Finance – Page 438 – NewzIntel.com

MIL-OSI: FinWise Bancorp Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

– Loan Originations of $1.3 Billion –

– Net Income of $3.2 Million –

– Diluted Earnings Per Share of $0.23 –

MURRAY, Utah, April 30, 2025 (GLOBE NEWSWIRE) — FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter ended March 31, 2025.

First Quarter 2025 Highlights

Loan originations totaled $1.3 billion, compared to $1.3 billion for the quarter ended December 31, 2024, and $1.1 billion for the first quarter of the prior year
Net interest income was $14.3 million, compared to $15.5 million for the quarter ended December 31, 2024, and $14.0 million for the first quarter of the prior year
Net income was $3.2 million, compared to $2.8 million for the quarter ended December 31, 2024, and $3.3 million for the first quarter of the prior year
Diluted earnings per share (“EPS”) were $0.23 for the quarter, compared to $0.20 for the quarter ended December 31, 2024, and $0.25 for the first quarter of the prior year
Efficiency ratio¹ was 64.8%, compared to 64.2% for the quarter ended December 31, 2024, and 61.0% for the first quarter of the prior year
Nonperforming loan balances were $29.9 million as of March 31, 2025, compared to $36.5 million as of December 31, 2024, and $26.0 million as of March 31, 2024. Nonperforming loan balances guaranteed by the Small Business Administration (“SBA”) were $15.1 million, $19.2 million, and $14.8 million as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively

“Our business model remained resilient in the first quarter, even amidst a more uncertain macro environment,” said Kent Landvatter, Chairman and CEO of FinWise. “We posted solid loan originations and encouraging credit quality metrics, as both non-performing loan balances and net charge-offs declined sequentially. Furthermore, we continued to migrate our loan portfolio to a lower risk profile while still growing profitably and increasing tangible book value. Subsequent to the end of the first quarter, we also announced a new strategic program agreement where FinWise will provide both lending and our Credit Enhanced Balance Sheet product. While we will continue to closely monitor the economic environment, we remain excited about the outlook for our business and will maintain our focus on executing our business strategy to continue to position the Company for long-term growth and shareholder value creation.”

________________
_{¹ See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this non-GAAP measure.}

Selected Financial and Other Data

	As of and for the Three Months Ended
($ in thousands, except per share amounts)	3/31/2025			12/31/2024			3/31/2024
Amount of loans originated	$	1,264,604		$	1,305,028		$	1,091,479
Net income	$	3,189		$	2,793		$	3,315
Diluted EPS	$	0.23		$	0.20		$	0.25
Return on average assets		1.7	%		1.6	%		2.2	%
Return on average equity		7.4	%		6.5	%		8.4	%
Yield on loans		12.31	%		14.01	%		14.80	%
Cost of interest-bearing deposits		4.01	%		4.30	%		4.71	%
Net interest margin		8.27	%		10.00	%		10.12	%
Efficiency ratio⁽¹⁾		64.8	%		64.2	%		61.0	%
Tangible book value per share⁽²⁾	$	13.42		$	13.15		$	12.70
Tangible shareholders’ equity to tangible assets⁽²⁾		22.0	%		23.3	%		26.6	%
Leverage ratio (Bank under CBLR)		18.8	%		20.6	%		20.6	%
Full-time equivalent employees		196			196			175

^{(1) This measure is not a measure recognized under United States generally accepted accounting principles, or GAAP, and is therefore considered to be a non-GAAP financial measure. See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. The efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and non-interest income. The Company believes this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar spent.}
^{(2) Tangible shareholders’ equity to tangible assets is considered a non-GAAP financial measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholder’s equity to total assets. The Company had no goodwill or other intangible assets at the end of any period indicated. The Company has not considered loan servicing rights or loan trailing fee assets as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity at the end of each of the periods indicated.}

Net Interest Income
Net interest income was $14.3 million for the first quarter of 2025, compared to $15.5 million for the prior quarter and $14.0 million for the prior year period. The decrease from the prior quarter was primarily due to a decrease in yields and a seasonal decline in origination volume on the three highest yielding programs in the held-for-sale portfolio of $0.5 million, a decrease in yield offset in part by an increase in volume on the remaining held-for-sale portfolio of $0.3 million, and a decrease in yields offset in part by the increase in volume of the held-for-investment portfolio as variable rate loans were repriced to reflect the decrease in the prime rate of $0.5 million. The increase from the prior year period was primarily due to an increase in average interest-earning assets of $143.7 million, partially offset by lower yields on interest-earning assets and an increase in the average interest-bearing liabilities of $119.6 million.

Loan originations totaled $1.3 billion for the first quarter of 2025, compared to $1.3 billion for the prior quarter and $1.1 billion for the prior year period.

Net interest margin for the first quarter of 2025 was 8.27%, compared to 10.00% for the prior quarter and 10.12% for the prior year period. The decrease in net interest margin from the prior quarter and prior year period is attributable to the seasonal decline in originations of the three highest yielding held-for-sale programs, the repricing of our variable rate loan portfolio as interest rates have declined, and the Company’s strategy to reduce the average credit risk in the loan portfolio by increasing its investment in higher quality but lower yielding loans offset by a reduction in the costs of funds.

Provision for Credit Losses
The Company’s provision for credit losses was $3.3 million for the first quarter of 2025, compared to $3.9 million for the prior quarter and $3.2 million for the prior year period. The decrease in the provision for credit losses from the prior quarter was mainly due to lower net charge-offs of $1.0 million predominately in the non-SP loan portfolio offset in part by increased reserves for the held-for-investment loan portfolio growth, net of changes in modeling assumptions of $0.5 million. The increase in the provision for credit losses from the prior year period was primarily due to growth in the loans held-for-investment portfolio.

Non-interest Income

	Three Months Ended
($ in thousands)	3/31/2025		12/31/2024			3/31/2024
Non-interest income
Strategic Program fees	$	4,962	$	4,899		$	3,965
Gain on sale of loans		846		872			415
SBA loan servicing fees, net		178		181			664
Change in fair value on investment in BFG		400		(200	)		(124	)
Credit enhancement income		85		25			—
Other miscellaneous income		1,339		(174	)		742
Total non-interest income	$	7,810	$	5,603		$	5,662

The increase in non-interest income from the prior quarter was due to an increase in other miscellaneous income resulting from a charge in the prior quarter of $0.9 million to remove unamortized premiums upon calling $160.0 million of callable certificates of deposits, growth in the Company’s operating lease portfolio, and an increased distribution received from BFG during the quarter. The Company also benefited from a favorable change in the fair value of our investment in BFG.

The increase in non-interest income from the prior year period was primarily due to an increase in Strategic Program fees primarily due to higher originations, a favorable change in the fair value of our investment in BFG, and an increase in other miscellaneous income. The increase in other miscellaneous income from the prior year period was the result of increased revenue from growth in the Company’s operating lease portfolio and increased distributions received from BFG.

Non-interest Expense

	Three Months Ended
($ in thousands)	3/31/2025		12/31/2024		3/31/2024
Non-interest expense
Salaries and employee benefits	$	9,826	$	9,375	$	7,562
Professional services		907		556		1,567
Occupancy and equipment expenses		543		533		544
Credit enhancement expense		11		5		—
Other operating expenses		3,031		3,094		2,332
Total non-interest expense	$	14,318	$	13,563	$	12,005

The increase in non-interest expense from the prior quarter resulted from increases in salaries and employee benefits and professional services. The salaries and employee benefits increase pertained mainly to an increase in federal employer payroll taxes of $0.4 million while the increase in professional services resulted from the reversal of over-accruals during the fourth quarter of 2024. The increase in non-interest expense from the prior year period was primarily due to an increase in salaries and employee benefits due mainly to increasing headcount and stock based compensation expense and other operating expenses driven by increased spending to support the growth in the Company’s business infrastructure.

Reflecting the decreased net interest income and increase in operating expenses, the Company’s efficiency ratio was 64.8% for the first quarter of 2025, compared to 64.2% for the prior quarter and 61.0% for the prior year period. The Company anticipates the efficiency ratio will level off then begin to decline as revenues are realized in future periods from the credit enhanced loan, BIN sponsorship and payments initiatives developed during 2023 and 2024.

Tax Rate
The Company’s effective tax rate was 28.1% for the first quarter of 2025, compared to 24.3% for the prior quarter and 26.5% for the prior year period. The increases from the prior quarter and prior year period were due primarily to estimated permanent differences related to officer compensation.

Net Income
Net income was $3.2 million for the first quarter of 2025, compared to $2.8 million for the prior quarter and $3.3 million for the prior year period. The changes in net income for the three months ended March 31, 2025 compared to the prior quarter and prior year period are the result of the factors discussed above.

Balance Sheet
The Company’s total assets were $804.1 million as of March 31, 2025, an increase from $746.0 million as of December 31, 2024 and $610.8 million as of March 31, 2024. The increase in total assets from December 31, 2024 was primarily due to continued growth in the Company’s loans held-for-investment, net, and loans held-for-sale portfolios of $24.6 million and $27.2 million, respectively, as well as an increase of $12.6 million in interest-bearing cash deposits. The increase in total assets compared to March 31, 2024 was primarily due to increases in the Company’s loans held-for-investment, net, and loans held-for-sale portfolios of $95.3 million and $63.8 million, respectively, as well as an increase in investment securities available-for-sale of $30.1 million. The increased loan balances are consistent with our strategy to grow the loan portfolio with higher quality lower risk assets.

The following table shows the gross loans held-for-investment (“HFI”) balances as of the dates indicated:

	3/31/2025				12/31/2024				3/31/2024
($ in thousands)	Amount		% of total loans		Amount		% of total loans		Amount		% of total loans
SBA	$	246,004	50.0	%	$	255,056	54.8	%	$	247,810	63.4	%
Commercial leases		76,823	15.6	%		70,153	15.1	%		46,690	11.9	%
Commercial, non-real estate		3,550	0.7	%		3,691	0.8	%		2,077	0.5	%
Residential real estate		55,814	11.3	%		51,574	11.1	%		39,006	10.0	%
Strategic Program loans		19,916	4.1	%		20,122	4.3	%		17,216	4.4	%
Commercial real estate:
Owner occupied		65,920	13.4	%		41,046	8.8	%		21,300	5.4	%
Non-owner occupied		1,390	0.3	%		1,379	0.3	%		2,155	0.6	%
Consumer		22,806	4.6	%		22,212	4.8	%		14,689	3.8	%
Total period end loans	$	492,223	100.0	%	$	465,233	100.0	%	$	390,943	100.0	%

^{Note: SBA loans as of March 31, 2025, December 31, 2024 and March 31, 2024 include $150.0 million, $158.7 million and $141.7 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA. The HFI balance on Strategic Program loans with annual interest rates below 36% as of March 31, 2025, December 31, 2024 and March 31, 2024 was $3.8 million, $3.1 million and $2.7 million, respectively.}

Total gross loans HFI as of March 31, 2025 increased $27.0 million and $101.3 million compared to December 31, 2024 and March 31, 2024, respectively. The Company experienced growth primarily in its commercial real estate – owner occupied, commercial leases, and residential real estate loan portfolios, consistent with its strategy to increase its loan portfolio with higher quality, lower rate loans.

The following table shows the Company’s deposit composition as of the dates indicated:

	As of
	3/31/2025				12/31/2024				3/31/2024
($ in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Noninterest-bearing demand deposits	$	123,322	20.4	%	$	126,782	23.3	%	$	107,076	25.3	%
Interest-bearing deposits:
Demand		83,410	13.8	%		71,403	13.1	%		48,279	11.4	%
Savings		8,888	1.5	%		9,287	1.7	%		11,206	2.6	%
Money market		17,939	2.9	%		16,709	3.0	%		9,935	2.3	%
Time certificates of deposit		372,200	61.4	%		320,771	58.9	%		247,600	58.4	%
Total period end deposits	$	605,759	100.0	%	$	544,952	100.0	%	$	424,096	100.0	%

The increase in total deposits at March 31, 2025 from December 31, 2024 and March 31, 2024 was driven primarily by increases in brokered time certificates of deposits, which were added to fund loan growth and increase balance sheet liquidity. The increase in total deposits from March 31, 2024 was also driven primarily by an increase in noninterest-bearing demand deposits and interest-bearing demand deposits, primarily due to growth from new and existing customer relationships.

Total shareholders’ equity as of March 31, 2025 increased $3.6 million to $177.4 million from $173.7 million at December 31, 2024. Compared to March 31, 2024, total shareholders’ equity increased by $14.9 million from $162.5 million. The increase from December 31, 2024 was primarily due to the Company’s net income and stock-based compensation. The increase from March 31, 2024 was primarily due to the Company’s net income as well as the additional capital issued in exchange for the Company’s increased ownership in BFG and stock-based compensation partially offset by the repurchase of common stock under the Company’s share repurchase program.

Bank Regulatory Capital Ratios
The following table presents the leverage ratios for the Bank as of the dates indicated as determined under the Community Bank Leverage Ratio Framework of the Federal Deposit Insurance Corporation:

	As of
Capital Ratios	3/31/2025	12/31/2024	3/31/2024	Well-Capitalized Requirement
Leverage ratio	18.8%	20.6%	20.6%	9.0%

The decrease in the leverage ratio from the prior quarter and the prior year period primarily results from the growth in the loan portfolio exceeding the relative growth in capital from earnings. The Bank’s capital levels remain significantly above the regulatory well-capitalized guidelines as of March 31, 2025.

Share Repurchase Program
Since the share repurchase program’s inception in March 2024, the Company has repurchased and subsequently retired a total of 44,608 shares for $0.5 million. There were no shares repurchased during the first quarter of 2025.

Asset Quality
The recorded balances of nonperforming loans were $29.9 million, or 6.1% of total loans held-for-investment, as of March 31, 2025, compared to $36.5 million, or 7.8% of total loans held-for-investment, as of December 31, 2024 and $26.0 million, or 6.6% of total loans held-for-investment, as of March 31, 2024. The balances of nonperforming loans guaranteed by the SBA were $15.1 million, $19.2 million, and $14.8 million as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The decrease in nonperforming loans from the prior quarter was primarily attributable to an increase in principal repayments and payoffs. The increase in nonperforming loans from the prior year period was primarily attributable to loans in the SBA 7(a) loan portfolio being classified as non-accrual mainly due to the negative impact of elevated interest rates on the Company’s small business borrowers. The Company’s allowance for credit losses to total loans held-for-investment was 2.9% as of March 31, 2025 compared to 2.8% as of December 31, 2024 and 3.2% as of March 31, 2024. The slight increase in the ratio from the prior quarter was primarily due to growth in the allowance for credit losses attributable to the retained Strategic Program loans while the actual retained Strategic Program loan balances decreased from the prior quarter. The decrease in the ratio from the prior year period was primarily due to the respective balances of the guaranteed portion of the SBA 7(a) program loans, growth in the balances of lower risk owner-occupied CRE, leasing and other held-for-investment loan portfolios, and the shift in our Strategic Program held-for-investment loan balances to programs with lower historical losses.

The Company’s net charge-offs were $2.2 million, $3.2 million and $3.4 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The decrease from the prior quarter is primarily due to prior quarter charge-offs of the unguaranteed portion of SBA loans as well as decreased net charge-offs in the Strategic Program loans portfolio. The decrease from the prior year period is primarily due to a decrease in charge-offs in the Strategic Program loans portfolio as well as increased recoveries during the first quarter of 2025.

The following table presents a summary of changes in the allowance for credit losses and credit quality data for the periods indicated:

	Three Months Ended
($ in thousands)	3/31/2025			12/31/2024			3/31/2024
Allowance for credit losses:
Beginning balance	$	13,176		$	12,661		$	12,888
Provision for credit losses⁽¹⁾		3,307			3,766			3,145
Charge offs
Construction and land development		—			—			—
Residential real estate		(7	)		(206	)		(64	)
Residential real estate multifamily		—			—			—
Commercial real estate:
Owner occupied		(68	)		(411	)		(525	)
Non-owner occupied		—			—			—
Commercial and industrial		(83	)		(555	)		(54	)
Consumer		(11	)		(60	)		(41	)
Lease financing receivables		(36	)		—			(111	)
Strategic Program loans		(2,384	)		(2,528	)		(2,946	)
Recoveries
Construction and land development		—			—			—
Residential real estate		3			6			53
Residential real estate multifamily		—			—			—
Commercial real estate:
Owner occupied		16			112			3
Non-owner occupied		—			—			—
Commercial and industrial		14			—			—
Consumer		3			1			—
Lease financing receivables		(33	)		77			—
Strategic Program loans		338			313			284
Ending Balance	$	14,235		$	13,176		$	12,632

*Credit Quality Data*	As of and For the Three Months Ended
($ in thousands)	3/31/2025			12/31/2024			3/31/2024
Nonperforming loans:
Guaranteed	$	15,147		$	19,203		$	14,765
Unguaranteed		14,737			17,281			11,231
Total nonperforming loans	$	29,884		$	36,484		$	25,996
Allowance for credit losses	$	14,235		$	13,176		$	12,632
Net charge offs	$	2,248		$	3,249		$	3,401
Total loans held-for-investment	$	492,223		$	465,233		$	390,943
Total loans held-for-investment less guaranteed balances	$	342,259		$	306,483		$	249,229
Average loans held-for-investment	$	485,780		$	454,474		$	387,300
Nonperforming loans to total loans held-for-investment		6.1	%		7.8	%		6.6	%
Net charge offs to average loans held-for-investment (annualized)		1.9	%		2.8	%		3.5	%
Allowance for credit losses to loans held-for-investment		2.9	%		2.8	%		3.2	%
Allowance for credit losses to loans held-for-investment less guaranteed balances		4.2	%		4.3	%		5.1	%

^{(1) Excludes the provision for unfunded commitments.}

Webcast and Conference Call Information
FinWise will host a conference call today at 5:30 PM ET to discuss its financial results for the first quarter. A simultaneous audio webcast of the conference call will be available at https://investors.finwisebancorp.com/.

The dial-in number for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). The conference ID is 13752183. Please dial the number 10 minutes prior to the scheduled start time.

A webcast replay of the call will be available at investors.finwisebancorp.com for six months following the call.

Website Information
The Company intends to use its website, www.finwisebancorp.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included in the Company’s website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of the Company’s website, in addition to following its press releases, filings with the Securities and Exchange Commission (“SEC”), public conference calls, and webcasts. To subscribe to the Company’s e-mail alert service, please click the “Email Alerts” link in the Investor Relations section of its website and submit your email address. The information contained in, or that may be accessed through, the Company’s website is not incorporated by reference into or a part of this document or any other report or document it files with or furnishes to the SEC, and any references to the Company’s website are intended to be inactive textual references only.

About FinWise Bancorp
FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah which wholly owns FinWise Bank, a Utah chartered state bank, and FinWise Investment LLC (together “FinWise”). FinWise provides Banking and Payment Solutions to fintech brands. The Company is expanding and diversifying its business model by incorporating Payments (MoneyRailsTM) and BIN Sponsorship offerings. Its existing Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. In addition, FinWise manages other Lending programs such as SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, which provide flexibility for disciplined balance sheet growth. Through its compliance oversight and risk management-first culture, the Company is well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance. For more information about FinWise visit https://investors.finwisebancorp.com.

Contacts
investors@finwisebank.com
media@finwisebank.com

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, future events and its financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “budget,” “goal,” “target,” “would,” “aim” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s industry and management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates and projections will be achieved. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: (a) the success of the financial technology and banking-as-a-service (“BaaS”) industries, as well as the continued evolution of the regulation of these industries; (b) the ability of the Company’s Fintech Banking and Payment Solutions service providers to comply with regulatory regimes, and the Company’s ability to adequately oversee and monitor its Fintech Banking and Payment Solutions service providers; (c) the Company’s ability to maintain and grow its relationships with its service providers; (d) changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, tariffs, monetary and fiscal matters, including the application of interest rate caps or maximums; (e) the Company’s ability to keep pace with rapid technological changes in the industry or implement new technology effectively; (f) system failure or cybersecurity breaches of the Company’s network security; (g) potential exposure to fraud, negligence, computer theft and cyber-crime and other disruptions in the Company’s computer systems relating to its development and use of new technology platforms; (h) the Company’s reliance on third-party service providers for core systems support, informational website hosting, internet services, online account opening and other processing services; (i) general economic, political and business conditions, either nationally or in the Company’s market areas; (j) increased national or regional competition in the financial services industry; (k) the Company’s ability to measure and manage its credit risk effectively and the potential deterioration of the business and economic conditions in the Company’s primary market areas; (l) the adequacy of the Company’s risk management framework; (m) the adequacy of the Company’s allowance for credit losses (“ACL”); (n) the financial soundness of other financial institutions; (o) changes in Small Business Administration (“SBA”) rules, regulations and loan products, including specifically the Section 7(a) program or changes to the status of the Bank as an SBA Preferred Lender; (p) changes in the existing regulatory framework for brokered deposits and potential reclassification of certain BaaS deposits as brokered deposits in light of proposed rulemaking or application of the current deposit framework by the Federal Deposit Insurance Corporation (“FDIC”) to the Bank’s BaaS deposits; (q) the value of collateral securing the Company’s loans; (r) the Company’s levels of nonperforming assets; (s) losses from loan defaults; (t) the Company’s ability to protect its intellectual property and the risks it faces with respect to claims and litigation initiated against the Company; (u) the Company’s ability to implement its growth strategy; (v) the Company’s ability to continue to launch new products or services successfully; (w) the concentration of the Company’s lending and depositor relationships through Strategic Programs in the financial technology industry generally; (x) interest rate, volatility and liquidity risks; (y) the effectiveness of the Company’s internal control over financial reporting and its ability to remediate any future material weakness in its internal control over financial reporting; (z) dependence on the Company’s management team and changes in management composition; (aa) the sufficiency of the Company’s capital; (bb) compliance with laws and regulations, supervisory actions, the Dodd-Frank Act, capital requirements, the Bank Secrecy Act and other anti-money laundering laws, predatory lending laws, and other statutes and regulations; (cc) the Company’s ability to maintain a strong core deposit base or other low-cost funding sources; (dd) results of examinations of the Company by its regulators; (ee) the Company’s involvement from time to time in legal proceedings; (ff) natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, and other matters beyond the Company’s control; (gg) future equity and debt issuances; (hh) that the anticipated benefits of new lines of business that the Company may enter or investments or acquisitions the Company may make are not realized within the expected time frame or at all as a result of such things as the strength or weakness of the economy and competitive factors in the areas where the Company and such other businesses operate; (ii) further negative ratings outlooks or downgrades of the U.S.’s long-term credit rating, (jj) changes in legislative, regulatory or tax priorities, (kk) reductions in staffing at U.S. governmental agencies, (ll) potential government shutdowns or political impasses, including with respect to the U.S. debt ceiling and federal budget; and (mm) other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent reports on Form 10-Q and Form 8-K.

The timing and amount of purchases under the Company’s share repurchase program will be determined by the Share Repurchase Committee based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company’s discretion and without notice.

Any forward-looking statement speaks only as of the date of this release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether because of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence. In addition, the Company cannot assess the impact of each risk and uncertainty on its business or the extent to which any risk or uncertainty, or combination of risks and uncertainties, may cause actual results to differ materially from those contained in any forward-looking statements.


FINWISE BANCORP CONSOLIDATED BALANCE SHEETS ($ in thousands; Unaudited)

	3/31/2025		12/31/2024		3/31/2024
ASSETS
Cash and cash equivalents
Cash and due from banks	$	8,155	$	9,600	$	3,944
Interest-bearing deposits		112,117		99,562		111,846
Total cash and cash equivalents		120,272		109,162		115,790
Investment securities available-for-sale, at fair value		30,138		29,930		—
Investment securities held-to-maturity, at cost		12,008		12,565		14,820
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost		440		349		349
Strategic Program loans held-for-sale, at lower of cost or fair value		118,769		91,588		54,947
Loans held-for-investment, net		472,402		447,812		377,101
Credit enhancement asset		195		111		—
Premises and equipment, net		3,123		3,548		6,665
Accrued interest receivable		2,708		3,566		3,429
Deferred taxes, net		290		—		—
SBA servicing asset, net		3,331		3,273		4,072
Investment in Business Funding Group (“BFG”), at fair value		8,100		7,700		8,200
Operating lease right-of-use (“ROU”) assets		3,555		3,564		4,104
Income tax receivable, net		3,353		8,868		2,400
Other assets		25,445		23,939		18,956
Total assets	$	804,129	$	745,976	$	610,833

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest-bearing	$	123,322	$	126,782	$	107,076
Interest-bearing		482,437		418,170		317,020
Total deposits		605,759		544,952		424,096
Accrued interest payable		2,750		1,494		588
Income taxes payable, net		962		4,423		3,207
Deferred taxes, net		—		899		508
Operating lease liabilities		5,226		5,302		6,046
Other liabilities		12,071		15,186		13,906
Total liabilities		626,768		572,256		448,351

Shareholders’ equity
Common stock		13		13		13
Additional paid-in-capital		57,548		56,926		55,304
Retained earnings		119,781		116,594		107,165
Accumulated other comprehensive income, net of tax		19		187		—
Total shareholders’ equity		177,361		173,720		162,482
Total liabilities and shareholders’ equity	$	804,129	$	745,976	$	610,833


FINWISE BANCORP CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except per share amounts; Unaudited)

	Three Months Ended
	3/31/2025		12/31/2024			3/31/2024
Interest income
Interest and fees on loans	$	17,155	$	18,388		$	16,035
Interest on securities		390		401			101
Other interest income		991		573			1,509
Total interest income		18,536		19,362			17,645

Interest expense
Interest on deposits		4,256		3,833			3,639
Total interest expense		4,256		3,833			3,639
Net interest income		14,280		15,529			14,006

Provision for credit losses		3,336		3,878			3,154
Net interest income after provision for credit losses		10,944		11,651			10,852

Non-interest income
Strategic Program fees		4,962		4,899			3,965
Gain on sale of loans, net		846		872			415
SBA loan servicing fees, net		178		181			664
Change in fair value on investment in BFG		400		(200	)		(124	)
Credit enhancement income		85		25			—
Other miscellaneous (loss) income		1,339		(174	)		742
Total non-interest income		7,810		5,603			5,662

Non-interest expense
Salaries and employee benefits		9,826		9,375			7,562
Professional services		907		556			1,567
Occupancy and equipment expenses		543		533			544
Credit enhancement expense		11		5			—
Other operating expenses		3,031		3,094			2,332
Total non-interest expense		14,318		13,563			12,005
Income before income taxes		4,436		3,691			4,509

Provision for income taxes		1,247		897			1,194
Net income	$	3,189	$	2,794		$	3,315

Earnings per share, basic	$	0.24	$	0.21		$	0.26
Earnings per share, diluted	$	0.23	$	0.20		$	0.25

Weighted average shares outstanding, basic		12,716,155		12,659,986			12,502,448
Weighted average shares outstanding, diluted		13,483,647		13,392,411			13,041,605
Shares outstanding at end of period		13,216,903		13,211,640			12,793,555


FINWISE BANCORP AVERAGE BALANCES, YIELDS, AND RATES ($ in thousands; Unaudited)

	Three Months Ended
	3/31/2025						12/31/2024						3/31/2024
	Average Balance		Interest		Average Yield/ Rate		Average Balance		Interest		Average Yield/ Rate		Average Balance		Interest		Average Yield/ Rate
Interest earning assets:
Interest-bearing deposits	$	92,794	$	991	4.33	%	$	52,375	$	573	4.35	%	$	111,911	$	1,509	5.42	%
Investment securities		42,314		390	3.74	%		43,212		401	3.69	%		15,174		101	2.67	%
Strategic Program loans held-for-sale		79,612		4,264	21.72	%		67,676		5,040	29.63	%		42,452		3,475	32.93	%
Loans held-for-investment		485,780		12,891	10.76	%		454,474		13,348	11.68	%		387,300		12,560	13.04	%
Total interest earning assets		700,500		18,536	10.73	%		617,737		19,362	12.47	%		556,837		17,645	12.74	%
Noninterest-earning assets		54,184						55,767						39,123
Total assets	$	754,684					$	673,504					$	595,960
Interest-bearing liabilities:
Demand	$	76,403	$	670	3.56	%	$	57,305	$	617	4.28	%	$	51,603	$	503	3.92	%
Savings		9,247		7	0.30	%		9,192		9	0.40	%		9,301		19	0.83	%
Money market accounts		17,884		163	3.70	%		15,726		147	3.73	%		10,200		66	2.60	%
Certificates of deposit		326,920		3,416	4.24	%		272,799		3,060	4.46	%		239,577		3,051	5.12	%
Total deposits		430,454		4,256	4.01	%		355,022		3,833	4.30	%		310,681		3,639	4.71	%
Other borrowings		48		—	0.35	%		79		—	0.35	%		172		—	0.35	%
Total interest-bearing liabilities		430,502		4,256	4.01	%		355,101		3,833	4.29	%		310,853		3,639	4.71	%
Noninterest-bearing deposits		119,501						119,945						100,507
Noninterest-bearing liabilities		29,644						27,636						25,446
Shareholders’ equity		175,037						170,823						159,154
Total liabilities and shareholders’ equity	$	754,684					$	673,505					$	595,960
Net interest income and interest rate spread			$	14,280	6.72	%			$	15,529	8.18	%			$	14,006	8.03	%
Net interest margin					8.27	%					10.00	%					10.12	%
Ratio of average interest-earning assets to average interest- bearing liabilities					162.72	%					173.96	%					179.13	%


Reconciliation of Non-GAAP to GAAP Financial Measures (Unaudited)

Efficiency ratio	Three Months Ended
($ in thousands)	3/31/2025			12/31/2024			3/31/2024
Non-interest expense	$	14,318		$	13,563		$	12,005

Net interest income		14,280			15,529			14,006
Total non-interest income		7,810			5,603			5,662
Adjusted operating revenue	$	22,090		$	21,132		$	19,668
Efficiency ratio		64.8	%		64.2	%		61.0	%

FinWise has entered into agreements with certain of its Strategic Program service providers pursuant to which they provide credit enhancement on loans which protects the Bank by indemnifying or reimbursing the Bank for incurred credit and fraud losses. We estimate and record a provision for expected losses for these Strategic Program loans in accordance with GAAP, which requires estimation of the provision without consideration of the credit enhancement. When the provision for expected losses over the life of the loans that are subject to such credit enhancement is recorded, a credit enhancement asset reflecting the potential future recovery of those losses is also recorded on the balance sheet in the form of non-interest income (credit enhancement income). Reimbursement or indemnification for incurred losses is provided for in the form of a deposit reserve account that is replenished periodically by the respective Strategic Program service provider. Any remaining income on such loans in excess of the amounts retained by FinWise and placed in the deposit reserve account are paid to the Strategic Program service provider. Income on such loans in excess of amounts retained by FinWise are expensed for services provided by the Strategic Program service provider including its legal commitment to indemnify or reimburse all credit or fraud losses pursuant to credit enhancement agreements. The credit enhancement asset is reduced as credit enhancement payments and recoveries are received from the Strategic Program service provider or taken from its cash reserve account. If the Strategic Program service provider is unable to fulfill its contracted obligations under its credit enhancement agreement, then the Bank could be exposed to the loss of the reimbursement and credit enhancement income as a result of this counterparty risk. See the following reconciliations of non-GAAP measures for the impact of the credit enhancement on our financial condition and results. Note that these amounts are supplemental and are not a substitute for an analysis based on GAAP measures. Similar amounts for periods prior to the quarter ended December 31, 2024 were immaterial and therefore not separately disclosed.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on total interest income on loans held-for-investment and average yield on loans held-for-investment:

	As of and for the Three Months Ended							As of and for the Three Months Ended
($ in thousands; unaudited)	3/31/2025							12/31/2024
	Total Average Loans HFI		Total Interest Income on Loans HFI			Average Yield on Loans HFI		Total Average Loans HFI		Total Interest Income on Loans HFI			Average Yield on Loans HFI
Before adjustment for credit enhancement	$	485,780	$	12,891		10.76	%	$	454,474	$	13,348		11.68	%
Less: credit enhancement expense				(11	)						(5	)
Net of adjustment for credit enhancement expenses	$	485,780	$	12,880		10.76	%	$	454,474	$	13,343		11.68	%

Total interest income on loans held-for-investment net of credit enhancement expense and the average yield on loans held-for-investment net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expense on total interest income on loans held-for-investment and the respective average yield on loans held-for-investment, the most directly comparable GAAP measures.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on net interest income and net interest margin:

	As of and for the Three Months Ended							As of and for the Three Months Ended
	3/31/2025							12/31/2024
($ in thousands; unaudited)	Total Average Interest-Earning Assets		Net Interest Income			Net Interest Margin		Total Average Interest-Earning Assets		Net Interest Income			Net Interest Margin
Before adjustment for credit enhancement	$	700,500	$	14,280		8.27	%	$	617,737	$	15,529		10.00	%
Less: credit enhancement expense				(11	)						(5	)
Net of adjustment for credit enhancement expenses	$	700,500	$	14,269		8.27	%	$	617,737	$	15,524		10.00	%

Net interest income and net interest margin net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expenses on net interest income and net interest margin, the most directly comparable GAAP measures.

Non-interest expenses less credit enhancement expenses is a non-GAAP measure presented to illustrate the impact of credit enhancement expense on non-interest expense:

($ in thousands; unaudited)	Three Months Ended March 31, 2025			Three Months Ended December 31, 2024
Total non-interest expense	$	14,318		$	13,564
Less: credit enhancement expense		(11	)		(5	)
Total non-interest expense less credit enhancement expenses	$	14,307		$	13,559

Total non-interest expense less credit enhancement expense is a non-GAAP measure that illustrates the impact of credit enhancement expenses on non-interest expense, the most directly comparable GAAP measure.

Total non-interest income less credit enhancement income is a non-GAAP measure to illustrate the impact of credit enhancement income resulting from credit enhanced loans on non-interest income:

($ in thousands; unaudited)	Three Months Ended March 31, 2025			Three Months Ended December 31, 2024
Total non-interest income	$	7,810		$	5,603
Less: credit enhancement income		(85	)		(25	)
Total non-interest income less credit enhancement income	$	7,725		$	5,578

Total non-interest income less indemnification income is a non-GAAP measure that illustrates the impact of credit enhancement income on non-interest income. The most directly comparable GAAP measure is non-interest income.

The following non-GAAP measure is presented to illustrate the effect of the credit enhancement program that creates the credit enhancement on the allowance for credit losses:

($ in thousands; unaudited)	As of March 31, 2025			As of December 31, 2024
Allowance for credit losses	$	(14,235	)	$	(13,176	)
Less: allowance for credit losses related to credit enhanced loans		(195	)		(111	)
Allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans	$	(14,040	)	$	(13,065	)

The allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans is a non-GAAP measure that reflects the effect of the credit enhancement program on the allowance for credit losses. The total outstanding balance of loans held-for-investment with credit enhancement as of March 31, 2025 and December 31, 2024 was approximately $1.3 million and $0.9 million, respectively.

The MIL Network –

May 1, 2025

MIL-OSI: NCS Multistage Holdings, Inc. Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

First Quarter Results

Total revenues of $50.0 million, a 14% year-over-year improvement
Gross margin improved to 42% from 39%; adjusted gross margin improved to 44% from 40% in the first quarter of 2024
Net income of $4.1 million and diluted earnings per share of $1.51, an improvement compared to $2.1 million and diluted earnings per share of $0.82 one year ago
Adjusted EBITDA of $8.2 million, a $2.1 million year-over-year improvement
$23.0 million in cash and $7.6 million of total debt as of March 31, 2025

HOUSTON, April 30, 2025 (GLOBE NEWSWIRE) — NCS Multistage Holdings, Inc. (Nasdaq: NCSM) (the “Company,” “NCS,” “we” or “us”), a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies, today announced its results for the quarter ended March 31, 2025.

Review and Outlook

NCS’s Chief Executive Officer, Ryan Hummer commented, “NCS had a strong start to 2025, with total revenues and Adjusted EBITDA for the first quarter exceeding our expectations as provided in the last earnings call, led by our performance in Canada.

Total revenues of $50.0 million increased by 14% year-over-year and 11% sequentially and represents our highest quarterly revenue since the first quarter of 2020. This is reflective of the consistent efforts of our team to deliver differentiated performance through the implementation of our core strategies.

Our adjusted gross margin improved to 44% for the quarter, compared to 40% for the same period one year ago, as we benefitted from the higher revenue, including higher-margin international work in both the Middle East and the North Sea.

Our Adjusted EBITDA was $8.2 million for the first quarter, an improvement of $2.1 million, or 35%, year-over-year. This demonstrates the operating leverage in our business and the benefits of our capital light operating model, as our Adjusted EBITDA margin for the first quarter of 2025 of 16% improved from 14% in the first quarter of 2024.

This improved operating performance resulted in net income attributable to NCS of $4.1 million, or $1.51 per diluted share for the first quarter of 2025, a meaningful improvement as compared to $2.1 million and $0.82 per diluted share, respectively, for the same period in 2024.

Our cash balance as of March 31, 2025, totaled $23.0 million and our net cash position was $15.4 million. Total liquidity was $49.8 million as of March 31, 2025, inclusive of our cash balance and availability under our undrawn revolving credit facility, an increase of $15.4 million compared to one year ago.

We have not experienced a significant impact on our business from escalating global trade tensions, and we expect that to continue to be the case in the second quarter of 2025. However, such global trade tensions and potential additional U.S. tariffs — along with retaliatory measures by other countries — present risks to commodity prices that could result in lower drilling and completions activity as compared to our initial expectations for both the second half and full year in 2025. If sustained, such conditions may result in a more pronounced decrease in drilling and completion activity across these markets. In addition, we are evaluating options to mitigate the impact of potential cost increases from tariffs that have been imposed by the U.S. on products from China and on steel imports, in particular.

I want to express my continued appreciation to our team at NCS and Repeat Precision. Our accomplishments and our upcoming opportunities reflect the talent, effort and dedication of our outstanding teams. We have the right people, the right technology, and the right strategies in place to deliver extraordinary outcomes to our customers, drive innovation in the industry and create value for our shareholders. We’ve had a good start for the year and remain cautiously optimistic about the remainder of 2025. Our strong balance sheet remains a strategic asset for NCS and we will react swiftly and decisively in response to changing market conditions and opportunities.”

Financial Review

Total revenues were $50.0 million for the quarter ended March 31, 2025 compared to $43.9 million for the first quarter of 2024. Revenue growth was driven primarily by an increase in Canadian product sales and increases in services revenue across all of our geographic regions, partially offset by a decline in U.S. product sales attributed to certain project delays. The increase in product and service sales for Canada reflects robust activity levels, particularly for fracturing systems completions, a trend that began in the fourth quarter of 2024 and continued throughout the first quarter. The increase in international service revenues was driven by Middle East tracer diagnostics projects and North Sea fracturing systems product sales and services.

Compared to the fourth quarter of 2024, total revenues increased by 11%, with an increase in Canada of 26% due to continued strong activity levels. This increase was partially offset by a decline of 34% in international revenues, primarily associated with the timing of tracer service work in the Middle East, and a 13% decline in U.S. revenues.

Gross profit was $21.1 million, with a gross margin of 42%, for the first quarter of 2025, compared to $17.0 million, with a gross margin of 39%, for the first quarter of 2024. Gross margin for 2025 improved due to an increase in higher-margin international work in both the Middle East and North Sea, and increased product sales in Canada. We also benefitted from efficiencies related to our supply chain and our manufacturing/assembly operations, leveraging certain fixed costs and capitalizing on lean manufacturing strategies implemented over the last year. Adjusted gross profit, which we define as total revenues less total cost of sales, exclusive of depreciation and amortization (“DD&A”), was $21.9 million, or an adjusted gross margin of 44%, for the first quarter of 2025, compared to $17.6 million, or 40%, for the first quarter of 2024.

Selling, general and administrative (“SG&A”) expenses totaled $16.2 million for the first quarter of 2025, an increase of $2.4 million compared to the same period in 2024. This increase in expense reflects a higher annual incentive bonus accrual year-over-year, higher professional fees and an increase in share-based compensation expense attributable to cash settled awards, which are remeasured at the balance sheet date based on the price of our common stock.

Other income was $0.9 million for the first quarter of 2025 compared to $1.1 million for the first quarter of 2024. The decline in other income reflects the absence of a contribution from a technical services and assistance agreement with our local partner in Oman for the first quarter of 2025, as that program ended in November 2024. Partially offsetting this year-over year decrease was an increase in the royalty income earned from licensees for these periods.

Net income was $4.1 million, or $1.51 per diluted share, for the quarter ended March 31, 2025 compared to net income of $2.1 million, or $0.82 per diluted share for the quarter ended March 31, 2024.

Adjusted EBITDA was $8.2 million for the quarter ended March 31, 2025, an increase of $2.1 million compared to the same period a year ago. This improvement is primarily the result of an increase in Canada revenues and higher-margin international projects partially offset by an increase in SG&A expenses due to higher annual incentive bonus accruals. Adjusted EBITDA margin of 16% for the quarter ended March 31, 2025, compared to 14% for the same period a year ago.

Cash flow from operating activities for the three months ended March 31, 2025 was a use of cash of $(1.6) million, a $0.2 million improvement compared to the same period in 2024. For the three months ended March 31, 2025, free cash flow less distributions to non-controlling interest was a use of cash of $(2.1) million compared to a use of cash of $(2.5) million for the same period in 2024. The overall change in free cash flow was largely attributed to our operating results, change in net working capital including payment of incentive bonuses and cash-settled awards remeasured based on the price of our stock in the first quarter of 2025, and the absence of a distribution to our non-controlling interest in 2025, partially offset by an increase in net cash invested in capital expenditures.

Liquidity and Capital Expenditures

As of March 31, 2025, NCS had $23.0 million in cash, $7.6 million in total indebtedness related to finance lease obligations, and a borrowing base under the undrawn asset-based revolving credit facility (“ABL Facility”) of $26.8 million. Our working capital, defined as current assets minus current liabilities, was $85.2 million and $80.2 million as of March 31, 2025 and December 31, 2024, respectively.

