Category: Intelligence Agencies

MIL-OSI: NuVista Energy Ltd. Announces Strong First Quarter 2025 Results and Significant Progress on Our Shareholder Return Strategy

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, May 08, 2025 (GLOBE NEWSWIRE) — NuVista Energy Ltd. (“NuVista” or the “Company“) (TSX: NVA) is pleased to announce strong financial and operating results for the three months ended March 31, 2025, and to provide an update on our operational performance. Our high-quality asset base continues to deliver strong returns across commodity price cycles, supported by the consistent achievement of new production milestones. We made significant progress on our NCIB to return capital to shareholders and further enhanced our financial strength by successfully amending and renewing our three-year covenant-based credit facility. Having completed a strong first quarter, we are pleased to reaffirm our annual capital and production guidance.

Operational and Financial Highlights

During the first quarter ended March 31, 2025, NuVista:

Achieved our highest-ever quarterly average production of 89,516 Boe/d, surpassing our guidance range of 87,000 – 88,000 Boe/d and representing a 12% increase in production compared to the first quarter of 2024. The production composition for the first quarter was 28% condensate⁽¹⁾, 10% NGLs and 62% natural gas;
Executed a net capital expenditure⁽³⁾ program of $153.4 million, resulting in the drilling and completion of 9 and 24 wells, respectively;
Generated adjusted funds flow⁽²⁾ of $191.9 million ($0.94/share, basic⁽⁴⁾), reflecting a 42% increase compared to the first quarter of 2024;
Realized free adjusted funds flow⁽³⁾ of $35.0 million ($0.17/share, basic⁽⁴⁾);
Delivered a strong operating netback⁽⁵⁾ at $28.41/Boe and a corporate netback⁽⁵⁾ at $23.84/Boe, reflecting increases of 30% and 28%, respectively, compared to the first quarter of 2024;
Repurchased and cancelled 3.6 million common shares, at an average price of $12.86 per common share, for a total cost of $45.8 million. Since the inception of the Company’s normal course issuer bid (“NCIB”) in 2022, we have repurchased and cancelled 40.5 million common shares for an aggregate cost of $487.3 million or $12.04 per share;
Strengthened our financial position through the amendment and renewal of our three-year covenant-based credit facility, increasing the facility size to $550 million and extending its maturity by one year to May 8, 2028;
Exited the period with $2.7 million of available cash and net debt⁽²⁾ of $267.6 million, maintaining a favorable net debt to annualized first quarter adjusted funds flow⁽²⁾ ratio of 0.3x; and
Achieved net earnings of $112.2 million ($0.55/share, basic), reflecting a 214% increase compared to the first quarter of 2024;

Notes:

(1)	Natural gas liquids are defined by National Instrument 51-101 –Standards of Disclosure for Oil and Gas Activities to include ethane, butane, propane, pentanes plus and condensate. Unless explicitly stated in this press release, references to “NGL” refers only to ethane, butane and propane and references to “condensate” refers to only to condensate and pentanes plus. NuVista has disclosed condensate and pentanes plus values separately from ethane, butane and propane values as NuVista believes it provides a more accurate description of NuVista’s operations and results therefrom.
(2)	Each of “adjusted funds flow”, “net debt” and “net debt to annualized first quarter adjusted funds flow” are capital management measures. Reference should be made to the section entitled “Specified Financial Measures” in this press release.
(3)	Each of “free adjusted funds flow” and “net capital expenditures” are non-GAAP financial measures that do not have any standardized meanings under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. Reference should be made to the section entitled “Specified Financial Measures” in this press release.
(4)	Each of “adjusted funds flow per share” and “free adjusted funds flow per share” are supplementary financial measures. Reference should be made to the section entitled “Specified Financial Measures” in this press release.
(5)	Each of “operating netback” and “corporate netback” are non-GAAP ratios that do not have any standardized meanings under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. Reference should be made to the section entitled “Specified Financial Measures” in this press release.

Operations Update

Operations during the first three months of 2025 have progressed well. We have reached new corporate production milestones facilitated by the consistent utilization of our two drilling rigs and established completions crew.

Notable operational achievements in the first quarter ended March 31, 2025, included:

Sustaining production above 90,000 Boe/d for the month of March, which exhibits our productive capability prior to our planned expansions coming on-stream later in the second quarter of 2025;
Drilling a 4-well Lower and Mid-Montney co-developed pad in Gold Creek, which is slated to come on-stream early in the third quarter of 2025. This pad offsets a 6-well co-developed pad, that in its first year produced an average of 1,250 Boe/d per well (50% condensate), which is 45% above the Gold Creek historical average;
Completing and bringing a 5-well pad in Elmworth online early in the second quarter of 2025. Notably, execution performance on this pad continued to set new benchmarks for the area. These improvements have resulted in average drilling and completion costs per well on the pad coming in 17% below the offsetting pad, which was executed in 2024. Production from this pad will be an important datapoint as development moves toward the higher condensate weighted portion of Elmworth;
Bringing a 5-well pad in Bilbo online in January, which targeted three benches, including the Lower Montney. The pad has reached its IP60 milestone producing on average 1,580 Boe/d per well, including 46% condensate. Importantly, the Lower Montney exceeded the IP60 average, producing 1,850 Boe/d and over 50% condensate; and
Completing a 14-well pad and commencing the drilling of an additional 8-well pad in Pipestone. These wells will underpin our growth into the newly expanded Pipestone infrastructure beginning later in the second quarter.

Return of Capital to Shareholders and Balance Sheet Strength

NuVista’s approach to capital allocation remains unchanged, maintaining a clear focus on the compounding benefits of absolute growth and reducing outstanding shares to deliver industry-leading total returns. We intend to allocate a minimum of $100 million in 2025, to the repurchase of the Company’s common shares under our NCIB and will allocate at least 75% of any incremental annual free adjusted funds flow above $100 million towards additional share repurchases.

Given our strong operational and financial performance year-to-date, and based on our current commodity outlook at US$60/Bbl WTI and US$3.50/MMBtu NYMEX, we expect to generate over $200 million in free adjusted funds flow in 2025, positioning us to materially exceed our minimum threshold for the year.

We remain focused on our disciplined and value-adding growth strategy, and providing significant shareholder returns. We continue to view share repurchases as the most effective initial method of returning capital to shareholders and will reassess this approach as our growth plan progresses.

As at March 31, 2025, we maintained a strong financial position with $2.7 million in cash and no amounts drawn on our covenant-based credit facility, resulting in net debt of $267.6 million. This remains well below our net debt soft ceiling of $350 million, reinforcing our ability to keep net debt to adjusted funds flow at or below 1.0x, even in a stress case of US$45/Bbl WTI and US$2.00/MMBtu NYMEX. For the first quarter, our net debt to annualized adjusted funds flow was 0.3x.

Further strengthening our financial position, on May 8, 2025, we renewed and amended our three-year, covenant-based credit facility, increasing its facility size by $100 million from $450 million to $550 million and extending the maturity by one year to May 8, 2028.

Board Retirement Update

After 22 years of leadership at NuVista, Mr. Ronald (Ron) Poelzer has decided to retire from our Board, and as such, will not be standing for re-election at this year’s annual shareholders’ meeting. Ron has been a distinguished leader and steadfast advocate for the oil and gas industry, leaving a lasting legacy through the many individuals he has worked with and mentored. As a co-founder of NuVista, he has played a vital role on our board and has been instrumental in shaping NuVista into the strong industry player we are today. His strategic insight, vision, and leadership have helped guide our growth and position us for long-term success.

The Board of Directors, management team, and all of us at NuVista extend our deepest gratitude to Ron for his invaluable contributions since the Company’s inception in 2003, and we thank him for his long and impactful service while wishing him and his family continued success and happiness in retirement.

2025 Guidance Update

Production thus far in 2025 has continued to perform well, with NuVista exceeding first quarter guidance. As previously communicated, the majority of our 2025 growth will come from the Pipestone area with the start-up of a third-party gas plant (“Pipestone Plant”), which is expected to be online late in the second quarter of 2025. Additionally, our annual guidance reflects the planned 4-year turnaround operations that are scheduled to impact production from our Pipestone South, Gold Creek and Elmworth operations during June and July. As such, our second quarter production guidance is 75,000 – 77,000 Boe/d. Subsequent to the planned turnaround and commissioning of the Pipestone Plant, the infrastructure will be in place to support production of approximately 100,000 Boe/d in the fourth quarter of 2025. We reiterate our annual production guidance of approximately 90,000 Boe/d.

Further we reaffirm our annual net capital expenditure guidance target of approximately $450 million, which will allow us to continue to prioritize at least a triple-digit return of capital to shareholders through the repurchase of our outstanding common shares. However, given recent volatility we continue to monitor the macro environment with a focus on prioritizing economics and returns, as such, if commodity prices continue to weaken and persist, we have the flexibility to adjust our capital program to maximize shareholder returns and preserve our growth economics for a more robust price environment.

Please note that our updated corporate presentation will be available at www.nuvistaenergy.com on May 8, 2025. NuVista’s management’s discussion and analysis, condensed consolidated interim financial statements for the three months ended March 31, 2025 and notes thereto, will be filed on SEDAR+ (www.sedarplus.ca) on May 8, 2024 and can also be obtained at www.nuvistaenergy.com.

FINANCIAL AND OPERATING HIGHLIGHTS
	Three months ended March 31
($ thousands, except otherwise stated)	2025		2024		% Change
FINANCIAL
Petroleum and natural gas revenues	371,405		309,024		20
Cash provided by operating activities	232,663		147,893		57
Adjusted funds flow ⁽³⁾	191,886		135,413		42
Per share, basic ⁽⁶⁾	0.94		0.65		45
Per share, diluted ⁽⁶⁾	0.94		0.64		47
Net earnings	112,152		35,769		214
Per share, basic	0.55		0.17		224
Per share, diluted	0.55		0.17		224
Total assets	3,579,218		3,134,976		14
Net capital expenditures ⁽¹⁾	153,411		187,856		(18	)
Net debt ⁽³⁾	267,568		261,171		2
OPERATING
Daily Production
Natural gas (MMcf/d)	334.8		292.8		14
Condensate (Bbls/d)	25,178		24,220		4
NGLs (Bbls/d)	8,542		7,022		22
Total (Boe/d)	89,516		80,042		12
Condensate & NGLs weighting	38%		39%
Condensate weighting	28%		30%
Average realized selling prices ⁽⁵⁾
Natural gas ($/Mcf)	3.91		3.08		27
Condensate ($/Bbl)	98.17		95.10		3
NGLs ($/Bbl) ⁽⁴⁾	40.53		27.23		49
Netbacks ($/Boe)
Petroleum and natural gas revenues	46.10		42.43		9
Realized gain (loss) on financial derivatives	2.18		(0.18	)	(1,311	)
Other income	0.01		0.05		(80	)
Royalties	(3.89	)	(4.47	)	(13	)
Transportation expense	(4.75	)	(4.47	)	6
Net operating expense ⁽²⁾	(11.24	)	(11.51	)	(2	)
Operating netback ⁽²⁾	28.41		21.85		30
Corporate netback ⁽²⁾	23.84		18.58		28
SHARE TRADING STATISTICS
High ($/share)	14.51		12.11		20
Low ($/share)	10.61		9.59		11
Close ($/share)	13.60		11.88		14
Common shares outstanding (thousands of shares)	200,664		206,332		(3	)

Notes:

⁽¹⁾	Non-GAAP financial measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. Reference should be made to the section entitled“Specified Financial Measures”.
⁽²⁾	Non-GAAP ratio that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. Reference should be made to the section entitled“Specified Financial Measures”.
⁽³⁾	Capital management measure. Reference should be made to the section entitled“Specified Financial Measures”.
⁽⁴⁾	Natural gas liquids (“NGLs”) includes butane, propane and ethane revenue and sales volumes, and sulphur revenue.
⁽⁵⁾	Product prices exclude realized gains/losses on financial derivatives.
⁽⁶⁾	Supplementary financial measure. Reference should be made to the section entitled“Specified Financial Measures”.

