039  
    Non-GAAP gross margin     55.7 %     55.7 %
    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total operating expenses   $ 184,471     $ 156,954  
                     
    Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:                
    Stock-based compensation and related expenses     (52,105 )     (49,869 )
    Amortization of acquisition-related intangible assets     (33 )     (33 )
    Deferred compensation plan income (expense)     1,193       (3,626 )
    Non-GAAP operating expenses   $ 133,526     $ 103,426  
    RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total operating income   $ 168,759     $ 95,487  
                     
    Adjustments to reconcile total operating income to non-GAAP total operating income:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income)     (1,356 )     4,066  
    Non-GAAP operating income   $ 221,534     $ 151,613  
    RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total other income, net   $ 5,131     $ 9,540  
                     
    Adjustments to reconcile other income, net to non-GAAP other income, net:                
    Deferred compensation plan expense (income)     1,350       (4,019 )
    Non-GAAP other income, net   $ 6,481     $ 5,521  
    RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total income before income taxes   $ 173,890     $ 105,027  
                     
    Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income), net     (6 )     47  
    Non-GAAP income before income taxes   $ 228,015     $ 157,134  
    2025 SECOND QUARTER OUTLOOK
    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited)
        Three Months Ending
        June 30, 2025
        Low   High
    Gross margin     54.9 %     55.5 %
    Adjustment to reconcile gross margin to non-GAAP gross margin:                
    Stock-based compensation and other expenses     0.3 %     0.3 %
    Non-GAAP gross margin     55.2 %     55.8 %
    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)
        Three Months Ending
        June 30, 2025
        Low   High
    Operating expenses   $ 189,000     $ 195,000  
    Adjustments to reconcile operating expenses to non-GAAP operating expenses:                
    Stock-based compensation and other expenses     (56,400 )     (58,400 )
    Non-GAAP operating expenses   $ 132,600     $ 136,600  

    The MIL Network –

  • MIL-OSI: GSI Technology, Inc. Reports Fourth Quarter and Fiscal Year 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    SUNNYVALE, Calif., May 01, 2025 (GLOBE NEWSWIRE) — GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its fourth fiscal quarter and fiscal year ended March 31, 2025.

    Summary Financial Results Table (in thousands, except per share amounts)

      Three Months Ended 12 Months Ended
      Mar. 31,
    2025    		 Dec. 31,
    2024    		 Mar. 31,
    2024    		 Mar. 31,
    2025    		 Mar. 31,
    2024
    Net revenues $ 5,883     $ 5,414     $ 5,152     $ 20,518     $ 21,765  
    Gross margin (%)   56.1 %     54.0 %     51.6 %     49.4 %     54.3 %
    Operating expenses $ 5,575     $ 6,978     $ 7,172     $ 20,975     $ 32,254  
    Operating loss $ (2,276 )   $ (4,055 )   $ (4,514 )   $ (10,835 )   $ (20,431 )
    Net loss $ (2,230 )   $ (4,029 )   $ (4,321 )   $ (10,639 )   $ (20,087 )
    Net loss per share, diluted $ (0.09 )   $ (0.16 )   $ (0.17 )   $ (0.42 )   $ (0.80 )
                                           

    Lee-Lean Shu, Chairman and Chief Executive Officer, stated, “Our fourth quarter revenue increased 14% year-over-year and 9% sequentially to $5.9 million, reflecting strong demand for our legacy SRAM chips. This performance, combined with disciplined cost management, led to a significantly reduced net loss and lower cash burn for the quarter.”

    Mr. Shu continued, “ I am excited to announce that we secured an initial order for our radiation-hardened SRAM from a North American prime contractor, with follow-on orders expected in fiscal 2026. This sale also carries a significantly higher gross margin than our traditional SRAM chips. In parallel, we are actively pursuing heritage status for this chip, which will improve our market readiness and open important new sales channels. On the APU front, we expect to receive production-ready Gemini-II chips and Leda-2 boards by the end of the first quarter of fiscal 2026. In addition, our Gemini-II SBIR programs with the Space Development Agency (SDA) and US Air Force Research Laboratory (AFRL) remain on schedule. We delivered a server with a Leda-2 board to AFRL and will soon ship a Gemini-II card to SDA. Funds from these programs are offsetting our R&D expenditures for Gemini-II.”

    Mr. Shu concluded, “We are especially excited about a recent enhancement to Plato: adding the integration of a camera interface directly into the chip. This and other enhanced connectivity features create a compact, all-in-one optimized AI and LLM engine for edge devices, particularly well suited for agents requiring object recognition. With the ability to process data locally, without relying on cloud infrastructure, Plato now offers a powerful and flexible accelerator for next-generation edge computing applications. The new capability has increased strategic interest in Plato, and we are currently in preliminary discussions with multiple parties to secure partnerships to fund the next phase of development.”

    Commenting on the outlook for GSI’s first quarter of fiscal 2026, Mr. Shu stated, “Our current expectations for the upcoming first quarter of fiscal 2026 is for net revenues in a range of $5.5 million to $6.3 million, with gross margin of approximately 56% to 58%.”

    Fiscal Year 2025 Summary Financials

    The Company reported net revenues of $20.5 million for the fiscal year ended March 31, 2025, compared to $21.8 million for fiscal 2024. Gross margin was 49.4% for fiscal 2025 compared to 54.3% in fiscal 2024. The decrease in gross margin was primarily due to product mix and the effect of lower revenue on the fixed costs in our cost of revenues.

    Total operating expenses were $21.0 million in fiscal 2025, compared to $32.3 million in fiscal 2024. Research and development expenses were $16.0 million, compared to $21.7 million in the prior fiscal year. Selling, general and administrative expenses were $10.8 million, compared to $10.6 million in fiscal 2024. The decline in research and development expenses was primarily due to cost reductions announced in August 2024. Research and development expense in fiscal 2024 included pre-production mask costs of $2.4 million related to our Gemini-II product.

    Research and development expenses in fiscal 2025 and fiscal 2024 were reduced by $1.2 million and $440,000, respectively, reflecting government funding under the SBIR programs. Operating expenses in fiscal 2025 include a gain on the sale of assets of $5.8 million from the sales of the Company’s headquarters building in Sunnyvale, CA, in a sales and leaseback transaction.

