GlobeNewswire – Page 297

MIL-OSI: KBRA Affirms Ratings for Heritage Commerce Corp

Source: GlobeNewswire (MIL-OSI)

SAN JOSE, Calif., May 12, 2025 (GLOBE NEWSWIRE) — Heritage Commerce Corp (NASDAQ: HTBK) (the “Company”), parent company of Heritage Bank of Commerce (the “Bank”), announced today that Kroll Bond Rating Agency, LLC (“KBRA”) affirmed the Company’s senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, and the short-term debt rating of K2. KBRA also affirmed deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2 for the Bank. They graded the outlook of the long-term ratings for both the Company and the Bank as stable on May 9, 2025.

“I am pleased to see that KBRA’s latest ratings report highlights our disciplined and conservative approach to liquidity and capital management, as it shielded the Company during the more uncertain credit and liquidity environment in recent years,” said Clay Jones, President and Chief Executive Officer. “They also recognized our solid credit quality position due to our prudent underwriting and robust monitoring.”

The complete KBRA press release on Heritage Commerce Corp is available on KBRA’s website, https://www.krollbondratings.com. The KBRA press release, credit ratings, and analysis constitute part of the information contained therein are, and must be construed solely as, statements of opinion of KBRA and not statements of fact or recommendations of KBRA or the Company to purchase, sell or hold any of the Company’s securities.

Heritage Commerce Corp, a bank holding company established in October 1997, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various industries throughout the United States. For more information, please visit www.heritagecommercecorp.com.

Member FDIC

For additional information, email:
InvestorRelations@herbank.com

The MIL Network –

May 13, 2025

MIL-OSI: Vital Energy Reports First-Quarter 2025 Financial and Operating Results

Source: GlobeNewswire (MIL-OSI)

TULSA, OK, May 12, 2025 (GLOBE NEWSWIRE) — Vital Energy, Inc. (NYSE: VTLE) (“Vital Energy” or the “Company”) today reported first-quarter 2025 financial and operating results. Supplemental slides have been posted to the Company’s website and can be found at www.vitalenergy.com. A conference call to discuss results is planned for 7:30 a.m. CT, Tuesday, May 13, 2025. A webcast will be available through the Company’s website.

First-Quarter 2025 Highlights

Reduced total and Net Debt¹ by $145.0 million and $133.5 million, respectively, through free cash flow, net changes in working capital, and the sale of non-core assets
Reported a net loss of $18.8 million, Adjusted Net Income¹ of $89.5 million and cash flow from operating activities of $351.0 million
Generated Consolidated EBITDAX¹ of $359.7 million and Adjusted Free Cash Flow¹ of $64.5 million
Reported in-line capital investments of $252.7 million, excluding non-budgeted acquisitions and leasehold expenditures
Reported lease operating expense (“LOE”) of $103.5 million or $8.20 per BOE, beating guidance
Produced 140.2 thousand barrels of oil equivalent per day (“MBOE/d”) and oil of 64.9 thousand barrels of oil per day (“MBO/d”), within guidance

“Our first quarter performance highlights the quality of our inventory and the ongoing success of our optimization efforts,” said Jason Pigott, President and Chief Executive Officer. “Our team is focused on generating sustainable efficiency gains and lower costs across our business and delivering on our targets for Adjusted Free Cash Flow and debt reduction.”

“Our hedge position for the remainder of the year has reduced our near-term price risks and today we have about 90% of our expected oil production swapped at around $71 per barrel WTI,” continued Pigott. “The quality of our assets and structure of our services contracts provide tremendous flexibility in how we choose to allocate future capital. We are closely monitoring commodity prices and services costs and have multiple options to quickly adjust our plans.”

First-Quarter 2025 Financial and Operations Summary

Financial Results. The Company had a net loss of $18.8 million, or $(0.50) per diluted share. Results were impacted by a non-cash pre-tax impairment loss on oil and gas properties of $158.2 million. Adjusted Net Income¹ was $89.5 million, or $2.37 per adjusted diluted share. Cash flows from operating activities were $351.0 million and Consolidated EBITDAX¹ was $359.7 million.

_____________________
¹Non-GAAP financial measure; please see supplemental reconciliations of GAAP to non-GAAP financial measures at the end of this release.

The impairment was the result of the full cost ceiling limitation, driven in part by the decline in the trailing 12-month oil price calculation, and excludes the value of $145.9 million for the Company’s commodity derivative positions and only includes the 185 proved undeveloped locations in the Company’s reserve report out of approximately 925 inventory locations.

Non-core Divestiture. On March 6, 2025, Vital Energy closed on the sale of non-core assets in Reagan County for $20.5 million, including transaction expenses. The assets comprised approximately 9,100 net acres, production of 1,300 BOE/d (12% oil) and did not include any of the Company’s inventory locations. As a result of the sale, Vital Energy’s asset retirement obligation will be reduced by $8.4 million.

Production. Vital Energy’s total and oil production averaged 140,159 BOE/d and 64,893 BO/d, respectively, with both exceeding the midpoint of guidance. Results were driven by accelerated TIL’s on wells drilled in the southern Delaware Basin.

Capital Investments. Total capital investments, excluding non-budgeted acquisitions and leasehold expenditures, were $253 million, within guidance, and include drilling efficiencies that pulled forward capital into the quarter.

Investments included $218 million in drilling and completions, $21 million in infrastructure investments, $8 million in other capitalized costs and $6 million in land, exploration and data-related costs.

Operating Expenses. LOE was 12% below guidance midpoint at $103.5 million, or $8.20 per BOE. The beat was related to actual expenses on the Point Energy assets being lower than initial estimates in both the fourth quarter of 2024 and first-quarter 2025 and lower workover activity in the period.

General and Administrative (“G&A”) Expenses. Total G&A expenses were below guidance at $22.7 million, or $1.80 per BOE.

Liquidity. At March 31, 2025, the Company had $735 million outstanding on its $1.5 billion senior secured credit facility and cash and cash equivalents of $29 million.

As of May 8, 2025, through its regular semi-annual redetermination process, the Company’s lenders have set the senior secured credit facility’s borrowing base and elected commitment at $1.4 billion, a $100 million reduction from the prior amount of $1.5 billion.

2025 Outlook

Vital Energy remains committed to maximizing cash flow and reducing debt. Cash flows are supported by its significant hedge position, with ~90% of expected oil production for the remainder of the year swapped at an average WTI price of $70.61 per barrel.

While the Company today reiterated its full-year 2025 outlook, it is closely monitoring commodity prices and service costs and has significant flexibility to adjust its development plans, should market conditions warrant, with no rig or completions contracts extending beyond March 2026.

For full-year 2025, the Company expects to generate approximately $265 million of Adjusted Free Cash Flow at current oil prices of ~$59 per barrel WTI, inclusive of hedging proceeds, and to reduce Net Debt by approximately $300 million, inclusive of proceeds from the non-core asset sale in March.

Second-Quarter 2025 Guidance

The table below reflects the Company’s guidance for production and capital investments.


	2Q-25E
Total production (MBOE/d)	133.0 – 139.0
Oil production (MBO/d)	61.0 – 65.0
Capital investments, excluding non-budgeted acquisitions ($ MM)	$215 – $245

The table below reflects the Company’s guidance for select revenue and expense items.


	2Q-25E
Average sales price realizations (excluding derivatives):
Oil (% of WTI)	101%
NGL (% of WTI)	24%
Natural gas (% of Henry Hub)	14%

Net settlements received (paid) for matured commodity derivatives ($ MM):
Oil	$69
NGL	$3
Natural gas	$21

Selected average costs & expenses:
Lease operating expenses ($ MM)	$112 – $118
Production and ad valorem taxes (% of oil, NGL and natural gas sales revenues)	6.60%
Oil transportation and marketing expenses ($ MM)	$10.7 – $11.7
Gas gathering, processing and transportation expenses ($ MM)	$6.7 – $7.7
General and administrative expenses (excluding LTIP and transaction expenses, $ MM)	$21.0 – $22.5
General and administrative expenses (LTIP cash, $ MM)	$0.6 – $0.7
General and administrative expenses (LTIP non-cash, $ MM)	$3.0 – $3.5
Depletion, depreciation and amortization ($ MM)	$180 – $190

Conference Call Details

Vital Energy plans to host a conference call at 7:30 a.m. CT on Tuesday, May 13, 2025, to discuss its first-quarter 2025 financial and operating results. Supplemental slides will be posted to the Company’s website. Interested parties are invited to listen to the call via the Company’s website at www.vitalenergy.com, under the tab for “Investor Relations | News & Presentations | Upcoming Events.”

About Vital Energy

Vital Energy, Inc. is an independent energy company with headquarters in Tulsa, Oklahoma. Vital Energy’s business strategy is focused on the acquisition, exploration and development of oil and natural gas properties in the Permian Basin of West Texas.

Additional information about Vital Energy may be found on its website at www.vitalenergy.com.

Forward-Looking Statements
This press release and any oral statements made regarding the contents of this release, including in the conference call referenced herein, contain forward-looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, that address activities that Vital Energy assumes, plans, expects, believes, intends, projects, indicates, enables, transforms, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. Such statements are not guarantees of future performance and involve risks, assumptions and uncertainties.

General risks relating to Vital Energy include, but are not limited to: the volatility of oil, NGL and natural gas prices, including the Company’s area of operation in the Permian Basin; changes, uncertainty and instability in domestic and global production, supply and demand for oil, NGL and natural gas, and actions by the Organization of the Petroleum Exporting Countries members and other oil exporting nations (“OPEC+”); changes in general economic, business or industry conditions and market volatility, including as a result of slowing growth, inflationary pressures, monetary policy, tariffs, trade barriers, price and exchange controls and other regulatory requirements, including such changes that may be implemented by the United States (“U.S.”) and foreign governments; the Company’s ability to execute its strategies, including its ability to successfully identify and consummate strategic acquisitions at purchase prices that are accretive to its financial results and to successfully integrate acquired businesses, assets and properties; the Company’s ability to optimize spacing, drilling and completions techniques in order to maximize its rate of return, cash flows from operations and stockholder value; the ongoing instability and uncertainty in the U.S. and international energy, financial and consumer markets that could adversely affect the liquidity available to the Company and its customers and the demand for commodities, including oil, NGL and natural gas; competition in the oil and gas industry; the Company’s ability to discover, estimate, develop and replace oil, NGL and natural gas reserves and inventory; insufficient transportation capacity in the Permian Basin and challenges associated with such constraint, and the availability and costs of sufficient gathering, processing, storage and export capacity; a decrease in production levels which may impair the Company’s ability to meet its contractual obligations and ability to retain its leases; risks associated with the uncertainty of potential drilling locations and plans to drill in the future; the inability of significant customers to meet their obligations; revisions to the Company’s reserve estimates as a result of changes in commodity prices, decline curves and other uncertainties; the availability and costs of drilling and production equipment, supplies, labor and oil and natural gas processing and other services; ongoing war and political instability in Ukraine, Israel and the Middle East and the effects of such conflicts on the global hydrocarbon market and supply chains; risks related to the geographic concentration of the Company’s assets; the Company’s ability to hedge commercial risk, including commodity price volatility, and regulations that affect the Company’s ability to hedge such risks; the Company’s ability to continue to maintain the borrowing capacity under its Senior Secured Credit Facility or access other means of obtaining capital and liquidity, especially during periods of sustained low commodity prices; the Company’s ability to comply with restrictions contained in its debt agreements, including its Senior Secured Credit Facility and the indentures governing its senior unsecured notes, as well as debt that could be incurred in the future; the Company’s ability to generate sufficient cash to service its indebtedness, fund its capital requirements and generate future profits; drilling and operating risks, including but not limited to, risks related to hydraulic fracturing, securing sufficient electricity to produce its wells without limitation, natural disasters and other matters beyond the Company’s control; U.S. and international economic conditions and legal, tax, political and administrative developments, including the effects of energy, trade and environmental policies and existing and future laws and government regulations; the Company’s ability to comply with federal, state and local regulatory requirements; the impact of repurchases, if any, of securities from time to time; the Company’s ability to maintain the health and safety of, as well as recruit and retain, qualified personnel, including senior management or other key personnel, necessary to operate its business; evolving cybersecurity risks such as those involving unauthorized access, denial-of-service attacks, third-party service provider failures, malicious software, data privacy breaches by employees, insiders or others with authorized access, cyber or phishing attacks, ransomware, social engineering, physical breaches or other actions; and the Company’s belief that the outcome of any current legal proceedings will not materially affect its financial results and operations, and other factors, including those and other risks described in its Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”), subsequent Quarterly Reports on Form 10-Q and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). These documents are available through Vital Energy’s website at www.vitalenergy.com under the tab “Investor Relations” or through the SEC’s Electronic Data Gathering and Analysis Retrieval System at www.sec.gov. Any of these factors could cause Vital Energy’s actual results and plans to differ materially from those in the forward-looking statements. Therefore, Vital Energy can give no assurance that its future results will be as estimated. Any forward-looking statement speaks only as of the date on which such statement is made. Vital Energy does not intend to, and disclaims any obligation to, correct, update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

This press release and any accompanying disclosures include financial measures that are not in accordance with generally accepted accounting principles (“GAAP”), such as Adjusted Free Cash Flow, Adjusted Net Income, Net Debt and Consolidated EBITDAX. While management believes that such measures are useful for investors, they should not be used as a replacement for financial measures that are in accordance with GAAP. For a reconciliation of such non-GAAP financial measures to the nearest comparable measure in accordance with GAAP, please see the supplemental financial information at the end of this press release.

Unless otherwise specified, references to “average sales price” refer to average sales price excluding the effects of the Company’s derivative transactions.

All amounts, dollars and percentages presented in this press release are rounded and therefore approximate.








Vital Energy, Inc. Selected operating data




	Three months ended March 31,
		2025			2024
	(unaudited)
Sales volumes:
Oil (MBbl)		5,840			5,327
NGL (MBbl)		3,484			2,934
Natural gas (MMcf)		19,742			18,534
Oil equivalent (MBOE)⁽¹⁾		12,614			11,349
Average daily oil equivalent sales volumes (BOE/d)⁽¹⁾		140,159			124,719
Average daily oil sales volumes (Bbl/d)⁽¹⁾		64,893			58,534
Average sales prices⁽¹⁾:
Oil ($/Bbl)⁽²⁾	$	72.31		$	78.06
NGL ($/Bbl)⁽²⁾	$	17.72		$	16.05
Natural gas ($/Mcf)⁽²⁾	$	1.38		$	0.98
Average sales price ($/BOE)⁽²⁾	$	40.54		$	42.39
Oil, with commodity derivatives ($/Bbl)⁽³⁾	$	75.78		$	74.95
NGL, with commodity derivatives ($/Bbl)⁽³⁾	$	17.09		$	15.92
Natural gas, with commodity derivatives ($/Mcf)⁽³⁾	$	1.52		$	1.41
Average sales price, with commodity derivatives ($/BOE)⁽³⁾	$	42.18		$	41.60
Selected average costs and expenses per BOE sold⁽¹⁾:
Lease operating expenses	$	8.20		$	9.32
Production and ad valorem taxes		2.63			2.70
Oil transportation and marketing expenses		0.80			0.87
Gas gathering, processing and transportation expenses		0.54			0.21
General and administrative (excluding LTIP and transaction expenses)		1.56			2.11
Total selected operating expenses	$	13.73		$	15.21
General and administrative (LTIP):
LTIP cash	$	(0.02	)	$	0.17
LTIP non-cash	$	0.26		$	0.28
General and administrative (transaction expenses)	$	—		$	0.03
Depletion, depreciation and amortization	$	15.05		$	14.64

____________________

(1)	The numbers presented are calculated based on actual amounts and may not recalculate using the rounded numbers presented in the table above.
(2)	Price reflects the average of actual sales prices received when control passes to the purchaser/customer adjusted for quality, certain transportation fees, geographical differentials, marketing bonuses or deductions and other factors affecting the price received at the delivery point.
(3)	Price reflects the after-effects of the Company’s commodity derivative transactions on its average sales prices. The Company’s calculation of such after-effects includes settlements of matured commodity derivatives during the respective periods.


Vital Energy, Inc. Consolidated balance sheets

(in thousands, except share data)	March 31, 2025			December 31, 2024
	(unaudited)
*Assets*
Current assets:
Cash and cash equivalents	$	28,649		$	40,179
Accounts receivable, net		254,343			299,698
Derivatives		100,497			101,474
Other current assets		24,757			25,205
Total current assets		408,246			466,556
Property and equipment:
Oil and natural gas properties, full cost method:
Evaluated properties		13,842,969			13,587,040
Unevaluated properties not being depleted		213,610			242,792
Less: accumulated depletion and impairment		(9,308,110	)		(8,966,200	)
Oil and natural gas properties, net		4,748,469			4,863,632
Midstream and other fixed assets, net		127,815			134,265
Property and equipment, net		4,876,284			4,997,897
Derivatives		53,211			34,564
Operating lease right-of-use assets		99,055			104,329
Deferred income taxes		241,698			239,685
Other noncurrent assets, net		32,999			35,915
Total assets	$	5,711,493		$	5,878,946
*Liabilities and stockholders’ equity*
Current liabilities:
Accounts payable and accrued liabilities	$	163,362		$	185,115
Accrued capital expenditures		115,626			95,593
Undistributed revenue and royalties		193,175			187,563
Operating lease liabilities		59,853			73,143
Other current liabilities		75,636			59,725
Total current liabilities		607,652			601,139
Long-term debt, net		2,310,268			2,454,242
Derivatives		—			5,814
Asset retirement obligations		74,999			82,941
Operating lease liabilities		30,760			26,733
Other noncurrent liabilities		5,309			7,506
Total liabilities		3,028,988			3,178,375
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized and zero issued as of March 31, 2025 and December 31, 2024		—			—
Common stock, $0.01 par value, 80,000,000 shares authorized, and 38,701,810 and 38,144,248 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		387			381
Additional paid-in capital		3,824,006			3,823,241
Accumulated deficit		(1,141,888	)		(1,123,051	)
Total stockholders’ equity		2,682,505			2,700,571
Total liabilities and stockholders’ equity	$	5,711,493		$	5,878,946


Vital Energy, Inc. Consolidated statements of operations

	Three months ended March 31,
(in thousands, except per share data)		2025			2024
	(unaudited)
Revenues:
Oil sales	$	422,332		$	415,784
NGL sales		61,739			47,075
Natural gas sales		27,338			18,245
Other operating revenues		771			1,235
Total revenues		512,180			482,339
Costs and expenses:
Lease operating expenses		103,485			105,728
Production and ad valorem taxes		33,225			30,614
Oil transportation and marketing expenses		10,120			9,833
Gas gathering, processing and transportation expenses		6,756			2,376
General and administrative		22,680			29,356
Depletion, depreciation and amortization		189,900			166,107
Impairment expense		158,241			—
Other operating expenses, net		1,913			1,018
Total costs and expenses		526,320			345,032
Gain (loss) on disposal of assets, net		110			130
Operating income (loss)		(14,030	)		137,437
Non-operating income (expense):
Gain (loss) on derivatives, net		44,171			(152,147	)
Interest expense		(50,380	)		(43,421	)
Gain (loss) on extinguishment of debt, net		—			(25,814	)
Other income (expense), net		353			2,065
Total non-operating income (expense), net		(5,856	)		(219,317	)
Income (loss) before income taxes		(19,886	)		(81,880	)
Income tax benefit (expense)		1,049			15,749
Net income (loss)		(18,837	)		(66,131	)
Preferred stock dividends		—			(349	)
Net income (loss) available to common stockholders	$	(18,837	)	$	(66,480	)
Net income (loss) per common share:
Basic	$	(0.50	)	$	(1.87	)
Diluted	$	(0.50	)	$	(1.87	)
Weighted-average common shares outstanding:
Basic		37,577			35,566
Diluted		37,577			35,566


Vital Energy, Inc. Consolidated statements of cash flows

	Three months ended March 31,
(in thousands)		2025			2024
	(unaudited)
Cash flows from operating activities:
Net income (loss)	$	(18,837	)	$	(66,131	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Share-settled equity-based compensation, net		3,604			3,501
Depletion, depreciation and amortization		189,900			166,107
Impairment expense		158,241			—
Mark-to-market on derivatives:
(Gain) loss on derivatives, net		(44,171	)		152,147
Settlements received (paid) for matured derivatives, net		20,687			(9,000	)
(Gain) loss on extinguishment of debt, net		—			25,814
Deferred income tax (benefit) expense		(1,811	)		(16,924	)
Other, net		9,551			5,402
Changes in operating assets and liabilities:
Accounts receivable, net		45,355			(51,475	)
Other current assets		10			(5,646	)
Other noncurrent assets, net		(3,634	)		(357	)
Accounts payable and accrued liabilities		(21,754	)		(9,064	)
Undistributed revenue and royalties		5,612			(12,865	)
Other current liabilities		16,099			(21,347	)
Other noncurrent liabilities		(7,867	)		(1,572	)
Net cash provided by (used in) operating activities		350,985			158,590
Cash flows from investing activities:
Acquisitions of oil and natural gas properties, net		(1,636	)		(4,380	)
Capital expenditures:
Oil and natural gas properties		(229,612	)		(195,372	)
Midstream and other fixed assets		(1,825	)		(5,085	)
Proceeds from dispositions of capital assets, net of selling costs		21,044			125
Other investing activities		(93	)		(952	)
Net cash provided by (used in) investing activities		(212,122	)		(205,664	)
Cash flows from financing activities:
Borrowings on Senior Secured Credit Facility		150,000			130,000
Payments on Senior Secured Credit Facility		(295,000	)		—
Issuance of senior unsecured notes		—			800,000
Extinguishment of debt		—			(453,518	)
Stock exchanged for tax withholding		(3,923	)		(3,411	)
Payments for debt issuance costs		—			(15,721	)
Other, net		(1,470	)		(1,012	)
Net cash provided by (used in) financing activities		(150,393	)		456,338
Net increase (decrease) in cash and cash equivalents		(11,530	)		409,264
Cash and cash equivalents, beginning of period		40,179			14,061
Cash and cash equivalents, end of period	$	28,649		$	423,325

Vital Energy, Inc.
Supplemental reconciliations of GAAP to non-GAAP financial measures

Non-GAAP financial measures

The non-GAAP financial measures of Adjusted Free Cash Flow, Adjusted Net Income, Consolidated EBITDAX, Net Debt and Net Debt to Consolidated EBITDAX, as defined by the Company, may not be comparable to similarly titled measures used by other companies. Furthermore, these non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP measures of liquidity or financial performance, but rather should be considered in conjunction with GAAP measures, such as net income or loss, operating income or loss or cash flows from operating activities.

Adjusted Free Cash Flow

Adjusted Free Cash Flow is a non-GAAP financial measure that the Company defines as net cash provided by (used in) operating activities (GAAP) before net changes in operating assets and liabilities and transaction expenses related to non-budgeted acquisitions, less capital investments, excluding non-budgeted acquisition costs. Management believes Adjusted Free Cash Flow is useful to management and investors in evaluating operating trends in its business that are affected by production, commodity prices, operating costs and other related factors. There are significant limitations to the use of Adjusted Free Cash Flow as a measure of performance, including the lack of comparability due to the different methods of calculating Adjusted Free Cash Flow reported by different companies.

This release also includes certain forward-looking non-GAAP measures. Due to the forward-looking nature of such measures, no reconciliations of these non-GAAP measures to their respective most directly comparable GAAP measure are available without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various reconciling items that would impact the most directly comparable forward-looking GAAP financial measure, that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. Accordingly, such reconciliations are excluded from this release. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

The following table presents a reconciliation of net cash provided by (used in) operating activities (GAAP) to Adjusted Free Cash Flow (non-GAAP) for the periods presented:


	Three months ended March 31,
(in thousands)		2025		2024
	(unaudited)
Net cash provided by (used in) operating activities	$	350,985	$	158,590
Less:
Net changes in operating assets and liabilities		33,821		(102,326	)
General and administrative (transaction expenses)		—		(332	)
Cash flows from operating activities before net changes in operating assets and liabilities and transaction expenses related to non-budgeted acquisitions		317,164		261,248
Less capital investments, excluding non-budgeted acquisition costs:
Oil and natural gas properties⁽¹⁾		251,264		213,265
Midstream and other fixed assets⁽¹⁾		1,407		4,635
Total capital investments, excluding non-budgeted acquisition costs		252,671		217,900
Adjusted Free Cash Flow (non-GAAP)	$	64,493	$	43,348

____________________

(1)	Includes capitalized share-settled equity-based compensation and asset retirement costs.

Adjusted Net Income

Adjusted Net Income is a non-GAAP financial measure that the Company defines as net income or loss (GAAP) plus adjustments for mark-to-market on derivatives, premiums paid or received for commodity derivatives that matured during the period, organizational restructuring expenses, impairment expense, gains or losses on disposal of assets, income taxes, other non-recurring income and expenses and adjusted income tax expense. Management believes Adjusted Net Income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors.

The following table presents a reconciliation of net income (loss) (GAAP) to Adjusted Net Income (non-GAAP) for the periods presented:


	Three months ended March 31,
(in thousands, except per share data)		2025			2024
	(unaudited)
Net income (loss)	$	(18,837	)	$	(66,131	)
Plus:
Mark-to-market on derivatives:
(Gain) loss on derivatives, net		(44,171	)		152,147
Settlements received (paid) for matured derivatives, net		20,687			(9,000	)
Impairment expense		158,241			—
(Gain) loss on disposal of assets, net		(110	)		(130	)
(Gain) loss on extinguishment of debt, net		—			25,814
Income tax (benefit) expense		(1,049	)		(15,749	)
General and administrative (transaction expenses)		—			332
Adjusted income before adjusted income tax expense		114,761			87,283
Adjusted income tax expense⁽¹⁾		(25,247	)		(19,202	)
Adjusted Net Income (non-GAAP)	$	89,514		$	68,081
Net income (loss) per common share:
Basic	$	(0.50	)	$	(1.87	)
Diluted	$	(0.50	)	$	(1.87	)
Adjusted Net Income per common share:
Basic	$	2.38		$	1.91
Diluted	$	2.38		$	1.91
Adjusted diluted	$	2.37		$	1.84
Weighted-average common shares outstanding:
Basic		37,577			35,566
Diluted		37,577			35,566
Adjusted diluted		37,736			36,922

_____________________

(1)	Adjusted income tax expense is calculated by applying a statutory tax rate of 22% for each of the periods ended March 31, 2025 and 2024.

Consolidated EBITDAX

Consolidated EBITDAX is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as net income or loss (GAAP) plus adjustments for share-settled equity-based compensation, depletion, depreciation and amortization, impairment expense, organizational restructuring expenses, gains or losses on disposal of assets, mark-to-market on derivatives, accretion expense, interest expense, income taxes and other non-recurring income and expenses. Consolidated EBITDAX provides no information regarding a company’s capital structure, borrowings, interest costs, capital expenditures, working capital movement or tax position. Consolidated EBITDAX does not represent funds available for future discretionary use because it excludes funds required for debt service, capital expenditures, working capital, income taxes, franchise taxes and other commitments and obligations. However, management believes Consolidated EBITDAX is useful to an investor because this measure:

is used by investors in the oil and natural gas industry to measure a company’s operating performance without regard to items that can vary substantially from company to company depending upon accounting methods, the book value of assets, capital structure and the method by which assets were acquired, among other factors;
helps investors to more meaningfully evaluate and compare the results of the Company’s operations from period to period by removing the effect of the Company’s capital structure from the Company’s operating structure; and
is used by management for various purposes, including (i) as a measure of operating performance, (ii) as a measure of compliance under the Senior Secured Credit Facility, (iii) in presentations to the board of directors and (iv) as a basis for strategic planning and forecasting.

There are significant limitations to the use of Consolidated EBITDAX as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect the Company’s net income or loss and the lack of comparability of results of operations to different companies due to the different methods of calculating Consolidated EBITDAX, or similarly titled measures, reported by different companies. The Company is subject to financial covenants under the Senior Secured Credit Facility, one of which establishes a maximum permitted ratio of Net Debt, as defined in the Senior Secured Credit Facility, to Consolidated EBITDAX. See Note 7 in the 2025 Annual Report, to be filed with the SEC, for additional discussion of the financial covenants under the Senior Secured Credit Facility. Additional information on Consolidated EBITDAX can be found in the Company’s Eleventh Amendment to the Senior Secured Credit Facility, as filed with the SEC on September 13, 2023.

The following table presents a reconciliation of net income (loss) (GAAP) to Consolidated EBITDAX (non-GAAP) for the periods presented:


	Three months ended March 31,
(in thousands)		2025			2024
	(unaudited)
Net income (loss)	$	(18,837	)	$	(66,131	)
Plus:
Share-settled equity-based compensation, net		3,604			3,501
Depletion, depreciation and amortization		189,900			166,107
Impairment expense		158,241			—
(Gain) loss on disposal of assets, net		(110	)		(130	)
Mark-to-market on derivatives:
(Gain) loss on derivatives, net		(44,171	)		152,147
Settlements received (paid) for matured derivatives, net		20,687			(9,000	)
Accretion expense		1,034			1,020
Interest expense		50,380			43,421
(Gain) loss extinguishment of debt, net		—			25,814
Income tax (benefit) expense		(1,049	)		(15,749	)
General and administrative (transaction expenses)		—			332
Consolidated EBITDAX (non-GAAP)	$	359,679		$	301,332

The following table presents a reconciliation of net cash provided by (used in) operating activities (GAAP) to Consolidated EBITDAX (non-GAAP) for the periods presented:


	Three months ended March 31,
(in thousands)		2025			2024
	(unaudited)
Net cash provided by (used in) operating activities	$	350,985		$	158,590
Plus:
Interest expense		50,380			43,421
Current income tax (benefit) expense		762			1,175
Net changes in operating assets and liabilities		(33,821	)		102,326
General and administrative (transaction expenses)		—			332
Other, net		(8,627	)		(4,512	)
Consolidated EBITDAX (non-GAAP)	$	359,679		$	301,332

Net Debt

Net Debt is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as the face value of long-term debt plus any outstanding letters of credit, less cash and cash equivalents, where cash and cash equivalents are capped at $100 million when there are borrowings on the Senior Secured Credit Facility. Management believes Net Debt is useful to management and investors in determining the Company’s leverage position since the Company has the ability, and may decide, to use a portion of its cash and cash equivalents to reduce debt.


(in thousands)	March 31, 2025		December 31, 2024
	(unaudited)
Total senior unsecured notes	$	1,600,578	$	1,600,578
Senior Secured Credit Facility		735,000		880,000
Total long-term debt	$	2,335,578	$	2,480,578
Less: cash and cash equivalents		28,649		40,179
Net Debt (non-GAAP)	$	2,306,929	$	2,440,399

Net Debt to Consolidated EBITDAX

Net Debt to Consolidated EBITDAX is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as Net Debt divided by Consolidated EBITDAX for the previous four quarters, which requires various treatment of asset transaction impacts. Net Debt to Consolidated EBITDAX is used by the Company’s management for various purposes, including as a measure of operating performance, in presentations to its board of directors and as a basis for strategic planning and forecasting.

Investor Contact:
Ron Hagood
918.858.5504
ir@vitalenergy.com

The MIL Network –

May 13, 2025

MIL-OSI: Oxbridge Re Highlights Growth in Tokenized Reinsurance, Strategic Partnerships, and Reports Q1 2025 Results

Source: GlobeNewswire (MIL-OSI)

GRAND CAYMAN, Cayman Islands, May 12, 2025 (GLOBE NEWSWIRE) — Oxbridge Re Holdings Limited (NASDAQ: OXBR), (the “Company”), which together with its subsidiary SurancePlus is engaged in the business of tokenized Real-World Assets (“RWAs”), initially in the form of tokenized reinsurance securities, and reinsurance business solutions to property and casualty casualty – bridging the gap between the SEC, blockchain, and tokenization. The company today, reported its results for the three months ended March 31, 2025.

“As the first Nasdaq-listed company to issue a tokenized security in reinsurance, Oxbridge Re, through SurancePlus, is transforming access to this asset class,” said Jay Madhu, Chairman and CEO of Oxbridge Re. “We are proud of our progress and remain focused on expanding SurancePlus, democratizing access to reinsurance with a commitment to transparency and compliance.”

The Company recently signed a Memorandum of Understanding (MOU) with Plume, a blockchain platform managing over $4.5 billion in assets and serving 18 million unique addresses. This partnership represents a significant opportunity to enhance distribution, while Oxbridge Re continues to explore additional partnerships to further broaden its reach.

SurancePlus is also highlighting its previously launched 2025–2026 tokenized reinsurance offerings, which provide a diverse range of investment opportunities. These offerings include a balanced-yield product targeting a 20% annual return, designed for investors seeking stable, attractive yields with moderate risk, and a high-yield option targeting a 42% annual return. These options broaden the investor base, offering both risk-averse and high-return-seeking investors a compliant, blockchain-powered pathway to participate in the reinsurance sector.

The company actively participated in major global tokenization and blockchain events, including Consensus 2024 in Austin, Texas, Token2049 in Singapore, and Token2049 in Dubai. These forums provided an opportunity to showcase SurancePlus, strengthen industry relationships, and explore collaborative opportunities with leading blockchain platforms.

“Supported by a strong balance sheet and a disciplined approach, we are well-positioned to capitalize on emerging opportunities in the RWA sector,” added Madhu. “Looking ahead, we remain committed to scaling SurancePlus with integrity, innovation, and a focus on long-term value creation.”

Financial Performance

Net premiums earned for the quarter ended March 31, 2025 increased to $595,000 from $549,000 for the quarter ended March 31, 2024. The increase is due to the rates on contracts that were in force in the quarter ended March 31, 2025 when compared to the contracts in force in the prior period.

For the three months ended March 31, 2025, the Company generated net loss of $139,000 or ($0.02) per basic and diluted loss per share compared to net loss of $905,000 or ($0.15) per basic and diluted earnings per share, for the quarter ended March 31, 2024. The decrease in net loss is primarily due to the positive change in the fair value of equity securities and sale of investments in Jet.AI during the quarter ended March 31, 2025 when compared with the prior period.

For the three months ended March 31, 2025, total expenses, including policy acquisition costs and general and administrative expenses, increased to $570,000 from $548,000 for the quarter ended March 31, 2024. The increase is primarily due to the value stock-based compensation incurred during the three-month period ending March 31, 2025 as a result of higher share price on grant date.

As of March 31, 2025, our restricted cash, and cash equivalents increased by $3.7 million, or 62.85%, to $9.6 million, from $5.9 million as of December 31, 2024. The increase is primarily due to premium deposits made during the three months ending March 31, 2025 as well the completion of a registered direct offering that generated $2.7 million net of expenses.

Financial Ratios

Loss Ratio. The loss ratio is the ratio of losses and loss adjustment expenses incurred to premiums earned and measures the underwriting profitability of our reinsurance business. The loss ratio remained consistent at 0% for the quarter end March 31, 2025 compared with the quarter ended March 31, 2024.

Acquisition Cost Ratio. The acquisition cost ratio is the ratio of policy acquisition costs and other underwriting expenses to net premiums earned. The acquisition cost ratio measures our operational efficiency in producing, underwriting and administering our reinsurance business.

The acquisition cost ratio remained consistent at 10.9% for the quarter end March 31, 2025 compared with the quarter ended March 31, 2024.

Expense Ratio. The expense ratio is the ratio of policy acquisition costs and general and administrative expenses to net premiums earned. We use the expense ratio to measure our operating performance. The expense ratio decreased marginally from 99.8% for the three-month period ended March 31, 2024 to 95.8% for the three-month period ended March 31, 2025. The decrease is due to higher net premiums earned during the three-month period ended March 31, 2025, when compared with the prior period.

Combined ratio. We use the combined ratio to measure our underwriting performance. The combined ratio is the sum of the loss ratio and the expense ratio. The combined ratio decreased marginally from 99.8% for the three-month period ended March 31, 2024 to 95.8% for the three-month period ended March 31, 2025. The decrease is due to higher net premiums earned during the three-month period ended March 31, 2025, when compared with the prior period.

Conference Call

Management will host a conference call later today to discuss these financial results, followed by a question and answer session. The Company’s President and Chief Executive Officer Jay Madhu and Chief Financial Officer Wrendon Timothy will host the call starting at 4:30 p.m. Eastern time. The live presentation can be accessed by dialing the number below.

Date: May 12, 2025
Time: 4.30 p.m. Eastern time
Toll-free number: 877-524-8416
International number: +1 412-902-1028

Please call the conference telephone number 15 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact InComm Conferencing at +1-201-493-6280 or media@incommconferencing.com

A replay of the call will be available by telephone after 4:30 p.m. Eastern time on the same day of the call until May 26, 2025.

Toll-free replay number: 877-660-6853
International replay number: +1-201-612-7415
Conference ID: 13753764

About Oxbridge Re Holdings Limited

Oxbridge Re Holdings Limited (NASDAQ: OXBR, OXBRW) (“Oxbridge Re”) is headquartered in the Cayman Islands. The company offers tokenized Real-World Assets (“RWAs”) as tokenized reinsurance securities and reinsurance business solutions to property and casualty insurers, through its wholly owned subsidiaries Oxbridge Reinsurance Limited, Oxbridge Re NS, and SurancePlus Inc.

Insurance businesses in the Gulf Coast region of the United States purchase property and casualty reinsurance through our licensed reinsurers Oxbridge Reinsurance Limited and Oxbridge Re NS.

Our new Web3-focused subsidiary, SurancePlus Inc. (“SurancePlus”), has developed the first “on-chain” reinsurance RWA of its kind to be sponsored by a subsidiary of a publicly traded company. By digitizing interests in reinsurance contracts as on-chain RWAs, SurancePlus has democratized the availability of reinsurance as an alternative investment to both U.S. and non-U.S. investors.

Forward-Looking Statements

This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission (“SEC”) on 26th March 2025. The occurrence of any of these risks and uncertainties could have a material adverse effect on the Company’s business, financial condition and results of operations. Any forward-looking statements made in this press release speak only as of the date of this press release and, except as required by law, the Company undertakes no obligation to update any forward-looking statement contained in this press release, even if the Company’s expectations or any related events, conditions or circumstances change.

Company Contact:

Oxbridge Re Holdings Limited
Jay Madhu, CEO
345-749-7570
jmadhu@oxbridgere.com

OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(expressed in thousands of U.S. Dollars, except per share and share amounts)

	At March 31, 2025			At December 31, 2024

Assets
Equity securities, at fair value (cost: $1,532 and $1,532)	$	116			113
Cash and cash equivalents		4,963			2,135
Restricted cash and cash equivalents		4,634			3,758
Premiums receivable		223			1,059
Other Investments		–			48
Deferred policy acquisition costs		44			109
Operating lease right-of-use assets		122			148
Prepayment and other assets		160			94
Property and equipment, net		1			1
Total assets	$	10,263			7,465

Liabilities and Shareholders’ Equity
Liabilities:
Notes payable to noteholders		118			118
Unearned Premium Reserve		397			991
Operating lease liabilities		122			148
Accounts payable and other liabilities		432			366
Total liabilities		1,069			1,623

Mezzanine Equity
Due to EpsilonCat Re / DeltaCat Re Tokenholders		1,979			1,732

Shareholders’ equity:
Ordinary share capital, (par value $0.001, 50,000,000 shares authorized; 7,442,922 and 6,379,002 shares issued and outstanding)		6			6
Additional paid-in capital		37,335			34,105
Accumulated Deficit		(30,302	)		(30,163	)
Total Oxbridge shareholders’ equity		7,039			3,948
Non-controlling interests		176			162
Total shareholders’ equity		7,215			4,110
Total liabilities and shareholders’ equity	$	10,263			7,465

OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(expressed in thousands of U.S. Dollars, except per share amounts)

	Three Months Ended March 31,
	2025			2024

Revenue
Net premiums earned		595			549
Net investment and other income		79			63
Net realized investment gain		–			–
Interest and gain on redemption of loan receivable		–			41
Unrealized gain on other investments		(20	)		(688	)
Realized gain on other investments		35			–
Change in fair value of equity securities		3			(90	)

Total revenue		692			(125	)

Expenses
Policy acquisition costs and underwriting expenses		65			60
General and administrative expenses		505			488

Total expenses		570			548

Income (loss) before income attributable to tokenholders and non-controlling interests		122			(673	)

Income attributable to tokenholders		(247	)		(232	)

Loss before income attributable to non-controlling interests		(125	)		(905	)

Income attributable to non-controlling interests		(14	)		–
Net loss attributable to ordinary shareholders		(139	)		(905	)

Loss per share attributable to ordinary shareholders
Basic and Diluted		(0.02	)		(0.15	)

Weighted-average shares outstanding
Basic and Diluted		6,899,062			6,005,162

Performance ratios to net premiums earned:
Loss ratio		0.0	%		0.0	%
Acquisition cost ratio		10.9	%		10.9	%
Expense ratio		95.8	%		99.8	%
Combined ratio		95.8	%		99.8	%

The MIL Network –

May 13, 2025

MIL-OSI: Natural Gas Services Group, Inc. Reports First Quarter 2025 Financial and Operating Results; Increases 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

Midland, Texas, May 12, 2025 (GLOBE NEWSWIRE) — Natural Gas Services Group, Inc. (“NGS” or the “Company”) (NYSE:NGS), a leading provider of natural gas compression equipment, technology, and services to the energy industry, today announced financial results for the three months ended March 31, 2025. The Company also raised the high-end of its full-year 2025 Adjusted EBITDA guidance to $79 million, citing continued strength in its business and growing demand across its fleet.

First Quarter 2025 Highlights

Rental revenue of $38.9 million for the first quarter of 2025 representing a 15% year-over-year increase and a 2% sequential increase compared to the period ended December 31, 2024.

Net income of $4.9 million or $0.38 per diluted share for the first quarter of 2025 compared to net income of $5.1 million or $0.41 per diluted share for the comparable period; net income up $2.0 million sequentially.

Leverage ratio at March 31, 2025, was 2.18x.

Adjusted EBITDA of $19.3 million for the first quarter of 2025, representing a 14% year-over-year increase; Adjusted EBITDA up 7% sequentially. See Non-GAAP Financial Measures – Adjusted EBITDA, below.

Management Commentary and Outlook
“We are pleased to report another quarter of strong execution and continued momentum across our business,” said Justin Jacobs, Chief Executive Officer. “We are taking market share, expanding our presence in key basins, and investing in our fleet, including the deployment of large-horsepower electric motor units. Our recent credit facility expansion, which also decreased our interest rate and provided more flexible covenants, further improves our ability to take advantage of organic and inorganic growth opportunities.”