Advisories Regarding Oil and Gas Information

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Any references in this press release to initial production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for NuVista.

This press release contains certain oil and gas metrics, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate NuVista’s performance; however, such measures are not reliable indicators of NuVista’s future performance and future performance may not compare to NuVista’s performance in previous periods and therefore such metrics should not be unduly relied upon. Management uses these oil and gas metrics for its own performance measurements and to provide security holders with measures to compare NuVista’s operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this presentation, should not be relied upon for investment or other purposes.

In this press release reference is made to 2025 price outlook in the forecast of annual free adjusted funds flow. The forecast is based on 2025 price assumptions of: US$60/Bbl WTI, US$3.50/MMBtu NYMEX, C$1.95/GJ AECO and 1.38:1 CAD:USD FX.

Basis of presentation

Unless otherwise noted, the financial data presented in this press release has been prepared in accordance with Canadian generally accepted accounting principles (“GAAP”) also known as International Financial Reporting Standards (“IFRS”).

Natural gas liquids are defined by National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities” to include ethane, butane, propane, pentanes plus and condensate. Unless explicitly stated in this press release, references to “NGL” refers only to ethane, butane and propane and references to “condensate” refers to only to condensate and pentanes plus. NuVista has disclosed condensate and pentanes plus values separately from ethane, butane and propane values as NuVista believes it provides a more accurate description of NuVista’s operations and results therefrom.

Production split for Boe/d amounts referenced in the press release are as follows:

*Reference*	*Total Boe/d*	*Natural Gas* %		*Condensate* %		*NGLs* %

Q1 2025 production – actual	*89,516*	62	%	28	%	10	%
Q1 2025 production – guidance	*87,000 – 88,000*	63	%	28	%	9	%
Q2 2025 production – guidance	*75,000 – 77,000*	62	%	29	%	9	%
2025 annual production guidance	*~90,000*	61	%	30	%	9	%

Advisory regarding forward-looking information and statements

This press release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable securities laws. The use of any of the words “will”, “expects”, “believe”, “plans”, “potential” and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward looking statements, including but not limited to:

that the amendment and renewal of our three-year covenant-based credit facility will strengthen our financial position;
our expectation that a 4-well Lower and Mid-Montney co-development pad in Gold Creek will be brought on-stream in the second quarter;
our expectation that an 8-well pad in Pipestone will be brought on-steam late in the third quarter and the anticipated benefits therefrom;
our expectations regarding production from the 5-well pad in Elmworth and the anticipated benefits therefrom;
our expectation that we will generate $200 million in free adjusted funds flow in 2025;
our intention to allocate $100 million to repurchase our common shares in 2025, with at least 75% of any incremental free adjusted funds flow also allocated to the repurchase of our common share pursuant to our NCIB;
our expectation that we will have fulfilled the $100 million repurchase commitment to shareholders in the first half of the year;
that our soft ceiling net debt will allow our current production levels to be sustainable and maintain an adjusted funds flow ratio below 1.0x in a stress test price environment of US$45/Bbl WTI and US$2.00/MMBtu NYMEX;
NuVista’s ability to continue directing free adjusted funds flow towards a prudent balance of return of capital to shareholders and debt reduction, while investing in high return growth projects;
the anticipated allocation of free adjusted funds flow;
guidance with respect to second quarter 2025 production and production mix;
the expected timing of start-up of the Pipestone Plant and the anticipated benefits thereof;
our expectations that following the planned turnaround and commissioning of the Pipestone Plant, the infrastructure will be in place to support production of approximately 100,000 Boe/d in the fourth quarter of 2025;
our 2025 full year production, full year production mix and net capital expenditures guidance ranges;
our plan to continue to maintain an efficient drilling program by employing 2-drill-rig execution;
our future focus, strategy, plans, opportunities and operations; and
other such similar statements.

The future acquisition of our common shares pursuant to a share buyback (including through our normal course issuer bid), if any, and the level thereof is uncertain. Any decision to acquire common shares pursuant to a share buyback will be subject to the discretion of the Board of Directors and may depend on a variety of factors, including, without limitation, the Company’s business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and satisfaction of the solvency tests imposed on the Company under applicable corporate law. There can be no assurance of the number of common shares that the Company will acquire pursuant to a share buyback, if any, in the future.

By their nature, forward-looking statements are based upon certain assumptions and are subject to numerous risks and uncertainties, some of which are beyond NuVista’s control, including the impact of general economic conditions, industry conditions, current and future commodity prices and inflation rates; that (i) the tariffs that are currently in effect on goods exported from or imported into Canada continue in effect for an extended period of time, the tariffs that have been threatened are implemented, that tariffs that are currently suspended are reactivated, the rate or scope of tariffs are increased, or new tariffs are imposed, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the U.S., will trigger a broader global trade war which could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company, including by decreasing demand for (and the price of) oil and natural gas, disrupting supply chains, increasing costs, causing volatility in global financial markets, and limiting access to financing; the impact of ongoing global events, including Middle East and European tensions, with respect to commodity prices, currency and interest rates, anticipated production rates, borrowing, operating and other costs and adjusted funds flow; the timing, allocation and amount of net capital expenditures and the results therefrom; anticipated reserves and the imprecision of reserve estimates; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted net capital expenditures in carrying out planned activities; access to infrastructure and markets; competition from other industry participants; availability of qualified personnel or services and drilling and related equipment; stock market volatility; effects of regulation by governmental agencies including changes in environmental regulations, tax laws and royalties; the ability to access sufficient capital from internal sources and bank and equity markets; that we will be able to execute our 2025 drilling plans as expected; our ability to carry out our 2025 production and capital guidance as expected, and by extension the oil and gas industry; and including, without limitation, those risks considered under “Risk Factors” in our Annual Information Form.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. NuVista’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, or if any of them do so, what benefits NuVista will derive therefrom. NuVista has included the forward-looking statements in this press release in order to provide readers with a more complete perspective on NuVista’s future operations and such information may not be appropriate for other purposes. NuVista disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This press release also contains financial outlook and future oriented financial information (together, “FOFI”) relating to NuVista including, without limitation, net capital expenditures in 2025, production and free adjusted funds flow which are based on, among other things, the various assumptions disclosed in this press release including under “Advisory regarding forward-looking information and statements” and including assumptions regarding benchmark pricing as it relates to the 2025 capital allocation framework. Notwithstanding the foregoing, the FOFI contained in this press release does not include the potential impact of tariff or trade-related regulation that have been announced by the U.S. and Canada, including the tariffs imposed by the U.S. on Canada effective March 4, 2025. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and the impact of the tariffs on NuVista’s business operations and financial condition, while currently unknown, may be material and adverse and, as such, undue reliance should not be placed on FOFI. NuVista’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits NuVista will derive therefrom. NuVista has included the FOFI in order to provide readers with a more complete perspective on NuVista’s future operations and such information may not be appropriate for other purposes.

These forward-looking statements and FOFI are made as of the date of this press release and NuVista disclaims any intent or obligation to update any forward-looking statements and FOFI, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities law.

Specified Financial Measures

This press release uses various specified financial measures (as such terms are defined in National Instrument 52-112 – Non-GAAP Disclosure and Other Financial Measures Disclosure (“NI 51-112”)) including “non-GAAP financial measures”, “non-GAAP ratios”, “capital management measures” and “supplementary financial measures” (as such terms are defined in NI 51-112), which are described in further detail below. Management believes that the presentation of these non-GAAP measures provides useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.

(1) Non-GAAP financial measures

NI 52-112 defines a non-GAAP financial measure as a financial measure that: (i) depicts the historical or expected future financial performance, financial position or cash flow of an entity; (ii) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity; (iii) is not disclosed in the financial statements of the entity; and (iv) is not a ratio, fraction, percentage or similar representation.

These non-GAAP financial measures are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar measures presented by other companies where similar terminology is used. Investors are cautioned that these measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP measures as indicators of NuVista’s performance. Set forth below are descriptions of the non-GAAP financial measures used in this press release.

Free adjusted funds flow

Free adjusted funds flow is adjusted funds flow less net capital expenditures, power generation expenditures, and asset retirement expenditures. Each of the components of free adjusted funds flow are non-GAAP financial measures. Please refer to disclosures under the headings “Capital management measures” and “Net capital expenditures” for a description of each component of free adjusted funds flow. Management uses free adjusted funds flow as a measure of the efficiency and liquidity of its business, measuring its funds available for additional capital allocation to manage debt levels and return capital to shareholders through its NCIB program and/or dividend payments. By removing the impact of current period net capital and asset retirement expenditures, management believes this measure provides an indication of the funds NuVista has available for future capital allocation decisions.

The following table sets out our free adjusted funds flow compared to the most directly comparable GAAP measure of cash provided by operating activities less cash used in investing activities for the applicable periods:

	Three months ended March 31
($ thousands)	2025		2024
Cash provided by operating activities	232,663		147,893
Cash used in investing activities	(178,028	)	(166,027	)
Excess cash provided by operating activities over cash used in investing activities	54,635		(18,134	)

Adjusted funds flow	191,886		135,413
Net capital expenditures	(153,411	)	(187,856	)
Power generation expenditures	—		(1,680	)
Asset retirement expenditures	(3,480	)	(6,450	)
Free adjusted funds flow	34,995		(60,573	)

Net Capital expenditures

Net capital expenditures are equal to cash used in investing activities, excluding changes in non-cash working capital, other asset expenditures, and power generation expenditures. The Company includes funds used for property acquisitions or proceeds from property dispositions within net capital expenditures as these transactions are part of its development plans. NuVista considers net capital expenditures to represent its organic capital program inclusive of capital spending for acquisition and disposition proposes and a useful measure of cash flow used for capital reinvestment. There were no differences between capital expenditures and net capital expenditures for the three months ended March 31, 2025, and March 31, 2024, as NuVista did not complete any property acquisitions or dispositions during these periods.

The following table provides a reconciliation between the non-GAAP measure of net capital expenditures to the most directly comparable GAAP measure of cash used in investing activities for the applicable periods:

	Three months ended March 31
($ thousands)	2025		2024
Cash used in investing activities	(178,028	)	(166,027	)
Changes in non-cash working capital	(398	)	(23,509	)
Other asset expenditures	25,015		—
Power generation expenditures	—		1,680
Net capital expenditures	(153,411	)	(187,856	)

The following table provides a breakdown of net capital expenditures and power generation expenditures by category for the applicable periods:

	Three months ended March 31
($ thousands, except % amounts)	2025	% of total	2024	% of total
Land and retention costs	—	—	964	—
Geological and geophysical	363	—	185	—
Drilling and completion	131,494	86	128,965	69
Facilities and equipment	19,720	13	56,101	30
Corporate and other	1,834	1	1,641	1
Net capital expenditures	153,411		187,856
Power generation expenditures	—		1,680

(2) Non-GAAP ratios

NI 52-112 defines a non-GAAP ratio as a financial measure that: (i) is in the form of a ratio, fraction, percentage or similar representation; (ii) has a non-GAAP financial measure as one or more of its components; and (iii) is not disclosed in the financial statements of the entity. Set forth below is a description of the non-GAAP ratios used in this MD&A.