    The operating loss for fiscal 2025 was $(10.8) million compared to an operating loss of $(20.4) million in the prior year. The fiscal 2025 net loss included interest and other income of $326,000 and a tax provision of $130,000, compared to $414,000 in interest and other income and a tax provision of $70,000 in the prior fiscal year.

    Net loss for fiscal 2025 was $(10.6) million, or $(0.42) per diluted share, compared to a net loss of $(20.1) million, or $(0.80) per diluted share, for fiscal 2024.

    Fourth Quarter Fiscal Year 2025 Summary Financials

    The Company reported net revenues of $5.9 million for the fourth quarter of fiscal 2025, compared to $5.2 million for the fourth quarter of fiscal 2024 and $5.4 million for the third quarter of fiscal 2025. Gross margin was 56.1% in the fourth quarter of fiscal 2025 compared to 51.6% in the fourth quarter of fiscal 2024 and 54.0% in the preceding third quarter of fiscal 2025. The sequential increase in gross margin in the fourth quarter of fiscal 2025 was primarily due to higher revenue and product mix.

    In the fourth quarter of fiscal 2025, sales to KYEC were $1.7 million, or 29.5% of net revenues, compared to $544,000, or 10.6% of net revenues, in the same period a year ago and $1.2 million, or 22.7% of net revenues, in the prior quarter. In the fourth quarter of fiscal 2025, sales to Nokia were $444,000, or 7.5% of net revenues, compared to $694,000, or 13.5% of net revenues, in the same period a year ago and $239,000, or 4.4% of net revenues, in the prior quarter. Military/defense sales were 30.7% of fourth quarter shipments compared to 35.5% of shipments in the comparable period a year ago and 30.0% of shipments in the prior quarter. SigmaQuad sales were 39.3% of fourth quarter shipments compared to 42.4% in the fourth quarter of fiscal 2024 and 39.1% in the prior quarter.

    Total operating expenses in the fourth quarter of fiscal 2025 were $5.6 million, compared to $7.2 million in the fourth quarter of fiscal 2024 and $7.0 million in the prior quarter. Research and development expenses were $3.0 million, compared to $4.8 million in the prior-year period and $4.0 million in the prior quarter. Research and development expenses in the fourth quarter of fiscal 2025 were reduced by $870,000, reflecting government funding under the SBIR programs. Selling, general and administrative expenses were $2.6 million in the quarter ended March 31, 2025, compared to $2.4 million in the prior year quarter and $3.0 million in the previous quarter.

    Fourth quarter fiscal 2025 operating loss was $(2.3) million compared to an operating loss of $(4.5) million in the prior-year period and $(4.1) million in the prior quarter. Fourth quarter fiscal 2025 net loss included interest and other income of $52,000 and a tax provision of $6,000, compared to $108,000 in interest and other income and a tax benefit of $(85,000) for the same period a year ago. In the preceding third quarter, net loss included interest and other income of $70,000 and a tax provision of $44,000.

    Net loss in the fourth quarter of fiscal 2025 was $(2.2) million, or $(0.09) per diluted share, compared to a net loss of $(4.3) million, or $(0.17) per diluted share, for the fourth quarter of fiscal 2024 and a net loss of $(4.0) million, or $(0.16) per diluted share, for the third quarter of fiscal 2025.

    Total fourth quarter pre-tax stock-based compensation expense was $512,000 compared to $693,000 in the comparable quarter a year ago and $429,000 in the prior quarter.

    At March 31, 2025, the Company had $13.4 million in cash and cash equivalents, compared to $14.4 million at March 31, 2024. Working capital was $16.4 million as of March 31, 2025 versus $24.7 million at March 31, 2024. Stockholders’ equity as of March 31, 2025 was $28.2 million, compared to $36.0 million as of the fiscal year ended March 31, 2024.

    Conference Call

    Management will conduct a conference call to review the Company’s financial results for the fourth quarter and fiscal year 2025 and its current outlook for the first quarter of fiscal 2026 at 1:30 p.m. Pacific time (4:30 p.m. Eastern Time) today.

    To participate in the call, please dial 1-877-407-3982 in the U.S. or 1-201-493-6780 for international approximately 10 minutes prior to the above start time and provide Conference ID 13753362. The call will also be streamed live via the internet at www.gsitechnology.com.

    A replay will be available from May 1, 2025, at 7:30 p.m. Eastern Time through May 8, 2025, at 11:59 p.m. Eastern Time by dialing toll-free for the U.S. 1-844-512-2921 or international 1-412-317-6671 and entering pin number 13753362. A webcast of the call will be archived on the Company’s investor relations website under the Events and Presentations tab.

    About GSI Technology

    Founded in 1995, GSI Technology, Inc. is a leading provider of semiconductor memory solutions. GSI’s resources are focused on bringing new products to market that leverage existing core strengths, including radiation-hardened memory products for extreme environments and Gemini-I, the associative processing unit designed to deliver performance advantages for diverse artificial intelligence applications. GSI Technology is headquartered in Sunnyvale, California, and has sales offices in the Americas, Europe, and Asia. For more information, please visit www.gsitechnology.com.

    Forward-Looking Statements

    The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding GSI Technology’s expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to GSI Technology as of the date hereof, and GSI Technology assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a variety of risks and uncertainties, which could cause actual results to differ materially from those projected. These risks include those associated with the normal quarterly and fiscal year-end closing process. Examples of risks that could affect our current expectations regarding future revenues and gross margins include those associated with fluctuations in GSI Technology’s operating results; GSI Technology’s historical dependence on sales to a limited number of customers and fluctuations in the mix of customers and products in any period; global public health crises that reduce economic activity; the rapidly evolving markets for GSI Technology’s products and uncertainty regarding the development of these markets; the need to develop and introduce new products to offset the historical decline in the average unit selling price of GSI Technology’s products; the challenges of rapid growth followed by periods of contraction; intensive competition; the continued availability of government funding opportunities; delays or unanticipated costs that may be encountered in the development of new products based on our in-place associative computing technology and the establishment of new markets and customer and partner relationships for the sale of such products; and delays or unexpected challenges related to the establishment of customer relationships and orders for GSI Technology’s radiation-hardened and tolerant SRAM products. Many of these risks are currently amplified by and will continue to be amplified by, or in the future may be amplified by, economic and geopolitical conditions, such as changing interest rates, worldwide inflationary pressures, policy unpredictability, the imposition of tariffs and other trade barriers, military conflicts and declines in the global economic environment. Further information regarding these and other risks relating to GSI Technology’s business is contained in the Company’s filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings.