Net working capital, calculated as working capital, less cash and excluding the current maturities of long-term debt, was $64.4 million and $56.4 million as of March 31, 2025 and December 31, 2024, respectively. The increase in our net working capital was primarily attributable to an increase in accounts receivable and a decrease in accrued expenses due in part to payment of our 2024 incentive bonus in the first quarter of 2025, partially offset by an increase in accounts payable.

NCS incurred capital expenditures, net of proceeds from the sale of property and equipment, of $0.5 million and $0.1 million for the three months ended March 31, 2025 and 2024, respectively.

EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital are non-GAAP financial measures. For an explanation of these measures and a reconciliation, refer to “Non-GAAP Financial Measures” below.

Conference Call

The Company will host a conference call to discuss its first quarter 2025 results and updated guidance on Thursday, May 1, 2025 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). For those participants who wish to ask questions, please dial (800) 715-9871 (U.S. toll-free) or +1 (646) 307-1963 (international) and enter the Conference ID: 7182351. A listen-only option is also available through this link. Participants are encouraged to log in to the webcast or dial in to the conference call approximately ten minutes prior to the start time. To listen via live webcast, please visit the Investors section of the Company’s website, www.ncsmultistage.com.

The replay will be available in the Investors section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.

About NCS Multistage Holdings, Inc.

NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides products and services primarily to exploration and production companies for use in onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including the North Sea, the Middle East, Argentina and China. NCS’s common stock is traded on the Nasdaq Capital Market under the symbol “NCSM.” Additional information is available on the website, www.ncsmultistage.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods, or by the inclusion of forecasts or projections. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause our actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following: declines in the level of oil and natural gas exploration and production activity in Canada, the United States and internationally; oil and natural gas price fluctuations; significant competition for our products and services that results in pricing pressures, reduced sales, or reduced market share; inability to successfully implement our strategy of increasing sales of products and services into the U.S. and international markets; loss of significant customers; losses and liabilities from uninsured or underinsured business activities and litigation; change in trade policy, including the impact of tariffs; our failure to identify and consummate potential acquisitions; the financial health of our customers including their ability to pay for products or services provided; our inability to integrate or realize the expected benefits from acquisitions; our inability to achieve suitable price increases to offset the impacts of cost inflation; loss of any of our key suppliers or significant disruptions negatively impacting our supply chain; risks in attracting and retaining qualified employees and key personnel; risks resulting from the operations of our joint venture arrangement; currency exchange rate fluctuations; impact of severe weather conditions; our inability to accurately predict customer demand, which may result in us holding excess or obsolete inventory; failure to comply with or changes to federal, state and local and non-U.S. laws and other regulations, including anti-corruption and environmental regulations, guidelines and regulations for the use of explosives; impairment in the carrying value of long-lived assets including goodwill; system interruptions or failures, including complications with our enterprise resource planning system, cybersecurity breaches, identity theft or other disruptions that could compromise our information; our inability to successfully develop and implement new technologies, products and services that align with the needs of our customers, including addressing the shift to more non-traditional energy markets as part of the energy transition and the adoption of artificial intelligence and machine learning; our inability to protect and maintain critical intellectual property assets, the inability to protect our current royalty income, or the losses and liabilities from adverse decisions in intellectual property disputes; loss of, or interruption to, our information and computer systems; our failure to establish and maintain effective internal control over financial reporting; restrictions on the availability of our customers to obtain water essential to the drilling and hydraulic fracturing processes; changes in legislation or regulation governing the oil and natural gas industry, including restrictions on emissions of greenhouse gases; our inability to meet regulatory requirements for use of certain chemicals by our tracer diagnostics business; the reduction in our ABL Facility borrowing base or our inability to comply with the covenants in our debt agreements; and our inability to obtain sufficient liquidity on reasonable terms, or at all and other factors discussed or referenced in our filings made from time to time with the Securities and Exchange Commission. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events 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 undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Contact

Mike Morrison
Chief Financial Officer and Treasurer
(281) 453-2222
IR@ncsmultistage.com


NCS MULTISTAGE HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)

	Three Months Ended
	March 31,
	2025			2024
Revenues
Product sales	$	35,066		$	31,758
Services		14,939			12,100
Total revenues		50,005			43,858
Cost of sales
Cost of product sales, exclusive of depreciation and amortization expense shown below		20,352			19,692
Cost of services, exclusive of depreciation and amortization expense shown below		7,798			6,595
Total cost of sales, exclusive of depreciation and amortization expense shown below		28,150			26,287
Selling, general and administrative expenses		16,195			13,830
Depreciation		1,204			1,073
Amortization		167			167
Income from operations		4,289			2,501
Other income (expense)
Interest expense, net		(42	)		(100	)
Other income, net		883			1,137
Foreign currency exchange loss, net		(3	)		(498	)
Total other income		838			539
Income before income tax		5,127			3,040
Income tax expense		673			487
Net income		4,454			2,553
Net income attributable to non-controlling interest		398			483
Net income attributable to NCS Multistage Holdings, Inc.	$	4,056		$	2,070
Earnings per common share
Basic earnings per common share attributable to NCS Multistage Holdings, Inc.	$	1.58		$	0.83
Diluted earnings per common share attributable to NCS Multistage Holdings, Inc.	$	1.51		$	0.82
Weighted average common shares outstanding
Basic		2,568			2,508
Diluted		2,686			2,539


NCS MULTISTAGE HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited)

	March 31,			December 31,
	2025			2024
Assets
Current assets
Cash and cash equivalents	$	22,997		$	25,880
Accounts receivable—trade, net		38,403			31,513
Inventories, net		40,756			40,971
Prepaid expenses and other current assets		1,852			2,063
Other current receivables		5,033			5,143
Total current assets		109,041			105,570
Noncurrent assets
Property and equipment, net		20,477			21,283
Goodwill		15,222			15,222
Identifiable intangibles, net		3,523			3,690
Operating lease assets		5,773			5,911
Deposits and other assets		660			712
Deferred income taxes, net		422			424
Total noncurrent assets		46,077			47,242
Total assets	$	155,118		$	152,812
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable—trade	$	11,751		$	8,970
Accrued expenses		5,348			8,351
Income taxes payable		1,103			683
Operating lease liabilities		1,676			1,602
Current maturities of long-term debt		2,250			2,141
Other current liabilities		1,737			3,672
Total current liabilities		23,865			25,419
Noncurrent liabilities
Long-term debt, less current maturities		5,370			6,001
Operating lease liabilities, long-term		4,662			4,891
Other long-term liabilities		207			206
Deferred income taxes, net		178			186
Total noncurrent liabilities		10,417			11,284
Total liabilities		34,282			36,703
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding at March 31, 2025 and December 31, 2024		—			—
Common stock, $0.01 par value, 11,250,000 shares authorized, 2,607,362 shares issued and 2,540,849 shares outstanding at March 31, 2025 and 2,563,979 shares issued and 2,507,430 shares outstanding at December 31, 2024		26			26
Additional paid-in capital		447,936			447,384
Accumulated other comprehensive loss		(87,615	)		(87,604	)
Retained deficit		(254,968	)		(259,024	)
Treasury stock, at cost, 66,513 shares at March 31, 2025 and 56,549 shares at December 31, 2024		(2,211	)		(1,943	)
Total stockholders’ equity		103,168			98,839
Non-controlling interest		17,668			17,270
Total equity		120,836			116,109
Total liabilities and stockholders’ equity	$	155,118		$	152,812


NCS MULTISTAGE HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

	Three Months Ended
	March 31,
	2025			2024
Cash flows from operating activities
Net income	$	4,454		$	2,553
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		1,371			1,240
Amortization of deferred loan costs		52			51
Share-based compensation		1,445			902
Provision for inventory obsolescence		(35	)		316
Deferred income tax expense		1			5
Gain on sale of property and equipment		(36	)		(172	)
Provision for credit losses		42			—
Net foreign currency unrealized loss (gain)		(849	)		373
Proceeds from note receivable		—			61
Changes in operating assets and liabilities:
Accounts receivable—trade		(6,978	)		(10,282	)
Inventories, net		200			1,521
Prepaid expenses and other assets		890			29
Accounts payable—trade		3,742			2,355
Accrued expenses		(3,003	)		130
Other liabilities		(3,273	)		(1,339	)
Income taxes receivable/payable		332			377
Net cash used in operating activities		(1,645	)		(1,880	)
Cash flows from investing activities
Purchases of property and equipment		(464	)		(299	)
Purchase and development of software and technology		—			(13	)
Proceeds from sales of property and equipment		13			176
Net cash used in investing activities		(451	)		(136	)
Cash flows from financing activities
Payments on finance leases		(522	)		(449	)
Line of credit borrowings		1,963			1,158
Payments of line of credit borrowings		(1,963	)		(602	)
Treasury shares withheld		(268	)		(237	)
Distribution to noncontrolling interest		—			(500	)
Net cash used in financing activities		(790	)		(630	)
Effect of exchange rate changes on cash and cash equivalents		3			(70	)
Net change in cash and cash equivalents		(2,883	)		(2,716	)
Cash and cash equivalents beginning of period		25,880			16,720
Cash and cash equivalents end of period	$	22,997		$	14,004
Noncash investing and financing activities
Assets obtained in exchange for new finance lease liabilities	$	—		$	696
Assets obtained in exchange for new operating lease liabilities	$	244		$	—

NCS MULTISTAGE HOLDINGS, INC. REVENUES BY GEOGRAPHIC AREA (In thousands) (Unaudited)

	Three Months Ended
	March 31,
	2025		2024
United States
Product sales	$	6,867	$	7,767
Services		2,505		2,244
Total United States		9,372		10,011
Canada
Product sales		26,843		22,675
Services		10,875		8,994
Total Canada		37,718		31,669
Other Countries
Product sales		1,356		1,316
Services		1,559		862
Total other countries		2,915		2,178
Total
Product sales		35,066		31,758
Services		14,939		12,100
Total revenues	$	50,005	$	43,858

NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
(Unaudited)

Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital (our “non-GAAP financial measures”) are not defined under generally accepted accounting principles (“GAAP”), are not measures of net income, income from operations, gross profit and gross margin (inclusive of DD&A), cash provided by (used in) operating activities, working capital or any other performance measure derived in accordance with GAAP, and are subject to important limitations. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies in our industry and are not measures of performance calculated in accordance with GAAP. Our non-GAAP financial measures have important limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our financial performance as reported under GAAP, and they should not be considered as alternatives to net income, income from operations, gross profit, gross margin, cash provided by (used in) operating activities, working capital or any other performance measures derived in accordance with GAAP as measures of operating performance or as alternatives to cash flow from operating activities as measures of our liquidity.

However, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital are key metrics that management uses to assess the period-to-period performance of our core business operations or metrics that enable investors to assess our performance from period to period relative to the performance of other companies that are not subject to such factors, or who may provide similar non-GAAP measures in their public disclosures.

The tables below set forth reconciliations of our non-GAAP financial measures to the most directly comparable measures of financial performance calculated under GAAP:

NET WORKING CAPITAL

Net working capital is defined as total current assets, excluding cash and cash equivalents, minus total current liabilities, excluding current maturities of long-term debt. Net working capital excludes cash and cash equivalents and current maturities of long-term debt in order to evaluate the investments in working capital that we believe are required to support our business. We believe that net working capital is useful in analyzing the cash flow and working capital needs of the Company, including determining the efficiencies of our operations and our ability to readily convert assets into cash.

	March 31,			December 31,
	2025			2024
Working capital	$	85,176		$	80,151
Cash and cash equivalents		(22,997	)		(25,880	)
Current maturities of long term debt		2,250			2,141
Net working capital	$	64,429		$	56,412

NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
(Unaudited)

ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN

Adjusted gross profit is defined as total revenues minus cost of sales, exclusive of depreciation and amortization expense, which we present as a separate line item in our statement of operations. Adjusted gross margin represents adjusted gross profit as a percentage of total revenues.

	Three Months Ended
	March 31,
	2025			2024
Total revenues	$	50,005		$	43,858
Total cost of sales, exclusive of depreciation and amortization expense		28,150			26,287
Total depreciation and amortization associated with cost of sales		715			616
Gross Profit	$	21,140		$	16,955
Gross Margin		42	%		39	%
Exclude total depreciation and amortization associated with cost of sales		(715	)		(616	)
Adjusted Gross Profit	$	21,855		$	17,571
Adjusted Gross Margin		44	%		40	%

NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)

EBITDA, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, AND ADJUSTED EBITDA LESS SHARE-BASED COMPENSATION

EBITDA is defined as net income before interest expense, net, income tax expense and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items which we believe are not reflective of ongoing operating performance or which, in the case of share-based compensation, is non-cash in nature. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of total revenues. Adjusted EBITDA Less Share-Based Compensation is defined as Adjusted EBITDA minus share-based compensation expense. We believe that Adjusted EBITDA is an important measure that excludes costs that do not reflect the Company’s ongoing operating performance, legal proceedings for intellectual property as further described below, and certain costs associated with our capital structure. We believe that Adjusted EBITDA Less Share-Based Compensation presents our financial performance in a manner that is comparable to the presentation provided by many of our peers.

We periodically incur legal costs associated with the assertion of, or defense of, intellectual property, which we exclude from our definition of Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation, unless we believe that settlement will occur prior to any material legal spend (included in the table below as “Professional Fees”). Although these costs may recur between periods, depending on legal matters then outstanding or in process, we believe the timing of when these costs are incurred does not typically match the settlement or recoveries associated with such matters, and therefore, can distort our operating results. Similarly, we exclude from Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation the one-time settlement or recovery payment associated with these excluded legal matters when realized but would not exclude any go forward royalties or payments, if applicable. We expect to continue to incur these legal costs for current matters under appeal and for any future cases that may go to trial, provided that the amount will vary by period.

	Three Months Ended
	March 31,
	2025			2024
Net income	$	4,454		$	2,553
Income tax expense		673			487
Interest expense, net		42			100
Depreciation		1,204			1,073
Amortization		167			167
EBITDA		6,540			4,380
Share-based compensation (a)		552			766
Professional fees (b)		989			253
Foreign currency exchange loss (c)		3			498
Other (d)		130			180
Adjusted EBITDA	$	8,214		$	6,077
Adjusted EBITDA Margin		16	%		14	%
Adjusted EBITDA Less Share-Based Compensation	$	7,662		$	5,311

___________________

(a)	Represents non-cash compensation charges related to share-based compensation granted to our officers, employees and directors.
(b)	Represents non-capitalizable costs of professional services primarily incurred or reversed in connection with our legal proceedings associated with the assertion of, or defense of, intellectual property as further described above as well as the cost incurred for the evaluation of potential strategic transactions.
(c)	Represents realized and unrealized foreign currency exchange gains and losses primarily due to movement in the foreign currency exchange rates during the applicable periods.
(d)	Represents the impact of a research and development subsidy that is included in income tax expense in accordance with GAAP along with other charges and credits.

NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)

FREE CASH FLOW AND FREE CASH FLOW LESS DISTRIBUTIONS TO NON-CONTROLLING INTEREST

Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property and equipment (inclusive of the purchase and development of software and technology) plus proceeds from sales of property and equipment, as presented in our consolidated statement of cash flows. We define free cash flow less distributions to non-controlling interest as free cash flow less amounts reported in the financing activities section of the statement of cash flows as distributions to non-controlling interest. We believe free cash flow is useful because it provides information to investors regarding the cash that was available in the period that was in excess of our needs to fund our capital expenditures and other investment needs. We believe that free cash flow less distributions to non-controlling interest is useful because it provides information to investors regarding the cash that was available in the period that was in excess of our needs to fund our capital expenditures, other investment needs, and cash distributions to our joint venture partner.

	Three Months Ended
	March 31,
	2025			2024
Net cash used in operating activities	$	(1,645	)	$	(1,880	)
Purchases of property and equipment		(464	)		(299	)
Purchase and development of software and technology		—			(13	)
Proceeds from sales of property and equipment		13			176
Free cash flow	$	(2,096	)	$	(2,016	)
Distributions to non-controlling interest		—			(500	)
Free cash flow less distributions to non-controlling interest	$	(2,096	)	$	(2,516	)

The MIL Network –

May 1, 2025

MIL-OSI: Enact Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

GAAP Net Income of $166 million, or $1.08 per diluted share
Adjusted Operating Income of $169 million, or $1.10 per diluted share
Return on Equity of 13.1% and Adjusted Operating Return on Equity of 13.4%
Primary Insurance in-force of $268 billion, a 2% increase from first quarter 2024
PMIERs Sufficiency of 165% or approximately $2.0 billion
Book Value Per Share of $33.96 and Book Value Per Share excluding AOCI of $34.97

RALEIGH, N.C., April 30, 2025 (GLOBE NEWSWIRE) — Enact Holdings, Inc. (Nasdaq: ACT) today announced financial results for the first quarter of 2025.

“We had a strong start to 2025 and continue to make progress against our priorities,” stated Rohit Gupta, President and CEO of Enact. “We continued to prudently underwrite new business, invest in our business, maintain expense discipline, and return substantial capital to our shareholders. Looking ahead, Enact is well positioned to navigate an uncertain economic backdrop. We are committed to executing against all aspects of our strategy and are doing so from a position of robust liquidity and financial strength. We believe the long-term drivers of housing demand remain in place, and we look forward to continuing to create value for all our stakeholders.”

Key Financial Highlights

(In millions, except per share data or otherwise noted)	1Q25	4Q24	1Q24
Net Income (loss)	$166	$163	$161
Diluted Net Income (loss) per share	$1.08	$1.05	$1.01
Adjusted Operating Income (loss)	$169	$169	$166
Adj. Diluted Operating Income (loss) per share	$1.10	$1.09	$1.04
NIW ($B)	$10	$13	$11
Primary Persistency Rate	84%	82%	85%
Primary IIF ($B)	$268	$269	$264
Net Premiums Earned	$245	$246	$241
Losses Incurred	$31	$24	$20
Loss Ratio	12%	10%	8%
Operating Expenses	$53	$58	$53
Expense Ratio	21%	24%	22%
Net Investment Income	$63	$63	$57
Net Investment gains (losses)	$(3)	$(7)	$(7)
Return on Equity	13.1%	13.0%	13.8%
Adjusted Operating Return on Equity	13.4%	13.5%	14.2%
PMIERs Sufficiency ($)	$1,966	$2,052	$1,883
PMIERs Sufficiency (%)	165%	167%	163%

First Quarter 2025 Financial and Operating Highlights

Net income was $166 million, or $1.08 per diluted share, compared with $163 million, or $1.05 per diluted share, for the fourth quarter of 2024 and $161 million, or $1.01 per diluted share, for the first quarter of 2024. Adjusted operating income was $169 million, or $1.10 per diluted share, compared with $169 million, or $1.09 per diluted share, for the fourth quarter of 2024 and $166 million, or $1.04 per diluted share, for the first quarter of 2024.
New insurance written (NIW) was approximately $10 billion, down 26% from the fourth quarter of 2024 primarily from seasonality in the purchase origination market and down 7% from the first quarter of 2024 primarily driven by lower estimated market share. NIW for the current quarter was comprised of 94% monthly premium policies and 93% purchase originations.
Persistency remained elevated at 84%, up from 82% in the fourth quarter of 2024 and down from 85% in the first quarter of 2024. Approximately 8% of the mortgages in our portfolio had rates at least 50 basis points above March 2025’s average mortgage rate of 6.7%.
Primary insurance in-force (IIF) was $268 billion, relatively flat from $269 billion in the fourth quarter of 2024 and up 2% from $264 billion in the first quarter of 2024.
Net premiums earned were $245 million, relatively flat from $246 million in the fourth quarter of 2024 and up 2% from $241 million in the first quarter of 2024. The year-over-year increase is primarily driven by premium growth from attractive adjacencies and growth in primary insurance in-force, partially offset by higher ceded premiums.
Losses incurred for the first quarter of 2025 were $31 million and the loss ratio was 12%, compared to $24 million and 10%, respectively, in the fourth quarter of 2024 and $20 million and 8%, respectively, in the first quarter of 2024. The current quarter reserve release of $47 million from favorable cure performance and loss mitigation activities compares to a reserve release of $56 million and $54 million in the fourth quarter of 2024 and first quarter of 2024, respectively. The sequential and year-over-year increase in losses and the loss ratio were primarily driven by the lower reserve release in the quarter.
Operating expenses in the current quarter were $53 million and the expense ratio was 21%. This compared to $58 million and 24%, respectively, in the fourth quarter of 2024 and $53 million and 22%, respectively in the first quarter of 2024. The sequential decrease was primarily driven by lower incentive-based compensation.
Net investment income was $63 million, flat from $63 million in the fourth quarter of 2024 and up from $57 million in the first quarter of 2024, driven by the continuation of elevated interest rates and higher average invested assets.
Net investment gains (losses) in the quarter were $(3) million, as compared to $(7) million sequentially and $(7) million in the same period last year. The activity is primarily driven by the identification of assets that upon selling allow us to recoup losses through higher net investment income.
Annualized return on equity for the first quarter of 2025 was 13.1% and annualized adjusted operating return on equity was 13.4%. This compares to fourth quarter 2024 results of 13.0% and 13.5%, respectively, and to first quarter 2024 results of 13.8% and 14.2%, respectively.

Capital and Liquidity

Fitch Ratings upgraded the Insurer Financial Strength rating for EMICO to A from A- and also upgraded Enact’s senior debt rating to BBB. The outlook for both ratings is stable.
We announced two excess-of-loss reinsurance agreements with a panel of highly-rated reinsurers that will provide approximately $225 million and approximately $260 million of coverage on a portion of expected new insurance written for the 2025 and 2026 book years, respectively.
We paid approximately $28 million, or $0.185 per share, dividend in the first quarter.
EMICO completed a dividend of approximately $200 million in the first quarter that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility.
Enact Holdings, Inc. held $356 million of cash and cash equivalents plus $292 million of invested assets as of March 31, 2025. Combined cash and invested assets increased $108 million from the prior quarter, primarily due to a contribution from EMICO, partially offset by share buybacks and our quarterly dividend.
PMIERs sufficiency was 165% and $2.0 billion above the PMIERs requirements, compared to 167% and $2.1 billion above the PMIERs requirements in the fourth quarter of 2024.

Recent Events

We repurchased approximately 2.0 million shares at an average price of $33.38 for a total of approximately $66 million in the quarter. Additionally, through April 25, 2025, we repurchased 0.6 million shares at an average price of $34.53 for a total of $21 million and approximately $6 million remains of our $250 million repurchase authorization.
We announced today that the Company’s Board of Directors approved a new share repurchase program with authorization to purchase up to $350 million of common stock.
Additionally, the Board of Directors declared a 14% increase to our quarterly dividend from $0.185 to $0.21 per common share, payable on June 11, 2025, to shareholders of record on May 19, 2025.

Conference Call and Financial Supplement Information
This press release, the first quarter 2025 financial supplement and earnings presentation are now posted on the Company’s website, https://ir.enactmi.com. Investors are encouraged to review these materials.

Enact will discuss first quarter financial results in a conference call tomorrow, Thursday, May 1, 2025, at 8:00 a.m. (Eastern). Participants interested in joining the call’s live question and answer session are required to pre-register by clicking here to obtain your dial-in number and unique PIN. It is recommended to join at least 15 minutes in advance, although you may register ahead of the call and dial in at any time during the call. If you wish to join the call but do not plan to ask questions, a live webcast of the event will be available on our website, https://ir.enactmi.com/news-and-events/events.

The webcast will also be archived on the Company’s website for one year.

About Enact
Enact (Nasdaq: ACT), operating principally through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders’ businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina.

Safe Harbor Statement
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our most recent Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

GAAP/Non-GAAP Disclosure Discussion
This communication includes the non-GAAP financial measures entitled “adjusted operating income (loss)”, “adjusted operating income (loss) per share,” and “adjusted operating return on equity.” Enact Holdings, Inc. (the “Company”) defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects of net investment gains (losses), restructuring costs and infrequent or unusual non-operating items, and gain (loss) on the extinguishment of debt. The Company excludes net investment gains (losses), gains (losses) on the extinguishment of debt and infrequent or unusual non-operating items because the Company does not consider them to be related to the operating performance of the Company and other activities. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income. In addition, adjusted operating income (loss) per share is derived from adjusted operating income (loss) divided by shares outstanding. Adjusted operating return on equity is calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity.

While some of these items may be significant components of net income (loss) in accordance with U.S. GAAP, the Company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis and adjusted operating return on equity, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Enact Holdings, Inc.’s common stockholders or net income (loss) available to Enact Holdings, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the Company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.

Adjustments to reconcile net income (loss) available to Enact Holdings, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate.

The tables at the end of this press release provide a reconciliation of net income (loss) to adjusted operating income (loss) and U.S. GAAP return on equity to adjusted operating return on equity for the three months ended March 31, 2025 and 2024, as well as for the three months ended December 31, 2024.

Exhibit A: Consolidated Statements of Income (amounts in thousands, except per share amounts)

	1Q25	4Q24	1Q24
REVENUES:
Premiums	$244,786	$245,735	$240,747
Net investment income	63,037	62,624	57,111
Net investment gains (losses)	(3,243)	(7,167)	(6,684)
Other income	2,196	584	402
Total revenues	306,776	301,776	291,576

LOSSES AND EXPENSES:
Losses incurred	30,541	23,813	19,501
Acquisition and operating expenses, net of deferrals	50,094	55,325	50,934
Amortization of deferred acquisition costs and intangibles	2,429	2,522	2,259
Interest expense	12,291	12,262	12,961
Total losses and expenses	95,355	93,922	85,655

INCOME BEFORE INCOME TAXES	211,421	207,854	205,921
Provision for income taxes	45,643	45,116	44,933
NET INCOME	$165,778	$162,738	$160,988

Net investment (gains) losses	3,243	7,167	6,684
Costs associated with reorganization	629	411	(42)
Taxes on adjustments	(813)	(1,591)	(1,395)
Adjusted Operating Income	$168,837	$168,725	$166,235

Loss ratio ⁽¹⁾	12%	10%	8%
Expense ratio ⁽²⁾	21%	24%	22%
Earnings Per Share Data:
Net Income per share
Basic	$1.09	$1.06	$1.01
Diluted	$1.08	$1.05	$1.01
Adj operating income per share
Basic	$1.11	$1.10	$1.05
Diluted	$1.10	$1.09	$1.04
Weighted-average common shares outstanding
Basic	151,831	153,537	158,818
Diluted	152,907	154,542	160,087

⁽¹⁾ The ratio of losses incurred to net earned premiums.

⁽²⁾ The ratio of acquisition and operating expenses, net of deferrals, and amortization of deferred acquisition costs and intangibles to net earned premiums. Expenses associated with strategic transaction preparations and restructuring costs increased the expense ratio by zero percentage points for the three-month period ended March 31, 2025, one percentage point for the three-month period ended December 31, 2024, and zero percentage points for the three-month period ended March 31, 2024.

Exhibit B: Consolidated Balance Sheets (amounts in thousands, except per share amounts)

Assets	1Q25	4Q24	1Q24
Investments:
Fixed maturity securities available-for-sale, at fair value	$5,815,337	$5,624,773	$5,351,138
Short term investments	3,696	3,367	9,963
Total investments	5,819,033	5,628,140	5,361,101
Cash and cash equivalents	635,269	599,432	614,330
Accrued investment income	49,654	49,595	43,450
Deferred acquisition costs	23,322	23,771	24,861
Premiums receivable	46,451	53,031	43,927
Other assets	103,351	102,549	126,644
Deferred tax asset	44,440	65,013	89,370
Total assets	$6,721,520	$6,521,531	$6,303,683

Liabilities and Shareholders’ Equity
Liabilities:
Loss reserves	$542,528	$524,715	$531,443
Unearned premiums	107,519	114,680	138,886
Other liabilities	208,667	142,990	173,500
Long-term borrowings	743,399	743,050	746,090
Total liabilities	1,602,113	1,525,435	1,589,919
Equity:
Common stock	1,508	1,523	1,577
Additional paid-in capital	2,007,776	2,076,788	2,264,198
Accumulated other comprehensive income	(152,482)	(207,455)	(237,477)
Retained earnings	3,262,605	3,125,240	2,685,466
Total equity	5,119,407	4,996,096	4,713,764
Total liabilities and equity	$6,721,520	$6,521,531	$6,303,683

Book value per share	$33.96	$32.80	$29.89
Book value per share excluding AOCI	$34.97	$34.16	$31.40

U.S. GAAP ROE ⁽¹⁾	13.1%	13.0%	13.8%
Net investment (gains) losses	0.3%	0.6%	0.6%
Costs associated with reorganization	0.0%	0.0%	0.0%
(Gains) losses on early extinguishment of debt	0.0%	0.0%	0.0%
Taxes on adjustments	(0.1)%	(0.1)%	(0.1)%
Adjusted Operating ROE⁽²⁾	13.4%	13.5%	14.2%

Debt to Capital Ratio	13%	13%	14%

⁽¹⁾ Calculated as annualized net income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity
⁽²⁾ Calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity

This press release was published by a CLEAR® Verified individual.

The MIL Network –

May 1, 2025

MIL-OSI: SEACOR Marine Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

HOUSTON, April 30, 2025 (GLOBE NEWSWIRE) — SEACOR Marine Holdings Inc. (NYSE: SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore energy facilities worldwide, today announced results for its first quarter ended March 31, 2025.

SEACOR Marine’s consolidated operating revenues for the first quarter of 2025 were $55.5 million, operating loss was $5.3 million, and direct vessel profit (“DVP”)⁽¹⁾ was $13.6 million. This compares to consolidated operating revenues of $62.8 million, operating loss of $10.6 million, and DVP of $14.7 million in the first quarter of 2024, and consolidated operating revenues of $69.8 million, operating income of $10.6 million, and DVP of $23.1 million in the fourth quarter of 2024.

Notable first quarter items include:

11.6% decrease in revenues from the first quarter of 2024 and a 20.5% decrease from the fourth quarter of 2024.
Average day rates of $18,825, a 1.1% decrease from the first quarter of 2024, and flat from the fourth quarter of 2024.
60% utilization, a decrease from 62% in the first quarter of 2024 and from 72% in the fourth quarter of 2024.
DVP margin of 24.5%, an increase from 23.4% in the first quarter of 2024 and a decrease from 33.1% in the fourth quarter of 2024, due in part to $5.2 million of drydocking and major repairs during the first quarter of 2025 compared to $8.5 million in the first quarter of 2024 and $3.5 million in the fourth quarter of 2024, all of which are expensed as incurred.
Completed the sale of one 2005 built liftboat which had been in long-term layup for total proceeds of $7.5 million and a gain of $5.6 million.
At the end of the first quarter of 2025, the Company had three vessels as held for sale, consisting of two platform supply vessels (“PSVs”) and one fast supply vessel (“FSV”). The sales of these vessels closed in April 2025 for total proceeds of $33.2 million and a gain of $20.6 million, and the proceeds were used to (a) fund the repurchase of shares and warrants from Carlyle and (b) partially fund the construction of two new PSVs scheduled to deliver in the fourth quarter of 2026 and first quarter of 2027.

For the first quarter of 2025, net loss was $15.5 million ($0.56 loss per basic and diluted share). This compares to a net loss for the first quarter of 2024 of $23.1 million ($0.84 loss per basic and diluted share). Sequentially, the first quarter 2025 results compare to a net loss of $26.2 million ($0.94 loss per basic and diluted share) in the fourth quarter of 2024. All per share calculations do not reflect the share and warrant repurchase that occurred on April 4, 2025 as further discussed below.

Chief Executive Officer John Gellert commented:

“The first quarter results reflect lower utilization during our seasonally low first quarter, as well as flat average rates compared to the last two quarters of 2024. We typically target maintenance, drydocking and repositioning activities during the first quarter to take advantage of seasonality. Such activities accounted for a higher percentage of our utilization loss this quarter compared to the first quarter of 2024, although the associated expenses were substantially down. Average rates held stable for a third consecutive quarter, despite continued market softness in the North Sea and the Gulf of America, as well as customer delays in Mexico.

We continue to see healthy tendering activity in international markets where SEACOR Marine is active, such as South America, West Africa and the Middle East. We have reduced our exposure in the North Sea, and will be closely monitoring our customer activity in the U.S., particularly in the decommissioning market in the Gulf of America, as we enter the seasonally higher quarters of the year.

As previously announced, on April 4, 2025, we repurchased shares and warrants representing 9.1% of the outstanding shares of common stock of the Company, assuming the full exercise of the warrants, from Carlyle. The aggregate purchase price was approximately $12.9 million. This was a unique opportunity to buy back a significant number of shares and warrants in a single block, and to simplify our capital structure by eliminating all outstanding warrants. We funded this repurchase with a portion of the proceeds from the sale of one PSV built in 2014 that was classified as held for sale at the end of the first quarter.

I am confident about SEACOR Marine’s positioning for the rest of 2025, even in an unpredictable macro environment. We have mostly rotated out of markets with high spot exposure and/or lower specification assets. We have a modern fleet, with additional high specification vessels scheduled to deliver in less than two years.”
___________________

(1)		Direct vessel profit (defined as operating revenues less operating costs and expenses, “DVP”) is the Company’s measure of segment profitability. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its regions, without regard to financing decisions (depreciation and interest expense for owned vessels vs. lease expense for lease vessels). DVP is also useful when comparing the Company’s global fleet performance against those of our competitors who may have differing fleet financing structures. DVP has material limitations as an analytical tool in that it does not reflect all of the costs associated with the ownership and operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP. See page 4 for reconciliation of DVP to GAAP Operating Income (Loss), its most comparable GAAP measure.

SEACOR Marine provides global marine and support transportation services to offshore energy facilities worldwide. SEACOR Marine operates and manages a diverse fleet of offshore support vessels that deliver cargo and personnel to offshore installations, including offshore wind farms; assist offshore operations for production and storage facilities; provide construction, well work-over, offshore wind farm installation and decommissioning support; and carry and launch equipment used underwater in drilling and well installation, maintenance, inspection and repair. Additionally, SEACOR Marine’s vessels provide emergency response services and accommodations for technicians and specialists.

Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by the management of the Company. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, many of which are beyond the Company’s control and are described in the Company’s filings with the SEC. It should be understood that it is not possible to predict or identify all such factors. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.
For all other requests, contact InvestorRelations@seacormarine.com

SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands, except share data)

	Three Months Ended March 31,
	2025			2024
Operating Revenues	$	55,499		$	62,770
Costs and Expenses:
Operating		41,928			48,099
Administrative and general		11,486			11,917
Lease expense		337			481
Depreciation and amortization		12,810			12,882
		66,561			73,379
Gains (Losses) on Asset Dispositions and Impairments, Net		5,809			(1	)
Operating Loss		(5,253	)		(10,610	)
Other Income (Expense):
Interest income		436			593
Interest expense		(9,586	)		(10,309	)
Derivative gains (losses), net		125			(543	)
Foreign currency losses, net		(1,196	)		(80	)
Other, net		—			(95	)
		(10,221	)		(10,434	)
Loss Before Income Tax Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies		(15,474	)		(21,044	)
Income Tax Expense		904			925
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies		(16,378	)		(21,969	)
Equity in Earnings (Losses) of 50% or Less Owned Companies		889			(1,100	)
Net Loss	$	(15,489	)	$	(23,069	)

Net Loss Per Share:
Basic	$	(0.56	)	$	(0.84	)
Diluted	$	(0.56	)	$	(0.84	)
Weighted Average Common Stock and Warrants Outstanding:
Basic		27,908,297			27,343,604
Diluted		27,908,297			27,343,604

SEACOR MARINE HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands, except statistics and per share data)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
Time Charter Statistics:
Average Rates Per Day	$	18,825		$	18,901		$	18,879		$	19,141		$	19,042
Fleet Utilization		60	%		72	%		67	%		69	%		62	%
Fleet Available Days ⁽²⁾		4,583			4,870			5,026			4,994			5,005
Operating Revenues:
Time charter	$	51,933		$	66,095		$	63,313		$	65,649		$	59,263
Bareboat charter		708			364			372			364			364
Other marine services		2,858			3,349			5,231			3,854			3,143
		55,499			69,808			68,916			69,867			62,770
Costs and Expenses:
Operating:
Personnel		18,537			20,365			21,940			21,566			21,670
Repairs and maintenance		8,520			10,433			9,945			10,244			9,763
Drydocking		3,869			2,467			6,068			6,210			6,706
Insurance and loss reserves		2,153			2,473			2,584			3,099			1,738
Fuel, lubes and supplies		4,546			4,884			6,574			3,966			4,523
Other		4,303			6,104			5,796			4,435			3,699
		41,928			46,726			52,907			49,520			48,099
Direct Vessel Profit ⁽¹⁾		13,571			23,082			16,009			20,347			14,671
Other Costs and Expenses:
Lease expense		337			347			364			486			481
Administrative and general		11,486			10,888			11,019			10,889			11,917
Depreciation and amortization		12,810			12,879			12,928			12,939			12,882
		24,633			24,114			24,311			24,314			25,280
Gains (Losses) on Asset Dispositions and Impairments, Net		5,809			11,624			1,821			37			(1	)
Operating (Loss) Income		(5,253	)		10,592			(6,481	)		(3,930	)		(10,610	)
Other Income (Expense):
Interest income		436			372			358			445			593
Interest expense		(9,586	)		(10,001	)		(10,127	)		(10,190	)		(10,309	)
Derivative gains (losses), net		125			(536	)		67			104			(543	)
Loss on debt extinguishment		—			(31,923	)		—			—			—
Foreign currency (losses) gains, net		(1,196	)		1,308			(1,717	)		(560	)		(80	)
Other, net		—			187			29			—			(95	)
		(10,221	)		(40,593	)		(11,390	)		(10,201	)		(10,434	)
Loss Before Income Tax Expense (Benefit) and Equity in Earnings (Losses) of 50% or Less Owned Companies		(15,474	)		(30,001	)		(17,871	)		(14,131	)		(21,044	)
Income Tax Expense (Benefit)		904			(2,345	)		(513	)		(682	)		925
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies		(16,378	)		(27,656	)		(17,358	)		(13,449	)		(21,969	)
Equity in Earnings (Losses) of 50% or Less Owned Companies		889			1,430			1,012			966			(1,100	)
Net Loss	$	(15,489	)	$	(26,226	)	$	(16,346	)	$	(12,483	)	$	(23,069	)

Net Loss Per Share:
Basic	$	(0.56	)	$	(0.94	)	$	(0.59	)	$	(0.45	)	$	(0.84	)
Diluted	$	(0.56	)	$	(0.94	)	$	(0.59	)	$	(0.45	)	$	(0.84	)
Weighted Average Common Stock and Warrants Outstanding:
Basic		27,908			27,773			27,773			27,729			27,344
Diluted		27,908			27,773			27,773			27,729			27,344
Common Shares and Warrants Outstanding at Period End		29,488			28,950			28,950			28,941			28,906

_______________
(1) See full description of footnote above.
(2) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT (in thousands, except statistics)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
*United States, primarily Gulf of America*
Time Charter Statistics:
Average rates per day worked	$	23,874		$	26,116		$	17,188		$	22,356		$	28,156
Fleet utilization		25	%		45	%		42	%		37	%		27	%
Fleet available days		1,121			920			920			921			927
Out-of-service days for repairs, maintenance and drydockings		153			75			116			179			137
Out-of-service days for cold-stacked status ⁽²⁾		173			184			175			127			182
Operating Revenues:
Time charter	$	6,765		$	10,744		$	6,593		$	7,697		$	6,957
Other marine services		235			1,114			1,188			480			1,026
		7,000			11,858			7,781			8,177			7,983
Direct Costs and Expenses:
Operating:
Personnel		6,486			6,097			6,297			6,284			5,781
Repairs and maintenance		1,479			1,680			1,655			1,879			1,404
Drydocking		1,066			1,451			2,615			2,570			1,968
Insurance and loss reserves		702			854			799			943			396
Fuel, lubes and supplies		819			854			964			866			667
Other		349			229			225			226			(171	)
		10,901			11,165			12,555			12,768			10,045
Direct Vessel (Loss) Profit ⁽¹⁾	$	(3,901	)	$	693		$	(4,774	)	$	(4,591	)	$	(2,062	)
Other Costs and Expenses:
Lease expense	$	136		$	136		$	140		$	141		$	138
Depreciation and amortization		3,705			3,196			3,194			3,194			2,750

*Africa and Europe*
Time Charter Statistics:
Average rates per day worked	$	17,294		$	16,895		$	18,875		$	18,580		$	15,197
Fleet utilization		70	%		73	%		77	%		74	%		76	%
Fleet available days		1,710			1,856			1,990			1,969			1,775
Out-of-service days for repairs, maintenance and drydockings		382			180			203			203			238
Out-of-service days for cold-stacked status		—			—			58			91			91
Operating Revenues:
Time charter	$	20,835		$	22,999		$	28,809		$	27,047		$	20,555
Other marine services		852			1,027			3,048			1,028			169
		21,687			24,026			31,857			28,075			20,724
Direct Costs and Expenses:
Operating:
Personnel		5,183			5,654			6,083			4,969			5,181
Repairs and maintenance		3,462			3,712			3,455			3,161			3,209
Drydocking		1,241			835			681			1,226			2,032
Insurance and loss reserves		594			577			599			819			334
Fuel, lubes and supplies		2,180			2,226			2,514			1,170			1,287
Other		2,727			3,748			3,975			2,801			2,199
		15,387			16,752			17,307			14,146			14,242
Direct Vessel Profit ⁽¹⁾	$	6,300		$	7,274		$	14,550		$	13,929		$	6,482
Other Costs and Expenses:
Lease expense	$	63		$	82		$	75		$	172		$	178
Depreciation and amortization		4,402			4,477			4,540			4,565			3,915

_______________
(1) See full description of footnote above.
(2) Includes one FSV cold-stacked in this region as of March 31, 2025.

SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT (continued) (in thousands, except statistics)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
*Middle East and Asia*
Time Charter Statistics:
Average rates per day worked	$	17,848		$	17,337		$	17,825		$	17,083		$	16,934
Fleet utilization		75	%		88	%		71	%		82	%		71	%
Fleet available days		1,170			1,266			1,288			1,296			1,365
Out-of-service days for repairs, maintenance and drydockings		82			30			229			168			224
Operating Revenues:
Time charter	$	15,710		$	19,385		$	16,411		$	18,073		$	16,477
Other marine services		292			635			375			619			350
		16,002			20,020			16,786			18,692			16,827
Direct Costs and Expenses:
Operating:
Personnel		4,927			5,470			5,769			6,930			5,963
Repairs and maintenance		2,505			3,574			3,318			3,443			2,712
Drydocking		1,031			(226	)		832			707			1,483
Insurance and loss reserves		702			804			927			798			618
Fuel, lubes and supplies		883			840			1,043			1,103			1,198
Other		881			1,305			1,131			989			1,000
		10,929			11,767			13,020			13,970			12,974
Direct Vessel Profit ⁽¹⁾	$	5,073		$	8,253		$	3,766		$	4,722		$	3,853
Other Costs and Expenses:
Lease expense	$	83		$	72		$	73		$	71		$	85
Depreciation and amortization		3,230			3,272			3,261			3,247			3,496

*Latin America*
Time Charter Statistics:
Average rates per day worked	$	22,084		$	21,390		$	21,984		$	22,437		$	28,308
Fleet utilization		67	%		73	%		63	%		71	%		58	%
Fleet available days ⁽²⁾		582			828			828			808			938
Out-of-service days for repairs, maintenance and drydockings		—			20			94			41			1
Operating Revenues:
Time charter	$	8,623		$	12,967		$	11,500		$	12,832		$	15,274
Bareboat charter		708			364			372			364			364
Other marine services		1,479			573			620			1,727			1,598
		10,810			13,904			12,492			14,923			17,236
Direct Costs and Expenses:
Operating:
Personnel		1,941			3,144			3,791			3,383			4,745
Repairs and maintenance		1,074			1,467			1,517			1,761			2,438
Drydocking		531			407			1,940			1,707			1,223
Insurance and loss reserves		155			238			259			539			390
Fuel, lubes and supplies		664			964			2,053			827			1,371
Other		346			822			465			419			671
		4,711			7,042			10,025			8,636			10,838
Direct Vessel Profit ⁽¹⁾	$	6,099		$	6,862		$	2,467		$	6,287		$	6,398
Other Costs and Expenses:
Lease expense	$	55		$	57		$	76		$	102		$	80
Depreciation and amortization		1,473			1,934			1,933			1,933			2,721

_______________
(1) See full description of footnote above.
(2) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

SEACOR MARINE HOLDINGS INC. UNAUDITED PERFORMANCE BY VESSEL CLASS (in thousands, except statistics)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
*AHTS*
Time Charter Statistics:
Average rates per day worked	$	—		$	10,410		$	10,316		$	8,125		$	8,538
Fleet utilization		—	%		79	%		46	%		49	%		75	%
Fleet available days		—			178			334			364			364
Out-of-service days for repairs, maintenance and drydockings		—			28			87			29			—
Out-of-service days for cold-stacked status		—			—			58			91			91
Operating Revenues:
Time charter	$	15		$	1,465		$	1,576		$	1,459		$	2,331
Other marine services		9			—			13			219			—
		24			1,465			1,589			1,678			2,331
Direct Costs and Expenses:
Operating:
Personnel	$	1		$	595		$	981		$	1,045		$	1,064
Repairs and maintenance		38			128			239			465			220
Drydocking		—			5			436			280			68
Insurance and loss reserves		—			49			66			97			43
Fuel, lubes and supplies		66			25			90			69			616
Other		12			210			263			230			287
		117			1,012			2,075			2,186			2,298
Other Costs and Expenses:
Lease expense	$	—		$	7		$	4		$	164		$	171
Depreciation and amortization		4			122			175			175			175

*FSV*
Time Charter Statistics:
Average rates per day worked	$	13,786		$	13,643		$	13,102		$	12,978		$	11,834
Fleet utilization		71	%		72	%		81	%		80	%		72	%
Fleet available days		1,980			2,024			2,024			2,002			2,002
Out-of-service days for repairs, maintenance and drydockings		135			118			96			128			216
Out-of-service days for cold-stacked status		90			92			83			36			91
Operating Revenues:
Time charter	$	19,357		$	19,992		$	21,606		$	20,698		$	17,081
Other marine services		762			416			1,012			516			126
		20,119			20,408			22,618			21,214			17,207
Direct Costs and Expenses:
Operating:
Personnel	$	4,933		$	5,078		$	5,637		$	5,829		$	5,649
Repairs and maintenance		2,983			4,480			4,378			4,572			3,093
Drydocking		353			426			448			457			1,869
Insurance and loss reserves		517			422			532			546			277
Fuel, lubes and supplies		1,173			1,586			1,962			993			1,051
Other		1,782			2,456			2,238			1,850			1,649
		11,741			14,448			15,195			14,247			13,588
Other Costs and Expenses:
Depreciation and amortization	$	4,932		$	4,746		$	4,744		$	4,746		$	4,744

SEACOR MARINE HOLDINGS INC. UNAUDITED PERFORMANCE BY VESSEL CLASS (continued) (in thousands, except statistics)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
*PSV*
Time Charter Statistics:
Average rates per day worked	$	19,424		$	17,912		$	21,819		$	20,952		$	19,133
Fleet utilization		55	%		72	%		58	%		66	%		53	%
Fleet available days ⁽¹⁾		1,890			1,932			1,932			1,900			1,911
Out-of-service days for repairs, maintenance and drydockings		396			117			349			291			307
Operating Revenues:
Time charter	$	20,286		$	24,865		$	24,488		$	26,390		$	19,390
Bareboat charter		708			364			372			364			364
Other marine services		508			1,561			2,855			2,266			416
		21,502			26,790			27,715			29,020			20,170
Direct Costs and Expenses:
Operating:
Personnel	$	8,351		$	8,999		$	9,360		$	8,979		$	8,850
Repairs and maintenance		3,949			4,101			3,798			3,151			4,393
Drydocking		2,513			1,046			2,629			2,616			3,386
Insurance and loss reserves		631			618			636			1,037			395
Fuel, lubes and supplies		2,594			2,379			3,594			1,575			1,889
Other		2,018			2,566			2,821			1,850			1,395
		20,056			19,709			22,838			19,208			20,308
Other Costs and Expenses:
Lease expense	$	—		$	—		$	(3	)	$	3		$	—
Depreciation and amortization		4,133			4,122			4,117			4,128			4,073

_______________
(1) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

SEACOR MARINE HOLDINGS INC. UNAUDITED PERFORMANCE BY VESSEL CLASS (continued) (in thousands, except statistics)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
*Liftboats*
Time Charter Statistics:
Average rates per day worked	$	39,559		$	39,326		$	36,423		$	43,204		$	53,506
Fleet utilization		44	%		68	%		58	%		54	%		53	%
Fleet available days		713			736			736			728			728
Out-of-service days for repairs, maintenance and drydockings		87			41			109			143			78
Out-of-service days for cold-stacked status		83			92			92			91			91
Operating Revenues:
Time charter	$	12,275		$	19,773		$	15,643		$	17,102		$	20,461
Other marine services		1,289			1,177			1,142			666			1,772
		13,564			20,950			16,785			17,768			22,233
Direct Costs and Expenses:
Operating:
Personnel	$	5,247		$	5,678		$	5,926		$	6,842		$	6,140
Repairs and maintenance		1,571			1,722			1,531			2,054			2,035
Drydocking		1,003			990			2,555			2,857			1,383
Insurance and loss reserves		1,241			1,384			1,334			1,482			1,282
Fuel, lubes and supplies		712			894			928			1,329			967
Other		482			860			473			519			343
		10,256			11,528			12,747			15,083			12,150
Other Costs and Expenses:
Depreciation and amortization		3,719			3,866			3,866			3,865			3,866

*Other Activity*
Operating Revenues:
Other marine services	$	290		$	195		$	209		$	187		$	829
		290			195			209			187			829
Direct Costs and Expenses:
Operating:
Personnel	$	5		$	15		$	36		$	(1,129	)	$	(33	)
Repairs and maintenance		(21	)		2			(1	)		2			22
Insurance and loss reserves		(236	)		—			16			(63	)		(259	)
Fuel, lubes and supplies		1			—			—			—			—
Other		9			12			1			(14	)		25
		(242	)		29			52			(1,204	)		(245	)
Other Costs and Expenses:
Lease expense	$	337		$	340		$	363		$	319		$	310
Depreciation and amortization		22			23			26			25			24

SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)

	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	42,988		$	59,491		$	35,601		$	40,605		$	59,593
Restricted cash		2,440			16,649			2,263			2,255			2,566
Receivables:
Trade, net of allowance for credit loss		63,946			69,888			76,497			70,770			58,272
Other		8,811			7,913			7,841			6,210			12,210
Tax receivable		1,602			1,601			983			983			983
Inventories		2,827			2,760			3,139			3,117			2,516
Prepaid expenses and other		6,075			4,406			4,840			5,659			3,425
Assets held for sale		12,195			10,943			—			500			500
Total current assets		140,884			173,651			131,164			130,099			140,065
Property and Equipment:
Historical cost		881,961			900,414			921,445			921,443			919,139
Accumulated depreciation		(365,422	)		(367,448	)		(362,604	)		(349,799	)		(337,001	)
		516,539			532,966			558,841			571,644			582,138
Construction in progress		27,248			11,904			11,935			11,518			13,410
Net property and equipment		543,787			544,870			570,776			583,162			595,548
Right-of-use asset – operating leases		3,293			3,436			3,575			3,683			3,988
Right-of-use asset – finance leases		28			36			19			28			29
Investments, at equity, and advances to 50% or less owned companies		4,507			3,541			2,046			2,641			3,122
Other assets		1,665			1,577			1,864			1,953			2,094
Total assets	$	694,164		$	727,111		$	709,444		$	721,566		$	744,846
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of operating lease liabilities	$	540		$	606		$	494		$	861		$	1,285
Current portion of finance lease liabilities		11			17			17			26			33
Current portion of long-term debt		30,000			27,500			28,605			28,605			28,605
Accounts payable		28,445			29,236			22,744			17,790			23,453
Other current liabilities		16,414			27,683			28,808			23,795			21,067
Total current liabilities		75,410			85,042			80,668			71,077			74,443
Long-term operating lease liabilities		2,926			2,982			3,221			3,276			3,390
Long-term finance lease liabilities		17			20			4			5			—
Long-term debt		310,108			317,339			272,325			277,740			281,989
Deferred income taxes		20,312			22,037			26,802			30,083			33,873
Deferred gains and other liabilities		1,356			1,369			1,416			1,447			2,285
Total liabilities		410,129			428,789			384,436			383,628			395,980
Equity:
SEACOR Marine Holdings Inc. stockholders’ equity:
Common stock		293			287			287			286			286
Additional paid-in capital		480,904			479,283			477,661			476,020			474,433
Accumulated deficit		(196,089	)		(180,600	)		(154,374	)		(138,028	)		(125,609	)
Shares held in treasury		(9,628	)		(8,110	)		(8,110	)		(8,110	)		(8,071	)
Accumulated other comprehensive income, net of tax		8,234			7,141			9,223			7,449			7,506
		283,714			298,001			324,687			337,617			348,545
Noncontrolling interests in subsidiaries		321			321			321			321			321
Total equity		284,035			298,322			325,008			337,938			348,866
Total liabilities and equity	$	694,164		$	727,111		$	709,444		$	721,566		$	744,846

SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)

				Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
Cash Flows from Operating Activities:
Net Loss	$	(15,489	)	$	(26,226	)	$	(16,346	)	$	(12,483	)	$	(23,069	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		12,810			12,879			12,928			12,939			12,882
Deferred financing costs amortization		43			254			298			297			295
Stock-based compensation expense		1,627			1,622			1,604			1,587			1,645
Debt discount amortization		226			1,799			2,061			1,993			1,926
Allowance for credit losses		(407	)		59			101			39			3
(Gains) losses from equipment sales, retirements or impairments		(5,809	)		(11,624	)		(1,821	)		(37	)		1
Losses on debt extinguishment		—			28,252			—			—			—
Derivative (gains) losses		(125	)		536			(67	)		(104	)		543
Interest on finance lease		1			2			—			1			—
Settlements on derivative transactions, net		(373	)		—			—			—			164
Currency losses (gains)		1,196			(1,308	)		1,717			560			80
Deferred income taxes		(1,725	)		(4,766	)		(3,281	)		(3,790	)		(1,845	)
Equity (earnings) losses		(889	)		(1,430	)		(1,012	)		(966	)		1,100
Dividends received from equity investees		—			—			1,498			1,418			—
Changes in Operating Assets and Liabilities:
Accounts receivables		5,333			5,448			(7,411	)		(6,928	)		4,291
Other assets		(1,681	)		1,338			1,032			(2,395	)		(1,290	)
Accounts payable and accrued liabilities		(6,204	)		1,693			9,325			(4,378	)		(3,895	)
Net cash (used in) provided by operating activities		(11,466	)		8,528			626			(12,247	)		(7,169	)
Cash Flows from Investing Activities:
Purchases of property and equipment		(20,795	)		(3,010	)		(210	)		(658	)		(3,416	)
Proceeds from disposition of property and equipment		8,472			22,441			2,331			86			—
Net cash (used in) provided by investing activities		(12,323	)		19,431			2,121			(572	)		(3,416	)
Cash Flows from Financing Activities:
Payments on long-term debt		(5,000	)		(2,479	)		(7,770	)		(6,533	)		(7,530	)
Payments on debt extinguishment		—			(328,712	)		—			—			—
Payments on debt extinguishment cost		—			(3,671	)		—			—			—
Proceeds from issuance of long-term debt, net of debt discount and issuance costs		(396	)		345,192			—			—			—
Payments on finance leases		(9	)		(13	)		(10	)		(9	)		(9	)
Proceeds from exercise of stock options and warrants		—			—			38			102			—
Tax withholdings on restricted stock vesting		(1,518	)		—			—			(39	)		(3,850	)
Net cash (used in) provided by financing activities		(6,923	)		10,317			(7,742	)		(6,479	)		(11,389	)
Effects of Exchange Rate Changes on Cash, Restricted Cash and Cash Equivalents		—			—			(1	)		(1	)		2
Net Change in Cash, Restricted Cash and Cash Equivalents		(30,712	)		38,276			(4,996	)		(19,299	)		(21,972	)
Cash, Restricted Cash and Cash Equivalents, Beginning of Period		76,140			37,864			42,860			62,159			84,131
Cash, Restricted Cash and Cash Equivalents, End of Period	$	45,428		$	76,140		$	37,864		$	42,860		$	62,159

SEACOR MARINE HOLDINGS INC. UNAUDITED FLEET COUNTS

	Owned		Managed		Total
March 31, 2025
AHTS		—		2		2
FSV		22		1		23
PSV		21		—		21
Liftboats		7		—		7
		50		3		53
December 31, 2024
AHTS		—		2		2
FSV		22		1		23
PSV		21		—		21
Liftboats		8		—		8
		51		3		54

The MIL Network –

May 1, 2025

MIL-OSI Security: Cherokee, Iowa, Man Pleads Guilty to Possession of Child Pornography

Source: Office of United States Attorneys

Roger Strickland, age 62, from Cherokee, Iowa, pled guilty on April 25, 2025, to two counts of possession of child pornography in federal court in Sioux City, Iowa.

Evidence at the plea hearing showed that from June 2022, through May 2023, Strickland received and possessed child pornography. Agents searched Strickland’s home on May 25, 2023, and seized several pieces of evidence. Agents asked to speak to whomever at the home was downloading child pornography and Strickland replied, “It’s me.” Then, while agents were awaiting results of the forensic analysis of Strickland’s electronic devices, law enforcement was again notified Strickland was receiving and possessing child pornography. Strickland admitted that between August 2023, through February 2024, Strickland received and possessed more child pornography despite knowing he was actively being investigated. In total, over 225 videos and 8,000 images of child pornography were discovered on his electronic devices. Strickland further admitted that the images and videos involved material portraying sadistic or masochistic conduct as well as prepubescent children, infants, and toddlers.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Strickland remains in custody of the U.S. Marshals Service pending sentencing. On each count, Strickland faces a possible maximum sentence of not more than 20 years’ imprisonment, a $250,000 fine, and at least five years of supervised release following any imprisonment.

The case was investigated by the Iowa Division of Criminal Investigation and the Cherokee Police Department and is being prosecuted by Assistant United States Attorney Kraig R. Hamit.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

The case file number is CR24-4067. Follow us on X @USAO_NDIA.

MIL Security OSI –

May 1, 2025

MIL-OSI Security: Former Teacher Pleads Guilty to Sexual Exploitation of Student

Source: Office of United States Attorneys

Samantha Meyer-Davis, 32, from Rutland, Iowa, pled guilty in federal court April 30, 2025, to sexual exploitation of a child.

At the plea hearing, Meyer-Davis admitted that from May 2022, through November 2023, she was engaged in sexually exploiting a student as well as disseminating and exhibiting obscene materials to the victim. Meyer-Davis was a middle school teacher at the time of the incidents and met with school administrators on several occasions and denied any inappropriate relationship. Administrators reminded Meyer-Davis of her professional and ethical obligations to her students and encouraged her to cease and desist any inappropriate relationship with the student. When interviewed by law enforcement, Meyer-Davis continued to deny any inappropriate relationship until she was confronted with photographic evidence of her kissing the student who was in a state of undress. Evidence further showed that Meyer-Davis and the victim exchanged over 130 photographs, and over 60 videos related to and depicting child pornography, including materials that portrayed sadistic and masochistic conduct.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Meyer-Davis remains in custody of the United States Marshal pending sentencing. Meyer-Davis faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, a $250,000 fine, and at least five years of supervised release following any imprisonment.

The case was investigated by the Iowa Division of Criminal Investigation, Iowa Division of Narcotics Enforcement, Iowa Special Enforcement Operations Bureau, and the Humboldt County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Kraig R. Hamit.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 24-3028. Follow us on X @USAO_NDIA.

MIL Security OSI –

May 1, 2025

MIL-OSI Security: Fort Hall Man Sentenced to 100 Months in Federal Prison for Fentanyl Distribution

Source: Office of United States Attorneys

POCATELLO – Creston Dale Kindness, 42, of Fort Hall, was sentenced to 100 months in federal prison for possession with intent to distribute fentanyl, Acting U.S. Attorney Justin Whatcott announced today.

According to court records, on January 21, 2024, officers observed Kindness driving at a high rate of speed. A lengthy pursuit followed, and the vehicle stopped when it became stuck in the snow. Officers arrested Kindness and took him to jail. At the jail, a sheriff’s deputy observed Kindness make a video call to a female friend. Kindness told the friend that he threw a bag with her name on it out of the car window during the pursuit. Kindness gave her the location and told her to go get the bag. Officers responded and found the bag. The bag contained a large amount of cash and 350 grams of fentanyl pills.

Kindness pleaded guilty to possession with intent to distribute fentanyl on June 24, 2024. Chief U.S. District Judge David C. Nye also ordered Kindness to serve five years of supervised release following his prison sentence.

Acting U.S. Attorney Whatcott commended the work of the Federal Bureau of Investigation, the Bingham County Sheriff’s Office, the Bingham, Blackfoot, Shelley Investigation Unit, the Bannock County Sheriff’s Office, the Fort Hall Police Department, and the Idaho State Police. Assistant U.S. Attorney Jack Haycock prosecuted the case.

###

MIL Security OSI –

May 1, 2025

MIL-OSI Security: Mason City Man Pleads Guilty to Possession of Child Pornography

Source: Office of United States Attorneys

Cleon Mitchell, Jr., 46, from Mason City, Iowa, pled guilty April 30, 2025, in federal court in Sioux City to possession of child pornography.

At the plea hearing, Mitchell admitted that from August 2022, through April 2024, he used the Kik and Snapchat applications to receive and possess visual depictions of child pornography which involved a prepubescent minor or minor under the age of 12. Snapchat reported Mitchell’s account to the National Center for Missing and Exploited Children who in turn reported the information to law enforcement. Law enforcement connected the account back to Mitchell and obtained a search warrant for his home and electronics. During the execution of the search warrant, Mitchell admitted he had received and possessed child pornography, and it would be located on his phone. Forensic analysis of his electronics showed that Mitchell possessed 30 videos and 50 images of child pornography including materials that portrayed sadistic or masochistic conduct as well as prepubescent children and toddlers.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Mitchell, Jr. remains in custody of the United States Marshal pending sentencing. Mitchell, Jr. faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and at least five years of supervised release following any imprisonment.

The case was investigated by the Mason City Police Department and the Iowa Division of Criminal Investigations and is being prosecuted by Assistant United States Attorney Kraig R. Hamit.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 24-3038. Follow us on X @USAO_NDIA.

MIL Security OSI –

May 1, 2025

MIL-OSI Security: BATON ROUGE MAN SENTENCING TO 57 MONTHS IN FEDERAL PRISON FOR POSSESSION OF CHILD PORNOGRAPHY

Source: Office of United States Attorneys

Acting United States Attorney April M. Leon announced that U.S. District Judge John W. deGravelles sentenced James S. Burland, age 70, of Baton Rouge, Louisiana, to 57 months in federal prison following his conviction for possession of child pornography. Burland must serve five years of supervised release upon completing his term of imprisonment. The Court also ordered Burland to pay a $5,000 special assessment pursuant to the Justice for Victims of Trafficking Act and ordered him to register as a sex offender upon his release.

In announcing the sentence, the Court described Burland’s possession of 565 images of child pornography, to include images that depicted prepubescent minors and minors under the age of 12, as serious and troubling conduct.

According to admissions made during his plea, on November 11, 2022, Burland uploaded a file containing an image of child pornography to his internet-based cloud storage account. A subsequent investigation identified that between that date and April 9, 2024, Burland possessed at least 173 additional files containing images of child pornography in his internet-based cloud storage account and on some of his personal computers and storage devices.

This matter was investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, Louisiana Bureau of Investigation, Office of the Attorney General, and was prosecuted by Assistant United States Attorney Paul L. Pugliese.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

MIL Security OSI –

May 1, 2025

MIL-OSI: Admiral Markets AS audited annual report 2024

Source: GlobeNewswire (MIL-OSI)

Admiral Markets AS audited annual report 2024

Despite lower client activity, Admirals Markets AS delivered resilient trading income and positive net profit through effective cost control measures.

Net trading income increased by 48% to EUR 13.5 million (2023: EUR 9.1 million) being supported by higher volatility on the financial markets.

Total operating expenses decreased by 26% to EUR 13.7 million (2023: EUR 18.5 million).

EBITDA was EUR 1.1 million (2023: EUR -6.9 million).

Net profit was EUR 0.4 million (2023: EUR -8.2 million).

Although the income was supported by higher volatility in financial markets, Admirals Group’s cost optimisation effort was partly muted due to voluntary suspension of new client registrations in the Cyprus based operating company Admirals Europe Ltd. This company acts as the primary service entity of the Group in the EU which is one of the core markets for the Group’s business. The suspension started in April 2024 is voluntary and temporary in nature and it was necessary to allow for the implementation of required technical and organisational measures to ensure satisfactory alignment of Group’s product governance efforts with objectives and needs of it’s European clients. Following the successful completion of these measures, the onboarding of new clients in the EU was resumed in March 2025.

Statement of Financial Position

(in thousands of euros)	31.12.2024	31.12.2023
Assets
Due from credit institutions	19,381	10,175
Due from investment companies	13,362	9,014
Financial assets at fair value through profit or loss	1,602	6,353
Loans and receivables	29,231	37,274
Inventories	665	311
Other assets	650	970
Investment into subsidiaries	4,180	4,180
Tangible fixed assets	1,041	1,494
Right-of-use asset	1,757	2,221
Intangible fixed assets	2,821	2,943
Total assets	74,690	74,935

Liabilities
Financial liabilities at fair value through profit or loss	333	217
Liabilities and prepayments	744	980
Subordinated debt securities	1,347	1,353
Lease liabilities	2,025	2,499
Total liabilities	4,449	5,049

Equity
Share capital	2,586	2,586
Statutory reserve capital	259	259
Retained earnings	67,396	67,041
Total equity	70,241	69,886
Total liabilities and equity	74,690	74,935

Statement of Comprehensive Income

(in thousands of euros)	2024	2023
Net gains from trading of financial assets at fair value through profit or loss with clients and liquidity providers	37,435	41,777
Brokerage and commission fee revenue	1,062	1,668
Brokerage and commission fee expense	-25,451	-34,656
Other trading activity related income	418	339
Net income from trading	13,464	9,128
Other income similar to interest	85	172
Interest income calculated using the effective interest method	1,366	1,044
Interest expense	-155	-184
Other income	433	877
Other expense	0	10
Net gains on exchange rate changes	198	-214
Net loss from financial assets at fair value through profit or loss	-1,358	61
Personnel expenses	-4,019	-4,634
Operating expenses	-7,642	-12,168
Depreciation of tangible and intangible assets	-1,532	-1,259
Depreciation of right-of-use assets	-485	-484
(Loss) / Profit before income tax	355	-7,651
Income tax	0	-535
Net (loss) / profit for the reporting period	355	-8,186
Comprehensive income for the reporting period	355	-8,186
Basic and diluted earnings per share	0.88	-20.26

Additional information:

Lauri Reinberg
Chief financial officer of Admirals Group AS
lauri.reinberg@admiralmarkets.com
+372 6309 300
https://www.admirals.group/

Attachments

The MIL Network –

May 1, 2025

MIL-OSI: OTC Markets Group Announces First Quarter 2025 Earnings Conference Call and Webcast

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) — OTC Markets Group Inc. (OTCQX: OTCM) today announced it will report its financial results for the first quarter ended March 31, 2025, after the close of the U.S. capital markets on Wednesday, May 7, 2025.

In addition, OTC Markets Group will host a conference call and webcast on Thursday, May 8, 2025, at 8:30 a.m. eastern time, during which management will discuss the financial results in further detail.

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

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

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

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

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

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

www.otcmarkets.com/investor-relations/overview.

About OTC Markets Group Inc.

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

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

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

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

Investor Contact:

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

Media Contact:

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

The MIL Network –

May 1, 2025

MIL-OSI: Medallion Bank Reports 2025 First Quarter Results and Declares Series F Preferred Stock Dividend

Source: GlobeNewswire (MIL-OSI)

SALT LAKE CITY, April 30, 2025 (GLOBE NEWSWIRE) — Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners, announced today its results for the quarter ended March 31, 2025. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

2025 First Quarter Highlights

Net income of $15.6 million, compared to $14.5 million in the prior year quarter.
Net interest income of $52.2 million, compared to $48.2 million in the prior year quarter.
Net interest margin of 8.35%, compared to 8.59% in the prior year quarter.
Total provision for credit losses was $19.0 million, compared to $17.0 million in the prior year quarter.
Annualized net charge-offs were 3.41% of average loans outstanding, compared to 3.38% in the prior year quarter.
Annualized return on assets and return on equity were 2.51% and 16.49%, respectively, compared to 2.59% and 16.47%, respectively, for the prior year period.
The total loan portfolio grew 6% from March 31, 2024 to $2.2 billion as of March 31, 2025.
Total assets were $2.5 billion and the Tier 1 leverage ratio was 16.0% at March 31, 2025.

Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “Our performance was strong in the first quarter. Our earnings were $15.6 million, which was 8% higher than the prior year quarter and in line with the fourth quarter 2024. Economic uncertainty reduced demand in both recreation and home improvement lending, while strategic partnership volumes grew to $136 million from $124 million in the fourth quarter as those relationships continued to mature. Charge-offs and delinquencies were down from their year-end peaks, but given recent market volatility, and potential tariff and economic changes, we added qualitative factors to our reserve that increased credit loss provisions. Following the end of the quarter, we completed an initial sale of $53 million in recreation loans at a premium to par value. We were pleased with the execution of this sale and continue to monitor the market for potential loan sale opportunities. Overall, we view the quarter as a good mix of conservative origination volume and improving credit performance to start 2025.”

Recreation Lending Segment

Excluding loans held for sale, the Bank’s recreation loan portfolio grew 5% to $1.432 billion as of March 31, 2025, compared to $1.365 billion at March 31, 2024. Loan originations were $86.8 million, compared to $105.8 million in the prior year quarter.
Recreation loans were 64% of loans receivable as of March 31, 2025, essentially unchanged from 64% at March 31, 2024.
Net interest income was $39.2 million, compared to $35.6 million in the prior year quarter.
Delinquencies 30 days or more past due were $68.2 million, or 4.76%, of recreation loans as of March 31, 2025, compared to $55.5 million, or 4.06%, at March 31, 2024.
Annualized net charge-offs were 4.67% of average recreation loans outstanding, compared to 4.36% in the prior year quarter.
The provision for recreation credit losses was $16.9 million and the allowance for credit losses was 5.00% of the outstanding balance, compared to $17.0 million and 4.40% of the outstanding balance in the prior year quarter.

Home Improvement Lending Segment

The Bank’s home improvement loan portfolio grew 8% to $812.4 million as of March 31, 2025, compared to $752.3 million at March 31, 2024. Loan originations were $48.8 million, compared to $51.6 million in the prior year quarter.
Home improvement loans were 36% of loans receivable as of March 31, 2025, compared to 35% at March 31, 2024.
Net interest income was $13.3 million, compared to $12.4 million in the prior year quarter.
Delinquencies 30 days or more past due were $8.3 million, or 1.02%, of home improvement loans as of March 31, 2025, compared to $6.5 million, or 0.87%, at March 31, 2024.
Annualized net charge-offs were 1.55% of average home improvement loans outstanding, compared to 2.12% in the prior year quarter.
The provision for home improvement credit losses was $2.8 million and the allowance for credit losses was 2.49% of the outstanding balance, compared to $0.9 million and 2.38% of the outstanding balance in the prior year quarter.

Series F Preferred Stock Dividend

On April 24, 2025, the Bank’s Board of Directors declared a quarterly cash dividend of $0.67982 per share on the Bank’s Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, which trades on the Nasdaq Capital Market under the ticker symbol “MBNKP.” The dividend is based on the dividend rate of 10.75761%, as determined by the Bank’s calculation agent, and is payable on July 1, 2025, to holders of record at the close of business on June 16, 2025.

About Medallion Bank

Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

For more information, visit www.medallionbank.com

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales (including loan sales), net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “remains,” “anticipated,” “continue,” “expect,” “may,” “maintain,” “potential” or the negative versions of these words or other comparable words or phrases of a future or forward-looking nature. These statements may relate to our future earnings, returns, capital levels, sources of funding, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank’s actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year ended December 31, 2024, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank’s website. Medallion Bank’s financial results for any period are not necessarily indicative of Medallion Financial Corp.’s results for the same period.

Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com

MEDALLION BANK STATEMENTS OF OPERATIONS (UNAUDITED)
	Three Months Ended March 31,
(In thousands)		2025		2024
Interest income
Loan interest including fees	$	70,617	$	61,424
Investments		1,217		1,544
Total interest income		71,834		62,968
Interest expense		19,617		14,753
Net interest income		52,217		48,215
Provision for credit losses		19,038		17,002
Net interest income after provision for credit losses		33,179		31,213
Other non-interest income		1,681		602
Non-interest expense
Salaries and benefits		5,348		4,984
Loan servicing		3,154		2,867
Collection costs		1,492		1,404
Regulatory fees		821		977
Professional fees		610		432
Information technology		322		267
Occupancy and equipment		727		207
Other		910		752
Total non-interest expense		13,384		11,890
Income before income taxes		21,476		19,925
Provision for income taxes		5,837		5,445
Net income	$	15,639	$	14,480
Less: Preferred stock dividends		1,512		1,512
Net income attributable to common shareholder	$	14,127	$	12,968

MEDALLION BANK
BALANCE SHEETS

	(UNAUDITED)						(UNAUDITED)

(In thousands)	March 31, 2025			December 31, 2024			March 31, 2024
Assets
Cash and federal funds sold	$	115,108		$	126,196		$	136,705
Investment securities, available-for-sale		60,424			54,805			53,038
Loans held for sale, at the lower of amortized cost or fair value		124,733			128,226			—

Loan receivables, inclusive of net deferred loan acquisition cost and fees		2,243,991			2,249,614			2,121,180
Allowance for credit losses		(91,807	)		(91,638	)		(78,648	)
Loans, net		2,152,184			2,157,976			2,042,532
Loan collateral in process of foreclosure		3,174			3,326			3,263
Fixed assets and right-of-use lease assets, net		8,543			9,126			8,417
Deferred tax assets		13,860			14,036			12,500
Accrued interest receivable		14,339			15,083			13,405
Other assets		38,598			40,325			36,656
Total assets	$	2,530,963		$	2,549,099		$	2,306,516
Liabilities and Shareholders’ Equity
Liabilities
Deposits and other funds borrowed	$	2,087,828		$	2,125,071		$	1,899,061
Accrued interest payable		4,557			5,586			4,191
Income tax payable		23,853			17,951			26,336
Other liabilities		22,702			17,204			17,837
Due to affiliates		881			910			481
Total liabilities		2,139,821			2,166,722			1,947,906
Shareholder’s Equity
Series E Preferred stock		26,303			26,303			26,303
Series F Preferred stock		42,485			42,485			42,485
Common stock		1,000			1,000			1,000
Additional paid in capital		77,500			77,500			77,500
Accumulated other comprehensive loss, net of tax		(3,842	)		(4,480	)		(4,680	)
Retained earnings		247,696			239,569			216,002
Total shareholders’ equity		391,142			382,377			358,610
Total liabilities and shareholders’ equity	$	2,530,963		$	2,549,099		$	2,306,516

The MIL Network –

May 1, 2025

MIL-OSI: FormFactor, Inc. Reports 2025 First Quarter Results

Source: GlobeNewswire (MIL-OSI)

LIVERMORE, Calif., April 30, 2025 (GLOBE NEWSWIRE) — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the first quarter of fiscal 2025 ended March 29, 2025. Quarterly revenues were $171.4 million, a decrease of 9.6% compared to $189.5 million in the fourth quarter of fiscal 2024, and an increase of 1.6% from $168.7 million in the first quarter of fiscal 2024.

Foundry & Logic first-quarter demand increased low single digits sequentially
Experienced reduction in DRAM as export controls limited FormFactor’s ability to ship probe cards for advanced node designs to China
Closed acquisition of minority interest in FICT Limited, a key supplier of advanced probe card components

“As expected, FormFactor reported sequentially lower first-quarter revenue and profitability due to anticipated reductions in demand for both DRAM probe cards and Systems,” said Mike Slessor, CEO of FormFactor, Inc. “Longer-term, we remain confident in the growth prospects for FormFactor and the semiconductor industry overall, driven by the fundamental trends of Advanced Packaging, High-Bandwidth-Memory, and Co-Packaged Optics.”

The company also announced that its Board of Directors has authorized a $75 million stock repurchase plan. This new stock repurchase authorization will expire April 23, 2027, and may be suspended, modified or discontinued at any time. Under the new repurchase authorization, repurchases may be made both in the open market and through privately negotiated transactions.

First Quarter Highlights

On a GAAP basis, net income for the first quarter of fiscal 2025 was $6.4 million, or $0.08 per fully-diluted share, compared to net income for the fourth quarter of fiscal 2024 of $9.7 million, or $0.12 per fully-diluted share, and net income for the first quarter of fiscal 2024 of $21.8 million, or $0.28 per fully-diluted share. Gross margin for the first quarter of 2025 was 37.7%, compared with 38.8% in the fourth quarter of 2024, and 37.2% in the first quarter of 2024.

On a non-GAAP basis, net income for the first quarter of fiscal 2025 was $18.0 million, or $0.23 per fully-diluted share, compared to net income for the fourth quarter of fiscal 2024 of $21.3 million, or $0.27 per fully-diluted share, and net income for the first quarter of fiscal 2024 of $14.3 million, or $0.18 per fully-diluted share. On a non-GAAP basis, gross margin for the first quarter of 2025 was 39.2%, compared with 40.2% in the fourth quarter of 2024, and 38.7% in the first quarter of 2024.

A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below.

GAAP net cash provided by operating activities for the first quarter of fiscal 2025 was $23.5 million, compared to $35.9 million for the fourth quarter of fiscal 2024, and $33.0 million for the first quarter of fiscal 2024. Free cash flow for the first quarter of fiscal 2025 was $6.3 million, compared to free cash flow for the fourth quarter of fiscal 2024 of $28.8 million, and free cash flow for the first quarter of 2024 of $19.7 million. A reconciliation of net cash provided by operating activities to non-GAAP free cash flow is provided in the schedules included below.

Outlook

Dr. Slessor added, “Although our sequential growth outlook is tempered by the uncertainty created by the current tariff situation, we expect to deliver double-digit sequential revenue growth, with increases across all our major served markets and segments.”

For the second quarter ending June 28, 2025, FormFactor is providing the following outlook*:

	GAAP	Reconciling Items**		Non-GAAP
Revenue	$190 million +/- $5 million		—	$190 million +/- $5 million
Gross Margin	38.5% +/- 1.5%	$3 million		40% +/- 1.5%
Net income per diluted share	$0.18 +/- $0.04		$0.12	$0.30 +/- $0.04

_{*This outlook assumes consistent foreign currency rates.}
_{**Reconciling items are stock-based compensation, amortization of intangible assets and fixed asset fair value adjustments due to acquisitions, and restructuring charges, net of applicable income tax impacts.}

We posted our revenue breakdown by geographic region, by market segment and with customers with greater than 10% of total revenue on the Investor Relations section of our website at www.formfactor.com. We will conduct a conference call at 1:25 p.m. PT, or 4:25 p.m. ET, today.

The public is invited to listen to a live webcast of FormFactor’s conference call on the Investor Relations section of our website at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The replay will be available on the Investor Relations section of our website, www.formfactor.com.

Use of Non-GAAP Financial Information:

To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow, that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses, gains and losses. Reconciliations of the adjustments to GAAP results for the three and three months ended March 29, 2025, and for outlook provided before, as well as for the comparable periods of fiscal 2024, are provided below, and on the Investor Relations section of our website at www.formfactor.com. Information regarding the ways in which management uses non-GAAP financial information to evaluate its business, management’s reasons for using this non-GAAP financial information, and limitations associated with the use of non-GAAP financial information, is included under “About our Non-GAAP Financial Measures” following the tables below.

About FormFactor:

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

Forward-looking Statements:

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, and the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading “Outlook” above, market trends, conditions in and the growth of the semiconductor industry and the Company’s performance, and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” “continue,” and “prospect,” and the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in and impacts from export control, tariffs and other trade barriers; changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company’s realization of benefits from acquisitions; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as tariffs, military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.