These non-GAAP ratios are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar measures presented by other companies where similar terminology is used. Investors are cautioned that these ratios should not be construed as alternatives to or more meaningful than the most directly comparable IFRS Accounting Standards measures as indicators of NuVista’s performance.

Per Boe disclosures for petroleum and natural gas revenues, realized gains/losses on financial derivatives, royalties, transportation expense, G&A expense, financing costs, and DD&A expense are non-GAAP ratios that are calculated by dividing each of these respective GAAP measures by NuVista’s total production volumes for the period.

Non-GAAP ratios presented on a “per Boe” basis may also be considered to be supplementary financial measures (as such term is defined in NI 51-112).

Operating netback and corporate netback (“netbacks”), per Boe NuVista calculated netbacks per Boe by dividing the netbacks by total production volumes sold in the period. Each of operating netback and corporate netback are non-GAAP financial measures. Operating netback is calculated as petroleum and natural gas revenues, realized financial derivative gains/losses and other income, less royalties, transportation expense and net operating expense. Corporate netback is operating netback less general and administrative expense, cash share-based compensation expense (recovery), financing costs excluding accretion expense, and current income tax expense (recovery).
Management believes both operating and corporate netbacks are key industry benchmarks and measures of operating performance for NuVista that assists management and investors in assessing NuVista’s profitability, and are commonly used by other petroleum and natural gas producers. The measurement on a Boe basis assists management and investors with evaluating NuVista’s operating performance on a comparable basis.

Net operating expense, per BoeNuVista calculated net operating expense per Boe by dividing net operating expense by NuVista’s production volumes for the period.
Management believes that net operating expense, calculated as gross operating expense less processing income and other recoveries, which are included in NuVista’s statements of earnings, is a meaningful measure for investors to understand the net impact of the Company’s operating activities. The measurement on a Boe basis assists management and investors with evaluating NuVista’s operating performance on a comparable basis.

(3) Capital management measures

NI 52-112 defines a capital management measure as a financial measure that: (i) is intended to enable an individual to evaluate an entity’s objectives, policies and processes for managing the entity’s capital; (ii) is not a component of a line item disclosed in the primary financial statements of the entity; (iii) is disclosed in the notes to the financial statements of the entity; and (iv) is not disclosed in the primary financial statements of the entity.

NuVista has defined net debt, adjusted funds flow, and net debt to annualized fourth quarter adjusted funds flow ratio as capital management measures used by the Company in this press release.

Adjusted funds flow

NuVista considers adjusted funds flow to be a key measure that provides a more comprehensive view of the company’s ability to generate cash flow necessary for financing capital expenditures, meeting asset retirement obligations, and fulfilling its financial commitments. Adjusted funds flow is calculated by adjusting cash flow from operating activities to exclude changes in non-cash working capital and asset retirement expenditures. Management believes these elements are subject to timing variations in collection, payment, and occurrence. By excluding them, management is able to provide a more meaningful performance measure of NuVista’s ongoing operations. Specifically, expenditures on asset retirement obligations may fluctuate depending on the company’s capital programs and the maturity of its operating areas, while environmental remediation recovery is tied to an infrequent incident that management does not expect to recur regularly. The settlement of asset retirement obligations is managed through NuVista’s capital budgeting process, which incorporates the available adjusted funds flow.

A reconciliation of adjusted funds flow is presented in the following table:

	Three months ended March 31
		2025		2024
Cash provided by operating activities	$	232,663	$	147,893
Asset retirement expenditures		3,480		6,450
Change in non-cash working capital	(44,257)		(18,930)
Adjusted funds flow	$	191,886	$	135,413

Net debt is used by management to provide a more comprehensive understanding of NuVista’s capital structure and to assess the company’s liquidity. NuVista calculates net debt by considering cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable and accrued liabilities, long-term debt (the credit facility), senior unsecured notes, and other liabilities. Management uses total market capitalization and the ratio of net debt to annualized adjusted funds flow for the current quarter to analyze balance sheet strength and liquidity.

The following is a summary of total market capitalization, net debt and net debt to annualized current quarter adjusted funds flow:

	March 31, 2025		December 31, 2024
Basic common shares outstanding (thousands of shares)		200,664		203,701
Share price⁽¹⁾	$	13.60	$	13.82
Total market capitalization	$	2,729,030	$	2,815,148
Cash and cash equivalents	$	(2,677)	$	—
Accounts receivable and other		(135,657)		(132,538)
Prepaid expenses		(47,985)		(45,584)
Accounts payable and accrued liabilities		256,804		206,862
Current portion of other liabilities		16,907		18,351
Long-term debt		—		5,353
Senior unsecured notes		163,698		163,258
Other liabilities		16,478		16,801
Net debt	$	267,568	$	232,503
Annualized current quarter adjusted funds flow	$	767,544	$	548,236
Net debt to annualized current quarter adjusted funds flow		0.3		0.4

⁽¹⁾ Represents the closing share price on the TSX on the last trading day of the period.

(4) Supplementary financial measures

This press release may contain certain supplementary financial measures. NI 52-112 defines a supplementary financial measure as a financial measure that: (i) is intended to be disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of an entity; (ii) is not disclosed in the financial statements of the entity; (iii) is not a non-GAAP financial measure; and (iv) is not a non-GAAP ratio.

NuVista calculates “adjusted funds flow per share” by dividing adjusted funds flow for a period by the number of weighted average common shares of NuVista for the specified period by dividing operating netback for a period by the number of weighted average common shares of NuVista for the specified period.

FOR FURTHER INFORMATION CONTACT:

Mike J. Lawford	Ivan J. Condic
President and CEO	VP, Finance and CFO
(403) 538-1936	(403) 538-1945

The MIL Network –

May 9, 2025

MIL-OSI: VAALCO Energy, Inc. Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

HOUSTON, May 08, 2025 (GLOBE NEWSWIRE) — VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“Vaalco” or the “Company”) today reported operational and financial results for the first quarter of 2025.

First Quarter 2025 Highlights and Recent Key Items:

Reported net income of $7.7 million ($0.07 per diluted share), Adjusted Net Income of $6.3 million ($0.06 per diluted share) and Adjusted EBITDAX⁽¹⁾of $57.0 million;
Produced 17,764 net revenue interest (“NRI”)⁽²⁾barrels of oil equivalent per day (“BOEPD”), above the high end of guidance, or 22,402 working interest (“WI”)⁽³⁾BOEPD, toward the high end of guidance;
Sold 19,074 NRI BOEPD, toward the high end of guidance;
Entered into new reserves based revolving credit facility with an initial commitment of $190 million with the ability to grow to $300 million, secured against certain Vaalco assets;
Reduced full year capital expenditure guidance by about 10%, without impacting full year production or sales guidance;
Acquired 70% WI⁽³⁾in and will operate the CI-705 block in offshore Côte D’Ivoire;
Declared quarterly cash dividend of $0.0625 per share of common stock to be paid on June 27, 2025; and
Announced that it will host a Capital Markets Day presentation on Wednesday, May 14, 2025.

(1)	Adjusted EBITDAX, Adjusted Net Income, Adjusted Working Capital and Free Cash Flow are Non-GAAP financial measures and are described and reconciled to the closest GAAP measure in the attached table under “Non-GAAP Financial Measures.”
(2)	All NRI sales and production rates are Vaalco’s working interest volumes less royalty volumes, where applicable.
(3)	All WI production rates and volumes are Vaalco’s working interest volumes, where applicable.

George Maxwell, Vaalco’s Chief Executive Officer commented, “We delivered another successful quarter, once again meeting or exceeding our guidance. Sales for the first quarter were toward the high end of guidance and our NRI production was above the high end of guidance, leading to solid net income of $0.07 per diluted share and Adjusted EBITDAX of $57.0 million. We continue to execute our strategic vision, with multiple accomplishments achieved in the first quarter that lay the foundation for profitable growth in 2025 and beyond. We entered into a new credit facility that will supplement our internally generated cash flow and cash balance to assist in funding our robust organic growth projects. In Côte D’Ivoire, we commenced the FPSO refurbishment project and are preparing for a drilling campaign in 2026 to augment the production and economic life of the Baobab field. In Gabon, we are preparing for the 2025/2026 drilling program which is scheduled to begin in Q3 2025. While we are continuing with these two major projects, we have decided to reduce our capital expenditure budget for 2025 by about 10%. We are delaying discretionary capital spending and are deferring our capital program in Canada. We are doing all of this without impacting production or sales forecasts for 2025 due to the strong performance of our assets in Gabon and Egypt.”

“We believe that we are well positioned to fund the meaningful growth and opportunities that we have planned over the next few years which should lead to even greater growth and value for the remainder of the decade. We look forward to providing additional details at our Capital Markets Day next week describing our diversified asset portfolio and the upside that we believe is available to drive future organic growth.”

Operational Update

Egypt

The start of the 2024 drilling campaign was deferred until late 2024. In Q4 2024, we completed one well. In Q1 2025, we completed an additional five wells. Four of the five wells that were completed in Q1 2025 were brought online and had an average initial production rate for the first 30 days of approximately 135 barrels of oil per day (“BOPD”). The fifth well was brought online in early Q2 2025. In addition to all new wells successfully increasing production levels, new reserves and a new production zone were discovered in the Bakr formation. The Company is reviewing several options to improve flow as the reservoir contains heavier oil.

The Company continues to perform detailed technical reviews of its newly drilled and existing wells while also continuing to work on enhancing production through a series of planned workovers and recompletions.

Canada

In the first half of 2024, Vaalco drilled and completed four 2.75 mile lateral wells in Canada. These wells continue to meet production expectations and the Company is monitoring their longer-term performance for future drilling opportunities. In 2025, Vaalco has decided to defer the drilling of additional wells in Canada to reduce the Company’s overall capital expenditures.

Gabon

The Company secured a drilling rig in December 2024 in conjunction with its 2025/2026 drilling program, which is planned to begin in Q3 2025 to drill multiple development wells, and appraisal or exploration wells, as well as to perform workovers, with options to drill additional wells. Vaalco plans to drill the wells at both the Etame platform and at the Seent platform, and perform a re-drill and several workovers in the Ebouri field to access production and reserves that were previously shut in and removed from proved reserves due to the presence of hydrogen sulfide (“H₂S”).

In Q1 2025, Vaalco conducted an extended flow test on the Ebouri 4-H well to gather information on the H₂S concentrations at this location to aid in equipment design and to evaluate Vaalco’s chemical crude sweetening process. The well has flowed for over four months, and the H₂S concentration is within modeling expectations, demonstrating Vaalco’s ability to treat the oil. The well has provided additional production, with some additional operating costs associated with the chemical treatment, adding to the Company’s strong first quarter results.

Côte d’Ivoire

As part of the planned dry dock refurbishment, the Baobab Floating Production Storage and Offloading vessel (“FPSO”) ceased hydrocarbon production on January 31, 2025 and the final lifting of crude oil from the FPSO took place in February 2025. The vessel departed from the field in late March 2025 and is now currently under tow to the shipyard in Dubai for the refurbishment. Significant development drilling is expected to begin in 2026 after the FPSO is expected to return to service with potential meaningful additions to production from the main Baobab field in CI-40, as well as a potential future development of the Kossipo field, which is also on the license.