    Source: GSI Technology, Inc.

    Contacts:

    Investor Relations:

    Hayden IR
    Kim Rogers
    385-831-7337
    kim@haydenir.com

    Media Relations:

    Finn Partners for GSI Technology
    Ricca Silverio
    415-348-2724
    gsi@finnpartners.com

    Company:

    GSI Technology, Inc.
    Douglas M. Schirle
    Chief Financial Officer
    408-331-9802

           
    GSI TECHNOLOGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share data)
    (Unaudited)
                 
      Three Months Ended   Twelve Months Ended
      March 31, Dec. 31, March 31, March 31, March 31,
        2025     2024     2024       2025     2024  
                 
    Net revenues $ 5,883   $ 5,414   $ 5,152     $ 20,518   $ 21,765  
    Cost of goods sold   2,584     2,491     2,494       10,378     9,942  
                 
    Gross profit   3,299     2,923     2,658       10,140     11,823  
                 
    Operating expenses:            
                 
    Research & development   2,966     4,037     4,818       16,005     21,689  
    Selling, general and administrative   2,609     2,997     2,354       10,763     10,565  
    Gain from sale of assets   –     (56 )   –       (5,793 )   –  
    Total operating expenses   5,575     6,978     7,172       20,975     32,254  
                 
    Operating loss   (2,276 )   (4,055 )   (4,514 )     (10,835 )   (20,431 )
                 
    Interest and other income (expense), net   52     70     108       326     414  
                 
    Loss before income taxes   (2,224 )   (3,985 )   (4,406 )     (10,509 )   (20,017 )
    Provision (benefit) for income taxes   6     44     (85 )     130     70  
    Net loss $ (2,230 ) $ (4,029 ) $ (4,321 )   $ (10,639 ) $ (20,087 )
                 
                 
    Net loss per share, basic $ (0.09 ) ($ 0.16 ) $ (0.17 )   $ (0.42 ) $ (0.80 )
    Net loss per share, diluted $ (0.09 ) ($ 0.16 ) $ (0.17 )   $ (0.42 ) $ (0.80 )
                 
    Weighted-average shares used in            
    computing per share amounts:            
                 
    Basic   25,604     25,546     25,297       25,498     25,144  
    Diluted   25,604     25,546     25,297       25,498     25,144  
                 
                 
    Stock-based compensation included in the Condensed Consolidated Statements of Operations:
                 
      Three Months Ended   Twelve Months Ended
      March 31, Dec. 31, March 31,   March 31, March 31,
        2025     2024     2024       2025     2024  
                 
    Cost of goods sold $ 42   $ 50   $ 53     $ 199   $ 228  
    Research & development   263     121     331       1,010     1,411  
    Selling, general and administrative   207     258     309       1,053     1,199  
      $ 512   $ 429   $ 693     $ 2,262   $ 2,838  
                 
    GSI TECHNOLOGY, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands)
    (Unaudited)
             
        March 31, 2025 March 31, 2024
    Cash and cash equivalents   $ 13,434   $ 14,429
    Accounts receivable     3,169     3,118
    Inventory     3,891     4,977
    Other current assets     2,961     1,954
    Assets held for sale     0     5,629
    Net property and equipment     808     1,148
    Operating lease right-of-use assets     9,547     1,553
    Other assets     9,507     9,656
    Total assets   $ 43,317   $ 42,464
             
    Current liabilities   $ 7,074   $ 5,365
    Long-term liabilities     8,017     1,129
    Stockholders’ equity     28,226     35,970
    Total liabilities and stockholders’ equity   $ 43,317   $ 42,464

    The MIL Network –

  • MIL-OSI United Nations: Calls for Proposals: Strengthening Community Multi-Hazard Early Warning Systems in the Caribbean Region

    Source: UNISDR Disaster Risk Reduction

    UNDRR is the United Nations’ focal point for coordinating disaster risk reduction, working closely with countries and a wide range of partners and stakeholders to support the implementation, monitoring, and review of the Sendai Framework for Disaster Risk Reduction 2015-2030. This work is aligned with the 2030 Agenda and other relevant instruments, with the ultimate goal of achieving multi-hazard management of disaster risk in development and significantly reducing disaster risk and losses.

    In accordance with UN Financial Regulations and Rules, UNDRR provides grants to apolitical and non-profit-making organizations to facilitate, implement, or carry out activities that align with UNDRR’s and its partners’ mandates and work programs.

    To this end, UNDRR is pleased to invite non-profit-making organizations to submit grant proposals that focus on the following project: Strengthening Community Multi-Hazard Early Warning Systems in the Caribbean Region.

    Rationale

    As an implementing partner of the Climate Risk and Early Warning Systems (CREWS) Caribbean Initiative, the United Nations Office for Disaster Risk Reduction (UNDRR) recognizes the critical role that strategic partnerships play in enhancing multi-hazard early warning systems (MHEWS) across the Caribbean. The Caribbean’s unique vulnerabilities, including its geographic isolation and dependence on climate-sensitive sectors, make community-based multi-hazard early warning systems a critical component of long-term disaster resilience. Effective multi-hazard early warnings at the community level enable timely evacuations, safeguard livelihoods, and minimize disruptions to essential services, ultimately protecting development gains. A well-funded and coordinated approach to strengthening community MHEWS will ensure that warnings are not only issued but also understood and acted upon, closing the last-mile gap in disaster risk reduction.

    Strengthening community-based MHEWS is essential to enhancing disaster resilience in the Caribbean, where vulnerable populations are often the first to experience the impacts of hydro-meteorological hazards. Community MHEWS serve as the frontline of disaster preparedness, ensuring that multi-hazard early warnings are effectively communicated to those most at risk, including marginalized groups, persons with disabilities, and remote communities. By supporting a grant that prioritizes community engagement, capacity-building, and localized risk communication strategies, UNDRR and its regional partners can bridge the gap between national multi-hazard early warning mechanisms and community action. This alignment will foster a culture of preparedness where residents have the knowledge, tools, and networks necessary to respond proactively to disasters, reducing loss of life and property.