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

FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited)

	Three Months Ended
	March 29, 2025		December 28, 2024		March 30, 2024
Revenues	$	171,356	$	189,483	$	168,725
Cost of revenues		106,833		115,903		105,987
Gross profit		64,523		73,580		62,738
Operating expenses:
Research and development		27,800		30,504		28,627
Selling, general and administrative		33,454		35,226		33,079
Total operating expenses		61,254		65,730		61,706
Gain on sale of business		—		—		20,271
Operating income		3,269		7,850		21,303
Interest income, net		3,317		3,472		3,156
Other income, net		890		617		520
Income before income taxes		7,476		11,939		24,979
Provision for income taxes		1,075		2,234		3,198
Net income	$	6,401	$	9,705	$	21,781
Net income per share:
Basic	$	0.08	$	0.13	$	0.28
Diluted	$	0.08	$	0.12	$	0.28
Weighted-average number of shares used in per share calculations:
Basic		77,345		77,267		77,452
Diluted		77,884		77,982		78,490

FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (In thousands, except per share amounts) (Unaudited)

	Three Months Ended
	March 29, 2025			December 28, 2024			March 30, 2024
GAAP Gross Profit	$	64,523		$	73,580		$	62,738
Adjustments:
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions		542			555			586
Stock-based compensation		2,005			1,944			1,928
Restructuring charges		60			32			44
Non-GAAP Gross Profit	$	67,130		$	76,111		$	65,296

GAAP Gross Margin		37.7	%		38.8	%		37.2	%
Adjustments:
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions		0.3	%		0.4	%		0.4	%
Stock-based compensation		1.2	%		1.0	%		1.1	%
Restructuring charges		—	%		—	%		—	%
Non-GAAP Gross Margin		39.2	%		40.2	%		38.7	%

GAAP operating expenses	$	61,254		$	65,730		$	61,706
Adjustments:
Amortization of intangibles		(191	)		(191	)		(191	)
Stock-based compensation		(7,791	)		(8,269	)		(8,477	)
Restructuring charges		(2,823	)		(371	)		(49	)
Costs related to sale and acquisition of businesses		(217	)		(1,689	)		(646	)
Non-GAAP operating expenses	$	50,232		$	55,210		$	52,343

GAAP operating income	$	3,269		$	7,850		$	21,303
Adjustments:
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions		733			746			777
Stock-based compensation		9,796			10,213			10,405
Restructuring charges		2,883			403			93
Gain on sale of business, net of cost related to sale and acquisition of businesses		217			1,689			(19,625	)
Non-GAAP operating income	$	16,898		$	20,901		$	12,953

FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (In thousands, except per share amounts) (Unaudited)

	Three Months Ended
	March 29, 2025			December 28, 2024			March 30, 2024
GAAP net income	$	6,401		$	9,705		$	21,781
Adjustments:
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions		733			746			777
Stock-based compensation		9,796			10,213			10,405
Restructuring charges		2,883			415			93
Gain on sale of business, net of cost related to sale and acquisition of businesses		217			1,689			(19,625	)
Income tax effect of non-GAAP adjustments		(2,026	)		(1,445	)		913
Non-GAAP net income	$	18,004		$	21,323		$	14,344

GAAP net income per share:
Basic	$	0.08		$	0.13		$	0.28
Diluted	$	0.08		$	0.12		$	0.28

Non-GAAP net income per share:
Basic	$	0.23		$	0.28		$	0.19
Diluted	$	0.23		$	0.27		$	0.18

FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

	Three Months Ended
	March 29, 2025			March 30, 2024
Cash flows from operating activities:
Net income	$	6,401		$	21,781
Selected adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		8,156			7,193
Amortization		674			640
Stock-based compensation expense		9,796			10,405
Provision for excess and obsolete inventories		2,879			3,146
Gain on sale of business		—			(20,271	)
Non-cash restructuring charges		2,102			—
Other activity impacting operating cash flows		(6,469	)		10,118
Net cash provided by operating activities		23,539			33,012
Cash flows from investing activities:
Acquisition of property, plant and equipment		(18,584	)		(13,436	)
Proceeds from sale of business		—			21,275
Purchase of equity investment		(67,156	)		—
Proceeds from (purchases of) marketable securities, net		1,080			(11,659	)
Net cash used in investing activities		(84,660	)		(3,820	)
Cash flows from financing activities:
Purchase of common stock through stock repurchase program		(22,135	)		(17,334	)
Proceeds from issuances of common stock		21,576			4,948
Principal repayments on term loans		(273	)		(266	)
Tax withholdings related to net share settlements of equity awards		(2,132	)		(1,840	)
Net cash used in financing activities		(2,964	)		(14,492	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		180			(1,592	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(63,905	)		13,108
Cash, cash equivalents and restricted cash, beginning of period		197,206			181,273
Cash, cash equivalents and restricted cash, end of period	$	133,301		$	194,381

FORMFACTOR, INC. RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW (In thousands) (Unaudited)

	Three Months Ended
	March 29, 2025			December 28, 2024			March 30, 2024
Net cash provided by operating activities	$	23,539		$	35,913		$	33,012
Adjustments:
Sale of business and acquisition related payments in working capital		1,221			506			47
Cash paid for interest		92			93			100
Capital expenditures		(18,584	)		(7,663	)		(13,436	)
Free cash flow	$	6,268		$	28,849		$	19,723

FORMFACTOR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	March 29, 2025			December 28, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	129,889		$	190,728
Marketable securities		169,099			169,295
Accounts receivable, net of allowance for credit losses		98,605			104,294
Inventories, net		109,965			101,676
Restricted cash		967			3,746
Prepaid expenses and other current assets		42,716			35,389
Total current assets		551,241			605,128
Restricted cash		2,445			2,732
Operating lease, right-of-use-assets		20,054			22,579
Property, plant and equipment, net of accumulated depreciation		208,317			210,230
Equity investment		68,667			—
Goodwill		199,700			199,171
Intangibles, net		9,681			10,355
Deferred tax assets		92,759			92,012
Other assets		3,303			4,008
Total assets	$	1,156,167		$	1,146,215

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	64,536		$	62,287
Accrued liabilities		34,909			43,742
Current portion of term loan, net of unamortized issuance costs		1,113			1,106
Deferred revenue		14,996			15,847
Operating lease liabilities		8,461			8,363
Total current liabilities		124,015			131,345
Term loan, less current portion, net of unamortized issuance costs		11,927			12,208
Long-term operating lease liabilities		15,980			17,550
Deferred grant		18,000			18,000
Other liabilities		20,371			19,344
Total liabilities		190,293			198,447

Stockholders’ equity:
Common stock		77			77
Additional paid-in capital		844,488			837,586
Accumulated other comprehensive loss		(6,037	)		(10,840	)
Accumulated income		127,346			120,945
Total stockholders’ equity		965,874			947,768
Total liabilities and stockholders’ equity	$	1,156,167		$	1,146,215

About our Non-GAAP Financial Measures:

We believe that the presentation of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow provides supplemental information that is important to understanding financial and business trends and other factors relating to our financial condition and results of operations. Non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income are among the primary indicators used by management as a basis for planning and forecasting future periods, and by management and our board of directors to determine whether our operating performance has met certain targets and thresholds. Management uses non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income when evaluating operating performance because it believes that the exclusion of the items indicated herein, for which the amounts or timing may vary significantly depending upon our activities and other factors, facilitates comparability of our operating performance from period to period. We use free cash flow to conduct and evaluate our business as an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. Many investors also prefer to track free cash flow, as opposed to only GAAP earnings. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures, and therefore it is important to view free cash flow as a complement to our entire consolidated statements of cash flows. We have chosen to provide this non-GAAP information to investors so they can analyze our operating results closer to the way that management does, and use this information in their assessment of our business and the valuation of our Company. We compute non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income, by adjusting GAAP net income, GAAP net income per basic and diluted share, GAAP gross profit, GAAP gross margin, GAAP operating expenses, and GAAP operating income to remove the impact of certain items and the tax effect, if applicable, of those adjustments. These non-GAAP measures are not in accordance with, or an alternative to, GAAP, and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income, net income per basic and diluted share, gross profit, gross margin, operating expenses, or operating income in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We may expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income should not be construed as an inference that these costs are unusual, infrequent or non-recurring. For more information on the non-GAAP adjustments, please see the table captioned “Non-GAAP Financial Measure Reconciliations” and “Reconciliation of Cash Provided by Operating Activities to non-GAAP Free Cash Flow” included in this press release.

Source: FormFactor, Inc.
FORM-F

The MIL Network –

May 1, 2025

MIL-OSI: Credit Acceptance Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Southfield, Michigan, April 30, 2025 (GLOBE NEWSWIRE) — Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $106.3 million, or $8.66 per diluted share, for the three months ended March 31, 2025. Adjusted net income, a non-GAAP financial measure, for the three months ended March 31, 2025 was $114.8 million, or $9.35 per diluted share. The following table summarizes our financial results:

(In millions, except per share data)	For the Three Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024
GAAP net income	$	106.3	$	151.9	$	64.3
GAAP net income per diluted share	$	8.66	$	12.26	$	5.08

Adjusted net income	$	114.8	$	126.0	$	117.4
Adjusted net income per diluted share	$	9.35	$	10.17	$	9.28

Our results and achievements for the first quarter of 2025 included the following:

A modest decline in forecasted collection rates, which decreased forecasted net cash flows from our loan portfolio by $20.9 million, or 0.2%, and slower forecasted net cash flow timing.
An 11.0% increase in the average balance of our loan portfolio from the first quarter of 2024 to $7.9 billion, which is our largest ever.
A decline in Consumer Loan assignment unit and dollar volumes of 10.1% and 15.5%, respectively, as compared to the first quarter of 2024.
The repurchase of approximately 329,000 shares, or 2.7% of the shares outstanding at the beginning of the quarter.
The enrollment of 1,617 new dealers with 10,789 active dealers during the quarter.
$68.0 million in dealer holdback and accelerated dealer holdback payments to dealers.
Maintained a strong liquidity position, with over $2.2 billion in unrestricted cash and cash equivalents and unused and available revolving lines of credit as of March 31, 2025.
Named a Top Workplaces USA award winner for the fifth year in a row, with a #2 ranking among companies of our size.

Consumer Loan Metrics

Dealers assign retail installment contracts (referred to as “Consumer Loans”) to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to maximize economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital, and the amount of capital invested.

We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our aggregated forecast of Consumer Loan collection rates as of March 31, 2025, with the aggregated forecasts as of December 31, 2024, and at the time of assignment, segmented by year of assignment:

	Forecasted Collection Percentage as of (1)						Current Forecast Variance from
Consumer Loan Assignment Year	March 31, 2025		December 31, 2024		Initial Forecast		December 31, 2024		Initial Forecast
2016	63.9	%	63.9	%	65.4	%	0.0	%	-1.5	%
2017	64.8	%	64.7	%	64.0	%	0.1	%	0.8	%
2018	65.5	%	65.5	%	63.6	%	0.0	%	1.9	%
2019	67.2	%	67.2	%	64.0	%	0.0	%	3.2	%
2020	67.9	%	67.7	%	63.4	%	0.2	%	4.5	%
2021	63.9	%	63.8	%	66.3	%	0.1	%	-2.4	%
2022	60.0	%	60.2	%	67.5	%	-0.2	%	-7.5	%
2023	64.3	%	64.3	%	67.5	%	0.0	%	-3.2	%
2024	66.3	%	66.5	%	67.2	%	-0.2	%	-0.9	%
2025	66.0	%	—		66.2	%	—		-0.2	%

^{(1) Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.}

For the three months ended March 31, 2025, forecasted collection rates improved for Consumer Loans assigned in 2020, declined for Consumer Loans assigned in 2022, 2024, and 2025, and were generally consistent with expectations at the start of the period for all other assignment years presented.

The changes to our forecast of future net cash flows from our Loan portfolio (forecasted collections less forecasted dealer holdback payments) for each of the last five quarters are shown in the following table:

(Dollars in millions)	Decrease in Forecasted Net Cash Flows
Three Months Ended	Total Loans		% Change from Forecast at Beginning of Period
March 31, 2024	$	(30.8)	-0.3	%
June 30, 2024		(189.3)	-1.7	%
September 30, 2024		(62.8)	-0.6	%
December 31, 2024		(31.1)	-0.3	%
March 31, 2025		(20.9)	-0.2	%

The following table presents information on Consumer Loan assignments for each of the last 10 years:

	Average					Total Assignment Volume
Consumer Loan Assignment Year	Consumer Loan (1)		Advance (2)		Initial Loan Term (in months)	Unit Volume	Dollar Volume (2) (in millions)
2016	$	18,218	$	7,976	53	330,710	$	2,635.5
2017		20,230		8,746	55	328,507		2,873.1
2018		22,158		9,635	57	373,329		3,595.8
2019		23,139		10,174	57	369,805		3,772.2
2020		24,262		10,656	59	341,967		3,641.2
2021		25,632		11,790	59	268,730		3,167.8
2022		27,242		12,924	60	280,467		3,625.3
2023		27,025		12,475	61	332,499		4,147.8
2024		26,497		11,961	61	386,126		4,618.4
2025 (3)		25,188		11,096	60	100,278		1,112.7

^{(1)   Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest.}
^{(2)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}
^{(3)   Represents activity for the three months ended March 31, 2025. Information in this table for each of the years prior to 2025 represents activity for all 12 months of that year.}

The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of March 31, 2025, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both dealer loans and purchased loans.

	Forecasted Collection % as of						Spread % as of
Consumer Loan Assignment Year	March 31, 2025		Initial Forecast		Advance % (1)		March 31, 2025		Initial Forecast		% of Forecast Realized (2)
2016	63.9	%	65.4	%	43.8	%	20.1	%	21.6	%	99.6	%
2017	64.8	%	64.0	%	43.2	%	21.6	%	20.8	%	99.3	%
2018	65.5	%	63.6	%	43.5	%	22.0	%	20.1	%	98.8	%
2019	67.2	%	64.0	%	44.0	%	23.2	%	20.0	%	97.5	%
2020	67.9	%	63.4	%	43.9	%	24.0	%	19.5	%	93.9	%
2021	63.9	%	66.3	%	46.0	%	17.9	%	20.3	%	86.3	%
2022	60.0	%	67.5	%	47.4	%	12.6	%	20.1	%	70.6	%
2023	64.3	%	67.5	%	46.2	%	18.1	%	21.3	%	49.3	%
2024	66.3	%	67.2	%	45.1	%	21.2	%	22.1	%	22.9	%
2025	66.0	%	66.2	%	44.2	%	21.8	%	22.0	%	2.5	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program as a percentage of the initial balance of the Consumer Loans. Payments of dealer holdback and accelerated dealer holdback are not included.}
^{(2) Presented as a percentage of total forecasted collections.}

The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2020 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

The spread between the forecasted collection rate as of March 31, 2025 and the advance rate ranges from 12.6% to 24.0%, on an annual basis, for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spreads with respect to 2021 through 2023 Consumer Loans have been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The higher spread for 2025 Consumer Loans relative to 2024 Consumer Loans as of March 31, 2025 was primarily a result of Consumer Loan performance, as the performance of 2024 Consumer Loans has been lower than our initial estimates by a greater margin than 2025 Consumer Loans.

The following table compares our forecast of aggregate Consumer Loan collection rates as of March 31, 2025 with the forecasts at the time of assignment, for dealer loans and purchased loans separately:

	Dealer Loans						Purchased Loans
	Forecasted Collection Percentage as of (1)						Forecasted Collection Percentage as of (1)
Consumer Loan Assignment Year	March 31, 2025		Initial Forecast		Variance		March 31, 2025		Initial Forecast		Variance
2016	63.1	%	65.1	%	-2.0	%	66.1	%	66.5	%	-0.4	%
2017	64.1	%	63.8	%	0.3	%	66.4	%	64.6	%	1.8	%
2018	64.9	%	63.6	%	1.3	%	66.8	%	63.5	%	3.3	%
2019	66.9	%	63.9	%	3.0	%	67.9	%	64.2	%	3.7	%
2020	67.7	%	63.3	%	4.4	%	68.1	%	63.6	%	4.5	%
2021	63.6	%	66.3	%	-2.7	%	64.4	%	66.3	%	-1.9	%
2022	59.2	%	67.3	%	-8.1	%	61.9	%	68.0	%	-6.1	%
2023	63.0	%	66.8	%	-3.8	%	67.7	%	69.4	%	-1.7	%
2024	65.2	%	66.3	%	-1.1	%	70.6	%	70.7	%	-0.1	%
2025	64.7	%	64.9	%	-0.2	%	70.5	%	70.7	%	-0.2	%

^{(1) The forecasted collection rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment. The forecasted collection rates represent the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.}

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of March 31, 2025 for dealer loans and purchased loans separately. All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

	Dealer Loans						Purchased Loans
Consumer Loan Assignment Year	Forecasted Collection % (1)		Advance % (1)(2)		Spread %		Forecasted Collection % (1)		Advance % (1)(2)		Spread %
2016	63.1	%	42.1	%	21.0	%	66.1	%	48.6	%	17.5	%
2017	64.1	%	42.1	%	22.0	%	66.4	%	45.8	%	20.6	%
2018	64.9	%	42.7	%	22.2	%	66.8	%	45.2	%	21.6	%
2019	66.9	%	43.1	%	23.8	%	67.9	%	45.6	%	22.3	%
2020	67.7	%	43.0	%	24.7	%	68.1	%	45.5	%	22.6	%
2021	63.6	%	45.1	%	18.5	%	64.4	%	47.7	%	16.7	%
2022	59.2	%	46.4	%	12.8	%	61.9	%	50.1	%	11.8	%
2023	63.0	%	44.8	%	18.2	%	67.7	%	49.8	%	17.9	%
2024	65.2	%	44.1	%	21.1	%	70.6	%	48.9	%	21.7	%
2025	64.7	%	42.8	%	21.9	%	70.5	%	49.1	%	21.4	%

^{(1) The forecasted collection rates and advance rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.}
^{(2) Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program as a percentage of the initial balance of the Consumer Loans. Payments of dealer holdback and accelerated dealer holdback are not included.}

Although the advance rate on purchased loans is higher as compared to the advance rate on dealer loans, purchased loans do not require us to pay dealer holdback.

The spread as of March 31, 2025 on 2025 dealer loans was 21.9%, as compared to a spread of 21.1% on 2024 dealer loans. The increase was primarily a result of Consumer Loan performance, as the performance of 2024 dealer loans has been lower than our initial estimates by a greater margin than 2025 dealer loans.

The spread as of March 31, 2025 on 2025 purchased loans was 21.4%, as compared to a spread of 21.7% on 2024 purchased loans. The decrease was primarily a result of a lower initial spread on 2025 purchased loans, due to a higher advance rate.

Consumer Loan Volume

The following table summarizes changes in Consumer Loan assignment volume in each of the last five quarters as compared to the same period in the previous year:

	Year over Year Percent Change
Three Months Ended	Unit Volume		Dollar Volume (1)
March 31, 2024	24.1	%	20.2	%
June 30, 2024	20.9	%	16.3	%
September 30, 2024	17.7	%	12.2	%
December 31, 2024	0.3	%	-4.9	%
March 31, 2025	-10.1	%	-15.5	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}

Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs and (2) the amount of capital available to fund new loans. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital constraints.

Unit and dollar volumes declined 10.1% and 15.5%, respectively, during the first quarter of 2025 as the number of active dealers declined 0.1% and the average unit volume per active dealer declined 9.7%. Dollar volume declined by more than unit volume during the first quarter of 2025 due to a decrease in the average advance paid, resulting from decreases in the average size of Consumer Loans assigned and the average advance rate. Unit volume for the 28-day period ended April 28, 2025 decreased 9.8% compared to the same period in 2024.

The following table summarizes the changes in Consumer Loan unit volume and active dealers:

	For the Three Months Ended March 31,
	2025	2024	% Change
Consumer Loan unit volume	100,278	111,488	-10.1	%
Active dealers (1)	10,789	10,805	-0.1	%
Average volume per active dealer	9.3	10.3	-9.7	%

Consumer Loan unit volume from dealers active both periods	80,926	93,406	-13.4	%
Dealers active both periods	7,067	7,067	—
Average volume per dealer active both periods	11.5	13.2	-13.4	%

Consumer loan unit volume from dealers not active both periods	19,352	18,082	7.0	%
Dealers not active both periods	3,722	3,738	-0.4	%
Average volume per dealer not active both periods	5.2	4.8	8.3	%

^{(1) Active dealers are dealers who have received funding for at least one Consumer Loan during the period.}

The following table provides additional information on the changes in Consumer Loan unit volume and active dealers:

	For the Three Months Ended March 31,
	2025		2024		% Change
Consumer Loan unit volume from new active dealers	4,229		5,193		-18.6	%
New active dealers (1)	1,195		1,310		-8.8	%
Average volume per new active dealer	3.5		4.0		-12.5	%

Attrition (2)	-16.2	%	-16.0	%

^{(1) New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.}
^{(2) Attrition is measured according to the following formula: decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.}

The following table shows the percentage of Consumer Loans assigned to us as dealer loans and purchased loans for each of the last five quarters:

	Unit Volume				Dollar Volume (1)
Three Months Ended	Dealer Loans		Purchased Loans		Dealer Loans		Purchased Loans
March 31, 2024	78.2	%	21.8	%	76.6	%	23.4	%
June 30, 2024	78.5	%	21.5	%	77.3	%	22.7	%
September 30, 2024	79.5	%	20.5	%	78.4	%	21.6	%
December 31, 2024	78.7	%	21.3	%	77.7	%	22.3	%
March 31, 2025	77.0	%	23.0	%	75.1	%	24.9	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}

As of March 31, 2025 and December 31, 2024, the net dealer loans receivable balance was 72.7% and 72.3%, respectively, of the total net loans receivable balance.

Financial Results

(Dollars in millions, except per share data)	For the Three Months Ended March 31,
		2025		2024	% Change
GAAP average debt	$	6,398.3	$	5,306.8	20.6	%
GAAP average shareholders’ equity		1,782.0		1,678.5	6.2	%
Average capital	$	8,180.3	$	6,985.3	17.1	%
GAAP net income	$	106.3	$	64.3	65.3	%
Diluted weighted average shares outstanding		12,279,446		12,646,529	-2.9	%
GAAP net income per diluted share	$	8.66	$	5.08	70.5	%

The increase in GAAP net income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily a result of the following:

An increase in finance charges of 12.3% ($57.5 million), primarily due to an increase in the average balance of our loan portfolio.
A decrease in provision for credit losses of 13.0% ($24.1 million), due to:
- A decrease in provision for credit losses on forecast changes of $10.9 million, due to a smaller decline in Consumer Loan performance.
- A decrease in provision for credit losses on new Consumer Loan assignments of $13.2 million, due to a 10.1% decrease in Consumer Loan assignment unit volume and a 3.7% decrease in the average provision per Consumer Loan assignment. The decrease in average provision per new Consumer Loan assignment was primarily due to a decrease in the average advance rate for 2025 Consumer Loans.
An increase in operating expenses of 7.5% ($9.4 million), primarily due to an increase in salaries and wages expense of 12.9% ($10.1 million), primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers, (ii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders, and (iii) fringe benefits, primarily due to higher medical claims.
An increase in provision for income taxes of 60.2% ($13.3 million), primarily due to an increase in pre-tax income.
An increase in interest expense of 24.0% ($22.2 million), primarily due to an increase in our average outstanding debt balance, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.

Adjusted financial results are provided to help shareholders understand our financial performance. The financial data below is non-GAAP, unless labeled otherwise. We use adjusted financial information internally to measure financial performance and to determine certain incentive compensation. We also use economic profit as a framework to evaluate business decisions and strategies, with the objective to maximize economic profit over the long term. In addition, certain debt facilities utilize adjusted financial information for the determination of loan collateral values and to measure financial covenants. The table below shows our results following adjustments to reflect non-GAAP accounting methods. Material adjustments are explained in the table footnotes and the subsequent “Floating Yield Adjustment” and “Senior Notes Adjustment” sections. Measures such as adjusted average capital, adjusted net income, adjusted net income per diluted share, adjusted interest expense (after-tax), adjusted net income plus adjusted interest expense (after-tax), adjusted return on capital, adjusted revenue, operating expenses, adjusted loans receivable, economic profit, and economic profit per diluted share are non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.

Adjusted financial results for the three months ended March 31, 2025, compared to the same period in 2024, include the following:

(Dollars in millions, except per share data)	For the Three Months Ended March 31,
		2025			2024		% Change
Adjusted average capital	$	8,882.6		$	7,507.8		18.3	%
Adjusted net income	$	114.8		$	117.4		-2.2	%
Adjusted interest expense (after-tax)	$	88.3		$	71.2		24.0	%
Adjusted net income plus adjusted interest expense (after-tax)	$	203.1		$	188.6		7.7	%
Adjusted return on capital		9.2	%		10.1	%	-8.9	%
Cost of capital		7.6	%		7.3	%	4.1	%
Economic profit	$	35.3		$	51.4		-31.3	%
Diluted weighted average shares outstanding		12,279,446			12,646,529		-2.9	%
Adjusted net income per diluted share	$	9.35		$	9.28		0.8	%
Economic profit per diluted share	$	2.87		$	4.06		-29.3	%

Economic profit decreased 31.3% for the three months ended March 31, 2025, as compared to the same period in 2024. Economic profit is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. The following table summarizes the impact each of these components had on the changes in economic profit for the three months ended March 31, 2025, as compared to the same period in 2024:

(In millions)	Year over Year Change in Economic Profit
	For the Three Months Ended March 31, 2025
Decrease in adjusted return on capital	$	(20.0)
Increase in cost of capital		(5.5)
Increase in adjusted average capital		9.4
Decrease in economic profit	$	(16.1)

The decrease in economic profit for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily a result of the following:

A decrease in our adjusted return on capital of 90 basis points, primarily due to:
- A decrease in the yield used to recognize adjusted finance charges on our loan portfolio decreased our adjusted return on capital by 140 basis points, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing throughout 2024 and the first quarter of 2025. The slower forecasted net cash flow timing was primarily due to lower-than-expected Consumer Loan prepayments, which remain below historical averages.
- Slower growth in operating expenses increased our adjusted return on capital by 50 basis points as operating expenses grew by 7.5% while adjusted average capital grew by 18.3%.
An increase in adjusted average capital of 18.3%, primarily due to an increase in the average balance of our loan portfolio.

The following table shows adjusted revenue and operating expenses as a percentage of adjusted average capital, the adjusted return on capital, and the percentage change in adjusted average capital for each of the last eight quarters, compared to the same period in the prior year:

	For the Three Months Ended
	Mar. 31, 2025		Dec. 31, 2024		Sept. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023		Sept. 30, 2023		Jun. 30, 2023
Adjusted finance charges as a percentage of adjusted average loans receivable (1)	16.7	%	16.5	%	16.4	%	17.8	%	17.6	%	17.9	%	18.5	%	19.3	%
Adjusted revenue as a percentage of adjusted average capital (1)	18.0	%	18.4	%	18.2	%	19.6	%	19.8	%	20.2	%	20.7	%	21.2	%
Operating expenses as a percentage of adjusted average capital (1)	6.1	%	5.6	%	6.2	%	6.2	%	6.7	%	6.3	%	6.3	%	6.9	%
Adjusted return on capital (1)	9.2	%	9.8	%	9.3	%	10.3	%	10.1	%	10.6	%	11.1	%	11.1	%
Percentage change in adjusted average capital compared to the same period in the prior year	18.3	%	19.3	%	19.4	%	17.6	%	14.6	%	11.5	%	8.8	%	6.2	%

^{(1) Annualized.}

The decrease in adjusted return on capital for the three months ended March 31, 2025, as compared to the three months ended December 31, 2024, was primarily due to:

Faster growth in operating expenses, which decreased adjusted return on capital by 40 basis points, as operating expenses increased by 11.4% while adjusted average capital grew 2.9%. The $13.9 million increase in operating expenses was primarily due to the seasonal impact of the following:
- An increase in fringe benefits, primarily due to an increase in accrued paid time off.
- An increase in payroll taxes as a result of both taxes that are subject to income limitations and the taxes on the annual vesting of equity awards during the first quarter of the year.
- An increase in sales commissions driven by higher unit volume during the first quarter of the year.
A decrease in adjusted revenue as a percentage of adjusted average capital, primarily due to adjusted average capital growing faster than adjusted average loans receivable due to an increase in cash and cash equivalents, partially offset by an increase in the yield on our adjusted loan portfolio. The increase in cash and cash equivalents was primarily due to the timing of recently completed debt issuances and a decline in Consumer Loan assignment volume.

The following tables provide a reconciliation of non-GAAP measures to GAAP measures. Certain amounts do not recalculate due to rounding.

(Dollars in millions, except per share data)	For the Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sept. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sept. 30, 2023			Jun. 30, 2023
Adjusted net income
GAAP net income (loss)	$	106.3		$	151.9		$	78.8		$	(47.1)		$	64.3		$	93.6		$	70.8		$	22.2
Floating yield adjustment (after-tax)		(118.9)			(116.8)			(115.1)			(96.1)			(92.4)			(83.9)			(76.4)			(73.9)
GAAP provision for credit losses (after-tax)		124.6			95.0			142.2			246.9			143.2			126.1			142.1			192.9
Loss on sale of building (after-tax) (1)		—			—			—			18.3			—			—			—			—
Senior notes adjustment (after-tax)		—			—			—			—			—			(2.6)			(0.5)			(0.6)
Income tax adjustment (2)		2.8			(4.1)			3.2			4.4			2.3			(4.1)			3.5			(0.6)
Adjusted net income	$	114.8		$	126.0		$	109.1		$	126.4		$	117.4		$	129.1		$	139.5		$	140.0

Adjusted net income per diluted share (3)	$	9.35		$	10.17		$	8.79		$	10.29		$	9.28		$	10.06		$	10.70		$	10.69
Diluted weighted average shares outstanding		12,279,446			12,388,072			12,415,143			12,282,174			12,646,529			12,837,181			13,039,638			13,099,961

Adjusted revenue
GAAP total revenue	$	571.1		$	565.9		$	550.3		$	538.2		$	508.0		$	491.6		$	478.6		$	477.9
Floating yield adjustment		(154.5)			(151.8)			(149.4)			(124.8)			(120.0)			(108.9)			(99.3)			(96.1)
GAAP provision for claims		(16.1)			(17.7)			(18.5)			(20.3)			(17.0)			(16.6)			(16.5)			(19.7)
Adjusted revenue	$	400.5		$	396.4		$	382.4		$	393.1		$	371.0		$	366.1		$	362.8		$	362.1

Adjusted average capital
GAAP average debt	$	6,398.3		$	6,202.5		$	6,071.1		$	5,818.2		$	5,306.8		$	4,986.3		$	4,831.4		$	4,730.3
Deferred debt issuance adjustment		—			—			—			—			—			20.9			24.5			24.0
Senior notes debt adjustment		—			—			—			—			—			2.8			3.4			3.4
Adjusted average debt		6,398.3			6,202.5			6,071.1			5,818.2			5,306.8			5,010.0			4,859.3			4,757.7
GAAP average shareholders’ equity		1,782.0			1,712.3			1,594.2			1,623.5			1,678.5			1,734.3			1,731.3			1,752.6
Senior notes equity adjustment		—			—			—			—			—			2.0			2.9			3.4
Income tax adjustment (4)		(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)
Floating yield adjustment		820.8			837.0			840.8			710.1			641.0			606.5			548.9			433.9
Adjusted average equity		2,484.3			2,430.8			2,316.5			2,215.1			2,201.0			2,224.3			2,164.6			2,071.4
Adjusted average capital	$	8,882.6		$	8,633.3		$	8,387.6		$	8,033.3		$	7,507.8		$	7,234.3		$	7,023.9		$	6,829.1
Adjusted revenue as a percentage of adjusted average capital (5)		18.0	%		18.4	%		18.2	%		19.6	%		19.8	%		20.2	%		20.7	%		21.2	%

Adjusted loans receivable
GAAP loans receivable, net	$	7,978.2		$	7,850.3		$	7,781.5		$	7,547.7		$	7,345.6		$	6,955.3		$	6,780.5		$	6,610.3
Floating yield adjustment		1,079.8			1,072.4			1,100.8			1,065.6			869.7			803.8			748.9			663.7
Adjusted loans receivable	$	9,058.0		$	8,922.7		$	8,882.3		$	8,613.3		$	8,215.3		$	7,759.1		$	7,529.4		$	7,274.0

Adjusted loan yield
GAAP finance charges	$	526.7		$	518.2		$	507.6		$	497.7		$	469.2		$	451.6		$	441.7		$	441.0
Floating yield adjustment		(154.5)			(151.8)			(149.4)			(124.8)			(120.0)			(108.9)			(99.3)			(96.1)
Adjusted finance charges	$	372.2		$	366.4		$	358.2		$	372.9		$	349.2		$	342.7		$	342.4		$	344.9

GAAP average loans receivable, net	$	7,882.4		$	7,831.4		$	7,690.9		$	7,499.2		$	7,101.3		$	6,867.8		$	6,690.8		$	6,596.6
Average floating yield adjustment		1,048.9			1,071.4			1,072.2			903.2			819.7			775.6			701.0			552.8
Adjusted average loans receivable	$	8,931.3		$	8,902.8		$	8,763.1		$	8,402.4		$	7,921.0		$	7,643.4		$	7,391.8		$	7,149.4
Adjusted finance charges as a percentage of adjusted average loans receivable (5)		16.7	%		16.5	%		16.4	%		17.8	%		17.6	%		17.9	%		18.5	%		19.3	%

^{(1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.}
^{(2)   Adjustment to record taxes at our estimated long-term effective income tax rate of 23%.}
^{(3)   Net income per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly net income per diluted share information may not equal year-to-date net income per diluted share.}
^{(4)   The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.}
^{(5)   Annualized.}

(Dollars in millions)	For the Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sept. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sept. 30, 2023			Jun. 30, 2023
Adjusted interest expense (after-tax)
GAAP interest expense	$	114.7		$	111.3		$	111.2		$	104.5		$	92.5		$	78.8		$	70.5		$	62.8
Senior notes adjustment		—			—			—			—			—			3.5			0.7			0.7
Adjusted interest expense (pre-tax)		114.7			111.3			111.2			104.5			92.5			82.3			71.2			63.5
Adjustment to record tax effect (1)		(26.4)			(25.6)			(25.6)			(24.0)			(21.3)			(18.9)			(16.4)			(14.6)
Adjusted interest expense (after-tax)	$	88.3		$	85.7		$	85.6		$	80.5		$	71.2		$	63.4		$	54.8		$	48.9

Adjusted return on capital (2)
Adjusted net income	$	114.8		$	126.0		$	109.1		$	126.4		$	117.4		$	129.1		$	139.5		$	140.0
Adjusted interest expense (after-tax)		88.3			85.7			85.6			80.5			71.2			63.4			54.8			48.9
Adjusted net income plus adjusted interest expense (after-tax)	$	203.1		$	211.7		$	194.7		$	206.9		$	188.6		$	192.5		$	194.3		$	188.9

Reconciliation of GAAP return on equity to adjusted return on capital (5)
GAAP return on equity (3)		23.9	%		35.5	%		19.8	%		-11.6	%		15.3	%		21.6	%		16.4	%		5.1	%
Non-GAAP adjustments		-14.7	%		-25.7	%		-10.5	%		21.9	%		-5.2	%		-11.0	%		-5.3	%		6.0	%
Adjusted return on capital (2)		9.2	%		9.8	%		9.3	%		10.3	%		10.1	%		10.6	%		11.1	%		11.1	%

Economic profit
Adjusted return on capital		9.2	%		9.8	%		9.3	%		10.3	%		10.1	%		10.6	%		11.1	%		11.1	%
Cost of capital (4) (5)		7.6	%		7.4	%		7.3	%		7.5	%		7.3	%		7.6	%		7.1	%		6.7	%
Adjusted return on capital in excess of cost of capital		1.6	%		2.4	%		2.0	%		2.8	%		2.8	%		3.0	%		4.0	%		4.4	%
Adjusted average capital	$	8,882.6		$	8,633.3		$	8,387.6		$	8,033.3		$	7,507.8		$	7,234.3		$	7,023.9		$	6,829.1
Economic profit	$	35.3		$	51.3		$	41.4		$	56.2		$	51.4		$	55.9		$	69.1		$	74.1

Reconciliation of GAAP net income (loss) to economic profit
GAAP net income (loss)	$	106.3		$	151.9		$	78.8		$	(47.1)		$	64.3		$	93.6		$	70.8		$	22.2
Non-GAAP adjustments		8.5			(25.9)			30.3			173.5			53.1			35.5			68.7			117.8
Adjusted net income		114.8			126.0			109.1			126.4			117.4			129.1			139.5			140.0
Adjusted interest expense (after-tax)		88.3			85.7			85.6			80.5			71.2			63.4			54.8			48.9
Adjusted net income plus adjusted interest expense (after-tax)		203.1			211.7			194.7			206.9			188.6			192.5			194.3			188.9
Less: cost of capital		167.8			160.4			153.3			150.7			137.2			136.6			125.2			114.8
Economic profit	$	35.3		$	51.3		$	41.4		$	56.2		$	51.4		$	55.9		$	69.1		$	74.1

Economic profit per diluted share (6)	$	2.87		$	4.14		$	3.33		$	4.58		$	4.06		$	4.35		$	5.30		$	5.66
Operating expenses as a percentage of adjusted average capital (5)		6.1	%		5.6	%		6.2	%		6.2	%		6.7	%		6.3	%		6.3	%		6.9	%
Percentage change in adjusted average capital compared to the same period in the prior year		18.3	%		19.3	%		19.4	%		17.6	%		14.6	%		11.5	%		8.8	%		6.2	%

^{(1)   Adjustment to record taxes at our estimated long-term effective income tax rate of 23%.}
^{(2)   Adjusted return on capital is defined as adjusted net income plus adjusted interest expense (after-tax) divided by adjusted average capital.}
^{(3) Calculated by dividing GAAP net income (loss) by GAAP average shareholders’ equity.}^{(4)   The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:}

	For the Three Months Ended
	Mar. 31, 2025		Dec. 31, 2024		Sept. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023		Sept. 30, 2023		Jun. 30, 2023
Average 30-year Treasury rate	4.7	%	4.4	%	4.3	%	4.6	%	4.3	%	4.7	%	4.2	%	3.8	%
Pre-tax average cost of debt (5)	7.2	%	7.2	%	7.3	%	7.2	%	7.0	%	6.3	%	5.9	%	5.3	%

^{(5) Annualized.}
^{(6) Economic profit per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly economic profit per diluted share information may not equal year-to-date economic profit per diluted share.}

Floating Yield Adjustment

The net loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the dealer. We believe the economics of our business are best exhibited by recognizing loan revenue on a level-yield basis over the life of the loan based on expected future net cash flows. The purpose of this non-GAAP adjustment is to provide insight into our business by showing this level yield measure of income. Under GAAP, contractual amounts due in excess of the loan receivable balance at the time of assignment will be reflected as interest income, while contractual amounts due that are not expected to be collected are reflected in the provision for credit losses. Our non-GAAP floating yield adjustment recognizes the net effects of contractual interest income and expected credit losses in a single measure of finance charge revenue, consistent with how we manage our business. The floating yield adjustment recognizes revenue on a level-yield basis based upon expected future net cash flows, with any changes in expected future net cash flows, which are recognized immediately under GAAP as provision for credit losses, recognized over the remaining forecast period (up to 120 months after the origination date of the underlying Consumer Loans) for each individual dealer loan and purchased loan. The floating yield adjustment does not accelerate revenue recognition. Rather, it reduces revenue by taking amounts that are reported under GAAP as provision for credit losses and instead treating them as reductions of revenue over time.

Under the GAAP methodology we employ, which is known as the current expected credit loss model, or CECL, we are required to recognize:

a significant provision for credit losses expense at the time of the loan’s assignment to us for contractual net cash flows we do not expect to realize; and
finance charge revenue in subsequent periods that is significantly in excess of our expected yield.

Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. Our floating yield adjustment enables us to provide measures of income that are not impacted by GAAP’s treatment of contractual net cash flows we do not expect to realize at the time of loan assignment. We believe the floating yield adjustment is presented in a manner which reflects both the economic reality of our business and how the business is managed and provides valuable supplemental information to help investors better understand our business, executive compensation, liquidity, and capital resources.

Senior Notes Adjustment (applied in periods prior to December 31, 2023)

This non-GAAP adjustment modifies our GAAP financial results to treat the issuance of certain senior notes as a refinancing of certain previously issued senior notes. Our historical adjusted financial information reflects application of the senior notes adjustment as described below in connection with (i) the issuance by us in 2014 of $300.0 million principal amount of 6.125% senior notes due 2021 (the “2021 senior notes”) and the related retirement of our 9.125% senior notes due 2017 (the “2017 senior notes”) and (ii) the issuance by us in 2019 of $400.0 million principal amount of 5.125% senior notes due 2024 (the “2024 senior notes”) and the related retirement of the 2021 senior notes and our 7.375% senior notes due 2023 (the “2023 senior notes”).

We issued the 2024 senior notes on December 18, 2019. We used a portion of the net proceeds from the 2024 senior notes to repurchase or redeem all of the $300.0 million outstanding principal amount of the 2021 senior notes, of which $148.2 million was repurchased on December 18, 2019 and the remaining $151.8 million was redeemed on January 17, 2020. We used the remaining net proceeds from the 2024 senior notes, together with borrowings under our revolving credit facility, to redeem in full the $250.0 million outstanding principal amount of the 2023 senior notes on March 15, 2020. Under GAAP, the fourth quarter of 2019 included (i) a pre-tax loss on extinguishment of debt of $1.8 million related to the repurchase of 2021 senior notes in the fourth quarter of 2019 and the redemption of the remaining 2021 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.3 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020. Under GAAP, the first quarter of 2020 included (i) a pre-tax loss on extinguishment of debt of $7.4 million related to the redemption of 2023 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.4 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020.

We issued the 2021 senior notes on January 22, 2014. On February 21, 2014, we used the net proceeds from the 2021 senior notes, together with borrowings under our revolving credit facilities, to redeem in full the $350.0 million outstanding principal amount of the 2017 senior notes. Under GAAP, the first quarter of 2014 included (i) a pre-tax loss on extinguishment of debt of $21.8 million related to the redemption of the 2017 senior notes in the first quarter of 2014 and (ii) additional interest expense of $1.4 million on $276.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2021 senior notes to the redemption of the 2017 senior notes.

Under our non-GAAP approach, the loss on extinguishment of debt and additional interest expense that were recognized for GAAP purposes were in each case deferred as debt issuance costs to be recognized ratably as interest expense over the term of the newly issued notes. In addition, for adjusted average capital purposes, the impact of additional outstanding debt related to the lag from the issuance of the new notes to the redemption of the previously issued notes was in each case deferred to be recognized ratably over the term of the newly issued notes. Upon the issuance of the 2024 senior notes in the fourth quarter of 2019, the outstanding unamortized balances of the non-GAAP adjustments related to the 2021 senior notes were deferred and were recognized ratably over the term of the 2024 senior notes, until the repurchase and redemption of the 2024 senior notes in December 2023.

We believe the application of the senior notes adjustment as described above provides a more accurate reflection of the performance of our business, since we were recognizing the costs incurred with these transactions in a manner consistent with how we recognize the costs incurred when we periodically refinance our other debt facilities. We have determined not to apply the senior notes adjustments in connection with (i) the issuance by us in December 2023 of our 9.250% senior notes due 2028 and the related retirement of the 2024 senior notes or (ii) the issuance by us in February 2025 of our 6.625% senior notes due 2030 and the related retirement of the 2026 senior notes, because the adjustments would not be material.

Cautionary Statement Regarding Forward-Looking Information

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2025, and Item 1A in Part II of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC on April 30, 2025, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

Industry, Operational, and Macroeconomic Risks

Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.
Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.
Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.
Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.
We are dependent on our senior management, and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.
Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.
An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.
The concentration in several states of automobile dealers who participate in our programs could adversely affect us.
Reliance on our outsourced business functions could adversely affect our business.
Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.
We may be unable to execute our business strategy due to current economic conditions.
Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.
Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.
A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders.

Capital and Liquidity Risks

We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.
The terms of our debt limit how we conduct our business.
A violation of the terms of our asset-backed secured financings or revolving secured warehouse facilities could have a material adverse impact on our operations.
Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.
We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.
Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.
Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.
We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.
The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations.

Technology and Cybersecurity Risks

Our dependence on technology could have a material adverse effect on our business.
We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.
Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.
Failure to properly safeguard our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.
The development and use of artificial intelligence presents risks and challenges that may adversely impact our business.

Legal and Regulatory Risks

Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.
Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.
The regulations to which we are or may become subject could result in a material adverse effect on our business.

Other factors not currently anticipated by management may also materially and adversely affect our business, financial condition, and results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.

Webcast Details

We will host a webcast on April 30, 2025 at 5:00 p.m. Eastern Time to discuss our first quarter results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at ir.creditacceptance.com or by telephone as described below. Only persons accessing the webcast by telephone will be able to pose questions to the presenters during the webcast. A replay and transcript of the webcast will be archived in the “Investor Relations” section of our website.