Jacobs continued, “While broader market uncertainty increased in recent weeks—driven primarily by tariff concerns, commodity price volatility, and macroeconomic factors—we are not seeing any meaningful direct impact on our operations. We will continue to monitor indirect effects closely, but we remain confident in our ability to deliver results consistent with our guidance.”

“We increased our EBITDA outlook to reflect our first quarter outperformance relative to internal expectations and our confidence in the trajectory of the business. We remain excited about our prospects as we look to the remainder of 2025 and into 2026. Our team remains focused on disciplined capital allocation, operational excellence, and long-term value creation for our shareholders.”

Corporate Guidance — 2025 Outlook

The Company today provides updates to its previously announced guidance for the 2025 Fiscal Year. Based on a strong start to the year in the first quarter and its confidence for the remainder of the year, the Company today increased the high-end of its adjusted EBITDA guidance to $79 million. The Company now anticipates adjusted EBITDA for the 2025 Fiscal Year to be in the range of $74 – $79 million.

The Company also reaffirms its outlook for 2025 growth capital expenditures of between $95 – $120 million, which are mostly comprised of new units (essentially all of which are under contract). Once all these units are deployed, which is expected by early 2026, the Company expects its rented horsepower fleet to increase by approximately 90,000 horsepower, representing an increase of approximately 18% compared to year-end 2024. Customer deployments remain on schedule and the timing of deployments as previously noted is heavily weighted to the second half of 2025 and early 2026. Additionally, the Company anticipates 2025 maintenance expenditures of $10 – $13 million, consistent with its prior guidance and its target return on invested capital of 20% remains unchanged.

The Company also reiterates the statement from the 2024 year end release that once all the 2025 growth capital expenditures are spent and the units are deployed, its “run rate” Adjusted EBITDA should increase at a rate (when compared to the fourth quarter of 2024) well in excess of (but less than double the rate of) the Company’s anticipated horsepower growth of 18%.

	Outlook
NEW FY 2025 Adjusted EBITDA	$74 million – $79 million
FY 2025 Growth Capital Expenditures	$95 million – $120 million
FY 2025 Maintenance Capital Expenditures	$10 million – $13 million
Target Return on Invested Capital	At least 20%

Jacobs concluded, “We have multiple pathways to build on our industry-leading growth and drive shareholder value: fleet optimization, asset utilization (both unutilized units and non-cash assets), new rental units (both electric motor and natural gas engine), and accretive mergers and acquisitions. Given our strong balance sheet, low relative leverage, and recent increase in our borrowing capacity, we are well positioned to capitalize on opportunities for significant growth throughout the remainder of 2025.”

2025 First Quarter Financial Results

Revenue: Total revenue for the three months ended March 31, 2025, increased 12% to $41.4 million from $36.9 million for the three months ended March 31, 2024. This increase was primarily due to higher rental revenues for the comparable periods. Rental revenue increased 15% to $38.9 million from $33.7 million in the first quarter of 2024 due to the addition of higher horsepower packages and pricing improvements. As of March 31, 2025, we had 492,679 rented horsepower (1,202 rented units) compared to 444,220 horsepower (1,245 rented units) as of March 31, 2024, reflecting an 11% increase in total utilized horsepower. Sequentially, total revenue increased 2% from $40.7 million primarily related to higher rental revenue for the current period.

Gross Margins and Adjusted Gross Margins: Total gross margins, including depreciation expense increased to $15.7 million for the three months ended March 31, 2025, compared to $14.2 million for the same period in 2024 and increased on a sequential basis from $14.6 million for the three months ended December 31, 2024. Total adjusted gross margin, exclusive of depreciation expense, increased to $24.3 million for the three months ended March 31, 2025, compared to $21.1 million for the same period in 2024. On a sequential basis, total adjusted gross margin, exclusive of depreciation expense increased by $1.3 million compared to $23.0 million for the period ended December 31, 2024. For a reconciliation of Gross Margin, see Non-GAAP Financial Measures – Adjusted Gross Margin, below.

Operating Income: Operating income for the three months ended March 31, 2025, was $9.5 million compared to operating income of $9.3 million for the comparable 2024 period. On a sequential basis, operating income increased $3.5 million compared to $6.0 million for the period ended December 31, 2024.

Net Income: Net income for the three months ended March 31, 2025, was $4.9 million, or $0.38 per diluted share compared to net income of $5.1 million or $0.41 per diluted share for the comparable 2024 period. On a sequential basis, net income increased $2.0 million when compared to net income of $2.9 million, or $0.23 per diluted share, in the fourth quarter of 2024. The modest year-over-year decline in net income was primarily related to an adjustment to inventory allowance, retirement of rental equipment, a gain on the sale of property and equipment, as well as an increase in depreciation and amortization. The sequential improvement in net income was primarily driven by higher rental revenue and rental gross margin.

Cash Flows: At March 31, 2025, cash and cash equivalents were approximately $2.1 million, while working capital was $24.7 million. For the three months ended March 31, 2025, cash flows provided by operating activities were $21.3 million, while cash flows used in investing activities was $19.3 million. This compares to cash flows from operating activities of $5.6 million and cash flows used in investing activities of $10.9 million for the comparable three-month period in 2024. Cash flow used in investing activities during the first quarter 2025 included $19.3 million in capital expenditures.

Adjusted EBITDA: Adjusted EBITDA increased 14% to $19.3 million for the three months ended March 31, 2025, from $16.9 million for the same period in 2024. The increase was primarily attributable to higher rental revenue and rental adjusted gross margin. Sequentially, Adjusted EBITDA increased 7% when compared to $18.0 million for the three months ended December 31, 2024.

Debt: Outstanding debt on our revolving credit facility as of March 31, 2025, was $168 million. Our leverage ratio at March 31, 2025, was 2.18x and our fixed charge coverage ratio was 2.98x. The Company is in compliance with all terms, conditions and covenants of the credit agreement.

Selected data: The tables below show revenue by product line, gross margin and adjusted gross margin for the trailing five quarters. Adjusted gross margin is the difference between revenue and cost of sales, exclusive of depreciation.

	Revenues
	Three months ended
	March 31, 2024	June 30, 2024	September 30, 2024	December 31, 2024	March 31, 2025
	($ in 000)	($ in 000)	($ in 000)	($ in 000)	($ in 000)
Rentals	$ 33,734	$ 34,926	$ 37,350	$ 38,226	$ 38,910
Sales	2,503	2,270	1,843	997	1,927
Aftermarket services	670	1,295	1,493	1,435	546
Total	$ 36,907	$ 38,491	$ 40,686	$ 40,658	$ 41,383

	Gross Margin
	Three months ended
	March 31, 2024	June 30, 2024	September 30, 2024	December 31, 2024	March 31, 2025
	($ in 000)	($ in 000)	($ in 000)	($ in 000)	($ in 000)
Rentals	$ 13,761	13,211	15,043	14,865	$ 15,634
Sales	253	(50)	(258)	(531)	(181)
Aftermarket services	163	269	151	296	264
Total	$ 14,177	$ 13,430	$ 14,936	$ 14,630	$ 15,717

	Adjusted Gross Margin ⁽¹⁾
	Three months ended
	March 31, 2024	June 30, 2024	September 30, 2024	December 31, 2024	March 31, 2025
	($ in 000)	($ in 000)	($ in 000)	($ in 000)	($ in 000)
Rentals	20,620	20,698	22,908	23,107	24,070
Sales	323	21	(185)	(449)	(89)
Aftermarket services	170	283	169	321	275
Total	$ 21,113	$ 21,002	$ 22,892	$ 22,979	$ 24,256

	Adjusted Gross Margin %
	Three months ended
	March 31, 2024	June 30, 2024	September 30, 2024	December 31, 2024	March 31, 2025
Rentals	61.1 %	59.3 %	61.3 %	60.4 %	61.9 %
Sales	12.9 %	0.9 %	(10.0) %	(45.0) %	(4.6) %
Aftermarket services	25.4 %	21.9 %	11.3 %	22.4 %	50.4 %
Total	57.2 %	54.6 %	56.3 %	56.5 %	58.6 %

	Compression Units (at end of period):
	Three months ended
	March 31, 2024	June 30, 2024	September 30, 2024	December 31, 2024	March 31, 2025
Horsepower Utilized	444,220	454,568	475,534	491,756	492,679
Total Horsepower	542,256	552,599	579,699	598,840	603,391
Horsepower Utilization	81.9 %	82.3 %	82.0 %	82.1 %	81.7 %

Units Utilized	1,245	1,242	1,229	1,208	1,202
Total Units	1,894	1,899	1,909	1,912	1,916
Unit Utilization	65.7 %	65.4 %	64.4 %	63.2 %	62.7 %

(1) For a reconciliation of adjusted gross margin to its most directly comparable financial measure calculated and presented in accordance with GAAP, please read “Non-GAAP Financial Measures – Adjusted Gross Margin” below.

Non-GAAP Financial Measure – Adjusted Gross Margin: “Adjusted Gross Margin” is defined as total revenue less costs of revenues (excluding depreciation and amortization expense). Adjusted Gross Margin is included as a supplemental disclosure because it is a primary measure used by our management as it represents the results of revenue and costs (excluding depreciation and amortization expense), which are key components of our operations. Adjusted Gross Margin differs from gross margin, in that gross margin includes depreciation and amortization expense. We believe Adjusted Gross Margin is important because it focuses on the current operating performance of our operations and excludes the impact of the prior historical costs of the assets acquired or constructed that are utilized in those operations. Depreciation and amortization expense does not accurately reflect the costs required to maintain and replenish the operational usage of our assets and therefore may not portray the costs from current operating activity. Rather, depreciation and amortization expense reflects the systematic allocation of historical property and equipment costs over their estimated useful lives.

Adjusted Gross Margin has certain material limitations associated with its use as compared to gross margin. These limitations are primarily due to the exclusion of depreciation and amortization expense, which is material to our results of operations. Because we use capital assets, depreciation and amortization expense is a necessary element of our costs and our ability to generate revenue. In order to compensate for these limitations, management uses this non-GAAP measure as a supplemental measure to other GAAP results to provide a more complete understanding of our performance. As an indicator of our operating performance, Adjusted Gross Margin should not be considered an alternative to, or more meaningful than, gross margin as determined in accordance with GAAP. Our Adjusted Gross Margin may not be comparable to a similarly titled measure of another company because other entities may not calculate Adjusted Gross Margin in the same manner.

The following table shows gross margin, the most directly comparable GAAP financial measure, and reconciles it to Adjusted Gross Margin:

	Three months ended
	March 31, 2024	June 30, 2024	September 30, 2024	December 31, 2024	March 31, 2025
	(in thousands)
Total revenue	$ 36,907	$ 38,491	$ 40,686	$ 40,658	$ 41,383
Costs of revenue, exclusive of depreciation	(15,794)	(17,489)	(17,794)	(17,679)	(17,127)
Depreciation allocable to costs of revenue	(6,936)	(7,572)	(7,956)	(8,349)	(8,539)
Gross margin	14,177	13,430	14,936	14,630	15,717
Depreciation allocable to costs of revenue	6,936	7,572	7,956	8,349	8,539
Adjusted Gross Margin	$ 21,113	$ 21,002	$ 22,892	$ 22,979	$ 24,256

Non-GAAP Financial Measures – Adjusted EBITDA: “Adjusted EBITDA” is a non-GAAP financial measure that we define as net income (loss) before interest, taxes, depreciation and amortization, as well as an increase in inventory allowance, impairments, retirement of rental equipment, nonrecurring restructuring charges including severance and non-cash equity-classified stock-based compensation expenses. This term, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, management believes Adjusted EBITDA is useful to an investor in evaluating our operating performance because: (i) it is widely used by investors in the energy industry to measure a company’s operating performance without regard to items excluded from the calculation of Adjusted EBITDA, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired, among other factors; (ii) it helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure and asset base from our operating structure; (iii) it is used by our management for various purposes, including as a measure of operating performance, in presentations to our Board of Directors, and as a basis for strategic planning and forecasting.

Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows: (i) Adjusted EBITDA does not reflect all our cash expenditures, future requirements for capital expenditures, or contractual commitments; (ii) Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; (iii) Adjusted EBITDA does not reflect the cash requirements necessary to service interest or principal payments on our debt and finance leases; and (iv) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any capital expenditures for such replacements.

The following table reconciles our net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA:

	Three months ended
	March 31, 2024	June 30, 2024	September 30, 2024	December 31, 2024	March 31, 2025
	(in thousands)
Net income	$ 5,098	4,250	$ 5,014	$ 2,865	$ 4,854
Interest expense	2,935	2,932	3,045	3,015	3,170
Income tax expense (benefit)	1,479	1,294	1,383	283	1,482
Depreciation and amortization	7,087	7,705	8,086	8,469	8,636
Impairments	—	—	136	705	—
Inventory allowance	—	—	—	1,863	61
Retirement of rental equipment	5	—	—	23	728
Severance and restructuring	—	33	—	—	—
Stock-based compensation	274	242	522	783	359
Adjusted EBITDA	$ 16,878	$ 16,456	$ 18,186	$ 18,006	$ 19,290

Conference Call Details: The Company will host a conference call to review its fourth-quarter and year-end financial results on Tuesday, May 13, 2025 at 8:30 a.m. (EST), 7:30 a.m. (CST). To join the conference call, kindly access the Investor Relations section of our website at www.ngsgi.com or dial in at (800) 550-9745 and enter conference ID 167298 at least five minutes prior to the scheduled start time. Please note that using the provided dial-in number is necessary for participation in the Q&A section of the call. A recording of the conference will be made available on our Company’s website following its conclusion. Thank you for your interest in our Company’s updates.

About Natural Gas Services Group, Inc. (NGS): Natural Gas Services Group is a leading provider of natural gas compression equipment, technology and services to the energy industry. The Company designs, rents, sells and maintains natural gas compressors for oil and natural gas production and plant facilities, primarily using equipment from third-party fabricators and OEM suppliers along with limited in-house assembly. The Company is headquartered in Midland, Texas, with a fabrication facility located in Tulsa, Oklahoma, and service facilities located in major oil and natural gas producing basins in the U.S. Additional information can be found at www.ngsgi.com.

Forward-Looking Statements

Certain statements herein (and oral statements made regarding the subjects of this release) constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions.

These forward–looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of the Company. Forward–looking information includes, but is not limited to statements regarding: guidance or estimates related to EBITDA growth, projected capital expenditures; returns on invested capital, fundamentals of the compression industry and related oil and gas industry, valuations, compressor demand assumptions and overall industry outlook, and the ability of the Company to capitalize on any potential opportunities.
While the Company believes that the assumptions concerning future events are reasonable, investors are cautioned that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Some of these factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to:

conditions in the oil and gas industry, including the supply and demand for oil and gas and volatility in the prices of oil and gas;

changes in general economic and financial conditions, inflationary pressures, the potential for economic recession in the U.S., tariffs and trade restrictions, including the imposition of new and higher tariffs on imported goods and retaliatory tariffs implemented by other countries on U.S. goods, and the potential effects on our financial condition, results of operations and cash flows;

our reliance on major customers;

failure of projected organic growth due to adverse changes in the oil and gas industry, including depressed oil and gas prices, oppressive environmental regulations and competition;

our inability to achieve increased utilization of assets, including rental fleet utilization and monetizing other non-cash balance sheet assets;

failure of our customers to continue to rent equipment after expiration of the primary rental term;

our ability to economically develop and deploy new technologies and services, including technology to comply with health and environmental laws and regulations;

failure to achieve accretive financial results in connection with any acquisitions we may make;

fluctuations in interest rates;

changes in regulation or prohibition of new or current well completion techniques;

competition among the various providers of compression services and products;

changes in safety, health and environmental regulations;

changes in economic or political conditions in the markets in which we operate;

the inherent risks associated with our operations, such as equipment defects, malfunctions, natural disasters and adverse changes in customer, employee and supplier relationships;

our inability to comply with covenants in our debt agreements and the decreased financial flexibility associated with our debt;

inability to finance our future capital requirements and availability of financing;

capacity availability, costs and performance of our outsourced compressor fabrication providers and overall inflationary pressures;

impacts of world events, such as acts of terrorism and significant economic disruptions and adverse consequences resulting from possible long-term effects of potential pandemics and other public health crises; and

general economic conditions.

In addition, these forward-looking statements are subject to other various risks and uncertainties, including without limitation those set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

For More Information, Contact:
Anna Delgado, Investor Relations
(432) 262-2700
IR@ngsgi.com
www.ngsgi.com

NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value) (unaudited)

	March 31, 2025	December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$ 2,147	$ 2,142
Trade accounts receivable, net of provision for credit losses	15,415	15,626
Inventory, net of allowance for obsolescence	17,343	18,051
Federal income tax receivable	11,263	11,282
Prepaid expenses and other	992	1,075
Total current assets	47,160	48,176
Long-term inventory, net of allowance for obsolescence	—	—
Rental equipment, net of accumulated depreciation	424,856	415,021
Property and equipment, net of accumulated depreciation	23,570	22,989
Other assets	6,105	6,342
Total assets	$ 501,691	$ 492,528
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$ 14,977	$ 9,670
Accrued liabilities	7,468	7,688
Total current liabilities	22,445	17,358
Long-term debt	168,000	170,000
Deferred income taxes	47,323	45,873
Other long-term liabilities	3,659	4,240
Total liabilities	241,427	237,471
Commitments and contingencies
Stockholders’ Equity:
Preferred stock	—	—
Common stock, 30,000 shares authorized, par value $0.01; 13,784 and 13,762 shares issued, respectively	138	138
Additional paid-in capital	118,768	118,415
Retained earnings	156,362	151,508
Treasury shares, at cost, 1,310 shares for each of the dates presented, respectively	(15,004)	(15,004)
Total stockholders’ equity	260,264	255,057
Total liabilities and stockholders’ equity	$ 501,691	$ 492,528

NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except earnings per share) (unaudited)

	Three months ended
	March 31,
	2025	2024
Revenue:
Rental	$ 38,910	$ 33,734
Sales	1,927	2,503
Aftermarket services	546	670
Total revenue	41,383	36,907
Cost of revenue (excluding depreciation and amortization):
Rental	14,840	13,114
Sales	2,016	2,180
Aftermarket services	271	500
Total cost of revenues (excluding depreciation and amortization)	17,127	15,794
Selling, general and administrative expense	5,378	4,702
Depreciation and amortization	8,636	7,087
Inventory allowance	61	—
Retirement of rental equipment	728	5
Gain on sale of assets, net	(54)	—
Total operating costs and expenses	31,876	27,588
Operating income	9,507	9,319
Other income (expense):
Interest expense	(3,170)	(2,935)
Other income (expense)	(1)	193
Total other income (expense), net	(3,171)	(2,742)
Income before income taxes	6,336	6,577
Provision for income taxes	(1,482)	(1,479)
Net income	$ 4,854	$ 5,098
Earnings per share:
Basic	0.39	0.41
Diluted	0.38	0.41
Weighted average shares outstanding:
Basic	12,462	12,380
Diluted	12,611	12,465

NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
	Three months ended
	March 31,
	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 4,854	$ 5,098
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,636	7,087
Inventory allowance	61	—
Retirement of rental equipment	728	5
Gain on sale of assets, net	(54)	—
Amortization of debt issuance costs	212	150
Deferred income taxes	1,450	1,456
Stock-based compensation	359	274
Provision for credit losses	208	110
Loss (gain) on company owned life insurance	17	(184)
Changes in operating assets and liabilities:
Trade accounts receivables	3	(3,265)
Inventory	647	2,650
Prepaid expenses and prepaid income taxes	64	250
Accounts payable and accrued liabilities	4,617	(8,380)
Other	(535)	358
NET CASH PROVIDED BY OPERATING ACTIVITIES	21,267	5,609
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of rental equipment, property and other equipment	(19,256)	(10,932)
Purchase of company owned life insurance	—	(9)
NET CASH USED IN INVESTING ACTIVITIES	(19,256)	(10,941)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facility borrowings	6,000	8,000
Repayments of credit facility borrowings	(8,000)	—
Payments of other long-term liabilities	—	(175)
Taxes paid related to net share settlement of equity awards	(6)	—
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(2,006)	7,825
NET CHANGE IN CASH AND CASH EQUIVALENTS	5	2,493
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	2,142	2,746
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 2,147	$ 5,239
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	$ 3,510	$ 6,220
Income taxes paid	$ 16	$ —
NON-CASH TRANSACTIONS
Accrued purchases of property and equipment	$ 524	$ —
Right of use asset acquired through an finance lease	$ —	$ 532

The MIL Network –

May 13, 2025

MIL-OSI: Royalty Pharma Announces Shareholder Approval of its External Manager Acquisition

Source: GlobeNewswire (MIL-OSI)

Received overwhelming shareholder approval with 99.9% of votes cast in favor
Simplified structure benefits shareholders through strengthened shareholder alignment, enhanced governance, significant cash savings and increased economic return on investments
Significant annual cash savings of greater than $100 million in 2026 growing to over $175 million in 2030, with cumulative savings of more than $1.6 billion over ten years
Royalty Pharma’s diversified royalty portfolio to be combined with intellectual capital and investment platform of the Manager to advance shareholder value creation

NEW YORK, May 12, 2025 (GLOBE NEWSWIRE) — Royalty Pharma plc (Nasdaq: RPRX) today announced that shareholders overwhelmingly approved its previously announced external manager acquisition, with 99.9% voting in favor at Royalty Pharma’s 2025 Annual General Meeting and Special Meeting of Shareholders (the “Meeting”), marking a key milestone for the company.

“We are pleased to announce shareholder approval of our manager internalization, an important step that strengthens our corporate governance, enhances transparency, and further aligns our leadership team with shareholder interests,” said Pablo Legorreta, founder and Chief Executive Officer of Royalty Pharma. “We are grateful for the strong support from our shareholders, and remain focused on delivering long-term value through our differentiated, innovation-focused business model.”

With shareholder approval, Royalty Pharma will proceed with its transition from an external manager model to an integrated corporate structure, with the Royalty Pharma executive team and employees becoming direct employees of the company.

Key Benefits to Shareholders

The transaction is expected to result in multiple benefits for shareholders. On a financial basis, the acquisition is expected to reduce costs and enhance economic returns on investments. Specifically, the acquisition will generate cash savings of greater than $100 million in 2026 and greater than $175 million in 2030, and drive cumulative savings of greater than $1.6 billion over ten years. The acquisition also increases shareholder alignment, enhances corporate governance, ensures management continuity, maximizes employee retention as a result of the 5 to 9 year vesting of the shares received by management and simplifies Royalty Pharma’s corporate structure. Lastly, internalizing the Manager has the potential to expand Royalty Pharma’s shareholder base and further enhance the company’s valuation over time.

Meeting Results

At the Meeting held on May 12, 2025, 99.9% of votes cast were in favor of the internalization proposal.

RP Management Internalization Transaction Terms

Royalty Pharma will acquire the Manager for approximately 24.5 million shares of Royalty Pharma equity that will vest over 5 to 9 years, approximately $100 million in cash¹, and the assumption of $380 million of existing Manager debt. The total transaction value of approximately $1.1 billion (based on the closing price of Royalty Pharma’s Class A ordinary shares of $26.20 on January 8, 2025), with the majority paid in long-term deferred equity, is expected to be more than offset by cumulative cash savings of greater than $1.6 billion over the next ten years. The equity component will represent approximately 4% of shares outstanding, assuming all shares vest.

The closing of the internalization transaction will be subject to customary closing conditions, including required regulatory approvals. Royalty Pharma anticipates the transaction will close in May 2025.

Background on the Manager

Since its founding in 1996, Royalty Pharma had operated under an external management model, relying on a separate Manager, owned by Pablo Legorreta and other members of senior management, for all operations and personnel. The company paid quarterly fees to the Manager equal to 6.5% of Portfolio Receipts and 0.25% of the value of security investments. Following the internalization transaction, Royalty Pharma will no longer be externally managed, and all employees of the Manager will become employees of Royalty Pharma. Prior to 2024, Pablo Legorreta was the sole owner of the Manager. In early 2024, equity interests in the Manager were granted to 35 team members to support long-term succession planning and enhance alignment; these shares will vest over 10 years. Management (excluding Pablo Legorreta) will receive approximately 50% of the equity issued in the transaction, which will continue to vest through 2033. Pablo Legorreta agreed to have his equity vest over five years, despite no prior vesting requirement.

About Royalty Pharma

Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Novartis’ Promacta, Pfizer’s Nurtec ODT and Gilead’s Trodelvy, and 15 development-stage product candidates. For more information, visit www.royaltypharma.com.

Forward-Looking Statements

The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this document unless stated otherwise, and neither the delivery of this document at any time, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof. This document contains statements that constitute “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995, including statements that express the company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. Examples include discussion of Royalty Pharma’s strategies, financing plans, growth opportunities, market growth, and plans for capital deployment, plus the benefits of the internalization transaction, including cash savings, enhanced alignment with shareholders, increased investment returns, expectations regarding management continuity, transparency and governance, and the benefits of simplification to its structure. In some cases, you can identify such forward-looking statements by terminology such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “target,” “forecast,” “guidance,” “goal,” “predicts,” “project,” “potential” or “continue,” the negative of these terms or similar expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to the company. However, these forward-looking statements are not a guarantee of Royalty Pharma’s performance, and you should not place undue reliance on such statements, including because the internalization transaction is subject to shareholder approval. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of Royalty Pharma’s control and could cause its actual results to differ materially from those it thought would occur. The forward-looking statements included in this document are made only as of the date hereof. Royalty Pharma does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments, except as required by law. For further information, please reference Royalty Pharma’s reports and documents filed with the U.S. Securities and Exchange Commission (“SEC”) by visiting EDGAR on the SEC’s website at www.sec.gov.

Use of Non-GAAP Measures

Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures that exclude the impact of certain items and therefore have not been calculated in accordance with GAAP.

Management believes that Adjusted EBITDA and Portfolio Cash Flow are important non-GAAP measures used to analyze liquidity because they are key components of certain material covenants contained within Royalty Pharma’s credit agreement. Royalty Pharma cautions readers that amounts presented in accordance with the definitions of Adjusted EBITDA and Portfolio Cash Flow may not be the same as similar measures used by other companies or analysts. These non-GAAP liquidity measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for the analysis of Royalty Pharma’s results as reported under GAAP.

The definitions of Adjusted EBITDA and Portfolio Cash Flow used by Royalty Pharma are the same as the definitions in the credit agreement. Noncompliance with the interest coverage ratio, leverage ratio and Portfolio Cash Flow ratio covenants under the credit agreement could result in lenders requiring the company to immediately repay all amounts borrowed. If Royalty Pharma cannot satisfy these covenants, it would be prohibited under the credit agreement from engaging in certain activities, such as incurring additional indebtedness, paying dividends, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA and Portfolio Cash Flow are critical to the assessment of Royalty Pharma’s liquidity.

Adjusted EBITDA and Portfolio Cash Flow are used by management as key liquidity measures in the evaluation of the company’s ability to generate cash from operations. Management uses Adjusted EBITDA and Portfolio Cash Flow when considering available cash, including for decision-making purposes related to funding of acquisitions, debt repayments, dividends and other discretionary investments. Further, these non-GAAP liquidity measures help management, the audit committee and investors evaluate the company’s ability to generate liquidity from operating activities.

Royalty Pharma Investor Relations and Communications

+1 (212) 883-6637
ir@royaltypharma.com

¹ The cash component of the consideration consists of $200 million in cash less the amount of the management fees paid to the Manager from January 1, 2025 through the closing of the transaction. The transaction is estimated to close during the second quarter of 2025 and the management fee paid through the closing is expected to be approximately $100 million.

The MIL Network –

May 13, 2025

MIL-OSI: Microchip Technology to Present at the J.P. Morgan 53rd Annual Global Technology, Media, and Communications Conference

Source: GlobeNewswire (MIL-OSI)

CHANDLER, Ariz., May 12, 2025 (GLOBE NEWSWIRE) — (NASDAQ:MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today announced that the Company will present at the J.P. Morgan 53rd Annual Global Technology, Media, and Communications Conference on Wednesday, May 14, 2025 at 3:00 p.m. (Eastern Time). Presenting for the Company will be Mr. Eric Bjornholt, Senior Vice President and Chief Financial Officer. A live webcast of the presentation will be made available by J.P. Morgan, and can be accessed on the Microchip website at www.microchip.com.

Any forward looking statements made during the presentation are qualified in their entirety by the discussion of risks set forth in the Company’s Securities and Exchange Commission filings. Copies of SEC filings can be obtained for free at the SEC’s website (www.sec.gov) or from commercial document retrieval services.

Microchip Technology Incorporated is a leading provider of smart, connected and secure embedded control solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs, which reduce risk while lowering total system cost and time to market. The company’s solutions serve approximately 112,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.

Note: The Microchip name and logo are registered trademarks of Microchip Technology Inc. in the USA and other countries.

INVESTOR RELATIONS CONTACT:

Deborah Wussler ……… (480) 792-7373

The MIL Network –

May 13, 2025

MIL-OSI: Main Street Financial Services Corp. Annual Meeting Voting Results

Source: GlobeNewswire (MIL-OSI)

WOOSTER, Ohio, May 12, 2025 (GLOBE NEWSWIRE) — On May 8, 2025, Main Street Financial Services Corp. (OTCQX: MSWV) (the “Company”) held its 2025 Annual Meeting of Stockholders (the “Annual Meeting”). The inspector of elections delivered its final report of voting results for each of the matters submitted to a vote.

Proposal 1: To elect three (3) directors to serve until the 2028 annual meeting of stockholders.

The three nominees who received a majority of “FOR” votes are elected as directors. The final report of the inspector of elections tabulation of voting results is set forth below:

Board of Directors Nominees:

Nominee	For	Withheld	Broker Non-Votes
David L. Lehman	4,202,702	213,723	1,436,249
Debra A. Marthey	4,235,821	180,604	1,436,249
Lance J. Ciroli	4,234,034	182,322	1,436,249

Proposal 2: Vote on the Approval of the 2025 Equity Incentive Plan

According to the final report of the inspector of election tabulation voting results, stockholders approved the proposed 2025 Equity Incentive Plan. The final report of the inspector of elections tabulation of voting results is set forth below:

For	Against	Abstain	Broker Non-Votes
3,927,358	418,074	70,993	1,436,249

Proposal 3: To ratify the appointment of Forvis Mazars, LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2025.

According to the final report of the inspector of election tabulation of voting results, stockholders ratified the appointment of Forvis Mazars, LLP as independent registered public accounting firm for the year ending December 31, 2025, by the votes indicated below:

For	Against	Abstain	Broker Non-Votes
5,657,798	134,842	60,034	–

Executive Chair Mark R. Witmer commented on the results, “We are incredibly grateful for the continued support and confidence of our shareholders. This past year marked a pivotal moment in our company’s history, with the successful completion of our merger and encouraging financial results. The approval of all the proposals at this year’s annual meeting reflects our shared vision for long-term growth and stability. We remain committed to delivering value, driving growth, and strengthening the communities we serve as we move forward together.”

Forward-Looking–Statements
This release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) that reflect management’s current assumptions and estimates of future economic circumstances, industry conditions, Company performance and financial results. Actual results may differ materially from the results discussed in these forward-looking statements, because such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. The forward-looking statements in this letter speak only as to the date of this release. Main Street Financial Services Corp. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to such statements to reflect any change in its expectations upon which such statements are based.

Contact Information:
Matthew Hartzler
SVP, Chief Financial Officer
(330) 264-5767

The MIL Network –

May 13, 2025

MIL-OSI: CPS Announces First Quarter 2025 Earnings

Source: GlobeNewswire (MIL-OSI)

Revenues of $106.9 million compared to $91.7 million in the prior year period
Net income of $4.7 million, or $0.19 per diluted share
Total portfolio balance of $3.615 billion, highest in company history
New contract purchases of $451.2 million

LAS VEGAS, NV, May 12, 2025 (GLOBE NEWSWIRE) — Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of $4.7 million, or $0.19 per diluted share, for its first quarter ended March 31, 2025. This compares to a net income of $4.6 million, or $0.19 per diluted share, in the first quarter of 2024.

Revenues for the first quarter of 2025 were $106.9 million, an increase of $15.2 million, or 16.6%, compared to $91.7 million for the first quarter of 2024. Total operating expenses for the first quarter of 2025 were $100.1 million compared to $85.2 million for the 2024 period. Pretax income for the first quarter of 2025 was $6.8 million compared to pretax income of $6.6 million in the first quarter of 2024.

During the first quarter of 2025, CPS purchased $451.2 million of new contracts compared to $457.8 million during the fourth quarter of 2024, and $346.3 million during the first quarter of 2024. The Company’s receivables totaled $3.615 billion as of March 31, 2025, an increase from $3.491 billion as of December 31, 2024, and an increase from $3.021 billion as of March 31, 2024.

Annualized net charge-offs for the first quarter of 2025 were 7.54% of the average portfolio as compared to 7.84% for the first quarter of 2024. Delinquencies greater than 30 days (including repossession inventory) were 12.35% of the total portfolio as of March 31, 2025, compared to 12.39% as of March 31, 2024.

“We started off the year by posting the highest amount in new loan originations for any first quarter in company history,” said Charles E. Bradley, Chief Executive Officer. “This positions us well for the remainder of the year, as we remain focused on driving the company forward.”

Conference Call

CPS announced that it will hold a conference call on May 13, 2025 at 1:00 p.m. ET to discuss its first quarter 2025 operating results.

Those wishing to participate can pre-register for the conference call at the following link https://register-conf.media-server.com/register/BIa727447d5fdf49d4b7da9c96f3d668b7. Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the schedule start time. A replay will be available beginning two hours after conclusion of the call for 12 months via the Company’s website at https://ir.consumerportfolio.com/investor-relations.

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.

Forward-looking statements in this news release include the Company’s recorded figures representing allowances for remaining expected lifetime credit losses, its estimates of fair value (most significantly for its receivables accounted for at fair value), its provision for credit losses, its entries offsetting the preceding, and figures derived from any of the preceding. In each case, such figures are forward-looking statements because they are dependent on the Company’s estimates of losses to be incurred in the future. The accuracy of such estimates may be adversely affected by various factors, which include the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company’s ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Company’s realization upon repossessed vehicles; and economic conditions in geographic areas in which the Company’s business is concentrated. Any or all of such factors also may affect the Company’s future financial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to losses to be incurred in the future may affect future performance.

Investor Relations Contact

Danny Bharwani, Chief Financial Officer

949-753-6811


Consumer Portfolio Services, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

	Three months ended
	March 31,
		2025			2024
Revenues:
Interest income	$	101,933		$	84,288
Mark to finance receivables measured at fair value		3,500			5,000
Other income		1,441			2,456
		106,874			91,744
Expenses:
Employee costs		25,033			24,416
General and administrative		13,542			13,753
Interest		54,918			41,968
Provision for credit losses		(979	)		(1,635	)
Other expenses		7,558			6,685
		100,072			85,187
Income before income taxes		6,802			6,557
Income tax expense		2,108			1,967
Net income	$	4,694		$	4,590

Earnings per share:
Basic	$	0.22		$	0.22
Diluted	$	0.19		$	0.19


Number of shares used in computing earnings per share:
Basic		21,444			21,143
Diluted		24,325			24,602

Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)


	March 31,			December 31,
		2025			2024
Assets:
Cash and cash equivalents	$	29,841		$	11,713
Restricted cash and equivalents		153,637			125,684
Finance receivables measured at fair value		3,449,106			3,313,767

Finance receivables		3,109			5,420
Allowance for finance credit losses		(249	)		(433	)
Finance receivables, net		2,860			4,987


Deferred tax assets, net		826			1,010
Other assets		37,336			36,707
	$	3,673,606		$	3,493,868

Liabilities and Shareholders’ Equity:
Accounts payable and accrued expenses	$	75,289		$	70,151
Warehouse lines of credit		365,683			410,898
Residual interest financing		163,391			99,176
Securitization trust debt		2,743,269			2,594,384
Subordinated renewable notes		27,547			26,489
		3,375,179			3,201,098

Shareholders’ equity		298,427			292,770
	$	3,673,606		$	3,493,868

Operating and Performance Data ($ in millions)

	At and for the
	Three months ended
	March 31,
		2025			2024

Contracts purchased	$	451.22		$	346.30
Contracts securitized	$	462.54		$	300.61

Total portfolio balance (1)	$	3,614.55		$	3,021.19
Average portfolio balance (1)	$	3,572.64		$	2,993.82


Delinquencies (1)
31+ Days		9.75	%		9.98	%
Repossession Inventory		2.60	%		2.41	%
Total Delinquencies and Repo. Inventory		12.35	%		12.39	%

Annualized Net Charge-offs as % of Average Portfolio (1)		7.54	%		7.84	%

Recovery rates (1), (2)		27.7	%		33.3	%

	For the
	Three months ended
	March 31,
	2025					2024
	$ (3)			% (4)		$ (3)			% (4)
Interest income	$	101.93		11.4	%	$	84.29		11.3	%
Mark to finance receivables measured at fair value		3.50		0.4	%		5.00		0.7	%
Other income		1.44		0.2	%		2.46		0.3	%
Interest expense		(54.92	)	-6.1	%		(41.97	)	-5.6	%
Net interest margin		51.96		5.8	%		49.78		6.7	%
Provision for credit losses		0.98		0.1	%		1.64		0.2	%
Risk adjusted margin		52.94		5.9	%		51.41		6.9	%
Other operating expenses (5)		(46.13	)	-5.2	%		(44.85	)	-6.0	%
Pre-tax income	$	6.80		0.8	%	$	6.56		0.9	%

(1) Excludes third party portfolios. (2) Wholesale auction liquidation amounts (net of expenses) as a percentage of the account balance at the time of sale. (3) Numbers may not add due to rounding. (4) Annualized percentage of the average portfolio balance. Percentages may not add due to rounding. (5) Total pre-tax expenses less provision for credit losses and interest expense.

The MIL Network –

May 13, 2025

MIL-OSI: Resolute Holdings Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, May 12, 2025 (GLOBE NEWSWIRE) — Resolute Holdings Management, Inc. (“Resolute Holdings”) (Nasdaq: RHLD), an operating management company responsible for providing management services to CompoSecure Holdings, L.L.C. (“CompoSecure Holdings”), a wholly owned subsidiary of CompoSecure, Inc. (“CompoSecure”) (Nasdaq: CMPO), today reported financial results for its fiscal first quarter ending March 31, 2025. Resolute Holdings reported first quarter earnings per share attributable to common stockholders of ($0.39) and Non-GAAP Fee-Related Earnings per share of ($0.07).

“The first quarter was foundational for Resolute Holdings, with the spin-off from CompoSecure completed in February. We experienced a higher than normal tax provision and post spin-off professional fees in the quarter but reiterate our expectation for limited profitability for the full year with approximately $3.0mm of quarterly management fee revenue. I am pleased with the team we have assembled and believe our unique combination of permanent capital and differentiated operating capabilities position us well for the future,” said Tom Knott, Resolute Holdings’ Chief Executive Officer.

Dave Cote, Resolute Holdings’ Executive Chairman added “We are encouraged by the ongoing work to improve operations, drive organic growth, and build a high-performance culture at CompoSecure. In the first quarter, we also increased our efforts to evaluate potential acquisitions and anticipate those efforts to remain significant through 2025 and beyond. We are pleased with our start to the year and remain focused on supporting CompoSecure while rigorously evaluating potential acquisitions that meet our core investment criteria.”

As a result of the spin-off from CompoSecure and execution of the Management Agreement with CompoSecure Holdings, Resolute Holdings is required to consolidate the financial results of CompoSecure Holdings in accordance with U.S. GAAP. This presentation of financial results does not represent the underlying economics or the positive attributes of Resolute Holdings’ standalone business model, which consist of recurring, long-duration management fees and a relatively fixed expense base. The results of the Resolute Holdings standalone business and associated Non-GAAP Fee-Related Earnings calculation are included below to provide a clear picture of the economic performance of the business directly attributable to shareholders of RHLD. This release includes such results presented in accordance with U.S. GAAP, as well as certain Non-GAAP measures, including Fee-Related Earnings. See “Use of Non-GAAP Financial Measures” below.

Resolute Holdings Segment Financial Information (GAAP); Fee-Related Earnings and Fee-Related Earnings Per Share (Non-GAAP) ($ in thousands except per share figures)

	Three months
	ended
	March, 31 2025
Management fees	$	1,129
Selling, general and administrative expenses		3,926
Income from operations		(2,797	)
Total other income (expense)		(1	)
Income (loss) before income taxes		(2,798	)
Income tax (expense)		(568	)
Net income (loss)		(3,366	)
Net income (loss) attributable to non-controlling interest		—
Net income (loss) attributable to common stockholders		(3,366	)
Net income (loss) per share attributable to common stockholders – diluted	$	(0.39	)

Adjustments to reconcile Fee-Related Earnings to net income (loss) attributable to common stockholders:
Add: Equity-based compensation at CompoSecure (1)		1,148
Add: Pro forma management fees from Jan 1, 2025 to Feb 27, 2025 (2)		2,046
Add: Spin-Off costs (3)		290
Net tax impact of adjustments (4)		(724	)
Fee-Related Earnings		(606	)
Fee-Related Earnings per share – diluted	$	(0.07	)
(1) Equity-based compensation required to be reported by Resolute Holdings related to awards issued under the CompoSecure Equity Plan. Equity granted under the CompoSecure Equity Plan relates to CompoSecure Class A common stock and has no impact on Resolute Holdings’ common stock outstanding. (2) Incremental management fees as if the CompoSecure Management Agreement was executed on January 1, 2025. (3) One-time costs associated with the Spin-Off from CompoSecure. (4) Tax-effect of adjustments at a 31% effective tax rate. Only applied to those adjustments that would impact Resolute Holdings’ taxes. Equity-based compensation expense under the CompoSecure Equity Plan is expensed for tax purposes at CompoSecure and not Resolute Holdings.

Exhibit – Structural Relationship & Non-GAAP Financial Summary

About Resolute Holdings Management, Inc.

Resolute Holdings (Nasdaq: RHLD) is an alternative asset management platform led by David Cote and Tom Knott that provides operating management services including the oversight of capital allocation strategy, operational practices, and M&A sourcing and execution at CompoSecure Holdings and other managed businesses in the future. Resolute Holdings brings a differentiated approach to long-term value creation through the systematic deployment of the Resolute Operating System, which will create value at both the underlying managed businesses and at Resolute Holdings. For additional information on Resolute Holdings, please refer to Resolute Holdings’ filings with the U.S. Securities and Exchange Commission or please visit www.resoluteholdings.com.