    Investing in community-driven MHEWS also strengthens the sustainability and effectiveness of broader these systems by integrating local and scientific knowledge. Traditional warning methods, such as the use of community leaders and cultural practices, can complement modern technologies, enhancing the accessibility and trustworthiness of alerts. Additionally, empowering local actors-such as community disaster committees, schools, and civil society organizations-to participate in the co-design of warning messages ensures that information is context-specific and actionable. By establishing this grant, resources can be allocated to expand risk awareness campaigns, improve response, and provide targeted training, all of which are vital to building a robust, inclusive, and people-centered multi-hazard early warning system.

    Purpose

    Establish a grant between UNDRR and an experienced (sub) regional partner to enhance existing community level disaster preparedness and response capacity including training on community vulnerability assessment.

    Outcome

    Strengthened MHEWS at the community levels within CDEMA Participating Sates through improved local level disaster risk knowledge, enhanced community disaster response team and improved local level MHEWS strategies.

    Outputs and suggested activities

    1. Improved and contextualized MHEWS guidelines for addressing vulnerabilities of specific groups in the Caribbean region.
    2. Strengthened sub-national coordination mechanisms for MHEWS through supporting the development and implementation of local strategies for disaster risk reduction.
    3. Enhanced MHEWS local coordination in the Caribbean through participatory approaches
    4. Improved understanding of community vulnerabilities and exposure.
    5. Improved community response capabilities.

    Suggested activities

    1. Output 1: Improved and contextualized MHEWS guidelines for addressing vulnerabilities of specific groups in the Caribbean region
      • Development of a regional workshop with Ministries in charge of addressing gender concerns and the needs of vulnerable groups and last-mile communities, including those with disabilities and Gender Bureaus, to discuss how MHEWS can be more inclusive, gender-responsive and transformative.
      • Development of guidelines, recommendations and commitments that will strengthen MHEWS in at least 3 countries that are inclusive, gender responsive and transformative.
    2. Output 2: Strengthened sub-national coordination mechanisms for MHEWS through supporting the development and implementation of local strategies for disaster risk reduction
      • Implementation of the MHEWS addendum of the resilience scorecard in 4 selected Caribbean local government in close coordination with UNDRR and the grantee.
      • At least four local governments have improved sub-national coordination for MHEWS through the developed local resilience plans with the implementation of the MCR2030 MHEWS Addendum and resilience scorecard
    3. Output 3: Enhanced MHEWS local coordination in the Caribbean through participatory approaches
      • Facilitate consultation between national, local stakeholders, civil society and community organizations to support the review and alignment of MHEWS strategies within the Caribbean region to improve national level coordination.
      • Develop reports on at least 4 local government areas on consultations aligning MHEWS with community resilience.
    4. Output 4: Improved understanding of community vulnerabilities and exposure
      • Facilitate regional training on Enhanced Vulnerability Capacity Assessment (eVCA) for Red Cross-National Societies and National Disaster Risk Management Offices for improved capacity for community engagement and assessment.
      • Improved risk knowledge with one regional baseline survey on knowledge and capacities of Red Cross-National Societies and National Disaster Risk Management Offices in the Caribbean.
      • Strengthened capacity of national stakeholders with one regional training on the Enhanced Vulnerability Capacity Assessment in a selected Caribbean territory with an eVCA and report.
      • A second eVCA conducted in a selected sub-national Caribbean territory with a report being developed.
    5. Output 5: Improved community response capabilities
      • Establishment, training and equipping of Community Disaster Response Teams (CDRTs) for prioritized hazards.
      • At least one in-person regional training on community early warning system.
      • Enhanced preparedness and response capacity in countries with at least four Community Disaster Response Teams established and equipped to respond to hazard impacts

    Resources

    Elements specific to the project that the grantee should know

    1. All International, (sub) regional and national non-governmental organizations that wish to be considered for partnership opportunities with UNDRR will need to register and create a profile on the United Nations Partner Portal (UNPP).
      1. Following verification of the profile information, partners will be eligible to apply to partnership opportunities with UNDRR as well as the UN Secretariat and all other participating UN Organizations.
      2. We encourage you to start the registration as soon as possible to avoid delays. Only registered organizations whose profile has been successfully verified will be considered eligible partners to apply for grant opportunities with UNDRR.
      3. For more details on registration procedures please visit the UN Section of UNPP (https://www.unpartnerportal.org/registration)
    2. Furthermore, the United Nations system requires all partners to be assessed regarding their capacity to prevent and respond to sexual exploitation and abuse. UNDRR encourages implementing partners to use the Protection from Sexual Exploitation and Abuse (PSEA) module in the UNPP. PSEA Module User Guide CSO Partner Members
    3. The grantee must have a proven track record in working with government authorities, both at the national and local levels with experience in risk data aggregation to improve early warning and impact-based forecasting [Mandatory].
      1. Applicant to confirm that it has expertise in disaster risk reduction and community resilience sector and to provide certificates or qualifications of persons implementing the grant.
      2. Applicant to confirm that it has a minimum 20 years’ experience in disaster risk reduction and community resilience sector, demonstrated with clear examples of at least 10 programmes/projects of similar scope.
      3. Applicant is expected to provide relevant information of their local expertise, including experience of working with regional and local key stakeholders, and established consultation and feedback mechanisms with local communities
    4. For all training, workshops, consultative meetings, etc., grantee must provide a summary outcome of the events, list of participants with disaggregate information including names, affiliation, gender, email address, city, and country of representation. All events must be accompanied by relevant reports with photos as proof of evidence. [Mandatory].

    Budget and administrative-related aspects

    The duration of the proposed project cannot exceed December 31st 2026. The maximum amount requested from UNDRR for the implementation of this project cannot exceed USD$315,000.00. The project proposal must not exceed 10 pages (attachments such as scanned copies of entity’s registration, CVs of staff etc. do not count).

    For this purpose, please fill in duly all the sections of the application form, include the required documents (scanned copy of NGO/IGO’s registration certificate, CVs of staff etc.) and budget excel sheets, and send the complete application package (application form, budget excel sheets, entity registration certificate, CVs of staff, etc.) to the following email address: [email protected] cc: [email protected] and [email protected]

    Reference: UNDRR CfP 2025/003Call for Proposals – Strengthening Community Multi-Hazard Early Warning Systems in the Caribbean Region

    Deadline for applications: May 9th 2025 midnight New York, USA EST (Eastern Standard Time). Incomplete and/or late applications will not be considered.