In March 2025, Vaalco announced that it had farmed into the CI-705 block offshore Côte d’Ivoire. Vaalco is the operator of the block with a 70% WI and a 100% paying interest through a commercial carry arrangement and is partnering with Ivory Coast Exploration Oil & Gas SAS and PETROCI. The CI-705 block is located in the prolific Tano basin and is approximately 70 kilometers (“km”) to the west of Vaalco’s CI-40 Block, where the Baobab and Kossipo oil fields are located, and 60 km west of ENI’s recent Calao discovery. Block CI-705 covers approximately 2,300 km² and is lightly explored with three wells drilled to date on the block. The water depth across the block ranges from zero to 2,500 meters. Vaalco has invested $3 million to acquire its interest in the new block, which it believes has significant prospectivity.

Financial Update – First Quarter of 2025

Vaalco reported net income of $7.7 million ($0.07 per diluted share) for Q1 2025, which was down 34% compared with net income of $11.7 million ($0.11 per diluted share) in Q4 2024 and up modestly compared to $7.7 million ($0.07 per diluted share) in Q1 2024. The decrease in earnings compared with Q4 2024 was driven by lower sales volume in Q1 2025 of 1,717 MBOE compared to a sales volume of 1,872 MBOE in Q4 2024 and higher production expense, partially offset by lower depreciation, depletion and amortization (“DD&A”) and lower income tax expense.

Adjusted EBITDAX totaled $57.0 million in Q1 2025, a 25% decrease from $76.2 million in Q4 2024. The decrease was primarily due to lower sales volumes and higher production expense. Adjusted EBITDAX was down 8% from $61.7 million generated in Q1 2024.

Quarterly Summary – Sales and Net Revenue
$ in thousands	Three Months Ended March 31, 2025														Three Months Ended December 31, 2024
	Gabon			Egypt			Canada			Côte d’Ivoire		Total			Gabon			Egypt			Canada			Côte d’Ivoire		Total
Oil Sales		59,864			57,656			5,325			18,042	$	140,887			54,172			59,010			6,685			28,045	$	147,912
NGL Sales		—			—			1,808			—		1,808			—			—			1,965			—		1,965
Gas Sales		—			—			636			—		636			—			—			421			—		421
Gross Sales		59,864			57,656			7,769			18,042		143,331			54,172			59,010			9,071			28,045		150,298

Selling Costs & Carried Interest		—			(149	)		(232	)		—		(381	)		450			(130	)		(319	)		—		1
Royalties & Taxes		(7,677	)		(23,587	)		(1,357	)		—		(32,621	)		(7,455	)		(19,899	)		(1,224	)		—		(28,578	)

Net Revenue		52,187			33,920			6,180			18,042		110,329			47,167			38,981			7,528			28,045		121,721

Oil Sales MMB (working interest)		757			920			80			238		1,995			733			923			99			379		2,134
Average Oil Price Received	$	79.09		$	62.49		$	66.17		$	75.87	$	70.61		$	73.92		$	63.92		$	67.68		$	73.90	$	69.30
Change													2	%
Average Brent Price												$	75.87													$	74.66
Change													2	%

Gas Sales MMCF (working interest)		—			—			413			—		413			—			—			431			—		431
Average Gas Price Received		—			—		$	1.54			—	$	1.54			—			—		$	0.98			—	$	0.98
Change													57	%
Average Aeco Price ($USD)		—			—		$	1.43			—	$	1.43			—			—		$	1.36			—	$	1.36
Change													5	%

NGL Sales MMB (working interest)		—			—			69			—		69			—			—			75			—		75
Average Liquids Price Received		—			—		$	26.39			—	$	26.39			—			—		$	26.22			—	$	26.22
Change													1	%


Revenue and Sales	Q1 2025		Q1 2024		% Change Q1 2025 vs. Q1 2024		Q4 2024		% Change Q1 2025 vs. Q4 2024
Production (NRI BOEPD)		17,764		16,848	5	%		20,775	(14	%)
Sales (NRI BOE)		1,717,000		1,490,000	15	%		1,872,000	(8	%)
Realized commodity price ($/BOE)	$	64.27	$	66.43	(3	%)	$	64.77	(1)%
Commodity (Per BOE including realized commodity derivatives)	$	64.34	$	66.41	(3	%)	$	64.48	—	%
Total commodity sales ($MM)	$	110.3	$	100.2	10	%	$	121.7	(9	%)

In Q1 2025, Vaalco had a net revenue decrease of $11.4 million or 9% compared to Q4 2024 as total NRI sales volumes of 1,717 MBOE was 8% lower than the Q4 2024 volumes of 1,872 MBOE but was 15% higher compared to 1,490 MBOE for Q1 2024, primarily due to production from the Cote d’Ivoire assets acquired in April 2024. Q1 2025 NRI sales were toward the high end of Vaalco’s guidance.

Costs and Expenses	Q1 2025			Q1 2024			% Change Q1 2025 vs. Q1 2024		Q4 2024			% Change Q1 2025 vs. Q4 2024
Production expense, excluding offshore workovers and stock comp ($MM)	$	44.7		$	32.1		39	%	$	36.5		23	%
Production expense, excluding offshore workovers ($/BOE)	$	26.08		$	21.58		21	%	$	19.52		34	%
Offshore workover expense ($MM)	$	—		$	(0.1	)	—	%	$	0.1		—	%
Depreciation, depletion and amortization ($MM)	$	30.3		$	25.8		17	%	$	37.0		(18	%)
Depreciation, depletion and amortization ($/BOE)	$	17.65		$	17.30		2	%	$	19.79		(11	%)
General and administrative expense, excluding stock-based compensation ($MM)	$	7.8		$	5.9		31	%	$	7.1		9	%
General and administrative expense, excluding stock-based compensation ($/BOE)	$	4.51		$	3.90		16	%	$	3.80		19	%
Stock-based compensation expense ($MM)	$	1.4		$	0.9		50	%	$	1.4		(3	%)
Current income tax expense (benefit) ($MM)	$	17.7		$	25.7		(31	%)	$	26.2		(32)%
Deferred income tax expense (benefit) ($MM)	$	(1.6	)	$	(3.4	)	(53	%)	$	(9.0	)	(82	%)

Total production expense (excluding offshore workovers and stock compensation) of $44.7 million in Q1 2025 increased by 23% compared to Q4 2024 and 39% compared to Q1 2024. The increase in Q1 2025 compared to Q1 2024 was primarily driven by higher expenses in Gabon related to government audit settlements of approximately $4.7 million (net to Vaalco), additional chemical costs associated with the H₂S treatment and to the increased sales associated with the purchase of the Côte d’Ivoire asset. The increase in Q1 2025 compared to Q4 2024 was driven by higher expenses in Gabon related to the government audit settlements and higher chemical costs.

DD&A expense for Q1 2025 was $30.3 million which was lower than $37.0 million in Q4 2024 and higher than $25.8 million in Q1 2024. The decrease in Q1 2025 DD&A expense compared to Q4 2024 is due primarily to the impact of the year end 2024 depletion adjustments based on the year end reserve reports. The increase in Q1 2025 DD&A expense compared to Q1 2024 is due to higher depletable costs in Côte d’Ivoire partially offset by lower depletable costs in Gabon, Egypt, and Canada.

General and administrative (“G&A”) expense, excluding stock-based compensation, increased slightly to $7.8 million in Q1 2025 from $7.1 million in Q4 2024 and increased from $5.9 million in Q1 2024. The increase in G&A expenses compared to Q1 2024 was primarily due to higher professional service fees, salaries and wages, and accounting and legal fees. Q1 2025 cash G&A was within the Company’s guidance.

Non-cash stock-based compensation expense was $1.4 million for Q1 2025 compared to $0.9 million for Q1 2024. Non-cash stock-based compensation expense for Q4 2024 was $1.4 million.

Other income (expense), net, was an expense of $2.4 million for Q1 2025, compared to an expense of $2.3 million during Q1 2024 and an expense of $9.7 million for Q4 2024. Other income (expense), net, normally consists of foreign currency losses and interest expense, net. Also in Q4 2024, the Company recorded a reduction in the bargain purchase gain of $6.4 million as a result of the change in fair value estimates of the net assets acquired in the Svenska acquisition.

Income tax expense (benefit) was an expense for Q1 2025 of $16.1 million and is comprised of current expense of $17.7 million and deferred tax benefit of $1.6 million. In Q1 2024, income tax expense was $22.3 million and is comprised of current expense of $25.7 million and deferred tax benefit of $3.4 million. Q4 2024 income tax expense was $17.2 million, and is comprised of current tax expense of $26.2 million and deferred tax benefit of $9.0 million.

Taxes paid by jurisdiction are as follows:

(in thousands)

Gabon

Egypt

Canada

Equatorial Guinea

Cote d’Ivoire

Corporate and Other

Total

Cash/In Kind Taxes Paid:

Three months ended March 31, 2025

30,253

6,953

—

790

—

37,996

Capital Investments/Balance Sheet

For the first quarter of 2025, net capital expenditures totaled $58.5 million on a cash basis and $51.3 million on an accrual basis. These expenditures were primarily related to costs associated with project costs and long lead items for Gabon and Côte d’Ivoire and the development drilling program in Egypt.

At the end of the first quarter of 2025, Vaalco had an unrestricted cash balance of $40.9 million. Working capital at March 31, 2025 was $23.2 million compared with $56.2 million at December 31, 2024, while Adjusted Working Capital at March 31, 2025 totaled $40.4 million.

In March 2025, Vaalco entered into a new reserves based revolving credit facility (the “new facility”) with an initial commitment of $190 million and the ability to grow to $300 million, led by The Standard Bank of South Africa Limited, Isle of Man Branch with other participating banks and financial partners. The new facility, which is subject to customary administrative conditional precedents, replaces the Company’s existing undrawn revolving credit facility that was provided by Glencore Energy UK Ltd. The Company arranged the new facility primarily to provide short-term funding that may be needed from time-to-time to supplement its internally generated cash flow and cash balance as it executes its planned investment programs across its diversified asset base over the next few years.

Quarterly Cash Dividend

Vaalco paid a quarterly cash dividend of $0.0625 per share of common stock for the first quarter of 2025 on March 28, 2025. The Company also recently announced its next quarterly cash dividend of $0.0625 per share of common stock for the second quarter of 2025 ($0.25 annualized), to be paid on June 27, 2025 to stockholders of record at the close of business on May 23, 2025. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Vaalco Board of Directors.

Hedging

The Company continued to opportunistically hedge a portion of its expected future production to lock in strong cash flow generation to assist in funding its capital and shareholder return programs.

The following includes hedges remaining in place as of the end of the first quarter of 2025:

Weighted Average Hedge Price ($/Bbl)

Settlement Period

Commodity

Type of Contract

Index

Average Volumes Hedged (Bbl)

Floor

Ceiling

April 2025 – June 2025

Oil

Collars

Dated Brent

70,000

65.00

81.00

July 2025 – September 2025

Oil

Collars

Dated Brent

60,000

65.00

80.00

Subsequent to March 31, 2025, the Company entered into the following additional derivative contracts to cover its future anticipated production:

Settlement Period		Commodity		Type of Contract		Index		Average Volumes Hedged (GJ)^(a)		Weighted Average Hedge Price (CAD/GJ)
May 2025 – October 2025		Natural Gas		Swap		AECO (7A)		114,000		$	2.15

a) One gigajoule (GJ) equals one billion joules (J). A gigajoule of natural gas is approximately 25.5 cubic meters standard conditions.