To participate in the webcast by telephone, you must pre-register at https://register.vevent.com/register/BI27a0a72b8917474a9a1c5c1f1a465ad7, or through the link posted on the “Investor Relations” section of our website at ir.creditacceptance.com. Upon registration you will be provided with the dial-in number and a unique PIN to access the webcast by telephone.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

(Dollars in millions, except per share data)	For the Three Months Ended March 31,
		2025		2024
Revenue:
Finance charges	$	526.7	$	469.2
Premiums earned		23.5		21.9
Other income		20.9		16.9
Total revenue		571.1		508.0
Costs and expenses:
Salaries and wages		88.6		78.5
General and administrative		22.1		23.7
Sales and marketing		24.8		23.9
Total operating expenses		135.5		126.1

Provision for credit losses on forecast changes		76.3		87.2
Provision for credit losses on new Consumer Loan assignments		85.6		98.8
Total provision for credit losses		161.9		186.0

Interest		114.7		92.5
Provision for claims		16.1		17.0
Loss on extinguishment of debt		1.2		—
Total costs and expenses		429.4		421.6
Income before provision for income taxes		141.7		86.4
Provision for income taxes		35.4		22.1
Net income	$	106.3	$	64.3

Net income per share:
Basic	$	8.79	$	5.15
Diluted	$	8.66	$	5.08

Weighted average shares outstanding:
Basic		12,091,027		12,481,139
Diluted		12,279,446		12,646,529

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(Dollars in millions, except per share data)	As of
	March 31, 2025		December 31, 2024
ASSETS:
Cash and cash equivalents	$	528.8	$	343.7
Restricted cash and cash equivalents		591.8		501.3
Restricted securities available for sale		109.0		106.4

Loans receivable		11,476.7		11,289.1
Allowance for credit losses		(3,498.5)		(3,438.8)
Loans receivable, net		7,978.2		7,850.3

Property and equipment, net		13.7		14.7
Income taxes receivable		6.4		4.2
Other assets		30.1		34.0
Total assets	$	9,258.0	$	8,854.6

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Liabilities:
Accounts payable and accrued liabilities	$	377.0	$	315.8
Revolving secured lines of credit		1.4		0.1
Secured financing		5,618.0		5,361.5
Senior notes		1,085.8		991.3
Deferred income taxes, net		320.9		319.1
Income taxes payable		144.0		117.2
Total liabilities		7,547.1		7,105.0

Shareholders’ Equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued		—		—
Common stock, $.01 par value, 80,000,000 shares authorized, 11,747,851 and 12,048,151 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		0.1		0.1
Paid-in capital		351.7		335.1
Retained earnings		1,358.5		1,414.7
Accumulated other comprehensive income (loss)		0.6		(0.3)
Total shareholders’ equity		1,710.9		1,749.6
Total liabilities and shareholders’ equity	$	9,258.0	$	8,854.6

The MIL Network –

May 1, 2025

MIL-OSI: Medallion Financial Corp. Reports 2025 First Quarter Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) — Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners, announced today its results for the quarter ended March 31, 2025.

March 31, 2025 First Quarter Highlights

Net income grew 20% to $12.0 million, or $0.50 per share, compared to $10.0 million, or $0.42 per share, in the prior year quarter.
Net interest income grew 7% to $51.4 million from $47.9 million in the prior year quarter.
Net interest margin on net loans was 8.25%, compared to 8.39% in the prior year quarter, and on gross loans it was 7.94%, compared to 8.10% in the prior year quarter.
Loan originations grew to $281.6 million, compared to $173.1 million in the prior year quarter, and included $136.2 million of strategic partnership loans in the current quarter compared to $15.7 million in the prior year quarter.
Loans grew 12% to $2.5 billion as of March 31, 2025, compared to $2.2 billion a year ago.
Credit loss provision increased to $22.0 million from $17.2 million in the prior year quarter.
The Company declared and paid a quarterly cash dividend of $0.11 per share.
Subsequent to March 31, 2025, the Board of Directors increased the quarterly cash dividend to $0.12 per share.

Executive Commentary – Andrew Murstein, President of Medallion

“Once again we are pleased with our bottom-line performance and the $0.50 per share earnings this quarter. We have done a great job pivoting fully away from our legacy taxi medallion lending business. Our consumer lending businesses continue to perform well. Our commercial division, Medallion Capital, which we acquired for approximately 1.1 million MFIN shares back in 1998, had another greater quarter and generated strong equity gains. Since 2015, Medallion Capital has generated $67 million of earnings for our shareholders.

We originated more than $280 million of loans during the quarter, with strategic partnership loans accounting for nearly half. Strategic partnership loan volume increased to $136 million this quarter up from just $16 million one year ago. We saw delinquencies in both of our consumer loan portfolios improve from a quarter ago.

Lastly, we are happy to announce that our board of directors has increased our quarterly dividend to $0.12 per share. We look forward to a bright future for our Company and continuing to deliver positive returns to our shareholders.”

Business Segment Highlights

Recreation Lending Segment

Originations were $86.8 million during the quarter, compared to $105.8 million a year ago.
Recreation loans, including loans held for investment and loans held for sale, grew 13% to $1.5 billion, or 62% of total loans, as of March 31, 2025, compared to $1.4 billion a year ago.
Interest income grew 15% to $50.5 million for the quarter, from $43.9 million in the prior year quarter.
The average interest rate was 15.01% at quarter-end, 15.10% excluding loans held sale, compared to 14.80% a year ago.
Recreation loans 90 days or more past due were $7.1 million, or 0.48% of gross recreation loans, as of March 31, 2025, compared to $6.4 million, or 0.48%, a year ago.
Allowance for credit loss was 5.00% at quarter-end for loans held for investment, compared to 4.40% a year ago.

Home Improvement Lending Segment

Originations were $48.8 million during the quarter, compared to $51.6 million a year ago.
Home improvement loans grew 8% to $812.4 million, or 33% of total loans, as of March 31, 2025, compared to $752.3 million a year ago.
Interest income grew 13% to $19.8 million for the quarter, from $17.4 million in the prior year quarter.
The average interest rate was 9.83% at quarter-end, compared to 9.60% a year ago.
Home improvement loans 90 days or more past due were $1.5 million, or 0.19% of gross home improvement loans, as of March 31, 2025, compared to $1.4 million, or 0.18%, a year ago.
Allowance for credit loss was 2.49% at quarter-end, compared to 2.38% a year ago.

Commercial Lending Segment

Commercial loans were $116.1 million at March 31, 2025, compared to $106.6 million a year ago.
The average interest rate on the portfolio was 13.14%, compared to 13.00% a year ago.

Taxi Medallion Lending Segment

The Company collected $2.6 million of cash on taxi medallion-related assets during the quarter.
Total net taxi medallion assets declined to $6.8 million, a 37% reduction from a year ago, and represented less than 0.5% of the Company’s total assets, as of March 31, 2025.

Capital Allocation

Quarterly Dividend

The Board of Directors declared a quarterly dividend of $0.12 per share, payable on May 30, 2025, to shareholders of record at the close of business on May 15, 2025.

Stock Repurchase Plan

During the first quarter of 2025, the Company repurchased 60,185 shares of its common stock at an average cost of $8.83 per share for $0.5 million.
As of March 31, 2025, the Company had $14.9 million remaining under its $40 million stock repurchase program.

Conference Call Information

The Company will host a conference call to discuss its first quarter financial results tomorrow, Thursday, May 1, 2025, at 9:00 a.m. Eastern time.

In connection with its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.

How to Participate

Date: Thursday, May 1, 2025
Time: 9:00 a.m. Eastern time
U.S. dial-in number: (833) 816-1412
International dial-in number: (412) 317-0504
Live webcast: Link to Webcast of 1Q25 Earnings Call

A link to the live audio webcast of the conference call will also be available at the Company’s IR website.

Replay Information

The webcast replay will be available at the Company’s IR website until the next quarter’s results are announced.

The conference call replay will be available following the end of the call through Thursday, May 8, 2025

U.S. dial-in number: (844) 512-2921
International dial-in number: (412) 317-6671
Passcode: 1019 8552

About Medallion Financial Corp.

Medallion Financial Corp. (NASDAQ: MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.

Forward-Looking Statements
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as “will” and “continue” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, the impact of the pending SEC litigation, expectations regarding our loan portfolio, including collections on our medallion loans, the potential for future asset growth, and market share opportunities. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, the effects of tariffs, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion’s control. In addition to risks relating to the current economy, a description of certain risks to which Medallion is or may be subject, including risks related to the pending SEC litigation, the settlement of which remains subject to SEC and court approval, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2024 Annual Report on Form 10-K.

Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com



MEDALLION FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands, except share and per share data)	March 31, 2025			December 31, 2024			March 31, 2024
Assets
Cash, cash equivalents, and federal funds sold	$	157,994		$	169,572		$	169,125
Investment securities		60,424			54,805			53,038
Equity investments		8,997			9,198			16,374
Loans held for sale, at lower of amortized cost or fair value		124,733			128,226			—
Loans		2,361,700			2,362,796			2,228,426
Allowance for credit losses		(100,366	)		(97,368	)		(83,827	)
Net loans receivable		2,261,334			2,265,428			2,144,599
Goodwill and intangible assets, net		169,588			169,949			171,033
Property, equipment, and right-of-use lease asset, net		12,814			13,756			14,024
Accrued interest receivable		14,437			15,314			12,673
Loan collateral in process of foreclosure		9,183			9,932			10,198
Other assets		28,234			32,426			27,698
Total assets	$	2,847,738		$	2,868,606		$	2,602,388
Liabilities
Deposits	$	2,022,828		$	2,090,071		$	1,879,061
Long-term debt		199,665			232,159			225,558
Short-term borrowings		111,750			49,000			32,500
Deferred tax liabilities, net		21,538			20,995			24,846
Operating lease liabilities		4,528			5,128			6,710
Accrued interest payable		6,610			8,231			6,077
Accounts payable and accrued expenses		31,807			24,064			26,186
Total liabilities		2,398,726			2,429,648			2,200,938
Total stockholders’ equity		380,224			370,170			349,036
Non-controlling interest in consolidated subsidiaries		68,788			68,788			68,788
Total equity		449,012			438,958			417,824
Total liabilities and equity	$	2,847,738		$	2,868,606		$	2,618,762
Number of shares outstanding		23,235,030			23,135,624			23,377,564
Book value per share	$	16.36		$	16.00		$	14.93


MEDALLION FINANCIAL CORP.‌ CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)‌

	Three Months Ended March 31,
(Dollars in thousands, except share and per share data)	2025		2024
Total interest income	$	75,425	$	67,070
Total interest expense		24,013		19,153
Net interest income		51,412		47,917
Provision for credit losses		22,014		17,201
Net interest income after provision for credit losses		29,398		30,716
Other income
Gain on equity investments, net		9,430		4,167
Gain on taxi medallion assets, net		843		629
Strategic partnership fees		685		326
Other income		641		281
Total other income, net		11,599		5,403
Other expenses
Salaries and employee benefits		9,993		9,457
Loan servicing fees		2,817		2,470
Collection costs		1,537		1,467
Regulatory fees		821		977
Professional fee costs, net		1,750		771
Rent expense		675		657
Amortization of intangible assets		361		361
Other expenses		2,804		2,065
Total other expenses		20,758		18,225
Income before income taxes		20,239		17,894
Income tax provision		6,713		6,358
Net income after taxes		13,526		11,536
Less: income attributable to the non-controlling interest		1,512		1,512
Total net income attributable to Medallion Financial Corp.	$	12,014	$	10,024
Basic net income per share	$	0.53	$	0.44
Diluted net income per share	$	0.50	$	0.42
Weighted average common shares outstanding
Basic		22,570,797		22,641,385
Diluted		23,897,167		23,765,045
Dividends declared per common share	$	0.12	$	0.10

The MIL Network –

May 1, 2025

MIL-OSI: Hawthorn Bancshares Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

JEFFERSON CITY, Mo., April 30, 2025 (GLOBE NEWSWIRE) — Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the bank holding company for Hawthorn Bank, reported first quarter 2025 net income of $5.4 million, or earnings per diluted share (“EPS”) of $0.77.

First Quarter 2025 Results

Net income improved $0.9 million, or 20.8%, to $5.4 million from the first quarter 2024 (the “prior year quarter”) and the efficiency ratio improved to 66.64% compared to 70.78% for the prior year quarter
EPS of $0.77, an improvement of $0.14 per share, or 22%, from the prior year quarter
Net interest margin, fully taxable equivalent (“FTE”) improved in the first quarter 2025 to 3.67% compared to 3.55% for fourth quarter 2024 (the “prior quarter”)
Provision for credit losses were $0.6 million lower than the prior quarter and $0.1 million lower than the prior year quarter
Return on average assets and equity of 1.20% and 14.29%, respectively
Loans increased $4.2 million, or 1.2% annualized, and deposits increased $10.7 million, or 2.8% annualized, compared to the prior quarter
Investments increased $2.8 million, or 5.0% annualized, compared to the prior quarter
Credit quality remained strong with non-performing assets to total loans of 0.21% improving from 0.69% in the prior year quarter
Remained well capitalized with total risk-based capital of 14.94%
Book Value per share increased $2.54 to $21.97, or 13%, compared to the prior year quarter

Brent Giles, Chief Executive Officer of Hawthorn Bancshares, Inc. commented, “Our strong first quarter aligns with our focus on growing core relationships and improving financial results. We continue to enhance our products, operations and resources to serve the customers in our communities and collectively achieve success.”

(unaudited)
$000, except per share data

	March 31,		December 31,		March 31,
	2025		2024		2024
Balance sheet information
Total assets	$	1,883,423	$	1,825,185	$	1,833,760
Loans held for investment		1,470,323		1,466,160		1,518,853
Investment securities		226,581		223,801		189,741
Deposits		1,543,888		1,533,182		1,527,874
Total stockholders’ equity	$	153,411	$	149,547	$	136,620

Market and per share data
Book value per share	$	21.97	$	21.36	$	19.43
Market price per share	$	28.23	$	28.35	$	20.43
Diluted earnings per share (QTR)	$	0.77	$	0.66	$	0.63

Financial Results for the First Quarter

Earnings

Net income for the first quarter 2025 was $5.4 million, an increase of $0.8 million, or 17.1%, from the prior quarter, and an increase of $0.9 million, or 20.8%, from the prior year quarter. EPS improved to $0.77 for the first quarter 2025 compared to $0.66 for the prior quarter and $0.63 for the prior year quarter.

Net Interest Income and Net Interest Margin

Net interest income for the first quarter 2025 was $15.3 million, a decrease of $0.1 million from the prior quarter, and an increase of $0.5 million from the prior year quarter.

Interest income decreased $0.6 million in the current quarter compared to the prior year quarter, driven primarily by lower average interest earning assets, while interest expense decreased $1.1 million compared to the prior year quarter. Net interest margin, on an FTE basis, was 3.67% for the current quarter, compared to 3.55% for the prior quarter, and 3.39% for the prior year quarter.

The yield earned on average loans held for investment increased to 5.89%, on an FTE basis, for the first quarter 2025, compared to 5.86% for the prior quarter and 5.75% for the prior year quarter.

The average cost of deposits was 2.44% for the first quarter 2025, compared to 2.49% for the prior quarter and 2.61% for the prior year quarter. Non-interest bearing demand deposits as a percent of total deposits was 27.7% as of March 31, 2025, compared to 25.1% and 25.7% at December 31, 2024 and March 31, 2024, respectively.

Non-interest Income

Total non-interest income for the first quarter 2025 was $3.5 million, a decrease of $0.1 million, or 1.7%, from the prior quarter, and an increase of $0.4 million, or 14.7%, from the prior year quarter.

Compared to the prior quarter, the decrease in non-interest income was primarily due to lower gains on other real estate owned.

The increase in the current quarter compared to the prior year quarter was primarily due to an increase in earnings on bank owned life insurance partially offset by a decrease in the gains on sale of mortgage loans.

Non-interest Expense

Total non-interest expense for the first quarter 2025 was $12.5 million, a decrease of $0.4 million, or 3.3%, from the prior quarter, and a decrease of $0.1 million, or 0.6%, from the prior year quarter.

The first quarter 2025 efficiency ratio was 66.64% compared to 68.48% and 70.78% for the prior quarter and prior year quarter, respectively. The improvement in the current quarter compared to the prior quarter was primarily due to higher net interest margin and lower non-interest expenses in the current quarter.

Loans

Loans held for investment increased $4.2 million, or 1.2% annualized, to $1.5 billion as of March 31, 2025 compared to December 31, 2024, and decreased $48.5 million, or 12.9% annualized, from March 31, 2024.

Investments

Investments increased $2.8 million, or 1.2%, to $226.6 million as of March 31, 2025 compared to December 31, 2024, and increased $36.8 million, or 19.4%, from March 31, 2024.

Asset Quality

Non-performing assets to total loans was 0.21% at March 31, 2025, compared to 0.29% and 0.69% at December 31, 2024 and March 31, 2024, respectively. Non-performing assets totaled $3.1 million at March 31, 2025, compared to $4.2 million and $10.5 million at December 31, 2024 and March 31, 2024, respectively. The decrease in non-performing assets in the current quarter compared to the prior year quarter was primarily the result of the prior year quarter including a significant commercial loan charge-off and the foreclosure and subsequent sale of two commercial real estate loans.

In the first quarter 2025, the Company had net loan charge-offs of $0.02 million, or 0% of average loans, compared to net loan charge-offs of $0.04 million, or 0.01% of average loans, and $0.07 million, or 0.02% of average loans, in the prior quarter and prior year quarter, respectively.

The Company released provision for credit losses of $0.3 million for the first quarter 2025 compared to providing a $0.3 million provision in the prior quarter, and a release of provision of $0.2 million for the prior year quarter.

The allowance for credit losses at March 31, 2025 was $21.8 million, or 1.48% of outstanding loans, and 885.01% of non-performing loans. At December 31, 2024, the allowance for credit losses was $22.0 million, or 1.50% of outstanding loans, and 802.48% of non-performing loans. At March 31, 2024, the allowance for credit losses was $23.7 million, or 1.56% of outstanding loans, and 276.93% of non-performing loans. The allowance for credit losses represents management’s best estimate of expected losses inherent in the loan portfolio and is commensurate with risks in the loan portfolio as of March 31, 2025 as determined by management.

Deposits

Total deposits at March 31, 2025 were $1.5 billion, an increase of $10.7 million, or 2.8% annualized, from December 31, 2024, and an increase of $16.0 million, or 4.2% annualized, from March 31, 2024. The increase in deposits at March 31, 2025 as compared to March 31, 2024 was primarily a result of an increase in demand and savings deposits.

Capital

The Company maintains its “well capitalized” regulatory capital position. At March 31, 2025, capital ratios were as follows: total risk-based capital to risk-weighted assets 14.94%; tier 1 capital to risk-weighted assets 13.69%; tier 1 leverage 11.64%; and common equity to assets 8.15%.

Pursuant to the Company’s 2019 Repurchase Plan, management is given discretion to determine the number and pricing of the shares to be purchased under the plan, as well as the timing of any such purchases. The Company repurchased 15,856 common shares under the repurchase plan during the first quarter of 2025 at an average cost of $27.51 per share totaling $0.4 million. As of March 31, 2025, $3.5 million remains available for share repurchases pursuant to the plan.

On April 30, 2025, the Company’s Board of Directors approved a quarterly cash dividend of $0.20 per common share, payable July 1, 2025 to shareholders of record at the close of business on June 15, 2025, which represents an increase of $0.01 per common share, or 5.3%, from the prior year quarter’s dividend.

[Tables follow]

FINANCIAL SUMMARY
(unaudited)
$000, except per share data

	Three Months Ended
	March 31,			December 31,		March 31,
Statement of income information:		2025			2024		2024
Total interest income	$	23,458		$	23,924	$	24,052
Total interest expense		8,164			8,578		9,304
Net interest income		15,294			15,346		14,748
(Release of) provision for credit losses		(340	)		300		(230	)
Non-interest income		3,463			3,522		3,019
Investment securities (losses) gains, net		(2	)		3		—
Non-interest expense		12,499			12,921		12,575
Pre-tax income		6,596			5,650		5,422
Income taxes		1,213			1,053		966
Net income	$	5,383		$	4,597	$	4,456
Earnings per share:
Basic:	$	0.77		$	0.66	$	0.63
Diluted:	$	0.77		$	0.66	$	0.63

FINANCIAL SUMMARY (continued)

(unaudited)

$000

	As of or for the three months ended
	March 31,			December 31,			March 31,
		2025			2024			2024
Performance Ratios
Return on average assets		1.20	%		1.00	%		0.97	%
Return on average common equity		14.29	%		12.49	%		13.12	%
Net interest margin (FTE)		3.67	%		3.55	%		3.39	%
Efficiency ratio		66.64	%		68.48	%		70.78	%

Asset Quality Ratios
Non-performing loans (a)	$	2,461		$	2,747		$	8,549
Non-performing assets	$	3,129		$	4,193		$	10,486
Net charge-offs	$	18		$	43		$	69
Net Charge-offs to Average Loans (b)		0.00	%		0.01	%		0.02	%
Allowance for credit losses to total loans		1.48	%		1.50	%		1.56	%
Non-performing loans to total loans		0.17	%		0.19	%		0.56	%
Non-performing assets to loans		0.21	%		0.29	%		0.69	%
Non-performing assets to total assets		0.17	%		0.23	%		0.57	%
Allowance for credit losses on loans to
non-performing loans		885.01	%		802.48	%		276.93	%

Capital Ratios
Average stockholders’ equity to average total assets		8.42	%		8.03	%		7.41	%
Period-end stockholders’ equity to period-end assets		8.15	%		8.19	%		7.45	%
Total risk-based capital ratio		14.94	%		14.79	%		13.92	%
Tier 1 risk-based capital ratio		13.69	%		13.54	%		12.51	%
Common equity Tier 1 capital		10.64	%		10.49	%		9.68	%
Tier 1 leverage ratio		11.64	%		11.46	%		10.71	%

(a) Non-performing loans include loans 90-days past due and accruing and non-accrual loans.
(b) Annualized

About Hawthorn Bancshares
Hawthorn Bancshares, Inc., a financial-bank holding company headquartered in Jefferson City, Missouri, is the parent company of Hawthorn Bank, which has served families and businesses for more than 150 years. Hawthorn Bank has multiple locations, including in the greater Kansas City metropolitan area, Jefferson City, Columbia, Springfield, and Clinton.

Contact:

Hawthorn Bancshares, Inc.
Brent M. Giles
Chief Executive Officer
TEL: 573.761.6100
www.HawthornBancshares.com

The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Quarterly Report on Form 10-Q is filed. Statements made in this press release that suggest the Company’s or management’s intentions, hopes, beliefs, expectations, or predictions of the future include “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the Company’s quarterly and annual reports filed with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this communication, and the Company disclaims any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law.

The MIL Network –

May 1, 2025

MIL-OSI: 3D Systems Announces Date of First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

ROCK HILL, S.C., April 30, 2025 (GLOBE NEWSWIRE) — 3D Systems (NYSE:DDD) announced today it will release its financial results for the first quarter 2025 after the U.S. stock markets close on Monday, May 12, 2025. The company will hold a conference call and simultaneous webcast to discuss these financial results on Tuesday, May 13, 2025 at 8:30 a.m. Eastern Time.

First Quarter 2025 Financial Results Conference Call
Date: Tuesday, May 13, 2025
Time: 8:30 a.m. Eastern Time
Listen via webcast: www.3dsystems.com/investor
Participate via telephone: 201-689-8345

The webcast replay will be available approximately two hours after the end of the conference call at www.3dsystems.com/investor.

About 3D Systems

More than 35 years ago, Chuck Hull’s curiosity and desire to improve the way products were designed and manufactured gave birth to 3D printing, 3D Systems, and the additive manufacturing industry. Since then, that same spark continues to ignite the 3D Systems team as we work side-by-side with our customers to change the way industries innovate. As a full-service solutions partner, we deliver industry-leading 3D printing technologies, materials and software to high-value markets such as medical and dental; aerospace, space and defense; transportation and motorsports; AI infrastructure; and durable goods. Each application-specific solution is powered by the expertise and passion of our employees who endeavor to achieve our shared goal of Transforming Manufacturing for a Better Future. More information on the company is available at www.3dsystems.com.

Investor Contact: investor.relations@3dsystems.com
Media Contact: press@3dsystems.com

The MIL Network –

May 1, 2025

MIL-OSI: Enovix Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

FREMONT, Calif., April 30, 2025 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, announced today financial results for the first quarter 2025, which included the summary below from its President and CEO, Dr. Raj Talluri.

Fellow Shareholders,

In the first quarter of 2025, Enovix advanced across critical milestones with our lead smartphone customer, keeping us on track for a customer product launch later this year. We also strengthened our leadership team, expanded our manufacturing footprint through a strategic acquisition in South Korea, and accelerated progress towards mass production readiness at Fab2 in Malaysia.

Recent Highlights

Revenue Growth: Preliminary and unaudited first quarter revenue was $5.1 million, exceeding the midpoint of our guidance range. We also secured bookings on defense orders which support growth into the second half of 2025.
Smartphone Batteries: Began development of cells with the exact dimensions of the planned commercial product this year; first qualification deliveries are scheduled in Q2.
XR Batteries: Delivered a significantly larger quantity of XR battery samples to our lead customer for extended testing and system-level integration. These packs, assembled in our South Korea facility using custom cells from Fab2, will support the customer’s ongoing evaluation ahead of product qualification.
Manufacturing Readiness: Fab2 in Malaysia achieved ISO 9001:2015 certification with zero major or minor findings. Additionally, we concluded the first customer audits of both Fab2 in Malaysia and our South Korea facility.
Leadership Team: Appointed Ryan Benton as chief financial officer and promoted Samira Naraghi to chief business officer.
South Korea Acquisition: Acquired SolarEdge assets, including coating equipment that supports capacity expansion at Fab2 and adds production capacity for South Korean defense programs, reinforcing our presence in a key strategic market.
Capitalization: Ended Q1 with $248 million in cash, cash equivalents, and marketable securities (preliminary and unaudited), driven by disciplined expense management ahead of mass production in Malaysia, and positive contribution from defense sales.

The north star for Enovix is commercialization of our breakthrough battery architecture, beginning with the launch of our first smartphone battery – an important step towards scaling the business to profitability. In parallel, like many global companies, we are actively monitoring changes in the global trade environment for any potential impacts to our operations and customers. At this time, we do not anticipate a material change in risk to our near-term outlook, as most of our planned sales are concentrated within Asia.

We also see opportunities in the evolving global trade landscape. In April 2025, we acquired a second facility in South Korea for $10 million. The asset purchase from SolarEdge includes equipment for additional coating capacity at Fab2, as well as expanded production for Korean defense programs, reinforcing our presence in a key strategic market. The facility that we acquired from SolarEdge also offers significant room for expansion, which could provide strategic value as global supply chains continue to rapidly evolve.

Our South Korea operations also help us with increased visibility on cutting-edge battery technology in conventional architectures. In 2024, we were among the battery manufacturers that deployed a technique called silicon doping where small amounts of silicon are added to graphite anodes which increases battery capacity. Based on our first-hand experience and feedback from our smartphone customers, we believe that our competition will be capped from achieving meaningful ED enhancements using this technique, within their current architecture, due to swelling and other trade-offs. Our internal benchmarking analysis of premium smartphone batteries launched in 2024 indicates that Enovix’s unique architecture with 100% active silicon will hold a material lead in ED, and we expect it will grow considerably with future generations.

We are focused on the smartphone industry not only because we believe it offers the largest and fastest profitability outlook, but also because the technical requirements are so demanding that addressing this market opens opportunities in others. Smart eyewear emerged as an example in Q1 when we delivered our first customer samples. This quarter, we are accelerating our expansion in the handheld computer and scanner segment, where we’ve been engaged with a market leader in retail and logistics for several quarters, and our samples have passed initial testing. Recent tariff developments have further strengthened our position in this segment, prompting increased urgency and deeper collaboration.

Business Update

Manufacturing. Key accomplishments in the first quarter included securing ISO 9001:2015 certification, driving targeted yield improvements, and continuing to build cumulative production volume. We see a clear path to execute against our manufacturing roadmap. We localized the supply chain which led to a reduction of our custom cell tooling and switchover time by over 40%. This enhanced flexibility improves our per zone capacity as we scale toward additional lines. During this ramp process, we’ve maintained open engagement with customers and partners who visit the facility, as well as one OEM concluding their audit.

Commercialization. The business team met our top objectives for the quarter – passing another milestone for our lead smartphone customer agreement, finalizing the chemistry, obtaining the precise smartphone cell dimensions, and commencing development of the final samples to be used in the qualification process this summer.

We continue to be actively engaged with other smartphone OEMs to ensure a rapid ramp once we are established in the market. Progress continues with our two marquee smart glasses customers, one of which received their unique battery samples this quarter, aligned with their product development schedules.

In the electric vehicle space, we achieved key milestones that significantly improved the likelihood of expanding our commercial agreement with one of our two OEM partners later this year. Our partners remain highly committed to electrification. We also noted a major charge time improvement announced by a leading battery supplier in Asia, which we view as a strong validation of our cooling architecture – designed for scalable production and industry-leading performance, particularly in charge time and energy density.

Products. Our internal benchmarking confirms that we are well-positioned to maintain technology leadership for the foreseeable future. The initial products slated for launch are built on our EX-1M technology node, with customer-specific customizations. While premium-category smartphones batteries improved energy density through silicon doping in 2024, we advanced our own electrochemistry with EX-2M – a foundational step that we believe will solidify our leadership position through 2026.

To further extend this lead, we finalized the design specification of EX-3M, which incorporates a significant architectural enhancement projected to deliver more than a 30% capacity advantage compared to premium solutions available today. We anticipate a similar performance leap with the development of EX-4M.

Q1 2025 Financial Highlights (Preliminary and Unaudited)

Revenue was $5.1 million in the first quarter of 2025, near the high end of our guidance range and roughly flat year over year. As expected, revenue declined from $9.7 million in the fourth quarter of 2024 due to the seasonal buying cycle of South Korean defense customers who typically procure a majority of orders in the second half of the calendar year – a trend we expect to repeat in 2025. Our GAAP cost of revenue was $4.8 million, resulting in our second consecutive quarter of positive gross margin.

GAAP operating expenses were $42.8 million in the first quarter of 2025, compared to $35.6 million in the fourth quarter of 2024 and $68.3 million in the first quarter of 2024, reflecting the impact of cost reduction initiatives implemented over the past year. Non-GAAP operating expenses were $29.7 million, up from $24.3 million in the previous quarter, reflecting preparation for mass production in Malaysia later this year, higher R&D depreciation from recent equipment additions, and increased SG&A expenses. Non-GAAP operating expenses for the first quarter of 2025, down significantly from $54.4 million in the first quarter of 2024, primarily reflecting the benefits of cost reduction initiatives implemented over the past year.

GAAP net loss attributable to Enovix was $23.5 million in the first quarter of 2025, compared to $37.5 million in the previous quarter. As a reminder, GAAP net loss is impacted quarterly by changes in the fair value of common stock warrants, which resulted in a $15.8 million gain in the first quarter of 2025 compared to a $5.1 million expense in the fourth quarter of 2024.

Adjusted EBITDA loss was $22.2 million in the first quarter of 2025, compared to a loss of $14.3 million in the previous quarter. The sequential change was driven primarily by increased operating expenses, including the impact of additional hiring at sites in Asia.

GAAP net loss per share attributable to Enovix was $0.12 and non-GAAP net loss per share attributable to Enovix was $0.15, compared to $0.20 on a GAAP basis and $0.11 on a non-GAAP basis in the fourth quarter of 2024.

We exited the first quarter of 2025 with $248.2 million in cash, cash equivalents, and marketable securities, down from $272.9 million in the prior quarter primarily due to $16.9 million used in operating activities and $6.3 million in capital expenditures.

A full reconciliation of our GAAP to non-GAAP results is available later in this report.

Q2 2025 Financial Outlook

Looking ahead, based upon current business trends and conditions, we expect for the second quarter of 2025:

Revenue in the range of $4.5 million to $6.5 million (Q1 2025: $5.1 million)
Non-GAAP operating loss¹ in the range of $31 million to $37 million (Q1 2025: $29.4 million)
Adjusted EBITDA loss¹ in the range of $23 million to $29 million (Q1 2025: $22.2 million)
Non-GAAP net loss¹per share attributable to Enovix in the range of $0.15 to $0.21 (Q1 2025: $0.15)

¹ We are not presenting a quantitative reconciliation to the GAAP equivalents for non-GAAP operating loss, adjusted EBITDA loss and non-GAAP net loss per share attributable to Enovix, in reliance on the unreasonable efforts exception under Item 10(e)(1)(i)(B) of Regulation S-K. Further information is provided below under the heading “Non-GAAP Financial Measures.”

Summary

Enovix delivered strong operational progress during the first quarter of 2025, progressing Fab2 to an advanced stage of readiness for mass production. With product qualification activities underway with marquee customers, we are positioned to drive volume production, achieve key commercialization milestones, and build the foundation for expanded production scale in 2026. Our focus remains on disciplined execution as we transition to high-volume manufacturing and capitalize on the significant growth opportunities ahead.

Conference Call Information

Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM ET today, April 30, 2025, to discuss the company’s business updates and financial results. To join the call, participants must use the following link to register: https://enovix-q1-2025.open-exchange.net/registration This link will also be available via the Investor Relations section of the Enovix website at https://ir.enovix.com. An archived version of the call will be available on the Enovix website for one year at https://ir.enovix.com.

About Enovix

Enovix is on a mission to deliver high-performance batteries that unlock the full potential of technology products. Everything from IoT, mobile, and computing devices, to vehicles and headsets, needs a better battery. The company has developed an innovative, materials-agnostic approach to building a higher performing battery without compromising safety, and it partners with OEMs worldwide to usher in a new era of user experiences.

Enovix is headquartered in Silicon Valley with facilities in India, South Korea and Malaysia. For more information visit https://enovix.com and follow us on LinkedIn.

Non-GAAP Financial Measures

This shareholder letter includes the use of non-GAAP financial measures, which are intended to provide supplemental information regarding our performance. These non-GAAP measures include non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development expense, non-GAAP selling, general and administrative expense, non-GAAP operating expenses, non-GAAP operating income (loss), EBITDA, adjusted EBITDA, non-GAAP net income (loss) attributable to Enovix shareholders, non-GAAP earnings (loss) per share, free cash flow, and other non-GAAP measures.

We use these non-GAAP measures to supplement our financial reporting and to evaluate ongoing operations and results, facilitate internal planning and forecasting, and assess performance against prior periods, industry peers, and the broader market. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles (GAAP) and should not be considered as an alternative to GAAP results. Industry peers and other companies may calculate similar non-GAAP measures differently. Non-GAAP financial measures have limitations, including but not limited to, that they exclude certain expenses that are required under GAAP, which adjustments reflect the exercise of judgment by management. We believe that these non-GAAP measures, when considered together with the GAAP results, provide investors with an additional understanding of our operating performance. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the tables at the end of this shareholder letter.

While Enovix provides second quarter 2025 guidance for non-GAAP operating loss, adjusted EBITDA loss and non-GAAP net loss per share attributable to Enovix, we are unable to provide without unreasonable effort a GAAP to non-GAAP reconciliation of these projected non-GAAP measures, and we have not provided a quantitative reconciliation in reliance on the unreasonable efforts exception under Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliation to the corresponding GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjustments that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to change in fair value of common stock, stock-based compensation and related tax effects, acquisition-related costs, and restructuring costs. As a result, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

Forward-Looking Statements

This letter to shareholders contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to future events or our future financial or operating performance and are identified by words such as anticipate, believe, could, estimate, expect, intend, may, might, plan, possible, potential, predict, project, should, will, would and similar expressions.

Forward-looking statements in this letter to shareholders include, but are not limited to, statements regarding: (a) our future operating results, financial position, growth opportunities and guidance, and our anticipation that changes in the global trade environment do not pose a material risk to our outlook; (b) our commercialization plans, strategy and product development roadmap, including the readiness, performance, timing, and customer qualification of EX-1M, EX-2M, EX-3M, EX-4M, and other battery nodes; (c) our manufacturing strategy, including scale-up and operational readiness, including at Fab2 in Malaysia, our assets and facility expansion in South Korea and the anticipated benefits of the SolarEdge asset purchase, and our ability to enhance per-zone capacity and reduce switching time between configurations; (d) our internal benchmarking of energy density and competitive positioning, including our ability to maintain and expand a performance lead over other silicon-doped or conventional battery architectures, and our beliefs about our competitors’ inability to achieve further energy density enhancements using these techniques due to swelling; (e) customer interest, qualification activities, and expected adoption of our products across smartphone, smart eyewear, AI-powered devices, XR, handheld computing, defense, drone, IoT, and EV segments; (f) our ability to enter into or expand commercial agreements, including strategic partnerships, design wins, production contracts, and potential expansion of agreements with automotive OEMs; (g) the strategic value and potential for expansion of our acquired South Korea facility, and its role in supporting defense programs and Fab2 capacity; (h) the impact of seasonal purchasing patterns, including defense procurement cycles; (i) the impacts of tariffs, trade policies, and regional market developments on our business strategy and demand outlook; (j) anticipated trends, risks, and opportunities across our addressable markets and the broader economic environment, including interest rates, inflation, currency fluctuations, and global supply chain evolution; (k) the timing and ability to raise additional capital through equity, debt, or other instruments to support operations, growth initiatives, or capital expenditures; (l) the impact of AI feature adoption on demand for energy-dense batteries; (m) the timing and expected success of achieving technical milestones, including audits by OEMs, production ramp-up readiness, and securing purchase orders; and (n) our exposure to and management of global trade risks.

It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. For additional information on these risks and uncertainties and other potential factors that could cause actual results to differ from the results predicted, please refer to our filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K and quarterly reports on Form 10-Q and other documents that we have filed, or will file, with the SEC. These documents are available in the SEC Filings section of the Investor Relations page at https://ir.enovix.com and at www.sec.gov.

The financial results presented herein are preliminary and based on information known by management as of the date of this press release; final financial results will be included in the Company’s quarterly report on Form 10-Q for the fiscal quarter ended March 30, 2025. Any forward-looking statements in this letter to shareholders speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact:
Enovix Corporation
Robert Lahey
Email: ir@enovix.com

Media Contact:
Bateman Agency for Enovix
Kaelyn Attridge
Email: enovix@bateman.agency

Enovix Corporation Condensed Consolidated Balance Sheets (Unaudited) (In Thousands, Except Share and per Share Amounts)

	March 30, 2025			December 29, 2024
Assets
Current assets:
Cash and cash equivalents	$	189,874		$	272,869
Short-term investments		58,281			—
Accounts receivable, net		2,897			4,566
Notes receivable, net		1,255			4
Inventory		10,483			7,664
Prepaid expenses and other current assets		7,382			9,903
Total current assets		270,172			295,006
Property and equipment, net		165,775			167,947
Customer relationship intangibles and other intangibles, net		35,205			36,394
Operating lease, right-of-use assets		12,921			13,479
Goodwill		12,217			12,217
Other assets, non-current		2,755			2,126
Total assets	$	499,045		$	527,169
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	20,610		$	9,492
Accrued expenses		8,540			19,843
Accrued compensation		6,481			8,228
Short-term debt		10,367			9,452
Deferred revenue		6,630			3,650
Other liabilities		5,161			3,036
Total current liabilities		57,789			53,701
Long-term debt, net		169,185			169,820
Warrant liability		12,584			28,380
Operating lease liabilities, non-current		12,638			13,293
Deferred revenue, non-current		300			3,774
Deferred tax liability		8,751			8,784
Other liabilities, non-current		14			14
Total liabilities		261,261			277,766
Commitments and Contingencies
Stockholders’ equity:
Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 191,715,117 and 190,559,335 as of March 30, 2025 and December 29, 2024, respectively		19			19
Additional paid-in-capital		1,079,904			1,067,951
Accumulated other comprehensive loss		(184	)		(143	)
Accumulated deficit		(844,596	)		(821,086	)
Total Enovix stockholders’ equity		235,143			246,741
Non-controlling interest		2,641			2,662
Total equity		237,784			249,403
Total liabilities and equity	$	499,045		$	527,169

Enovix Corporation Condensed Consolidated Statements of Operations (Unaudited) (In Thousands, Except Share and per Share Amounts)

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
Revenue	$	5,098		$	5,272
Cost of revenue		4,837			7,072
Gross profit		261			(1,800	)
Operating expenses:
Research and development		25,929			48,788
Selling, general and administrative		16,892			19,548
Total operating expenses		42,821			68,336
Loss from operations		(42,560	)		(70,136	)
Other income (expense):
Change in fair value of common stock warrants		15,796			21,120
Interest income		2,434			3,560
Interest expense		(1,716	)		(1,659	)
Other income, net		2,353			466
Total other income, net		18,867			23,487
Loss before income tax benefit		(23,693	)		(46,649	)
Income tax benefit		(162	)		(152	)
Net loss		(23,531	)		(46,497	)
Net loss attributable to non-controlling interests		(21	)		(129	)
Net loss attributable to Enovix	$	(23,510	)	$	(46,368	)

Net loss per share attributable to Enovix shareholders, basic and diluted	$	(0.12	)	$	(0.28	)
Weighted average number of common shares outstanding, basic and diluted		191,304,975			168,144,918

Enovix Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In Thousands)

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
Cash flows used in operating activities:
Net loss	$	(23,531	)	$	(46,497	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation, accretion and amortization		8,448			24,974
Stock-based compensation		12,014			12,760
Changes in fair value of common stock warrants		(15,796	)		(21,120	)
Others		479			173
Changes in operating assets and liabilities:
Accounts and notes receivables		430			505
Inventory		(2,826	)		2,202
Prepaid expenses and other assets		2,440			(1,809	)
Accounts payable		4,420			(7,281	)
Accrued expenses and compensation		(4,167	)		2,845
Deferred revenue		(457	)		(1,402	)
Deferred tax liability		(33	)		(222	)
Other liabilities		1,672			(172	)
Net cash used in operating activities		(16,907	)		(35,044	)
Cash flows from investing activities:
Purchase of property and equipment		(6,272	)		(15,088	)
Payment of acquisition costs		(16	)		—
Purchases of investments		(58,083	)		(17,066	)
Maturities of investments		—			51,260
Net cash provided by (used in) investing activities		(64,371	)		19,106
Cash flows from financing activities:
Proceeds from issuance of Convertible Senior Notes and loans		—			1,800
Payments of transaction costs related to common stock issuance		(512	)		—
Payroll tax payments for shares withheld upon vesting of RSUs		(1,761	)		(2,222	)
Proceeds from the exercise of stock options and issuance of common stock under ATM, net of issuance costs		782			5,852
Net cash provided by (used in) financing activities		(1,491	)		5,430
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(228	)		(541	)
Change in cash, cash equivalents, and restricted cash		(82,997	)		(11,049	)
Cash and cash equivalents and restricted cash, beginning of period		274,691			235,123
Cash and cash equivalents, and restricted cash, end of period	$	191,694		$	224,074

EBITDA and Adjusted EBITDA Reconciliation

Below we provide a reconciliation of GAAP net loss attributable to Enovix to EBITDA and adjusted EBITDA for the periods presented (preliminary and unaudited) (in thousands).