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although Resolute Holdings believes that its plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, Resolute Holdings cannot assure you that it will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning Resolute Holdings’ expectations regarding personnel, future platform acquisitions, limited profitability for the year ending December 31, 2025, revenues from management fees, the deployment of the Resolute Operating System, market opportunities, possible or assumed future actions, business strategies, events, or results of operations, and other matters, are forward-looking statements. In some instances, these statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or the negatives of these terms or variations of them or similar terminology. Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. You should understand that the following important factors, among others, could affect Resolute Holdings’ future results and could cause those results or other outcomes to differ materially from those expressed or implied in Resolute Holdings’ forward-looking statements: the timing and amount of the management fees payable to Resolute Holdings, including unexpected fluctuations therein, unexpected changes in costs, risks associated with the implementation of the Resolute Operating System, unexpected market and macroeconomic developments, demand for Resolute Holdings’ services, the ability of Resolute Holdings to grow and manage growth profitably, compete within its industry and attract and retain its key employees; the possibility that Resolute Holdings may be adversely impacted by other global economic, business, competitive and/or other factors, including but not limited to inflationary pressures, volatile interest rates, variable tariff policies or intensified disruptions in the global financial markets; the outcome of any legal proceedings that may be instituted against Resolute Holdings or others; future exchange and interest rates; and other risks and uncertainties, including those under “Risk Factors” in filings that have been made or will be made with the Securities and Exchange Commission. Resolute Holdings undertakes no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and that may be different from non-GAAP financial measures used by other companies. Resolute Holdings believes Fee-Related Earnings and Fee-Related Earnings per share are useful to investors in evaluating Resolute Holdings’ financial performance. Resolute Holdings believes that these non-GAAP financial measures depict the performance of the business and underlying economics attributable to Resolute Holdings common stockholders. Fee-Related Earnings and Fee-Related Earnings per share should not be considered as measures of financial performance under U.S. GAAP, and the items excluded from Fee-Related Earnings and Fee-Related Earnings per share are significant components in understanding and assessing Resolute Holdings’ financial performance. Accordingly, these key business metrics have limitations as an analytical tool. They should not be considered as an alternative to net income, net income per share, or any other performance measures derived in accordance with U.S. GAAP and may be different from similarly titled non-GAAP measures used by other companies.

For investor inquiries, please contact:

Resolute Holdings
(212) 256-8405
info@resoluteholdings.com


Consolidated Balance Sheets Resolute Holdings Management, Inc. ($ in thousands, except par value and share amounts)

	March 31,			December 31,
	2025			2024
	Unaudited
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	71,017		$	71,589
Accounts receivable		54,188			47,449
Inventories, net		47,501			44,833
Prepaid expenses and other current assets		3,450			2,696
Deferred tax asset		24			24
Total current assets		176,180			166,591

Property and equipment, net		21,917			23,448
Right of use assets, net		10,238			5,404
Derivative asset – interest rate swap		1,996			2,749
Deposits and other assets		3,957			3,600
Total assets	$	214,288		$	201,792

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable	$	11,414		$	5,691
Accrued expenses		16,196			20,062
Bonus payable		4,199			8,466
Commission payable		2,400			2,563
Current portion of long-term debt		12,500			11,250
Current portion of lease liabilities – operating leases		2,110			2,113
Total current liabilities		48,819			50,145

Long-term debt, net of deferred financing costs		180,713			184,389
Lease liabilities, operating leases		8,762			3,888
Total liabilities		238,294			238,422

Commitments and contingencies (Note 16)		—			—

Preferred stock, $0.0001 par value; 100,000,000 shares authorized, 0 shares issued and outstanding		—			—
Common stock, $0.0001 par value; 1,000,000,000 shares authorized, 8,525,998 and 0 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.		—			—
Additional paid-in capital		14,569			1,544
Accumulated deficit		(5,700	)		(2,334	)
Total stockholders’ equity (deficit)		8,869			(790	)
Non-controlling interest		(32,875	)		(35,840	)
Total equity (deficit)		(24,006	)		(36,630	)
Total liabilities and stockholders’ equity (deficit)	$	214,288		$	201,792

Consolidated Statements of Operations Resolute Holdings Management, Inc. ($ in thousands, except per share amounts)

	Three months ended
	March 31,
	2025			2024
Net sales	$	103,889		$	104,010
Cost of sales		49,342			48,797
Gross profit		54,547			55,213
Operating expenses:
Selling, general and administrative expenses		28,926			22,770
Income from operations		25,621			32,443

Other income (expense):
Change in fair value of derivative liability – convertible notes redemption make-whole provision		—			(297	)
Interest income		1,077			1,104
Interest expense		(3,384	)		(6,537	)
Amortization of deferred financing costs		(131	)		(327	)
Total other expense, net		(2,438	)		(6,057	)
Income (loss) before income taxes		23,183			26,386
Income tax (expense)		(568	)		—
Net income (loss)	$	22,615		$	26,386

Net income (loss) attributable to non-controlling interest		25,981			26,386

Net income (loss) attributable to common stockholders	$	(3,366	)	$	—

Net income (loss) per share attributable to common stockholders – basic & diluted	$	(0.39	)	$	—

Weighted average shares used to compute net income (loss) per share attributable to common stockholders – basic & diluted (in thousands)		8,526			8,526

Consolidated Statements of Cash Flows Resolute Holdings Management, Inc. ($ in thousands)

	Three months ended March 31,
	2025			2024

Cash flows from operating activities:
Net income (loss)	$	22,615		$	26,386
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization		2,273			2,221
Equity-based compensation expense		6,046			4,167
Amortization of deferred financing costs		131			345
Non-cash operating lease expense		615			587
Change in fair value of derivative liability – convertible notes redemption make-whole provisions		—			297
Changes in assets and liabilities
Accounts receivable		(6,739	)		5,378
Inventories		(2,668	)		(2,657	)
Prepaid expenses and other assets		(754	)		654
Accounts payable		5,723			(369	)
Accrued expenses		(3,866	)		460
Lease liabilities		(578	)		(603	)
Other liabilities		(4,430	)		(1,198	)
Net cash provided by operating activities		18,368			35,668

Cash flows from investing activities:
Purchase of property and equipment		(576	)		(1,613	)
Capitalized software costs		(580	)		—
Net cash used in investing activities		(1,156	)		(1,613	)

Cash flows from financing activities:
Payment of term loan		(2,500	)		(4,688	)
Distributions to CompoSecure Holdings members		—			(13,422	)
Contribution by CompoSecure Holdings		11,869			—
Contribution to Resolute Holdings		(11,869	)		—
Payments for taxes related to net share settlement of CompoSecure equity awards		(15,284	)		(3,426	)
Transfer to CompoSecure		—			(442	)
Net cash used in financing activities		(17,784	)		(21,978	)

Net increase (decrease) in cash and cash equivalents		(572	)		12,077

Cash and cash equivalents, beginning of period		71,589			38,191

Cash and cash equivalents, end of period	$	71,017		$	50,268

Supplementary disclosure of cash flow information:
Cash paid for interest expense	$	3,299		$	4,175
Supplemental disclosure of non-cash financing activities:
Consolidation of CompoSecure Holdings net assets (liabilities), excluding cash, from execution of CompoSecure Management Agreement	$	(98,508	)	$	—
Derivative asset – interest rate swap	$	(753	)	$	487

Segment Statements of Operations and Non-GAAP Reconciliations Resolute Holdings Management, Inc. ($ in thousands, except per share amounts)

		Three months ended
		March 31, 2025
		($ in thousands except per share figures)
	Resolute			CompoSecure			Intercompany/
	Holdings			Holdings			Eliminations			Consolidated
Management fees	$	1,129		$	—		$	(1,129	)	$	—
Product sales		—			103,889			—			103,889
Net sales		1,129			103,889			(1,129	)		103,889
Cost of sales		—			49,342			—			49,342
Gross profit		1,129			54,547			(1,129	)		54,547
Total selling, general and administrative expenses		3,926			27,939			(2,939	)		28,926
Income from operations		(2,797	)		26,608			1,810			25,621
Total other income (expense)		(1	)		(2,437	)		—			(2,438	)
Income (loss) before income taxes		(2,798	)		24,171			1,810			23,183
Income tax (expense)		(568	)		—			—			(568	)
Net income (loss)		(3,366	)		24,171			1,810			22,615
Net income (loss) attributable to non-controlling interest		—			24,171			1,810			25,981
Net income (loss) attributable to common stockholders		(3,366	)		—			—			(3,366	)
Net income (loss) per share attributable to common stockholders – diluted	$	(0.39	)							$	(0.39	)

Adjustments to reconcile fee-related earnings to net income (loss) attributable to common stockholders:
Add: Equity-based compensation at CompoSecure (1)		1,148									1,148
Add: Pro forma management fees from Jan 1, 2025 to Feb 27, 2025 (2)		2,046									2,046
Add: Spin-Off costs (3)		290									290
Net tax impact of adjustments (4)		(724	)								(724	)
Fee-Related Earnings		(606	)								(606	)
Fee-Related Earnings per share – diluted	$	(0.07	)							$	(0.07	)

Weighted average shares used to compute net income (loss) per share attributable to common stockholders and Fee-Related Earnings per share – diluted (in thousands)		8,526									8,526

(1) Equity-based compensation required to be reported by Resolute Holdings related to awards issued under the CompoSecure Equity Plan. Equity granted under the CompoSecure Equity Plan relates to CompoSecure Class A common stock and has no impact on Resolute Holdings’ common stock outstanding. (2) Incremental management fees as if the CompoSecure Management Agreement was executed on January 1, 2025. (3) One-time costs associated with the Spin-Off from CompoSecure. (4) Tax-effect of adjustments at a 31% effective tax rate. Only applied to those adjustments that would impact Resolute Holdings’ taxes. Equity-based compensation expense under the CompoSecure Equity Plan is expensed for tax purposes at CompoSecure and not Resolute Holdings.

Additional Information Segment Balance Sheets Resolute Holdings Management, Inc. ($ in thousands, except per share amounts)

	March 31, 2025
	($ in thousands)
	Resolute			CompoSecure			Intercompany/
	Holdings			Holdings			Eliminations			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	8,847		$	62,170		$	—		$	71,017
Accounts receivable		1,129			54,188			(1,129	)		54,188
Inventories, net		—			47,501			—			47,501
Prepaid expenses and other current assets		632			2,818			—			3,450
Deferred tax asset		24			—			—			24
Total current assets		10,632			166,677			(1,129	)		176,180

Property and equipment, net		—			21,917			—			21,917
Right of use assets, net		1,110			9,128			—			10,238
Derivative asset – interest rate swap		—			1,996			—			1,996
Deposits and other assets		—			3,957			—			3,957
Total assets		11,742			203,675			(1,129	)		214,288

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable		112			11,236			66			11,414
Accrued expenses		1,651			15,674			(1,129	)		16,196
Bonus payable		—			4,199			—			4,199
Commission payable		—			2,400			—			2,400
Current portion of long-term debt		—			12,500			—			12,500
Current portion of lease liabilities – operating leases		71			2,039			—			2,110
Total current liabilities		1,834			48,048			(1,063	)		48,819

Long-term debt, net of deferred financing costs		—			180,713			—			180,713
Lease liabilities, operating leases		1,039			7,723			—			8,762
Total liabilities		2,873			236,484			(1,063	)		238,294

Additional paid-in capital		14,569			—			—			14,569
Accumulated deficit		(5,700	)		—			—			(5,700	)
Total stockholders’ equity (deficit)		8,869			—			—			8,869
Non-controlling interest		—			(32,809	)		(66	)		(32,875	)
Total equity (deficit)		8,869			(32,809	)		(66	)		(24,006	)
Total liabilities and stockholders’ equity (deficit)	$	11,742		$	203,675		$	(1,129	)	$	214,288

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/da9510b4-d572-4307-90a4-25015169fd4d

The MIL Network –

May 13, 2025

MIL-OSI: HighPeak Energy, Inc. Announces First Quarter 2025 Financial and Operating Results

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, May 12, 2025 (GLOBE NEWSWIRE) — HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter ended March 31, 2025, provided an updated 2025 development outlook and increased production guidance.

First Quarter 2025 Highlights

Sales volumes averaged approximately 53.1 thousand barrels of crude oil equivalent per day (“MBoe/d”), representing a 6% increase from the fourth quarter 2024.
Net income was $36.3 million, or $0.26 per diluted share and EBITDAX (a non-GAAP financial measure defined and reconciled below) was $197.3 million, or $1.40 per diluted share. First quarter 2025 adjusted net income (a non-GAAP financial measure defined and reconciled below) was $42.7 million, or $0.31 per diluted share.
Lease operating expenses averaged $6.61 per Boe, excluding workover expenses, representing a 3% decrease compared to the fourth quarter 2024.
Generated free cash flow (a non-GAAP financial measure defined and reconciled below) of $10.7 million, reduced long-term debt by $30 million and paid $0.04 per share in dividends.
Realized increased drilling and completion efficiency gains, which translated to drilling and completing four additional wells during the first quarter.

Recent Events

Narrowed 2025 production guidance range and increased the midpoint.
On May 12, 2025, the Company’s Board of Directors declared a quarterly dividend of $0.04 per common share outstanding payable in June 2025.

Statement from Jack Hightower, Chairman and CEO:

In March, we discussed our four pillars of success for 2025 which include: 1) improving corporate efficiency, 2) maintaining capital discipline, 3) optimizing our capital structure, and 4) delivering shareholder value. I would like to take this opportunity to update our shareholders on where we stand and the progress we have made to date.

Improving Corporate Efficiency
HighPeak delivered another strong quarter of results, beating production guidance and consensus estimates, while also realizing higher levels of operating efficiencies in our development program. We drilled over 25% faster than our previous expectations, which translated to drilling and completing four additional wells during the first quarter. We are running smoother and more efficiently than ever before, while continuing to keep development costs in line with internal expectations.

Maintaining Capital Discipline
Due to the global economic uncertainty and its impact on oil prices, we have moderated our development program by laying down one rig for four months, May through August. Despite the pause, we remain on track to drill and complete the same number of wells in our 2025 guidance because of the gains made through operational efficiencies.

As detailed on our March conference call, the majority of our 2025 infrastructure capex was first-quarter weighted. Factoring in drilling and completing four additional wells, we accomplished an outsized portion of our planned annual development activity during the first quarter. Going forward, we expect our quarterly capital expenditures to be materially lower and the total for the year to fall within our 2025 guided capex range. Although our operations are running much more efficiently, this is not the proper time to accelerate development activity from our original plan. Additionally, we have complete flexibility from a land and operations perspective to reduce the budget and leave a rig down for longer than the current plan if conditions warrant.

Optimizing our Capital Structure
We remain committed to optimizing our capital structure and remain poised to execute our plan once the market has stabilized. We are in a healthy financial position with no near-term debt maturities and are taking proactive steps to keep our balance sheet strong as we navigate this turbulent market.

Shareholder Value
Given the current global macro-economic backdrop, this is a time to remain nimble and prudent, which our high-quality asset base allows. As large owners of the Company, management is fully aligned with shareholders and has a long-term outlook on value creation. While markets may be volatile, it is important to remember the fundamental value of our asset base is still strong.

First Quarter 2025 Operational Update

HighPeak’s sales volumes during the first quarter of 2025 averaged 53.1 MBoe/d, a six percent increase over the fourth quarter 2024. First quarter sales volumes consisted of approximately 72% crude oil and 86% liquids.

The Company averaged two drilling rigs and one frac crew during the first quarter, drilled 16 gross (16.0 net) horizontal wells and turned-in-line 13 gross (12.9 net) producing wells. On March 31, 2025, the Company had 28 gross (28.0 net) horizontal wells in various stages of drilling and completion.

The Company updated its 2025 production guidance range to 48,000 – 50,500 Boe/d.

HighPeak President, Michael Hollis, commented, “Our strong first quarter production is allowing us to narrow our guided range and increase the midpoint. This speaks to our strong well performance and the high quality of our long lived oily inventory. As seen in the last few commodity price cycles, HighPeak is realizing deflationary cost pressures on both the capex and opex fronts. With our increased operational efficiency, we are doing more with less and at a lower overall cost.”

First Quarter 2025 Financial Results

HighPeak reported net income of $36.3 million for the first quarter of 2025, or $0.26 per diluted share, and EBITDAX of $197.3 million, or $1.40 per diluted share. HighPeak reported adjusted net income of $42.7 million for the first quarter of 2025, or $0.31 per diluted share.

First quarter average realized prices were $71.64 per Bbl of crude oil, $24.21 per Bbl of NGL and $2.34 per Mcf of natural gas, resulting in an overall realized price of $53.84 per Boe, or 75% of the weighted average of NYMEX crude oil prices, excluding the effects of derivatives. HighPeak’s cash costs for the first quarter were $11.94 per Boe, including lease operating expenses of $6.61 per Boe, workover expenses of $0.83 per Boe, production and ad valorem taxes of $3.17 per Boe and G&A expenses of $1.33 per Boe. As a result, the Company’s unhedged EBITDAX per Boe was $41.90 per Boe, or 78% of the overall realized price per Boe for the quarter, excluding the effects of derivatives.

HighPeak’s first quarter 2025 capital expenditures to drill, complete, equip, provide facilities and for infrastructure were $179.8 million.

Hedging

Crude oil. As of March 31, 2025, HighPeak had the following outstanding crude oil derivative instruments and the weighted average crude oil prices and premiums payable per Bbl:

						Swaps		Collars, Enhanced Collars & Deferred Premium Puts
Settlement Month	Settlement Year	Type of Contract	Bbls Per Day		Index	Price per Bbl		Floor or Strike Price per Bbl		Ceiling Price per Bbl		Deferred Premium Payable per Bbl
Crude Oil:
Apr – Jun	2025	Swap		5,500	WTI Cushing	$	76.37	$	—	$	—	$	—
Apr – Jun	2025	Collar		7,989	WTI Cushing	$	—	$	64.38	$	88.55	$	2.00
Apr – Jun	2025	Put		9,000	WTI Cushing	$	—	$	65.78	$	—	$	5.00
Jul – Sep	2025	Swap		3,000	WTI Cushing	$	75.85	$	—	$	—	$	—
Jul – Sep	2025	Collar		7,000	WTI Cushing	$	—	$	65.00	$	90.08	$	2.28
Jul – Sep	2025	Put		9,000	WTI Cushing	$	—	$	65.78	$	—	$	5.00
Oct – Dec	2025	Collar		5,000	WTI Cushing	$	—	$	60.00	$	72.80	$	—
Jan – Mar	2026	Collar		5,000	WTI Cushing	$	—	$	60.00	$	72.80	$	—

The Company’s crude oil derivative contracts detailed above are based on reported settlement prices on the New York Mercantile Exchange for West Texas Intermediate pricing.

Natural gas. As of March 31, 2025, the Company had the following outstanding natural gas derivative instruments and the weighted average natural gas prices payable per MMBtu.

Settlement Month	Settlement Year	Type of Contract	MMBtu Per Day		Index	Price per MMBtu
Natural Gas:
Apr – Jun	2025	Swap		30,000	HH	$	4.43
Jul – Sep	2025	Swap		30,000	HH	$	4.43
Oct – Dec	2025	Swap		30,000	HH	$	4.43
Jan – Mar	2026	Swap		19,667	HH	$	4.43

HighPeak added the following natural gas swaps in April 2025.

Settlement Month	Settlement Year	Type of Contract	MMBtu Per Day		Index	Price per MMBtu
Natural Gas:
Jan – Mar	2026	Swap		10,333	HH	$	4.30
Apr – Jun	2026	Swap		30,000	HH	$	4.30
Jul – Sep	2026	Swap		30,000	HH	$	4.30
Oct – Dec	2026	Swap		30,000	HH	$	4.30
Jan – Mar	2027	Swap		19,667	HH	$	4.30

Dividends

During the first quarter of 2025, HighPeak’s Board of Directors approved a quarterly dividend of $0.04 per share, or $5.0 million in dividends paid to stockholders during the quarter. In addition, in May 2025, the Company’s Board of Directors declared a quarterly dividend of $0.04 per share, or approximately $5.0 million in dividends, to be paid on June 25, 2025, to stockholders of record on June 2, 2025.

Conference Call

HighPeak will host a conference call and webcast on Tuesday, May 13, 2025, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the first quarter of 2025. Conference call participants may register for the call here. Access to the live audio-only webcast and replay of the earnings release conference call may be found here. A live broadcast of the earnings conference call will also be available on the HighPeak Energy website at www.highpeakenergy.com under the “Investors” section of the website. A replay will also be available on the website following the call.

When available, a copy of the Company’s earnings release, investor presentation and Quarterly Report on Form 10-Q may be found on its website at www.highpeakenergy.com.

About HighPeak Energy, Inc.

HighPeak Energy, Inc. is a publicly traded independent crude oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release contains forward-looking statements that involve risks and uncertainties. When used in this document, the words “believes,” “plans,” “expects,” “anticipates,” “forecasts,” “intends,” “continue,” “may,” “will,” “could,” “should,” “future,” “potential,” “estimate” or the negative of such terms and similar expressions as they relate to HighPeak Energy, Inc. (“HighPeak Energy” or the “Company”) are intended to identify forward-looking statements, which are generally not historical in nature. The forward-looking statements are based on the Company’s current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond the Company’s control. For example, the Company’s review of strategic alternatives may not result in a sale of the Company, a recommendation that a transaction occur or result in a completed transaction, and any transaction that occurs may not increase shareholder value, in each case as a result of such risks and uncertainties.

These risks and uncertainties include, among other things, the results of the strategic review being undertaken by the Company’s Board and the interest of prospective counterparties, the Company’s ability to realize the results contemplated by its 2025 guidance, volatility of commodity prices, political instability or armed conflicts in crude or natural gas producing regions such as the ongoing war between Russia and Ukraine or Israel and Hamas, product supply and demand, the impact of a widespread outbreak of an illness, such as the coronavirus disease pandemic, on global and U.S. economic activity, competition, OPEC+ policy decisions, potential new trade policies, such as tariffs, could adversely affect the Company’s operations, business and profitability, inflationary pressures on costs of oilfield goods, services and personnel, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company’s drilling and operating activities, access to and availability of transportation, processing, fractionation, refining and storage facilities, HighPeak Energy’s ability to replace reserves, implement its business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to any credit facility and derivative contracts entered into by HighPeak Energy, if any, and purchasers of HighPeak Energy’s oil, natural gas liquids and natural gas production, uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future, the assumptions underlying forecasts, including forecasts of production, expenses, cash flow from sales of oil and gas and tax rates, quality of technical data, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks and acts of war or terrorism. These and other risks are described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and other filings with the SEC. The Company undertakes no duty to publicly update these statements except as required by law.

Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. Reserves estimates included herein may not be indicative of the level of reserves or PV-10 value of oil and natural gas production in the future. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions could impact HighPeak’s strategy and change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

Use of Projections

The financial, operational, industry and market projections, estimates and targets in this press release and in the Company’s guidance (including production, operating expenses and capital expenditures in future periods) are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company’s control. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial, operational, industry and market projections, estimates and targets, including assumptions, risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” above. These projections are speculative by their nature and, accordingly, are subject to significant risk of not being actually realized by the Company. Projected results of the Company for 2025 are particularly speculative and subject to change. Actual results may vary materially from the current projections, including for reasons beyond the Company’s control. The projections are based on current expectations and available information as of the date of this release. The Company undertakes no duty to publicly update these projections except as required by law.

Drilling Locations

The Company has estimated its drilling locations based on well spacing assumptions and upon the evaluation of its drilling results and those of other operators in its area, combined with its interpretation of available geologic and engineering data. The drilling locations actually drilled on the Company’s properties will depend on the availability of capital, regulatory approvals, commodity prices, costs, actual drilling results and other factors. Any drilling activities conducted on these identified locations may not be successful and may not result in additional proved reserves. Further, to the extent the drilling locations are associated with acreage that expires, the Company would lose its right to develop the related locations.

HighPeak Energy, Inc. Unaudited Condensed Consolidated Balance Sheet Data (In thousands)
	March 31, 2025			December 31, 2024
Current assets:
Cash and cash equivalents	$	51,619		$	86,649
Accounts receivable		78,356			85,242
Inventory		8,706			10,952
Prepaid expenses		8,301			4,587
Derivative instruments		5,620			7,582
Total current assets		152,602			195,012
Crude oil and natural gas properties, using the successful efforts method of accounting:
Proved properties		4,140,881			3,959,545
Unproved properties		71,359			70,868
Accumulated depletion, depreciation and amortization		(1,293,949	)		(1,184,684	)
Total crude oil and natural gas properties, net		2,918,291			2,845,729
Other property and equipment, net		3,141			3,201
Other noncurrent assets		19,047			19,346
Total assets	$	3,093,081		$	3,063,288

Current liabilities:
Current portion of long-term debt, net	$	120,000		$	120,000
Accounts payable – trade		66,473			74,011
Accrued capital expenditures		53,240			35,170
Revenues and royalties payable		27,993			26,838
Other accrued liabilities		22,065			22,196
Derivative instruments		8,275			5,380
Operating leases		821			719
Advances from joint interest owners		—			316
Total current liabilities		298,867			284,630
Noncurrent liabilities:
Long-term debt, net		902,844			928,384
Deferred income taxes		242,337			232,398
Asset retirement obligations		15,058			14,750
Operating leases		581			670
Commitments and contingencies

Stockholders’ equity
Common stock		13			13
Additional paid-in capital		1,166,786			1,166,609
Retained earnings		466,595			435,834
Total stockholders’ equity		1,633,394			1,602,456
Total liabilities and stockholders’ equity	$	3,093,081		$	3,063,288

HighPeak Energy, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands)
	Quarter Ended March 31,
	2025			2024
Operating revenues:
Crude oil sales	$	246,424			$	282,369
NGL and natural gas sales		11,024				5,395
Total operating revenues		257,448				287,764
Operating costs and expenses:
Crude oil and natural gas production		35,562				30,271
Production and ad valorem taxes		15,152				14,402
Exploration and abandonments		264				498
Depletion, depreciation and amortization		109,325				130,850
Accretion of discount		244				239
General and administrative		6,345				4,685
Stock-based compensation		177				3,798
Total operating costs and expenses		167,069				184,743
Other expense		—				1
Income from operations		90,379				103,020
Interest income		810				2,392
Interest expense		(36,988	)			(43,634	)
Loss on derivative instruments, net		(7,927	)			(53,043	)
Income before income taxes		46,274				8,735
Provision for income taxes		9,939				2,297
Net income	$	36,335			$	6,438

Earnings per share:
Basic net income	$	0.26			$	0.05
Diluted net income	$	0.26			$	0.05

Weighted average shares outstanding:
Basic		123,913				125,696
Diluted		127,213				129,641

Dividends declared per share	$	0.04			$	0.04

HighPeak Energy, Inc. Unaudited Condensed Consolidated Statements of Cash Flows (in thousands)
	Quarter Ended March 31,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	36,335		$	6,438
Adjustments to reconcile net income to net cash provided by operations:
Provision for deferred income taxes		9,939			1,688
Loss on derivative instruments		7,927			53,043
Cash paid on settlement of derivative instruments		(3,071	)		(5,148	)
Amortization of debt issuance costs		2,034			2,053
Amortization of discounts on long-term debt		2,426			2,453
Stock-based compensation expense		177			3,798
Accretion expense		244			239
Depletion, depreciation and amortization		109,325			130,850
Exploration and abandonment expense		4			274
Changes in operating assets and liabilities:
Accounts receivable		6,886			(14,414	)
Prepaid expenses, inventory and other assets		(1,314	)		(4,722	)
Accounts payable, accrued liabilities and other current liabilities		(13,860	)		(5,113	)
Net cash provided by operating activities		157,052			171,439
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to crude oil and natural gas properties		(179,819	)		(147,698	)
Changes in working capital associated with crude oil and natural gas property additions		25,172			1,705
Acquisitions of crude oil and natural gas properties		(2,517	)		(2,171	)
Proceeds from sales of properties		570			—
Other property additions		—			(59	)
Net cash used in investing activities		(156,594	)		(148,223	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments under Term Loan Credit Agreement		(120,000	)		(30,000	)
Dividends paid		(4,957	)		(5,050	)
Dividend equivalents paid		(531	)		(530	)
Repurchased shares under buyback program		—			(8,764	)
Debt issuance costs		—			(7	)
Net cash used in financing activities		(35,488	)		(44,351	)
Net decrease in cash and cash equivalents		(35,030	)		(21,135	)
Cash and cash equivalents, beginning of period		86,649			194,515
Cash and cash equivalents, end of period	$	51,619		$	173,380

HighPeak Energy, Inc. Unaudited Summary Operating Highlights
	Quarter Ended March 31,
	2025			2024
Average Daily Sales Volumes:
Crude oil (Bbls)		38,222			39,959
NGLs (Bbls)		7,724			5,147
Natural gas (Mcf)		43,096			27,733
Total (Boe)		53,128			49,729

Average Realized Prices (excluding effects of derivatives):
Crude oil per Bbl	$	71.64		$	77.65
NGL per Bbl	$	24.21		$	24.94
Natural gas per Mcf	$	2.34		$	1.33
Total per Boe	$	53.84		$	63.59

Margin Data ($ per Boe):
Average price, excluding effects of derivatives	$	53.84		$	63.59
Lease operating expenses		(6.61	)		(6.30	)
Expense workovers		(0.83	)		(0.39	)
Production and ad valorem taxes		(3.17	)		(3.18	)
General and administrative expenses		(1.33	)		(1.04	)
	$	41.90		$	52.68

HighPeak Energy, Inc. Unaudited Earnings Per Share Details
	Quarter Ended March 31,
	2025			2024
Net income as reported	$	36,335		$	6,438
Participating basic earnings		(3,542	)		(605	)
Basic earnings attributable to common shareholders		32,793			5,833
Reallocation of participating earnings		47			1
Diluted net income attributable to common shareholders	$	32,840		$	5,834

Basic weighted average shares outstanding		123,913			125,696
Dilutive warrants and unvested stock options		1,146			1,786
Dilutive unvested restricted stock		2,154			2,159
Diluted weighted average shares outstanding		127,213			129,641

Net income per share attributable to common shareholders:
Basic	$	0.26		$	0.05
Diluted	$	0.26		$	0.05

HighPeak Energy, Inc. Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations (in thousands)
	Quarter Ended March 31,
	2025			2024
Net income	$	36,335		$	6,438
Interest expense		36,988			43,634
Interest income		(810	)		(2,392	)
Income tax expense		9,939			2,297
Depletion, depreciation and amortization		109,325			130,850
Accretion of discount		244			239
Exploration and abandonment expense		264			498
Stock based compensation		177			3,798
Derivative related noncash activity		4,856			47,895
Other expense		—			1
EBITDAX		197,318			233,258
Cash interest expense		(32,528	)		(39,128	)
Other (a)		550			1,558
Discretionary cash flow		165,340			195,688
Changes in operating assets and liabilities		(8,288	)		(24,249	)
Net cash provided by operating activities	$	157,052		$	171,439
(a) Includes interest income net of current tax expense, other expense and operating portion of exploration and abandonment expenses.

HighPeak Energy, Inc. Unaudited Reconciliation of Net Cash Provided by Operations and Free Cash Flow (in thousands)
	Quarter Ended March 31,
	2025			2024
Net cash provided by operating activities	$	157,052		$	171,439
Add back: net change in operating assets and liabilities		8,288			24,249
Operating cash flow before working capital changes		165,340			195,688
Additions to crude oil and natural gas properties		(179,819	)		(147,698	)
Changes in working capital associated with crude oil and natural gas property additions		25,172			1,705
Free cash flow	$	10,693		$	49,695

HighPeak Energy, Inc. Unaudited Reconciliation of Net Income to Adjusted Net Income (in thousands, except per share data)
	Quarter Ended March 31, 2025
	Amounts			Amounts per Diluted Share
Net income	$	36,335		$	0.26
Derivative loss, net		7,927			0.06
Stock-based compensation		177			0.00
Income tax adjustment for above items *		(1,741	)		(0.01	)

Adjusted net income	$	42,698		$	0.31

* Assuming 21% statutory tax rate

Investor Contact:

Ryan Hightower
Vice President, Business Development
817.850.9204
rhightower@highpeakenergy.com

Source: HighPeak Energy, Inc.

The MIL Network –

May 13, 2025

MIL-OSI: MidCap Financial Investment Corporation Reports Financial Results for the Quarter Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

Results for the Quarter Ended March 31, 2025 and Other Recent Highlights:

Net investment income per share for the quarter was $0.37
Net asset value per share as of the end of the quarter was $14.93, compared to $14.98 as of December 31, 2024, a decrease of 0.3%
New investment commitments made during the quarter totaled $376 million⁽¹⁾
Gross fundings, excluding revolver fundings⁽²⁾, totaled $357 million for the quarter
Net fundings, including revolvers⁽²⁾, totaled $170 million for the quarter
Net leverage⁽³⁾was 1.31x as of March 31, 2025
Repurchased 476,656 shares of common stock at a weighted average price per share of $12.75, inclusive of commissions, for an aggregate cost of $6.1 million during the quarter
Completed Collateralized Loan Obligation (“CLO”) transaction, MFIC Bethesda CLO 2 LLC, a $529.6 million CLO secured by middle market loans in February 2025
On May 7, 2025, the Board of Directors (the “Board”) declared a dividend of $0.38 per share payable on June 26, 2025 to stockholders of record as of June 10, 2025⁽⁴⁾

NEW YORK, May 12, 2025 (GLOBE NEWSWIRE) — MidCap Financial Investment Corporation (NASDAQ: MFIC) or the “Company,” today announced financial results for the quarter ended March 31, 2025. The Company’s net investment income was $0.37 per share for the quarter ended March 31, 2025, compared to $0.40 per share for the quarter ended December 31, 2024. The Company’s net asset value (“NAV”) was $14.93 per share as of March 31, 2025, compared to $14.98 as of December 31, 2024.

On May 7, 2025, the Board declared a dividend of $0.38 per share payable on June 26, 2025 to stockholders of record as of June 10, 2025.

Mr. Tanner Powell, the Company’s Chief Executive Officer, stated, “We reported solid first quarter results including a healthy level of earnings, a reduction in non-accruals, and strong portfolio growth. We continued to deploy the investment capacity generated from our recent mergers into assets originated by MidCap Financial, although this was partially offset by ongoing sales and repayments of non-directly originated assets acquired through the mergers. Additionally, we repurchased some stock below NAV during the quarter.” Mr. Powell continued, “Looking ahead, despite the uncertainty surrounding the duration and trajectory of current market volatility, we believe the current environment may present opportunities that MidCap Financial and MFIC are well-equipped to capitalize on.”

___________________
(1) Commitments made for the direct origination portfolio.
(2) During the quarter ended March 31, 2025, direct origination revolver fundings totaled $33 million, direct origination revolver repayments totaled $30 million.
(3) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
(4) There can be no assurances that the Board will continue to declare a base dividend of $0.38 per share.

FINANCIAL HIGHLIGHTS

($ in billions, except per share data)	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Total assets	$	3.36	$	3.19	$	3.22	$	2.55	$	2.45
Investment portfolio (fair value)	$	3.19	$	3.01	$	3.03	$	2.44	$	2.35
Debt outstanding	$	1.94	$	1.75	$	1.77	$	1.51	$	1.41
Net assets	$	1.39	$	1.40	$	1.42	$	1.00	$	1.01
Net asset value per share	$	14.93	$	14.98	$	15.10	$	15.38	$	15.42

Debt-to-equity ratio		1.39 x		1.25 x		1.25 x		1.51 x		1.40 x
Net leverage ratio (1)		1.31 x		1.16 x		1.16 x		1.45 x		1.35 x

___________________
(1) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.

PORTFOLIO AND INVESTMENT ACTIVITY

	Three Months Ended March 31,
(in millions)*	2025			2024
Investments made in portfolio companies	$	391.9		$	152.8
Investments sold		(43.9	)		—
Net activity before repaid investments		348.0			152.8
Investments repaid		177.6			(136.9	)
Net investment activity	$	170.4		$	15.9

Portfolio companies, at beginning of period		233			152
Number of investments in new portfolio companies		20			7
Number of exited companies		(13	)		(5	)
Portfolio companies at end of period		240			154

Number of investments in existing portfolio companies		78			49

___________________
^* Totals may not foot due to rounding.

OPERATING RESULTS

	Three Months Ended March 31,
(in millions)*	2025			2024
Net investment income	$	34.3		$	28.5
Net realized and change in unrealized gains (losses)		(4.0	)		(3.1	)
Net increase in net assets resulting from operations	$	30.3		$	25.5

*(per share) (1)**
Net investment income on per average share basis	$	0.37		$	0.44
Net realized and change in unrealized gain (loss) per share		(0.05	)		(0.05	)
Earnings per share — basic	$	0.32		$	0.39

___________________
* Totals may not foot due to rounding.

(1) Based on the weighted average number of shares outstanding for the period presented.

SHARE REPURCHASE PROGRAM *

During the three months ended March 31, 2025, the Company repurchased 476,656 shares at a weighted average price per share of $12.75, inclusive of commissions, for a total cost of $6.1 million. This represents a discount of approximately 14.72% of the average net asset value per share for the three months ended March 31, 2025.

Since the inception of the share repurchase program and through May 12, 2025, the Company repurchased 16,069,776 shares at a weighted average price per share of $15.82, inclusive of commissions, for a total cost of $254.2 million, leaving a maximum of $20.8 million available for future purchases under the current Board authorization of $275 million.

* Share figures have been adjusted for the 1-for-3 reverse stock split which was completed after market close on November 30, 2018.

LIQUIDITY

As of March 31, 2025, the Company’s outstanding debt obligations, excluding deferred financing cost and debt discount of $6.7 million, totaled $1.942 billion which was comprised of $125 million of Senior Unsecured Notes (the “2026 Notes”) which will mature on July 16, 2026, $80 million of Senior Unsecured Notes (the “2028 Notes”) which will mature on December 15, 2028, $232 million outstanding Class A-1 Notes in MFIC Bethesda CLO 1 LLC, $399 million outstanding secured debt in MFIC Bethesda CLO 2 LLC, and $1,106 million outstanding under the Company’s multi-currency revolving credit facility (the “Facility”). As of March 31, 2025, $6 million in standby letters of credit were issued through the Facility. The available remaining capacity under the Facility was $548 million as of March 31, 2025, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio.

CONFERENCE CALL / WEBCAST AT 8:30 AM EDT ON MAY 13, 2025

The Company will host a conference call on Tuesday, May 13, 2025, at 8:30 a.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (800) 225-9448 approximately 5-10 minutes prior to the call; international callers should dial (203) 518-9708. Participants should reference either MidCap Financial Investment Corporation Earnings or Conference ID: MFIC0513 when prompted. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be accessed through the Shareholders section of the Company’s website under Events at www.midcapfinancialic.com. Following the call, you may access a replay of the event either telephonically or via audio webcast. The telephonic replay will be available approximately two hours after the live call and through June 3, 2025, by dialing (800) 727-1367; international callers should dial (402) 220-2669. A replay of the audio webcast will also be available later that same day. To access the audio webcast please visit the Shareholders section of the Company’s website under Events in the Shareholders section of our website at www.midcapfinancialic.com.

SUPPLEMENTAL INFORMATION

The Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available in the Shareholders section of the Company’s website under Presentations at www.midcapfinancialic.com.

Our portfolio composition and weighted average yields as of March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024 were as follows:

	March 31, 2025			December 31, 2024	September 30, 2024		June 30, 2024		March 31, 2024
Portfolio composition, at fair value:
First lien secured debt		93%		92%		91%		90%		90%
Second lien secured debt		0%		1%		1%		1%		1%
Total secured debt		93%		93%		92%		91%		91%
Unsecured debt		0%		0%		—%		—%		—%
Structured products and other		1%		1%		2%		1%		1%
Preferred equity		1%		1%		1%		1%		1%
Common equity/interests and warrants		5%		5%		5%		7%		7%
Weighted average yields, at amortized cost (1):
First lien secured debt (2)		10.5%		10.8%		11.1%		11.9%		12.0%
Second lien secured debt (2)		13.8%		14.4%		14.0%		14.1%		14.1%
Total secured debt (2)		10.5%		10.8%		11.1%		11.9%		12.0%
Unsecured debt portfolio (2)		9.5%		9.5%		9.5%		—%		—%
Total debt portfolio (2)		10.5%		10.8%		11.1%		11.9%		12.0%
Total portfolio (3)		9.4%		9.5%		9.6%		9.9%		10.0%
Interest rate type, at fair value (4):
Fixed rate amount	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion
Floating rate amount	$	2.9 billion	$	2.7 billion	$	2.7 billion	$	2.1 billion	$	2.0 billion
Fixed rate, as percentage of total		1%		1%		1%		0%		0%
Floating rate, as percentage of total		99%		99%		99%		100%		100%
Interest rate type, at amortized cost (4):
Fixed rate amount	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion
Floating rate amount	$	2.9 billion	$	2.7 billion	$	2.7 billion	$	2.1 billion	$	2.0 billion
Fixed rate, as percentage of total		1%		1%		1%		0%		0%
Floating rate, as percentage of total		99%		99%		99%		100%		100%

(1) An investor’s yield may be lower than the portfolio yield due to sales loads and other expenses.
(2) Exclusive of investments on non-accrual status.
(3) Inclusive of all income generating investments, non-income generating investments and investments on non-accrual status.
(4) The interest rate type information is calculated using the Company’s corporate debt portfolio and excludes aviation and investments on non-accrual status.