    Projects’ activities can include, amongst others, the following:

    • seminars, workshops, trainings;
    • capacity building activities;
    • institutional strengthening activities and
    • advocacy

    The following types of activity will not be covered:

    • capital expenditure, e.g. land, buildings, equipment and vehicles;
    • individual scholarships for studies or training courses;
    • supporting political parties; and
    • sub-contracting

    Due to the number of applications, only short-listed applicants will be notified.

    Please note that UNDRR may publish information about the grant agreement. Please note that the grant payment schedule will be determined with the selected grantee when finalizing the agreement. UNDRR standard practice is: not to exceed 40% of the requested amount upon signature of the grant agreement; remaining payments made based on a schedule of payments linked to production of project milestones and the final payment, 20%, will be paid after the end of the project, once final documents have been received, verified and approved by UNDRR.

    Refund of grants: UNDRR may request organizations to refund, either in part or in whole any amounts paid in respect of a grant when:

    • the project was not implemented in full or in part;
    • the grant was spent for ineligible expenditures other than those mentioned in the budget proposal submitted to, and approved by UNDRR;
    • no narrative, financial or audit report was submitted within the deadline established by the grant agreement;
    • a narrative report and/or a financial report submitted was determined to be unsatisfactory;
    • a negative evaluation of the project by UNDRR;
    • any other valid reason provided by the UNDRR.

    MIL OSI United Nations News –

  • MIL-OSI USA: El Paso, Texas, man pleads guilty to alien smuggling, money laundering conspiracies

    Source: US Immigration and Customs Enforcement

    ALBUQUERQUE, N.M. – An El Paso, Texas man who led a major human smuggling operation has plead guilty to federal charges of conspiring to transport and harbor illegal aliens and to launder the proceeds of the smuggling scheme, following an investigation by U.S. Immigration and Customs Enforcement.

    Homeland Security Investigations, U.S. Customs and Border Protection, U.S. Border Patrol and the U.S. Marshals Service investigated this case.

    According to court records, between July 7, 2022, and March 21, 2023, Jose Luis Avalos, 42, the leader of the organization and the final defendant to plead in the case, along with co-conspirators and his wife, Kristina Hardin, coordinated the illegal transportation and harboring of illegal aliens throughout New Mexico. In return, Avalos and Hardin received numerous money transfers into their bank accounts as proceeds from the smuggling operation and paid others for expenses related to the conspiracy.

    In addition, from Aug. 10, 2021, through Dec. 27, 2022, Avalos conspired with Hardin and others to launder the proceeds from the smuggling activities. They deposited illicit funds into multiple bank accounts and used the money for personal and mutual benefit, intentionally concealing the source and nature of these funds to avoid detection. In his plea agreement, Avalos admitted to knowingly participating in the conspiracy and working with others for their shared benefit.

    On May 18, 2023, Avalos was indicted along with eight co-conspirators, as part of a federal investigation into a large-scale illegal alien smuggling and money laundering operation. Subsequently, Hardin pleaded guilty to participating in the conspiracy to launder proceeds, while Avalos’ brother, David Avalos-Solis, pleaded guilty to conspiracy to transport and harbor illegal aliens. Twin brothers Dario Rey Gamboa and Diego Rean Gamboa, along with Justin Walker, Cindy Escobar, and Adam Guerrero, also pleaded guilty to participating in the conspiracy to transport and harbor illegal aliens. Nancy Orellana-Recinos pleaded guilty to aiding and abetting eluding examination or inspection.

    Orellana-Recinos was sentenced to time served and was provided a notice to appear for immigration proceedings. Hardin received two years of probation. Walker was sentenced to 21 months in prison. Diego Rean Gamboa, Dario Rey Gamboa, Cindy Escobar, and Adam Guerrero were each sentenced to time served.

    At sentencing, Avalos faces 20 years in prison followed by three years of supervised release.

    Assistant United States Attorney Randy M. Castellano is prosecuting the case as part of Joint Task Force Alpha. JTFA, a partnership with U.S. Department of Homeland Security, has been elevated and expanded with a mandate to target cartels and transnational criminal organizations to eliminate human smuggling and trafficking operating in Mexico, Guatemala, El Salvador, Honduras, Panama, and Colombia.

    JTFA comprises detailees from U.S. Attorney Offices along the Southwest border, including the Southern District of California, District of Arizona, District of New Mexico, and Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, and supported by the Money Laundering and Asset Recovery Section; Office of Enforcement Operations; and the Office of International Affairs, among others. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners. To date, JTFA’s work has resulted in more than 355 domestic and international arrests of leaders, organizers, and significant facilitators of alien smuggling; more than 320 U.S. convictions; more than 265 significant jail sentences imposed; and forfeitures of substantial assets.

    MIL OSI USA News –

  • MIL-OSI USA: California’s population increases — again

    Source: US State of California 2

    May 1, 2025

    What you need to know: For the second year in a row, California’s Department of Finance released data showing the Golden State’s population grew. In 2024, the state added more than 100,000 residents.

    SACRAMENTO — Today, Governor Gavin Newsom announced that California’s population grew by 108,000 people in calendar year 2024, reaching 39,529,000 people as of January 1st, 2025 — according to new data from the California Department of Finance.

    “People from across the nation and the globe are coming to the Golden State to pursue the California Dream, where rights are protected and people are respected. As the fourth largest economy in the world — from the Inland Empire to the Bay Area — regions throughout California are growing, strengthening local communities and boosting our state’s future. We’ll continue to cut tape, invest in people, and seek real results from government to ensure we build on this momentum – all of which are at risk with the extreme and uncertain tariffs.”

    Governor Gavin Newsom

    This increase marks the second consecutive calendar year of population growth. Additionally, this report reflects an upward revision of California’s January 2024 population, which saw a growth of 192,219 people (year over year) — up from the previously estimated increase of 67,104 people. And an upward revision of California’s January 2023 population, which saw a growth of 48,764 people (year over year) — up from the previously estimated decrease of 53,727 people.

    Factors for growth

    • Higher 2024 K-8 enrollment by 13,890 compared to 2023.