We define EBITDA as net loss attributable to Enovix adjusted for interest expense, interest income, income tax benefit, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA further adjusted for stock-based compensation expense, change in fair value of common stock warrants, inventory step-up, import duty forgiveness, impairment of equipment and other special items not indicative of our core operating performance, as determined by management.

These non-GAAP measures may differ from similarly titled measures used by other companies.

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
Net loss attributable to Enovix	$	(23,510	)	$	(46,368	)
Interest income, net		(718	)		(1,901	)
Income tax benefit		(162	)		(152	)
Depreciation and amortization		8,448			24,974
EBITDA		(15,942	)		(23,447	)
Stock-based compensation expense		12,014			12,760
Change in fair value of common stock warrants		(15,796	)		(21,120	)
Inventory step-up		—			1,907
Import duty forgiveness		(2,431	)		—
Adjusted EBITDA	$	(22,155	)	$	(29,900	)

Reconciliation of Operating Loss to Non-GAAP Operating Loss and Adjusted EBITDA

Additionally, below is a reconciliation of GAAP operating loss to non-GAAP operating loss and adjusted EBITDA for the periods presented (preliminary and unaudited) (in thousands).

These non-GAAP measures may differ from similarly titled measures used by other companies.

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024

GAAP Operating Loss	$	(42,560	)	$	(70,136	)
Stock-based compensation expense		12,014			12,760
Amortization of intangible assets		1,190			1,172
Inventory step-up		—			1,907
Non-GAAP Operating Loss		(29,356	)		(54,297	)
Depreciation and amortization (excluding amortization of intangible assets)		7,258			23,802
Other income (loss), net (excluding import duty forgiveness)		(78	)		466
Net loss attributable to non-controlling interest		21			129
Adjusted EBITDA	$	(22,155	)	$	(29,900	)

Free Cash Flow Reconciliation

We define Free Cash Flow as net cash used in operating activities less capital expenditures, net of proceeds from disposals of property and equipment, each as reported in our consolidated statements of cash flows. Free Cash Flow is a non-GAAP financial measure and should not be considered an alternative to cash flows from operating activities as determined in accordance with GAAP.

We believe Free Cash Flow is a useful measure for investors because it provides insight into the cash generated or used by our operations after funding capital expenditures, and it helps assess our ability to pursue strategic growth initiatives. We use Free Cash Flow internally to evaluate performance, support decision-making, and measure our progress toward profitability and cash flow breakeven.

This non-GAAP measure may differ from similarly titled measures used by other companies.

Below is a reconciliation of net cash used in operating activities to the Free Cash Flow financial measure for the periods presented (preliminary and unaudited) (in thousands):

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
Net cash used in operating activities	$	(16,907	)	$	(35,044	)
Capital expenditures		(6,272	)		(15,088	)
Free Cash Flow	$	(23,179	)	$	(50,132	)

Other Non-GAAP Financial Measures Reconciliation
(In Thousands, Except Share and per Share Amounts)

These non-GAAP measures may differ from similarly titled measures used by other companies.

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
Revenue	$	5,098		$	5,272

GAAP cost of revenue	$	4,837		$	7,072
Stock-based compensation expense		(121	)		—
Inventory step-up		—			(1,907	)
Non-GAAP cost of revenue	$	4,716		$	5,165

GAAP gross profit	$	261		$	(1,800	)
Stock-based compensation expense		121			—
Inventory step-up		—			1,907
Non-GAAP gross profit	$	382		$	107

GAAP research and development (R&D) expense	$	25,929		$	48,788
Stock-based compensation expense		(6,355	)		(6,554	)
Amortization of intangible assets		(416	)		(416	)
Non-GAAP R&D expense	$	19,158		$	41,818

GAAP selling, general and administrative (SG&A) expense	$	16,892		$	19,548
Stock-based compensation expense		(5,538	)		(6,206	)
Amortization of intangible assets		(774	)		(756	)
Non-GAAP SG&A expense	$	10,580		$	12,586

GAAP operating expenses	$	42,821		$	68,336
Stock-based compensation expense included in R&D expense		(6,355	)		(6,554	)
Stock-based compensation expense included in SG&A expense		(5,538	)		(6,206	)
Amortization of intangible assets		(1,190	)		(1,172	)
Non-GAAP operating expenses	$	29,738		$	54,404

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
GAAP loss from operations	$	(42,560	)	$	(70,136	)
Stock-based compensation expense		12,014			12,760
Amortization of intangible assets		1,190			1,172
Inventory step-up		—			1,907
Non-GAAP loss from operations	$	(29,356	)	$	(54,297	)

GAAP net loss attributable to Enovix	$	(23,510	)	$	(46,368	)
Stock-based compensation expense		12,014			12,760
Change in fair value of common stock warrants		(15,796	)		(21,120	)
Amortization of intangible assets		1,190			1,172
Inventory step-up		—			1,907
Import duty forgiveness		(2,431	)		—
Non-GAAP net loss attributable to Enovix shareholders	$	(28,533	)	$	(51,649	)

GAAP net loss per share attributable to Enovix, basic and diluted	$	(0.12	)	$	(0.28	)
GAAP weighted average number of common shares outstanding, basic and diluted		191,304,975			168,144,918

Non-GAAP net loss per share attributable to Enovix, basic and diluted	$	(0.15	)	$	(0.31	)
GAAP weighted average number of common shares outstanding, basic and diluted		191,304,975			168,144,918

	Fiscal Quarter Ended
	December 29, 2024
GAAP net loss attributable to Enovix	$	(37,465	)
Stock-based compensation expense		10,207
Change in fair value of common stock warrants		5,115
Amortization of intangible assets		1,189
Non-GAAP net loss attributable to Enovix shareholders	$	(20,954	)

GAAP net loss per share attributable to Enovix, basic and diluted	$	(0.20	)
GAAP weighted average number of common shares outstanding, basic and diluted		184,971,942

Non-GAAP net loss per share attributable to Enovix, basic and diluted	$	(0.11	)
GAAP weighted average number of common shares outstanding, basic and diluted		184,971,942

The MIL Network –

May 1, 2025

MIL-OSI: Climb Global Solutions Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

EATONTOWN, N.J., April 30, 2025 (GLOBE NEWSWIRE) — Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb” or the “Company”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, is reporting results for the first quarter ended March 31, 2025.

First Quarter 2025 Summary vs. Same Year-Ago Quarter

Net sales increased 49% to $138.0 million.
Net income increased 35% to $3.7 million or $0.81 per diluted share.
Adjusted net income (a non-GAAP financial measure defined below) increased 39% to $3.9 million or $0.86 per diluted share.
Adjusted EBITDA (a non-GAAP financial measure defined below) increased 38% to $7.6 million.
Gross billings (a key operational metric defined below) increased 34% to $474.6 million. Distribution segment gross billings increased 36% to $453.6 million, and Solutions segment gross billings increased 2% to $21.0 million.

Management Commentary

“The momentum from our record 2024 has carried into the first quarter, leading to exceptional growth across all key financial metrics,” said CEO Dale Foster. “Our performance was driven by the execution of our core initiatives and the integration of Douglas Stewart Software & Services, LLC (“DSS”) into our operating platform. We drove organic growth in both the U.S. and Europe, demonstrating our ability to deepen relationships with existing partners while signing new, cutting-edge technologies to our line card across geographies.”

“Looking ahead, we believe that we are well-positioned to continue driving organic growth and further improving operating leverage. While still early, we expect the implementation of our new ERP system to drive meaningful efficiencies across our global operations. We also plan to remain active with M&A as we evaluate accretive targets that can enhance our comprehensive offerings and expand our presence in both North America and overseas. These initiatives, coupled with our robust balance sheet, will enable us to continue executing on our goals and objectives.”

Dividend

Subsequent to quarter end, on April 28, 2025, Climb’s Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable on May 16, 2025, to shareholders of record on May 12, 2025.

First Quarter 2025 Financial Results

Net sales in the first quarter of 2025 increased 49% to $138.0 million compared to $92.4 million for the same period in 2024. This reflects organic growth from new and existing vendors, as well as contribution from the Company’s acquisition of DSS on July 31, 2024. In addition, gross billings in the first quarter of 2025 increased 34% to $474.6 million compared to $355.3 million in the year-ago period.

Gross profit in the first quarter of 2025 increased 37% to $23.4 million compared to $17.0 million for the same period in 2024. The increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as contribution from DSS.

Selling, general, and administrative (“SG&A”) expenses in the first quarter of 2025 were $16.8 million compared to $12.5 million in the year-ago period. DSS represented $1.1 million of the increase. SG&A as a percentage of gross billings remained flat at 3.5% for the first quarter of 2025 compared to the year-ago period.

Net income in the first quarter of 2025 increased 35% to $3.7 million or $0.81 per diluted share, compared to $2.7 million or $0.60 per diluted share for the same period in 2024. Adjusted net income increased 39% to $3.9 million or $0.86 per diluted share, compared to $2.8 million or $0.62 per diluted share for the year-ago period.

Adjusted EBITDA in the first quarter of 2025 increased 38% to $7.6 million compared to $5.5 million for the same period in 2024. The increase was primarily driven by organic growth from both new and existing vendors, as well as contribution from the Company’s acquisition of DSS. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, increased 20 basis points to 32.7% compared to 32.5% for the same period in 2024.

On March 31, 2025, cash and cash equivalents were $32.5 million compared to $29.8 million on December 31, 2024, while working capital increased by $4.4 million during this period. The increase in cash was primarily attributed to the timing of receivable collections and payables. Climb had $0.6 million of outstanding debt on March 31, 2025, with no borrowings outstanding under its $50 million revolving credit facility.

For more information on the non-GAAP financial measures discussed in this press release, please see the section titled, “Non-GAAP Financial Measures,” and the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.

Conference Call

The Company will conduct a conference call tomorrow, May 1, 2025, at 8:30 a.m. Eastern time to discuss its results for the first quarter ended March 31, 2025.

Climb management will host the conference call, followed by a question-and-answer period.

Date: Thursday, May 1, 2025
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: (800) 267-6316
International dial-in number: (203) 518-9783
Conference ID: CLIMB
Webcast: Climb’s Q1 2025 Conference Call

If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.

The conference call will also be available for replay on the investor relations section of the Company’s website at www.climbglobalsolutions.com.

About Climb Global Solutions

Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies. Climb operates across the U.S., Canada and Europe through multiple business units, including Climb Channel Solutions, Grey Matter and Climb Global Services. The Company provides IT distribution and solutions for companies in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.

Additional information can be found by visiting www.climbglobalsolutions.com.

Non-GAAP Financial Measures

Climb Global Solutions uses non-GAAP financial measures, including adjusted net income and adjusted EBITDA, as supplemental measures of the performance of the Company’s business. Use of these financial measures has limitations, and you should not consider them in isolation or use them as substitutes for analysis of Climb’s financial results under generally accepted accounting principles in the United States of America (“U.S. GAAP”). The attached tables provide definitions of these measures and a reconciliation of each non-GAAP financial measure to the most nearly comparable measure under U.S. GAAP.

Key Operational Metric

Gross Billings

Gross billings are the total dollar value of customer purchases of goods and services during the period, net of customer returns and credit memos, sales, or other taxes. Gross billings include the transaction values for certain sales transactions that are recognized on a net basis, and, therefore, includes amounts that will not be recognized as revenue. We use gross billings as an operational metric to assess the volume of transactions or market share for our business as well as to understand changes in our accounts receivable and accounts payable. We believe gross billings will aid investors in the same manner.

Forward-Looking Statements

The statements in this release, other than statements of historical fact, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements are subject to certain risks and uncertainties. Many of the forward-looking statements may be identified by words such as ”look forward,” “believes,” “expects,” “intends,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “under construction,” “in development,” “opportunity,” “target,” “outlook,” “maintain,” “continue,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. In this press release, the forward-looking statements relate to, among other things, declaring and reaffirming our strategic goals, future operating results, and the effects and potential benefits of the strategic acquisition on our business. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include, without limitation, our ability to recognize the anticipated benefits of the acquisition of Douglas Stewart Software & Services, LLC, the continued acceptance of the Company’s distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, competitive pricing pressures, the successful integration of acquisitions, contribution of key vendor relationships and support programs, inflation, import and export tariffs, interest rate risk and impact thereof, as well as factors that affect the software industry in general. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described in the section entitled “Risk Factors” contained in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time in the Company’s filings with the Securities and Exchange Commission.

Company Contact

Matthew Sullivan
Chief Financial Officer
(732) 847-2451
MatthewS@ClimbCS.com

Investor Relations Contact

Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
CLMB@elevate-ir.com


CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands, except share and per share amounts)

	March 31, 2025			December 31, 2024

ASSETS

Current assets
Cash and cash equivalents	$	32,461		$	29,778
Accounts receivable, net of allowance for doubtful accounts of $734 and $588, respectively		240,230			341,597
Inventory, net		2,328			2,447
Prepaid expenses and other current assets		6,144			6,874
Total current assets		281,163			380,696

Equipment and leasehold improvements, net		13,264			12,853
Goodwill		35,675			34,924
Other intangibles, net		35,904			36,550
Right-of-use assets, net		1,841			1,965
Accounts receivable long-term, net		1,183			1,174
Other assets		715			824
Deferred income tax assets		308			193

Total assets	$	370,053		$	469,179

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities
Accounts payable and accrued expenses	$	266,452		$	370,397
Lease liability, current portion		688			654
Term loan, current portion		566			560
Total current liabilities		267,706			371,611

Lease liability, net of current portion		1,502			1,685
Deferred income tax liabilities		4,862			4,723
Term loan, net of current portion		48			191
Non-current liabilities		381			381

Total liabilities		274,499			378,591


Stockholders’ equity
Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,584,055 and 4,601,302 shares outstanding, respectively		53			53
Additional paid-in capital		39,532			37,977
Treasury stock, at cost, 700,445 and 683,198 shares, respectively		(14,397	)		(13,337	)
Retained earnings		71,705			68,787
Accumulated other comprehensive loss		(1,339	)		(2,892	)
Total stockholders’ equity		95,554			90,588
Total liabilities and stockholders’ equity	$	370,053		$	469,179

CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Amounts in thousands, except per share data)

	Three months ended
	March 31,
		2025			2024

Net Sales	$	138,044		$	92,422

Cost of sales		114,648			75,402

Gross profit		23,396			17,020


Selling, general and administrative expenses		16,755			12,523
Depreciation & amortization expense		1,737			871
Acquisition related costs		126			123
Total selling, general and administrative expenses		18,618			13,517

Income from operations		4,778			3,503

Interest, net		186			203
Foreign currency transaction loss		(580	)		(85	)
Change in fair value of acquisition contingent consideration		(136	)		–
Income before provision for income taxes		4,248			3,621
Provision for income taxes		564			890

Net income	$	3,684		$	2,731

Income per common share – Basic	$	0.81		$	0.60
Income per common share – Diluted	$	0.81		$	0.60

Weighted average common shares outstanding – Basic		4,497			4,438
Weighted average common shares outstanding – Diluted		4,497			4,438

Dividends paid per common share	$	0.17		$	0.17


Reconciliation of GAAP and Non-GAAP Financial Measures (unaudited)
(Amounts in thousands, except per share data)

The table below presents net income reconciled to adjusted EBITDA (Non-GAAP) (1):

	Three months ended
	March 31,			March 31,
		2025			2024

Net income	$	3,684		$	2,731
Provision for income taxes		564			890
Depreciation and amortization		1,737			871
Interest expense		69			101
EBITDA		6,054			4,593
Share-based compensation		1,323			822
Acquisition related costs		126			123
Change in fair value of acquisition contingent consideration		136			–
Adjusted EBITDA	$	7,639		$	5,538


	Three months ended
	March 31,			March 31,
Components of interest, net		2025			2024

Amortization of discount on accounts receivable with extended payment terms	$	(12	)	$	(6	)
Interest income		(243	)		(298	)
Interest expense		69			101
Interest, net	$	(186	)	$	(203	)

^{(1) We define adjusted EBITDA, as net income, plus provision for income taxes, depreciation, amortization, share-based compensation, interest, acquisition related costs and change in fair value of acquisition contingent consideration. We define effective margin as adjusted EBITDA as a percentage of gross profit. We provided a reconciliation of adjusted EBITDA to net income, which is the most directly comparable US GAAP measure. We use adjusted EBITDA as a supplemental measure of our performance to gain insight into our businesses profitability, operating performance and performance trends, and to provide management and investors a useful measure for period-to-period comparisons by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results. Adjusted EBITDA is also a component to our financial covenants in our credit facility. Our use of adjusted EBITDA has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, or similarly titled measures differently, which may reduce their usefulness as comparative measures.}

The table below presents net income reconciled to adjusted net income (Non-GAAP) (2):

	Three months ended
	March 31,		March 31,
		2025		2024

Net income	$	3,684	$	2,731
Acquisition related costs, net of income taxes		95		92
Change in fair value of acquisition contingent consideration		136		–
Adjusted net income	$	3,915	$	2,823

Adjusted net income per common share – diluted	$	0.86	$	0.62

^{(2) We define adjusted net income as net income excluding acquisition related costs, net of income taxes and the change in fair value of acquisition contingent consideration. We provided a reconciliation of adjusted net income to net income, which is the most directly comparable U.S. GAAP measure. We use adjusted net income and adjusted net income per common share as supplemental measures of our performance to gain insight into our businesses profitability, operating performance and performance trends, and to provide management and investors a useful measure for period-to-period comparisons by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that adjusted net income and adjust net income per common share provide useful information to investors and others in understanding and evaluating our operating results. Our use of adjusted net income has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. In addition, other companies, including companies in our industry, might calculate adjusted net income, or similarly titled measures differently, which may reduce their usefulness as comparative measures.}

The table below presents the operational metric of gross billings by segment (3):

	Three months ended
	March 31,		March 31,
		2025		2024

Distribution gross billings	$	453,575	$	334,636
Solutions gross billings		21,021		20,632
Total gross billings	$	474,596	$	355,268

^{(3) Gross billings are the total dollar value of customer purchases of goods and services during the period, net of customer returns and credit memos, sales, or other taxes. Gross billings include the transaction values for certain sales transactions that are recognized on a net basis, and, therefore, include amounts that will not be recognized as revenue. We use gross billings as an operational metric to assess the volume of transactions or market share for our business as well as to understand changes in our accounts receivable and accounts payable. We believe gross billings will aid investors in the same manner.}

The MIL Network –

May 1, 2025

MIL-OSI: Cipher Mining Announces Date of First Quarter 2025 Business Update Conference Call

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) — Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today announced it will provide a business update and release its first quarter 2025 financial results before U.S. markets open on Tuesday, May 6, 2025. Cipher will host a conference call and webcast that day at 8:00 a.m. Eastern Time.

The live webcast and a webcast replay of the conference call can be accessed from the investor relations section of Cipher’s website at https://investors.ciphermining.com. To access this conference call by telephone, register here to receive dial-in numbers and a unique PIN to join the call.

About Cipher
Cipher is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction and as a hosting partner to the world’s largest HPC companies. To learn more about Cipher, please visit https://www.ciphermining.com/.

Contacts:
Investor Contact:
Courtney Knight
Head of Investor Relations at Cipher Mining
Courtney.knight@ciphermining.com

Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.com

The MIL Network –

May 1, 2025

MIL-OSI: Robinhood Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Revenues up 50% year-over-year to $927 million
Net Deposits grow to a record $18.0 billion, and Robinhood Gold Subscribers reached a record 3.2 million
Net Income up 114% year-over-year to $336 million
Diluted EPS up 106% year-over-year to $0.37
Board of directors increases share repurchase authorization by $500 million to $1.5 billion

MENLO PARK, Calif., April 30, 2025 (GLOBE NEWSWIRE) — Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the first quarter of 2025, which ended March 31, 2025.

“This quarter, we significantly accelerated product innovation across our key initiatives, highlighted by the announcement of Robinhood Strategies, Banking, and Cortex,” said Vlad Tenev, Chair and CEO of Robinhood. “Customers have clearly responded — demonstrated by record-breaking net deposits, Robinhood Gold subscriptions, and options volume, as well as robust year-over-year growth in trading across all asset classes.”

“We started the year off strong, driving market share gains, closing the acquisition of TradePMR, and remaining disciplined on expenses,” said Jason Warnick, Chief Financial Officer of Robinhood. “As a result, in Q1 we grew revenues by 50 percent year-over-year and EPS by over 100 percent. It’s also great to see strong customer engagement to start Q2. Additionally, we continue to return capital to shareholders and increased our share repurchase authorization by $500 million to $1.5 billion, reflecting management and the board’s confidence in our financial strength and future growth prospects.”

First Quarter Results

Total net revenues increased 50% year-over-year to $927 million.
- Transaction-based revenues increased 77% year-over-year to $583 million, primarily driven by cryptocurrencies revenue of $252 million, up 100%, options revenue of $240 million, up 56%, and equities revenue of $56 million, up 44%.
- Net interest revenues increased 14% year-over-year to $290 million, primarily driven by growth in interest-earning assets and securities lending activity, partially offset by lower short-term interest rates.
- Other revenues increased 54% year-over-year to $54 million, primarily due to increased Robinhood Gold subscribers.
Net income increased 114% year-over-year to $336 million.
Diluted earnings per share (EPS) increased 106% year-over-year to $0.37.
Total operating expenses increased 21% year-over-year to $557 million.
- Adjusted Operating Expenses and Share-Based Compensation (SBC) (non-GAAP) increased 16% year-over-year to $533 million, which includes costs related to TradePMR.
Adjusted EBITDA (non-GAAP) increased 90% year-over-year to $470 million.
Funded Customers increased by 1.9 million, or 8%, year-over-year to 25.8 million.
- Investment Accounts increased by 2.6 million, or 11%, year-over-year to 27.0 million.
Total Platform Assets¹ increased 70% year-over-year to $221 billion, primarily driven by continued Net Deposits and the acquisition of TradePMR.
Net Deposits were $18.0 billion, an annualized growth rate of 37% relative to Total Platform Assets at the end of Q4 2024. Over the past twelve months, Net Deposits were $57.3 billion, a growth rate of 44% relative to Total Platform Assets at the end of Q1 2024.
Average Revenue Per User (ARPU) increased 39% year-over-year to $145.
Robinhood Gold Subscribers increased by 1.5 million, or 90%, year-over-year to 3.2 million.
Cash and cash equivalents totaled $4.4 billion compared with $4.7 billion at the end of Q1 2024.
Share repurchases were $322 million, representing 7.2 million shares of our Class A common stock at an average price per share of $44.87. This more than offset the 2.0 million shares of Class A common stock issued in connection with the acquisition of TradePMR.

__________________________________

¹ Total Platform Assets include $180 billion of Assets Under Custody and $41 billion of assets managed by Registered Investment Advisors (“RIAs”) using TradePMR’s platform that are not custodied by Robinhood. Refer to Key Performance Metrics for more detail.

Highlights

Robinhood executes on strategy with robust product velocity in Q1, releasing cutting-edge products for customers, with more in the pipeline

Enhanced Products for Active Traders – Robinhood continues to roll out advanced capabilities and tools for active traders aimed at making trading faster, clearer, and more intuitive. The desktop trading platform, Robinhood Legend, now features increased speed, support for index options and crypto, and new indicators and charts. In March, Robinhood expanded its prediction markets offering by launching a hub and giving customers the opportunity to trade on the outcomes of some of the world’s biggest events. Over the last six months customers have traded more than 1 billion event contracts.

Increasing Wallet Share by Serving the Entirety of Customers’ Financial Needs – During its second annual Gold keynote event in March, Robinhood unveiled new advisory, banking, and AI offerings: Robinhood Strategies, Robinhood Banking, and Robinhood Cortex. With plans to roll out to all customers in the coming weeks, Robinhood Strategies is already serving more than 40 thousand customers and managing more than $100 million in customer assets as of April 25, 2025. In February, Robinhood also closed its acquisition of TradePMR, an RIA custodial platform, with approximately $41 billion in assets managed by RIAs as of March 31, 2025.

Building a Global Financial Ecosystem – Robinhood continues to make progress internationally, with over 150 thousand customers across the UK and EU. The acquisition of globally-scaled cryptocurrency exchange Bitstamp Ltd. is on track to close in the middle of this year, subject to customary closing conditions.

Robinhood Board of Directors Authorizes Additional $500 million in Share Repurchases – Following the authorization of a $1 billion share repurchase program announced in May 2024, the Robinhood board of directors has authorized an additional $500 million, bringing the program total to $1.5 billion. Through April 25, 2025, 20 million shares of Class A common stock have been repurchased at an average price of $33.40, representing a total $667 million. The remaining authorization now totals approximately $833 million which management expects to execute over the next roughly two years, with flexibility to accelerate if market conditions warrant.

Additional Q1 2025 Operating Data

Robinhood Retirement AUC increased over 200% year-over-year to a record $14.4 billion.
Cash Sweep increased 48% year-over-year to a record $28.2 billion.
Margin Book increased 115% year-over-year to a record $8.8 billion.
Equity Notional Trading Volumes increased 84% year-over-year to $413 billion.
Options Contracts Traded increased 46% year-over-year to a record 500 million.
Crypto Notional Trading Volumes increased over 28% year-over-year to $46 billion.

Conference Call and Livestream Information

Robinhood will host a video call to discuss its results at 2 p.m. PT / 5 p.m. ET today, April 30, 2025. The video call can be accessed at investors.robinhood.com, along with the earnings press release and accompanying slide presentation. The event will also be live streamed to YouTube and X.com via Robinhood’s official channels, @RobinhoodApp.

Following the call, a replay and transcript will also be available at investors.robinhood.com.

Financial Outlook

The paragraph below provides information on our 2025 expense plan and outlook. We are not providing a 2025 outlook for total operating expenses and have not reconciled our 2025 outlook for Adjusted Operating Expenses and SBC to the most directly comparable GAAP financial measure, total operating expenses, because we are unable to predict with reasonable certainty the impact of certain items without unreasonable effort. These items include, but are not limited to, provision for credit losses and significant regulatory expenses which may be material and could have a significant impact on total operating expenses for 2025.

Our 2025 expense plan includes growth investments in new products, features, and international expansion while also getting more efficient in our existing businesses. Our initial outlook for combined Adjusted Operating Expenses and SBC for full-year 2025 provided at Q4 2024 Earnings (February 12, 2025) was $2.0 billion to $2.1 billion, which did not include expenses related to our acquisition of TradePMR. As a result of the acquisition closing in the first quarter, we are updating our outlook to $2.085 billion to $2.185 billion to include $85 million of anticipated costs related to TradePMR. This expense outlook does not include provision for credit losses, costs related to our pending acquisition of Bitstamp, potential significant regulatory matters, or other significant expenses (such as impairments, restructuring charges, and other business acquisition- or disposition-related expenses) that may arise or accruals we may determine in the future are required, as we are unable to accurately predict the size or timing of such matters, expenses or accruals at this time.

Actual results might differ materially from our outlook due to several factors, including the rate of growth in Funded Customers and our effectiveness to cross-sell products which affects variable marketing costs, the degree to which we are successful in managing credit losses and preventing fraud, and our ability to manage web-hosting expenses efficiently, among other factors. See “Non-GAAP Financial Measures” for more information on Adjusted Operating Expenses and SBC, including significant items that we believe are not indicative of our ongoing expenses that would be adjusted out of total operating expenses (GAAP) to get to Adjusted Operating Expenses and SBC (non-GAAP) should they occur.

About Robinhood

Robinhood Markets, Inc. (NASDAQ: HOOD) transformed financial services by introducing commission-free stock trading and democratizing access to the markets for millions of investors. Today, Robinhood lets you trade stocks, options, futures (which includes options on futures, swaps, and event contracts), and crypto, invest for retirement, and earn with Robinhood Gold. Headquartered in Menlo Park, California, Robinhood puts customers in the driver’s seat, delivering unprecedented value and products intentionally designed for a new generation of investors. Additional information about Robinhood can be found at www.robinhood.com.

Robinhood uses the “Overview” tab of its Investor Relations website (accessible at investors.robinhood.com/overview) and its Newsroom (accessible at newsroom.aboutrobinhood.com), as means of disclosing information to the public in a broad, non-exclusionary manner for purposes of the U.S. Securities and Exchange Commission’s (“SEC”) Regulation Fair Disclosure (Reg. FD). Investors should routinely monitor those web pages, in addition to Robinhood’s press releases, SEC filings, and public conference calls and webcasts, as information posted on them could be deemed to be material information.

“Robinhood” and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc. All other names are trademarks and/or registered trademarks of their respective owners.

Contacts

Investors: ir@robinhood.com	Press: press@robinhood.com

ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


	December 31,			March 31,
(in millions, except share and per share data)	2024			2025
Assets
Current assets:
Cash and cash equivalents	$	4,332		$	4,416
Cash, cash equivalents, and securities segregated under federal and other regulations		4,724			4,442
Receivables from brokers, dealers, and clearing organizations		471			267
Receivables from users, net		8,239			9,167
Securities borrowed		3,236			4,114
Deposits with clearing organizations		489			641
User-held fractional shares		2,530			2,531
Held-to-maturity investments		398			192
Prepaid expenses		75			89
Deferred customer match incentives		100			113
Other current assets		509			243
Total current assets		25,103			26,215
Property, software, and equipment, net		139			140
Goodwill		179			292
Intangible assets, net		38			109
Non-current deferred customer match incentives		195			238
Other non-current assets, including non-current prepaid expenses of $17 as of December 31, 2024 and March 31, 2025		533			523
Total assets	$	26,187		$	27,517
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses	$	397		$	319
Payables to users		7,448			7,116
Securities loaned		7,463			9,098
Fractional shares repurchase obligation		2,530			2,531
Other current liabilities		266			367
Total current liabilities		18,104			19,431
Other non-current liabilities		111			133
Total liabilities		18,215			19,564
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value. 210,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and March 31, 2025.		—			—
Class A common stock, $0.0001 par value. 21,000,000,000 shares authorized, 764,903,997 shares issued and outstanding as of December 31, 2024; 21,000,000,000 shares authorized, 767,854,773 shares issued and outstanding as of March 31, 2025.		—			—
Class B common stock, $0.0001 par value. 700,000,000 shares authorized, 119,588,986 shares issued and outstanding as of December 31, 2024; 700,000,000 shares authorized, 116,720,012 shares issued and outstanding as of March 31, 2025.		—			—
Class C common stock, $0.0001 par value. 7,000,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and March 31, 2025.		—			—
Additional paid-in capital		12,008			11,652
Accumulated other comprehensive loss		(1	)		—
Accumulated deficit		(4,035	)		(3,699	)
Total stockholders’ equity		7,972			7,953
Total liabilities and stockholders’ equity	$	26,187		$	27,517

ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended March 31,						Three Months Ended December 31,
(in millions, except share, per share, and percentage data)	2024		2025		YOY% Change		2024			QOQ% Change
Revenues:
Transaction-based revenues	$	329	$	583	77	%	$	672		(13	)%
Net interest revenues		254		290	14	%		296		(2	)%
Other revenues		35		54	54	%		46		17	%
Total net revenues		618		927	50	%		1,014		(9	)%

Operating expenses⁽¹⁾⁽²⁾:
Brokerage and transaction		35		50	43	%		50		—	%
Technology and development		196		214	9	%		208		3	%
Operations		28		31	11	%		29		7	%
Provision for credit losses		16		24	50	%		19		26	%
Marketing		67		105	57	%		82		28	%
General and administrative		118		133	13	%		70		90	%
Total operating expenses		460		557	21	%		458		22	%

Other income, net		4		1	(75	)%		2		(50	)%
Income before income taxes		162		371	129	%		558		(34	)%
Provision for (benefit from) income taxes		5		35	600	%		(358	)	NM
Net income	$	157	$	336	114	%	$	916		(63	)%
Net income attributable to common stockholders:
Basic	$	157	$	336			$	916
Diluted	$	157	$	336			$	916
Net income per share attributable to common stockholders:
Basic	$	0.18	$	0.38			$	1.04
Diluted	$	0.18	$	0.37			$	1.01
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		875,319,407		884,577,603				883,884,676
Diluted		895,779,155		909,241,619				907,767,796

ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

________________
⁽¹⁾ The following table presents operating expenses as a percent of total net revenues:

	Three Months Ended March 31,				Three Months Ended December 31,
	2024		2025		2024
Brokerage and transaction	5	%	6	%	5	%
Technology and development	32	%	23	%	20	%
Operations	5	%	3	%	3	%
Provision for credit losses	2	%	3	%	2	%
Marketing	11	%	11	%	8	%
General and administrative	19	%	14	%	7	%
Total operating expenses	74	%	60	%	45	%

⁽²⁾ The following table presents the SBC on our unaudited condensed consolidated statements of operations for the periods indicated:

	Three Months Ended March 31,				Three Months Ended December 31,
(in millions)	2024		2025		2024
Brokerage and transaction	$	2	$	2	$	2
Technology and development		44		44		48
Operations		2		1		2
Marketing		2		2		2
General and administrative		12		24		23
Total SBC	$	62	$	73	$	77

ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Three Months Ended March 31,
(in millions)	2024			2025
Operating activities:
Net income	$	157		$	336
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		17			20
Provision for credit losses		16			24
Share-based compensation		62			73
Other		—			4
Changes in operating assets and liabilities:
Securities segregated under federal and other regulations		(692	)		397
Receivables from brokers, dealers, and clearing organizations		(118	)		206
Receivables from users, net		(796	)		(911	)
Securities borrowed		(505	)		(878	)
Deposits with clearing organizations		(247	)		(152	)
Current and non-current prepaid expenses		—			(13	)
Current and non-current deferred customer match incentives		(74	)		(56	)
Other current and non-current assets		(83	)		351
Accounts payable and accrued expenses		(46	)		(124	)
Payables to users		977			(332	)
Securities loaned		668			1,635
Other current and non-current liabilities		41			62
Net cash provided by (used in) operating activities		(623	)		642
Investing activities:
Purchases of property, software, and equipment		(2	)		(2	)
Capitalization of internally developed software		(7	)		(9	)
Business acquisition, net of cash and cash equivalents acquired		—			(150	)
Purchases of held-to-maturity investments		(171	)		—
Proceeds from maturities of held-to-maturity investments		154			208
Purchases of credit card receivables by Credit Card Funding Trust		(29	)		(549	)
Collections of purchased credit card receivables		11			511
Asset acquisition, net of cash acquired		(3	)		—
Net cash provided by (used in) investing activities		(47	)		9
Financing activities:
Proceeds from exercise of stock options		4			7
Taxes paid related to net share settlement of equity awards		(40	)		(120	)
Repurchase of Class A common stock		—			(322	)
Borrowings by the Credit Card Funding Trust		17			24
Change in principal collected from customers due to Coastal Bank		3			10
Payments of debt issuance costs		(14	)		(16	)
Net cash used in financing activities		(30	)		(417	)
Effect of foreign exchange rate changes on cash and cash equivalents		—			1
Net increase (decrease) in cash, cash equivalents, segregated cash, and restricted cash		(700	)		235
Cash, cash equivalents, segregated cash, and restricted cash, beginning of the period		9,346			8,695
Cash, cash equivalents, segregated cash, and restricted cash, end of the period	$	8,646		$	8,930
Reconciliation of cash, cash equivalents, segregated cash and restricted cash, end of the period:
Cash and cash equivalents, end of the period	$	4,717		$	4,416
Segregated cash and cash equivalents, end of the period		3,829			4,442
Restricted cash in other current assets, end of the period		83			54
Restricted cash in other non-current assets, end of the period		17			18
Cash, cash equivalents, segregated cash and restricted cash, end of the period	$	8,646		$	8,930
Supplemental disclosures:
Cash paid for interest	$	7		$	9
Cash paid for income taxes, net of refund received	$	2		$	29

Reconciliation of GAAP to Non-GAAP Results
(Unaudited)

	Three Months Ended March 31,						Three Months Ended December 31,
(in millions, except for percentage data)	2024			2025			2024
Net income	$	157		$	336		$	916
Net margin		25	%		36	%		90	%
Add:
Interest expenses related to credit facilities		6			6			6
Provision for (benefit from) income taxes		5			35			(358	)
Depreciation and amortization		17			20			22
EBITDA (non-GAAP)		185			397			586
Add:
SBC		62			73			77
Significant legal and tax settlements and reserves⁽¹⁾		—			—			(50	)
Adjusted EBITDA (non-GAAP)	$	247		$	470		$	613
Adjusted EBITDA margin (non-GAAP)		40	%		51	%		60	%

	Three Months Ended March 31,				Three Months Ended December 31,
(in millions)	2024		2025		2024
Total operating expenses (GAAP)	$	460	$	557	$	458
Less:
SBC		62		73		77
Provision for credit losses⁽²⁾		—		24		—
Significant legal and tax settlements and reserves⁽¹⁾		—		—		(50	)
Adjusted Operating Expenses (Non-GAAP)	$	398	$	460	$	431

	Three Months Ended March 31,				Three Months Ended December 31,
(in millions)	2024		2025		2024
Total operating expenses (GAAP)	$	460	$	557	$	458
Less:
SBC		62		73		77
Provision for credit losses⁽²⁾		—		24		—
Significant legal and tax settlements and reserves⁽¹⁾		—		—		(50	)
Adjusted Operating Expenses (Non-GAAP)		398		460		431
Add:
SBC		62		73		77
Adjusted Operating Expenses and SBC (Non-GAAP)	$	460	$	533		508

________________

⁽¹⁾ Amounts for the three months ended December 31, 2024 included a $55 million benefit due to a reversal of an accrual as part of a regulatory settlement.
⁽²⁾ Starting in Q1 2025, Adjusted Operating Expenses and Adjusted Operating Expenses and SBC no longer include provision for credit losses.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding the expected financial performance of Robinhood Markets, Inc. and its consolidated subsidiaries (“we,” “Robinhood,” or the “Company”) and our strategic and operational plans, including (among others) statements regarding that our increased share repurchase authorization reflects management and the board’s confidence in our financial strength and future growth prospects; that we’re releasing cutting-edge products for customers with more in the pipeline; that Robinhood Strategies, Robinhood Banking, and Robinhood Cortex will connect customers to a world-class financial team; that the Robinhood Gold Credit Card continues to roll out to customers; that the acquisition of Bitstamp Ltd. is on track to close in the middle of this year, subject to customary closing conditions; that management expects to execute the remaining share repurchase authorization over the next roughly two years, with flexibility to accelerate if market conditions warrant; and all statements and information under the heading “Financial Outlook”. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “believe,” “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this press release. Reported results should not be considered an indication of future performance. Factors that contribute to the uncertain nature of our forward-looking statements include, among others: our rapid and continuing expansion, including continuing to introduce new products and services on our platforms as well as geographic expansion; the difficulty of managing our business effectively, including the size of our workforce, and the risk of declining or negative growth; the fluctuations in our financial results and key metrics from quarter to quarter; our reliance on transaction-based revenue, including payment for order flow (“PFOF”), the risk of new regulation or bans on PFOF and similar practices, and the addition of our new fee-based model for cryptocurrency; our exposure to fluctuations in interest rates and rapidly changing interest rate environments; the difficulty of raising additional capital (to provide liquidity needs and support business growth and objectives) on reasonable terms, if at all; the need to maintain capital levels required by regulators and self-regulatory organizations; the risk that we might mishandle the cash, securities, and cryptocurrencies we hold on behalf of customers, and our exposure to liability for processing, operational, or technical errors in clearing functions; the impact of negative publicity on our brand and reputation; the risk that changes in business, economic, or political conditions that impact the global financial markets, or a systemic market event, might harm our business; our dependence on key employees and a skilled workforce; the difficulty of complying with an extensive, complex, and changing regulatory environment and the need to adjust our business model in response to new or modified laws and regulations; the possibility of adverse developments in pending litigation and regulatory investigations; the effects of competition; our need to innovate and acquire or invest in new products, services, technologies, and geographies in order to attract and retain customers and deepen their engagement with us in order to maintain growth; our reliance on third parties to perform some key functions and the risk that processing, operational or technological failures could impair the availability or stability of our platforms; the risk of cybersecurity incidents, theft, data breaches, and other online attacks; the difficulty of processing customer data in compliance with privacy laws; our need as a regulated financial services company to develop and maintain effective compliance and risk management infrastructures; the risks associated with incorporating artificial intelligence technologies into some of our products and processes; the volatility of cryptocurrency prices and trading volumes; the risk that our platforms and services could be exploited to facilitate illegal payments; and the risk that substantial future sales of Class A common stock in the public market, or the perception that they may occur, could cause the price of our stock to fall. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results can be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, as well as in our other filings with the SEC, all of which are available on the SEC’s web site at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible for us to predict all risks nor identify all uncertainties. The events and circumstances reflected in our forward-looking statements might not be achieved and actual results could differ materially from those projected in the forward-looking statements. Except as otherwise noted, all forward-looking statements in this press release are made as of the date of this press release, April 30, 2025, and are based on information and estimates available to us at this time. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by law, Robinhood assumes no obligation to update any of the statements in this press release whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this press release with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.