MIDCAP FINANCIAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share and per share data)

	March 31, 2025			December 31, 2024
	(Unaudited)
Assets
Investments at fair value:
Non-controlled/non-affiliated investments (cost — $2,855,490 and $2,700,957, respectively)	$	2,756,760		$	2,605,329
Non-controlled/affiliated investments (cost — $176,063 and $142,686, respectively)		113,290			84,334
Controlled investments (cost — $326,224 and $333,754, respectively)		318,571			324,753
Cash and cash equivalents		83,703			74,357
Foreign currencies (cost — $1,367 and $1,487, respectively)		1,330			1,429
Receivable for investments sold		32,151			57,195
Interest receivable		25,346			19,289
Dividends receivable		459			709
Deferred financing costs		22,267			23,555
Unrealized appreciation on foreign currency forward contracts		33			—
Prepaid expenses and other assets		1,789			—
Total Assets	$	3,355,699		$	3,190,950

Liabilities
Debt	$	1,935,242		$	1,751,621
Payable for investments purchased		2,091			4,190
Management fees payable		6,061			6,247
Performance-based incentive fees payable		6,433			5,336
Interest payable		9,403			12,813
Accrued administrative services expense		—			60
Unrealized depreciation on foreign currency forward contracts		—			—
Other liabilities and accrued expenses		3,209			6,037
Total Liabilities	$	1,962,439		$	1,786,304
Commitments and contingencies (Note 9)
Net Assets	$	1,393,260		$	1,404,646

Net Assets
Common stock, $0.001 par value (130,000,000 shares authorized; 93,303,622 and 93,780,278 shares issued and outstanding, respectively)	$	94		$	94
Capital in excess of par value		2,652,015			2,658,090
Accumulated under-distributed (over-distributed) earnings		(1,258,849	)		(1,253,538	)
Net Assets	$	1,393,260		$	1,404,646

Net Asset Value Per Share	$	14.93		$	14.98


MIDCAP FINANCIAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data)

	Three Months Ended March 31,
	2025			2024
Investment Income
Non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind (“PIK”) interest income)	$	69,302		$	59,996
Dividend income		—			12
PIK interest income		3,170			1,995
Other income		324			1,708
Non-controlled/affiliated investments:
Interest income (excluding PIK interest income)		1,229			299
Dividend income		240			—
PIK interest income		351			34
Other income		—			—
Controlled investments:
Interest income (excluding PIK interest income)		4,072			4,287
Dividend income		—			—
PIK interest income		—			—
Other income		10			—
Total Investment Income	$	78,698		$	68,331
Expenses
Management fees	$	6,061		$	4,386
Performance-based incentive fees		6,433			6,038
Interest and other debt expenses		30,464			26,179
Administrative services expense		1,016			1,223
Other general and administrative expenses		1,248			2,129
Total expenses		45,222			39,955
Management and performance-based incentive fees waived		—			—
Performance-based incentive fee offset		—			—
Expense reimbursements		(806	)		(168	)
Net Expenses	$	44,416		$	39,787
Net Investment Income	$	34,282		$	28,544
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses):
Non-controlled/non-affiliated investments	$	3,588		$	(7,470	)
Non-controlled/affiliated investments		(188	)		—
Controlled investments		—			—
Foreign currency transactions		(313	)		(618	)
Net realized gains (losses)		3,087			(8,088	)
Net change in unrealized gains (losses):
Non-controlled/non-affiliated investments		(6,088	)		4,983
Non-controlled/affiliated investments		(1,509	)		(2,341	)
Controlled investments		1,348			1,613
Foreign currency forward contracts		24			—
Foreign currency translations		(814	)		778
Net change in unrealized gains (losses)		(7,039	)		5,033
Net Realized and Change in Unrealized Gains (Losses)	$	(3,952	)	$	(3,055	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	30,330		$	25,489
Earnings (Loss) Per Share — Basic	$	0.32		$	0.39

Important Information

Investors are advised to carefully consider the investment objective, risks, charges and expenses of the Company before investing. The prospectus dated April 12, 2023, which has been filed with the Securities and Exchange Commission (“SEC”), contains this and other information about the Company and should be read carefully before investing. An effective shelf registration statement relating to certain securities of the Company is on file with the SEC. Any offering may be made only by means of a prospectus and any accompanying prospectus supplement. Before you invest, you should read the base prospectus in that registration statement, the prospectus and any documents incorporated by reference therein, which the issuer has filed with the SEC, for more complete information about the Company and an offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov.

The information in the prospectus and in this announcement is not complete and may be changed. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

Past performance is not indicative of, or a guarantee of, future performance. The performance and certain other portfolio information quoted herein represents information as of dates noted herein. Nothing herein shall be relied upon as a representation as to the future performance or portfolio holdings of the Company. Investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than their original cost. The Company’s performance is subject to change since the end of the period noted in this report and may be lower or higher than the performance data shown herein.

About MidCap Financial Investment Corporation

MidCap Financial Investment Corporation (NASDAQ: MFIC) is a closed-end, externally managed, diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). For tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company is externally managed by the Investment Adviser, an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries (“Apollo”), a high-growth global alternative asset manager. The Company’s investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. The Company primarily invests in directly originated and privately negotiated first lien senior secured loans to privately held U.S. middle-market companies, which the Company generally defines as companies with less than $75 million in earnings before interest, taxes, depreciation and amortization, as may be adjusted for market disruptions, mergers and acquisitions-related charges and synergies, and other items. To a lesser extent, the Company may invest in other types of securities including, first lien unitranche, second lien senior secured, unsecured, subordinated, and mezzanine loans, and equities in both private and public middle market companies. For more information, please visit www.midcapfinancialic.com

Forward-Looking Statements

Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: future operating results of MFIC and distribution projections; business prospects of MFIC, and the prospects of its portfolio companies, if applicable; and the impact of the investments that MFIC expects to make. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with: future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); changes in general economic conditions, including the impact of supply chain disruptions, tariffs and trade disputes with other countries, or changes in financial markets, and the risk of recession; changes in the interest rate environment and levels of general interest rates and the impact of inflation; the return on equity; the yield on investments; the ability to borrow to finance assets; new strategic initiatives; the ability to reposition the investment portfolio; the market outlook; future investment activity; and risks associated with changes in business conditions and the general economy. MFIC has based the forward-looking statements included in this press release on information available to it on the date hereof, and assumes no obligation to update any such forward-looking statements. Although MFIC undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that MFIC in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

Contact

Elizabeth Besen
Investor Relations Manager
MidCap Financial Investment Corporation
212.822.0625
ebesen@apollo.com

The MIL Network –

May 13, 2025

MIL-OSI: Hallador Energy Company Reports First Quarter 2025 Financial and Operating Results

Source: GlobeNewswire (MIL-OSI)

– Q1 Total Revenue up 6% YoY to $117.8 Million –
– Q1 Net Income up Materially YoY to $10.0 Million or $0.23 Earnings per Share –
– Q1 Operating Cash Flow up ~2x YoY to $38.4 Million –
– Q1 Adjusted EBITDA up ~3x YoY to $19.3 Million –

TERRE HAUTE, Ind., May 12, 2025 (GLOBE NEWSWIRE) — Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today reported its financial results for the first quarter ended March 31, 2025.

“We are pleased with our first quarter performance as we returned to top line growth and saw material improvements to our bottom line and cash flow generation, underscoring the strength of our strategic shift to a vertically integrated independent power producer (‘IPP’),” said Brent Bilsland, President and Chief Executive Officer. “January and February offered a strong backdrop as the combination of colder weather and higher pricing enabled us to benefit from increased dispatch volumes.”

“We are making meaningful progress in our negotiations with a leading global data center developer for the long-term supply of capacity and energy from our facility. Our partner has demonstrated their commitment through significant investments, including securing land, transmission capacity and equipment, in addition to the previously announced exclusivity agreement with us that runs through early June 2025. Given the inherent complexity of these multi-party agreements, it is uncertain that we will finalize terms before the exclusivity expires. However, we remain confident that we will execute a strategic transaction that delivers long-term value for our shareholders.”

Bilsland continued, “We continue to see rising demand for reliable power, particularly as grid volatility grows with the retirement of dispatchable generation. That demand, paired with supportive regulatory sentiment and Hallador’s ability to deliver dependable energy, positions us well for sustained growth. Our evaluation of dual-fuel capabilities and potential acquisitions of other dispatchable generation assets reflect our confidence in the long-term economics and viability of our platform. With a robust contracted sales book, strengthening fundamentals, and ongoing interest from high-demand end users, we believe we are well-positioned to materially strengthen our opportunities for growth and cash flow generation for many years to come.”

First Quarter 2025 Highlights

Hallador returned to growth on both the top and bottom line.
- Total revenue increased 6% year-over-year and 24% quarter-over-quarter to $117.8 million, driven by a strong increase in electric sales to $85.9 million. Electric sales are currently 73% of the Company’s revenue mix, underscoring Hallador’s commitment to emphasizing electric sales as an IPP.
- Net income increased materially to $10.0 million, with adjusted EBITDA up ~3x year-over-year and 78% quarter-over-quarter to $19.3 million.
The Company generated $38.4 million in operating cash flow during the first quarter, which partially supported the repayment of debt and funding capex.
- Total bank debt was reduced to $23.0 million at March 31, 2025, compared to $44.0 million at December 31, 2024, and $77.0 million at March 31, 2024.
- Total liquidity was $69.0 million at March 31, 2025, compared to $37.8 million at December 31, 2024, and $39.5 million at March 31, 2024.
- Capital expenditures in the first quarter were $11.7 million compared to $14.9 million in the year-ago period.
Hallador continues to focus on forward sales to secure its energy position.
- At quarter-end, Hallador had total forward energy, capacity and coal sales to 3rd party customers of $1.1 billion through 2029.

Financial Summary ($ in Millions and Unaudited)

	Q1 2024			Q4 2024			Q1 2025
Electric Sales	$	60.7		$	69.7		$	85.9
Coal Sales – 3^rdParty	$	49.6		$	23.3		$	30.2
Other Revenue	$	1.3		$	1.8		$	1.7
Total Sales and Operating Revenue	$	111.6		$	94.8		$	117.8
Net Income (Loss)	$	(1.7	)	$	(215.8	)	$	10.0
Operating Cash Flow	$	16.4		$	32.5		$	38.4
Adjusted EBITDA*	$	6.8		$	6.2		$	19.3
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^{* Non-GAAP financial measure, defined as EBITDA plus effects of certain subsidiary and equity method investment activity, less other amortization, plus certain operating activities including stock-based compensation, asset retirement obligations accretion, less gain on disposal or abandonment of assets, plus other reclassifications such as special non-recurring project expenses.}

Adjusted EBITDA should not be considered an alternative to net income, income from operations, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Our method of computing Adjusted EBITDA may not be the same method used to compute similar measures reported by other companies.

Management believes the non-GAAP financial measure, Adjusted EBITDA, is an important measure in analyzing our liquidity and is a key component of certain material covenants contained within our Credit Agreement, specifically the minimum quarterly EBITDA. Noncompliance with the covenants could result in our lenders requiring the Company to immediately repay all amounts borrowed. If we cannot satisfy these financial covenants, we would be prohibited under our Credit Agreement from engaging in certain activities, such as incurring additional indebtedness, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA is critical to the assessment of our liquidity. The required amount of Adjusted EBITDA is a variable based on our debt outstanding and/or required debt payments at the time of the quarterly calculation based on a rolling prior 12-month period.

Reconciliation of the non-GAAP financial measure, Adjusted EBITDA, to Income (Loss) before Income taxes, the most comparable GAAP measure, is as follows (in thousands) for the three months ended March 31, 2025 and 2024, respectively.

Reconciliation of GAAP “Income (Loss) before Income Taxes” to non-GAAP “Adjusted EBITDA”
(In $ Thousands and Unaudited)

	Three Months Ended
	March 31,
	2025			2024
NET INCOME (LOSS)	$	9,979		$	(1,696	)
Interest expense		3,723			3,937
Income tax expense (benefit)		—			(610	)
Depreciation, depletion and amortization		14,977			15,443
EBITDA		28,679			17,074
Other operating revenue		—			7
Stock-based compensation		1,084			666
Asset retirement obligations accretion		427			399
Other amortization (1)		(11,334	)		(12,401	)
(Gain) loss on disposal or abandonment of assets, net		(21	)		(24	)
Loss on extinguishment of debt		—			853
Equity method investment (loss)		236			249
Other reclassifications		239			—
Adjusted EBITDA	$	19,310		$	6,823

^{(1) Other amortization relates to the non-cash amortization of the Hoosier PPA entered into in connection with the acquisition of the Merom Power Plant in 2022.}

Solid Forward Sales Position – Segment Basis, Before Intercompany Eliminations (unaudited):

	2025		2026		2027		2028		2029		Total
Power
Energy
Contracted MWh (in millions)		3.04		3.36		1.78		1.09		0.27		9.54
Average contracted price per MWh	$	37.20	$	44.43	$	54.66	$	52.94	$	51.33
Contracted revenue (in millions)	$	113.09	$	149.28	$	97.29	$	57.70	$	13.86	$	431.22

Capacity
Average daily contracted capacity MW		784		733		623		454		100
Average contracted capacity price per MWd	$	211	$	230	$	226	$	225	$	230
Contracted capacity revenue (in millions)	$	45.45	$	61.54	$	51.40	$	37.33	$	3.47	$	199.19

Total Energy & Capacity Revenue

Contracted Power revenue (in millions)	$	158.54	$	210.82	$	148.69	$	95.03	$	17.33	$	630.41

Coal
Priced tons – 3rd party (in millions)		2.21		2.50		2.50		0.50		—		7.71
Avg price per ton – 3rd party	$	50.95	$	55.49	$	56.74	$	59.00	$	—
Contracted coal revenue – 3rd party (in millions)	$	112.60	$	138.73	$	141.85	$	29.50	$	—	$	422.68

TOTAL CONTRACTED REVENUE (IN MILLIONS) – CONSOLIDATED	$	271.14	$	349.55	$	290.54	$	124.53	$	17.33	$	1,053.09

Priced tons – Intercompany (in millions)		1.82		2.30		2.30		2.30		—		8.72
Avg price per ton – Intercompany	$	51.00	$	51.00	$	51.00	$	51.00	$	—
Contracted coal revenue – Intercompany (in millions)	$	92.82	$	117.30	$	117.30	$	117.30	$	—	$	444.72

TOTAL CONTRACTED REVENUE (IN MILLIONS) – SEGMENT	$	363.96	$	466.85	$	407.84	$	241.83	$	17.33	$	1,497.81

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act“), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act“). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as “expects,” “believes,” “intends,” “anticipates,” “plans,” “estimates,” “guidance,” “target,” “potential,” “possible,” or “probable” or statements that certain actions, events or results “may,” “will,” “should,” or “could” be taken, occur or be achieved. Forward-looking statements include, without limitation, those relating to our ability to execute definitive agreements with respect to the non-binding term sheet with a leading global data center developer, to execute a strategic transaction that delivers long-term value for our shareholders or to strengthen opportunities for growth and cash flow generation. Forward-looking statements are based on current expectations and assumptions and analyses made by Hallador and its management in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in Hallador’s annual report on Form 10-K for the year ended December 31, 2024, and other Securities and Exchange Commission filings. Hallador undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

Conference Call and Webcast

Hallador management will host a conference call today, May 12, 2025, at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.

Date: Monday, May 12, 2025
Time: 5:00 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here

The conference call will also be broadcast live and available for replay in the investor relations section of the Company’s website at www.halladorenergy.com.

About Hallador Energy Company

Hallador Energy Company (Nasdaq: HNRG) is a vertically-integrated Independent Power Producer (IPP) based in Terre Haute, Indiana. The Company has two core businesses: Hallador Power Company, LLC, which produces electricity and capacity at its one-Gigawatt (GW) Merom Generating Station, and Sunrise Coal, LLC, which produces and supplies fuel to the Merom Generating Station and other companies. To learn more about Hallador, visit the Company’s website at http://www.halladorenergy.com/.

Company Contact

Marjorie Hargrave
Chief Financial Officer
MHargrave@halladorenergy.com

Investor Relations Contact

Sean Mansouri, CFA
Elevate IR
(720) 330-2829
HNRG@elevate-ir.com

Hallador Energy Company
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)

	March 31,			December 31,
	2025			2024
ASSETS
Current assets:
Cash and cash equivalents	$	6,891		$	7,232
Restricted cash		9,316			4,921
Accounts receivable		12,582			15,438
Inventory		36,318			36,685
Parts and supplies		40,137			39,104
Prepaid expenses		1,808			1,478
Total current assets		107,052			104,858
Property, plant and equipment:
Land and mineral rights		70,307			70,307
Buildings and equipment		435,329			429,857
Mine development		94,725			92,458
Finance lease right-of-use assets		13,034			13,034
Total property, plant and equipment		613,395			605,656
Less – accumulated depreciation, depletion and amortization		(360,624	)		(347,952	)
Total property, plant and equipment, net		252,771			257,704
Equity method investments		2,370			2,607
Other assets		3,904			3,951
Total assets	$	366,097		$	369,120

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of bank debt, net	$	16,965		$	4,095
Accounts payable and accrued liabilities		45,652			44,298
Current portion of lease financing		7,067			6,912
Contract liabilities – current		107,368			97,598
Total current liabilities		177,052			152,903
Long-term liabilities:
Bank debt, net		4,000			37,394
Long-term lease financing		6,921			8,749
Asset retirement obligations		15,386			14,957
Contract liabilities – long-term		42,539			49,121
Other		4,851			1,711
Total long-term liabilities		73,697			111,932
Total liabilities		250,749			264,835
Commitments and contingencies (Note 16)
Stockholders’ equity:
Preferred stock, $.10 par value, 10,000 shares authorized; none issued		—			—
Common stock, $.01 par value, 100,000 shares authorized; 42,978 and 42,621 issued and outstanding, as of March 31, 2025 and December 31, 2024, respectively		430			426
Additional paid-in capital		190,378			189,298
Retained earnings (deficit)		(75,460	)		(85,439	)
Total stockholders’ equity		115,348			104,285
Total liabilities and stockholders’ equity	$	366,097		$	369,120

Hallador Energy Company
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

	Three Months Ended March 31,
	2025			2024
SALES AND OPERATING REVENUES:
Electric sales	$	85,943		$	60,681
Coal sales		30,185			49,630
Other revenues		1,659			1,263
Total sales and operating revenues		117,787			111,574
EXPENSES:
Fuel		15,210			8,059
Other operating and maintenance costs		28,389			37,262
Cost of purchased power		6,840			1,926
Utilities		4,152			4,594
Labor		27,029			35,168
Depreciation, depletion and amortization		14,977			15,443
Asset retirement obligations accretion		427			399
Exploration costs		21			70
General and administrative		6,825			5,944
Gain on disposal or abandonment of assets, net		(21	)		(24	)
Total operating expenses		103,849			108,841

INCOME FROM OPERATIONS		13,938			2,733

Interest expense (1)		(3,723	)		(3,937	)
Loss on extinguishment of debt		—			(853	)
Equity method investment (loss)		(236	)		(249	)
NET INCOME (LOSS) BEFORE INCOME TAXES		9,979			(2,306	)

INCOME TAX EXPENSE (BENEFIT):
Current		—			—
Deferred		—			(610	)
Total income tax expense (benefit)		—			(610	)

NET INCOME (LOSS)	$	9,979		$	(1,696	)

NET INCOME (LOSS) PER SHARE:
Basic	$	0.23		$	(0.05	)
Diluted	$	0.23		$	(0.05	)

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		42,619			34,816
Diluted		43,462			34,816

Hallador Energy Company
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

	Three Months Ended March 31,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	9,979		$	(1,696	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income tax (benefit)		—			(610	)
Equity method investment loss		236			249
Depreciation, depletion and amortization		14,977			15,443
Loss on extinguishment of debt		—			853
Gain on disposal or abandonment of assets, net		(21	)		(24	)
Amortization of debt issuance costs		497			404
Asset retirement obligations accretion		427			399
Cash paid on asset retirement obligation reclamation		(156	)		(639	)
Stock-based compensation		1,084			666
Amortization of contract liabilities		(35,669	)		(24,529	)
Accretion on contract liabilities		1,560			—
Change in current assets and liabilities:
Accounts receivable		2,856			5,709
Inventory		367			(6,613	)
Parts and supplies		(1,033	)		(1,483	)
Prepaid expenses		(330	)		(37	)
Accounts payable and accrued liabilities		3,124			(8,015	)
Contract liabilities		37,297			35,355
Other		3,224			937
Net cash provided by operating activities	$	38,419		$	16,369

Hallador Energy Company
Condensed Consolidated Statements of Cash Flows
(in thousands)
(continued)
(unaudited)

	Three Months Ended March 31,
	2025			2024
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	$	(11,693	)	$	(14,874	)
Proceeds from sale of equipment		21			24
Net cash used in investing activities		(11,672	)		(14,850	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on bank debt		(33,000	)		(26,500	)
Borrowings of bank debt		12,000			12,000
Payments on lease financing		(1,693	)		(1,238	)
Proceeds from sale and leaseback arrangement		—			1,927
Issuance of related party notes payable		—			5,000
Debt issuance costs		—			(38	)
ATM offering		—			6,580
Taxes paid on vesting of RSUs		—			(1	)
Net cash used in financing activities		(22,693	)		(2,270	)
Increase (decrease) in cash, cash equivalents, and restricted cash		4,054			(751	)
Cash, cash equivalents, and restricted cash, beginning of period		12,153			7,123
Cash, cash equivalents, and restricted cash, end of period	$	16,207		$	6,372

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:
Cash and cash equivalents	$	6,891		$	1,635
Restricted cash		9,316			4,737
	$	16,207		$	6,372

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	1,830		$	3,083

SUPPLEMENTAL NON-CASH FLOW INFORMATION:
Change in capital expenditures included in accounts payable and prepaid expense	$	(1,649	)	$	(5,290	)
Stock issued on redemption of convertible notes and interest	$	—		$	9,721

The MIL Network –

May 13, 2025

MIL-OSI: Phunware Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

New Customer Launches Drive 40% Revenue Growth for Software Subscriptions and Services

Strong Balance Sheet of $109.7 Million Powering R&D Activities in AI-Driven Customer Platform and Corporate Initiatives

AUSTIN, Texas, May 12, 2025 (GLOBE NEWSWIRE) — Phunware, Inc. (“Phunware” or the “Company”) (NASDAQ: PHUN), a leader in enterprise cloud solutions for mobile applications, today reported financial results for the first quarter ended March 31, 2025.

Financial Highlights

Software subscriptions and services revenue increased 40% to $0.6 million in Q1 2025, as compared to Q1 2024.
Q1 2025 software and subscription bookings totaled $0.4 million.
Net loss was $3.7 million for the three months ended March 31, 2025, as compared to $2.3 million in the previous year period.
- Primary driver for net loss increase was $1.2 million one-time legal expenses related to the Wild Basin litigation bench trial that concluded in Q1 2025; a decision is expected in Q3 2025.
Net loss per share improved to ($0.18) per share in Q1 2025, as compared to ($0.33) per share in Q1 2024.
Net cash used in operations decreased to $3.3 million for the three months ended March 31, 2025, compared to $5.5 million for the previous year period.
Cash and cash equivalents as of March 31, 2025, was $109.7 million.

Recent Business Highlights

During Q1 2025, added three (3) new customers in the hospitality vertical. Momentum carried into Q2, with a new $0.5 million booking for a multi-location health care facility.
Appointed Quyen Du to the Board of Directors, a 25-year corporate strategy and development executive with Fortune 500 consumer brands.
- Her appointment satisfies Nasdaq Stock Market LLC (“Nasdaq”) continued listing requirements for audit committee service.
Attended investor and industry conferences including the 37th Annual ROTH Conference and upcoming 2025 Hospitality Industry Technology Exposition and Conference (HITEC®) June 16–19 in Indianapolis, Indiana.

Management Commentary

“The first quarter of 2025 was underscored by new customers and bookings and continued focus on our AI-related initiatives,” said interim CEO Stephen Chen. “First quarter revenues of $0.7 million and gross margin of 52% were driven by a 40% increase in Mobile software subscriptions and services with delivered customer projects. With an existing hospitality customer, we launched an integrated conference solution including dynamic wayfinding, mobile engagement messaging, events scheduling, and content management. With a well-known resort and entertainment venue customer, we launched our hospitality industry solution application to enhance guest experiences.”

“Software bookings for the first quarter were $0.4 million and we continue to accelerate our pipeline while simultaneously shortening the sales cycle. With three new customers in the hospitality vertical during the first quarter, and a $0.5 million multi-location health care facility booking in the second quarter, we believe customer momentum continues to accelerate.”

“We were honored to appoint Quyen Du to our Board of Directors in February. Ms. Du brings 25 years’ experience in strategy and corporate development as an executive at Fortune 500 consumer brands. She has an impressive record of guiding strategic growth and will add tremendous expertise to our Board for Phunware investments, M&A and new business development strategies. We are happy to announce that Ms. Du was elected to three-year term at our most recent stockholders’ meeting.”

“While we’ve seen some softness in the ad market, we are focused on new opportunities in that market and investing in marketing and research and development in generative and agentic AI initiatives, among others. We remain committed to reinforcing our core business units, identifying high-impact investment and M&A opportunities, driving operational excellence, and aligning our cost structure for long-term scalability. We are also committed to enhancing our team with experienced sales, marketing, and technology professionals to amplify market visibility and accelerate customer acquisition.”

“Looking ahead, we are developing additional features and functionalities for our existing products, including AI-related features such as AI Personal Concierge for hospitality customers and their guests and Intelligent Reporting for large real property owners. We expect to launch the initial AI Personal Concierge product in mid-2025. With our leadership position in mobile app development, combined with compelling new technology improvements and AI integration, we are executing on our strategic vision to deliver our solutions globally. I look forward to additional announcements and milestones in the months ahead,” concluded Chen.

Note about Non-GAAP Financial Measures

A non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.

In addition to financial results presented in accordance with GAAP, this press release presents adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA is determined by taking net loss and adding interest expense (income), income tax expense, depreciation, and further adjusted for non-cash impairment, valuation adjustments and stock-based compensation expense. The company believes that this non-GAAP measure, viewed in addition to and not in lieu of net loss, provides additional information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company’s internal reporting to evaluate its operations and the performance of senior management. A reconciliation of adjusted EBITDA to net loss, the most comparable GAAP measure, is available in the accompanying financial tables below. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies.


US-GAAP NET LOSS TO ADJUSTED EBITDA RECONCILIATION (Unaudited)

	Three Months Ended March 31,
(in thousands)	2025			2024
Net loss	$	(3,723	)	$	(2,292	)
Add back: Depreciation		4			4
Add back: Interest expense		9			108
Less: Interest income		(1,119	)		(140	)
EBITDA		(4,829	)		(2,320	)
Add back: Stock-based compensation		86			630
Less: Gain on extinguishment of debt		–			(535	)
Adjusted EBITDA	$	(4,743	)	$	(2,225	)

About Phunware

Phunware, Inc. (NASDAQ: PHUN) is an enterprise software company specializing in mobile app solutions with integrated intelligent capabilities. We provide businesses with the tools to create, implement, and manage custom mobile applications, analytics, digital advertising, and location-based services. Phunware is transforming mobile engagement by delivering scalable, personalized, and data-driven mobile app experiences.

Phunware’s mission is to achieve unparalleled connectivity and monetization through the widespread adoption of Phunware mobile technologies, leveraging brands, consumers, partners, digital asset holders, and market participants. Phunware is poised to expand its software products and services audience through a new Generative AI platform which is in development, utilize and monetize its patents and other intellectual property, and renewed focus on development of a digital asset ecosystem for existing holders and new market participants.

For more information on Phunware, please visit www.phunware.com. To better understand and leverage generative AI and Phunware’s mobile app technologies, visit ai.phunware.com.

Safe Harbor / Forward-Looking Statements

This press release includes forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” and similar expressions are intended to identify forward-looking statements. For example, Phunware is using forward-looking statements when it discusses the adoption and impact of emerging technologies and their use across mobile engagement platforms. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. These forward-looking statements involve risks, uncertainties, and other assumptions that may cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, but are not limited to, those factors described under the heading “Risk Factors” in our filings with the SEC. We undertake no obligation to update any forward-looking statements.

By their nature, forward-looking statements involve risks and uncertainties. We caution you that forward-looking statements are not guarantees of future performance and that our actual results may differ materially from those expressed or implied by these forward-looking statements.

Investor Relations Contact:
Chris Tyson, Executive Vice President
MZ Group – MZ North America
949-491-8235
PHUN@mzgroup.us
www.mzgroup.us

Phunware Media Contact:
Joe McGurk, Managing Director
917-259-6895
PHUN@mzgroup.us


Phunware, Inc. Consolidated Balance Sheets (In thousands, except share and per share data)

	March 31,			December 31,
	2025			2024
Assets:	*(Unaudited)*
Current assets:
Cash and cash equivalents	$	109,719		$	112,974
Accounts receivable, net of allowance for credit losses of $264 and $166 as of March 31, 2025 and December 31, 2024, respectively		697			276
Digital currencies		82			103
Prepaid expenses and other current assets		588			406
Total current assets		111,086			113,759
Non-current assets:
Property and equipment, net		20			24
Right-of-use asset		770			840
Other assets		158			158
Total non-current assets		948			1,022
Total assets	$	112,034		$	114,781

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	4,073		$	3,754
Accrued expenses		492			148
Deferred revenue		1,124			1,034
Lease liability		320			313
PhunCoin subscription payable		1,202			1,202
Total current liabilities		7,211			6,451
Deferred revenue		660			528
Lease liability		537			619
Total noncurrent liabilities		1,197			1,147
Total liabilities		8,408			7,598
Commitments and contingencies (See Note 7)		–			–
Stockholders’ equity
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 20,180,875 shares issued and 20,170,745 share outstanding as of March 31, 2025 and 20,166,665 shares issued and 20,156,535 shares outstanding as of December 31, 2024		2			2
Treasury Stock		(502	)		(502	)
Additional paid-in capital		421,169			421,003
Accumulated deficit		(317,043	)		(313,320	)
Total stockholders’ equity		103,626			107,183
Total liabilities and stockholders’ equity	$	112,034		$	114,781

Phunware, Inc. Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share information)

	Three Months Ended
	March 31,
	2025			2024

Net revenues	$	688		$	921
Cost of revenues		329			397
Gross profit		359			524
Operating expenses:
Sales and marketing		896			443
General and administrative		3,464			2,471
Research and development		813			484
Total operating expenses		5,173			3,398
Operating loss		(4,814	)		(2,874	)
Other income (expense):
Interest expense		(9	)		(108	)
Interest income		1,119			140
Gain on extinguishment of debt		–			535
Other (expense) income, net		(19	)		15
Total other income		1,091			582
Loss before taxes		(3,723	)		(2,292	)
Income tax expense		–			–
Net loss		(3,723	)		(2,292	)
Net loss per share, basic and diluted	$	(0.18	)	$	(0.33	)
Weighted-average shares used to compute net loss per share, basic & diluted		20,169,640			6,864,226

Phunware, Inc. Consolidated Statements of Cash Flows (In thousands)

	Three Months Ended
	March 31,
	2025			2024
Operating activities
Net loss	$	(3,723	)	$	(2,292	)
Adjustments to reconcile net loss to net cash used in operating activities:
Gain on extinguishment of debt		–			(535	)
Stock-based compensation		86			630
Other adjustments		132			329
Changes in operating assets and liabilities:
Accounts receivable		(444	)		(82	)
Prepaid expenses and other assets		(182	)		(11	)
Accounts payable and accrued expenses		663			(2,893	)
Lease liability payments		(89	)		(185	)
Deferred revenue		222			(286	)
Net cash used in operating activities from continued operations		(3,335	)		(5,325	)
Net cash used in operating activities from discontinued operations		–			(205	)
Net cash used in operating activities		(3,335	)		(5,530	)
Investing activities
Net cash provided by (used in) investing activities		–			–
Financing activities
Proceeds from sales of common stock, net of issuance costs		80			23,204
Net cash provided by financing activities		80			23,204

Effect of exchange rate on cash		–			(41	)
Net (decrease) increase in cash and cash equivalents		(3,255	)		17,633
Cash and cash equivalents at the beginning of the period		112,974			3,934
Cash and cash equivalents at the end of the period	$	109,719		$	21,567


Supplemental disclosure of cash flow information
Interest paid	$	9		$	4
Income taxes paid	$	–		$	26
Supplemental disclosures of non-cash financing activities:
Issuance of common stock upon conversion of the 2022 Promissory Note	$	–		$	4,505
Issuance of common stock for payment of bonuses and consulting fees	$	–		$	35

The MIL Network –

May 13, 2025

MIL-OSI: Rapid7 Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Annualized recurring revenue (“ARR”) of $837 million, an increase of 4% year-over-year
Total revenue of $210 million, up 3% year-over-year; Product subscriptions revenue of $204 million, up 4% year-over-year
GAAP operating loss of $0.1 million; Non-GAAP operating income of $32 million
Net cash provided by operating activities of $30 million; Free cash flow of $25 million

BOSTON, May 12, 2025 (GLOBE NEWSWIRE) — Rapid7, Inc. (Nasdaq: RPD), a leader in extended risk and threat detection, today announced its financial results for the first quarter 2025.

“We had a slower start to 2025 than anticipated however we have a clear strategy and strong conviction in our long-term opportunity,” said Corey Thomas, Chairman and CEO of Rapid7. “Against a more uncertain macroeconomic environment, we are executing with increased focus and urgency—investing behind our leadership in MDR, accelerating Exposure Command adoption, and sharpening our go-to-market engine. We believe these steps position us for improved ARR in the second half of the year and beyond. At the same time, we remain committed to operational discipline and delivering strong free cash flow in 2025.”

First Quarter 2025 Financial Results and Other Metrics

	As of March 31,
	2025		2024		% Change
	(dollars in thousands)
ARR	$	837,220	$	807,196	4	%
Number of customers		11,685		11,462	2	%
ARR per customer	$	71.6	$	70.4	2	%

	Three Months Ended March 31,
	2025			2024			% Change
	(in thousands, except per share data)
Product subscriptions revenue	$	203,935		$	196,918		4	%
Professional services revenue		6,318			8,183		(23	%)
Total revenue	$	210,253		$	205,101		3	%

North America revenue	$	157,945		$	157,340		—	%
Rest of world revenue		52,308			47,761		10	%
Total revenue	$	210,253		$	205,101		3	%

GAAP gross profit	$	150,773		$	144,107
GAAP gross margin		72	%		70	%
Non-GAAP gross profit	$	157,460		$	151,112
Non-GAAP gross margin		75	%		74	%

GAAP (loss) income from operations	$	(101	)	$	9,716
GAAP operating margin		—	%		5	%
Non-GAAP income from operations	$	32,353		$	40,285
Non-GAAP operating margin		15	%		20	%

GAAP net income	$	2,105		$	1,406
GAAP net income per share, basic	$	0.03			0.02
GAAP net income per share, diluted	$	0.03		$	0.02
Non-GAAP net income	$	35,578		$	39,388
Non-GAAP net income per share:
Basic	$	0.56		$	0.64
Diluted	$	0.49		$	0.55

Adjusted EBITDA	$	38,898		$	46,619

Net cash provided by operating activities	$	29,757		$	31,070
Free cash flow	$	24,677		$	27,534

For additional details on the reconciliation of non-GAAP measures and certain other business metrics to their nearest comparable GAAP measures, please refer to the accompanying financial data tables included in this press release. The prior year period reflects an immaterial correction. Refer to Note 16, Immaterial Correction of an Error, in the notes to our unaudited condensed consolidated financial statements for further information.

Recent Business Highlights

In April, Rapid7 launched unified threat-informed remediation for its Command Platform, delivering effective remediation at scale via proactive exposure remediation and AI-assisted automated detection and response. In addition to these enhancements to the Command Platform, Rapid7 also launched Breach Protection Warranty, offering MTC (Managed Thread Complete) Ultimate customers up to $1,000,000 in coverage embedded directly into the service.
In April, Rapid7 launched Managed Detection & Response (MDR) for Enterprise, a fully managed and customizable detection and response service designed to meet the unique demands of complex, distributed enterprise environments.
In April, Rapid7 introduced Intelligence Hub within its Command Platform, an integrated threat intelligence solution designed to provide security teams with meaningful context and actionable insights for accelerated detection and response.
In March, Rapid7 announced the appointment of three new members to its Board of Directors: Wael Mohamed, Mike Burns, and Kevin Galligan. These strategic appointments reinforce the company’s commitment to scaling the business, enhancing operational efficiency, and driving long-term shareholder returns.
In March, Rapid7 announced plans for expansion in India, including the opening of a global capacity center, which will serve as a Security Operations Center (SOC) and innovation hub to house technology, security operations, customer support, and IT teams.

Second Quarter and Full Year 2025 Guidance

Rapid7 anticipates ARR, revenue, non-GAAP income from operations, non-GAAP net income per share and free cash flow to be in the following ranges:

	Second Quarter 2025			Full-Year 2025
	(in millions, except per share data)
ARR				$850	to	$880
Year-over-year growth				1%	to	5%
Revenue	$211	to	$213	$853	to	$863
Year-over-year growth	1%	to	2%	1%	to	2%
Non-GAAP income from operations	$30	to	$32	$125	to	$135
Non-GAAP net income per share	$0.43	to	$0.46	$1.78	to	$1.91
Weighted average shares outstanding	75.3			76.7
Free cash flow				$125	to	$135

The guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding “Forward-Looking Statements” below. Guidance for the second quarter 2025 does not include any potential impact of foreign exchange gains or losses. The guidance provided above is based on a number of assumptions, estimates and expectations as of the date of this press release and, while presented with numerical specificity, this guidance is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond Rapid7’s control and are based upon specific assumptions with respect to future business decisions or economic conditions, some of which may change. Rapid7 undertakes no obligation to update guidance after this date.

Non-GAAP guidance excludes estimates for stock-based compensation expense, amortization of acquired intangible assets, amortization of debt issuance costs, and certain other items such as acquisition-related expenses, impairment of long-lived assets, restructuring expense, induced conversion expense, change in the fair value of derivative assets, litigation-related expenses and discrete tax items. Rapid7 has provided a reconciliation of each non-GAAP guidance measure to the most comparable GAAP measures in the financial statement tables included in this press release. The reconciliation does not reflect any items that are unknown at this time, including, but not limited to, non-ordinary course litigation-related expenses, which we are not able to predict without unreasonable effort due to their inherent uncertainty.

Conference Call and Webcast Information

Rapid7 will host a conference call today, May 12, 2025, to discuss its results at 4:30 p.m. Eastern Time. The call will be accessible by telephone at 888-330-2384 (domestic) or +1 240-789-2701 (international) with the event code 8484206. The call will also be available live via webcast on Rapid7’s website at https://investors.rapid7.com. A webcast replay of the conference call will be available at https://investors.rapid7.com.

About Rapid7

Rapid7 (Nasdaq: RPD) is on a mission to create a safer digital world by making cybersecurity simpler and more accessible. We empower security professionals to manage a modern attack surface through our best-in-class technology, leading-edge research, and broad, strategic expertise. Rapid7’s comprehensive security solutions help more than 11,000 global customers unite cloud risk management and threat detection to reduce attack surfaces and eliminate threats with speed and precision. For more information, visit our website, check out our blog, or follow us on LinkedIn or Twitter.

Non-GAAP Financial Measures and Other Metrics

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we provide investors with certain non-GAAP financial measures and other metrics, which we believe are helpful to our investors. We use these non-GAAP financial measures and other metrics for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We also use certain non-GAAP financial measures as performance measures under our executive bonus plan. We believe that these non-GAAP financial measures and other metrics provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.

While our non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, you should review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate our business.

Non-GAAP Financial Measures

We disclose the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income, non-GAAP net income per share, adjusted EBITDA and free cash flow. We also disclose non-GAAP gross margin and non-GAAP operating margin derived from these financial measures.

We define non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share as the respective GAAP balances excluding the effect of stock-based compensation expense, amortization of acquired intangible assets, amortization of debt issuance costs and certain other items such as acquisition-related expenses, impairment of long-lived assets, change in the fair value of derivative assets, restructuring expense, induced conversion expense and discrete tax items. Non-GAAP net income per basic and diluted share is calculated as non-GAAP net income divided by the weighted average shares used to compute net income per share, with the number of weighted average shares decreased, when applicable, to reflect the anti-dilutive impact of the capped call transactions entered into in connection with our convertible senior notes.

We believe these non-GAAP financial measures are useful to investors in assessing our operating performance due to the following factors:

Stock-based compensation expense. We exclude stock-based compensation expense because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact our non-cash expense. We believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between our operating results from period to period.

Amortization of acquired intangible assets. We believe that excluding the impact of amortization of acquired intangible assets allows for more meaningful comparisons between operating results from period to period as the intangible assets are valued at the time of acquisition and are amortized over several years after the acquisition.

Amortization of debt issuance costs. The expense for the amortization of debt issuance costs related to our convertible senior notes and our former revolving credit facility is a non-cash item, and we believe the exclusion of this interest expense provides a more useful comparison of our operational performance in different periods.

Induced conversion expense. In conjunction with the third quarter of 2023 partial repurchase of our 2.25% convertible senior notes due 2025, we incurred a non-cash induced conversion expense of $53.9 million. We exclude induced conversion expense because this amount is not indicative of the performance of or trends in our business, and neither is comparable to the prior period nor predictive of future results.

Litigation-related expenses. We exclude non-ordinary course litigation expense because we do not consider legal costs and settlement fees incurred in litigation and litigation-related matters of non-ordinary course lawsuits and other disputes to be indicative of our core operating performance. We do not adjust for ordinary course legal expenses, including legal costs and settlement fees resulting from maintaining and enforcing our intellectual property portfolio and license agreements.

Acquisition-related expenses. We exclude acquisition-related expenses, including accretion expense associated with contingent consideration, as costs that are unrelated to the current operations and are neither comparable to the prior period nor predictive of future results.

Change in fair value of derivative assets. The expense for the change in fair value of derivative assets related to our 2023 capped calls settlement is a non-cash item and we believe the exclusion of this other income (expense) provides a more useful comparison of our operational performance in different periods.

Impairment of long-lived assets. Impairment of long-lived assets consists of impairment charges allocated to the carrying amount of certain operating right-of-use assets and the associated leasehold improvements when the carrying amounts exceed their respective fair values and we believe the exclusion of the impairment charges provides a more useful comparison of our operational performance in different periods.

Restructuring expense. We exclude non-ordinary course restructuring expenses related to our restructuring plan, that was completed during fiscal year 2024, because we do not believe these charges are indicative of our core operating performance and we believe the exclusion of the restructuring expenses provides a more useful comparison of our performance in different periods.

Discrete tax items. We exclude certain discrete tax items such as income tax expenses or benefits that are not related to ongoing business operations in the current year and adjustments to uncertain tax position reserves as these charges are not indicative of our ongoing operating results, and they are not considered when we are forecasting our future results.

Anti-dilutive impact of capped call transaction. Our capped call transactions are intended to offset potential dilution from the conversion features in our convertible senior notes. Although we cannot reflect the anti-dilutive impact of the capped call transactions under GAAP, we do reflect the anti-dilutive impact of the capped call transactions in non-GAAP net income (loss) per diluted share, when applicable, to provide investors with useful information in evaluating our financial performance on a per share basis.

Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure that we define as net income (loss) before (1) interest income, (2) interest expense, (3) other (income) expense, net, (4) provision for (benefit from) income taxes, (5) depreciation expense, (6) amortization of intangible assets, (7) stock-based compensation expense, (8) acquisition-related expenses, and (9) restructuring expense. We believe that the use of adjusted EBITDA is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to compare business performance across companies and across periods.