Settlement Period		Commodity		Type of Contract		Index		Average Volumes Hedged (Bbl)		Weighted Average Hedge Price ($/Bbl)
July 1, 2025 – July 31, 2025		Oil		Swap		Dated Brent		100,000		$	65.45

Capital Markets Day Presentation

Vaalco announced that it will host a Capital Markets Day presentation on Wednesday, May 14, 2025. The presentation will begin at 8 a.m. Central Time (2 p.m. London Time) and is expected to conclude around 10:00 a.m. Central Time. The agenda will include presentations by key members of management on Vaalco’s longer-term vision including growth across its diversified, multi-country asset base.

Participation in the Capital Markets Day is directed to Vaalco’s shareholders, buy side and sell side analysts, as well as large institutional investors and portfolio managers. The session will be web cast live along with related presentation materials through Vaalco’s web site at www.vaalco.com in the “Investors” section of the web site. A replay will be archived on the site shortly after the presentation concludes.

2025 Guidance:

The Company has provided second quarter 2025 guidance and updated its full year 2025 guidance. All of the quarterly and annual guidance is detailed in the tables below.

		FY 2025	Gabon	Egypt	Canada	Côte d’Ivoire
Production (BOEPD)	WI	19250 – 22310	7000 – 8300	9750 – 11100	2200 – 2600	300 – 310
Production (BOEPD)	NRI	14500 – 16710	6200 – 7100	6200 – 7200	1800 – 2100	300 – 310
Sales Volume (BOEPD)	WI	19850 – 22700	7300 – 8300	9750 – 11100	2200 – 2600	600 – 700
Sales Volume (BOEPD)	NRI	14900 – 17200	6300 – 7200	6200 – 7200	1800 – 2100	600 – 700
Production Expense (millions)	WI & NRI	$148.5 – $161.5 MM
Production Expense per BOE	WI	$18.00 – $21.50
Production Expense per BOE	NRI	$24.00 – $28.00
Offshore Workovers (millions)	WI & NRI	$0 – $10 MM
Cash G&A (millions)	WI & NRI	$25.0 – $31.0 MM
CAPEX excluding acquisitions (millions)	WI & NRI	$250 – $300 MM
DD&A ($/BOE)	NRI	$16.00 – $20.00

		Q2 2025	Gabon	Egypt	Canada	Côte d’Ivoire
Production (BOEPD)	WI	20000 – 22100	7800 – 8600	10100 – 11200	2100 – 2300	—
Production (BOEPD)	NRI	15400 – 16800	6800 – 7500	6900 – 7400	1700 – 1900	—
Sales Volume (BOEPD)	WI	22800 – 24900	10600 – 11400	10100 – 11200	2100 – 2300	—
Sales Volume (BOEPD)	NRI	17800 – 19300	9200 – 10000	6900 – 7400	1700 – 1900	—
Production Expense (millions)	WI & NRI	$39.5 – $48.0 MM
Production Expense per BOE	WI	$18.00 – $23.00
Production Expense per BOE	NRI	$23.00 – $29.00
Offshore Workovers (millions)	WI & NRI	$0 – $0 MM
Cash G&A (millions)	WI & NRI	$6.0 – $8.0 MM
CAPEX excluding acquisitions (millions)	WI & NRI	$65 – $85 MM
DD&A ($/BOE)	NRI	$16.00 – $20.00

Conference Call

As previously announced, the Company will hold a conference call to discuss its first quarter 2025 financial and operating results, Friday, May 9, 2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time and 3:00 p.m. London Time). Interested parties may participate by dialing (833) 685-0907. Parties in the United Kingdom may participate toll-free by dialing 08082389064 and other international parties may dial (412) 317-5741. Participants should request to be joined to the “Vaalco Energy First Quarter 2025 Conference Call.” This call will also be webcast on Vaalco’s website at www.vaalco.com. An archived audio replay will be available on Vaalco’s website.

A “Q1 2025 Supplemental Information” investor deck will be posted to Vaalco’s website prior to its conference call on May 9, 2025 that includes additional financial and operational information.

About Vaalco

Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea, Nigeria and Canada.

For Further Information

Vaalco Energy, Inc. (General and Investor Enquiries)	+00 1 713 543 3422
Website:	www.vaalco.com

Al Petrie Advisors (US Investor Relations)	+00 1 713 543 3422
Al Petrie / Chris Delange

Buchanan (UK Financial PR)	+44 (0) 207 466 5000
Ben Romney / Barry Archer	VAALCO@buchanan.uk.com

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and “forward-looking information” within the meaning of applicable Canadian securities laws(collectively, “forward-looking statements”). Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “may,” “likely,” “plan” and “probably” or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements relating to (i) estimates of future drilling, production, sales and costs of acquiring crude oil, natural gas and natural gas liquids; (ii) expectations regarding Vaalco’s ability to effectively integrate assets and properties it has acquired as a result of the Svenska acquisition into its operations; (iii) expectations regarding future exploration and the development, growth and potential of Vaalco’s operations, project pipeline and investments, and schedule and anticipated benefits to be derived therefrom; (iv) expectations regarding future acquisitions, investments or divestitures; (v) expectations of future dividends; (vi) expectations of future balance sheet strength; and (vii) expectations of future equity and enterprise value.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: risks relating to any unforeseen liabilities of Vaalco; the ability to generate cash flows that, along with cash on hand, will be sufficient to support operations and cash requirements; risks relating to the timing and costs of completion for scheduled maintenance of the FPSO servicing the Baobab field; and the risks described under the caption “Risk Factors” in Vaalco’s most recent Annual Report on Form 10-K.

Dividends beyond the second quarter of 2025 have not yet been approved or declared by the Board of Directors for Vaalco. The declaration and payment of future dividends remains at the discretion of the Board and will be determined based on Vaalco’s financial results, balance sheet strength, cash and liquidity requirements, future prospects, crude oil and natural gas prices, and other factors deemed relevant by the Board. The Board reserves all powers related to the declaration and payment of dividends. Consequently, in determining the dividend to be declared and paid on Vaalco common stock, the Board may revise or terminate the payment level at any time without prior notice.

Any forward-looking statement made by Vaalco in this press release is based only on information currently available to Vaalco and speaks only as of the date on which it is made. Except as may be required by applicable securities laws, Vaalco undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Other Oil and Gas Advisories

Investors are cautioned when viewing BOEs in isolation. BOE conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalencies described above, utilizing such equivalencies may be incomplete as an indication of value.

Inside Information

This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse which is part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”) and is made in accordance with the Company’s obligations under article 17 of MAR. The person responsible for arranging the release of this announcement on behalf of Vaalco is Matthew Powers, Corporate Secretary of Vaalco.

VAALCO ENERGY, INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheets

	As of March 31, 2025		As of December 31, 2024
	*(in thousands)*
ASSETS
Current assets:
Cash and cash equivalents	$	40,914	$	82,650
Receivables:
Trade, net of allowances for credit loss and other of $0.2 million and $0.2 million, respectively		120,252		94,778
Accounts with joint venture owners, net of allowance for credit losses of $1.8 million and $1.5 million, respectively		2,847		179
Egypt receivables and other		3,235		35,763
Other current assets		33,590		24,557
Total current assets		200,838		237,927
Crude oil, natural gas and NGLs properties and equipment, net		562,926		538,103
Other noncurrent assets:
Right of use operating lease assets		16,303		17,254
Right of use finance lease assets		78,862		79,849
Deferred tax assets		48,364		55,581
Other long-term assets		19,810		26,236
Total assets	$	927,103	$	954,950
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	177,675	$	181,728
Asset retirement obligations		81,053		78,592
Operating lease liabilities – net of current portion		12,915		13,903
Finance lease liabilities – net of current portion		66,198		67,377
Deferred tax liabilities		85,168		93,904
Other long-term liabilities		—		17,863
Total liabilities		423,009		453,367
Total shareholders’ equity		504,094		501,583
Total liabilities and shareholders’ equity	$	927,103	$	954,950

VAALCO ENERGY, INC AND SUBSIDIARIES
Consolidated Statements of Operations

	Three Months Ended
	March 31, 2025			March 31, 2024			December 31, 2024
	(in thousands except per share amounts)
Revenues:
Crude oil, natural gas and natural gas liquids sales	$	110,329		$	100,155		$	121,721
Operating costs and expenses:
Production expense		44,806			32,089			36,641
Exploration expense		—			48			—
Depreciation, depletion and amortization		30,305			25,824			37,047
Transaction costs related to acquisition		—			1,313			—
General and administrative expense		9,051			6,710			8,454
Credit losses and other		(27	)		1,812			1,082
Total operating costs and expenses		84,135			67,796			83,224
Other operating income, net		—			(166	)		10
Operating income		26,194			32,193			38,507
Other income (expense):
Derivative instruments gain (loss), net		(74	)		(847	)		(365	)
Interest expense, net		(1,295	)		(935	)		(1,092	)
Bargain purchase gain		—			—			(6,366	)
Other income (expense), net		(1,012	)		(487	)		(1,828	)
Total other income (expense), net		(2,381	)		(2,269	)		(9,651	)
Income before income taxes		23,813			29,924			28,856
Income tax expense		16,083			22,238			17,192
Net income	$	7,730		$	7,686		$	11,664
Other comprehensive income (loss):
Currency translation adjustments		117			(2,454	)		(5,975	)
Comprehensive income	$	7,847		$	5,232		$	5,689

Basic net income per share:
Net income per share	$	0.07		$	0.07		$	0.11
Basic weighted average shares outstanding		103,758			103,659			103,743
Diluted net income per share:
Net income per share	$	0.07		$	0.07		$	0.11
Diluted weighted average shares outstanding		103,785			104,541			103,812

VAALCO ENERGY, INC AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows

	Three Months Ended March 31,
		2025			2024
	*(in thousands)*
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	7,730		$	7,686
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		30,305			25,824
Exploration expense		146			—
Deferred taxes		(1,519	)		(3,441	)
Unrealized foreign exchange loss		1,673			(102	)
Stock-based compensation		1,475			898
Cash settlements paid on exercised stock appreciation rights		—			(154	)
Derivative instruments (gain) loss, net		74			847
Cash settlements paid on matured derivative contracts, net		123			(24	)
Cash settlements paid on asset retirement obligations		—			(29	)
Credit losses and other		(27	)		1,812
Other operating loss, net		—			166
Equipment and other expensed in operations		972			302
Change in operating assets and liabilities		(8,246	)		(11,953	)
Net cash provided by operating activities		32,706			21,832
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment expenditures		(58,527	)		(16,618	)
Acquisition of crude oil and natural gas properties		(247	)		—
Net cash used in investing activities		(58,774	)		(16,618	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuances of common stock		—			447
Dividend distribution		(6,570	)		(6,463	)
Treasury shares		(155	)		(6,344	)
Deferred financing costs		(5,118	)		—
Payments of finance lease		(2,943	)		(2,095	)
Net cash used in in financing activities		(14,786	)		(14,455	)
Effects of exchange rate changes on cash		27			(208	)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(40,827	)		(9,449	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD		97,726			129,178
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	$	56,899		$	119,729

VAALCO ENERGY, INC AND SUBSIDIARIES
Selected Financial and Operating Statistics
(Unaudited)

	Three Months Ended
	March 31, 2025	March 31, 2024	December 31, 2024
NRI SALES DATA
Crude oil, natural gas and natural gas liquids sales (MBOE)	1,717	1,490	1,872
Average daily sales volumes (BOE)	19,074	16,374	20,352

WI PRODUCTION DATA
Etame Crude oil (MBbl)	767	819	791
Gabon Average daily production volumes (BOEPD)	8,522	9,001	8,598

Egypt Crude oil (MBbl)	920	950	923
Egypt Average daily production volumes (BOEPD)	10,225	10,440	10,035