    • An increase in the 65-and-older population of 25,298 people in 2024, up from 6,622,031 people reported last year.

    • Natural increase — the net result of births minus deaths — contributed 114,805 to overall population growth in 2024, largely in line with the growth of 105,550 in 2023.

    • More data sources to better estimate California’s share of recent increases in legal immigration to the U.S. from 2021 to 2024, showing 277,468 more immigrants to the state during this period than in the 2023 estimate. This data only includes legal immigration.

    A look at city and county data

    The report contains preliminary year-over-year January 2025 and revised January 2021 through January 2024 population data for California cities, counties, and the state. It’s important to note that these estimates are based on information as of January 1, 2025, and therefore do not include data for the Los Angeles County wildfires later that month.

    • California’s 58 counties range in size from Alpine County, with just over 1,170 residents, to Los Angeles County with 9.9 million residents. The population increased in 35 counties, with most growth in the Central Valley, the Inland Empire, and coastal counties. Population gains reflect natural increase exceeding losses in net total migration.

    • The state’s ten largest counties remain Los Angeles, San Diego, Orange, Riverside, San Bernardino, Santa Clara, Alameda, Sacramento, Contra Costa, and Fresno, with each having more than one million residents. These ten counties represent 72 percent of California’s population. 

    • Nine of the ten counties with one million or more people have positive population growth, leaving Contra Costa as the only county with a very small population loss of 24 people. Los Angeles led with an increase of 28,000 persons. 

    • Population growth rates ranged from a high of 2.88 percent in Lassen County to a low of -1.58 percent in Mono County. The next five largest in percentage growth were Glenn (1.35 percent), Fresno (0.87 percent), Sutter (0.83 percent), Imperial (0.81 percent), and Tulare (0.73 percent).

    Recent Census Bureau revisions

    In addition to the report released by the Department of Finance, the U.S. Census Bureau (which measures on a fiscal calendar year versus DOF’s calendar year) released updated information showing California’s population increasing as well  — with several key revisions upwards:

    • July 1, 2023 to June 30, 2024, California’s population increased by more than 225,000 people.

    • July 1, 2022 to June 30, 2023: California’s population increased by more than 50,000 people. NOTE: This was revised up from the originally reported 75,000+ decrease.

    • July 1, 2021 to June 30, 2022: California’s population decreased by just 151 people. NOTE: This was revised up from the originally reported 100,000+ decrease.

    Busting myths

    Despite the common myth of a continually declining population, California has only saw a short period of population loss in its 174 year history — during the peak of the COVID pandemic, when it decreased by 379,544 people (which represents about 1% decrease over those two years), according to the U.S. Census Bureau.

    During the same period, from July 1, 2021 to June 30, 2022, 10 states saw larger population decreases, with Louisiana — led by a Republican Governor and legislature — seeing the largest percent decrease. And 13 states also saw population decreases from July 1, 2020 to June 30, 2021.

    California leads the way

    Building on the second year of population growth, California leads the way in tourism spending, and was just announced as the fourth largest economy, moving up from fifth, in the world by the International Monetary Fund. California is also home to the most Fortune 500 companies and most Inc. 5000 companies. And, California leads the way nationally as the #1 state for new business starts, access to venture capital funding, manufacturing, high-tech, and agriculture.

    Recent news

    May 1, 2025

    News What you need to know: House Republicans used an illegal tactic to attempt to overrule California’s clean cars and trucks program that has decreased smog and protected Californians’ health. SACRAMENTO — Governor Gavin Newsom issued the following statement today…

    Apr 30, 2025

    News Sacramento, California – Governor Gavin Newsom today issued a proclamation declaring April 30, 2025, as “Apprenticeship Day.”The text of the proclamation and a copy can be found below. PROCLAMATIONNational Apprenticeship Day is a nationwide celebration…

    Apr 30, 2025

    News What you need to know: The state of California is providing LA City and County a new AI-powered e-check software free of charge to speed the pace at which local governments are approving building permits. LOS ANGELES – Leveraging the power of private sector…

    MIL OSI USA News –

  • MIL-OSI Security: ICYMI: ICE Targets Major Human and Drug Smuggling Property In Oklahoma City

    Source: US Department of Homeland Security

    WASHINGTON – Today, the Department of Homeland Security set the record straight regarding an April 24, 2025, execution of court-authorized search warrant at a home owned by a human smuggling suspect in Oklahoma City. This lawful operation conducted by Immigration and Customs Enforcement (ICE), led by Homeland Security Investigations (HSI), targeted a property that is involved in a transitional human and drug smuggling organization which trafficked illegal aliens from Guatemala, Mexico, Colombia, Central South America and China around the interior of the United States.

    Statement Attributable to Senior DHS Official:

    “The April 24 Oklahoma ICE operation was a lawful, court-authorized action explicitly targeting a property, that was a hub for human smuggling, not specific individuals, as falsely suggested by media reports. 

    “The day prior to the search warrant issuance and the day of the search warrant, HSI agents conducted surveillance, and confirmed via utility records that a member of the Lima Lopez Transnational Criminal Organization was still paying utilities at the residence. The warrant, issued by a Federal Judge was based on an 84-page affidavit detailing probable cause that the address served as a “stash house” for human smuggling, authorizing the seizure of evidence such as electronic devices and documents, regardless of who was present. 

    “The warrant targeted the property itself, not specific individuals, and its execution was not contingent on the presence of any person. HSI, with Oklahoma state police support, executed the warrant with precision, seizing electronic devices as authorized. This court-authorized search was a critical strike against a dangerous human smuggling network in furtherance of our mission to protect American communities from the chaos unleashed by the Biden administration’s open-border policies.

    “This is an ongoing investigation, and we have not ruled out current occupants involvement in the smuggling ring.“

    ICYMI: Get the Facts: Oklahoma home raided by ICE is owned by human smuggling suspect The indictment obtained by KOCO 5 shows eight Guatemalan nationals were the targets of the investigation.

    KEY FACTS ABOUT THE OPERATION:

    FACT: As reported by KOCO 5, the indictment against, “shows eight Guatemalan nationals were the  targets of the investigation as part of the ‘Lima Lopez Transnational Criminal Organization.’ Their charges range from drugs, fraud, money laundering to re-entry after deportation.”