Free Cash Flow. Free cash flow is a non-GAAP measure that we define as cash provided by operating activities less purchases of property and equipment and capitalization of internal-use software costs. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after necessary capital expenditures.

Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact upon our reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in our business and an important part of the compensation provided to our employees.

Other Metrics

ARR. ARR is defined as the annual value of all recurring revenue related to contracts in place at the end of the period. ARR should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates, and does not include revenue reported as professional services revenue in our consolidated statement of operations.

Number of Customers. We define a customer as any entity that has an active Rapid7 recurring revenue contract as of the specified measurement date, excluding InsightOps and Logentries only customers with a contract value of less than $2,400 per year.

ARR per Customer. We define ARR per customer as ARR divided by the number of customers at the end of the period.

Cautionary Language Concerning Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, the statements regarding our financial guidance for the second quarter and full-year 2025, and the assumptions underlying such guidance. Our use of the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. The events described in our forward-looking statements are subject to a number of risks and uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements. Risks that could cause or contribute to such differences include, but are not limited to, growing macroeconomic uncertainty, unstable market and economic conditions, fluctuations in our quarterly results, our ability to successfully grow our sales of our cloud-based solutions, including through the shift to a consolidated platform sales approach, effectiveness of our restructuring plan that was completed during fiscal year 2024, failure to meet our publicly announced guidance or other expectations about our business, our ability to sustain our revenue growth rate, the ability of our products and professional services to correctly detect vulnerabilities, renewal of our customer’s subscriptions, competition in the markets in which we operate, market growth, our ability to innovate and manage our growth, our sales cycles, our ability to integrate acquired companies, exposure to greater than anticipated tax liabilities, and our ability to operate in compliance with applicable laws as well as other risks and uncertainties that could affect our business and results described in our filings with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K filed with the SEC on February 28, 2025, particularly in the section entitled “Item 1.A Risk Factors,” and in the subsequent reports that we file with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those expressed in any forward-looking statements we may make. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Investor contact:

Elizabeth Chwalk
Vice President, Investor Relations
investors@rapid7.com
(617) 865-4277

Press contact:

Alice Randall
Director, Global Corporate Communications
press@rapid7.com
(214) 693-4727


RAPID7, INC. Consolidated Balance Sheets (Unaudited) (in thousands)

	March 31, 2025			December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	291,462		$	334,686
Short-term investments		202,011			187,025
Accounts receivable, net		140,541			168,242
Deferred contract acquisition and fulfillment costs, current portion		50,667			52,134
Prepaid expenses and other current assets		47,964			44,024
Total current assets		732,645			786,111
Long-term investments		99,136			37,274
Property and equipment, net		31,659			32,245
Operating lease right-of-use assets		46,404			48,877
Deferred contract acquisition and fulfillment costs, non-current portion		69,843			73,672
Goodwill		575,268			575,268
Intangible assets, net		79,763			85,719
Other assets		10,092			12,868
Total assets	$	1,644,810		$	1,652,034
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	12,318		$	18,908
Accrued expenses and other current liabilities		69,458			88,802
Convertible senior notes, current portion, net		45,967			45,895
Operating lease liabilities, current portion		13,614			15,493
Deferred revenue, current portion		447,798			461,118
Total current liabilities		589,155			630,216
Convertible senior notes, non-current portion, net		889,303			888,356
Operating lease liabilities, non-current portion		65,484			68,430
Deferred revenue, non-current portion		27,524			27,078
Other long-term liabilities		20,622			20,243
Total liabilities		1,592,088			1,634,323
Stockholders’ equity:
Common stock	$	642		$	635
Treasury stock		(4,765	)		(4,765	)
Additional paid-in-capital		1,042,355			1,011,080
Accumulated other comprehensive (loss) income		419			(1,205	)
Accumulated deficit		(985,929	)		(988,034	)
Total stockholders’ equity		52,722			17,711
Total liabilities and stockholders’ equity	$	1,644,810		$	1,652,034

Note: Certain prior periods reflect immaterial corrections. Refer to Note 16, Immaterial Correction of an Error, in the notes to our Consolidated Financial Statements for further information.


RAPID7, INC. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data)

	Three Months Ended March 31,
	2025			2024
Revenue:
Product subscriptions	$	203,935		$	196,918
Professional services		6,318			8,183
Total revenue		210,253			205,101
Cost of revenue:
Product subscriptions		54,368			54,734
Professional services		5,112			6,260
Total cost of revenue		59,480			60,994
Total gross profit		150,773			144,107
Operating expenses:
Research and development		47,888			41,368
Sales and marketing		79,400			73,095
General and administrative		23,586			19,928
Total operating expenses		150,874			134,391
(Loss) income from operations		(101	)		9,716
Other income (expense), net:
Interest income		5,758			4,720
Interest expense		(2,654	)		(2,670	)
Other income (expense), net		1,802			(1,435	)
Income before income taxes		4,805			10,331
Provision for income taxes		2,700			8,925
Net income	$	2,105		$	1,406
Net income per share, basic	$	0.03		$	0.02
Net income per share, diluted (1)	$	0.03		$	0.02
Weighted-average common shares outstanding, basic		63,835,945			61,907,808
Weighted-average common shares outstanding, diluted		64,224,415			74,021,704

(1) We use the if-converted method to compute diluted earnings per share with respect to our convertible senior notes. There was no add-back of interest expense or additional dilutive shares related to the convertible senior notes where the effect was anti-dilutive. On an if-converted basis, for the three months ended March 31, 2025 and 2024, the 2025, 2027 and 2029 Notes were anti-dilutive.

Note: Certain prior periods reflect immaterial corrections. Refer to Note 16, Immaterial Correction of an Error, in the notes to our Consolidated Financial Statements for further information.


RAPID7, INC. Consolidated Statements of Cash Flows (Unaudited) (in thousands)

	Three Months Ended March 31,
	2025			2024
Cash flows from operating activities:
Net income	$	2,105		$	1,406
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		11,665			11,348
Amortization of debt issuance costs		1,019			1,053
Stock-based compensation expense		27,151			25,745
Deferred income taxes		—			1,840
Other		(1,153	)		(203	)
Changes in assets and liabilities:
Accounts receivable		27,668			39,529
Deferred contract acquisition and fulfillment costs		5,295			(679	)
Prepaid expenses and other assets		(1,995	)		(1,223	)
Accounts payable		(6,555	)		(4,190	)
Accrued expenses		(20,325	)		(24,890	)
Deferred revenue		(12,874	)		(21,186	)
Other liabilities		(2,244	)		2,520
Net cash provided by operating activities		29,757			31,070
Cash flows from investing activities:
Purchases of property and equipment		(1,361	)		(620	)
Capitalization of internal-use software		(3,719	)		(2,916	)
Purchases of investments		(144,461	)		(93,158	)
Sales and maturities of investments		69,000			55,000
Other investing activities		1,328			—
Net cash used in investing activities		(79,213	)		(41,694	)
Cash flows from financing activities:
Taxes paid related to net share settlement of equity awards		(1,303	)		(1,764	)
Proceeds from employee stock purchase plan		4,446			5,046
Proceeds from stock option exercises		1,589			1,080
Net cash provided by financing activities		4,732			4,362
Effect of exchange rate changes on cash ,cash equivalents and restricted cash		1,334			(1,493	)
Net decrease in cash, cash equivalents and restricted cash		(43,390	)		(7,755	)
Cash, cash equivalents and restricted cash, beginning of period	$	342,101		$	214,130
Cash, cash equivalents and restricted cash, end of period	$	298,711		$	206,375

Supplemental cash flow information:
Cash paid for interest on convertible senior notes		1,571		2,698
Cash paid for income taxes, net of refunds		992		2,352
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	291,462	$	198,716
Restricted cash included in prepaid expenses and other current assets and other assets		7,249		7,659
Total cash, cash equivalents and restricted cash	$	298,711	$	206,375

Note: Certain prior periods reflect immaterial corrections. Refer to Note 16, Immaterial Correction of an Error, in the notes to our Consolidated Financial Statements for further information.


RAPID7, INC. GAAP to Non-GAAP Reconciliation (Unaudited) (in thousands, except share and per share data)

	Three Months Ended March 31,
	2025			2024
GAAP gross profit	$	150,773		$	144,107
Add: Stock-based compensation expense¹		2,264			2,671
Add: Amortization of acquired intangible assets²		4,423			4,317
Non-GAAP gross profit	$	157,460		$	151,095
Non-GAAP gross margin		74.9	%		73.7	%

GAAP gross profit – Product subscriptions	$	149,567		$	142,184
Add: Stock-based compensation expense		1,731			2,298
Add: Amortization of acquired intangible assets		4,423			4,317
Non-GAAP gross profit – Product subscriptions	$	155,721		$	148,799
Non-GAAP gross margin – Product subscriptions		76.4	%		75.6	%

GAAP gross profit – Professional services	$	1,206		$	1,923
Add: Stock-based compensation expense		533			373
Non-GAAP gross profit – Professional services	$	1,739		$	2,296
Non-GAAP gross margin – Professional services		27.5	%		28.1	%

GAAP (loss) income from operations	$	(101	)	$	9,716
Add: Stock-based compensation expense¹		27,151			25,745
Add: Amortization of acquired intangible assets²		5,120			5,014
Add: Acquisition-related expenses³		183			—
Add: Restructuring expense		—			(190	)
Non-GAAP income from operations	$	32,353		$	40,285

GAAP net income	$	2,105		$	1,406
Add: Stock-based compensation expense¹		27,151			25,745
Add: Amortization of acquired intangible assets²		5,120			5,014
Add: Amortization of debt issuance costs		1,019			1,053
Add: Acquisition-related expenses³		183			—
Add: Restructuring expense⁴		—			(190	)
Add: Discrete tax items⁵		—			6,360
Non-GAAP net income	$	35,578		$	39,388
Add: Interest expense of convertible senior notes⁶		1,571			1,571
Numerator for non-GAAP earnings per share, diluted calculation	$	37,149		$	40,959

Weighted average shares used in GAAP earnings per share calculation, basic		63,835,945			61,907,808
Dilutive effect of convertible senior notes⁶		11,183,611			11,183,611

Dilutive effect of employee equity incentive plans⁷		388,471			930,195
Weighted average shares used in non-GAAP earnings per share calculation, diluted		75,408,027			74,021,614

Non-GAAP net income per share:
Basic	$	0.56		$	0.64
Diluted	$	0.49		$	0.55

¹Includes stock-based compensation expense as follows:
Cost of revenue	$	2,264		$	2,671
Research and development		10,386			7,944
Sales and marketing		7,241			7,137
General and administrative		7,260			7,993

²Includes amortization of acquired intangible assets as follows:
Cost of revenue	$	4,423		$	4,317
Sales and marketing		652			652
General and administrative		45			45

³Includes acquisition-related expenses as follows:
General and administrative	$	183		$	—

⁴For the three months ended March 31, 2024 restructuring expense was included within general and administrative expense in our consolidated statements of operations.

⁵Includes discrete tax items as follows:
Provision for income taxes	$	—		$	6,360

⁶We use the if-converted method to compute diluted earnings per share with respect to our convertible senior notes. There was no add-back of interest expense or additional dilutive shares related to the convertible senior notes where the effect was anti-dilutive.

⁷We use the treasury method to compute the dilutive effect of employee equity incentive plan awards.

Note: Certain prior periods reflect immaterial corrections. Refer to Note 16, Immaterial Correction of an Error, in the notes to our Consolidated Financial Statements for further information.


RAPID7, INC. Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited) (in thousands)

	Three Months Ended March 31,
	2025			2024
GAAP net income	$	2,105		$	1,406
Interest income		(5,758	)		(4,720	)
Interest expense		2,654			2,670
Other (income) expense, net		(1,802	)		1,435
Provision for (benefit from) income taxes		2,700			8,925
Depreciation expense		2,791			2,908
Amortization of intangible assets		8,874			8,440
Stock-based compensation expense		27,151			25,745
Acquisition-related expenses		183			—
Restructuring expense		—			(190	)
Adjusted EBITDA	$	38,898		$	46,619

Note: Certain prior period reflect immaterial corrections. Refer to Note 16, Immaterial Correction of an Error, in the notes to our Consolidated Financial Statements for further information.


RAPID7, INC. Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited) (in thousands)

	Three Months Ended March 31,
	2025			2024
Net cash provided by operating activities	$	29,757		$	31,070
Less: Purchases of property and equipment		(1,361	)		(620	)
Less: Capitalized internal-use software costs		(3,719	)		(2,916	)
Free cash flow	$	24,677		$	27,534


Second Quarter and Full-Year 2025 Guidance GAAP to Non-GAAP Reconciliation (in millions, except per share data)

	Second Quarter 2025						Full-Year 2025
Reconciliation of GAAP income from operations to non-GAAP income from operations:
Anticipated GAAP loss from operations	$	(2	)	to	$	—	$	(11	)	to	$	(1	)
Add: Anticipated stock-based compensation expense		27		to		27		116		to		116
Add: Anticipated amortization of acquired intangible assets		5		to		5		20		to		20
Anticipated non-GAAP income from operations	$	30		to	$	32	$	125		to	$	135

Reconciliation of GAAP net income to non-GAAP net income:
Anticipated GAAP net loss	$	(2	)	to	$	—	$	(9	)	to	$	1
Add: Anticipated stock-based compensation expense		27		to		27		116		to		116
Add: Anticipated amortization of acquired intangible assets		5		to		5		20		to		20
Add: Anticipated amortization of debt issuance costs		1		to		1		4		to		4
Anticipated non-GAAP net income	$	31		to	$	33	$	131		to	$	141
Add: Anticipated interest expense on convertible senior notes		1.4		to		1.4		5.6		to		5.6
Numerator for non-GAAP earnings per share calculation	$	32.4		to	$	34.4	$	136.6		to	$	146.6

Anticipated GAAP net (loss) income per share¹	$	(0.03	)		$	—	$	(0.14	)		$	0.02
Anticipated non-GAAP net income per share, diluted	$	0.43			$	0.46	$	1.78			$	1.91

Weighted average shares used in earnings per share calculation, diluted	75.3						76.7

¹The anticipated GAAP net loss per share is calculated using basic weighted average shares for periods in which the Company anticipated a GAAP net loss. The anticipated GAAP net income per share is calculated using GAAP diluted weighted average shares for periods in which the Company anticipated GAAP net income.

The reconciliation does not reflect any items that are unknown at this time, including, but not limited to, non-ordinary course litigation-related expenses, which we are not able to predict without unreasonable effort due to their inherent uncertainty. As a result, the estimates shown for Anticipated GAAP loss from operations, Anticipated GAAP net loss and Anticipated GAAP net loss per share are expected to change.


	Full-Year 2025
Reconciliation of net cash provided by operating activities to free cash flow:
Anticipated net cash provided by operating activities	$	146		to	$	156
Less: Anticipated purchases of property and equipment		(7	)	to		(7	)
Less: Anticipated capitalized internal-use software costs		(14	)	to		(14	)
Anticipated free cash flow	$	125			$	135

The MIL Network –

May 13, 2025

MIL-OSI: Lantronix Appoints Sailesh Chittipeddi to Its Board of Directors

Source: GlobeNewswire (MIL-OSI)

IRVINE, Calif., May 12, 2025 (GLOBE NEWSWIRE) — Lantronix Inc. (NASDAQ: LTRX), a global leader of compute and connectivity for IoT solutions enabling Edge AI Intelligence, today announced that Sailesh Chittipeddi, Ph.D., has joined the Lantronix Board of Directors as an independent director, effective May 6, 2025. Following the appointment of Chittipeddi, the Lantronix Board of Directors will be comprised of five directors, four of whom are independent under applicable listing standards of the Nasdaq Stock Market.

“We are very pleased to welcome Dr. Chittipeddi to the Lantronix Board of Directors,” said Hoshi Printer, chairman of the Board at Lantronix. “Dr. Chittipeddi is a respected subject expert in Industrial, IoT and Infrastructure businesses. He also has an extensive background in leading operations, procurement and supply chains globally.”

Dr. Chittipeddi is currently a Venture Partner at Novo Tellus Capital Partners, a Singapore-based private equity firm, and a Board Member at Tessolve, which is headquartered in India. Most recently, he was executive vice president of Global Operations at Renesas Electronics, where he oversaw internal and external manufacturing and associated functions, including supply chain, procurement and related development.

“Lantronix will benefit greatly from Dr. Chittipeddi’s extensive technology and broad industry expertise, including his service on boards of several global companies where he helped drive successful results,” added Saleel Awsare, CEO and president of Lantronix. “With his expertise in manufacturing, procurement, logistics and global supply chain strategy, Dr. Chittipeddi adds a valuable perspective as we navigate complex geopolitical and associated supply chain environment challenges.”

At Renesas, Dr. Chittipeddi also served as executive vice president of its Industrial, IoT and Infrastructure Business Unit. In this capacity, he nearly doubled the revenue to more than $7 billion USD. This business unit included the microcontroller, power and analog-mixed signal businesses of former IDT, ISL and DLG acquisition companies. He joined Renesas in 2019 following its acquisition of IDT. In this capacity, he also served as the president of Renesas Electronics America as well as the CEO of its acquired IDT Division.

Before his tenures at Renesas and IDT, Dr. Chittipeddi held numerous senior positions at other leading technology companies, including Conexant Systems, where he served as the CEO and president, as well as AT&T Bell Labs, Lucent Technologies and Agere Systems. He has also served on global public and private boards, including Sequans Communications, Tessolve (India), Avalanche Technologies (India), Steradian (India), Blu Wireless Technology (U.K.) and Peraso (Canada).

Dr. Chittipeddi holds an MBA from the University of Texas at Austin and a Ph.D. in Physics from The Ohio State University. He holds 83 U.S. semiconductor process, package and design patents and has published more than 40 technical articles.

About Lantronix

Lantronix Inc. is a global leader of compute and connectivity IoT solutions that target high-growth markets, including Smart Cities, Enterprise and Transportation. Lantronix’s products and services empower companies to succeed in the growing IoT markets by delivering customizable solutions that enable AI Edge Intelligence. Lantronix’s advanced solutions include Intelligent Substations infrastructure, Infotainment systems and Video Surveillance, supplemented with advanced Out-of-Band Management (OOB) for Cloud and Edge Computing.

For more information, visit the Lantronix website.

Lantronix Media Contact:
Gail Kathryn Miller
Corporate Marketing &
Communications Manager
media@lantronix.com

Lantronix Analyst and Investor Contact:
investors@lantronix.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d04b3fa2-b8d8-4656-adad-c8d4eb6267c4

The MIL Network –

May 13, 2025

MIL-OSI: OptimizeRx Reports First Quarter 2025 Financial Results and Updates Fiscal Year 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

Q1 revenue of $21.9 million, increasing 11% year-over-year
Q1 gross profit increased 9% year-over-year to $13.3 million
Increases full year 2025 guidance to a revenue range between $101 million and $106 million and adjusted EBITDA range between $13 million and $15 million

WALTHAM, Mass., May 12, 2025 (GLOBE NEWSWIRE) — OptimizeRx Corp. (the “Company”) (Nasdaq: OPRX), a leading provider of healthcare technology solutions helping life sciences companies reach and engage healthcare professionals (HCPs) and patients, today reported results for the three months ended March 31, 2025. Quarterly comparisons are to the same year-ago period.

Financial Highlights

Revenue in the first quarter of 2025 increased 11% to $21.9 million, as compared to $19.7 million in the same year ago period
Gross profit in the first quarter of 2025 increased 9% year-over-year to $13.3 million, from $12.2 million during the first quarter of 2024
GAAP net loss totaled $(2.2) million or $(0.12) per basic and diluted share in the first quarter of 2025, as compared to $(6.9) million or $(0.38) per basic and diluted share during the first quarter of 2024
Non-GAAP net income in the first quarter totaled $1.5 million or $0.08 per diluted share, as compared to Non-GAAP net loss of $(2.0) million or $(0.11) per diluted share during the first quarter of 2024 (see *Non-GAAP Measures below)
Adjusted EBITDA for the first quarter of 2025 increased to $1.5 million compared to $(0.3) million in the same year ago period (see *Non-GAAP Measures below)
Cash, cash equivalents and short-term investments totaled $16.6 million as of March 31, 2025, as compared to $13.4 million as of December 31, 2024

Stephen L. Silvestro, OptimizeRx CEO commented, “I’m encouraged by our year-to-date performance, which has exceeded both consensus estimates and our internal expectations. The momentum we saw at the end of 2024 has carried into 2025, with year-to-date contracted revenue up more than 20% compared to the same period last year—positioning us well for a strong second half of the year. I believe this performance clearly reflects the results of our focus on operational excellence, our commitment to delighting customers, and our efforts to deepen relationships with valued business partners, all of which are driving meaningful shareholder value.

“At the same time, we’ve already converted over 5% of our expected 2025 sales into subscription-based revenue streams. I believe this transition, combined with our improving operating leverage, puts us on a strong path toward achieving Rule of 40 performance in the coming years.

“Given our strong performance and positive outlook, I’m pleased to announce that we are raising our full-year guidance. We now expect the revenue range to be between $101 million and $106 million, and adjusted EBITDA to be between $13 million and $15 million.”

	Rolling Twelve Months Ended March 31,
Key Performance Indicators (KPIs)**	2025			2024
	(in thousands, except percentages)
Average revenue per top 20 pharmaceutical manufacturer	$	2,960		$	2,592
Percent of total revenue attributable to top 20 pharmaceutical manufacturers		63	%		66	%
Net revenue retention		114	%		116	%
Revenue per average full-time employee	$	710		$	641

2025 Financial Outlook

The Company is increasing its 2025 guidance and expects revenue to be between $101 million and $106 million with Adjusted EBITDA to be between $13 million and $15 million.

Conference Call

Individual Meeting Invitation

In an effort to increase relations with institutional investors, OptimizeRx management has dedicated time to hosting individual meetings with portfolio managers and analysts. If you are interested in scheduling a meeting with OptimizeRx management, please contact: adsilva@optimizerx.com or shalper@lifesciadvisors.com.

*Non-GAAP Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors and, for historical periods, a reconciliation of these measures to the most directly comparable GAAP measures are included in the supplemental tables that follow.

Although the Company provides guidance for Adjusted EBITDA, a non-GAAP financial measure, it is not able to provide guidance to the most directly comparable GAAP measure. Reconciliations for forward-looking figures would require unreasonable effort at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including, for example, those related to compensation, acquisition expenses, other income, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable significance of the unavailable information.

**Definition of Key Performance Indicators

Top 20 pharmaceutical manufacturers: We have updated the definition of “top 20 pharmaceutical manufacturers” in our key performance indicators to be based upon Fierce Pharma’s most updated list of “The top 20 pharma companies by 2024 revenue”. We previously used “The top 20 pharma companies by 2023 revenue”. As a result of this change, prior periods have been restated for comparative purposes.

Net revenue retention: Net revenue retention is a comparison of revenue generated from all clients in the previous period to total revenue generated from the same clients in the following year (i.e., excludes new client relationships for the most recent year).

Revenue per average full-time employee: We define revenue per average full-time employee (FTE) as total revenue over the last 12 months (LTM) divided by the average number of employees over the LTM, which is calculated by taking our total number of FTEs at the end of the prior year period by our total FTE headcount at the end of the most recent period.

About OptimizeRx

OptimizeRx is a leading healthcare technology company that’s redefining how life science brands connect with patients and healthcare providers. Our platform combines innovative AI-driven tools like the Dynamic Audience Activation Platform (DAAP) and Micro-Neighborhood Targeting (MNT) to deliver timely, relevant, and hyper-local engagement. By bridging the gap between HCP and DTC strategies, we empower brands to create synchronized marketing solutions that drive faster treatment decisions and improved patient outcomes.

Our commitment to privacy-safe, patient-centric technology ensures that every interaction is designed to make a meaningful impact, delivering life-changing therapies to the right patients at the right time. Headquartered in Waltham, Massachusetts, OptimizeRx partners with some of the world’s leading pharmaceutical and life sciences companies to transform the healthcare landscape and create a healthier future for all.

For more information, follow the Company on Twitter, LinkedIn or visit www.optimizerx.com.

Important Cautions Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates”, “believes”, “estimates”, “expects”, “forecasts”, “intends”, “plans”, “projects”, “targets”, “designed”, “could”, “may”, “should”, “will” or other similar words and expressions are intended to identify these forward-looking statements. All statements that reflect the Company’s expectations, assumptions, projections, beliefs or opinions about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements relating to the Company’s future performance, expected revenues, expected Adjusted EBITDA, plans to grow shareholder value creation, plans to continue the Company’s growth and transformation, plans to position the Company to become a “Rule of 40” company, plans for forging stronger relationships with valued business partners, and other statements relating to future performance, plans, and expectations. These forward-looking statements are based on the Company’s current expectations and involve assumptions regarding the Company’s business, the economy, and other future conditions that may never materialize or may prove to be incorrect. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties including, but not limited to, the effect of government regulation, seasonal trends, dependence on a concentrated group of customers, cybersecurity incidents that could disrupt operations, the ability to keep pace with growing and evolving technology, the ability to maintain contracts with electronic prescription platforms and electronic health records networks, competition, and other factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, its subsequent Quarterly Reports on Form 10-Q, and in other filings the Company has made and may make with the Securities and Exchange Commission in the future. One should not place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as may be required by law.

OptimizeRx Contact
Andy D’Silva, SVP Corporate Finance
adsilva@optimizerx.com

Investor Relations Contact
Steven Halper
LifeSci Advisors, LLC
shalper@lifesciadvisors.com

OPTIMIZERX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

	March 31, 2025			December 31, 2024
ASSETS	(unaudited)
Current assets
Cash and cash equivalents	$	16,573		$	13,380
Accounts receivable, net of allowance for credit losses of $335 at March 31, 2025 and December 31, 2024		32,720			38,212
Taxes receivable		113			—
Prepaid expenses and other		2,305			2,379
Total current assets		51,711			53,971
Property and equipment, net		150			150
Other assets
Goodwill		70,869			70,869
Patent rights, net		5,349			5,517
Technology assets, net		7,931			8,180
Tradename and customer relationships, net		31,226			31,819
Operating lease right of use assets		303			366
Security deposits and other assets		229			296
Total other assets		115,907			117,047
TOTAL ASSETS	$	167,768		$	171,168

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current portion of long-term debt	$	3,300		$	2,000
Accounts payable		3,381			2,156
Accrued expenses		9,277			8,486
Revenue share payable		1,743			5,053
Taxes payable		—			318
Current portion of lease liabilities		139			168
Deferred revenue		511			473
Total current liabilities		18,351			18,654
Non-current liabilities
Long-term debt, net		29,190			30,816
Lease liabilities, net of current portion		171			209
Deferred tax liabilities, net		3,786			4,491
Total liabilities		51,498			54,170

Stockholders’ equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding at March 31, 2025 or December 31, 2024		—			—
Common stock, $0.001 par value, 166,666,667 shares authorized, 20,234,186 and 20,194,697 shares issued at March 31, 2025 and December 31, 2024, respectively		20			20
Treasury stock, $0.001 par value, (1,741,397) shares held at March 31, 2025 and December 31, 2024		(2	)		(2	)
Additional paid-in-capital		202,819			201,348
Accumulated deficit		(86,567	)		(84,368	)
Total stockholders’ equity		116,270			116,998
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	167,768		$	171,168

OPTIMIZERX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data, unaudited)

	For the Three Months Ended March 31,
	2025			2024

Net revenue	$	21,928		$	19,690
Cost of revenues, exclusive of depreciation and amortization presented separately below		8,584			7,486
Gross profit		13,344			12,204

Operating expenses
General and administrative expenses		14,364			16,166
Depreciation and amortization		1,094			1,067
Total operating expenses		15,458			17,233
Loss from operations		(2,114	)		(5,029	)
Other income (expense)
Interest expense		(1,297	)		(1,546	)
Other income		39			—
Interest income		88			20
Total other expense, net		(1,170	)		(1,526	)
Loss before provision for income taxes		(3,284	)		(6,555	)
Income tax benefit (expense)		1,085			(344	)
Net loss	$	(2,199	)	$	(6,899	)
Weighted average number of shares outstanding – basic		18,470,808			18,170,108
Weighted average number of shares outstanding – diluted		18,470,808			18,170,108
Loss per share – basic	$	(0.12	)	$	(0.38	)
Loss per share – diluted	$	(0.12	)	$	(0.38	)

OPTIMIZERX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)

	For the Three Months Ended March 31,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,199	)	$	(6,899	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		1,094			1,067
Stock-based compensation		1,558			3,024
Bad debt reserve		—			132
Amortization of debt issuance costs		174			182
Changes in:
Accounts receivable		5,492			6,373
Prepaid expenses and other assets		74			800
Accounts payable		1,225			(562	)
Revenue share payable		(3,310	)		(2,692	)
Accrued expenses and other liabilities		854			(362	)
Taxes receivable and payable		(431	)		323
Deferred tax liabilities		(705	)		—
Deferred revenue		38			732
NET CASH PROVIDED BY OPERATING ACTIVITIES		3,864			2,118

CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of property and equipment		(27	)		(32	)
Capitalized software development costs		(57	)		(121	)
NET CASH USED IN INVESTING ACTIVITIES		(84	)		(153	)

CASH FLOWS USED IN FINANCING ACTIVITIES:
Cash paid for employee withholding taxes related to the vesting of restricted stock units		(87	)		(140	)
Repayment of long-term debt		(500	)		(500	)
NET CASH USED IN FINANCING ACTIVITIES		(587	)		(640	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		3,193			1,325
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD		13,380			13,852
CASH AND CASH EQUIVALENTS – END OF PERIOD	$	16,573		$	15,177

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	1,121		$	1,350
Cash paid for income taxes	$	—		$	21

OPTIMIZERX CORPORATION
RECONCILIATION of GAAP to NON-GAAP FINANCIAL MEASURES
(in thousands, except share and per share data, unaudited)

This earnings release includes certain financial measures not derived in accordance with generally accepted accounting principles (GAAP). These non-GAAP financial measures are measures of performance not defined by accounting principles generally accepted in the United States and should be considered in addition to, not in lieu of, GAAP reported measures. Additionally, these non-GAAP measures may not be comparable to similarly titled measures reported by other companies. However, management believes that presenting certain non-GAAP financial measures provides additional information to facilitate comparison of the Company’s historical operating results and trends in its underlying operating results and provides transparency on how the Company evaluates its business. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Management believes that financial information excluding certain items that are not considered to reflect the Company’s ongoing operating results, such as those listed below, improves the comparability of year-to-year results. Consequently, management believes that investors may be able to better understand the Company’s operating results excluding these items. Non-GAAP financial measures may reflect adjustments for items such as asset impairment charges, amortization, stock-based compensation, acquisition expenses, severance, shareholder activist related fees, CEO search fees, other income, as well as other items that management believes are not related to the Company’s ongoing performance.

	Three Months Ended March 31,
	2025			2024
Net loss	$	(2,199	)	$	(6,899	)
Depreciation and amortization		1,094			1,067
Stock-based compensation		1,558			3,024
Severance expenses		275			419
Shareholder activist related fees		451			—
CEO search fees		225			—
Other income		(39	)		—
Amortization of debt issuance costs		174			182
Acquisition expenses		—			243
Non-GAAP net income (loss)	$	1,539		$	(1,964	)

Non-GAAP net income (loss) per share
Diluted	$	0.08		$	(0.11	)
Weighted average shares outstanding:
Diluted		18,579,012			18,170,108

	Three Months Ended March 31,
	2025			2024
Net loss	$	(2,199	)	$	(6,899	)
Depreciation and amortization		1,094			1,067
Income tax (benefit) expense		(1,085	)		344
Stock-based compensation		1,558			3,024
Severance expenses		275			419
Acquisition expenses		—			243
Shareholder activist related fees		451			—
CEO search fees		225			—
Other income		(39	)		—
Interest expense, net		1,209			1,526
Adjusted EBITDA	$	1,489		$	(276	)

The MIL Network –

May 13, 2025

MIL-OSI: Amplify Energy Announces First Quarter 2025 Results, Beta Development Update and Updated Full-Year 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

HOUSTON, May 12, 2025 (GLOBE NEWSWIRE) — Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today its operating and financial results for the first quarter of 2025 and updated full-year 2025 guidance for the Company.

Beta Development Program Update

Amplify initiated a development drilling program in the prolific Beta oilfield in 2024 to demonstrate the significant upside potential of the asset and generate strong incremental cash flows for the Company, with results to date proving out the viability and long-term potential of the program
Completed the C54 well in mid-April 2025
- Drilled well utilizing lessons learned from 2024 program including the implementation of a managed pressure drilling system
- IP20 was approximately 800 Bopd, which has been the strongest initial well performance in the program
- With the C54 online, the three wells completed in the D-Sand (our primary target formation) are all projected to have greater than 90% IRR at $60/bbl oil prices
Completed the C48 well in mid-February 2025 as the first C-Sand completion
- Initially planned as a D-Sand completion, but due to drilling complications elected to complete the shallower C-Sand
- Current production rate of approximately 100 BOPD
- Well exhibits lower oil gravities and reservoir pressures than the D-Sand completions
- Future injection support in the area to increase reservoir pressure and deliverability is expected to prove the C-Sand as a viable future target zone
With the recent completions of the C48 and C54, the field now has four new development wells online, which, after offsetting the asset’s base decline, have increased Beta production by approximately 35% since early 2024
Based on Beta development success, at year-end 2024 Amplify had 25 SEC Proved Undeveloped (“PUD”) locations (21 D-Sand locations) with approximately $144 million in PV-10 value¹
- D-Sand completions to date are significantly outperforming the type curve utilized in SEC PUD value/reserves indicating material upside above the current valuation estimate
- Substantial future development remains at Beta beyond the current SEC PUD locations which are based on conservative volumetric and recovery factor assumptions

First Quarter Highlights

During the first quarter of 2025, the Company:
- Achieved average total production of 17.9 MBoepd
- Generated net cash provided by operating activities of $25.5 million and a net loss of $5.9 million
- Delivered Adjusted EBITDA of $19.4 million and Adjusted Net Income of $3.8 million
- Generated $6.3 million in net proceeds from the sale of undeveloped Haynesville acreage in East Texas
  - In May 2025, sold additional Haynesville interests generating $1.5 million in proceeds
- Generated $0.9 million of Adjusted EBITDA at Magnify Energy Services, Amplify’s wholly owned subsidiary (“Magnify”)
- As of March 31, 2025, Amplify had $125.0 million outstanding under the revolving credit facility
  - Net debt to Last Twelve Months (“LTM”) Adjusted EBITDA of 1.3x²

^{(1) 2024 Year End reserves are evaluated at flat pricing: (NYMEX WTI, HH) – $65.00, $4.00}

^{(2) Net debt as of March 31, 2025, consisting of $125 MM outstanding under its revolving credit facility with ~$0 MM of cash and cash equivalents, and LTM Adjusted EBITDA as of the first quarter of 2025.}

Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “Amplify’s strong first quarter operating and financial results continue to demonstrate the significant value derived from the Company’s portfolio of assets. At Beta, we brought online two wells this year, which strengthen our conviction about the prolific untapped value that remains in the reservoir. In East Texas and the Eagle Ford, we anticipate our non-operated development projects will begin producing in the second quarter, with improved natural gas prices driving strong economics for our East Texas wells. Also, in East Texas, we recently monetized a portion of our undeveloped acreage with Haynesville rights in two separate transactions for net proceeds of $7.8 million dollars, while retaining an interest in over 30 gross locations to realize upside value in future periods.”

Mr. Willsher continued, “In light of recent market volatility and a material reduction in oil prices, we conducted a comprehensive review of our remaining uncommitted 2025 capital budget and have elected to temporarily defer three development projects at Beta resulting in capital savings of approximately $15 million in 2025. While our Beta development projects have strong economics at current oil prices, we have flexibility on the timing of these projects and are committed to maintaining strong free cash flow and a healthy balance sheet for our investors. Our diversified portfolio of mature, low-decline assets and robust hedge book protect our cash flow profile during commodity downturns, allowing us the flexibility to scale up or down investments in either oil or gas projects depending on market conditions.”

Mr. Willsher concluded, “Going forward, Amplify intends to focus on prudent management of its existing asset base to maximize free cash flow and is conducting a thorough review of additional operating and overhead cost-saving opportunities. The Company will also continue to evaluate portfolio optimization opportunities, which could enable us to accelerate Beta development.”

Key Financial Results

During the first quarter of 2025, the Company reported a net loss of approximately $5.9 million. The net loss was primarily attributable to a non-cash unrealized loss on commodity derivatives during the period partially offset by a gain on the sale of East Texas properties. Excluding the impact of the non-cash unrealized loss on commodity derivatives, the East Texas divestiture, and additional other one-time impacts, Amplify generated Adjusted Net Income of $3.8 million in the first quarter of 2025.

First quarter 2025 Adjusted EBITDA was $19.4 million, a decrease of approximately $2.4 million from the prior quarter. The decrease was primarily due to higher lease operating expense and general and administrative expense that are typically higher in the first quarter offset by stronger gas price realizations compared to the prior quarter.

Free cash flow was negative $7.2 million for the first quarter, which was in-line with expectations, due to planned capital investments.




	First Quarter		Fourth Quarter
$ in millions	2025		2024
Net income (loss)	($5.9	)	($7.4	)
Net cash provided by operating activities	$25.5		$12.5
Average daily production (MBoe/d)	17.9		18.5
Total revenues excluding hedges	$72.1		$69.0
Adjusted EBITDA (a non-GAAP financial measure)	$19.4		$21.8
Adjusted net income (loss), (a non-GAAP financial measure)	$3.8		$5.1
Total capital	$23.1		$15.3
Free Cash Flow (a non-GAAP financial measure)	($7.2	)	$2.9

Revolving Credit Facility and Liquidity Update

As of March 31, 2025, Amplify had total debt of $125 million under its revolving credit facility. Net debt to LTM Adjusted EBITDA was 1.3x (net debt as of March 31, 2025). The borrowing base is redetermined on a semi-annual basis with the next redetermination expected in the second quarter of 2025.

Corporate Production and Pricing

During the first quarter of 2025, average daily production was approximately 17.9 Mboepd, a decrease of 0.6 Mboepd from the prior quarter. The decrease in production was driven by natural gas and NGL volumes affected by a gas imbalance adjustment in East Texas and adverse weather in Oklahoma, causing widespread power outages. These temporary production issues were factored into the production guidance previously presented for 2025.

The Company’s product mix for the quarter was 46% crude oil, 16% NGLs, and 38% natural gas.

		Three Months		Three Months
		Ended		Ended
		March 31, 2025		December 31, 2024

Production volumes – MBOE:
	Bairoil	280		293
	Beta	315		308
	Oklahoma	393		436
	East Texas / North Louisiana	570		609
	Eagle Ford (Non-op)	49		60
	Total – MBoe	1,607		1,706
	Total – MBoe/d	17.9		18.5
	% – Liquids	62	%	62	%

Total oil, natural gas and NGL revenues for the first quarter of 2025 were approximately $70.3 million, before the impact of derivatives. The Company realized a net gain on commodity derivatives of $0.5 million during the first quarter. Oil, natural gas and NGL revenues, net of realized hedges, decreased $0.4 million for the first quarter compared to the prior quarter.

The following table sets forth information regarding average realized sales prices for the periods indicated:

	Crude Oil ($/Bbl)				NGLs ($/Bbl)						Natural Gas ($/Mcf)
	Three Months Ended March 31, 2025		Three Months Ended December 31, 2024		Three Months Ended March 31, 2025			Three Months Ended December 31, 2024			Three Months Ended March 31, 2025		Three Months Ended December 31, 2024

Average sales price exclusive of realized derivatives and certain deductions from revenue	$	67.82	$	66.82	$	25.24		$	23.46		$	3.87	$	2.52
Realized derivatives		0.49		1.43		–			–			0.04		0.76

Average sales price with realized derivatives exclusive of certain deductions from revenue	$	68.31	$	68.25	$	25.24		$	23.46		$	3.91	$	3.28
Certain deductions from revenue		–		–		(1.78	)		(1.37	)		0.02		(0.01	)

Average sales price inclusive of realized derivatives and certain deductions from revenue	$	68.31	$	68.25	$	23.46		$	22.09		$	3.93	$	3.27

Costs and Expenses

Lease operating expenses in the first quarter of 2025 were approximately $37.4 million, or $23.28 per Boe, a $2.3 million increase compared to the prior quarter and in-line with internal projections. Lease operating expenses are expected to decrease in the second half of 2025 after cost savings projects are completed in Bairoil, and fewer expense workovers are conducted later in the year. Lease operating expenses do not reflect $0.9 million of income generated by Magnify in the first quarter.

Severance and ad valorem taxes in the first quarter were approximately $4.4 million, a decrease of $1.0 million compared to $5.4 million in the prior quarter. Lower production taxes were primarily due to lower production and a one-time benefit from reversing a prior accrual for waste emissions charges. Severance and ad valorem taxes as a percentage of revenue were approximately 6.2% in the first quarter. The Company anticipates that taxes as a percentage of revenue will remain within its previously announced guidance range for 2025.

Amplify incurred $4.3 million, or $2.67 per Boe, of gathering, processing and transportation expenses in the first quarter, compared to $4.5 million, or $2.62 per Boe, in the prior quarter.

Cash G&A expenses in the first quarter were $7.3 million, down 7% compared to the first quarter of 2024, and in-line with expectations. The Company anticipates that quarterly cash G&A expenses will be significantly lower throughout the remainder of the year primarily due to annual year-end processes that impact various cost drivers in the first quarter. The Company expects costs to be in line with our previously announced guidance range.

Depreciation, depletion and amortization expense in the first quarter totaled $8.5 million, or $5.29 per Boe, compared to $8.4 million, or $4.93 per Boe, in the prior quarter.

Net interest expense was $3.5 million in the first quarter, a decrease of $0.2 million compared to $3.7 million in the prior quarter.

Amplify recorded minimal current income tax expense for the first quarter of 2025.

Capital Investment Update

Cash capital investment during the first quarter of 2025 was approximately $23.1 million. During the first quarter, the Company’s capital allocation was approximately 55% for development drilling, recompletions and facility projects at Beta, and approximately 30% for non-operated development projects in East Texas and the Eagle Ford, with the remainder distributed across the Company’s other assets.