Non-GAAP Financial Measures

We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and assess our performance. In addition to total net revenues, net income, and other results under GAAP, we utilize non-GAAP calculations of adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), Adjusted EBITDA Margin, Adjusted Operating Expenses, and Adjusted Operating Expenses and SBC. This non-GAAP financial information is presented for supplemental informational purposes only, should not be considered in isolation or as a substitute for, or superior to, financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this press release.

Adjusted EBITDA

Adjusted EBITDA is defined as net income, excluding (i) interest expenses related to credit facilities, (ii) provision for (benefit from) income taxes, (iii) depreciation and amortization, (iv) SBC, (v) significant legal and tax settlements and reserves, and (vi) other significant gains, losses, and expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing results.

The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, Adjusted EBITDA is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

Adjusted EBITDA Margin

Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total net revenues. The most directly comparable GAAP measure is net margin (calculated as net income divided by total net revenues). We believe Adjusted EBITDA Margin provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Adjusted EBITDA Margin is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

Adjusted Operating Expenses

Adjusted Operating Expenses is defined as GAAP total operating expenses minus (i) SBC, (ii) provision for credit losses, (iii) significant legal and tax settlements and reserves, and (iv) other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing expenses. The amount and timing of the excluded items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods less meaningful. We believe Adjusted Operating Expenses provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our cost structure. Adjusted Operating Expenses is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. Starting in Q1 2025, Adjusted Operating Expenses no longer includes provision for credit losses.

Adjusted Operating Expenses and SBC

Adjusted Operating Expenses and SBC is defined as GAAP total operating expenses minus (i) provision for credit losses, (ii) significant legal and tax settlements and reserves, and (iii) other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses), that we believe are not indicative of our ongoing expenses. The amount and timing of the excluded items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods less meaningful. Unlike Adjusted Operating Expenses, Adjusted Operating Expenses and SBC does not adjust for SBC. We believe Adjusted Operating Expense and SBC provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our cost structure. Adjusted Operating Expenses and SBC is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. Starting in Q1 2025, Adjusted Operating Expenses and SBC no longer includes provision for credit losses.

Key Performance Metrics

In addition to the measures presented in our unaudited condensed consolidated financial statements, we use the following key performance metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

Our acquisition of TradePMR closed in February 2025. As a result, we are now reporting Total Platform Assets which includes our previously reported Assets Under Custody key performance metric. Total Platform Assets is our previously reported Assets Under Custody metric plus assets managed by RIAs using TradePMR’s platform that are not custodied by us (and therefore would not have been included in the previously reported Assets Under Custody metric). Additionally, we have included total RIA customers in our Funded Customers key performance metric, their accounts in the definition of Investment Accounts, and the appropriate RIA customer balances in our Cash Sweep and Margin Book additional operating metrics. RIA client figures are not included in Robinhood Retirement AUC. Due to data limitations, we have not included RIA client figures in our Net Deposits key performance metric.

Assets Under Custody

We define Assets Under Custody as the fair value of all equities, options, cryptocurrency, futures (including options on futures, swaps, and event contracts), and cash held by users in their accounts, net of receivables from users, as of a stated date or period end on a trade date basis. As mentioned above, we introduced a new Key Performance Metric called Total Platform Assets, which includes Assets Under Custody and is defined below.

Funded Customers

We define a Funded Customer as a unique person who has at least one account with a Robinhood entity and, within the past 45 calendar days (a) had an account balance that was greater than zero (excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) or (b) completed a transaction using any such account. Individuals who share a funded joint investing account (which launched in July 2024) are each considered to be a Funded Customer. Individuals who are customers of RIAs that use the TradePMR platform are also considered Funded Customers as of the end of the period.

Total Platform Assets

We define Total Platform Assets as the sum of the fair value of all equities, options, cryptocurrency, futures (including options on futures, swaps, and event contracts), cash held by users in their accounts, net of receivables from users (previously reported as Assets Under Custody), and any such assets managed by RIAs using TradePMR’s platform that are not custodied by Robinhood, as of a stated date or period end on a trade date basis. Net Deposits and net market gains (losses) drive the change in Total Platform Assets in any given period.

Net Deposits

We define Net Deposits as all cash deposits and asset transfers from customers, as well as dividends, interest, and cash or assets earned in connection with Company promotions (such as account transfer and retirement match incentives and free stock bonuses) received by customers, net of reversals, customer cash withdrawals, margin interest, Robinhood Gold subscription fees, and assets transferred off of our platforms for a stated period. Prior to the second quarter of 2024, Net Deposits did not include inflows from cash or assets earned in connection with Company promotions, although we have not restated amounts in prior periods as the impact to those figures was immaterial.

Average Revenue Per User (“ARPU”)

We define ARPU as total revenue for a given period divided by the average number of Funded Customers on the last day of that period and the last day of the immediately preceding period. Figures in this press release represent ARPU annualized for each three-month period presented.

Robinhood Gold Subscribers

We define a Robinhood Gold Subscriber as a unique person who has at least one account with a Robinhood entity and who, as of the end of the relevant period (a) is subscribed to Robinhood Gold and (b) has made at least one Robinhood Gold subscription fee payment.

Additional Operating Metrics

Robinhood Retirement AUC

We define Robinhood Retirement AUC as the total Assets Under Custody in traditional individual retirement accounts (“IRAs”) and Roth IRAs. This does not include accounts with an RIA using TradePMR’s platform.

Cash Sweep

We define Cash Sweep as the period-end total amount of participating users’ uninvested brokerage cash that has been automatically “swept” or moved from their brokerage accounts into deposits for their benefit at a network of program banks. This is an off-balance-sheet amount. Robinhood earns a net interest spread on Cash Sweep balances based on the interest rate offered by the banks less the interest rate given to users as stated in our program terms. This includes balances from customers of RIAs using TradePMR’s platform.

Margin Book

We define Margin Book as our period-end aggregate outstanding margin loan balances receivable (i.e., the period-end total amount we are owed by customers on loans made for the purchase of securities, supported by a pledge of assets in their margin-enabled brokerage accounts). This includes margin loan balances from customers of RIAs using TradePMR’s platform.

Notional Trading Volume

We define Notional Trading Volume or Notional Volume for any specified asset class as the aggregate dollar value (purchase price or sale price as applicable) of trades executed in that asset class over a specified period of time.

Options Contracts Traded

We define Options Contracts Traded as the total number of options contracts bought or sold over a specified period of time. Each contract generally entitles the holder to trade 100 shares of the underlying stock.

Glossary Terms

Investment Accounts

We define an Investment Account as a funded individual brokerage account, a funded joint investing account, a funded IRA, or an account with an RIA using TradePMR’s platform. As of March 31, 2025, a Funded Customer can have up to five Investment Accounts – individual brokerage account, joint investing account (which launched in July 2024), traditional IRA, Roth IRA, and RIA custody account using TradePMR’s platform.

Robinhood Gold Adoption Rate

We define the Robinhood Gold adoption rate as end of period Robinhood Gold Subscribers divided by end of period Funded Customers.

Growth Rate and Annualized Growth Rate with respect to Net Deposits

Growth rate is calculated as aggregate Net Deposits over a specified 12 month period, divided by Total Platform Assets for the fiscal quarter that immediately precedes such 12 month period. Annualized growth rate is calculated as Net Deposits for a specified quarter multiplied by 4 and divided by Total Platform Assets for the immediately preceding quarter.

The MIL Network –

May 1, 2025

MIL-OSI: Pathfinder Bancorp, Inc. Announces Financial Results for First Quarter 2025

Source: GlobeNewswire (MIL-OSI)

OSWEGO, N.Y., April 30, 2025 (GLOBE NEWSWIRE) — Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the first quarter ended March 31, 2025.

The holding company for Pathfinder Bank (“the Bank”) earned net income attributable to common shareholders of $3.0 million or $0.41 per diluted share in the first quarter of 2025, compared to $2.1 million or $0.34 per share in the first quarter of 2024. In the fourth quarter of 2024, the Company reported net income attributable to common shareholders of $3.9 million or $0.63 per share, and included a benefit of approximately $1.4 million from a gain on the sale of its insurance agency, net of taxes and transaction-related expenses.

First Quarter 2025 Highlights and Key Developments

Total deposits were $1.26 billion at period end, and grew by 5.0% in the first quarter and 10.3% from March 31, 2024. Core deposits also grew to 78.31% of total deposits at period end from 76.86% on December 31, 2024 and 69.17% on March 31, 2024. In addition to funding lending activity in the quarter, the Company’s low-cost deposits enabled reductions in higher-cost borrowings to $44.6 million at period end, down 49.3% in the first quarter and 67.5% from March 31, 2024.
Total loans were $912.2 million at period end, compared to $919.0 million on December 31, 2024 and $891.5 million on March 31, 2024. Commercial loans were $542.7 million or 59.5% of total loans at period end, compared to $539.7 million on December 31, 2024 and $525.6 million on March 31, 2024.
Nonperforming loans declined to $13.2 million at period end, and improved by 40.1% during the first quarter and 32.7% from March 31, 2024. Nonperforming loans also declined to 1.45% of total loans at period end, and improved from 2.40% on December 31, 2024 and 2.20% on March 31, 2024.
Net interest income was $11.4 million, and increased $1.0 million from the linked quarter and $2.0 million from the first quarter of 2024, while net interest margin (“NIM”) expanded to 3.31% from 3.02% in the fourth quarter of 2024 and 2.75% in the year-ago period. Approximately $347,000 of net interest income and 10 basis points of NIM in the first quarter of 2025 reflected 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees.
Pre-tax, pre-provision (“PTPP”) net income grew to $4.2 million, and increased 26.0% from the linked quarter and 16.9% from the year-ago period. PTPP net income, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses.
The efficiency ratio improved to 66.84%, down from 72.01% in the linked quarter and 68.29% in the year-ago period. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

“Pathfinder’s solid first quarter results reflect the strength of our balance sheet and our growing core deposit franchise. Our continued focus on disciplined loan and deposit pricing has helped expand net interest margin in a challenging economic environment while our efforts toward optimizing non-interest expenses have improved our efficiency measures,” said President and Chief Executive Officer James A. Dowd. “We remain deeply committed to strengthening our proactive credit risk management practices and view our current efforts as the beginning of a sustained, long-term strategy to enhance the quality of our loan portfolio.”

Dowd added, “Our strong results this year and the close relationships we’ve built with businesses and neighbors throughout Central New York give us good reason to feel optimistic. Major investments in our region’s growing tech sector are creating new opportunities, and we’re proud to be part of that momentum. At the same time, we’re staying close to our customers and keeping a careful eye on how recent economic changes and national policy decisions are affecting families and local businesses across our communities.”

Net Interest Income and Net Interest Margin
First quarter 2025 net interest income was $11.4 million, an increase of $1.0 million, or 10.0%, from the fourth quarter of 2024. A decrease in interest and dividend income of $85,000 from the linked quarter was primarily attributed to average yield decreases of 43 basis points on tax-exempt investment securities and 25 basis points on taxable investment securities, partially offset by a 10 basis points increase in the average yield on loans that included 15 basis points from 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees. The corresponding decreases in income from tax-exempt and taxable investment securities from the linked quarter were $43,000 and $198,000, respectively. The increase in interest from loans of $149,000 from the prior quarter reflected a benefit of approximately $347,000, including $247,000 of 2024 interest recovered from loans removed from nonaccrual status and $100,000 of first quarter 2025 prepayment fees.

A decrease in interest expense of $1.1 million from the linked quarter was primarily attributed to average cost decreases of 36 basis points for interest-bearing deposits and 143 basis points for borrowings. The corresponding decreases in deposits and borrowings expense from the linked quarter were $878,000 and $226,000, respectively. These reductions reflect continued changes in the Bank’s funding mix, including growing core deposits, as well as deliberate deposit pricing adjustments and significant reductions in borrowings.

Net interest margin was 3.31% in the first quarter of 2025 compared to 3.02% in the linked quarter. The increase reflected significant reductions in deposit and borrowing costs, as well as a benefit of 10 basis points from 2024 recovered interest and first quarter 2025 prepayment fees.

Noninterest Income
First quarter 2025 noninterest income totaled $1.2 million and no longer includes contributions from the insurance agency business sold in October 2024. Linked quarter noninterest income totaled $4.9 million, including $3.2 million in non-recurring pre-tax gains and revenues associated with the sale of the Company’s insurance agency in 2024. First quarter 2024 noninterest income totaled $1.7 million, including $397,000 in insurance revenue.

Compared to the linked quarter, first quarter 2025 noninterest income reflected a reduction of $264,000 in debit card interchange fees driven by $158,000 of non-recurring catch up expenses and seasonal reductions estimated at $100,000, as well as decreases of $31,000 in service charges on deposit accounts and $7,000 in earnings and gain on bank owned life insurance (“BOLI”). Compared to the linked quarter, first quarter 2025 noninterest income also reflected increases of $52,000 in net realized gains on sales of marketable equity securities and $26,000 in gains on sales of loans and foreclosed real estate, as well as a decrease of $257,000 in net realized gains on sales and redemptions of investment securities.

Compared to the year-ago period, first quarter 2025 noninterest income included increases of $65,000 in service charges on deposit accounts, $13,000 in loan servicing fees, and $5,000 in earnings and gain on BOLI, as well as a decline of $118,000 in debit card interchange fees driven by $158,000 of non-recurring catch up expenses related to prior periods. Noninterest income growth from the year-ago quarter also reflected a $140,000 decrease in net realized losses on sales and redemptions of investment securities and increases of $110,000 in net realized gains on sales of marketable equity securities and $47,000 in gains on sales of loans and foreclosed real estate.

Noninterest Expense
Noninterest expense totaled $8.4 million in the first quarter of 2025 and no longer includes costs for the insurance agency business sold in October 2024. Noninterest expense was $8.5 million in the linked quarter and $7.7 million in the year-ago period, including expenses associated with the insurance agency of $456,000 and $285,000, respectively.

Salaries and benefits were $4.5 million in the first quarter of 2025, increasing $327,000 from the linked quarter and $121,000 from the year-ago period. The increase from the linked quarter reflected a $174,000 increase in stock-based compensation and a $96,000 increase in payroll tax. The increase from the first quarter of 2024 was primarily attributed to a $95,000 increase in stock-based compensation and $123,000 in other salary and benefits expenses associated with personnel in the East Syracuse branch acquired in July 2024.

Building and occupancy was $1.3 million in the first quarter of 2025, increasing $93,000 and $531,000 from the linked and year-ago quarters, respectively. The increase from the linked quarter reflected an $89,000 seasonal increase in utilities and snow removal expenses. The increase from the first quarter of last year was primarily due to ongoing facilities-related costs associated with operating the East Syracuse branch acquired in July 2024.

Data processing expense was $666,000 in the first quarter of 2025, decreasing $55,000 from the linked quarter and increasing $138,000 from the year-ago period. The decrease from the fourth quarter of 2024 was primarily attributed to a $42,000 ATM processing expense for new customer card issuances. The increase from the first quarter of 2024 was primarily attributed to the ongoing operations of the East Syracuse branch acquired in July 2024.

Annualized noninterest expense represented 2.33% of average assets in the first quarter of 2025, compared to 2.33% and 2.16% in the linked and year-ago periods, including costs associated with transactions of the divested insurance agency business. The efficiency ratio was 66.84% in the first quarter of 2025, compared to 72.01% and 68.29% in the linked and year-ago periods. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

Net Income
For the first quarter of 2025, net income attributable to common shareholders was $3.0 million, or $0.48 per basic share and $0.41 per diluted share. The difference between basic and diluted earnings per share reflects the accounting impact of restricted stock units granted to senior executive officers during the period under the 2024 Equity Incentive Plan, which was approved by shareholders at the 2024 annual meeting. Linked quarter net income was $3.9 million, including a net benefit of approximately $1.4 million from the gain on the sale of its insurance agency, or $0.63 per basic and diluted share. First quarter 2024 net income totaled $2.2 million or $0.34 per basic and diluted share.

Statement of Financial Condition
As of March 31, 2025, the Company’s statement of financial condition reflects total assets of $1.50 billion, compared to $1.47 billion and $1.45 billion recorded on December 31, 2024 and March 31, 2024, respectively.

Loans totaled $912.2 million on March 31, 2025, decreasing 0.7% during the first quarter and increasing 2.3% from one year prior. Consumer and residential loans totaled $371.0 million on March 31, 2025, decreasing 2.6% during the first quarter and increasing 1.2% from one year prior. Commercial loans totaled $542.7 million on March 31, 2025, increasing 0.6% during the first quarter and 3.3% from one year prior.

With respect to liabilities, deposits totaled $1.26 billion on March 31, 2025, increasing 5.0% during the first quarter and 10.3% from one year prior. The Company also utilized its lower cost liquidity to reduce total borrowings, which were $44.6 million on March 31, 2025 as compared to $88.1 million on December 31 and $137.4 million on March 31, 2024.

Shareholders’ equity totaled $124.9 million on March 31, 2025, increasing $3.4 million or 2.8% in the first quarter and increasing $3.1 million or 2.5% from one year prior. Compared to the prior quarter, the first quarter 2025 increase primarily reflects a $2.3 million increase in retained earnings, a $712,000 decrease in accumulated other comprehensive loss (“AOCL”), and a $353,000 increase in additional paid in capital. The noncontrolling interest, previously included in equity on the Statements of Financial Condition, was eliminated in October 2024 upon the sale of the Company’s 51% ownership interest in the insurance agency.

Asset Quality
The Company’s asset quality metrics reflect ongoing efforts the Bank is undertaking as part of its commitment to continuously improve its credit risk management approach.

Nonperforming loans were $13.2 million or 1.45% of total loans on March 31, 2025, improving from $22.1 million or 2.40% of total loans on December 31, 2024 and $19.7 million or 2.20% of total loans on March 31, 2024.

Net charge offs (“NCOs”) after recoveries were $340,000 or an annualized 0.15% of average loans in the first quarter of 2025, with gross charge offs for consumer loans, purchased loan pools, and commercial loans offsetting recoveries in each of these categories. NCOs were $1.0 million or an annualized 0.44% of average loans in the linked quarter and $30,000 or 0.01% in the prior year period.

Provision for credit loss expense was $457,000 in the first quarter of 2025 reflecting lower levels of nonperforming loans and NCOs in the period and qualitative factors in the Company’s reserve model. The provision was $988,000 and $726,000 in the linked and year-ago quarters, respectively.

The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $17.4 million on March 31, 2025, compared to $17.2 million on December 31, 2024 and $16.7 million on March 31, 2024. As a percentage of total loans, ACL represented 1.91% on March 31, 2025, 1.88% on December 31, 2024, and 1.87% on March 31, 2024.

Liquidity
The Company has diligently ensured a strong liquidity profile as of March 31, 2025 to meet its ongoing financial obligations. The Bank’s liquidity management, as evaluated by its cash reserves and operational cash flows from loan repayments and investment securities, remains robust and is effectively managed by the institution’s leadership.

The Bank’s analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. Total deposits were $1.26 billion on March 31, 2025, $1.20 billion on December 31, 2024, and $1.15 billion on March 31, 2024. Core deposits represented 78.31% of total deposits on March 31, 2025, 76.86% on December 31, 2024, and 69.17% on March 31, 2024. The Bank continues to implement strategic initiatives to enhance its core deposit franchise, including targeted marketing campaigns and customer engagement programs aimed at deepening banking relationships and enhancing deposit stability.

At the end of the current quarter, Pathfinder Bancorp had an available additional funding capacity of $133.3 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $46.6 million, which provide a buffer for additional funding needs. These facilities, including access to the Federal Reserve’s Discount Window, are part of a comprehensive liquidity strategy that ensures flexibility and readiness to respond to any funding requirements.

Cash Dividend Declared
On March 31, 2025, Pathfinder’s Board of Directors declared a cash dividend of $0.10 per share for holders of both voting common and non-voting common stock.

In addition, this dividend also extends to the notional shares of the Company’s warrants. Shareholders registered by April 18, 2025 will be eligible for the dividend, which is scheduled for disbursement on May 9, 2025. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.

Evaluating the Company’s market performance, the closing stock price as of March 31, 2025 stood at $16.44 per share. This positions the annualized dividend yield at 2.43%.

About Pathfinder Bancorp, Inc.

Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the commercial bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches averaging over $100 million in deposits per location, as well as diversified consumer, mortgage, and commercial loan portfolios, reflect the state-chartered Bank’s commitment to in-market relationships and local customer service. The Company also offers investment services to individuals and businesses. At March 31, 2025, the Oswego-headquartered Company had assets of $1.50 billion, loans of $912.2 million, and deposits of $1.26 billion. More information is available at pathfinderbank.com and ir.pathfinderbank.com.

Forward-Looking Statements
Certain statements contained herein are “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. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov.

This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations within the release of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

Investor/Media Contacts
James A. Dowd, President, CEO
Justin K. Bigham, Senior Vice President, CFO
Telephone: (315) 343-0057

PATHFINDER BANCORP, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)

	2025			2024
SELECTED BALANCE SHEET DATA:	March 31,			December 31,			September 30,			June 30,			March 31,
ASSETS:
Cash and due from banks	$	18,606		$	13,963		$	18,923		$	12,022		$	13,565
Interest-earning deposits		32,862			17,609			16,401			19,797			15,658
Total cash and cash equivalents		51,468			31,572			35,324			31,819			29,223
Available-for-sale securities, at fair value		284,051			269,331			271,977			274,977			279,012
Held-to-maturity securities, at amortized cost		155,704			158,683			161,385			166,271			172,648
Marketable equity securities, at fair value		4,401			4,076			3,872			3,793			3,342
Federal Home Loan Bank stock, at cost		2,906			4,590			5,401			8,702			7,031
Loans		912,150			918,986			921,660			888,263			891,531
Less: Allowance for credit losses		17,407			17,243			17,274			16,892			16,655
Loans receivable, net		894,743			901,743			904,386			871,371			874,876
Premises and equipment, net		19,233			19,009			18,989			18,878			18,332
Assets held-for-sale		–			–			–			3,042			3,042
Operating lease right-of-use assets		1,356			1,391			1,425			1,459			1,493
Finance lease right-of-use assets		16,478			16,676			16,873			4,004			4,038
Accrued interest receivable		6,748			6,881			6,806			7,076			7,170
Foreclosed real estate		–			–			–			60			82
Intangible assets, net		5,832			5,989			6,217			76			80
Goodwill		5,056			5,056			5,752			4,536			4,536
Bank owned life insurance		24,889			24,727			24,560			24,967			24,799
Other assets		22,472			25,150			20,159			25,180			23,968
Total assets	$	1,495,337		$	1,474,874		$	1,483,126		$	1,446,211		$	1,453,672

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Deposits:
Interest-bearing deposits	$	1,061,166		$	990,805		$	986,103		$	932,132		$	969,692
Noninterest-bearing deposits		203,314			213,719			210,110			169,145			176,421
Total deposits		1,264,480			1,204,524			1,196,213			1,101,277			1,146,113
Short-term borrowings		27,000			61,000			60,315			127,577			91,577
Long-term borrowings		17,628			27,068			39,769			45,869			45,869
Subordinated debt		30,156			30,107			30,057			30,008			29,961
Accrued interest payable		844			546			236			2,092			1,963
Operating lease liabilities		1,560			1,591			1,621			1,652			1,682
Finance lease liabilities		16,655			16,745			16,829			4,359			4,370
Other liabilities		12,118			11,810			16,986			9,203			9,505
Total liabilities		1,370,441			1,353,391			1,362,026			1,322,037			1,331,040
Shareholders’ equity:
Voting common stock shares issued and outstanding		4,761,182			4,745,366			4,719,788			4,719,788			4,719,788
Voting common stock		48			47			47			47			47
Non-Voting common stock		14			14			14			14			14
Additional paid in capital		53,103			52,750			53,231			53,182			53,151
Retained earnings		80,163			77,816			73,670			78,936			77,558
Accumulated other comprehensive loss		(8,432	)		(9,144	)		(6,716	)		(8,786	)		(8,862	)
Unearned ESOP shares		–			–			–			(45	)		(90	)
Total Pathfinder Bancorp, Inc. shareholders’ equity		124,896			121,483			120,246			123,348			121,818
Noncontrolling interest		–			–			854			826			814
Total equity		124,896			121,483			121,100			124,174			122,632
Total liabilities and shareholders’ equity	$	1,495,337		$	1,474,874		$	1,483,126		$	1,446,211		$	1,453,672

The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

		2025		2024
SELECTED INCOME STATEMENT DATA:	Q1			Q4			Q3			Q2			Q1
Interest and dividend income:
Loans, including fees	$	13,672		$	13,523		$	14,425		$	12,489		$	12,268
Debt securities:
Taxable		5,185			5,312			5,664			5,736			5,607
Tax-exempt		402			445			469			498			508
Dividends		93			164			149			178			129
Federal funds sold and interest-earning deposits		89			82			492			121			98
Total interest and dividend income		19,441			19,526			21,199			19,022			18,610
Interest expense:
Interest on deposits		6,945			7,823			7,633			7,626			7,411
Interest on short-term borrowings		545			700			1,136			1,226			1,114
Interest on long-term borrowings		65			136			202			201			194
Interest on subordinated debt		475			490			496			489			491
Total interest expense		8,030			9,149			9,467			9,542			9,210
Net interest income		11,411			10,377			11,732			9,480			9,400
Provision for (benefit from) credit losses:
Loans		504			988			9,104			304			710
Held-to-maturity securities		–			(5	)		(31	)		(74	)		15
Unfunded commitments		(47	)		5			(104	)		60			1
Total provision for credit losses		457			988			8,969			290			726
Net interest income after provision for credit losses		10,954			9,389			2,763			9,190			8,674
Noninterest income:
Service charges on deposit accounts		374			405			392			330			309
Earnings and gain on bank owned life insurance		162			169			361			167			157
Loan servicing fees		101			96			79			112			88
Net realized (losses) gains on sales and redemptions of investment securities		(8	)		249			(188	)		16			(148	)
Gain on asset sale ^{1 & 2}		–			3,169			–			–			–
Net realized gains (losses) on sales of marketable equity securities		218			166			62			(139	)		108
Gains on sales of loans and foreclosed real estate		65			39			90			40			18
Loss on sale of premises and equipment		–			–			(36	)		–			–
Debit card interchange fees		1			265			300			191			119
Insurance agency revenue ¹		–			49			367			260			397
Other charges, commissions & fees		284			299			280			234			689
Total noninterest income		1,197			4,906			1,707			1,211			1,737
Noninterest expense:
Salaries and employee benefits		4,450			4,123			4,959			4,399			4,329
Building and occupancy		1,347			1,254			1,134			914			816
Data processing		666			721			672			550			528
Professional and other services		606			608			1,820			696			562
Advertising		141			218			165			116			105
FDIC assessments		229			231			228			228			229
Audits and exams		114			123			123			123			170
Insurance agency expense ¹		–			456			308			232			285
Community service activities		11			19			20			39			52
Foreclosed real estate expenses		21			20			27			30			25
Other expenses		691			771			803			581			605
Total noninterest expense		8,433			8,544			10,259			7,908			7,706
Income (loss) before provision for income taxes		3,718			5,751			(5,789	)		2,493			2,705
Provision (benefit) for income taxes		744			492			(1,173	)		481			532
Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.		2,974			5,259			(4,616	)		2,012			2,173
Net income attributable to noncontrolling interest ¹		–			1,352			28			12			53
Net income (loss) attributable to Pathfinder Bancorp Inc.	$	2,974		$	3,907		$	(4,644	)	$	2,000		$	2,120
Voting Earnings per common share – basic	$	0.48		$	0.63		$	(0.75	)	$	0.32		$	0.34
Voting Earnings per common share – diluted	$	0.41		$	0.63		$	(0.75	)	$	0.32		$	0.34
Series A Non-Voting Earnings per common share- basic	$	0.48		$	0.63		$	(0.75	)	$	0.32		$	0.34
Series A Non-Voting Earnings per common share- diluted	$	0.41		$	0.63		$	(0.75	)	$	0.32		$	0.34
Dividends per common share (Voting and Series A Non-Voting)	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10

¹ Although the Company owned 51% of its membership interest in FitzGibbons Agency, LLC (“Agency”) the Company is required to consolidate 100% of the Agency within the consolidated financial statements. The Company sold its 51% membership interest in the Agency in October 2024.
² The $3,169,000 consolidated gain on asset sale equals $1,616,000 associated with the Company’s 51% interest in the Agency plus $1,553,000 associated with the 49% noncontrolling interest.

The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

		2025		2024
FINANCIAL HIGHLIGHTS:	Q1			Q4			Q3			Q2			Q1
Selected Ratios:
Return on average assets		0.81	%		1.07	%		-1.25	%		0.56	%		0.59	%
Return on average common equity		9.64	%		12.85	%		-14.79	%		6.49	%		7.01	%
Return on average equity		9.64	%		12.85	%		-14.79	%		6.49	%		7.01	%
Return on average tangible common equity ¹		10.52	%		14.17	%		-15.28	%		6.78	%		7.32	%
Net interest margin		3.31	%		3.02	%		3.34	%		2.78	%		2.75	%
Loans / deposits		72.14	%		76.29	%		77.05	%		80.66	%		77.79	%
Core deposits/deposits ²		78.31	%		76.86	%		77.45	%		67.98	%		69.17	%
Annualized non-interest expense / average assets		2.33	%		2.33	%		2.75	%		2.19	%		2.16	%
Commercial real estate / risk-based capital ³		182.62	%		186.73	%		189.47	%		169.73	%		163.93	%
Efficiency ratio ¹		66.84	%		72.01	%		75.28	%		74.08	%		68.29	%

Other Selected Data:
Average yield on loans		5.97	%		5.87	%		6.31	%		5.64	%		5.48	%
Average cost of interest bearing deposits		2.76	%		3.12	%		3.11	%		3.21	%		3.07	%
Average cost of total deposits, including non-interest bearing		2.29	%		2.59	%		2.59	%		2.72	%		2.61	%
Deposits/branch ⁴	$	105,373		$	100,377		$	99,684		$	100,116		$	104,192
Pre-tax, pre-provision net income ¹	$	4,183		$	3,321		$	3,368		$	2,767		$	3,579
Total revenue ¹	$	12,616		$	11,865		$	13,627		$	10,675		$	11,285

Share and Per Share Data:
Cash dividends per share	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10
Book value per common share	$	20.33		$	19.83		$	19.71		$	20.22		$	19.97
Tangible book value per common share ¹	$	18.56		$	18.03		$	17.75		$	19.46		$	19.21
Basic and diluted weighted average shares outstanding – Voting		4,749			4,733			4,714			4,708			4,701
Basic earnings per share – Voting ⁵	$	0.48		$	0.63		$	(0.75	)	$	0.32		$	0.34
Diluted earnings per share – Voting ⁵	$	0.41		$	0.63		$	(0.75	)	$	0.32		$	0.34
Basic and diluted weighted average shares outstanding – Series A Non-Voting		1,380			1,380			1,380			1,380			1,380
Basic earnings per share – Series A Non-Voting ⁵	$	0.48		$	0.63		$	(0.75	)	$	0.32		$	0.34
Diluted earnings per share – Series A Non-Voting ⁵	$	0.41		$	0.63		$	(0.75	)	$	0.32		$	0.34
Common shares outstanding at period end		6,144			6,126			6,100			6,100			6,100

Pathfinder Bancorp, Inc. Capital Ratios:
Company tangible common equity to tangible assets ¹		7.68	%		7.54	%		7.36	%		8.24	%		8.09	%
Company Total Core Capital (to Risk-Weighted Assets)		15.89	%		15.66	%		15.55	%		16.19	%		16.23	%
Company Tier 1 Capital (to Risk-Weighted Assets)		12.24	%		12.00	%		11.84	%		12.31	%		12.33	%
Company Tier 1 Common Equity (to Risk-Weighted Assets)		11.75	%		11.51	%		11.33	%		11.83	%		11.85	%
Company Tier 1 Capital (to Assets)		8.82	%		8.64	%		8.29	%		9.16	%		9.16	%

Pathfinder Bank Capital Ratios:
Bank Total Core Capital (to Risk-Weighted Assets)		14.86	%		14.65	%		14.52	%		16.04	%		15.65	%
Bank Tier 1 Capital (to Risk-Weighted Assets)		13.61	%		13.40	%		13.26	%		14.79	%		14.39	%
Bank Tier 1 Common Equity (to Risk-Weighted Assets)		13.61	%		13.40	%		13.26	%		14.79	%		14.39	%
Bank Tier 1 Capital (to Assets)		9.80	%		9.64	%		9.13	%		10.30	%		10.13	%

¹ Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
² Non-brokered deposits excluding certificates of deposit of $250,000 or more.
³ Construction and development, multifamily, and non-owner occupied CRE loans as a percentage of Pathfinder Bank total capital.
⁴ Includes 11 full-service branches and one motor bank for December 31 and September 30, 2024, respectively. Includes 10 full-service branches and one motor bank for all periods prior.
⁵ Basic and diluted earnings per share are calculated based upon the two-class method. Weighted average shares outstanding do not include unallocated ESOP shares.

The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

		2025		2024
ASSET QUALITY:	Q1			Q4			Q3			Q2			Q1
Total loan charge-offs	$	508		$	1,191		$	8,812		$	112		$	68
Total recoveries		168			171			90			46			38
Net loan charge-offs		340			1,020			8,722			66			30
Allowance for credit losses at period end		17,407			17,243			17,274			16,892			16,655
Nonperforming loans at period end		13,232			22,084			16,170			24,490			19,652
Nonperforming assets at period end	$	13,232		$	22,084		$	16,170		$	24,550		$	19,734
Annualized net loan charge-offs to average loans		0.15	%		0.44	%		3.82	%		0.03	%		0.01	%
Allowance for credit losses to period end loans		1.91	%		1.88	%		1.87	%		1.90	%		1.87	%
Allowance for credit losses to nonperforming loans		131.55	%		78.08	%		106.83	%		68.98	%		84.75	%
Nonperforming loans to period end loans		1.45	%		2.40	%		1.75	%		2.76	%		2.20	%
Nonperforming assets to period end assets		0.88	%		1.50	%		1.09	%		1.70	%		1.36	%

	2025			2024
LOAN COMPOSITION:	March 31,			December 31,			September 30,			June 30,			March 31,
1-4 family first-lien residential mortgages	$	243,854		$	251,373		$	255,235		$	250,106		$	252,026
Residential construction		3,162			4,864			4,077			309			1,689
Commercial real estate		381,479			377,619			378,805			370,361			363,467
Commercial lines of credit		65,074			67,602			64,672			62,711			67,416
Other commercial and industrial		91,644			89,800			88,247			90,813			91,178
Paycheck protection program loans		96			113			125			136			147
Tax exempt commercial loans		4,446			4,544			2,658			3,228			3,374
Home equity and junior liens		52,315			51,948			52,709			35,821			35,723
Other consumer		71,681			72,710			76,703			75,195			77,106
Subtotal loans		913,751			920,573			923,231			888,680			892,126
Deferred loan fees		(1,601	)		(1,587	)		(1,571	)		(417	)		(595	)
Total loans	$	912,150		$	918,986		$	921,660		$	888,263		$	891,531

	2025		2024
DEPOSIT COMPOSITION:	March 31,		December 31,		September 30,		June 30,		March 31,
Savings accounts	$	129,898	$	128,753	$	129,053	$	106,048	$	111,465
Time accounts		349,673		360,716		352,729		368,262		378,103
Time accounts in excess of $250,000		149,922		142,473		140,181		117,021		114,514
Money management accounts		10,774		11,583		11,520		12,154		11,676
MMDA accounts		306,281		239,016		250,007		193,915		215,101
Demand deposit interest-bearing		109,941		101,080		97,344		128,168		134,196
Demand deposit noninterest-bearing		203,314		213,719		210,110		169,145		176,434
Mortgage escrow funds		4,677		7,184		5,269		6,564		4,624
Total deposits	$	1,264,480	$	1,204,524	$	1,196,213	$	1,101,277	$	1,146,113

The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

		2025		2024
SELECTED AVERAGE BALANCES:	Q1			Q4			Q1
Interest-earning assets:
Loans	$	916,207		$	920,855		$	895,335
Taxable investment securities		416,558			412,048			431,114
Tax-exempt investment securities		34,475			34,918			29,171
Fed funds sold and interest-earning deposits		12,939			5,115			13,873
Total interest-earning assets		1,380,179			1,372,936			1,369,493
Noninterest-earning assets:
Other assets		114,882			112,654			94,677
Allowance for credit losses		(17,413	)		(17,145	)		(16,081	)
Net unrealized losses on available-for-sale securities		(9,947	)		(8,534	)		(11,187	)
Total assets	$	1,467,701		$	1,459,911		$	1,436,902
Interest-bearing liabilities:
NOW accounts	$	111,643		$	102,862		$	99,688
Money management accounts		10,906			11,371			11,653
MMDA accounts		256,186			257,429			213,897
Savings and club accounts		129,769			128,169			112,719
Time deposits		498,963			504,009			524,368
Subordinated loans		30,123			30,076			29,930
Borrowings		70,575			68,391			137,882
Total interest-bearing liabilities		1,108,165			1,102,307			1,130,137
Noninterest-bearing liabilities:
Demand deposits		206,137			206,521			169,748
Other liabilities		29,961			29,494			15,986
Total liabilities		1,344,263			1,338,322			1,315,871
Shareholders’ equity		123,438			121,589			121,031
Total liabilities & shareholders’ equity	$	1,467,701		$	1,459,911		$	1,436,902

		2025		2024
SELECTED AVERAGE YIELDS:	Q1			Q4			Q1
Interest-earning assets:
Loans		5.97	%		5.87	%		5.48	%
Taxable investment securities		5.07	%		5.32	%		5.32	%
Tax-exempt investment securities		4.66	%		5.10	%		6.97	%
Fed funds sold and interest-earning deposits		2.75	%		6.41	%		2.83	%
Total interest-earning assets		5.63	%		5.69	%		5.44	%
Interest-bearing liabilities:
NOW accounts		1.07	%		1.19	%		1.06	%
Money management accounts		0.11	%		0.11	%		0.10	%
MMDA accounts		3.06	%		3.23	%		3.61	%
Savings and club accounts		0.25	%		0.26	%		0.26	%
Time deposits		3.69	%		4.25	%		3.92	%
Subordinated loans		6.31	%		6.52	%		6.56	%
Borrowings		3.46	%		4.89	%		3.79	%
Total interest-bearing liabilities		2.90	%		3.32	%		3.26	%
Net interest rate spread		2.73	%		2.37	%		2.18	%
Net interest margin		3.31	%		3.02	%		2.75	%
Ratio of average interest-earning assets to average interest-bearing liabilities		124.55	%		124.55	%		121.18	%

The above information is unaudited and preliminary based on the Company’s data available at the time of presentation.

		2025		2024
NON-GAAP RECONCILIATIONS:	Q1			Q4			Q3			Q2			Q1
Tangible book value per common share:
Total equity	$	124,896		$	121,483		$	120,246		$	123,348		$	121,818
Intangible assets		(10,888	)		(11,045	)		(11,969	)		(4,612	)		(4,616	)
Tangible common equity (non-GAAP)		114,008			110,438			108,277			118,736			117,202
Common shares outstanding		6,144			6,126			6,100			6,100			6,100
Tangible book value per common share (non-GAAP)	$	18.56		$	18.03		$	17.75		$	19.46		$	19.21
Tangible common equity to tangible assets:
Tangible common equity (non-GAAP)	$	114,008		$	110,438		$	108,277		$	118,736		$	117,202
Tangible assets		1,484,449			1,463,829			1,471,157			1,441,599			1,449,056
Tangible common equity to tangible assets ratio (non-GAAP)		7.68	%		7.54	%		7.36	%		8.24	%		8.09	%
Return on average tangible common equity:
Average shareholders’ equity	$	123,438		$	121,589		$	125,626		$	123,211		$	121,031
Average intangible assets		10,991			11,907			4,691			4,614			4,619
Average tangible equity (non-GAAP)		112,447			109,682			120,935			118,597			116,412
Net income (loss)		2,974			3,907			(4,644	)		2,000			2,120
Net income (loss), annualized	$	11,831		$	15,543		$	(18,475	)	$	8,044		$	8,527
Return on average tangible common equity (non-GAAP)¹		10.52	%		14.17	%		-15.28	%		6.78	%		7.32	%
Revenue, pre-tax, pre-provision net income, and efficiency ratio:
Net interest income	$	11,411		$	10,377		$	11,732		$	9,480		$	9,400
Total noninterest income		1,197			4,906			1,707			1,211			1,737
Net realized (gains) losses on sales and redemptions of investment securities		(8	)		249			(188	)		16			(148	)
Gain on asset sale		–			3,169			–			–			–
Revenue (non-GAAP)²		12,616			11,865			13,627			10,675			11,285
Total non-interest expense		8,433			8,544			10,259			7,908			7,706
Pre-tax, pre-provision net income (non-GAAP)³	$	4,183		$	3,321		$	3,368		$	2,767		$	3,579
Efficiency ratio (non-GAAP)⁴		66.84	%		72.01	%		75.28	%		74.08	%		68.29	%

¹ Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity
² Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities and gain on sale of insurance agency
³ Pre-tax, pre-provision net income equals revenue less total non-interest expense
⁴ Efficiency ratio equals noninterest expense divided by revenue

The above information is unaudited and preliminary based on the Company’s data available at the time of presentation.

The MIL Network –

May 1, 2025

MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the First Quarter Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

FAIR LAWN, N.J., April 30, 2025 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported net income of $8.9 million, or $0.09 per basic and diluted share, for the quarter ended March 31, 2025, as compared to a net loss of $1.2 million, or $0.01 per basic and diluted share, for the quarter ended March 31, 2024. Earnings for the quarter ended March 31, 2025 reflected higher net interest income due to both an increase in interest income and a decrease in interest expense, lower provision for credit losses and a decrease in non-interest expense, partially offset by higher income tax expense.