Canada Crude Oil (MBbl)	80	61	99
Canada Natural Gas (MMcf)	413	469	431
Canada Natural Gas Liquid (MBOE)	69	76	75
Canada Crude oil, natural gas and natural gas liquids (MBOE)	218	215	246
Canada Average daily production volumes (BOEPD)	2,420	2,363	2,669

Côte d’Ivoire Crude oil (MBbl)	111	—	368
Côte d’Ivoire Average daily production volumes (BOEPD)	1,235	—	3,997

Total Crude oil, natural gas and natural gas liquids production (MBOE)	2,016	1,984	2,328
Average daily production volumes (BOEPD)	22,402	21,804	25,300

NRI PRODUCTION DATA
Etame Crude oil (MBbl)	667	713	688
Gabon Average daily production volumes (BOEPD)	7,414	7,835	7,481

Egypt Crude oil (MBbl)	642	641	644
Egypt Average daily production volumes (BOEPD)	7,131	7,044	7,001

Canada Crude Oil (MBbl)	66	51	85
Canada Natural Gas (MMcf)	338	392	371
Canada Natural Gas Liquid (MBOE)	56	63	64
Canada Crude oil, natural gas and natural gas liquids (MBOE)	179	179	211
Canada Average daily production volumes (BOEPD)	1,984	1,971	2,296

Côte d’Ivoire Crude oil (MBbl)	111	—	368
Côte d’Ivoire Average daily production volumes (BOEPD)	1,235	—	3,997

Total Crude oil, natural gas and natural gas liquids production (MBOE)	1,599	1,533	1,911
Average daily production volumes (BOEPD)	17,764	16,850	20,775

AVERAGE SALES PRICES:
Crude oil, natural gas and natural gas liquids sales (per BOE) – WI basis	$	67.03	$	69.62	$	65.69
Crude oil, natural gas and natural gas liquids sales (per BOE) – NRI basis	$	64.27	$	66.43	$	64.77
Crude oil, natural gas and natural gas liquids sales (Per BOE including realized commodity derivatives) – NRI basis	$	64.34	$	66.41	$	64.48

COSTS AND EXPENSES (Per BOE of sales):
Production expense		26.10	$	21.54	$	19.57
Production expense, excluding offshore workovers and stock compensation*		26.05	$	21.56	$	19.49
Depreciation, depletion and amortization		17.65	$	17.33	$	19.79
General and administrative expense**		5.27	$	4.50	$	4.52
Property and equipment expenditures, cash basis (in thousands)	$	58,527	$	16,618	$	41,466

* Offshore workover costs excluded for the three months ended March 31, 2025 and 2024 and December 31, 2024 are $0.0 million, $(0.1) million and $0.1 million, respectively.
* Stock compensation associated with production expense excluded from the three months ended March 31, 2025 and 2024 and December 31, 2024 are immaterial.
** General and administrative expenses include $0.76, $0.58 and $0.72 per barrel of oil related to stock-based compensation expense in the three months ended March 31, 2025 and 2024 and December 31, 2024, respectively.

NON-GAAP FINANCIAL MEASURES

Management uses Adjusted Net Income to evaluate operating and financial performance and believes the measure is useful to investors because it eliminates the impact of certain non-cash and/or other items that management does not consider to be indicative of the Company’s performance from period to period. Management also believes this non-GAAP measure is useful to investors to evaluate and compare the Company’s operating and financial performance across periods, as well as to facilitate comparisons to others in the Company’s industry. Adjusted Net Income is a non-GAAP financial measure and as used herein represents net income, plus deferred income tax expense (benefit), unrealized derivative instrument loss (gain), bargain purchase gain on the Svenska Acquisition, FPSO demobilization, transaction costs related to the Svenska acquisition and non-cash and other items.

Adjusted EBITDAX is a supplemental non-GAAP financial measure used by Vaalco’s management and by external users of the Company’s financial statements, such as industry analysts, lenders, rating agencies, investors and others who follow the industry. Management believes the measure is useful to investors because it is as an indicator of the Company’s ability to internally fund exploration and development activities and to service or incur additional debt. Adjusted EBITDAX is a non-GAAP financial measure and as used herein represents net income, plus interest expense (income) net, income tax expense (benefit), depreciation, depletion and amortization, exploration expense, FPSO demobilization, non-cash and other items including stock compensation expense, bargain purchase gain on the Svenska Acquisition, other operating (income) expense, net, non-cash purchase price adjustment, transaction costs related to acquisition, credit losses and other and unrealized derivative instrument loss (gain).

Management uses Adjusted Working Capital as a transition tool to assess the working capital position of the Company’s continuing operations excluding leasing obligations because it eliminates the impact of discontinued operations as well as the impact of lease liabilities. Under the applicable lease accounting standards, lease liabilities related to assets used in joint operations include both the Company’s share of expenditures as well as the share of lease expenditures which its non-operator joint venture owners’ will be obligated to pay under joint operating agreements. Adjusted Working Capital is a non-GAAP financial measure and as used herein represents working capital excluding working capital attributable to discontinued operations and current liabilities associated with lease obligations.

Management uses Free Cash Flow to evaluate financial performance and to determine the total amount of cash over a specified period available to be used in connection with returning cash to shareholders, and believes the measure is useful to investors because it provides the total amount of net cash available for returning cash to shareholders by adding cash generated from operating activities, subtracting amounts used in financing and investing activities, effects of exchange rate changes on cash and adding back amounts used for dividend payments and stock repurchases. Free Cash Flow is a non-GAAP financial measure and as used herein represents net change in cash, cash equivalents and restricted cash and adds the amounts paid under dividend distributions and share repurchases over a specified period.

Free Cash Flow has significant limitations, including that it does not represent residual cash flows available for discretionary purposes and should not be used as a substitute for cash flow measures prepared in accordance with GAAP. Free Cash Flow should not be considered as a substitute for cashflows from operating activities before discontinued operations or any other liquidity measure presented in accordance with GAAP. Free Cash Flow may vary among other companies. Therefore, the Company’s Free Cash Flow may not be comparable to similarly titled measures used by other companies.

Adjusted EBITDAX and Adjusted Net Income have significant limitations, including that they do not reflect the Company’s cash requirements for capital expenditures, contractual commitments, working capital or debt service. Adjusted EBITDAX, Adjusted Net Income, Adjusted Working Capital and Free Cash Flow should not be considered as substitutes for net income (loss), operating income (loss), cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDAX and Adjusted Net Income exclude some, but not all, items that affect net income (loss) and operating income (loss), and the calculation of these measures may vary among other companies. Therefore, the Company’s Adjusted EBITDAX, Adjusted Net Income, Adjusted Working Capital and Free Cash Flow may not be comparable to similarly titled measures used by other companies.

The tables below reconcile the most directly comparable GAAP financial measures to Adjusted Net Income, Adjusted EBITDAX, Adjusted Working Capital and Free Cash Flow.

VAALCO ENERGY, INC AND SUBSIDIARIES
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
(in thousands)

	Three Months Ended
Reconciliation of Net Income to Adjusted Net Income	March 31, 2025			March 31, 2024			December 31, 2024
Net income	$	7,730		$	7,686		$	11,664
Adjustment for discrete items:
Unrealized derivative instruments loss (gain)		198			823			96
Bargain purchase gain		—			—			6,366
Deferred income tax expense (benefit)		(1,610	)		(3,441	)		(11,781	)
Transaction costs related to acquisition		22			1,313			508
Other operating (income) expense, net		—			166			(10	)
Adjusted Net Income	$	6,340		$	6,547		$	6,843

Diluted Adjusted Net Income per Share	$	0.06		$	0.06		$	0.07
Diluted weighted average shares outstanding ⁽¹⁾		103,785			104,541			103,812

⁽¹⁾No adjustments to weighted average shares outstanding

	Three Months Ended
Reconciliation of Net Income to Adjusted EBITDAX	March 31, 2025			March 31, 2024		December 31, 2024
Net income	$	7,730		$	7,686	$	11,664
Add back:
Interest expense, net		1,295			935		1,092
Income tax expense		16,083			22,238		17,192
Depreciation, depletion and amortization		30,305			25,824		37,047
Exploration expense		—			48		—
Non-cash or unusual items:
Stock-based compensation		1,352			899		1,196
Unrealized derivative instruments loss		198			823		96
Bargain purchase gain		—			—		6,366
Other operating (income) expense, net		—			166		(10	)
Transaction costs related to acquisition		22			1,313		508
Credit losses and other		(27	)		1,812		1,082
Adjusted EBITDAX	$	56,958		$	61,744	$	76,233

VAALCO ENERGY, INC AND SUBSIDIARIES
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
(in thousands)

Reconciliation of Working Capital to Adjusted Working Capital	March 31, 2025			December 31, 2024			Change
Current assets	$	200,838		$	237,927		$	(37,089	)
Current liabilities		(177,675	)		(181,728	)		4,053
Working capital		23,163			56,199			(33,036	)
Add: lease liabilities – current portion		17,249			16,895			354
Adjusted Working Capital	$	40,412		$	73,094		$	(32,682	)


	Three Months Ended March 31, 2025
Reconciliation of Free Cash Flow	(in thousands)
Net cash provided by Operating activities	$	32,706
Net cash used in Investing activities		(58,774	)
Net cash used in Financing activities		(14,786	)
Effects of exchange rate changes on cash		27
Total net cash change		(40,827	)

Add back shareholder cash out:
Dividends paid		6,570
Total cash returned to shareholders		6,570

Free Cash Flow	$	(34,257	)

The MIL Network –

May 9, 2025

MIL-OSI USA: May 08, 2025 Rep. Mullin Cosponsors Legislation to Increase Affordable Housing through Expansion of Federal Tax Credit Washington, D.C. – Rep. Kevin Mullin (CA-15) joined a bipartisan coalition of lawmakers in introducing the Affordable Housing Credit Improvement Act of 2025 (AHCIA), which would help millions of Americans by financing nearly 1.6 million affordable homes nationwide over 10… Read More
Source: United States House of Representatives – Representative Kevin Mullin California (15th District)

Washington, D.C. – Rep. Kevin Mullin (CA-15) joined a bipartisan coalition of lawmakers in introducing the Affordable Housing Credit Improvement Act of 2025 (AHCIA), which would help millions of Americans by financing nearly 1.6 million affordable homes nationwide over 10 years.

Rep. Mullin is an original cosponsor of this critical legislation that would strengthen and expand the Low-Income Housing Tax Credit (LIHTC), the nation’s primary tool to finance the development and preservation of affordable rental housing over the last 40 years.

“As housing and construction costs continue to rise, more federal support is urgently needed to build homes for low-income families across the nation,” said Rep. Mullin. “One of the toughest challenges for nonprofit housing builders is piecing together a mix of federal, state and local funding sources. Expanding the Housing Credit is desperately needed and will help stabilize families who are struggling to make ends meet.”

Specifically, this bill would:
- Increase Housing Credit allocations and resources
- Provide states with additional flexibilities and streamline program rules
- Enable the Housing Credit to better serve hard-to-reach communities including rural, Native American, high-poverty, and high-cost communities, as well as extremely low-income and formerly homeless tenants.
- Make the Housing Credit a more effective tool for preserving existing affordable housing units.
- Support over 2.4 million jobs, almost $94 billion in additional tax revenue, and over $271 billion in wages and business income.
Established in 1986, the Housing Credit has financed more than 4 million affordable homes and served over 9.28 million low-income households, including veterans, seniors, people with disabilities, and working families with children.