The following table details Amplify’s capital invested during the first quarter of 2025:

	First Quarter
	2025 Capital
	($ MM)
Bairoil	$	1.3
Beta	$	12.7
Oklahoma	$	1.4
East Texas / North Louisiana	$	3.4
Eagle Ford (Non-op)	$	3.9
Magnify Energy Services	$	0.3
Total Capital Invested	$	23.1

2025 Operations & Development Plan

Amplify has adjusted its 2025 operations and development plan for the current lower commodity price environment. The Company is electing to reduce discretionary development capital at Beta for the second half of 2025, while our previously committed non-operated projects in East Texas and the Eagle Ford are expected to be completed and brought online in the second quarter.

Amplify’s current plan is to complete three wells at Beta in 2025, including the C48 and C54 wells, which were brought online in mid-February and mid-April, respectively. Amplify intends to drill and complete its next Beta well in the third quarter, which will be a D-Sand completion drilled in the same fault block as the recently completed C54 and the C59, which was completed in October 2024 and is still producing greater than 500 bopd. With the exceptional economics at Beta, Amplify will consider adding back development wells later this year should commodity prices improve.

Other capital at Beta for 2025 includes $8 million to upgrade a two-mile pipeline that ships all produced fluid from platform Eureka to platform Elly, facility upgrades and capital workovers. Additional information regarding the Beta development plan can be found in the Company’s investor presentation under the investor relations section of the website.

In East Texas, we are participating in the completion of four non-operated development projects, which we expect to be online in late second quarter. Operators in the area are taking advantage of strong natural gas prices and favorable economics, and the Company anticipates more activity in this area. For the Company’s operated assets, the team is focused on prudent management of the field, such as optimizing field compression, artificial lift enhancement, and equipment insourcing, which is expected to improve the production profile and lower lease operating costs.

Also in East Texas, as previously announced, Amplify sold 90% of its interest in certain units with Haynesville rights in Harrison County, Texas, in addition to 11 gross operated wells, and purchased a 10% interest in adjacent acreage, generating $6.3 million in net proceeds from the sale. This transaction also established an area of mutual interest (“AMI”) with the counterparty covering 10,000 gross acres. We estimate the AMI has more than 30 potential gross drilling locations.

In May 2025, Amplify completed a separate transaction, which monetized 90% of its interests in three additional units with Haynesville rights in Panola and Shelby Counties, finalizing a separate AMI consisting of seven total units. Amplify also retained a 10% working interest with the ability to participate in any well drilled within the boundary of the AMI. Upon closing the transaction, Amplify generated approximately $1.5 million in proceeds.

From November 2024 to present, Amplify has generated proceeds of $9.2 million related to Haynesville acreage transactions, while retaining a 10% working interest in two newly created AMIs in the Haynesville play of East Texas.

In the Eagle Ford, we are participating in 14 gross (0.7 net) new development wells and two gross (0.4 net) recompletion projects. These non-operated wells, with highly accretive forecasted returns, have been completed and are scheduled to come online in early May. The Company is also evaluating additional development opportunities recently offered by our partners in fields where we have interests.

Updated Full-Year 2025 Guidance

Based on recent reductions to crude oil prices, Amplify has decided to modify its capital plans in order to maintain positive free cash flow in 2025. As a result of these modifications, we are providing updated guidance. The following guidance is subject to the cautionary statements and limitations described under the “Forward-Looking Statements” caption at the end of this press release. Amplify’s updated 2025 guidance is based on its current expectations regarding capital investment and full-year 2025 commodity prices for crude oil of $61.75/Bbl (WTI) and natural gas of $3.60/MMBtu (Henry Hub), and on the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products. Additionally, the Company expects to invest approximately 95% of its capital in the first three quarters of the year primarily in connection with the Beta development program and for non-operated development projects in East Texas and the Eagle Ford.

A summary of the guidance is presented below:

	March 5, 2025			March 7, 2025
	Previous Guidance			Updated Guidance

	FY 2025E			FY 2025E

	Low		High	Low		High

Net Average Daily Production
Oil (MBbls/d)	8.5	–	9.4	8.3	–	8.9
NGL (MBbls/d)	3.0	–	3.3	3.0	–	3.3
Natural Gas (MMcf/d)	45.0	–	51.0	45.0	–	50.0
Total (MBoe/d)	19.0	–	21.0	19.0	–	20.5

Commodity Price Differential / Realizations (Unhedged)
Oil Differential ($ / Bbl)	($3.25)	–	($4.25)	($3.25)	–	($4.25)
NGL Realized Price (% of WTI NYMEX)	27%	–	31%	27%	–	31%
Natural Gas Realized Price (% of Henry Hub)	85%	–	92%	85%	–	92%

Other Revenue
Magnify Energy Services ($ MM)	$4	–	$6	$4	–	$6
Other ($ MM)	$2	–	$3	$2	–	$3
Total ($ MM)	$6	–	$9	$6	–	$9

Gathering, Processing and Transportation Costs
Oil ($ / Bbl)	$0.65	–	$0.85	$0.65	–	$0.85
NGL ($ / Bbl)	$2.75	–	$4.00	$2.75	–	$4.00
Natural Gas ($ / Mcf)	$0.55	–	$0.75	$0.55	–	$0.75
Total ($ / Boe)	$2.25	–	$2.85	$2.25	–	$2.85

Average Costs
Lease Operating ($ / Boe)	$18.50	–	$20.50	$18.50	–	$20.50
Taxes (% of Revenue) ⁽¹⁾	6.0%	–	7.0%	6.0%	–	7.0%
Cash General and Administrative ($ / Boe) ⁽²⁾⁽³⁾	$3.40	–	$3.90	$3.40	–	$3.90

Adjusted EBITDA ($ MM) ⁽²⁾⁽³⁾	$100	–	$120	$80	–	$110
Cash Interest Expense ($ MM)	$12	–	$18	$12	–	$18
Capital Investment ($ MM)	$70	–	$80	$55	–	$70
Free Cash Flow ($ MM) ⁽²⁾⁽³⁾	$10	–	$30	$10	–	$20

⁽¹⁾ Includes production, ad valorem and franchise taxes
⁽²⁾ Refer to “Use of Non-GAAP Financial Measures” for Amplify’s definition and use of cash G&A, Adjusted EBITDA and free cash flow, non-GAAP measures (cash income taxes, which are not included in free cash flow, are expected to range between $0 – $1 million for the year)
⁽³⁾ Amplify believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require Amplify to predict the timing and likelihood of future transactions and other items that are difficult to accurately predict. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.

Hedging

Amplify maintains a robust hedge book to support its cash flow profile and provide downside protection in weak commodity environments. Recently, the Company added to its hedge position, further protecting future cash flows.

Amplify executed crude oil swaps covering the first half of 2026 at a weighted average price of $62.55 per barrel and the first half of 2027 with a weighted average price of $61.93 per barrel. The Company also added natural gas swaps covering 2026 at a weighted average price of $4.12 per MMBtu, collars for the first quarter of 2026 with a weighted average floor of $4.50 per MMBtu and a weighted average ceiling of $5.73 and natural gas collars for 2027 with a weighted average floor of $3.57 per MMBtu and a weighted average ceiling of $4.58 per MMBtu.

The following table reflects the hedged volumes under Amplify’s commodity derivative contracts and the average fixed floor and ceiling prices at which production is hedged for April 2025 through December 2027, as of May 12, 2025:

	2025		2026		2027

Natural Gas Swaps:
Average Monthly Volume (MMBtu)		560,000		515,000		137,500
Weighted Average Fixed Price ($)	$	3.75	$	3.80	$	4.01

Natural Gas Collars:
Two-way collars
Average Monthly Volume (MMBtu)		500,000		517,500		437,500
Weighted Average Ceiling Price ($)	$	3.90	$	4.11	$	4.21
Weighted Average Floor Price ($)	$	3.50	$	3.58	$	3.56

Oil Swaps:
Average Monthly Volume (Bbls)		141,444		125,500		30,667
Weighted Average Fixed Price ($)	$	70.61	$	66.40	$	61.93

Oil Collars:
Two-way collars
Average Monthly Volume (Bbls)		45,333
Weighted Average Ceiling Price ($)	$	80.20
Weighted Average Floor Price ($)	$	70.00

Amplify has posted an updated investor presentation containing additional hedging information on its website, www.amplifyenergy.com, under the Investor Relations section.

Quarterly Report on Form 10-Q

Amplify’s financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which Amplify expects to file with the SEC on May 12, 2025.

About Amplify Energy

Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas / North Louisiana, and the Eagle Ford (Non-op). For more information, visit www.amplifyenergy.com.

Conference Call

Amplify will host an investor teleconference tomorrow at 10 a.m. Central Time to discuss these operating and financial results. Interested parties may join the call by dialing (888) 999-3182 at least 15 minutes before the call begins and providing the Conference ID: AEC1Q25. A telephonic replay will be available for fourteen days following the call by dialing (800) 654-1563 and providing the Access Code: 52458798. A transcript and a recorded replay of the call will also be available on our website after the call.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “may,” “will,” “would,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “outlook,” “continue,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated results with respect thereto. These statements address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as projections of results of operations, plans for growth, goals, future capital expenditures, competitive strengths, references to future intentions and other such references. These forward-looking statements involve risks and uncertainties and other factors that could cause the Company’s actual results or financial condition to differ materially from those expressed or implied by forward-looking statements. These include risks and uncertainties relating to, among other things: the Company’s evaluation and implementation of strategic alternatives; risks related to the redetermination of the borrowing base under the Company’s revolving credit facility; the Company’s ability to satisfy debt obligations; the Company’s need to make accretive acquisitions or substantial capital expenditures to maintain its declining asset base, including the existence of unanticipated liabilities or problems relating to acquired or divested business or properties; volatility in the prices for oil, natural gas and NGLs; the Company’s ability to access funds on acceptable terms, if at all, because of the terms and conditions governing the Company’s indebtedness, including financial covenants; general political and economic conditions, globally and in the jurisdictions in which we operate, including the Russian invasion of Ukraine, and ongoing conflicts in the Middle East, trade wars and the potential destabilizing effect such conflicts may pose for the global oil and natural gas markets; expectations regarding general economic conditions, including inflation; and the impact of local, state and federal governmental regulations, including those related to climate change and hydraulic fracturing, and potential changes in these regulations. Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10-K, and if applicable, the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Company’s Investor Relations website at https://www.amplifyenergy.com/investor-relations/sec-filings/default.aspx or on the SEC’s website at http://www.sec.gov, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Except as required by law, the Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

Use of Non-GAAP Financial Measures

This press release and accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, Adjusted Net Income (Loss), free cash flow, net debt, PV-10 and cash G&A. The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities, standardized measure of discounted future net cash flows, or any other measure of financial performance calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as Amplify does.

Adjusted EBITDA. Amplify defines Adjusted EBITDA as net income (loss) plus Interest expense, net; Income tax expense (benefit); DD&A; Accretion of AROs; Loss or (gain) on commodity derivative instruments; Cash settlements received or (paid) on expired commodity derivative instruments; Amortization of gain associated with terminated commodity derivatives; Losses or (gains) on sale of properties; Share-based compensation expenses; Exploration costs; Acquisition and divestiture related costs; Loss on settlement of AROs; Bad debt expense; and Pipeline incident loss. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of Amplify’s financial statements, such as investors, research analysts and rating agencies, to assess: (1) its operating performance as compared to other companies in Amplify’s industry without regard to financing methods, capital structures or historical cost basis; (2) the ability of its assets to generate cash sufficient to pay interest and support Amplify’s indebtedness; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.

Adjusted Net Income (Loss). Amplify defines Adjusted Net Income (Loss) as net income (loss) adjusted for unrealized loss (gain) on commodity derivative instruments, acquisition and divestiture-related expenses, unusual and infrequent items, and the income tax expense or benefit of these adjustments using our federal statutory tax rate. Adjusted Net Income (Loss) excludes the impact of unusual and infrequent items affecting earnings that vary widely and unpredictably. This measure is not meant to disassociate these items from management’s performance but rather is intended to provide helpful information to investors interested in comparing our performance between periods. Adjusted Net Income (Loss) is not considered to be an alternative to net income (loss) reported in accordance with GAAP.

Free cash flow. Amplify defines free cash flow as Adjusted EBITDA, less cash interest expense and capital expenditures. Free cash flow is an important non-GAAP financial measure for Amplify’s investors since it serves as an indicator of the Company’s success in providing a cash return on investment. The GAAP measures most directly comparable to free cash flow are net income and net cash provided by operating activities.

Net debt. Amplify defines net debt as the total principal amount drawn on the revolving credit facility less cash and cash equivalents. The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company’s capital structure and financial leverage.

PV-10. PV-10 is a non-GAAP financial measure that represents the present value of estimated future cash inflows from proved oil and natural gas reserves that are calculated using the unweighted arithmetic average first-day-of-the-month prices for the prior 12 months, less future development and operating costs, discounted at 10% per annum to reflect the timing of future cash flows. The most directly comparable GAAP measure to PV-10 is standardized measure. PV-10 differs from standardized measure in its treatment of estimated future income taxes, which are excluded from PV-10. Amplify believes the presentation of PV-10 provides useful information because it is widely used by investors in evaluating oil and natural gas companies without regard to specific income tax characteristics of such entities. PV-10 is not intended to represent the current market value of our estimated proved reserves. PV-10 should not be considered in isolation or as a substitute for the standardized measure as defined under GAAP. As GAAP does not prescribe a comparable GAAP measure for PV-10 of reserves adjusted for pricing sensitives, it is not practicable for us to reconcile PV-10 to a standardized measure or any other GAAP measure.

Cash G&A. Amplify defines cash G&A as general and administrative expense, less share-based compensation expense; acquisition and divestiture costs; bad debt expense; and severance payments. Cash G&A is an important non-GAAP financial measure for Amplify’s investors since it allows for analysis of G&A spend without regard to share-based compensation and other non-recurring expenses which can vary substantially from company to company. The GAAP measures most directly comparable to cash G&A is total G&A expenses.

Contacts

Jim Frew — Senior Vice President and Chief Financial Officer
(832) 219-9044
jim.frew@amplifyenergy.com

Michael Jordan — Director, Finance and Treasurer
(832) 219-9051
michael.jordan@amplifyenergy.com

Selected Operating and Financial Data (Tables)

Amplify Energy Corp.
Selected Financial Data – Unaudited
Statements of Operations Data

		Three Months			Three Months
		Ended			Ended
(Amounts in $000s, except per share data)		March 31, 2025			December 31, 2024

Revenues:
	Oil and natural gas sales	$	70,341		$	67,189
	Other revenues		1,709			1,832
	Total revenues		72,050			69,021

Costs and Expenses:
	Lease operating expense		37,417			35,100
	Pipeline incident loss		396			2,405
	Gathering, processing and transportation		4,286			4,468
	Exploration		6			10
	Taxes other than income		4,384			5,356
	Depreciation, depletion and amortization		8,494			8,418
	General and administrative expense		10,815			9,486
	Accretion of asset retirement obligations		2,183			2,156
	Realized (gain) loss on commodity derivatives		(503	)		(4,052	)
	Unrealized (gain) loss on commodity derivatives		14,820			13,357
	(Gain) loss on sale of properties		(6,251	)		(1,367	)
	Other, net		(3	)		334
	Total costs and expenses		76,044			75,671

Operating Income (loss)			(3,994	)		(6,650	)

Other Income (Expense):
	Interest expense, net		(3,519	)		(3,684	)
	Other income (expense)		115			(113	)
	Total other income (expense)		(3,404	)		(3,797	)

	Income (loss) before reorganization items, net and income taxes		(7,398	)		(10,447	)

Income tax benefit (expense) – current			(1	)		2,132
Income tax benefit (expense) – deferred			1,538			886

	Net income (loss)	$	(5,861	)	$	(7,429	)

Earnings per share:
	Basic and diluted earnings (loss) per share	$	(0.15	)	$	(0.19	)

Selected Financial Data – Unaudited
Operating Statistics

		Three Months		Three Months
		Ended		Ended
(Amounts in $000s, except per unit data)		March 31, 2025		December 31, 2024

Oil and natural gas revenue:
	Oil Sales	$	49,982	$	50,817
	NGL Sales		6,157		6,602
	Natural Gas Sales		14,202		9,770
	Total oil and natural gas sales – Unhedged	$	70,341	$	67,189

Production volumes:
	Oil Sales – MBbls		737		760
	NGL Sales – MBbls		263		299
	Natural Gas Sales – MMcf		3,647		3,883
	Total – MBoe		1,607		1,706
	Total – MBoe/d		17.9		18.5

Average sales price (excluding commodity derivatives):
	Oil – per Bbl	$	67.82	$	66.82
	NGL – per Bbl	$	23.46	$	22.09
	Natural gas – per Mcf	$	3.89	$	2.52
	Total – per Boe	$	43.76	$	39.37

Average unit costs per Boe:
	Lease operating expense	$	23.28	$	20.57
	Gathering, processing and transportation	$	2.67	$	2.62
	Taxes other than income	$	2.73	$	3.14
	General and administrative expense	$	6.73	$	5.56
	Realized gain/(loss) on commodity derivatives	$	0.31	$	2.38
	Depletion, depreciation, and amortization	$	5.29	$	4.93

Selected Financial Data – Unaudited
Asset Operating Statistics

		Three Months			Three Months
		Ended			Ended
		March 31, 2025			December 31, 2024

Production volumes – MBOE:
	Bairoil		280			293
	Beta		315			308
	Oklahoma		393			436
	East Texas / North Louisiana		570			609
	Eagle Ford (Non-op)		49			60
	Total – MBoe		1,607			1,706
	Total – MBoe/d		17.9			18.5
	% – Liquids		62	%		62	%

Lease operating expense – $M:
	Bairoil	$	13,732		$	11,800
	Beta		13,305			12,113
	Oklahoma		3,856			3,948
	East Texas / North Louisiana		4,981			5,887
	Eagle Ford (Non-op)		1,542			1,351
	Total Lease operating expense:	$	37,416		$	35,099

Capital expenditures – $M:
	Bairoil	$	1,322		$	190
	Beta		12,733			10,001
	Oklahoma		1,445			168
	East Texas / North Louisiana		3,449			2,758
	Eagle Ford (Non-op)		3,905			2,125
	Magnify Energy Services		263			82
	Total Capital expenditures:	$	23,117		$	15,324

Selected Financial Data – Unaudited
Balance Sheet Data

(Amounts in $000s)			March 31, 2025			December 31, 2024

Assets
	Cash and Cash Equivalents		$	–		$	–
	Accounts Receivable			35,893			39,713
	Other Current Assets			24,296			32,064
		Total Current Assets	$	60,189		$	71,777

	Net Oil and Gas Properties		$	400,770		$	386,218
	Other Long-Term Assets			292,680			289,081
		Total Assets	$	753,639		$	747,076

Liabilities
	Accounts Payable		$	19,863		$	13,231
	Accrued Liabilities			40,343			43,413
	Other Current Liabilities			18,658			11,494
		Total Current Liabilities	$	78,864		$	68,138

	Long-Term Debt		$	125,000		$	127,000
	Asset Retirement Obligation			131,158			129,700
	Other Long-Term Liabilities			15,680			13,326
		Total Liabilities	$	350,702		$	338,164

Shareholders’ Equity
	Common Stock & APIC		$	440,266		$	440,380
	Accumulated Earnings (Deficit)			(37,329	)		(31,468	)
		Total Shareholders’ Equity	$	402,937		$	408,912

Selected Financial Data – Unaudited
Statements of Cash Flows Data

	Three Months			Three Months
	Ended			Ended
(Amounts in $000s)	March 31, 2025			December 31, 2024


Net cash provided by (used in) operating activities	$	25,501		$	12,455
Net cash provided by (used in) investing activities		(21,497	)		(19,379	)
Net cash provided by (used in) financing activities		(4,004	)		6,924

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Adjusted EBITDA and Free Cash Flow

		Three Months			Three Months
		Ended			Ended
(Amounts in $000s)		March 31, 2025			December 31, 2024

Reconciliation of Adjusted EBITDA to Net Cash Provided from Operating Activities:
	Net cash provided by operating activities	$	25,501		$	12,455
	Changes in working capital		(5,372	)		4,770
	Interest expense, net		3,519			3,684
	Amortization of gain associated with terminated commodity derivatives		159			159
	Amortization and write-off of deferred financing fees		(315	)		(315	)
	Exploration costs		6			10
	Acquisition and divestiture related costs		1,629			1,424
	Plugging and abandonment cost		171			754
	Current income tax expense (benefit)		1			(2,132	)
	Pipeline incident loss		396			2,405
	(Gain) loss on sale of properties		(6,251	)		(1,367	)
Adjusted EBITDA:		$	19,444		$	21,847

Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:
Adjusted EBITDA:		$	19,444		$	21,847
	Less: Cash interest expense		3,545			3,598
	Less: Capital expenditures		23,117			15,324
Free Cash Flow:		$	(7,218	)	$	2,925

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Adjusted EBITDA and Free Cash Flow

		Three Months			Three Months
		Ended			Ended
(Amounts in $000s)		March 31, 2025			December 31, 2024

Reconciliation of Adjusted EBITDA to Net Income (Loss):
	Net income (loss)	$	(5,861	)	$	(7,429	)
	Interest expense, net		3,519			3,684
	Income tax expense (benefit) – current		1			(2,132	)
	Income tax expense (benefit) – deferred		(1,538	)		(886	)
	Depreciation, depletion and amortization		8,494			8,418
	Accretion of asset retirement obligations		2,183			2,156
	(Gains) losses on commodity derivatives		14,317			9,305
	Cash settlements received (paid) on expired commodity derivative instruments		503			4,052
	Amortization of gain associated with terminated commodity derivatives		159			159
	Acquisition and divestiture related costs		1,629			1,424
	Share-based compensation expense		1,890			1,686
	(Gain) loss on sale of properties		(6,251	)		(1,367	)
	Exploration costs		6			10
	Loss on settlement of AROs		(3	)		334
	Bad debt expense		–			28
	Pipeline incident loss		396			2,405
Adjusted EBITDA:		$	19,444		$	21,847

	Reconciliation of Free Cash Flow to Net Income (Loss):
	Adjusted EBITDA:	$	19,444		$	21,847
	Less: Cash interest expense		3,545			3,598
	Less: Capital expenditures		23,117			15,324
	Free Cash Flow:	$	(7,218	)	$	2,925

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Net Income (Loss) to Adjusted Net Income (Loss)

			Three Months			Three Months
			Ended			Ended
(Amounts in $000s, except per share data)			March 31, 2025			December 31, 2024

Reconciliation of Adjusted Net Income (Loss):
	Net income (loss)		$	(5,861	)	$	(7,429	)
	Unrealized (gain) loss on commodity derivatives			14,820			13,357
	Acquisition and divestiture related costs			1,629			1,424
	Non-recurring costs:
		Income tax expense (benefit) – deferred		(1,538	)		(886	)
		Gain on sale of properties		(6,251	)		(1,367	)
	Tax effect of adjustments			971			(12	)
		Adjusted net income (loss)	$	3,770		$	5,087

Selected Operating and Financial Data (Tables)
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Cash General and Administrative Expenses

	Three Months		Three Months
	Ended		Ended
(Amounts in $000s)	March 31, 2025		December 31, 2024

General and administrative expense	$	10,815	$	9,486
Less: Share-based compensation expense		1,890		1,686
Less: Acquisition and divestiture costs		1,629		1,424
Less: Bad debt expense		—		28
Less: Severance payments		—		—
Total Cash General and Administrative Expense	$	7,296	$	6,348

The MIL Network –

May 13, 2025

MIL-OSI: GigaCloud Technology Inc Announces First Quarter Ended March 31, 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

EL MONTE, Calif., May 12, 2025 (GLOBE NEWSWIRE) — GigaCloud Technology Inc (Nasdaq: GCT) (“GigaCloud” or the “Company”), a pioneer of global end-to-end B2B technology solutions for large parcel merchandise, today announced financial results for the first quarter ended March 31, 2025, including sustained revenue and GMV growth over the comparable prior year period.

First Quarter 2025 Financial Highlights

Total revenues of $271.9 million, increased 8.3% year-over-year.
Gross profit of $63.7 million, decreased 4.2% year-over-year.
Gross margin was 23.4%, compared to 26.5% in the first quarter of 2024.
Net income of $27.1 million, in line with $27.2 million reported in the prior-year period.
Net income margin was 10.0%, compared to 10.8% in the first quarter of 2024.
Diluted EPS increased 3.0% year-over-year to $0.68.
Adjusted EBITDA¹ of $33.2 million, decreased 3.8% year-over-year.
Adjusted EPS – diluted² of $0.83, decreased 1.2% year-over-year.
Cash and cash equivalents, Restricted Cash, and Investments totaled $287.5 million as of March 31, 2025, a 5.1% decrease from December 31, 2024.

Operational Highlights

GigaCloud Marketplace GMV³ increased 56.1% year-over-year to $1,416.7 million for the 12 months ended March 31, 2025.
3P seller GigaCloud Marketplace GMV⁴ increased 49.9% year-over-year to $734.3 million for the 12 months ended March 31, 2025. 3P seller GigaCloud Marketplace GMV represented 51.8% of total GigaCloud Marketplace GMV for the 12 months ended March 31, 2025.
Active 3P sellers⁵ increased 33.4% year-over-year to 1,154 for the 12 months ended March 31, 2025.
Active buyers⁶ increased 81.4% year-over-year to 9,966 for the 12 months ended March 31, 2025.
Spend per active buyer⁷ was $142,156 for the 12 months ended March 31, 2025.

“Despite persistent industry headwinds, we continue to grow and see the strength of the GigaCloud Marketplace come through—buyers and sellers continue to lean in during times of volatility and challenge. That is a testament to the efficiency and value created by our Supplier Fulfilled Retailing (SFR) model,” said Larry Wu, Founder, Chairman, and Chief Executive Officer. “We are building GigaCloud to thrive for the long-term by empowering our partners to do business smarter in an increasingly complex global market. While we are actively managing near-term macro uncertainty, the positive long-term fundamentals reinforce our confidence in delivering lasting value.”

“In September 2024, our Board of Directors approved a share repurchase program of $46 million, and subsequently increased the total authorized amount to $62 million in March 2025. As of today, we have repurchased approximately 3.7 million shares for $61.8 million—close to 150% of the gross proceeds raised in our IPO—at a weighted average price well above our IPO offering price. We remain positioned to deploy additional capital through future repurchase authorizations, balancing capital returns and growth investments to drive future shareholder value creation,” said Erica Wei, Chief Financial Officer.

Business Outlook

The Company expects its total revenues to be between $275 million and $305 million in the second quarter of 2025. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.

Share Repurchase Program

In September 2024, the Company’s Board of Directors (the “Board”) approved a $46 million share repurchase program, which was increased by $16 million to $62 million on March 28, 2025. Following quarter-end, on May 8, 2025, the Board approved an additional $16 million, bringing the total authorization to $78 million. The program runs through August 28, 2025. As of May 12, 2025, the Company has repurchased approximately 3.7 million of its Class A ordinary shares for $61.8 million.

Under the share repurchase program, the Company may purchase its ordinary shares through various means, including open market transactions, privately negotiated transactions, block trades, any combination thereof or other legally permissible means. The Company may effect repurchase transactions in compliance with Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The number of shares repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with the Company’s working capital requirements, general business conditions and other factors.

Conference Call

The Company will host a conference call to discuss its financial results at 6:30 pm U.S. Eastern Time on May 12, 2025. Participants who wish to join the call should pre-register here at https://s1.c-conf.com/diamondpass/10046996-fh4na1.html. Upon registration, participants will receive the dial-in number and a unique PIN, which can be used to join the conference call. If participants register and forget their PIN or lose their registration confirmation email, they may re-register to receive a new PIN. All participants are encouraged to dial in 15 minutes prior to the start time.

A live and archived webcast of the conference call will be accessible on the Company’s investor relations website at: https://investors.gigacloudtech.com/.

About GigaCloud Technology Inc

GigaCloud Technology Inc is a pioneer of global end-to-end B2B technology solutions for large parcel merchandise. The Company’s B2B ecommerce platform, which it refers to as the “GigaCloud Marketplace,” integrates everything from discovery, payments and logistics tools into one easy-to-use platform. The Company’s global marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the U.S., Asia and Europe, to execute cross-border transactions with confidence, speed and efficiency. The Company offers a truly comprehensive solution that transports products from the manufacturer’s warehouse to the end customer’s doorstep, all at one fixed price. The Company first launched its marketplace in January 2019 by focusing on the global furniture market and has since expanded into additional categories such as home appliances and fitness equipment. For more information, please visit the Company’s website: https://investors.gigacloudtech.com/.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EPS – diluted, to understand and evaluate its core operating performance. Adjusted EBITDA is net income excluding interest, income taxes and depreciation, further adjusted to exclude share-based compensation expense. Adjusted EPS – diluted is a financial measure defined as our Adjusted EBITDA divided by our diluted weighted-average shares outstanding, respectively. Management uses Adjusted EBITDA and Adjusted EPS – diluted as measures of operating performance, for planning purposes, to allocate resources to enhance the financial performance of our business, to evaluate the effectiveness of our business strategies and in communications with our Board of Directors and investors concerning our financial performance. Non-GAAP financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.

For more information on the non-GAAP financial measures, please see the tables captioned “Unaudited Reconciliation of Adjusted EBITDA” and “Unaudited Reconciliation of Adjusted EPS – diluted” set forth at the end of this press release.

Forward-Looking Statements

This press release contains “forward-looking statements”. Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For investor and media inquiries, please contact:

GigaCloud Technology Inc

Investor Relations

Email: ir@gigacloudtech.com

PondelWilkinson, Inc.

Laurie Berman (Investors) – lberman@pondel.com

George Medici (Media) – gmedici@pondel.com


GigaCloud Technology Inc UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands except for share data and per share data)

	March 31, 2025		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	251,711	$	259,759
Restricted cash		697		685
Investments		35,101		42,674
Accounts receivable, net		67,000		57,313
Inventories		204,854		172,489
Prepayments and other current assets		19,842		14,672
Total current assets		579,205		547,592
Non-current assets
Operating lease right-of-use assets		438,692		451,930
Property and equipment, net		32,688		29,498
Intangible assets, net		5,893		6,198
Goodwill		12,586		12,586
Deferred tax assets		11,366		10,026
Other non-current assets		10,607		12,645
Total non-current assets		511,832		522,883
Total assets	$	1,091,037	$	1,070,475


GigaCloud Technology Inc UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (continued) (In thousands)

	March 31, 2025		December 31, 2024
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	87,814	$	78,163
Contract liabilities		5,665		4,486
Current operating lease liabilities		90,823		88,521
Income tax payable		20,001		13,615
Accrued expenses and other current liabilities		87,510		79,594
Total current liabilities		291,813		264,379
Non-current liabilities
Operating lease liabilities, non-current		380,842		395,235
Deferred tax liabilities		759		941
Finance lease obligations, non-current		241		382
Non-current income tax payable		4,485		4,321
Total non-current liabilities		386,327		400,879
Total liabilities	$	678,140	$	665,258
Commitments and contingencies	$	—	$	—

Shareholders’ equity
Treasury shares, at cost (2,008,984 and 609,390 shares held as of March 31, 2025 and December 31, 2024, respectively)	$	(34,550	)	$	(11,816	)
Class A ordinary shares $0.05 par value, 50,673,268 shares authorized, 32,881,519 and 32,878,735 shares issued as of March 31, 2025 and December 31, 2024, respectively, 30,872,535 and 32,269,345 shares outstanding as of March 31, 2025 and December 31, 2024, respectively)		1,643			1,643
Class B ordinary shares ($0.05 par value, 9,326,732 shares authorized as of March 31, 2025 and December 31, 2024, 8,076,732 shares issued and outstanding as of March 31, 2025 and December 31, 2024)		403			403
Additional paid-in capital		121,490			120,262
Accumulated other comprehensive loss		(2,096	)		(4,136	)
Retained earnings		326,007			298,861
Total shareholders’ equity		412,897			405,217
Total liabilities and shareholders’ equity	$	1,091,037		$	1,070,475


GigaCloud Technology Inc UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands except for share data and per share data)

	Three Months Ended March 31,
		2025			2024
Revenues
Service revenues	$	94,068		$	76,623
Product revenues		177,838			174,454
Total revenues		271,906			251,077
Cost of revenues
Services		79,156			62,700
Products		129,024			121,829
Total cost of revenues		208,180			184,529
Gross profit		63,726			66,548
Operating expenses
Selling and marketing expenses		18,558			14,580
General and administrative expenses		14,340			15,389
Research and development expenses		2,493			1,756
Losses on disposal of property and equipment		12			6
Total operating expenses		35,403			31,731
Operating income		28,323			34,817
Interest expense		(23	)		(81	)
Interest income		2,621			1,609
Foreign currency exchange gains (losses), net		792			(2,709	)
Government grants		213			6
Others, net		579			(322	)
Income before income taxes		32,505			33,320
Income tax expense		(5,359	)		(6,125	)
Net income	$	27,146		$	27,195
Net income attributable to ordinary shareholders		27,146			27,195
Foreign currency translation adjustment, net of income taxes of nil		411			(112	)
Net unrealized loss on available-for-sale investments		(6	)		—
Intra-entity foreign currency transactions gain		1,636			—
Release of foreign currency translation reserve related to liquidation of subsidiaries		(1	)		—
Total other comprehensive income (loss)		2,040			(112	)
Comprehensive Income	$	29,186		$	27,083
Net income per ordinary share
—Basic	$	0.68		$	0.67
—Diluted	$	0.68		$	0.66
Weighted average number of ordinary shares outstanding used in computing net income per ordinary share
—Basic		40,020,265			40,788,658
—Diluted		40,138,522			40,950,170


GigaCloud Technology Inc UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

	Three Months Ended March 31,
		2025			2024
Cash flows from operating activities:
Net income	$	27,146		$	27,195
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,049			2,081
Share-based compensation		1,227			275
Operating lease		1,125			8,806
Changes in accounts receivables, net		(9,011	)		(632	)
Changes in inventories		(30,845	)		(56,047	)
Changes in prepayments and other assets		(3,217	)		(2,364	)
Changes in accounts payable, accrued expenses and other current liabilities		14,551			27,886
Changes in contract liabilities		1,096			2,045
Changes in income tax payable		6,418			6,552
Changes in deferred income taxes		(1,511	)		(2,034	)
Other operating activities		405			1,546
Net cash provided by operating activities		9,433			15,309
Cash flows from investing activities:
Purchases of property and equipment		(2,395	)		(3,993	)
Disposals of property and equipment		34			1,525
Purchases of investments		(25,000	)		(10,000	)
Sales and maturities of investments		31,986			—
Net cash provided by (used in) investing activities		4,625			(12,468	)
Cash flows from financing activities:
Repayment of finance lease obligations		(34	)		(595	)
Repurchases of ordinary shares		(22,734	)		—
Net cash used in financing activities		(22,768	)		(595	)
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash		674			(306	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(8,036	)		1,940
Cash, cash equivalents and restricted cash at the beginning of the period		260,444			184,168
Cash, cash equivalents and restricted cash at the end of the period	$	252,408		$	186,108
Supplemental disclosure of cash flow information
Cash paid for interest expense		23			81
Cash paid for income taxes		552			1,596


GigaCloud Technology Inc UNAUDITED RECONCILIATION OF ADJUSTED EBITDA (In thousands, except for per share data)

	Three Months Ended March 31,
		2025			2024
	(In thousands)
Net Income	$	27,146		$	27,195
Add: Income tax expense		5,359			6,125
Add: Interest expense		23			81
Less: Interest income		(2,621	)		(1,609	)
Add: Depreciation and amortization		2,049			2,081
Add: Share-based compensation expenses		1,227			275
Add: Non-recurring items⁽¹⁾		—			349
Adjusted EBITDA	$	33,183		$	34,497

________________________
(1) During the three months ended March 31, 2024, one of our fulfillment centers in Japan experienced a fire. As a result of the fire, we recognized losses of $1.8 million. Based on the provisions of our insurance policy, we have determined that partial recovery of the incurred losses is probable as of March 31, 2024 and therefore recorded an insurance recovery of $1.5 million. We do not believe such losses to be recurring or frequent in nature.

UNAUDITED RECONCILIATION OF ADJUSTED EPS – DILUTED

	Three Months Ended March 31,
		2025			2024
Net income per ordinary share – diluted	$	0.68		$	0.66
Adjustments, per ordinary share:
Add: Income tax expense		0.13			0.15
Add: Interest expense		—			—
Less: Interest income		(0.07	)		(0.04	)
Add: Depreciation and amortization		0.05			0.05
Add: Share-based compensation expenses		0.04			0.01
Add: Non-recurring items⁽¹⁾		—			0.01
Adjusted EPS – diluted	$	0.83		$	0.84

Weighted average number of ordinary shares outstanding – diluted		40,138,522			40,950,170

________________________
(1) During the three months ended March 31, 2024, one of our fulfillment centers in Japan experienced a fire. As a result of the fire, we recognized losses of $1.8 million. Based on the provisions of our insurance policy, we have determined that partial recovery of the incurred losses is probable as of March 31, 2024 and therefore recorded an insurance recovery of $1.5 million. We do not believe such losses to be recurring or frequent in nature.

________________________
¹ Adjusted EBITDA is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measure” and the table captioned “Unaudited Reconciliation of Adjusted EBITDA” set forth at the end of this press release.

² Adjusted EPS – diluted is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measure” and the table captioned “Unaudited Reconciliation of Adjusted EPS – diluted” set forth at the end of this press release.

³ GigaCloud Marketplace GMV means the total gross merchandise value of transactions ordered through our GigaCloud Marketplace including GigaCloud 3P and GigaCloud 1P, before any deductions of value added tax, goods and services tax, shipping charges paid by buyers to sellers and any refunds.

⁴ 3P seller GigaCloud Marketplace GMV means the total gross merchandise value of transactions sold through our GigaCloud Marketplace by 3P sellers, before any deductions of value added tax, goods and services tax, shipping charges paid by buyers to sellers and any refunds.

⁵ Active 3P sellers means sellers who have sold a product in GigaCloud Marketplace within the last 12-month period, irrespective of cancellations or returns.

⁶ Active buyers means buyers who have purchased a product in the GigaCloud Marketplace within the last 12-month period, irrespective of cancellations or returns.

⁷ Spend per active buyer is calculated by dividing the total GigaCloud Marketplace GMV within the last 12-month period by the number of active buyers as of such date.

The MIL Network –

May 13, 2025

MIL-OSI: PennantPark Floating Rate Capital Ltd. Announces Financial Results for the Second Quarter Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

MIAMI, May 12, 2025 (GLOBE NEWSWIRE) — PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) announced today its financial results for the second quarter ended March 31, 2025.

HIGHLIGHTS Quarter ended March 31, 2025 (Unaudited) ($ in millions, except per share amounts)

Assets and Liabilities:
Investment portfolio ⁽¹⁾	$	2,344.1
Net assets	$	1,067.1
GAAP net asset value per share	$	11.07
Quarterly change in GAAP net asset value per share		(2.4	)%
Adjusted net asset value per share ⁽²⁾	$	11.07
Quarterly change in adjusted net asset value per share ⁽²⁾		(2.4	)%

Credit Facility	$	273.8
2036 Asset-Backed Debt	$	284.4
2036-R Asset-Backed Debt	$	265.3
2026 Notes	$	184.2
2037 Asset-Backed Debt	$	358.1
Regulatory debt to equity	1.29x
Weighted average yield on debt investments at quarter-end		10.5	%

Operating Results:
Net investment income	$	25.0
Net investment income per share (GAAP)	$	0.28
Core net investment income per share ⁽³⁾	$	0.28
Distributions declared per share	$	0.31

Portfolio Activity:
Purchases of investments	$	293.3
Sales and repayments of investments	$	122.4

PSSL Portfolio data:
PSSL investment portfolio	$	1,060.2
Purchases of investments	$	60.0
Sales and repayments of investments	$	36.8

(1) Includes investments in PennantPark Senior Secured Loan Fund I LLC, or PSSL, an unconsolidated joint venture, totaling $297.3 million, at fair value.

(2) This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company’s financial performance excluding the impact of the unrealized amounts on the Credit Facility. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

(3) Core net investment income (“Core NII”) is a non-GAAP financial measure. The Company believes that Core NII provides useful information to investors and management because it reflects the Company’s financial performance excluding one-time or non-recurring investment income and expenses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. For the quarter ended March 31, 2025, Core NII excluded: i) $0.4m of credit facility amendment costs and ii) $0.1m of incentive fee expense offset.

CONFERENCE CALL AT 9:00 A.M. ET ON May 13, 2025

PennantPark Floating Rate Capital Ltd. (“we”, “our”, “us”, or the “Company”) will also host a conference call at 9:00 a.m. (Eastern Time) on Tuesday May 13, 2025 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (888) 394-8218 approximately 5-10 minutes prior to the call. International callers should dial (929) 477-0402. All callers should reference conference ID #6661250 or PennantPark Floating Rate Capital Ltd. An archived replay will also be available on a webcast link located on the Quarterly Earnings page in the Investor section of PennantPark’s website.

PORTFOLIO AND INVESTMENT ACTIVITY

“We are pleased that we significantly increased our financial strength during the quarter. A lower cost credit facility, a new low cost long term securitization, new low cost securitization at our PSSL JV and additional equity capital at PFLT have positioned us well to take advantage of the upcoming attractive vintage of new loans,” said Art Penn, Chairman and CEO. “Additionally, we are pleased that our senior secured loan portfolio, with among the lowest portfolio company leverage and most meaningful covenants in the industry, is positioned defensively and continues to perform well.”

As of March 31, 2025, our portfolio totaled $2,344.1 million, and consisted of $2,100.2 million of first lien secured debt (including $237.7 million in PSSL), $4.4 million of subordinated debt and $239.5 million of preferred and common equity (including $59.6 million in PSSL). Our debt portfolio consisted of approximately 100% variable-rate investments. As of March 31, 2025, we had four portfolio companies on non-accrual, representing 2.2% and 1.2% of our overall portfolio on a cost and fair value basis, respectively. As of March 31, 2025, the portfolio had net unrealized depreciation of $61.2 million. Our overall portfolio consisted of 159 companies with an average investment size of $14.7 million and had a weighted average yield on debt investments of 10.5%.

As of September 30, 2024, our portfolio totaled $1,983.5 million and consisted of $1,746.7 million of first lien secured debt (including $237.7 million in PSSL), $2.7 million of second lien secured debt and subordinated debt and $234.1 million of preferred and common equity (including $56.5 million in PSSL). Our debt portfolio consisted of approximately 100% variable-rate investments. As of September 30, 2024, we had two portfolio companies on non-accrual, representing 0.4% and 0.2% of our overall portfolio on a cost and fair value basis, respectively. As of September 30, 2024, the portfolio had net unrealized depreciation of $11.4 million. Our overall portfolio consisted of 158 companies with an average investment size of $12.6 million, and a weighted average yield on debt investments of 11.5%.