    FACT: The day prior to the search warrant issuance and the day of the search warrant, HSI agents conducted surveillance, and confirmed via utility records that known and confirmed gang members of the Lima Lopez Transnational Criminal Organization, were still paying utilities at the residence. 

    KOCO 5 reported that the owner of the home, Cidia Marleny Lima Lopez, “is allegedly a major player in the human smuggling case that agents have been working for years.”

    “Records show that she owns the home that was raided as well as another one in Oklahoma City,” KOCO added. “Eight arrests were made in that investigation, which was years in the making and not part of any new immigration enforcement.”

    FACT: The warrant, issued by a Federal Judge was based on an 84-page affidavit detailing probable cause that the address served as a “stash house” for human and drug smuggling, authorizing the seizure of evidence such as electronic devices and documents, regardless of who was present.

    FACT: The warrant targeted the property itself, not specific individuals, and its execution was not contingent on the presence of any person. HSI, with Oklahoma state police support, executed the warrant with precision, seizing electronic devices as authorized. 

    KOCO 5 reported that this investigation began “prior to any recent changes to ICE policies.”

    CONCLUSION: This court-authorized search was a critical strike against a dangerous human and drug smuggling network in furtherance of our mission to protect American communities from the chaos unleashed by the Biden administration’s open-border policies. 

    MIL Security OSI –

  • MIL-OSI Security: Couple Sentenced for Methamphetamine Distribution in Collinsville

    Source: Office of United States Attorneys

    TULSA, Okla. – Among several convictions, a Collinsville couple was sentenced today for distributing methamphetamine from their home, announced U.S. Attorney Clint Johnson.

    After a three-day trial in August 2024, a jury found Lee Holt, 60, guilty of being a Felon in Possession of a Firearm, Possession of Methamphetamine with Intent to Distribute, Maintaining a Drug-Involved Premises, and Possession of a Firearm in Furtherance of Drug Trafficking Crimes. Prior to trial, Holt’s co-defendant, Jennifer Charisa Harrington, 49, pled guilty to Possession of Methamphetamine with Intent to Distribute and Maintaining a Drug Involved Premises.

    U.S. District Judge John F. Heil, III, ordered Holt to serve 180 months imprisonment, followed by eight years of supervised release. Further, Judge Heil ordered Harrington to serve 63 months imprisonment, followed by four years of supervised release.

    In August 2023, law enforcement served a search warrant on Holt and Harrington’s home in Collinsville. Upon search of the home, agents found a firearm and ammunition, 110 grams of methamphetamine, marijuana, scales, and $4,370 in drug proceeds. Laboratory testing determined the methamphetamine was 94% pure. During the trial, experts testified that 110 grams of methamphetamine could be more than 500 doses of meth with a street value of approximately $1,500.

    Court records show that Holt was previously convicted of several felonies over the last 40-years, including burglary, illegal sale of a machinegun, conspiracy to manufacture and distribute methamphetamine, possessing methamphetamine with intent to distribute, and unlawfully possessing a firearm after being convicted of a felony.   

    In Harrington’s plea agreement, she admitted to living with Holt and that they would distribute and use methamphetamine in their home. Harrington further admitted that they had the firearm, ammunition, scales, and cash from distributing methamphetamine.

    Homeland Security Investigations, the Oklahoma Bureau of Narcotics, the Collinsville Police Department, and the Cherokee Nation Marshal Service investigated the case. Assistant U.S. Attorney Mike Flesher prosecuted the case.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

    MIL Security OSI –

  • MIL-OSI Economics: Steering Committee of Partenariat pour le Coton addresses priorities for cotton sector

    Source: WTO

    Headline: Steering Committee of Partenariat pour le Coton addresses priorities for cotton sector

    Participants focused on translating identified needs into actionable investment opportunities and presented findings from national and regional consultations. They also validated the terms of reference of the Partenariat, including its membership framework, geographical scope and core functions.
    In his opening remarks, WTO Deputy Director-General Jean-Marie Paugam emphasized the importance of strengthening the cotton–textile–garment value chains in the C-4+ countries through increased value addition, expanded trade opportunities and sustainable development outcomes. He noted that the objective of the meeting was threefold: to present the national and regional reports emerging from the consultations; to highlight national priorities and investment needs; and to explore the technical assistance and financing options proposed by financial institutions in response to these findings. His full remarks (in French) are here.
    Ms Kanayo Awani, Afreximbank’s Executive Vice President for Intra-African and Export Development, underscored the need to address issues relating to low yields and processing capacity, climate change, climate variability, market fluctuations, global cotton prices, and limited infrastructure and technology, which hinder productivity and efficiency. To be able to upgrade and integrate into the global cotton value chain, the C-4+ countries need these issues to be tackled, she said.
    Over the two-day gathering, the Steering Committee engaged in thematic sessions on sustainable practices in cotton production and on financing mechanisms for value chain development aligned with the outcomes of the national consultations. A high-level panel explored strategies to unlock investment for cotton industrialization and local transformation in the C-4+ region.
    The meeting concluded with forward-looking discussions on supporting C-4+ priorities, including the establishment of a dedicated C-4+ Partenariat Support Fund to facilitate participation in capacity-building activities and key international meetings. Participants also discussed preparations for the upcoming World Cotton Day, to be hosted in October 2025 by Chad in collaboration with the International Trade Centre (ITC).
    Attendees included representatives from the WTO, United Nations Industrial Development Organization (UNIDO),the  International Labour Organization (ILO), Better Cotton (BC), the African Development Bank (AfDB), FIFA, the International Atomic Energy Agency (IAEA) and the International Cotton Advisory Committee (ICAC). Also present were representatives of the International Finance Corporation (IFC), the International Trade Centre (ITC), the United Nations Office on Drugs and Crime (UNODC), and development partners such as China and the European Union, as well as representatives of the C-4+ countries.
    The next opportunity to carry forward these discussions will be the Director-General’s Consultative Framework Mechanism on Cotton meeting scheduled for 14 May in Geneva.