The AHCIA of 2025 builds on prior versions of the AHCIA that have earned widespread bipartisan support since first introduced in 2016. Since then, key provisions from the bill have been included in tax legislation, including the Tax Relief for American Families and Workers Act of 2024, which passed the House of Representatives with overwhelming support. Congress will also be considering tax legislation as part of its budget reconciliation efforts.

Besides receiving bipartisan support, the AHCIA has been lauded by affordable housing advocates for modernizing the support of rental housing for low-income families.

“Enacting the Affordable Housing Credit Improvement Act is the single most important thing Congress can do to increase the production of affordable homes in California,” said Matt Schwartz, President & CEO of the California Housing Partnership. “Passing AHCIA will result in the construction of an additional 15,000 affordable homes per year for California families, seniors and disabled struggling to afford high rents, roughly double today’s production. The California Housing Partnership lauds Congressman Mullin’s leadership in co-sponsoring this critical legislation to address California’s affordability crisis.”

“The Housing Credit is one of the most effective tools we have to solve our nation’s housing crisis,” said Matthew O. Franklin, President and CEO of MidPen Housing, a leading nonprofit that has developed more than 130 affordable communities serving 22,000 families and seniors. “We applaud the bipartisan cosponsors for teaming up on this critical effort, which will leverage private-sector capital to create homes and jobs across the U.S.”

“Passing this legislation is the single most important thing Congress can do to support affordable housing in California right now,” said J.T. Harechmak, Policy Director of Nonprofit Housing Association of Northern California. “The Affordable Housing Credit Improvement Act will help California build and preserve hundreds of thousands of affordable homes over the next year – a critically important outcome at a critically important time.”

“We are thrilled by the overwhelming support for legislation that will increase the development of affordable housing,” said Affordable Housing Tax Credit Coalition (AHTCC) Chief Executive Officer Emily Cadik. “Now more than ever, it is vital for Congress to enact these long overdue measures, which leverage private sector investment to bolster affordable housing resources. We thank the growing number of bipartisan cosponsors for supporting this commonsense solution to expand and strengthen the Housing Credit.”

“With our nation’s housing crisis reaching record levels, there is a strong imperative for Congress to act. The affordable housing crisis affects every state and all types of communities,” said Dudley Benoit, President of the AHTCC Board of Directors and Executive Vice President of Walker & Dunlop. “The Housing Credit has proven to be an effective tool in urban and rural areas alike. Without action, this crisis will continue to spiral, leaving more families unable to find affordable housing in their communities and making it more difficult for those communities to support a workforce.”

###

MIL OSI USA News –
May 9, 2025

MIL-OSI: Montauk Renewables Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

PITTSBURGH, May 08, 2025 (GLOBE NEWSWIRE) — Montauk Renewables, Inc. (“Montauk” or “the Company”) (NASDAQ: MNTK), a renewable energy company specializing in the management, recovery, and conversion of biogas into renewable natural gas (“RNG”), today announced financial results for the first quarter ended March 31, 2025.

First Quarter Highlights:

• Revenues of $42.6 million, increased 9.8% compared to the first quarter of 2024

• Net loss of $0.5 million, compared to net income of $1.9 million for the first quarter of 2024

• Non-GAAP Adjusted EBITDA of $8.8 million, decreased 7.2% year-over-year

• RNG production of 1.4 million MMBtu, flat compared to first quarter of 2024

• RINs sold of 9.9 million, increased 2.0 million or 25.3% year-over-year

Our profitability is highly dependent on the market price of environmental attributes, including the market price for RINs. As we self-market a significant portion of our RINs, a decision to not to commit to transfer available RINs during a period will impact our revenue and operating profit. As a result of our decision to not commit RINs available to be sold during the 2024 fourth quarter, we had approximately 6.8 million RINs available but unsold at year end. Including these RINs, we have sold all RINs associated to our 2024 RNG production. We have subsequently entered into commitments to transfer the majority of our RINs in inventory as of March 31, 2025. The Environmental Protection Agency’s (“EPA”) Biogas Regulatory Reform Rule became effective in 2025. New rules requiring the separation of RINs after dispensing has delayed by approximately one month our ability to have RINs available for sale from current year production. Additionally, the EPA extending the compliance period for 2024 has impacted the timing of obligated party purchases of RINs from 2025 production.

Related to our gas rights agreement with our landfill host at our Rumpke RNG location, in 2025, we began the process of planning the relocation of our existing Rumpke RNG facility. The timing of this project and requirement to relocate the facility coincides with the landfills filling practices to move into the existing area of our now current Rumpke RNG facility and is contractually obligated. We expect to begin capital expenditures for long lead time equipment in the second quarter of 2025 and expect to target a commissioning in 2028. Depending on the timing of capital expenditure and potential additional production capabilities in addition to RNG production related to the full design, we estimate capital expenditures to range between $80 million to $110 million. Finally, related to the development of our Blue Granite RNG project, we received notice from the utility that it will no longer accept RNG into its distribution system, which was in opposition to the letter of intent issue when we were awarded the gas rights to the site. This notice led to our impairing of certain RNG equipment. We continue to discuss with the landfill host various alternatives related to the site as we continue to own the rights to develop the site.

First Quarter Financial Results

Total revenues in the first quarter of 2025 were $42.6 million, an increase of $3.8 million (9.8%) compared to $38.8 million in the first quarter of 2024. The increase is primarily driven by the monetization of the RINs sold in the first quarter of 2025 related to 2024 RNG production. Our average realized RIN price in the first quarter of 2025 was $2.46 which decreased approximately 24.3% compared to $3.25 in the first quarter of 2024. Natural gas index pricing increased approximately 62.9% during the first quarter of 2025 compared to the first quarter of 2024. Operating and maintenance expenses for our RNG facilities in the first quarter of 2025 were $14.1 million, an increase of $2.0 million (16.1%) compared to $12.1 million in the first quarter of 2024. The primary drivers of this increase were timing of preventative maintenance, media changeout maintenance, and wellfield operational enhancement programs, at our Apex, McCarty, Rumpke, and Coastal facilities. Our Renewable Electricity Generation operating and maintenance expenses in the first quarter of 2025 were $3.4 million, an increase of $1.1 million (46.2%) compared to $2.3 million in the first quarter of 2024, primarily driven by non-capitalizable expenses at our Montauk Ag Renewables projects. Total general and administrative expenses were $8.8 million in the first quarter of 2025, a decrease of $0.6 million (7.1%) compared to $9.4 million in the first quarter of 2024. Operating income in the first quarter of 2025 was $0.4 million, a decrease of $2.0 million (82.7%) compared to $2.4 million in the first quarter of 2024. Net loss in the first quarter of 2025 was $0.5 million, a decrease of $2.4 million (125.1%) compared to net income of $1.9 million in the first quarter of 2024.

First Quarter Operational Results

We produced approximately 1.4 million Metric Million British Thermal Units (“MMBtu”) of RNG in the first quarter of 2025, flat compared to 1.4 million MMBtu produced in the first quarter of 2024. At our Rumpke facility, we produced 39 MMBtu more in the first quarter of 2025 compared to the first quarter of 2024 as a result of previously disclosed plant processing equipment failure that occurred in the first quarter of 2024. At our Apex facility, we produced 57 fewer MMBtu in the first quarter of 2025 compared to the first quarter of 2024 as a result of cold weather conditions impacting gas feedstock availability, wellfield extraction environmental factors, and plant processing equipment failures. We produced approximately 46 thousand megawatt hours (“MWh”) in Renewable Electricity in the first quarter of 2025, a decrease of 8 thousand MWh compared to 54 thousand MWh produced in the first quarter of 2024. Our Security facility produced approximately 6 thousand MWh less in the first quarter of 2025 compared to the first quarter of 2024 as a result of us ceasing operations in connection with the sale of gas rights back to the landfill host.

2025 Full Year Outlook

RNG revenues are expected to range between $150 and $170 million
RNG production volumes are expected to range between 5.8 and 6.0 million MMBtu
REG revenues are expected to range between $17 and $18 million
REG production volumes are expected to range between 178 and 186 thousand MWh

Conference Call Information

The Company will host a conference call May 9th, 2025 at 8:30 a.m. Eastern time to discuss results. The registration for the conference call will be available via the following link:

• https://register-conf.media-server.com/register/BI3885b2c10f194fb3bc2e62b037d47425

Please register for the conference call and webcast using the above link in advance of the call start time. The webcast platform will register your name and organization as well as provide dial-ins numbers and a unique access pin. The conference call will be broadcast live and be available for replay at https://edge.media-server.com/mmc/p/5jzw2eww/ and on the Company’s website at https://ir.montaukrenewables.com after 11:30 a.m. Eastern time on the same day through May 9, 2026.

Use of Non-GAAP Financial Measures

This press release and the accompanying tables include references to EBITDA and Adjusted EBITDA, which are Non-GAAP financial measures. We present EBITDA and Adjusted EBITDA because we believe the measures assist investors in analyzing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.

In addition, EBITDA and Adjusted EBITDA are financial measurements of performance that management and the board of directors use in their financial and operational decision-making and in the determination of certain compensation programs. EBITDA and Adjusted EBITDA are supplemental performance measures that are not required by or presented in accordance with GAAP. EBITDA and Adjusted EBITDA should not be considered alternatives to net (loss) income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities or a measure of our liquidity or profitability.

About Montauk Renewables, Inc.

Montauk Renewables, Inc. (NASDAQ: MNTK) is a renewable energy company specializing in the management, recovery and conversion of biogas into RNG. The Company captures methane, preventing it from being released into the atmosphere, and converts it into either RNG or electrical power for the electrical grid (“Renewable Electricity”). The Company, headquartered in Pittsburgh, Pennsylvania, has more than 30 years of experience in the development, operation and management of landfill methane-fueled renewable energy projects. The Company has current operations at 13 operating projects and on going development projects located in California, Idaho, Ohio, Oklahoma, Pennsylvania, North Carolina, South Carolina, and Texas. The Company sells RNG and Renewable Electricity, taking advantage of Environmental Attribute premiums available under federal and state policies that incentivize their use. For more information, visit https://ir.montaukrenewables.com.