For the three months ended March 31, 2025, we invested $293.3 million in three new and 54 existing portfolio companies at a weighted average yield on debt investments of 9.9%. Sales and repayments of investments for the same period totaled $122.4 million including $52.9 million of sales to PSSL. For the six months ended March 31, 2025, we invested $900.2 million in 14 new and 96 existing portfolio companies with a weighted average yield on debt investments of 10.2%. Sales and repayments of investments for the same period totaled $523.7 million, including $240.6 million of sales to PSSL.

For the three months ended March 31, 2024, we invested $338.3 million in 11 new and 48 existing portfolio companies at a weighted average yield on debt investments of 11.6%. For the three months ended March 31, 2024, sales and repayments of investments totaled $144.8 million, including $77.2 million of sales to PSSL. For the six months ended March 31, 2024, we invested $640.9 million in 24 new and 64 existing portfolio companies at a weighted average yield on debt investments of 11.8%. For the six months ended March 31, 2024, sales and repayments of investments totaled $248.7 million, including $139.9 million of sales to PSSL.

PennantPark Senior Secured Loan Fund I LLC

As of March 31, 2025, PSSL’s portfolio totaled $1,060.2 million, consisted of 118 companies with an average investment size of $9.0 million and had a weighted average yield on debt investments of 10.5%. As of September 30, 2024, PSSL’s portfolio totaled $913.3 million, consisted of 109 companies with an average investment size of $8.4 million and had a weighted average yield on debt investments of 11.4%.

For the three months ended March 31, 2025, PSSL invested $60.0 million (including $52.9 million purchase from the Company) in four new and five existing portfolio companies with a weighted average yield on debt investments of 9.8%. PSSL’s sales and repayments of investments for the same period totaled $36.8 million. For the six months ended March 31, 2025, PSSL invested $284.9 million (including $240.6 million purchased from the Company) in 21 new and 12 existing portfolio companies with a weighted average yield on debt investments of 10.2%. PSSL’s sales and repayments of investments for the same period totaled $123.4 million.

For the three months ended March 31, 2024, PSSL invested $80.1 million (including $77.2 million purchased from the Company) in six new and four existing portfolio companies at a weighted average yield on debt investments of 11.6%. Sales and repayments of investments for the three months ended March 31, 2024 totaled $49.5 million. For the six months ended March 31, 2024, PSSL invested $155.9 million (including $139.9 million purchased from the Company) in 10 new and 11 existing portfolio companies at a weighted average yield on debt investments of 11.9%. Sales and repayments of investments for the six months ended March 31, 2024 totaled $77.2 million.

RESULTS OF OPERATIONS

Set forth below are the results of operations for the three and six months ended March 31, 2025 and 2024.

Investment Income

For the three and six months ended March 31, 2025 investment income was $61.9 million and $128.9 million, respectively, which was attributable to $56.2 million and $117.2 million from first lien secured debt and $5.7 million and $11.7 million from other investments, respectively. For the three and six months ended March 31, 2024, investment income was $44.4 million and $82.3 million, respectively, which was attributable to $39.0 million and $72.2 million from first lien secured debt and $5.4 million and $10.1 million from other investments, respectively. The increase in investment income for the three and six months ended March 31, 2025, was primarily due to the increase in the size of the debt portfolio.

Expenses

For the three and six months ended March 31, 2025, expenses totaled $36.9 million and $74.0 million, respectively and were comprised of: $22.5 million and $44.9 million of debt related interest and expenses, $5.6 million and $10.9 million of base management fees, $6.3 million and $13.8 million of performance-based incentive fees, $1.9 million and $3.6 million of general and administrative expenses, $0.2 million and $0.5 million of taxes and $0.4 million and $0.4 million in Credit Facility amendment costs. For the three and six months ended March 31, 2024, expenses totaled $25.3 million and $43.8 million, respectively and were comprised of: $14.7 million and $23.6 million of debt related interest and expenses, $3.4 million and $6.4 million of base management fees, $4.8 million and $9.6 million of performance-based incentive fees, $1.8 million and $3.5 million of general and administrative expenses and $0.5 million and $0.7 million of taxes. The increase in expenses for the three and six months ended March 31, 2025, was primarily due to the increase in interest expense from increased borrowings and an increase in base management fees and incentive fee as a result of the increase in our investment portfolio.

Net Investment Income

For the three and six months ended March 31, 2025 net investment income totaled $25.0 million or $0.28 per share, and $55.0 million or $0.64 per share, respectively. For the three and six months ended March 31, 2024, net investment income totaled $19.1 million or $0.31 per share, and $38.5 million or $0.64 per share, respectively. The increase in net investment income for the three and six months ended March 31, 2025, was primarily due to an increase in investment income partially offset by an increase in expenses.

Net Realized Gains or Losses

For the three and six months ended March 31, 2025 net realized gains (losses) totaled $(3.5) million and $23.1 million, respectively. For the three and six months ended March 31, 2024, net realized gains (losses) totaled $4.0 million and $0.9 million, respectively. The change in net realized gains (losses) was primarily due to changes in the market conditions of our investments and the values at which they were realized.

Unrealized Appreciation or Depreciation on Investments and Debt

For the three and six months ended March 31, 2025 we reported net change in unrealized appreciation (depreciation) on investments of $(20.8) million and $(49.7) million, respectively. For the three and six months ended March 31, 2024, we reported net change in unrealized appreciation (depreciation) on investments of $7.7 million and $13.9 million, respectively. As of March 31, 2025 and September 30, 2024, our net unrealized appreciation (depreciation) on investments totaled $(61.2) million and $(11.4) million, respectively. The net change in unrealized appreciation (depreciation) on our investments was primarily due to the operating performance of the portfolio companies within our portfolio, changes in the capital market conditions of our investments and realization of investments.

For the three and six months ended March 31, 2025, our Credit Facility had a net change in unrealized appreciation (depreciation) of less than $0.1 million and $0.1 million, respectively. For the three and six months ended March 31, 2024, our Credit Facility had a net change in unrealized appreciation (depreciation) of less than $0.1 million and ($0.1) million, respectively. As of March 31, 2025 and September 30, 2024, the net unrealized appreciation (depreciation) on the Credit Facility totaled approximately $0.1 million and zero, respectively. The net change in net unrealized (appreciation) or depreciation was primarily due to changes in the capital markets.

Net Change in Net Assets Resulting from Operations

For the three and six months ended March 31, 2025, net increase (decrease) in net assets resulting from operations totaled $1.2 million or $0.01 per share and $29.6 million or $0.34 per share, respectively. For the three and six months ended March 31, 2024, net increase (decrease) in net assets resulting from operations totaled $31.1 million or $0.51 per share and $53.6 million, or $0.89 per share, respectively. The net increase or (decrease) from operations for the three and six months ended March 31, 2025, was primarily due to operating performance of our portfolio and changes in capital market conditions of our investments along with change in size and cost yield of our debt portfolio and costs of financing.

LIQUIDITY AND CAPITAL RESOURCES

Our liquidity and capital resources are derived primarily from cash flows from operations, including income earned, proceeds from investment sales and repayments, and proceeds of securities offerings and debt financings. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from our portfolio and proceeds from public and private offerings of securities to finance our investment objectives and operations.

In February 2025 the Company, through the 2037 Securitization Issuer, completed a $474.6 million term debt securitization of which we retained $85.1 million of subordinated notes and $28.5 million of BBB-(sf) Class D Notes of the debt securitization. The weighted average credit spread is 1.59%. This 2037 Asset-Backed Debt is scheduled to mature on April 20, 2037.

For the six months ended March 31, 2025 and 2024, the annualized weighted average cost of debt, inclusive of the fee on the undrawn commitment on the Credit Facility, amendment costs and debt issuance costs, was 6.8% and 7.1%, respectively. As of March 31, 2025 and September 30, 2024, we had $462.1 million and $192.1 million of unused borrowing capacity under the Credit Facility, respectively, subject to leverage and borrowing base restrictions.

As of March 31, 2025 and September 30, 2024, we had cash equivalents of $111.4 million and $112.1 million, respectively, available for investing and general corporate purposes. We believe our liquidity and capital resources are sufficient to take advantage of market opportunities.

During the three and six months ended March 31, 2025 we issued 11,562,000 shares and 18,838,000 shares of our common stock through the 2024 ATM Program, respectively at an average price of $11.34 per share and $11.35 per share raising $131.0 million and $213.2 million of net proceeds after commissions to the Sales Agents and inclusive of proceeds from the Investment Adviser to ensure that all shares were sold at or above NAV, respectively. During the three and six months ended March 31, 2024, we issued 4,493,436 shares of common stock through the 2022 ATM Program at an average price of $11.35 per share, raising $51.0 million of net proceeds after commissions to the Sales Agents and inclusive of proceeds from the Investment Adviser to ensure that all shares were sold at or above NAV, respectively.

For the six months ended March 31, 2025, our operating activities used cash of $350.8 million and our financing activities provided cash of $350.1 million. Our operating activities used cash primarily due to our investment activities and our financing activities provided cash primarily due to borrowings under our Credit Facility, proceeds from the 2037 Asset-Backed debt and proceeds from the public offerings under our 2024 ATM Program.

For the six months ended March 31, 2024, our operating activities used cash of $354.5 million and our financing activities provided cash of $379.2 million. Our operating activities used cash primarily due to our investment activities and our financing activities provided cash primarily due to borrowings under the Credit Facility and proceeds from the 2036 Asset-Backed debt partially offset by the repayment of the 2023 Notes.

DISTRIBUTIONS

During the three and six months ended March 31, 2025 we declared distributions of $0.3075 and $0.615 per share for total distributions of $27.7 million and $52.9 million, respectively. During the three and six months ended March 31, 2024, we declared distributions of $0.3075 and $0.615 per share for total distributions of $18.8 million and $36.9 million, respectively. We monitor available net investment income to determine if a return of capital for tax purposes may occur for the fiscal year. To the extent our taxable earnings fall below the total amount of our distributions for any given fiscal year, stockholders will be notified of the portion of those distributions deemed to be a tax return of capital. Tax characteristics of all distributions will be reported to stockholders subject to information reporting on Form 1099-DIV after the end of each calendar year and in our periodic reports filed with the SEC.

RECENT DEVELOPMENTS

In April 2025, PennantPark Floating Rate Capital Ltd. amended its credit facility agreement led by Truist Bank. As part of the amendment, the Company pricing decreased to SOFR plus 200 basis points from SOFR plus 225 basis points, the reinvestment period was extended one year to August 2028, the maturity date was extended one year to August 2030, and the maximum first lien advance rate was increased to 72.5% from 70.0%. As part of this amendment, commitments decreased from $736 million to $718 million.

In April 2025, PSSL through its wholly-owned and consolidated subsidiary, PennantPark CLO 12, LLC closed a four year reinvestment period, twelve-year final maturity $301 million debt securitization in the form of a collateralized loan obligation. The debt in this securitization is structured in the following manner: (i) $30.0 million of Class A-1 Loans, which bear interest at three-month SOFR plus 1.45%, (ii) $141.0 million of Class A-1 Notes,which bear interest at three-month SOFR plus 1.45%, (iii) $12.0 million of Class A-2 Notes, which bear interest at a three-month SOFR plus 1.60%, (iv) $21.0 million of Class B notes, which bears interest at three-month SOFR plus 1.85%, (v) $24.0 million of Class C notes, which bears interest at three-month SOFR plus 2.30%, (vi) $18.0 million Class D notes, which bears interest at three-month SOFR plus 3.30%, (vii) $55.0 million of Sub notes. The weighted average credit spread is 1.71%. PSSL will continue to retain all of the subordinated notes through a consolidated subsidiary. The reinvestment period for the term debt securitization ends in April 2029 and the debt is scheduled to mature in April 2037. The term debt securitization is expected to be approximately 100% funded at close. The proceeds from the debt will be used to repay a portion of PSSL’s $325 million secured credit facility.

AVAILABLE INFORMATION

The Company makes available on its website its Quarterly Report on Form 10-Q filed with the SEC, and stockholders may find such report on its website at www.pennantpark.com.

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except per share data)

	March 31, 2025			September 30, 2024
	(unaudited)
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost— $2,043,844 and $1,622,669, respectively)	$	2,046,762		$	1,632,269
Controlled, affiliated investments (amortized cost— $361,375 and $372,271, respectively)		297,290			351,235
Total investments (amortized cost— $2,405,219 and $1,994,940, respectively)		2,344,052			1,983,504
Cash and cash equivalents (cost— $111,368 and $112,046, respectively)		111,358			112,050
Interest receivable		11,094			12,167
Receivables from investments sold		2,048			—
Distributions receivable		946			635
Due from affiliate		82			291
Prepaid expenses and other assets		2,268			198
Total assets		2,471,848			2,108,845
Liabilities
Credit Facility payable, at fair value (cost— $273,855 and $443,855, respectively)		273,790			443,880
2026 Notes payable, net (par—$185,000)		184,220			183,832
2036 Asset-Backed Debt, net (par—$287,000)		284,357			284,086
2036-R Asset-Backed Debt, net (par-$266,000)		265,300			265,235
2037 Asset-Backed Debt, net (par— $361,000)		358,083			—
Payable for investments purchased		—			20,363
Interest payable on debt		15,202			14,645
Distributions payable		9,627			7,834
Base management fee payable		5,604			4,588
Incentive fee payable		6,258			3,189
Accounts payable and accrued expenses		1,664			2,187
Deferred tax liability		612			1,712
Total liabilities		1,404,717			1,231,551
Net assets
Common stock, 96,417,896 and 77,579,896 shares issued and outstanding, respectively Par value $0.001 per share and 200,000,000 shares authorized		96			78
Paid-in capital in excess of par value		1,189,888			976,744
Accumulated deficit		(122,853	)		(99,528	)
Total net assets	$	1,067,131		$	877,294
Total liabilities and net assets	$	2,471,848		$	2,108,845
Net asset value per share	$	11.07		$	11.31

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited)

	Three Months Ended March 31,					Six months Ended March 31,
	2025			2024		2025			2024
Investment income:
From non-controlled, non-affiliated investments:
Interest	$	49,215		$	30,470	$	96,678		$	54,238
Dividend		369			577		946			1,085
Other income		634			1,268		2,114			3,031
From controlled, affiliated investments:
Interest		7,345			8,320		20,153			16,754
Dividend		4,375			3,719		8,750			7,219
Other income		—			—		306			—
Total investment income		61,938			44,354		128,947			82,327
Expenses:
Interest and expenses on debt		22,529			14,688		44,890			23,630
Performance-based incentive fee		6,258			4,767		13,750			9,630
Base management fee		5,604			3,424		10,868			6,375
General and administrative expenses		1,200			1,255		2,400			2,243
Administrative services expenses		650			585		1,150			1,211
Expenses before amendment costs and provision for taxes		36,241			24,719		73,058			43,089
Provision for taxes on net investment income		225			547		450			701
Credit Facility amendment costs		442			—		442			—
Total expenses		36,908			25,266		73,950			43,790
Net investment income		25,030			19,088		54,997			38,537
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on:
Non-controlled, non-affiliated investments		(795	)		4,010		386			921
Non-controlled and controlled, affiliated investments		(2,682	)		—		22,811			—
Provision for taxes on realized gain (loss) on investments		(21	)		—		(94	)		—
Net realized gain (loss) on investments		(3,498	)		4,010		23,103			921
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments		(9,630	)		3,278		(6,688	)		8,506
Controlled and non-controlled, affiliated investments		(11,146	)		4,466		(43,050	)		5,408
Provision for taxes on unrealized appreciation (depreciation) on investments		468			230		1,100			230
Debt appreciation (depreciation)		1			39		91			(23	)
Net change in unrealized appreciation (depreciation) on investments and debt		(20,307	)		8,013		(48,547	)		14,121
Net realized and unrealized gain (loss) from investments and debt		(23,805	)		12,023		(25,444	)		15,042
Net increase (decrease) in net assets resulting from operations	$	1,225		$	31,111	$	29,553		$	53,579
Net increase (decrease) in net assets resulting from operations per common share	$	0.01		$	0.51	$	0.34		$	0.89
Net investment income per common share	$	0.28		$	0.31	$	0.64		$	0.64

ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD.

PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market companies in the form of floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt. From time to time, the Company may also invest in equity investments. PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC.

ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC

PennantPark Investment Advisers, LLC is a leading middle-market credit platform, managing approximately $10 billion of investable capital, including potential leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC has provided investors access to middle-market credit by offering private equity firms and their portfolio companies as well as other middle-market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark Investment Advisers, LLC is headquartered in Miami and has offices in New York, Chicago, Houston, Los Angeles, and Amsterdam.

FORWARD-LOOKING STATEMENTS AND OTHER

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results, and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Floating Rate Capital Ltd. undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.

We may use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations.

The information contained herein is based on current tax laws, which may change in the future. The Company cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.

CONTACT:	Richard T. Allorto, Jr.
	PennantPark Floating Rate Capital Ltd.
	(212) 905-1000
	www.pennantpark.com

The MIL Network –

May 13, 2025

MIL-OSI: Middlefield Banc Corp. Announces 2025 Second-Quarter Cash Dividend Payment

Source: GlobeNewswire (MIL-OSI)

MIDDLEFIELD, Ohio, May 12, 2025 (GLOBE NEWSWIRE) — Middlefield Banc Corp. (NASDAQ: MBCN) today announced that its Board of Directors declared a quarterly cash dividend of $0.21 per common share. The 2025 second-quarter dividend is payable on June 13, 2025, to shareholders of record on May 30, 2025.

About Middlefield Banc Corp.
Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the Bank holding Company of The Middlefield Banking Company, with total assets of $1.89 billion at March 31, 2025. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.

Additional information is available at www.middlefieldbank.bank

This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Middlefield Banc Corp. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Middlefield Banc Corp.’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged; (6) technological issues which may adversely affect Middlefield Banc Corp.’s financial operations or customers; (7) changes in the securities markets; or (8) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.

Company Contact:	Investor and Media Contact:
Ron Zimmerly President and Chief Executive Officer Middlefield Banc Corp. (419) 673-1217 RZimmerly@middlefieldbank.com	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

The MIL Network –

May 13, 2025

MIL-OSI: Runway Growth Finance Corp. Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Delivered Total and Net Investment Income of $35.4 million and $15.6 million, Respectively

Investment Portfolio of $1.0 billion

Conference Call Today, Monday, May 12, 2025 at 5:00 p.m. ET

MENLO PARK, Calif., May 12, 2025 (GLOBE NEWSWIRE) — Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth” or the “Company”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced its financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Highlights

Total investment income of $35.4 million
Net investment income of $15.6 million, or $0.42 per share
Net asset value of $503.3 million, or $13.48 per share
Dollar-weighted annualized yield on debt investments of 15.44%
Three investments completed in existing portfolio companies, representing $50.7 million in funded investments
Aggregate proceeds of $71.9 million in principal prepayments and $3.7 million from scheduled amortization
Aggregate proceeds of $38.1 million in equity sale proceeds, resulting in net realized gains of $7.4 million
Total net realized gains on investments of $6.1 million

Second Quarter 2025 Distributions

Declared second quarter 2025 regular dividend of $0.33 per share
Declared second quarter 2025 supplemental dividend of $0.02 per share

“In the first quarter of 2025, Runway Growth advanced its platform strategy, enhancing origination channels as we seek to maximize our portfolio,” said David Spreng, Founder and CEO of Runway Growth. “For the first quarter, we delivered net investment income of $15.6 million, comfortably covered our quarterly distributions, and executed on three investments in existing portfolio companies. As officially part of the broader BC Partners platform, we believe we have ample liquidity to move both opportunistically and selectively when the right investments arise. Looking ahead, we are well positioned to optimize our portfolio while maintaining credit-first underwriting practices as we deliver strong returns for our shareholders.”

First Quarter 2025 Operating Results

Total investment income for the quarter ended March 31, 2025 was $35.4 million, compared to $40.0 million for the quarter ended March 31, 2024.

Net investment income for the quarter ended March 31, 2025 was $15.6 million, or $0.42 per share, compared to $18.7 million, or $0.46 per share, for the quarter ended March 31, 2024.

The Company’s dollar-weighted annualized yield on average debt investments for the quarter ended March 31, 2025 was 15.4%. The Company calculates the yield on dollar-weighted debt investments for any period measured as (1) total investment-related income during the period divided by (2) the daily average of the fair value of debt investments, including investments on non-accrual status, outstanding during the period.

Total operating expenses for the quarter ended March 31, 2025 were $19.8 million, compared to $21.3 million for the quarter ended March 31, 2024.

Net realized gain on investments was $6.1 million for the quarter ended March 31, 2025, compared to no net realized gains or losses for the quarter ended March 31, 2024.

For the quarter ended March 31, 2025, net change in unrealized loss on investments was $19.8 million, compared to a net change in unrealized loss on investments of $6.6 million for the comparable prior year period.

Portfolio and Investment Activity

As of March 31, 2025, Runway Growth’s investment portfolio had an aggregate fair value of $1.0 billion in 52 companies, comprising $946.4 million in term loans, 97.9% of which are senior secured loans, and $57.8 million in warrants and other equity-related investments.

During the first quarter of 2025, Runway Growth funded three investments in existing portfolio companies, representing $15.3 million in funded loans, which is net of refinances of $35.0 million and upfront loan origination fees of $0.4 million.

Total portfolio investment activity for the three months ended March 31, 2025 and 2024 was as follows:


	Three Months Ended March 31,

	2025			2024
Beginning investment portfolio	$	1,076,840		$	1,067,009
Purchases of investments		15,320			24,642
PIK interest		3,260			4,176
Sales and prepayments of investments		(74,978	)		(34,449	)
Scheduled repayments of investments		(3,665	)		(413	)
Sales and maturities of U.S. Treasury Bills		–			(42,029	)
Amortization of fixed income premiums or accretion of discounts		1,189			4,013
Net realized gain (loss) on investments		6,057			–
Net change in unrealized gain (loss) on investments		(19,790	)		(6,617	)
Ending investment portfolio	$	1,004,233		$	1,016,332

Net Asset Value

As of March 31, 2025, net asset value per share was $13.48, compared to $13.36 as of March 31, 2024. Total net assets at the end of the first quarter of 2025 was $503.3 million, down 4.9% from $529.5 million as of March 31, 2024.

For the quarter ended March 31, 2025, our net increase in net assets resulting from operations was $1.9 million, or $0.05 per share, compared to a net increase in net assets resulting from operations of $12.0 million, or $0.30 per share, for the quarter ended March 31, 2024.

Liquidity and Capital Resources

As of March 31, 2025, the Company had approximately $315.4 million in available liquidity, including unrestricted cash and cash equivalents of $18.4 million and $297.0 million in available borrowing capacity under the Company’s credit facility, subject to existing terms, advance rates and regulatory and covenant requirements.

The Company ended the quarter with a core leverage ratio of approximately 99%, compared to 108% for the quarter ended December 31, 2024.

Distributions

On May 7, 2025, the Company’s board of directors (the “Board of Directors”) declared a regular quarterly distribution of $0.33 per share and a supplemental distribution of $0.02 per share for stockholders of record as of May 19, 2025, each payable on June 3, 2025.

Recent Developments

The Company evaluated events subsequent to March 31, 2025 through May 12, 2025, the date the consolidated financial statements were issued. There have been no subsequent events that occurred during such period that would require recognition or disclosure, except as disclosed below.

Borrowings

On April 7, 2025, the Company entered into the Master Note Purchase Agreement, dated April 7, 2025 (the “Note Purchase Agreement”), governing the issuance of 7.51% Series 2025A Senior Notes due April 7, 2028 (the “Series 2025A Notes”), in aggregate principal amount of $107.0 million, to institutional investors in a private placement.

The Series 2025A Notes have a fixed interest rate of 7.51% per year. The Company used the net proceeds from the offering of the Series 2025A Notes to repay outstanding indebtedness, make investments in accordance with the Company’s investment objective and investment strategy, and for other general corporate purposes of the Company.

The Series 2025A Notes will mature on April 7, 2028 unless redeemed, purchased or prepaid prior to such date by the Company in accordance with the terms of the Note Purchase Agreement. Interest on the Series 2025A Notes will be due semiannually on April 7 and October 7 of each year, beginning on October 7, 2025. In addition, the Company is obligated to offer to repay the Series 2025A Notes at par (plus accrued and unpaid interest to, but not including, the date of prepayment) if certain change in control events occur. Subject to the terms of the Note Purchase Agreement, so long as no Default or Event of Default (each as defined in the Note Purchase Agreement) shall then exist, at any time on or after October 7, 2027, the Company may, at its option, prepay all or any part of the 2025A Notes at 100% of the principal amount so prepaid, together with, in each case, accrued interest to the prepayment date.

The Note Purchase Agreement contains customary terms and conditions for senior notes issued in a private placement, including, without limitation, affirmative and negative covenants related to information reporting, maintenance of the Company’s status as a business development company within the meaning of the Investment Company Act of 1940, as amended, and a regulated investment company under the Internal Revenue Code of 1986, as amended, minimum shareholders’ equity, minimum asset coverage ratio and maximum secured debt ratio. The Note Purchase Agreement also contains customary events of default with customary cure and notice periods.

Recent Portfolio Activity

From April 1, 2025 through May 12, 2025, the Company completed $40.0 million of additional debt commitments, of which $27.0 million was funded upon closing.

Share Repurchase Program

On May 7, 2025, the Board of Directors approved a repurchase program (the “New Repurchase Program”) under which the Company may repurchase up to $25.0 million of its outstanding common stock. Under the New Repurchase Program, purchases may be made at management’s discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations. If not renewed, the New Repurchase Program will terminate upon the earlier of (i) May 7, 2026 or (ii) the repurchase of $25.0 million of the Company’s outstanding shares of common stock.

Conference Call

Runway Growth will hold a conference call to discuss its first quarter ended March 31, 2025 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Monday, May 12, 2025. To participate in the conference call or webcast, participants should register online at the Runway Investor Relations website. The earnings call can also be accessed through the following links:

A live webcast will be available in the investor section of the Company’s website, and will be archived for 90 days following the call.

About Runway Growth Finance Corp.

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

Forward-Looking Statements

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

Important Disclosures

Strategies described involve special risks that should be evaluated carefully before a decision is made to invest. Not all of the risks and other significant aspects of these strategies are discussed herein. Please see a more detailed discussion of these risk factors and other related risks in the Company’s most recent annual report on Form 10-K in the section entitled “Risk Factors”, and in the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2025, which may be obtained on the Company’s website, www.runwaygrowth.com, or the SEC’s website, www.sec.gov.

IR Contacts:

Taylor Donahue, Prosek Partners, tdonahue@prosek.com

Thomas B. Raterman, Chief Financial Officer and Chief Operating Officer, tr@runwaygrowth.com

RUNWAY GROWTH FINANCE CORP. Consolidated Statements of Assets and Liabilities (In thousands, except share and per share data)
	March 31, 2025			December 31, 2024
		(Unaudited)
Assets
Investments at fair value:
Non-control/non-affiliate investments at fair value (cost of $1,039,965 and $1,038,135, respectively)	$	997,359		$	1,005,328
Affiliate investments at fair value (cost of $4,551 and $59,198, respectively)		—			64,572
Control investments at fair value (cost of $6,550 and $6,550, respectively)		6,874			6,940
Total investments at fair value (cost of $1,051,066 and $1,103,883, respectively)		1,004,233			1,076,840
Cash and cash equivalents		18,356			5,751
Interest and fees receivable		8,730			8,141
Other assets		1,577			623
Total assets		1,032,896			1,091,355
Liabilities
Debt:
Credit facility		253,000			311,000
2026 Notes		95,000			95,000
2027 Notes		152,250			152,250
Unamortized deferred financing costs		(8,043	)		(5,918	)
Total debt, less unamortized deferred financing costs		492,207			552,332
Distributions payable		13,445			—
Incentive fees payable		14,045			14,106
Interest payable		7,656			7,743
Accrued expenses and other liabilities		2,253			2,305
Total liabilities		529,606			576,486
Net assets
Common stock, par value		373			373
Additional paid-in capital		557,992			557,992
Accumulated undistributed (overdistributed) earnings		(55,075	)		(43,496	)
Total net assets	$	503,290		$	514,869

Shares of common stock outstanding ($0.01 par value, 100,000,000 shares authorized)		37,347,428			37,347,428
Net asset value per share	$	13.48		$	13.79

RUNWAY GROWTH FINANCE CORP. Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data)

	Three Months Ended March 31,
	2025			2024
Investment income
From non-control/non-affiliate investments:
Interest income	$	30,109		$	34,455
Payment-in-kind interest income		3,651			4,207
Dividend income		318			—
Fee income		229			620
From affiliate investments:
Interest income		646			599
Fee income		256			—
Other income		189			128
Total investment income		35,398			40,009
Operating expenses
Management fees		4,009			3,952
Incentive fees		3,929			4,668
Interest and other debt financing expenses		10,287			10,860
Professional fees		454			662
Administration agreement expenses		625			564
Insurance expense		155			208
Tax expense		110			2
Other expenses		230			429
Total operating expenses		19,799			21,345
Net investment income		15,599			18,664
Net realized and net change in unrealized gain (loss) on investments
Net realized gain (loss) on non-control/non-affiliate investments		(2,886	)		—
Net realized gain (loss) on affiliate investments		8,943			—
Net realized gain (loss) on investments		6,057			—
Net change in unrealized gain (loss) on non-control/non-affiliate investments		(9,799	)		(5,065	)
Net change in unrealized gain (loss) on affiliate investments		(9,925	)		(1,552	)
Net change in unrealized gain (loss) on control investments		(66	)		—
Net change in unrealized gain (loss) on investments		(19,790	)		(6,617	)
Net realized and unrealized gain (loss) on investments		(13,733	)		(6,617	)
Net increase (decrease) in net assets resulting from operations	$	1,866		$	12,047
Net investment income per common share (basic and diluted)	$	0.42		$	0.46
Net increase (decrease) in net assets resulting from operations per common share (basic and diluted)	$	0.05		$	0.30
Weighted average shares outstanding (basic and diluted)		37,347,428			40,392,255

The MIL Network –

May 13, 2025

MIL-OSI: Rigetti Computing Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

BERKELEY, Calif., May 12, 2025 (GLOBE NEWSWIRE) — Rigetti Computing, Inc. (Nasdaq: RGTI) (“Rigetti” or the “Company”), a pioneer in full-stack quantum-classical computing, today announced its financial results for the first quarter ended March 31, 2025.

First Quarter 2025 and Recent Financial Highlights

Total revenues for the three months ended March 31, 2025 were $1.5 million
Total operating expenses for the three months ended March 31, 2025 were $22.1 million
Operating loss for the three months ended March 31, 2025 was $21.6 million
Net income for the three months ended March 31, 2025 was $42.6 million
Net income for the three months ended March 31, 2025 includes $62.1 million of non-cash gains from the change in fair value of derivative warrant and earn-out liabilities
As of March 31, 2025 cash, cash equivalents and available-for-sale investments totaled $209.1 million
As of April 30, 2025, following the previously announced closing of the share purchase by Quanta Computer, Inc., cash, cash equivalents and available-for-sale investments totaled $237.7 million

“Rigetti is proud to be awarded important government-funded projects in the U.S. and U.K. to advance our technology, which demonstrates our continued leadership in superconducting quantum computing,” says Rigetti CEO Dr. Subodh Kulkarni. “We also are making great strides in developing innovative approaches to scaling to higher qubit count systems, which is possible due to our open and modular system architecture, in-house full-stack expertise, and world-class partners.”

Recent Business Developments

Rigetti Selected to Participate in DARPA’s Quantum Benchmarking Initiative
Rigetti will advance to Stage A, a 6-month performance period focused on the Company’s utility-scale quantum computer concept worth up to $1 million upon completion of program milestones. Rigetti’s proposed concept to design and build a Utility-Scale Quantum Computer (USQC) combines the Company’s proprietary multi-chip architecture with scalable quantum error correction (QEC) codes. Rigetti’s long-time partner and leader in QEC technology, Riverlane, will be collaborating on this project and bringing their expertise to help refine the proposed USQC concept and validate the underlying technology.

Rigetti Granted AFOSR Award to Further Develop Breakthrough Chip Fabrication Technology
Rigetti will lead a $5.48 million consortium to further develop its breakthrough chip fabrication technology, Alternating-Bias Assisted Annealing (ABAA). Rigetti will collaborate with Iowa State University, the Royal Melbourne Institute of Technology, the University of Connecticut, and Lawrence Livermore National Laboratory* to develop a detailed understanding of how ABAA impacts the chip on a microscopic level — which aims to shed light on defects in superconducting qubits and open new avenues for understanding and mitigating them.

*Funded separately though Laboratory for Physical Sciences, University of Maryland

Rigetti Awarded Three Innovate UK Quantum Mission Pilot Awards to Advance Superconducting Quantum Computing
Rigetti will lead a £3.5 million consortium to advance quantum error correction capabilities on superconducting quantum computers. In collaboration with Riverlane and the National Quantum Computing Centre (NQCC) Superconducting Circuits Team, the consortium will conduct ambitious QEC tests that advance state-of-the-art metrics and demonstrate real-time QEC capabilities — a requirement for universal, fault-tolerant quantum computing.

As part of the project, Rigetti will also upgrade its existing NQCC quantum computer. The upgrades will include:

Deploying a larger 36-qubit quantum processing unit (QPU), updating from the current 24-qubit QPU
Integrating Rigetti’s latest generation control system, enabling improved qubit control and a fully programmable, low-latency interface with Riverlane’s QEC Stack

Rigetti was also awarded two additional Quantum Missions pilot competition projects:

Collaboration with SEEQC to integrate its digital chip-based technology with Rigetti’s 9-qubit Novera™ QPU hosted at the NQCC with the goal of identifying and understanding the key system components needed for scalable QEC.
Collaboration with TreQ, Qruise, Q-CTRL, and Oxford Ionics aims to create an open-architecture quantum computing testbed and deliver an open specification for quantum workflows, creating a common interface between quantum software and hardware.

Rigetti Closes Investment by Quanta Computer
On April 29, 2025, Rigetti closed its previously announced investment by Quanta Computer Inc. related to our strategic collaboration agreement. In connection with the closing, Quanta purchased approximately $35 million of shares of Rigetti common stock at approximately $11.59 per share.

Recent Technical Updates

Controlling a Superconducting Qubit Using Optical Signals
Rigetti’s joint paper with Harvard University, Massachusetts Institute of Technology, and University of Chicago, “Coherent control of a superconducting qubit using light,” has been published in Nature Physics.

Fault-tolerant quantum computing will likely require 10,000 to a million physical qubits. Scaling these systems is challenging because they require bulky microwave components with high thermal loads that can quickly overwhelm the cooling power of a dilution refrigerator. Optical signals have a considerably smaller footprint and negligible thermal conductivity.

The team successfully demonstrated the integration of a hybrid microwave-optical quantum transducer with a Rigetti-fabricated superconducting qubit. This hybrid set-up enables optical control of the qubit, removing the need for coax lines and provides a promising approach to scaling to higher qubit count systems.

New Quantum Algorithm Boosts Classical Optimizers
Rigetti leveraged its new quantum optimization algorithm, quantum preconditioning, to address a power energy grid problem. Using a public dataset representing South Carolina’s energy grid, the problem was to compute the maximum power exchange section, a metric that informs on the health and the power delivery capability of the energy network. Using Rigetti’s 84-qubit Ankaa-3 system, quantum preconditioning was used to boost best-in-class classical optimizers. A relative advantage against the classical baseline was achieved along with a high solution accuracy, highlighting the potential for quantum preconditioning to achieve quantum utility for solving practical optimization problems.

Conference Call and Webcast
Rigetti will host a conference call later today, May 12, 2025, at 5:00 pm ET, or 2:00 pm PT, to discuss its first quarter 2025 financial results.

You can listen to a live audio webcast of the conference call at https://edge.media-server.com/mmc/p/5w8qggnn/ or the “Events & Presentations” section of the Company’s Investor Relations website at https://investors.rigetti.com/. A replay of the conference call will be available at the same locations following the conclusion of the call for one year.

To participate in the live call, you must register using the following link: https://register-conf.media-server.com/register/BIa01e2c81dc8f4031b25c1ce89653b15e. Once registered, you will receive dial-in numbers and a unique PIN number. When you dial in, you will input your PIN and be routed into the call. If you register and forget your PIN, or lose the registration confirmation email, simply re-register to receive a new PIN.

About Rigetti
Rigetti is a pioneer in full-stack quantum computing. The Company has operated quantum computers over the cloud since 2017 and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. In 2021, Rigetti began selling on-premises quantum computing systems with qubit counts between 24 and 84 qubits, supporting national laboratories and quantum computing centers. Rigetti’s 9-qubit Novera QPU was introduced in 2023 supporting a broader R&D community with a high-performance, on-premises QPU designed to plug into a customer’s existing cryogenic and control systems. The Company’s proprietary quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing. Rigetti has developed the industry’s first multi-chip quantum processor for scalable quantum computing systems. The Company designs and manufactures its chips in-house at Fab-1, the industry’s first dedicated and integrated quantum device manufacturing facility. Learn more at https://www.rigetti.com/.

Contacts
Rigetti Computing Investor Contact:
IR@Rigetti.com

Rigetti Computing Media Contact:
press@rigetti.com

Cautionary Language Concerning Forward-Looking Statements
Certain statements in this communication may be considered “forward-looking statements” within the meaning of the federal securities laws, including statements with respect to the Company’s future success and performance, including expectations with respect to timing of the development and commercialization of superconducting quantum computing; expectations regarding the advantages and impact of the government-funded projects on the Company’s operations, technology roadmap, milestones, and the Company’s position in the industry; statements to the development of innovative approaches to scaling to higher qubit count systems and the impact of our open and modular system architecture, in-house full-stack expertise, and world-class partners; expectations for work under the AFOSR Award to shed light on defects in superconducting qubits and open new avenues for understanding and mitigating them; and expectations for the Quantum Missions pilot competition projects to: (a) lead to identifying and understanding key system components needed for scalable QEC, and (b) create an open-architecture quantum computing testbed and deliver an open specification for quantum workflows, creating a common interface between quantum software and hardware. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Company’s ability to achieve milestones, technological advancements, including with respect to its technology roadmap; the ability of the Company to obtain government contracts successfully and in a timely manner and the availability of government funding; the potential of quantum computing; the success of the Company’s partnerships and collaborations, including the strategic collaboration with Quanta; the Company’s ability to accelerate its development of multiple generations of quantum processors; the outcome of any legal proceedings that may be instituted against the Company or others; the ability to maintain relationships with customers and suppliers and attract and retain management and key employees; costs related to operating as a public company; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the Company’s estimates of expenses and profitability; the evolution of the markets in which the Company competes; the ability of the Company to implement its strategic initiatives and expansion plans; the expected use of proceeds from the Company’s past and future financings or other capital; the sufficiency of the Company’s cash resources; unfavorable conditions in the Company’s industry, the global economy or global supply chain, including rising inflation and interest rates, deteriorating international trade relations, political turmoil, natural catastrophes, warfare and terrorist attacks; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements other than as required by applicable law. The Company does not give any assurance that it will achieve its expectations.


RIGETTI COMPUTING, INC. CONDENSED CONSOLIDATED BALANCE SHEETS *(in thousands, except number of shares and par value)* *(unaudited)*

	March 31,			December 31,
	2025			2024
Assets
Current assets:
Cash and cash equivalents	$	37,162		$	67,674
Available-for-sale investments – short-term		171,966			124,420
Accounts receivable		1,068			2,427
Prepaid expenses		2,124			3,156
Other current assets		2,041			9,081
Total current assets		214,361			206,758
Available-for-sale investments – long-term		—			25,068
Property and equipment, net		46,100			44,643
Operating lease right-of-use assets		7,609			7,993
Other assets		1,068			325
Total assets	$	269,138		$	284,787

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	3,401		$	1,590
Accrued expenses and other current liabilities		5,665			8,005
Current portion of deferred revenue		147			113
Current portion of operating lease liabilities		2,179			2,159
Total current liabilities		11,392			11,867
Deferred revenue, less current portion		698			698
Operating lease liabilities, less current portion		6,230			6,641
Derivative warrant liabilities		39,576			93,095
Earn-out liabilities		4,114			45,897
Total liabilities		62,010			158,198
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized, none outstanding		—			—
Common stock, par value $0.0001 per share, 1,000,000,000 shares authorized, 286,974,947 shares issued and outstanding at March 31, 2025 and 283,546,871 shares issued and outstanding at December 31, 2024		29			29
Additional paid-in capital		719,315			681,202
Accumulated other comprehensive (loss) income		(88	)		105
Accumulated deficit		(512,128	)		(554,747	)
Total stockholders’ equity		207,128			126,589
Total liabilities and stockholders’ equity	$	269,138		$	284,787


RIGETTI COMPUTING, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) *(unaudited)*

	Three months ended March 31,
	2025			2024
Revenue	$	1,472			$	3,052
Cost of revenue		1,030				1,552
Total gross profit		442				1,500
Operating expenses:
Research and development		15,455				11,471
Selling, general and administrative		6,619				6,614
Total operating expenses		22,074				18,085
Loss from operations		(21,632	)			(16,585	)
Other income (expense), net
Interest expense		—				(1,107	)
Interest income		2,152				1,123
Change in fair value of derivative warrant liabilities		53,262				(2,583	)
Change in fair value of earn-out liabilities		8,837				(1,621	)
Total other income (expense), net		64,251				(4,188	)
Net income (loss) before provision for income taxes		42,619				(20,773	)
Provision for income taxes		—				—
Net income (loss)	$	42,619			$	(20,773	)
Net income (loss) available to common stockholders used in diluted earnings per share	$	38,256			$	(20,773	)
Net income (loss) per share attributable to common stockholders – basic	$	0.15			$	(0.14	)
Net income (loss) per share attributable to common stockholders – diluted	$	0.13			$	(0.14	)
Weighted average shares used to compute net income (loss) per share attributable to common stockholders – basic		284,698				151,855
Weighted average shares used to compute net income (loss) per share attributable to common stockholders – diluted		301,595				151,855


RIGETTI COMPUTING INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) *(unaudited)*

	Three months ended March 31,
	2025			2024
Cash flows from operating activities:
Net income (loss)	$	42,619		$	(20,773	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization		1,829			1,787
Stock-based compensation		4,174			2,991
Change in fair value of earn-out liabilities		(8,837	)		1,621
Change in fair value of derivative warrant liabilities		(53,262	)		2,583
Accretion of available-for-sale securities		(1,423	)		(855	)
Amortization of debt issuance costs, commitment fees and accretion of final payment fees		—			298
Non-cash lease expense		384			391
Changes in operating assets and liabilities:
Accounts receivable		1,359			323
Prepaid expenses, other current assets and other assets		1,379			435
Deferred revenue		34			(214	)
Accounts payable		747			334
Accrued expenses and operating lease liabilities		(2,654	)		(2,060	)
Net cash used in operating activities		(13,651	)		(13,139	)
Cash flows from investing activities:
Purchases of property and equipment		(2,547	)		(5,493	)
Purchases of available-for-sale securities		(44,062	)		(27,287	)
Maturities of available-for-sale securities		23,000			39,000
Net cash (used in) provided by investing activities		(23,609	)		6,220
Cash flows from financing activities:
Payments of principal of notes payable		—			(3,045	)
Proceeds from sale of common stock through Common Stock Purchase Agreement		—			12,838
Proceeds from sale of common stock through At-The-Market (ATM) Offering		—			11,031
Payments of offering costs		(73	)		(174	)
Net proceeds from tax withholdings on sell-to-cover equity award transactions		6,272			—
Proceeds from issuance of common stock upon exercise of stock options		327			60
Proceeds from issuance of common stock upon exercise of warrants		409			—
Net cash provided by financing activities		6,935			20,710
Effects of exchange rate changes on cash and cash equivalents		(187	)		(85	)
Net (decrease) increase in cash and cash equivalents		(30,512	)		13,706
Cash and cash equivalents – beginning of period		67,674			21,392
Cash and cash equivalents – end of period	$	37,162		$	35,098
Supplemental disclosures of other cash flow information:
Cash paid for interest	$	—		$	811
Non-cash investing and financing activities:
Capitalization of deferred costs to equity upon share issuance		—			52
Purchases of property and equipment recorded in accounts payable		1,408			1,115
Purchases of property and equipment recorded in accrued expenses		74			—
Reclassification of earn-out liabilities to additional paid-in capital for vesting of Promote Sponsor Vesting Shares		32,946			—
Reclassification of derivative liabilities to additional paid-in capital due to exercise of Public Warrants		257			—
Purchases of deferred offering costs in accounts payable		122			273
Unrealized losses on short term investments		(8	)		(18	)

The MIL Network –

May 13, 2025

MIL-OSI: PennantPark Investment Corporation Announces Financial Results for the Quarter Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

MIAMI, May 12, 2025 (GLOBE NEWSWIRE) — PennantPark Investment Corporation (NYSE: PNNT) announced today its financial results for the second quarter ended March 31, 2025.