Mr. Thomas J. Kemly, President and Chief Executive Officer, commented: “During the first quarter of 2025, the Company was able to increase earnings, expand our net interest margin and reduce overall funding costs mainly due to a balance sheet repositioning strategy implemented in the fourth quarter of 2024. We also experienced solid loan growth and an increase in deposits while reducing our overall operating costs. It continues to be challenging to operate in such a volatile economic environment, but we are focused on managing the balance sheet mix and controlling operating expenses while remaining committed to investments in talent and systems that will support future growth.”

Results of Operations for the Three Months Ended March 31, 2025 and March 31, 2024

Net income of $8.9 million was recorded for the quarter ended March 31, 2025, an increase of $10.1 million, compared to a net loss of $1.2 million for the quarter ended March 31, 2024. The increase in net income was primarily attributable to an $8.1 million increase in net interest income, a $2.3 million decrease in provision for credit losses and a $1.8 million decrease in non-interest expense, partially offset by a $3.2 million increase in income tax expense.

Net interest income was $50.3 million for the quarter ended March 31, 2025, an increase of $8.1 million, or 19.3%, from $42.2 million for the quarter ended March 31, 2024. The increase in net interest income was primarily attributable to a $3.5 million increase in interest income and a $4.6 million decrease in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of loans coupled with an increase in average yields on loans and securities. During the fourth quarter of 2024 the Company implemented a balance sheet repositioning transaction which resulted in an increase in the average yield on securities and a decrease in the cost of borrowings, which had a notable impact on net interest income for the quarter ended March 31, 2025. The 100 basis point decrease in market interest rates during the last four months of 2024 contributed to a decrease in interest expense on borrowings during the quarter ended March 31, 2025. Prepayment penalties, which are included in interest income on loans, totaled $257,000 for the quarter ended March 31, 2025, compared to $268,000 for the quarter ended March 31, 2024.

The average yield on loans for the quarter ended March 31, 2025 increased 10 basis points to 4.89%, as compared to 4.79% for the quarter ended March 31, 2024. Interest income on loans increased due to an increase in both the average balance and yield on loans. The average yield on securities for the quarter ended March 31, 2025 increased 80 basis points to 3.45%, as compared to 2.65% for the quarter ended March 31, 2024. This was a result of lower yielding securities sold as part of the balance sheet repositioning transaction implemented in the fourth quarter of 2024, being replaced with higher yielding securities purchased in 2024 and the quarter ended March 31, 2025. The average yield on other interest-earning assets for the quarter ended March 31, 2025 decreased 31 basis points to 5.75%, as compared to 6.06% for the quarter ended March 31, 2024, due to a decrease in average interest rates received on cash balances, and a decrease in the dividend rate received on Federal Home Loan Bank stock.

Total interest expense was $61.8 million for the quarter ended March 31, 2025, a decrease of $4.6 million, or 6.9%, from $66.4 million for the quarter ended March 31, 2024. The decrease in interest expense was primarily attributable to a 1 basis point decrease in the average cost of interest-bearing deposits along with a 54 basis point decrease in the average cost of borrowings, coupled with a decrease in the average balance of borrowings, partially offset by an increase in the average balance of interest-bearing deposits. Interest expense on deposits increased $1.7 million, or 3.6%, and interest expense on borrowings decreased $6.3 million, or 35.1%.

The Company’s net interest margin for the quarter ended March 31, 2025 increased 36 basis points to 2.11%, when compared to 1.75% for the quarter ended March 31, 2024. The net interest margin increased for the quarter ended March 31, 2025 due to an increase in the average yield on interest-earning assets coupled with a decrease in the average cost of interest-bearing liabilities. The weighted average yield on interest-earning assets increased 19 basis points to 4.69% for the quarter ended March 31, 2025 as compared to 4.50% for the quarter ended March 31, 2024. The average cost of interest-bearing liabilities decreased 17 basis points to 3.21% for the quarter ended March 31, 2025 as compared to 3.38% for the quarter ended March 31, 2024.

The provision for credit losses for the quarter ended March 31, 2025 was $2.9 million, a decrease of $2.3 million, from $5.3 million for the quarter ended March 31, 2024. The decrease in provision for credit losses during the quarter was primarily due to a decrease in net charge-offs, which totaled $857,000 for the quarter ended March 31, 2025 as compared to $5.0 million for the quarter ended March 31, 2024.

Non-interest income was $8.5 million for the quarter ended March 31, 2025, an increase of $1.0 million, or 13.7%, from $7.5 million for the quarter ended March 31, 2024. The increase was primarily attributable to the loss on securities transactions of $1.3 million included in the 2024 period, and an increase of $475,000 in fees related to commercial account treasury services.

Non-interest expense was $43.8 million for the quarter ended March 31, 2025, a decrease of $1.8 million, or 4.0%, from $45.7 million for the quarter ended March 31, 2024. The decrease was primarily attributable to a decrease in professional fees of $2.1 million, as legal, regulatory and compliance-related costs decreased in the 2025 period, and a decrease in federal deposit insurance premiums of $475,000.

Income tax expense was $3.1 million for the quarter ended March 31, 2025, an increase of $3.2 million, as compared to an income tax benefit of $129,000 for the quarter ended March 31, 2024, mainly due to an increase in pre-tax income. The Company’s effective tax rate was 25.9% and 10.0% for the quarters ended March 31, 2025 and 2024, respectively. The effective tax rate for the 2024 period was primarily impacted by permanent income tax differences.

Balance Sheet Summary

Total assets increased $132.4 million, or 1.3%, to $10.6 billion at March 31, 2025 as compared to $10.5 billion at December 31, 2024. The increase in total assets was primarily attributable to an increase in debt securities available for sale of $51.4 million, and an increase in loans receivable, net, of $108.3 million, partially offset by a decrease in cash and cash equivalents of $33.1 million.

Cash and cash equivalents decreased $33.1 million, or 11.5%, to $256.1 million at March 31, 2025 from $289.2 million at December 31, 2024. The decrease was primarily attributable to purchases of securities of $84.7 million, and origination of loans receivable, partially offset by proceeds from principal repayments on securities of $41.2 million, and repayments on loans receivable.

Debt securities available for sale increased $51.4 million, or 5.0%, to $1.1 billion at March 31, 2025 from $1.0 billion at December 31, 2024. The increase was attributable to purchases of securities of $64.8 million, consisting primarily of U.S. government obligations and mortgage-backed securities, and a decrease in the gross unrealized loss on securities of $15.9 million, partially offset by repayments on securities of $29.1 million, and a partial call of a security of $756,000.

Loans receivable, net, increased $108.3 million, or 1.4%, to $8.0 billion at March 31, 2025 from $7.9 billion at December 31, 2024. Multifamily loans and commercial real estate loans increased $107.2 million and $89.5 million, respectively, partially offset by decreases in one-to-four family real estate loans, construction loans, commercial business loans, and home equity loans and advances of $34.4 million, $36.5 million, $8.0 million, and $5.6 million, respectively. The allowance for credit losses for loans increased $2.1 million to $62.0 million at March 31, 2025 from $60.0 million at December 31, 2024, primarily due to an increase in the outstanding balance of loans.

Total liabilities increased $112.4 million, or 1.2%, to $9.5 billion at March 31, 2025 from $9.4 billion at December 31, 2024. The increase was primarily attributable to an increase in total deposits of $98.8 million, or 1.2%, and an increase in borrowings of $27.0 million, or 2.5%, partially offset by a decrease in other liabilities of $15.2 million. The increase in total deposits consisted of increases in non-interest-bearing demand deposits, money market accounts and certificates of deposit of $52.2 million, $92.0 million, and $41.3 million, respectively, partially offset by decreases in interest-bearing demand deposits and savings and club accounts of $85.9 million and $788,000, respectively. The $27.0 million increase in borrowings was driven by a net increase in short-term borrowings of $67.0 million, coupled with new long-term borrowings of $20.0 million, partially offset by repayments of $60.0 million in maturing long-term borrowings.

Total stockholders’ equity increased $20.0 million, or 1.8%, with a balance of $1.1 billion at both March 31, 2025 and December 31, 2024. The increase in total stockholders’ equity was primarily attributable to net income of $8.9 million, and an increase of $9.3 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes, included in other comprehensive income.

Asset Quality

The Company’s non-performing loans at March 31, 2025 totaled $24.9 million, or 0.31% of total gross loans, as compared to $21.7 million, or 0.28% of total gross loans, at December 31, 2024. The $3.2 million increase in non-performing loans was primarily attributable to a $5.9 million construction loan designated as non-performing during the 2025 period, an increase in non-performing one-to-four family real estate loans of $835,000, and an increase in non-performing commercial real estate loans of $452,000, partially offset by a decrease in non-performing commercial business loans of $4.4 million. The $5.9 million non-performing construction loan represents the construction of a mixed use five-story building with both commercial space and apartments. The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 32 non-performing loans at December 31, 2024 to 38 loans at March 31, 2025. The increase in non-performing commercial real estate loans was due to an increase in the number of loans from four non-performing loans at December 31, 2024 to seven loans at March 31, 2025. The decrease in non-performing commercial business loans was primarily attributable to one loan with an outstanding balance of $4.3 million which was paid in full during the 2025 period. Non-performing assets as a percentage of total assets totaled 0.25% at March 31, 2025, as compared to 0.22% at December 31, 2024.

For the quarter ended March 31, 2025, net charge-offs totaled approximately $857,000, as compared to $5.0 million in net charge-offs recorded for the quarter ended March 31, 2024.

The Company’s allowance for credit losses on loans was $62.0 million, or 0.78% of total gross loans, at March 31, 2025, compared to $60.0 million, or 0.76% of total gross loans, at December 31, 2024. The increase in the allowance for credit losses for loans was primarily due to an increase in the outstanding balance of loans.

Additional Liquidity, Loan, and Deposit Information

The Company services a diverse retail and commercial deposit base through its 69 branches. With over 207,000 accounts, the average deposit account balance was approximately $40,000 at March 31, 2025.

Deposit balances are summarized as follows:

	At March 31, 2025				At December 31, 2024
	Balance		Weighted Average Rate		Balance		Weighted Average Rate
	(Dollars in thousands)

Non-interest-bearing demand	$	1,490,243	—	%	$	1,438,030	—	%
Interest-bearing demand		1,935,384	2.08			2,021,312	2.19
Money market accounts		1,333,668	2.84			1,241,691	2.82
Savings and club deposits		651,713	0.70			652,501	0.75
Certificates of deposit		2,783,927	4.08			2,742,615	4.24
Total deposits	$	8,194,935	2.40	%	$	8,096,149	2.47	%

The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at March 31, 2025. As of March 31, 2025, the Company had immediate access to approximately $2.8 billion of funding, with additional unpledged loan collateral of approximately $2.2 billion.

At March 31, 2025, the Company’s non-performing commercial real estate loans totaled $3.4 million, or 0.04%, of total loans receivable.

The following table presents multifamily real estate, owner occupied commercial real estate, and the components of investor owned commercial real estate loans included in the real estate loan portfolio.

	At March 31, 2025
	(Dollars in thousands)
	Balance		% of Gross Loans		Weighted Average Loan to Value Ratio		Weighted Average Debt Service Coverage
Multifamily Real Estate	$	1,567,862	19.6	%	58.0	%	1.58	x

Owner Occupied Commercial Real Estate	$	689,509	8.6	%	53.7	%	2.23	x

Investor Owned Commercial Real Estate:
Retail / Shopping centers	$	518,841	6.5	%	53.4	%	1.50	x
Mixed Use		220,391	2.8		58.0		1.57
Industrial / Warehouse		423,634	5.3		54.8		1.65
Non-Medical Office		189,617	2.4		51.1		1.65
Medical Office		118,547	1.5		60.0		1.46
Single Purpose		95,041	1.2		54.8		3.14
Other		173,849	2.2		51.3		1.75
Total	$	1,739,920	21.9	%	54.4	%	1.67	x

Total Multifamily and Commercial Real Estate Loans	$	3,997,291	50.1	%	55.7	%	1.73	x

As of March 31, 2025, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City.

About Columbia Financial, Inc.

The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank’s mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 69 full-service banking offices and offers traditional financial services to consumers and businesses in its market area.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the successful implementation of our December 2024 balance sheet repositioning transaction; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K and those set forth in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Non-GAAP Financial Measures

Reported amounts are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

The Company also provides measurements and ratios based on tangible stockholders’ equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See “Reconciliation of GAAP to Non-GAAP Financial Measures”.


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Consolidated Statements of Financial Condition (In thousands)

	March 31,		December 31,
	2025		2024
Assets	(Unaudited)
Cash and due from banks	$	255,978	$	289,113
Short-term investments		111		110
Total cash and cash equivalents		256,089		289,223

Debt securities available for sale, at fair value		1,077,331		1,025,946
Debt securities held to maturity, at amortized cost (fair value of $364,428, and $350,153 at March 31, 2025 and December 31, 2024, respectively)		400,975		392,840
Equity securities, at fair value		6,981		6,673
Federal Home Loan Bank stock		61,628		60,387

Loans receivable		8,027,308		7,916,928
Less: allowance for credit losses		62,034		59,958
Loans receivable, net		7,965,274		7,856,970

Accrued interest receivable		41,902		40,383
Office properties and equipment, net		82,592		81,772
Bank-owned life insurance		276,767		274,908
Goodwill and intangible assets		120,487		121,008
Other real estate owned		1,334		1,334
Other assets		316,490		324,049
Total assets	$	10,607,850	$	10,475,493

Liabilities and Stockholders’ Equity
Liabilities:
Deposits	$	8,194,935	$	8,096,149
Borrowings		1,107,588		1,080,600
Advance payments by borrowers for taxes and insurance		47,275		45,453
Accrued expenses and other liabilities		157,709		172,915
Total liabilities		9,507,507		9,395,117

Stockholders’ equity:
Total stockholders’ equity		1,100,343		1,080,376
Total liabilities and stockholders’ equity	$	10,607,850	$	10,475,493


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Consolidated Statements of Income (Loss) (In thousands, except per share data)

	Three Months Ended March 31,
	2025		2024
Interest income:	(Unaudited)
Loans receivable	$	95,110	$	92,949
Debt securities available for sale and equity securities		9,742		7,785
Debt securities held to maturity		2,811		2,369
Federal funds and interest-earning deposits		2,858		3,563
Federal Home Loan Bank stock dividends		1,642		1,961
Total interest income		112,163		108,627
Interest expense:
Deposits		50,145		48,418
Borrowings		11,693		18,009
Total interest expense		61,838		66,427

Net interest income		50,325		42,200

Provision for credit losses		2,933		5,278

Net interest income after provision for credit losses		47,392		36,922

Non-interest income:
Demand deposit account fees		1,888		1,413
Bank-owned life insurance		1,859		1,780
Title insurance fees		646		503
Loan fees and service charges		1,056		961
Loss on securities transactions		—		(1,256	)
Change in fair value of equity securities		308		351
Gain on sale of loans		515		185
Other non-interest income		2,199		3,515
Total non-interest income		8,471		7,452

Non-interest expense:
Compensation and employee benefits		28,583		27,513
Occupancy		6,185		5,973
Federal deposit insurance premiums		1,880		2,355
Advertising		531		626
Professional fees		2,515		4,634
Data processing and software expenses		4,061		3,967
Merger-related expenses		—		22
Other non-interest expense, net		90		568
Total non-interest expense		43,845		45,658

Income (loss) before income tax expense (benefit)		12,018		(1,284	)

Income tax expense (benefit)		3,118		(129	)

Net income (loss)	$	8,900	$	(1,155	)

Earnings (loss) per share-basic	$	0.09	$	(0.01	)
Earnings (loss) per share-diluted	$	0.09	$	(0.01	)
Weighted average shares outstanding-basic		101,816,716		101,746,740
Weighted average shares outstanding-diluted		101,816,716		101,988,425


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Average Balances/Yields

	For the Three Months Ended March 31,
		2025							2024
	Average Balance			Interest and Dividends		Yield / Cost		Average Balance			Interest and Dividends		Yield / Cost
	(Dollars in thousands)
Interest-earnings assets:
Loans	$	7,894,561		$	95,110	4.89	%	$	7,802,865		$	92,949	4.79	%
Securities		1,477,537			12,553	3.45	%		1,543,734			10,154	2.65	%
Other interest-earning assets		317,433			4,500	5.75	%		366,343			5,524	6.06	%
Total interest-earning assets		9,689,531			112,163	4.69	%		9,712,942			108,627	4.50	%
Non-interest-earning assets		873,451							855,618
Total assets	$	10,562,982						$	10,568,560

Interest-bearing liabilities:
Interest-bearing demand	$	2,060,528		$	13,172	2.59	%	$	1,998,749		$	13,384	2.69	%
Money market accounts		1,282,241			7,606	2.41	%		1,234,943			8,769	2.86	%
Savings and club deposits		649,257			1,108	0.69	%		688,535			1,236	0.72	%
Certificates of deposit		2,756,895			28,259	4.16	%		2,516,323			25,029	4.00	%
Total interest-bearing deposits		6,748,921			50,145	3.01	%		6,438,550			48,418	3.02	%
FHLB advances		1,060,911			11,554	4.42	%		1,447,143			17,847	4.96	%
Junior subordinated debentures		7,040			139	8.01	%		7,018			162	9.28	%
Total borrowings		1,067,951			11,693	4.44	%		1,454,161			18,009	4.98	%
Total interest-bearing liabilities		7,816,872		$	61,838	3.21	%		7,892,711		$	66,427	3.38	%

Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,432,837							1,392,274
Other non-interest-bearing liabilities		222,604							240,798
Total liabilities		9,472,313							9,525,783
Total stockholders’ equity		1,090,669							1,042,777
Total liabilities and stockholders’ equity	$	10,562,982						$	10,568,560

Net interest income				$	50,325						$	42,200
Interest rate spread						1.48	%						1.12	%
Net interest-earning assets	$	1,872,659						$	1,820,231
Net interest margin						2.11	%						1.75	%
Ratio of interest-earning assets to interest-bearing liabilities		123.96	%						123.06	%


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Components of Net Interest Rate Spread and Margin

	Average Yields/Costs by Quarter
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Yield on interest-earning assets:
Loans	4.89	%	4.88	%	5.00	%	4.93	%	4.79	%
Securities	3.45		2.99		2.90		2.89		2.65
Other interest-earning assets	5.75		6.00		6.72		6.30		6.06
Total interest-earning assets	4.69	%	4.61	%	4.70	%	4.64	%	4.50	%

Cost of interest-bearing liabilities:
Total interest-bearing deposits	3.01	%	3.13	%	3.21	%	3.14	%	3.02	%
Total borrowings	4.44		4.65		4.87		4.92		4.98
Total interest-bearing liabilities	3.21	%	3.38	%	3.52	%	3.49	%	3.38	%

Interest rate spread	1.48	%	1.23	%	1.18	%	1.15	%	1.12	%
Net interest margin	2.11	%	1.88	%	1.84	%	1.81	%	1.75	%

Ratio of interest-earning assets to interest-bearing liabilities	123.96	%	124.02	%	123.06	%	123.03	%	123.06	%


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Selected Financial Highlights

	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
SELECTED FINANCIAL RATIOS ⁽¹⁾:
Return on average assets	0.34	%	(0.79	)%	0.23	%	0.17	%	(0.04	)%
Core return on average assets	0.35	%	0.42	%	0.23	%	0.20	%	0.02	%
Return on average equity	3.31	%	(7.86	)%	2.32	%	1.77	%	(0.45	)%
Core return on average equity	3.37	%	4.09	%	2.29	%	2.06	%	0.18	%
Core return on average tangible equity	3.78	%	4.74	%	2.58	%	2.34	%	0.20	%
Interest rate spread	1.48	%	1.23	%	1.18	%	1.15	%	1.12	%
Net interest margin	2.11	%	1.88	%	1.84	%	1.81	%	1.75	%
Non-interest income to average assets	0.33	%	(0.88	)%	0.33	%	0.35	%	0.28	%
Non-interest expense to average assets	1.68	%	1.73	%	1.60	%	1.74	%	1.74	%
Efficiency ratio	74.57	%	205.17	%	78.95	%	86.83	%	91.96	%
Core efficiency ratio	74.20	%	73.68	%	79.14	%	85.34	%	88.39	%
Average interest-earning assets to average interest-bearing liabilities	123.96	%	124.02	%	123.06	%	123.03	%	123.06	%
Net charge-offs to average outstanding loans	0.04	%	0.07	%	0.14	%	0.03	%	0.26	%

⁽¹⁾ Ratios are annualized when appropriate.


ASSET QUALITY DATA:
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(Dollars in thousands)

Non-accrual loans	$	24,856		$	21,701		$	28,014		$	25,281		$	22,935
90+ and still accruing		—			—			—			—			—
Non-performing loans		24,856			21,701			28,014			25,281			22,935
Real estate owned		1,334			1,334			1,974			1,974			—
Total non-performing assets	$	26,190		$	23,035		$	29,988		$	27,255		$	22,935

Non-performing loans to total gross loans		0.31	%		0.28	%		0.36	%		0.33	%		0.30	%
Non-performing assets to total assets		0.25	%		0.22	%		0.28	%		0.25	%		0.22	%
Allowance for credit losses on loans (“ACL”)	$	62,034		$	59,958		$	58,495		$	57,062		$	55,401
ACL to total non-performing loans		249.57	%		276.29	%		208.81	%		225.71	%		241.56	%
ACL to gross loans		0.78	%		0.76	%		0.75	%		0.73	%		0.71	%


LOAN DATA:
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(In thousands)
Real estate loans:
One-to-four family	$	2,676,566		$	2,710,937		$	2,737,190		$	2,764,177		$	2,778,932
Multifamily		1,567,862			1,460,641			1,399,000			1,409,316			1,429,369
Commercial real estate		2,429,429			2,339,883			2,312,759			2,316,252			2,318,178
Construction		437,081			473,573			510,439			462,880			437,566
Commercial business loans		614,049			622,000			586,447			554,768			538,260
Consumer loans:
Home equity loans and advances		253,439			259,009			261,041			260,427			260,786
Other consumer loans		2,547			3,404			2,877			2,689			2,601
Total gross loans		7,980,973			7,869,447			7,809,753			7,770,509			7,765,692
Purchased credit deteriorated loans		10,395			11,686			11,795			12,150			14,945
Net deferred loan costs, fees and purchased premiums and discounts		35,940			35,795			35,642			36,352			34,992
Allowance for credit losses		(62,034	)		(59,958	)		(58,495	)		(57,062	)		(55,401	)
Loans receivable, net	$	7,965,274		$	7,856,970		$	7,798,695		$	7,761,949		$	7,760,228


CAPITAL RATIOS:
	March 31,		December 31,
	2025 ⁽¹⁾		2024
Company:
Total capital (to risk-weighted assets)	14.12	%	14.20	%
Tier 1 capital (to risk-weighted assets)	13.30	%	13.40	%
Common equity tier 1 capital (to risk-weighted assets)	13.21	%	13.31	%
Tier 1 capital (to adjusted total assets)	10.29	%	10.02	%

Columbia Bank:
Total capital (to risk-weighted assets)	14.37	%	14.41	%
Tier 1 capital (to risk-weighted assets)	13.51	%	13.56	%
Common equity tier 1 capital (to risk-weighted assets)	13.51	%	13.56	%
Tier 1 capital (to adjusted total assets)	9.88	%	9.64	%

⁽¹⁾ Estimated ratios at March 31, 2025


Reconciliation of GAAP to Non-GAAP Financial Measures

Book and Tangible Book Value per Share
	March 31,			December 31,
	2025			2024
	(Dollars in thousands)

Total stockholders’ equity	$	1,100,343		$	1,080,376
Less: goodwill		(110,715	)		(110,715	)
Less: core deposit intangible		(8,443	)		(8,964	)
Total tangible stockholders’ equity	$	981,185		$	960,697

Shares outstanding		104,930,900			104,759,185

Book value per share	$	10.49		$	10.31
Tangible book value per share	$	9.35		$	9.17


Reconciliation of Core Net Income
	Three Months Ended March 31,
		2025		2024
	(In thousands)

Net income (loss)	$	8,900	$	(1,155	)
Add: loss on securities transactions, net of tax		—		1,130
Add: FDIC special assessment, net of tax		—		393
Add: severance expense, net of tax		163		67
Add: merger-related expenses, net of tax		—		20
Core net income	$	9,063	$	455

Return on Average Assets
	Three Months Ended March 31,
	2025			2024
	(Dollars in thousands)

Net income (loss)	$	8,900		$	(1,155	)

Average assets	$	10,562,982		$	10,568,560

Return on average assets		0.34	%	(0.04		)%

Core net income	$	9,063		$	455

Core return on average assets		0.35	%		0.02	%


Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

Return on Average Equity
	Three Months Ended March 31,
	2025			2024
	(Dollars in thousands)

Total average stockholders’ equity	$	1,090,669		$	1,042,777
Add: loss on securities transactions, net of tax		—			1,130
Add: FDIC special assessment, net of tax		—			393
Add: severance expense, net of tax		163			67
Add: merger-related expenses, net of tax		—			20
Core average stockholders’ equity	$	1,090,832		$	1,044,387

Return on average equity		3.31	%	(0.45		)%

Core return on core average equity		3.37	%		0.18	%


Return on Average Tangible Equity
	Three Months Ended March 31,
	2025			2024
	(Dollars in thousands)

Total average stockholders’ equity	$	1,090,669		$	1,042,777
Less: average goodwill		(110,715	)		(110,715	)
Less: average core deposit intangible		(8,784	)		(10,956	)
Total average tangible stockholders’ equity	$	971,170		$	921,106

Core return on average tangible equity		3.78	%		0.20	%


Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

Efficiency Ratios
	Three Months Ended March 31,
	2025			2024
	(Dollars in thousands)

Net interest income	$	50,325		$	42,200
Non-interest income		8,471			7,452
Total income	$	58,796		$	49,652

Non-interest expense	$	43,845		$	45,658

Efficiency ratio		74.57	%		91.96	%

Non-interest income	$	8,471		$	7,452
Add: loss on securities transactions		—			1,256
Core non-interest income	$	8,471		$	8,708

Non-interest expense	$	43,845		$	45,658
Less: FDIC special assessment, net		—			(565	)
Less: severance expense		(220	)		(74	)
Less: merger-related expenses		—			(22	)
Core non-interest expense	$	43,625		$	44,997

Core efficiency ratio		74.20	%		88.39	%

Columbia Financial, Inc.
Investor Relations Department
(833) 550-0717

The MIL Network –

May 1, 2025

MIL-OSI: Delisting of Securities of TLGY Acquisition Corporation; Target Global Acquisition I Corp.; Inception Growth Acquisition Limited; Healthcare AI Acquisition Corp.; Globalink Investment Inc.; BurTech Acquisition Corp; Mountain & Co. I Acquisition Corp.; Pearl Holdings Acquisition Corp; Alpha Star Acquisition Corporation; CF Acquisition Corp. VII; Kairous Acquisition Corp. Limited; Finnovate Acquisition Corp.; Exela Technologies, Inc.; Investcorp Europe Acquisition Corp I; Molecular Templates, Inc.

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) — The Nasdaq Stock Market announced today that it will delist the Class A common stock of Alpine 4 Holdings, Inc. Alpine 4 Holdings, Inc.’s stock was suspended on October 18, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of Orgenesis Inc. Orgenesis Inc.’s stock was suspended on October 21, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of ShiftPixy, Inc. ShiftPixy, Inc.’s stock was suspended on October 28, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of Novo Integrated Sciences, Inc. Novo Integrated Sciences, Inc.’s stock was suspended on November 6, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of Mountain & Co. I Acquisition Corp. Mountain & Co. I Acquisition Corp.’s securities were suspended on November 7, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock and 6.00% Series B Cumulative Convertible Perpetual Preferred Stock of Exela Technologies, Inc. Exela Technologies, Inc.’s securities were suspended on November 8, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of Finnovate Acquisition Corp. Finnovate Acquisition Corp.’s securities were suspended on November 12, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the Class A common stock of Mondee Holdings, Inc. Mondee Holdings, Inc.’s stock was suspended on December 6, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of TLGY Acquisition Corporation. TLGY Acquisition Corporation’s securities were suspended on December 9, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the Class A ordinary shares, warrants, and units of Target Global Acquisition I Corp. Target Global Acquisition I Corp.’s securities were suspended on December 17, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock, warrants, units, and rights of Inception Growth Acquisition Limited. Inception Growth Acquisition Limited’s securities were suspended on December 17, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of Healthcare AI Acquisition Corp. Healthcare AI Acquisition Corp.’s securities were suspended on December 17, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock, warrants, rights, and units of Globalink Investment Inc. Globalink Investment Inc.’s securities were suspended on December 17, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the unit of BurTech Acquisition Corp. BurTech Acquisition Corp.’s security was suspended on December 18, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of Pearl Holdings Acquisition Corp. Pearl Holdings Acquisition Corp’s securities were suspended on December 23, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the ordinary shares, warrants, rights, and units of Alpha Star Acquisition Corporation. Alpha Star Acquisition Corporation’s securities were suspended on December 23, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the Class A common stock, warrants, and units of CF Acquisition Corp VII. CF Acquisition Corp. VII’s securities were suspended on December 23, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the ordinary shares, rights, units, and warrants of Kairous Acquisition Corp Limited. Kairous Acquisition Corp. Limited’s securities were suspended on December 23, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of Investcorp Europe Acquisition Corp I. Investcorp Europe Acquisition Corp I’s securities were suspended on December 24, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the unit of FTAC Emerald Acquisition Corp. FTAC Emerald Acquisition Corp.’s security was suspended on December 24, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of Molecular Templates, Inc. Molecular Templates, Inc.’s stock was suspended on December 26, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock, warrants, and rights of NorthView Acquisition Corporation. NorthView Acquisition Corporation’s securities were suspended on December 27, 2024 and have not traded on Nasdaq since that time.

For more information about The Nasdaq Stock Market, visit the Nasdaq Web site at http://www.nasdaq.com. Nasdaq’s rules governing the delisting of securities can be found in the Nasdaq Rule 5800 Series, available on the Nasdaq Web site: https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5800-series.

The MIL Network –

May 1, 2025

MIL-OSI: Apollo to Present at the 2025 Barclays Americas Select Franchise Conference

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) — Apollo (NYSE: APO) today announced that Martin Kelly, Chief Financial Officer, will participate in a fireside chat at the Barclays Americas Select Franchise Conference on Wednesday, May 7, 2025 at 8:30 am EDT.

A live webcast of the event will be available on Apollo’s Investor Relations website at ir.apollo.com. For those unable to join live, a replay will be available shortly after the event.

About Apollo

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of December 31, 2024, Apollo had approximately $751 billion of assets under management. To learn more, please visit www.apollo.com.

Contacts

Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com

The MIL Network –

May 1, 2025

MIL-OSI: Ninepoint Partners Announces Final Closing of over $41 Million for Ninepoint 2025 Flow-Through Limited Partnership

Source: GlobeNewswire (MIL-OSI)

TORONTO, April 30, 2025 (GLOBE NEWSWIRE) — Ninepoint Partners LP (“Ninepoint”) is pleased to announce that the Ninepoint 2025 Flow-Through Limited Partnership (the “Partnership”) has completed the third and final closing in connection with its offering of Class A and Class F limited partnership units (the “Units”) pursuant to a prospectus dated January 30, 2025. The Partnership raised $4,375,500 on the sale of an additional 175,020 Units for aggregate gross proceeds of $41,381,200. The Units are being offered at a price per Unit of $25.00 with a minimum subscription of 100 Units ($2,500).

The Partnership intends to provide liquidity to limited partners through a roll-over to the Ninepoint Resource Fund Class in the period between January 15, 2027 to February 28, 2027.

Ninepoint is a leading manager of Flow-Through Funds in Canada. Since its inception in 2017, Ninepoint has successfully raised more Flow-Through Fund capital than any other asset manager in Canada. Flow Through strategies continue to provide an effective time-tested tax planning strategy to Canadian investors and have delivered strong after-tax returns.

Investment Objective of the Partnership
The Partnership’s investment objective is to achieve capital appreciation and significant tax benefits for limited partners by investing in a diversified portfolio of Flow-Through Shares (as defined in the Prospectus) and other securities, if any, of Resource Issuers (as defined in the Prospectus).

Attractive Tax-Reduction Benefits
Flow-through partnerships are one of the most effective tax reduction strategies available to Canadians. Ninepoint anticipates that investors participating in the Partnership will be eligible to receive a tax deduction of approximately 100% of the amount invested.

Resource Expertise
The Partnership will be sub-advised by Sprott Asset Management LP (“Sprott”), one of Canada’s leading investment advisors in small and mid-cap resource companies. Over its long history of investing in the resource sector, Sprott has developed relationships with hundreds of companies. Its experienced team of portfolio managers is supported by a team of technical experts with extensive backgrounds in mining and geology.

Portfolio manager Jason Mayer will manage the portfolio of the Partnership and will be supported by Sprott’s broader team of experienced resource investment professionals.

Agents
The offering is being made through a syndicate of agents led by RBC Dominion Securities Inc. which includes
CIBC World Markets Inc., TD Securities Inc., National Bank Financial Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., Manulife Wealth Inc., iA Private Wealth Inc., Raymond James Ltd., Richardson Wealth Limited, Canaccord Genuity Corp., Desjardins Securities Inc., Ventum Financial Corp. and Wellington-Altus Private Wealth Inc.

About Ninepoint Partners LP
Based in Toronto, Ninepoint Partners LP is one of Canada’s leading alternative investment management firms overseeing approximately $7 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies spanning Equities, Fixed Income, Alternative Income, Real Assets, F/X and Digital Assets.

For more information on Ninepoint Partners LP, please visit www.ninepoint.com or for inquiries regarding the offering, please contact us at (416) 943-6707 or (866) 299-9906 or invest@ninepoint.com.

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions “expects”, “intends”, “anticipates”, “will” and similar expressions to the extent that they relate to the Partnership. The forward-looking statements are not historical facts but reflect the Partnership’s, Ninepoint’s and Sprott’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Partnership, Ninepoint and Sprott believe the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Neither the Partnership, nor Ninepoint or Sprott undertake any obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

This offering is only made by prospectus. The Partnership’s prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from one of the dealers noted above. Investors should read the prospectus before making an investment decision.

The MIL Network –

May 1, 2025

MIL-OSI: National Bank Holdings Corporation Announces 3.4% Increase to Quarterly Dividend

Source: GlobeNewswire (MIL-OSI)

DENVER, April 30, 2025 (GLOBE NEWSWIRE) — National Bank Holdings Corporation (NYSE: NBHC) announced today that its Board of Directors approved a cash dividend to shareholders. The quarterly cash dividend will increase 3.4% from twenty-nine cents ($0.29) to thirty cents ($0.30) per share of common stock. The dividend will be payable on June 13, 2025 to shareholders of record at the close of business on May 30, 2025.

“We are pleased to deliver another increase to our quarterly dividend. Over the last five years, the quarterly dividend per common share has increased by 50%, which demonstrates our commitment to drive meaningful shareholder returns as a result of our strong balance sheet, solid capital position, and diversified funding sources,” said Chairman and CEO, Tim Laney.

About National Bank Holdings Corporation

National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 85 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust and wealth management business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Texas, Utah, New Mexico and Idaho, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.

For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com, or connect with any of our brands on LinkedIn.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” or similar expressions that relate to the Company’s strategy, plans or intentions. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Form 10-K filed with the Securities and Exchange Commission (SEC), and other risks and uncertainties listed from time to time in our reports and documents filed with the SEC. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

Contact:

Analysts/Institutional Investors:
Emily Gooden, 720-554-6640
Chief Accounting Officer and Investor Relations Director
ir@nationalbankholdings.com

Nicole Van Denabeele, 720-529-3370,
Chief Financial Officer ir@nationalbankholdings.com

or

Media:
Jody Soper, 303-784-5925
Chief Marketing Officer
Jody.Soper@nbhbank.com

Source: National Bank Holdings Corporation

The MIL Network –

May 1, 2025

MIL-OSI Security: Jury convicts conspirator involved in transporting aliens shot en route to Houston

Source: Office of United States Attorneys

HOUSTON – A 21-year-old New Orleans, Louisiana, resident has been found guilty for conspiracy to transport illegal aliens, announced U.S. Attorney Nicholas J. Ganjei.

Mailon Almendares-Martinez, 21, New Orleans, was convicted of one count of conspiracy to transport aliens.

The jury deliberated for less than an hour before returning the guilty verdict following a three-day trial.

The jury heard how Almendares-Martinez conspired with others from Oct. 30 – Nov. 2, 2022, to transport aliens from the South Texas border to Houston.

The jury heard testimony that Almendares-Martinez recruited friends and conspirators from New Orleans to carry out the scheme. Witnesses testified that Almendares-Martinez and others offered to pay them $1,000 to $2,000 per alien they transported.

Evidence revealed he had directed them as to where to pick up the aliens through WhatsApp messages and phone calls.

After picking up the aliens near the border, the conspirators headed back to Houston. En route, individuals believed to be a part of a rival alien smuggling and transporting organization had shot at them. Two of the aliens suffered gunshot wounds to the arm and leg. One was a native of Honduras who had recently crossed the Rio Grande River and entered the United States illegally.

After the shooting, Almendares-Martinez told the co-conspirators to return to Houston and not seek medical attention for the two wounded aliens.

Co-conspirators then brought the aliens to a motel in Houston Nov. 1, 2022. The next day, the illegal aliens had escaped. Law enforcement arrived at the scene and took four people in custody, to include Jonathan Melendez-Merino, Oscar Melendez-Sosa, Cristian Mencias-Padilla and Cesar Monge-Milla.

The defense attempted to convince the jury Almendares-Martinez was not part of the conspiracy and someone else was using his WhatsApp account to communicate with co-conspirators. They did not believe those claims and found Almendares-Martinez guilty as charged.

“This case demonstrates—like so many cases before it—that human smuggling is an inhumane, dangerous, and sometimes fatal business,” said Ganjei. “Those that smuggle human beings for profit deserve prosecution, and those that would willingly place themselves in a situation to be smuggled need to think twice. Stay home, stay safe.”

U.S. District Judge Kenneth Hoyt presided over trial and set sentencing for Aug. 11. At that time, Almendares-Martinez faces up to 10 years in federal prison as well as a possible $250,000 maximum fine.

Previously released on bond, Almendares-Martinez was taken into custody following the verdict where he will remain pending that hearing.

Seven others, all from New Orleans, Louisiana, previously pleaded guilty in the case – Melendez-Merino, 32, Melendez-Sosa, 22, Mencias-Padilla, 21, and Monge-Milla, 25, along with Yunior Sorto-Ramirez, 23, Bayron Pineda-Alvarado, and Alan Galvez-Baquedano, 22.

Immigration and Customs Enforcement – Homeland Security Investigations conducted the investigation with the assistance of Houston Police Department. Assistant U.S. Attorneys Michael Day and Anthony Franklyn prosecuted the case.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

MIL Security OSI –

May 1, 2025

MIL-OSI Canada: Tribunal Continues Order—Silicon Metal from China

Source: Government of Canada News

Ottawa, Ontario, April 30, 2025—The Canadian International Trade Tribunal today continued its order made on August 22, 2019, in expiry review RR‑2018‑003, continuing, without amendment, its finding made on November 19, 2013, in inquiry NQ‑2013‑003, concerning the dumping and subsidizing of silicon metal containing at least 96.00 percent but less than 99.99 percent silicon by weight, and silicon metal containing between 89.00 percent and 96.00 percent silicon by weight that contains aluminum greater than 0.20 percent by weight, of all forms and sizes, from the People’s Republic of China.

The Canadian International Trade Tribunal found that the expiry of the order was likely to result in injury to the domestic industry. As such, the Tribunal continued its order. The Canada Border Services Agency will therefore continue to impose anti-dumping and countervailing duties on this product.

The Canadian International Trade Tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters.

MIL OSI Canada News –

May 1, 2025

MIL-OSI USA: ICE Los Angeles, multiagency case dismantles identity theft mill, organized retail scheme spanning 7 California counties

Source: US Immigration and Customs Enforcement

LOS ANGELES — Felony charges were filed April 25 against three people involved in a suspected identity theft mill, where stolen identities were used in an organized retail crime scheme. The scheme involved suspects applying for store credit cards using stolen identities and credit lines to purchase merchandise. The fraud scheme was carried out in Los Angeles, Orange, San Bernardino, Riverside, Alameda, San Mateo, and Santa Clara Counties. U.S. Immigration and Customs Enforcement assisted the investigation led by the California Department of Justice based on a referral from a Signet Jeweler’s Corporate Fraud Investigator, in cooperation by Santa Maria Police Department, Los Angeles County Sheriff’s Department, California Highway Patrol and Westminster Police department.

“These arrests are the result of excellent collaboration between HSI, private industry, state and local law enforcement partners,” ICE Homeland Security Investigations Orange County Assistant Special Agent in Charge Christopher Bracken. “HSI will work tirelessly with our partners in California to ensure that those who commit fraud will be held accountable.”

As a result of the investigation, a 34-count felony complaint was filed against three defendants by DOJ. The charges include organized retail theft, grand theft, and identity theft of 13 victims.

“I am committed to using the full force of the California Department of Justice to fight organized retail crime both in the field and in the courtroom,” said Attorney General Rob Bonta. “This was not a one-off shoplifting offense, it was a malicious, coordinated scheme. These crimes hurt our businesses and pose a serious threat to our communities. I am thankful to Signet Jewelers as well as our local and state law enforcement partners for their collaboration in the battle against organized retail crime. We will not give up until we put a stop to this criminal activity all together.”

From March 2023 to July 2023, the defendants fraudulently obtained over $100,000 worth of merchandise from high end retail stores and Harbor Freight retailers.

“The Los Angeles County Sheriff’s Department is deeply committed to tackling organized retail crime through strategic multiagency collaboration, intelligence sharing, and targeted enforcement,” said Los Angeles County Sheriff’s Department Detective Division Chief Joe Mendoza. “By working closely with our local, state, and federal partners, we continue to strengthen our efforts, disrupt criminal networks, protect both businesses and our communities, while holding individuals accountable.”

A copy of the criminal complaint in this case is available here. Photos related to this investigation can be found here, here and here.

MIL OSI USA News –

May 1, 2025

Category: Finance