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    MIL OSI Economics –

  • MIL-OSI USA: FEMA Alert: Watch for Fraud After April Storms in Kentucky

    Source: US Federal Emergency Management Agency

    Headline: FEMA Alert: Watch for Fraud After April Storms in Kentucky

    FEMA Alert: Watch for Fraud After April Storms in Kentucky

    FRANKFORT, Ky

     – If you are a survivor of Kentucky April storms, straight-line winds, tornadoes, floods, landslides and mudslides, you may also be a target of con artists and criminals who try to obtain money or steal personal information

    Protect Your IdentityIn some cases, thieves try to apply for FEMA assistance using names, addresses and Social Security numbers they have stolen from survivors

    If a FEMA inspector comes to your home and you did not submit a FEMA application, your information may have been used without your knowledge to create a FEMA application

    If so, please inform the inspector that you did not apply for FEMA assistance, so the inspector can submit a request to stop further processing of the application

    If you did not apply for assistance, but received a letter from FEMA, please call the FEMA Helpline at 800-621-3362

    The Helpline will submit a request to stop any further processing of that application

    If you do wish to apply for FEMA assistance after stopping an application made in your name without your knowledge, the Helpline will assist you in creating a new application

    Identify Legitimate FEMA StaffFEMA Disaster Survivor Assistance teams, housing inspectors and other officials are working in areas impacted by the April severe storms throughout Kentucky

    They carry official identification badges with photo

    FEMA representatives never charge applicants for disaster assistance, inspections or help in filling out applications

     Don’t believe anyone who promises a disaster grant in return for payment

    Don’t give your banking information to a person claiming to be a FEMA housing inspector

    FEMA inspectors never collect your personal financial information

     Report Scams and FraudIf you believe you are the victim of a scam report it immediately to your local police or sheriff’s department, or contact the Office of the Attorney General by calling 502-696-5485 or visit its website at Natural Disaster Scams – Kentucky Attorney General

    To file a fraud complaint, go online to Scam Report (kentucky

    gov)

    If you suspect fraudulent activity involving FEMA, you can report it to the FEMA Fraud Branch at:  StopFEMAFraud@fema

    dhs

    gov, or write to: FEMA Fraud and Internal Investigation Division, 400 C Street SW Mail Stop 3005, Washington, DC 20472-3005

    If you suspect identity theft, please visit Identity Theft | FTC Consumer Information or IdentityTheft

    gov

     How To Apply for FEMA AssistanceSurvivors in the Anderson, Butler, Carroll, Christian, Clark, Franklin, Hardin, Hopkins, Jessamine, McCracken, Mercer, Owen and Woodford counties who have disaster-caused damage or loss from the April storm can apply for federal disaster assistance under the major disaster declaration DR-4864 in several ways:Online at DisasterAssistance

    gov

    Visit any Disaster Recovery Center

    To find a center close to you, visit fema

    gov/DRC, or text DRC along with your Zip Code to 43362 (Example: “DRC 29169”)

    Use the FEMA mobile app

    FEMA works with every household on a case-by-case basis

    Call the FEMA Helpline at 800-621-3362

    It is open 7 a

    m

    to 10 p

    m

    Eastern Daylight Time

    Help is available in many languages

    If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA your number for that service

     For more information about Kentucky flooding recovery, visit www

    fema

    gov/disaster/4860 and www

    fema

    gov/disaster/4864

    Follow the FEMA Region 4 X account at x

    com/femaregion4

    martyce

    allenjr
    Thu, 05/01/2025 – 16:27

    MIL OSI USA News –

  • MIL-OSI Security: Sapulpa Woman Sentenced for Second Degree Murder

    Source: Office of United States Attorneys

    TULSA, Okla. – A Sapulpa woman was sentenced today for Second Degree Murder in Indian Country, announced U.S. Attorney Clint Johnson.

    U.S. District Judge John D. Russell sentenced Christin Brianna Kelley, 35, to 240 months imprisonment, followed by five years of supervised release.

    Shortly after 4:00 a.m. on the morning of January 9th, 2024, Kelley and the victim, Isaac Smith, were sitting in a car in the parking lot of a gas station in Sand Springs. Kelley shot Isaac Smith several times, killing him. Law enforcement recovered the loaded pistol Kelley used in a trash can near the car.

    Kelley is a citizen of the Muscogee (Creek) Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons.

    The FBI, the Sand Springs Police Department, and the Oklahoma State Bureau of Investigations investigated the case, and Assistant U.S. Attorneys Eric Johnston and Stephen Flynn prosecuted the case.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

    MIL Security OSI –

  • MIL-OSI Security: Turkish Citizen Pleads Guilty and is Sentenced for Illegal Reentry After Prior Removal for Aggravated Felony Conviction

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – A citizen of Turkey pleaded guilty in federal court to a charge of illegal reentry of a removed alien and was sentenced to 60 days of imprisonment and removal from the United States on his conviction, Acting United States Attorney Troy Rivetti announced today.

    United States District Judge Robert J. Colville imposed the sentence on Izzet Kurt, 60.

    According to information presented to the Court, Kurt was previously convicted of conspiracy to smuggle aliens, an aggravated felony, in the Eastern District of Pennsylvania and was subsequently removed from the United States on March 15, 2018, pursuant to an immigration judge’s order. In 2022, Kurt paid $12,000 to be smuggled back into the United States across the Mexican border. Approximately three years later, Homeland Security Investigations (HSI) received a tip that Kurt had returned to the United States and was living in Coraopolis, Pennsylvania. A records check revealed that Kurt did not have permission or consent to reenter the United States. Through its investigation, HSI developed information corroborating the tip and, on February 25, 2025, while conducting surveillance, an HSI agent positively identified Kurt as a passenger in a vehicle within the Western District of Pennsylvania. Kurt has been in custody since his arrest and will be returned to immigration custody for his removal from the U.S., to which Kurt agreed as part of his plea and sentence.

    Assistant United States Attorney V. Joseph Sonson prosecuted this case on behalf of the government.

    Acting United States Attorney Rivetti commended Homeland Security Investigations for the investigation leading to the successful prosecution of Kurt.

    This case was investigated and prosecuted by the Pennsylvania Homeland Security Task Force (HSTF) as part of Operation Take Back America. HSTFs, which were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion, are joint operations led by the Department of Justice and the Department of Homeland Security. Operation Take Back America is a nationwide federal initiative that marshals the full resources of the Department of Justice to achieve the total elimination of cartels and transnational criminal organizations, combat illegal immigration, and protect our communities from the perpetrators of violent crime.

    MIL Security OSI –