HIGHLIGHTS
Quarter ended March 31, 2025 (unaudited)
($ in millions, except per share amounts)

Assets and Liabilities:
Investment portfolio ⁽¹⁾	$	1,213.6
Net assets	$	488.1
GAAP net asset value per share	$	7.48
Quarterly change in GAAP net asset value per share		(1.2	)%
Adjusted net asset value per share ⁽²⁾	$	7.48
Quarterly change in adjusted net asset value per share ⁽²⁾		(1.2	)%

Credit Facility	$	311.4
2026 Notes	$	149.0
2026-2 Notes	$	163.5
Regulatory debt to equity	1.29x
Weighted average yield on debt investments		12.0	%

Operating Results:
Net investment income	$	11.4
Net investment income per share	$	0.18
Core net investment income per share ⁽³⁾	$	0.18
Distributions declared per share	$	0.24

Portfolio Activity:
Purchases of investments *	$	176.8
Sales and repayments of investments *	$	263.1

PSLF Portfolio data:
PSLF investment portfolio	$	1,392.9
Purchases of investments	$	169.9
Sales and repayments of investments	$	48.3

* excludes U.S. Government Securities

Includes investments in PennantPark Senior Loan Fund, LLC (“PSLF”), an unconsolidated joint venture, totaling $217.7 million, at fair value.
This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company’s financial performance excluding the impact of unrealized gain on the Company’s multi-currency, senior secured revolving credit facility with Truist Bank, as amended, the “Credit Facility.” The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
Core net investment income (“Core NII”) is a non-GAAP financial measure. The Company believes that Core NII provides useful information to investors and management because it reflects the Company’s financial performance excluding one-time or non-recurring investment income and expenses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. For the quarter ended March 31, 2025, Core NII excluded: i) $0.3 million of credit facility amendment cost, and ii) $0.1 million of incentive fee expense offset.

CONFERENCE CALL AT 12:00 P.M. EST ON MAY 13, 2025

PennantPark Investment Corporation (“we,” “our,” “us” or the “Company”) will also host a conference call at 12:00 p.m. (Eastern Time) on Tuesday, May 13, 2025 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (888) 394-8218 approximately 5-10 minutes prior to the call. International callers should dial (646) 828-8193. All callers should reference conference ID #1509093 or PennantPark Investment Corporation. An archived replay will also be available on a webcast link located on the Quarterly Earnings page in the Investor section of PennantPark’s website.

PORTFOLIO AND INVESTMENT ACTIVITY

“We are pleased that our secured loan portfolio, with among the lowest portfolio company leverage and most meaningful covenants in the industry, is positioned defensively and continues to perform well,” said Art Penn, Chairman and CEO. “Additionally, our dividend stream is supported by substantial spillover income as we look to rotate equity investments over time.”

As of March 31, 2025, our portfolio totaled $1,213.6 million and consisted of $503.0 million or 41% of first lien secured debt, $124.6 million or 10% of U.S. Government Securities, $17.9 million or 2% of second lien secured debt, $216.8 million or 18% of subordinated debt (including $140.3 million or 12% in PSLF) and $351.3 million or 29% of preferred and common equity (including $77.4 million or 6% in PSLF). Our interest bearing debt portfolio consisted of 91% variable-rate investments and 9% fixed-rate investments. As of March 31, 2025, we had three portfolio companies on non-accrual, representing 1.6% and 0.4% percent of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized appreciation of $40.7 million as of March 31, 2025. Our overall portfolio consisted of 158 companies with an average investment size of $6.9 million (excluding U.S. Government Securities), had a weighted average yield on interest bearing debt investments of 12.0%.

As of September 30, 2024, our portfolio totaled $1,328.1 million and consisted of $667.9 million or 50% of first lien secured debt, $99.6 million or 8% of U.S. Government Securities, $67.2 million or 5% of second lien secured debt, $181.7 million or 14% of subordinated debt (including $115.9 million or 9% in PSLF) and $311.7 million or 23% of preferred and common equity (including $67.9 million or 5% in PSLF). Our interest bearing debt portfolio consisted of 94% variable-rate investments and 6% fixed-rate investments. As of September 30, 2024, we had two portfolio companies on non-accrual, representing 4.1% and 2.3% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized appreciation of $11.2 million as of September 30, 2024. Our overall portfolio consisted of 152 companies with an average investment size of $8.1 million (excluding U.S. Government Securities), had a weighted average yield on interest bearing debt investments of 12.3%.

For the three months ended March 31, 2025, we invested $176.8 million in three new and 52 existing portfolio companies with a weighted average yield on debt investments of 10.7% (excluding U.S. Government Securities). For the three months ended March 31, 2025, sales and repayments of investments totaled $263.1 million (including $154.4 million was sold to PSLF) which excludes U.S. Government Securities. For the six months ended March 31, 2025, we invested $472.5 million in 15 new and 96 existing portfolio companies with a weighted average yield on debt investments of 10.6% (excluding U.S. Government Securities). For the six months ended March 31, 2025, sales and repayments of investments totaled $616.8 million (including $441.0 million was sold to PSLF) which excludes U.S. Government Securities.

For the three months ended March 31, 2024, we invested $188.5 million in six new and 43 existing portfolio companies with a weighted average yield on debt investments of 11.7% (excluding U.S. Government Securities). For the three months ended March 31, 2024, sales and repayments of investments totaled $176.2 million (including $103.1 million was sold to PSLF) which excludes U.S. Government Securities. For the six months ended March 31, 2024, we invested $419.6 million in 18 new and 60 existing portfolio companies with a weighted average yield on debt investments of 11.8% (excluding U.S. Government Securities). For the six months ended March 31, 2024, sales and repayments of investments totaled $247.2 million (including $154.0 million was sold to PSLF) which excludes U.S. Government Securities.

PennantPark Senior Loan Fund, LLC

As of March 31, 2025, PSLF’s portfolio totaled $1,392.9 million, consisted of 119 companies with an average investment size of $11.7 million and had a weighted average yield interest bearing debt investments of 10.4%.

As of September 30, 2024, PSLF’s portfolio totaled $1,031.2 million, consisted of 102 companies with an average investment size of $10.1 million and had a weighted average yield interest bearing debt investments of 11.3%.

For the three months ended March 31, 2025, PSLF invested $169.9 million (including $154.4 million were purchased from the Company) in eight new and 14 existing portfolio companies at weighted average yield interest bearing debt investments of 10.1%. PSLF’s sales and repayments of investments for the same period totaled $48.3 million. For the six months ended March 31, 2025, PSLF invested $523.7 million (including $441.0 million were purchased from the Company) in 23 new and 57 existing portfolio companies at weighted average yield interest bearing debt investments of 10.4%. PSLF’s sales and repayments of investments for the same period totaled $157.4 million.

For the three months ended March 31, 2024, PSLF invested $113.2 million (including $103.1 million were purchased from the Company) in 11 new and five existing portfolio companies at weighted average yield on interest bearing debt investments of 11.8%. PSLF’s sales and repayments of investments for the same period totaled $49.7 million. For the six months ended March 31, 2024, PSLF invested $194.2 million (including $154.0 million were purchased from the Company) in 16 new and 11 existing portfolio companies at weighted average yield on interest bearing debt investments of 12.2%. PSLF’s sales and repayments of investments for the same period totaled $78.9 million.

RESULTS OF OPERATIONS

Set forth below are the results of operations for the three and six months ended March 31, 2025 and 2024.

Investment Income

For the three and six months ended March 31, 2025, investment income was $30.7 million and $64.9 million, respectively, which was attributable to $22.1 million and $47.3 million from first lien secured debt, $1.0 million and $3.0 million from second lien secured debt, $1.1 million and $2.2 million from subordinated debt and $6.5 million and $12.4 million from other investments, respectively. For the three and six months ended March 31, 2024, investment income was $36.0 million and $70.3 million, respectively, which was attributable to $27.8 million and $52.9 million from first lien secured debt, $2.8 million and $5.4 million from second lien secured debt, $0.1 million and $1.4 million from subordinated debt and $5.3 million and $10.6 million from preferred and common equity, respectively. The decrease in investment income for three and six months ended March 31, 2025, was primarily due to a decrease in our total portfolio size and a decrease in our weighted average yield on debt investments.

Expenses

For the three and six months ended March 31, 2025, expenses totaled $19.2 million and $40.4 million, respectively, and were comprised of $10.6 million and $22.4 million of debt related interest and expenses, $4.0 million and $8.3 million of base management fees, $2.4 million and $5.2 million of incentive fees, $1.6 million and $3.3 million of general and administrative expenses and $0.6 million and $1.3 million of provision for excise taxes, respectively. For the three and six months ended March 31, 2024, expenses totaled $21.7 million and $40.4 million, respectively, and were comprised of; $11.9 million and $21.4 million of debt-related interest and expenses, $4.1 million and $8.1 million of base management fees, $3.0 million and $6.3 million of incentive fees, $1.9 million and $3.3 million of general and administrative expenses and $0.8 million and $1.2 million of provision for excise taxes, respectively. The decrease in expenses for the three months ended March 31, 2025, was primarily due to decreases in interest and expenses on debt and incentive fees. Total expenses were flat for the six months ended March 31, 2025.

Net Investment Income

For the three and six months ended March 31, 2025, net investment income totaled $11.4 million and $24.4 million, or $0.18 per share and $0.37 per share, respectively. For the three and six months ended March 31, 2024, net investment income totaled $14.3 million and $29.9 million, or $0.22 per share and $0.46 per share, respectively. The decrease in net investment income was primarily due to a decrease in investment income and partially offset by a decrease in expenses.

Net Realized Gains or Losses

For the three and six months ended March 31, 2025, net realized gains (losses) totaled $(27.7) million and $(30.3) million, respectively. For the three and six months ended March 31, 2024, net realized gains (losses) totaled $(31.0) million and $(29.2) million, respectively. The change in realized gains (losses) was primarily due to changes in the market conditions of our investments and the values at which they were realized.

Unrealized Appreciation or Depreciation on Investments and Debt

For the three and six months ended March 31, 2025, we reported net change in unrealized appreciation (depreciation) on investments of $27.1 million and $29.5 million, respectively. For the three and six months ended March 31, 2024, we reported net change in unrealized appreciation (depreciation) on investments of $33.2 million and $28.3 million, respectively. As of March 31, 2025 and September 30, 2024, our net unrealized appreciation (depreciation) on investments totaled $40.7 million and $11.2 million, respectively. The net change in unrealized depreciation on our investments was primarily due to changes in the capital market conditions of our investments and the values at which they were realized.

For the three and six months ended March 31, 2025, the Truist Credit Facility had a net change in unrealized appreciation (depreciation) of $(1.4) million and $1.9 million, respectively. For the three and six months ended March 31, 2024, the Truist Credit Facility had a net change in unrealized appreciation (depreciation) of $0.5 million and $(1.6) million, respectively. As of March 31, 2025 and September 30, 2024, the net unrealized appreciation (depreciation) on the Truist Credit Facility totaled $3.0 million and $1.1 million, respectively. The net change in unrealized depreciation compared to the same periods in the prior period was primarily due to changes in the capital markets.

Net Change in Net Assets Resulting from Operations

For the three and six months ended March 31, 2025, net increase (decrease) in net assets resulting from operations totaled $9.5 million and $25.5 million or $0.14 per share and $0.39 per share, respectively. For the three and six months ended March 31, 2024, net increase (decrease) in net assets resulting from operations totaled $16.1 million and $26.7 million or $0.25 per share and $0.41 per share, respectively. The change in net assets from operations for the six months ended March 31, 2025 was primarily due to a change in the net realized and unrealized depreciation in the portfolio primarily driven by changes in market conditions and decrease in net investment income.

LIQUIDITY AND CAPITAL RESOURCES

Our liquidity and capital resources are derived primarily from cash flows from operations, including income earned, proceeds from investment sales and repayments and proceeds of securities offerings and debt financings. Our primary use of funds from operations includes investments in portfolio companies and payments of interest expense, fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from the rotation of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives and operations.

As of March 31, 2025 and September 30, 2024, we had $314.5 million and $461.5 million, respectively, in outstanding borrowings under the Truist Credit Facility. The Truist Credit Facility had a weighted average interest rate of 6.7% and 7.2%, respectively, exclusive of the fee on undrawn commitment. As of March 31, 2025 and September 30, 2024, we had $185.5 million and $13.5 million of unused borrowing capacity under the Truist Credit Facility, respectively, subject to leverage and borrowing base restrictions.

As of March 31, 2025 and September 30, 2024, we had cash and cash equivalents of $32.6 million and $49.9 million, respectively, available for investing and general corporate purposes. We believe our liquidity and capital resources are sufficient to allows us to effectively operate our business.

For the six months ended March 31, 2025, our operating activities provided cash of $161.1 million and our financing activities used cash of $178.3 million. Our operating activities provided cash primarily due to our investment activities and our financing activities used cash primarily for repayments of our credit facility and distributions paid to stockholders.

For the six months ended March 31, 2024, our operating activities used cash of $150.9 million and our financing activities provided cash of $147.5 million. Our operating activities used cash primarily due to our investment activities and our financing activities provided cash primarily from borrowings under the Truist Credit Facility.

DISTRIBUTIONS

During the three and six months ended March 31, 2025, we declared distributions of $0.24 and $0.48 per share, for total distributions of $15.7 million and $31.3 million, respectively. During the three and six months ended March 31, 2024, we declared distributions of $0.21 and $0.42 per share, for total distributions of $13.7 million and $27.4 million, respectively. We monitor available net investment income to determine if a return of capital for tax purposes may occur for the fiscal year. To the extent our taxable earnings fall below the total amount of our distributions for any given fiscal year, stockholders will be notified of the portion of those distributions deemed to be a tax return of capital. Tax characteristics of all distributions will be reported to stockholders subject to information reporting on Form 1099-DIV after the end of each calendar year and in our periodic reports filed with the SEC.

AVAILABLE INFORMATION

The Company makes available on its website its Quarterly Report on Form 10-Q filed with the SEC and stockholders may find the report on our website at www.pennantpark.com.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In thousands, except share data)

	March 31, 2025			September 30, 2024
	(unaudited)
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost—$716,505 and $916,168, respectively)	$	723,808		$	910,323
Non-controlled, affiliated investments (amortized cost—$58,068 and $56,734, respectively)		11,050			33,423
Controlled, affiliated investments (amortized cost—$398,359 and $343,970, respectively)		478,752			384,304
Total investments (amortized cost—$1,172,932 and $1,316,872, respectively)		1,213,610			1,328,050
Cash and cash equivalents (cost—$32,568 and $49,833, respectively)		32,587			49,861
Interest receivable		5,322			5,261
Distribution receivable		6,040			5,417
Due from affiliates		35			228
Prepaid expenses and other assets		185			269
Total assets		1,257,779			1,389,086
Liabilities
Truist Credit Facility payable, at fair value (cost—$314,456 and $461,456, respectively)		311,412			460,361
2026 Notes payable, net (par— $150,000)		149,022			148,571
2026 Notes-2 payable, net (par— $165,000)		163,506			163,080
Payable for investment purchased		124,609			100,096
Interest payable on debt		6,349			6,406
Distributions payable		5,224			5,224
Base management fee payable		4,017			4,297
Accounts payable and accrued expenses		3,108			4,053
Incentive fee payable		2,425			3,057
Due to affiliate		1			33
Total liabilities		769,673			895,178
Commitments and contingencies
Net assets
Common stock, 65,296,094 and 65,296,094 shares issued and outstanding, respectively
Par value $0.001 per share and 200,000,000 shares authorized		65			65
Paid-in capital in excess of par value		743,968			743,968
Accumulated deficit		(255,927	)		(250,125	)
Total net assets	$	488,106		$	493,908
Total liabilities and net assets	$	1,257,779		$	1,389,086
Net asset value per share	$	7.48		$	7.56

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)

	Three Months Ended March 31,						Six Months Ended March 31,
	2025			2024			2025			2024
Investment income:
From non-controlled, non-affiliated investments:
Interest	$	14,987		$	22,904		$	33,753		$	43,972
Payment-in-kind		1,564			187			2,985			189
Dividend income		499			623			1,006			1,315
Other income		120			778			702			2,203
From non-controlled, affiliated investments:
Payment-in-kind		—			—			—			347
From controlled, affiliated investments:
Interest		7,887			5,941			15,142			11,422
Payment-in-kind		—			857			823			1,489
Dividend income		5,579			4,689			10,430			9,378
Other income		27			—			27			—
Total investment income		30,663			35,979			64,868			70,315
Expenses:
Interest and expenses on debt		10,318			11,868			22,058			21,424
Base management fee		4,017			4,137			8,285			8,141
Incentive fee		2,425			3,018			5,180			6,339
General and administrative expenses		1,150			1,379			2,400			2,593
Administrative services expenses		450			550			950			739
Expenses before amendment costs, debt issuance costs and provision for taxes		18,360			20,952			38,873			39,236
Provision for taxes on net investment income		550			775			1,250			1,168
Credit facility amendment and debt issuance costs		324			—			324			—
Net expenses		19,234			21,727			40,447			40,404
Net investment income		11,429			14,252			24,421			29,911
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments and debt:
Non-controlled, non-affiliated investments		(27,714	)		(1,434	)		(30,274	)		1,146
Non-controlled and controlled, affiliated investments		—			(29,419	)		—			(30,169	)
Provision for taxes on realized gain on investments		(49	)		(177	)		(49	)		(177	)
Net realized gain (loss) on investments and debt		(27,763	)		(31,030	)		(30,323	)		(29,200	)
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments		17,918			(1,528	)		13,141			(13,798	)
Non-controlled and controlled, affiliated investments		9,214			34,751			16,352			42,075
Provision for taxes on unrealized appreciation (depreciation) on investments		37			(830	)		—			(680	)
Debt appreciation (depreciation)		(1,379	)		470			1,949			(1,570	)
Net change in unrealized appreciation (depreciation) on investments and debt		25,790			32,863			31,442			26,027
Net realized and unrealized gain (loss) from investments and debt		(1,973	)		1,833			1,119			(3,173	)
Net increase (decrease) in net assets resulting from operations	$	9,456		$	16,085		$	25,540		$	26,738
Net increase (decrease) in net assets resulting from operations per common share	$	0.14		$	0.25		$	0.39		$	0.41
Net investment income per common share	$	0.18		$	0.22		$	0.37		$	0.46

ABOUT PENNANTPARK INVESTMENT CORPORATION

PennantPark Investment Corporation, or the Company, is a business development company that invests primarily in U.S. middle-market companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments. PennantPark Investment Corporation is managed by PennantPark Investment Advisers, LLC.

ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC

PennantPark Investment Advisers, LLC is a leading middle market credit platform, managing approximately $10 billion of investable capital, including available leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC has provided investors access to middle market credit by offering private equity firms and their portfolio companies as well as other middle-market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark Investment Advisers, LLC is headquartered in Miami and has offices in New York, Chicago, Houston, Los Angeles, and Amsterdam.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports PennantPark Investment Corporation files under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the SEC. PennantPark Investment Corporation undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.

We may use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations.

The information contained herein is based on current tax laws, which may change in the future. The Company cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.

Contact:	Richard T. Allorto, Jr.
	PennantPark Investment Corporation
	(212) 905-1000
	www.pennantpark.com

The MIL Network –

May 13, 2025

MIL-OSI: Exodus Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

OMAHA, Neb., May 12, 2025 (GLOBE NEWSWIRE) — Exodus Movement, Inc. (NYSE American: EXOD) (“Exodus”), a leading self-custodial cryptocurrency platform, today announced its unaudited results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights (Unaudited)


*In USD millions, except percentages*	Q1 2025			Q1 2024			*% Change*

Revenue	$	36.0		$	29.1			24	%

Technology, development and user support		14.9			10.7			39	%

General and administrative		14.3			8.0			79	%

Loss (gain) on digital assets, net		28.8			(56.8	)		(151	%)

Net (loss) income		(12.9	)		54.8			(124	%)

“Exodus continues to offer innovative solutions that capitalize on the growing market for digital assets,” said JP Richardson, CEO and co-founder of Exodus. “Meanwhile, our focus on self-custody remains a difference-maker.”

First Quarter Operational and Other Financial Highlights

Exchange provider processed volume – $2.18 billion in Q1 2025, down 7% from Q4 2024. Bitcoin, Tether (TRX Network), Solana, Tether (ETH Network), ETH, and XRP were the top assets traded in Q1 2025, at 16%, 11%, 11%, 9%, 8%, and 8% of volume, respectively.
Exodus monthly active users – 1.6 million at end of Q1 2025, down 30% from 2.3 million as of December 31, 2024.
Exodus quarterly funded users – 1.8 million at end of Q1 2025, down 5% from 1.9 million as of December 31, 2024.
Digital assets, cash, and cash equivalents – $238.0 million, including 2,011 units of Bitcoin valued at $166.0 million, 2,693 units of Ether valued at $4.9 million, and $62.8 million in cash and cash equivalents, USD Coin (USDC), and Treasury bills as of March 31, 2025.
Full-time equivalent team members – approximately 210 as of March 31 2025, unchanged from the prior quarter.
Customer response time – average response time of less than 60 minutes in Q1.

“Q1 saw our highest first quarter revenue and second best revenue quarter on record.” said James Gernetzke, CFO of Exodus. “With an abundance of opportunities at our doorstep, Exodus is well-positioned to expand within our industry and beyond, well into the future.”

Q1 2025 Webcast

Exodus will host a webcast of its preliminary first quarter 2025 fiscal results beginning at 4:30PM (Eastern Time) on May 12, 2025. To access the webcast, please use this link. It will also be carried on the Company’s website exodus.com/investors. Supplementary materials will also be made available prior to the webcast on the “Investor Relations” portion of the Company website, and a replay of the video webcast will be available following the live event for at least 90 days thereafter.

Investor Contact
investors@exodus.com

Disclosure Information

Exodus may use its website and the following social media outlets as distribution channels of material nonpublic information about the Company. Financial and other important information regarding the Company is routinely accessible through and posted on the following: websites exodus.com/investors and exodus.com/blog, and social media: X (@exodus and JP Richardson’s feed @jprichardson), Facebook, LinkedIn, and YouTube.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Forward-looking statements are based on our beliefs and assumptions and on information currently available to us as of the date hereof. In some cases, you can identify forward-looking statements by the following words: “will,” “expect,” “would,” “should,” “intend,” “believe,” “expect,” “likely,” “believes,” “views”, “estimates”, or other comparable terminology. Forward-looking statements in this document include, but are not limited to, our preliminary financial information, including digital asset holdings, exchange provider processed volumes and our fiscal quarter end results, management statements regarding management’s confidence in our products, services, business trajectory and plans, expectations regarding demand for our products; and our ability to deliver higher transaction volumes. Such forward-looking statements involve a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from those expressed or implied by our forward-looking statements. Such factors include those set forth in “Item 1. Business” and “Item 1A. Risk Factors” of Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2025, as well as in our other reports filed with the SEC from time to time. All forward-looking statements are expressly qualified in their entirety by such cautionary statements. Readers are cautioned not to place undue reliance on such forward-looking statements. Except as required by law, we undertake no obligation to update or revise any forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

The MIL Network –

May 13, 2025

MIL-OSI: Mountain America Credit Union Earns Top 10 National Workplace Honor for Second Year in a Row

Source: GlobeNewswire (MIL-OSI)

SANDY, Utah, May 12, 2025 (GLOBE NEWSWIRE) — Mountain America Credit Union has once again earned national acclaim ranking No. 9 out of 1,526 organizations in USA Today Top Workplaces 2025. The announcement marks the second consecutive year Mountain America has secured a coveted spot in the top 10, underscoring the organization’s commitment to fostering a workplace where people thrive.

A Media Snippet accompanying this announcement is available in this link.

As the only credit union to break into the Top 100, Mountain America stands out not just in the financial sector, but across industries nationwide. The recognition follows a rigorous, independent evaluation based on team member feedback from the Energage Workplace Survey & Pulse. The survey measures 15 culture drivers critical to organizational success, including alignment, connection, and engagement.

“Our people are the heart of everything we do,” said Sterling Nielsen, president and chief executive officer at Mountain America. “Being named a top workplace again reaffirms that we’re not just building careers—we’re building a purpose-driven culture where individuals feel seen, supported and empowered.”

This year’s Top Workplaces rankings reflect input from over two million employees from more than 1,500 companies across the country. Mountain America’s team members cited strong leadership, growth opportunities, and a values-centered mission as standout attributes of the credit union’s culture.

“We believe this recognition acknowledges our efforts to tightly link our mission to provide members exceptional member experiences by hiring and developing the best people,” said Trent Savage, chief human resources officer. “Our values link our employees to the members we serve and ensure we provide a great place to work where employees are empowered to both support the members and to develop/grow their careers with us.”

The Top Workplaces program is one of the most prestigious employer recognition programs in the United States, placing a spotlight on organizations that truly put people first.

Mountain America’s continued recognition speaks to its enduring mission of helping members define and achieve their financial dreams while also nurturing an internal community rooted in trust, compassion and excellence.

To learn more about Mountain America, visit macu.com/newsroom.

About Mountain America Credit Union
With more than 1 million members and $20 billion in assets, Mountain America Credit Union helps its members define and achieve their financial dreams. Mountain America provides consumers and businesses with a variety of convenient, flexible products and services, as well as sound, timely advice. Members enjoy access to secure, cutting-edge mobile banking technology, over 100 branches across multiple states, and more than 50,000 surcharge-free ATMs. Mountain America—guiding you forward. Learn more at macu.com.

The MIL Network –

May 13, 2025

MIL-OSI: Steadyhand Announces Unitholder Approval to Change Manager to Purpose Investments

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, British Columbia, May 12, 2025 (GLOBE NEWSWIRE) — Steadyhand Investment Management Ltd. (“Steadyhand”) announced today that it has received unitholder approval to change the manager of the Steadyhand Investment Funds (the “Funds”) to Purpose Investments Inc. (“Purpose Investments”), a wholly owned subsidiary of Purpose Unlimited Inc. (“Purpose”). Specifically, the unitholders approved the change in manager from Steadyhand to Purpose Investments, and the change to the investment objectives of each of the Funds, all as more particularly described in the Notice of Special Meetings of Unitholders and Joint Management Information Circular dated April 7, 2025 (the “Circular”).

“We’re pleased to report that our clients voted overwhelmingly in favour of the changes,” said Tom Bradley, Steadyhand Chair and co-founder. “This strong endorsement is a testament to the confidence our clients have in the future of Steadyhand and Purpose.”

These changes were previously announced by Purpose and Steadyhand on March 24, 2025, in connection with the announcement that Purpose had entered into an agreement to acquire all the issued and outstanding shares of Steadyhand and Steadyhand Investment Funds, Inc. (the “Transaction”). Voting results for each of the Funds will be available under their respective profiles at www.sedarplus.ca.

The Transaction and changes approved by unitholders are expected to be completed in and around Q2 2025, pending regulatory approvals and customary closing conditions. Additional details regarding the Transaction and the changes affecting the Funds are set out in the Circular and the simplified prospectus and fund facts for the Funds, and amendments thereto, which are available under each Fund’s profile at www.sedarplus.ca.

About Purpose

Purpose is a growing independent financial services firm on a mission to redefine the industry by putting customers first and delivering innovative solutions that shape the future of finance. Purpose offers cutting-edge technology and a diverse suite of financial products and services to empower Canadians with the tools and advice they need to succeed. Founded and led by entrepreneur Som Seif, the firm’s businesses span asset and wealth management and small business financing and include Purpose Investments, Driven by Purpose, Advisor Solutions by Purpose and Longevity. For more information, please visit www.purpose-unlimited.com.

About Steadyhand

Steadyhand is a low-fee investment firm with a mission of providing Canadians with a better investing outcome and a simpler, more personalized experience. It offers clear-cut advice, customized plans, and most importantly, a steady hand, to help investors achieve their financial goals. The firm has approximately $1.3 billion of assets under management with offices in Vancouver and Toronto.

For further information, please contact:

David Toyne
Chief Development Officer
Steadyhand Investment Funds Inc.
1-888-888-3147

The MIL Network –

May 13, 2025

MIL-OSI: Pace-O-Matic presents inaugural Integrity Award to Larry Hilimire

Source: GlobeNewswire (MIL-OSI)

DULUTH, Ga., May 12, 2025 (GLOBE NEWSWIRE) — Pace-O-Matic and its founder, Michael Pace, have presented the first-ever Integrity Award to Larry Hilimire, amusement industry legend and owner of Staunton Automatics in New York. The award was presented to Hilimire at the Amusement and Music Operators Association New York (AMOA-NY) annual gala in Manhattan on April 28.

The Integrity Award recognizes individuals in the amusement industry or related fields who exemplify the highest standards of integrity. Recipients are those who consistently demonstrate honesty, fairness, and ethical conduct in all aspects of their professional endeavors.

For over five decades, Larry Hilimire has led Stanton Automatics with a rare blend of vision, integrity, and grit, growing a family business into one of the most respected music and amusement operations in the country. His leadership has transformed the amusement industry, not just through innovation, but by setting the standard for how business should be done.

“Larry’s a straight shooter — honest, dependable, and always guided by principle,” said Michael Pace, founder of Pace-O-Matic and creator of the Integrity Award. “He’s someone who will tell you what you need to hear, even if it’s not what you want to hear. That’s someone you can trust; that’s integrity. Thank you, Larry, for your decades of leadership, your unwavering ethics, and your lasting impact on the industry.”

Mark Twain once famously said, “Do the right thing. It will gratify some people and astonish the rest.” The Integrity Award is intended to celebrate those who live by this example. It will honor game developers, executives, partners, or any other professionals who go above and beyond to ensure their actions reflect a deep commitment to doing what is right, even when faced with challenges or when it might not be the easiest path. This award is not just about what one achieves but how one achieves it, highlighting the importance of integrity in the industry.

“Humbled, grateful, and shocked are just a few things I am feeling as I receive this award,” said Hilimire. “I want to thank Michael and Karmin, as well as the Pace-O-Matic family, for this great recognition. It is truly the highlight of my lifelong career.”

Hilimire added, “I am sure all of you know who Tim Coughlin is, NY Giants head coach and two-time Super Bowl Champion. I often think of the picture of Tom sitting in his office after one of his Super Bowl wins, the trophy on his desk, with his feet up and a sign on his lap that read ‘Mission Accomplished’. I am going to have my son take a picture of me, feet up on my desk, with this beautiful award in hand, and a sign that says, ‘Mission Accomplished’.”

The award is embodied in a stunning piece of hand-blown glass art. The award features a clear, luminous glass structure with intricate layers and varying colors. Every award is a unique art piece, and no two are the same. This is the first of several Integrity Award recognitions, which will be announced and presented in the coming months.

Media Contact:
Rachel Albritton
502-905-5170
rachel.albritton@paceomatic.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e5cb269e-b1db-4399-8a85-20cb663818ff

The MIL Network –

May 13, 2025

MIL-OSI: ProvisionAi Launches Make-n-Ship—A Breakthrough AutoO2 Capability for Optimizing Factory Shipments in Tight Dock Environments

Source: GlobeNewswire (MIL-OSI)

FRANKLIN, Tenn., May 12, 2025 (GLOBE NEWSWIRE) — ProvisionAi, with patented AI-powered transportation optimization, today announced the launch of Make-n-Ship, a powerful new capability in its AutoO2 platform. Designed specifically for factories with minimal or no buffer space between production lines and shipping docks, Make-n-Ship enables intelligent shipment building that reduces transportation costs and deploys the right product to the right place.

Traditional load planning systems assume flexibility regarding when and where goods can be staged prior to shipment. However, many manufacturing plants operate in environments where finished goods must go directly from the line to the trailer. Make-n-Ship addresses this challenge by leveraging real-time production schedules, utilizing every inch of available staging space, and optimizing load configurations to align with supply plan priorities.

“Factories with little or no storage space have been forced to make trade-offs between operational feasibility and transportation efficiency,” said Tom Moore, CEO of ProvisionAi. “Make-n-Ship eliminates that compromise. It dynamically adapts to the production reality, respects the uncertainty in attainment, and still finds a way to maximize trailer fill and minimize freight spend.

The Make-n-Ship capability ensures that the product is deployed to the site that needs it most by closely aligning shipments with the supply plan’s prioritization logic. If a production run is cut short, Make-n-Ship automatically creates the shipment plan to send available product to the highest-need destinations first—those at greatest risk of stockout or those most critical to downstream operations. Conversely, if production exceeds requirements, the system applies customizable business rules to smartly offload the excess, for example, replenishing nearby hubs or “fair sharing” the excess, ensuring the dock stays clear without disrupting the broader supply chain plan.

Key features of Make-n-Ship include:

Intelligent staging space utilization, making optimal use of constrained buffer zones without requiring manual intervention.
Alignment with supply plan priorities, ensuring that the most critical products ship first—even when production variability occurs.
Optimization of shipment size and mode, reducing transportation costs while improving service levels.

This enhancement is now available to all AutoO2 customers and can be implemented with minimal disruption. Companies in food, beverage, consumer products, and other high-volume industries will particularly benefit from this capability where dock congestion and inventory precision are mission-critical.

To learn more about Make-n-Ship and how AutoO2 can transform your factory shipments, contact sales@provisionai.com.

About ProvisionAi
ProvisionAi is the creator of LevelLoad and AutoO2, the only patented solution that seamlessly links supply planning with transportation execution to optimize truckload efficiency and reduce costs. Trusted by Fortune 500 manufacturers and logistics teams, ProvisionAi helps unlock hidden savings and deliver supply chain sustainability at scale.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0c563383-a8bd-4d3c-80af-14f6fa83bd71

The MIL Network –

May 13, 2025

MIL-OSI: Funded Ventures Launches Terrace Wealth in Partnership with Industry Veteran Ryan Bowman to Offer Tailored Wealth Management Solutions

Source: GlobeNewswire (MIL-OSI)

Clayton, Missouri, May 12, 2025 (GLOBE NEWSWIRE) — Funded Ventures, in partnership with industry veteran Ryan Bowman, is proud to announce the launch of Terrace Wealth, a new wealth management firm focused on delivering personalized, fee-only financial solutions. Led by Ryan, Terrace Wealth will provide individuals, families, and institutions with customized strategies for investment management and wealth building.

Ryan is a seasoned CERTIFIED FINANCIAL PLANNER™ with over a decade of experience as a wealth advisor. Ryan was previously a partner at a Denver-based wealth management firm, where he spearheaded the successful transition from Raymond James to an independent, fee-only Registered Investment Advisor (RIA). Ryan has an MBA from Washington University in St. Louis and previously served four years in the United States Army as a combat Infantryman, earning the rank of Sergeant and was awarded the Combat Infantryman Badge. Ryan joined Funded Ventures in 2024 as an Operating Partner to launch Terrace Wealth, bringing his passion for transparent, client-focused financial strategies to the Midwest.

Brian Wolfe founded Funded Ventures in 2017 to buy and build small businesses. Funded Ventures previously co-led the acquisition of three businesses in the SEO SaaS vertical with sale to private equity. Brian is a retired partner at Kirkland & Ellis, where he practiced for 17 years, and teaches courses on entrepreneurship through acquisition and private equity at Washington University in St. Louis, UNC Kenan-Flagler Business School and Northwestern Pritzker School of Law. Brian also serves on the board of many civic organizations including the Skandalaris Center at Washington University in St. Louis and is a member of the Young Presidents’ Organization.

“We are excited to launch Terrace Wealth,” said Ryan. “Our goal is to provide a client-focused, holistic approach to wealth management free of conflicts of interest, combining years of experience with a deep understanding of each client’s financial needs.”

Brian added, “Trust and transparency are essential in building long-term financial relationships. We’re committed to working closely with our clients to create tailored strategies that align with their personal and institutional goals. We’re excited to bring cutting-edge wealth management solutions to the Midwest.”

Terrace Wealth will offer a range of services, including retirement and goal planning, cash and money management, tax optimization, estate planning, and risk management. The firm is dedicated to serving individuals, families, and institutional clients across the Midwest, providing personalized, forward-thinking financial strategies that align with their long-term objectives.

The firm plans to grow organically and via strategic acquisition partnerships, positioning itself for long-term success in the wealth management industry. The ideal acquisition partners are fee-only planning-focused firms offering investment management. Terrace also welcomes partnerships with single-owner practices where the advisor wants (or needs) to pull back from the practice to some degree or to realize a gradual exit that retains value, income, and a more ideal day-to-day.

For more information about Terrace Wealth and services offered, please visit www.terracewealth.com or contact Ryan Bowman at ryan@terracewealth.com or (314) 810-4012.

About Terrace Wealth

Terrace Wealth is a fee-only wealth management firm based in Clayton, Missouri, that provides personalized financial strategies, offering services such as retirement and goal planning, cash and money management and estate planning. Terrace Wealth aims to help clients build and manage wealth by tailoring solutions to meet their unique financial goals.

About Funded Ventures

Funded Ventures was founded in 2017 to acquire and grow small businesses. The firm previously co-led the acquisition of three companies in the SEO SaaS sector, culminating in a successful sale to private equity. Funded Ventures is currently building in the home services, legal services, and home health industries. Visit www.fundedventures.com to learn more.

Press inquiries

Terrace Wealth
https://www.terracewealth.com
Brian Wolfe
wolfebd@gmail.com

The MIL Network –

May 13, 2025

MIL-OSI: NBC Securities Appoints Kim Davis as Chief Growth Officer to Accelerate Strategic Expansion and Innovation

Source: GlobeNewswire (MIL-OSI)

BIRMINGHAM, Ala., May 12, 2025 (GLOBE NEWSWIRE) — NBC Securities, a leading independent full-service broker-dealer and registered investment advisor headquartered in Alabama, is pleased to announce the appointment of Kim Davis as its new Chief Growth Officer (CGO). In this strategic leadership role, Davis will be responsible for driving growth initiatives, expanding market reach, and spearheading innovation across business lines.

With a proven track record in leading the recruitment of financial advisors, boosting productivity and strengthening practice management offerings, Davis brings over 30 years of experience in the financial services industry. She will report directly to John Doody, CEO, working closely with executive leadership to align business development, marketing, and product strategy with the firm’s long-term vision.

“Throughout her distinguished career, Kim has earned a reputation as a trusted advisor and strategic partner to countless financial professionals. She has extensive experience attracting and developing top talent, as well as designing training and support programs that empower financial advisors to expand their businesses,” said CEO John Doody. “I am excited to collaborate with her as she applies her proven expertise to elevate our practice management platform and drive the ambitious growth objectives we have set for ourselves.”

Prior to joining NBC, Davis held senior leadership positions at Concourse Financial, Synovus Securities, Morgan Stanley and Stifel Financial, where she led initiatives that drove significant business growth, including positive year-over-year revenue growth, national expansion and digital transformation.

“I am truly honored to join NBC Securities at such a pivotal time. NBC has long been recognized as a highly respected firm, known for its unwavering commitment to exceptional service, personalized solutions and direct access to the leadership team,” said Davis. “I look forward to building upon on our distinct legacy and continuing to deliver meaningful value to clients, partners, and employees alike.”

This appointment reflects NBC’s commitment to investing in forward-looking strategies that fuel growth, enhance client experience, and position the firm as a market leader.

About NBC

NBC Securities is a privately held, full-service broker-dealer and registered investment advisor, the firm caters to individuals and companies across the United States. They provide private wealth services and asset management strategies from financial professionals who average over 25 years of industry experience, in addition to technology-driven custodial solutions that streamline and optimize operations for advisors nationwide.

They are independent and employee-owned, committed to building lasting relationships and legacies. The firm achieves this through the combined power of our network of advisors, sophisticated suite of business services, and in-house portfolio products and research that spans equities, fixed income, mutual funds, SMA’s, annuities, and life insurance.

NBC Securities manages or advises approximately $5 billion in assets with an operating footprint that spans the US with corporate headquarters located in Birmingham, Alabama and 28 branch offices, including Alabama, Florida, Iowa, Maryland, Minnesota, and Ohio.

For more information, visit www.nbcsecurities.com.

Contact: press@mbcstrategic.com

The MIL Network –

May 13, 2025

Category: GlobeNewswire