Company Contact:
John Ciroli
Chief Legal Officer (CLO) & Secretary
investor@montaukrenewables.com
(412) 747-8700

Investor Relations Contact:
Georg Venturatos
Gateway Investor Relations
MNTK@gateway-grp.com
(949) 574-3860

Safe Harbor Statement

This release contains “forward-looking statements” within the meaning of U.S. federal securities laws that involve substantial risks and uncertainties. All statements other than statements of historical or current fact included in this report are forward-looking statements. Forward-looking statements refer to our current expectations and projections relating to our financial condition, results of operations, plans, objectives, strategies, future performance, and business. Forward-looking statements may include words such as “anticipate,” “assume,” “believe,” “can have,” “contemplate,” “continue,” “strive,” “aim,” “could,” “design,” “due,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “likely,” “may,” “might,” “objective,” “plan,” “predict,” “project,” “potential,” “seek,” “should,” “target,” “will,” “would,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events. For example, all statements we make relating to our future results of operations, financial condition, expectations and plans, including those related to the Montauk Ag project in North Carolina, the Second Apex RNG Facility, the Blue Granite RNG Facility, the Bowerman RNG Facility, the delivery of biogenic carbon dioxide volumes to European Energy, the Emvolon collaboration and pilot project, the Tulsa facility project, the resolution of gas collection issues at the McCarty facility, the delays and cancellations of landfill host wellfield expansion projects, the mitigation of wellfield extraction environmental factors at the Rumpke and Apex facilities, how we may monetize RNG production and weather-related anomalies are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expect and, therefore, you should not unduly rely on such statements. The risks and uncertainties that could cause those actual results to differ materially from those expressed or implied by these forward-looking statements include but are not limited to: our ability to develop and operate new renewable energy projects, including with livestock farms, and related challenges associated with new projects, such as identifying suitable locations and potential delays in acquisition financing, construction, and development; reduction or elimination of government economic incentives to the renewable energy market, whether as a result of the new presidential administration or otherwise; the inability to complete strategic development opportunities; widespread manmade, natural and other disasters (including severe weather events), health emergencies, dislocations, geopolitical instabilities or events, terrorist activities, international hostilities, government shutdowns, political elections, security breaches, cyberattacks or other extraordinary events that impact general economic conditions, financial markets and/or our business and operating results; taxes, tariffs, duties or other assessments on equipment necessary to generate or deliver renewable energy or continued inflation could raise our operating costs or increase the construction costs of our existing or new projects; rising interest rates could increase the borrowing costs of future indebtedness; the failure to attract and retain qualified personnel or a possible increased reliance on third-party contractors as a result, and the potential unenforceability of non-compete clauses with our employees; the length of development and optimization cycles for new projects, including the design and construction processes for our renewable energy projects; dependence on third parties for the manufacture of products and services and our landfill operations; the quantity, quality and consistency of our feedstock volumes from both landfill and livestock farm operations; reliance on interconnections with and access to electric utility distribution and transmission facilities and gas transportation pipelines for our Renewable Natural Gas and Renewable Electricity Generation segments; our ability to renew pathway provider sharing arrangements at historical counterparty share percentages; our projects not producing expected levels of output; potential benefits associated with the combustion-based oxygen removal condensate neutralization technology; concentration of revenues from a small number of customers and projects; our outstanding indebtedness and restrictions under our credit facility; our ability to extend our fuel supply agreements prior to expiration; our ability to meet milestone requirements under our power purchase agreements; existing regulations and changes to regulations and policies that effect our operations, whether as a result of a new presidential administration or otherwise; expected impacts of the Production Tax Credit and other tax credit benefits under the Inflation Reduction Act of 2022; decline in public acceptance and support of renewable energy development and projects; our expectations regarding Environmental Attribute volume requirements and prices and commodity prices; our expectations regarding the period during which we qualify as an emerging growth company under the Jumpstart Our Business Startups Act (“JOBS Act”); our expectations regarding future capital expenditures, including for the maintenance of facilities; our expectations regarding the use of net operating losses before expiration; our expectations regarding more attractive carbon intensity scores by regulatory agencies for our livestock farm projects; market volatility and fluctuations in commodity prices and the market prices of Environmental Attributes and the impact of any related hedging activity; regulatory changes in federal, state and international environmental attribute programs and the need to obtain and maintain regulatory permits, approvals, and consents; profitability of our planned livestock farm projects; sustained demand for renewable energy; potential liabilities from contamination and environmental conditions; potential exposure to costs and liabilities due to extensive environmental, health and safety laws; impacts of climate change, extreme and changing weather patterns and conditions and natural disasters; failure of our information technology and data security systems; increased competition in our markets; continuing to keep up with technology innovations; concentrated stock ownership by a few stockholders and related control over the outcome of all matters subject to a stockholder vote; and other risks and uncertainties detailed in the section titled “Risk Factors” in our latest Annual Report on Form 10-K and our other filings with the SEC.

We make many of our forward-looking statements based on our operating budgets and forecasts, which are based upon detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements as well as others made in our Securities and Exchange Commission filings and public communications. You should evaluate all forward-looking statements made by us in the context of these risks and uncertainties. The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

MONTAUK RENEWABLES, INC.
CONSOLIDATED BALANCE SHEETS


(in thousands, except share data)

	as of March 31,			as of December 31,
ASSETS	2025			2024
Current assets:
Cash and cash equivalents	$	40,111		$	45,621
Accounts and other receivables		8,491			8,172
Current restricted cash		8			8
Income tax receivable		344			41
Current portion of derivative instruments		401			471
Prepaid insurance and other current assets		2,824			2,911
Total current assets	$	52,179		$	57,224
Non-current restricted cash	$	375		$	375
Property, plant and equipment, net		259,678			252,288
Goodwill and intangible assets, net		17,881			18,113
Deferred tax assets		1,605			1,272
Non-current portion of derivative instruments		154			298
Operating lease right-of-use assets		7,095			7,064
Finance lease right-of-use assets		93			110
Other assets		15,166			12,271
Total assets	$	354,226		$	349,015

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	16,411		$	8,856
Accrued liabilities		10,232			10,069
Related party payable	—				625
Current portion of operating lease liability		2,378			2,049
Current portion of finance lease liability		76			76
Current portion of long-term debt		11,857			11,853
Total current liabilities	$	40,954		$	33,528
Long-term debt, less current portion		40,796			43,763
Non-current portion of operating lease liability		4,817			5,138
Non-current portion of finance lease liability		19			36
Asset retirement obligations		6,456			6,338
Other liabilities		2,997			2,795

Total liabilities	$	96,039		$	91,598

STOCKHOLDERS’ EQUITY

Common stock, $0.01 par value, authorized 690,000,000 shares; 143,792,811 shares issued at March 31, 2025 and December 31, 2024, respectively; 142,711,797 shares outstanding at March 31, 2025 and December 31, 2024, respectively		1,426			1,426
Treasury stock, at cost, 2,308,524 shares March 31, 2025 and December 31, 2024, respectively		(21,262	)		(21,262	)
Additional paid-in capital		223,139			221,905
Retained earnings		54,884			55,348
Total stockholders’ equity		258,187			257,417
Total liabilities and stockholders’ equity	$	354,226		$	349,015

MONTAUK RENEWABLES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS


(in thousands, except for share and per share data)	Three Months Ended March 31,
	2025			2024
Total operating revenues	$	42,603		$	38,787

Operating expenses:
Operating and maintenance expenses		17,557			14,451
General and administrative expenses		8,754			9,427
Royalties, transportation, gathering and production fuel		7,571			6,518
Depreciation, depletion and amortization		6,264			5,434
Impairment loss		2,047			528
Transaction costs		–			61
Total operating expenses	$	42,193		$	36,419
Operating income	$	410		$	2,368

Other expenses (income):
Interest expense	$	1,243		$	1,165
Other income		(52	)		(1,060	)
Total other expenses	$	1,191		$	105
(Loss) income before income taxes	$	(781	)	$	2,263

Income tax (benefit) expense		(317	)		413
Net (loss) income	$	(464	)	$	1,850

(Loss) income per share:
Basic	$	(0.00	)	$	0.01
Diluted	$	(0.00	)	$	0.01

Weighted-average common shares outstanding:
Basic		142,711,797			141,986,189
Diluted		142,711,797			142,369,219

MONTAUK RENEWABLES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS


(in thousands):
	Three Months Ended March 31,
	2025			2024
Cash flows from operating activities:
Net (loss) income	$	(464	)	$	1,850
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		6,264			5,434
Provision for deferred income taxes		(333	)		249
Stock-based compensation		1,274			2,241
Derivative mark-to-market adjustments and settlements		214			(91	)
Net loss on sale of assets		15			22
(Decrease) increase in earn-out liability		(425	)		(849	)
Accretion of asset retirement obligations		118			108
Liabilities associated with properties sold		–			(225	)
Amortization of debt issuance costs		97			90
Impairment loss		2,047			528
Cash provided (used) by changes in assets and labilities:
Accounts receivable		(319	)		3,083
Royalty offset long term receivable		(739	)		(1,600	)
Income tax payables		(303	)		(411	)
Critical spare inventory		(215	)		209
Accounts payable and Accrued liabilities		2,213			3,468
Other		(304	)		186
Net cash provided by operating activities	$	9,140		$	14,292
Cash flows from investing activities:
Capital expenditures	$	(11,632	)	$	(21,986	)
Asset acquisition		—			(820	)
Cash collateral deposits		—			20
Net cash used in investing activities	$	(11,632	)	$	(22,786	)
Cash flows from financing activities:
Repayments of long-term debt	$	(3,000	)	$	(2,000	)
Finance lease payments		(18	)		(20	)
Net cash used in financing activities	$	(3,018	)	$	(2,020	)
Net decrease in cash and cash equivalents and restricted cash	$	(5,510	)	$	(10,514	)
Cash and cash equivalents and restricted cash at beginning of period	$	46,004		$	74,242
Cash and cash equivalents and restricted cash at end of period	$	40,494		$	63,728

Reconciliation of cash, cash equivalents, and restricted cash at end of period:
Cash and cash equivalents	$	40,111		$	63,277
Restricted cash and cash equivalents – current	8			8
Restricted cash and cash equivalents – non-current	375			443
	$	40,494		$	63,728

Supplemental cash flow information:
Cash paid for interest	$	1,055		$	1,237
Cash paid for income taxes		319			574
Accrual for purchase of property, plant and equipment included in accounts payable and accrued liabilities		8,534			7,492

MONTAUK RENEWABLES, INC.
NON-GAAP FINANCIAL MEASURES

(in thousands):

The following table provides our EBITDA and Adjusted EBITDA, as well as a reconciliation to net (loss) income which is the most directly comparable GAAP measure for the three months ended March 31, 2025 and 2024, respectively:

	Three Months Ended March 31,
	2025			2024
Net (loss) income	$	(464	)	$	1,850
Depreciation, depletion and amortization		6,264			5,434
Interest expense		1,243			1,165
Income tax (benefit) expense		(317	)		413
Consolidated EBITDA		6,726			8,862

Impairment loss		2,047			528
Net loss on sale of assets		15			22
Transaction costs		—			61
Adjusted EBITDA	$	8,788		$	9,473

The MIL Network –

May 9, 2025

MIL-OSI Security: Man Sentenced to 50 Years in Prison for Participating in Violent Kidnappings in the Chicago Suburbs

Source: Office of United States Attorneys

CHICAGO — A man has been sentenced to 50 years in federal prison for conspiring to abduct several victims at gunpoint in the Chicago suburbs.

SEDGWICK WILLIAMS participated in kidnappings in Naperville, Ill., and Westchester, Ill., in the fall of 2019. Williams and a co-conspirator also attempted a third kidnapping in South Holland, Ill., but they were unsuccessful and were arrested fleeing from the intended victim’s residence.

A federal jury last year convicted Williams, 48, of Chicago, and co-defendant TAI HON LA, 35, of Beach Park, Ill., of participating in the kidnapping conspiracy and other related charges. On Wednesday, U.S. District Judge Jorge L. Alonso sentenced Williams to 50 years in federal prison. La is scheduled to be sentenced on June 3, 2025.

Two other defendants pleaded guilty in the case. IVAN AYERS, 37, of Chicago, pleaded guilty to participating in the kidnapping conspiracy and is set to be sentenced on June 10, 2025. JONATHAN VARGAS, 38, of Chicago, pleaded guilty to kidnapping the first victim in Naperville and is set to be sentenced on June 5, 2025.

Williams’s sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. The case was investigated with assistance from the Naperville Police Department, Westchester Police Department, South Holland Police Department, Chicago Police Department, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the DuPage County Sheriff’s Office.

According to evidence presented at trial, the first kidnapping occurred in Naperville on Oct. 17, 2019. The conspirators posed as law enforcement officers to handcuff and abduct a man at gunpoint outside of his electronics store, which they then burglarized. The conspirators forced the victim into a car and transported him to Chicago, where they assaulted him and extorted his family.

The conspirators carried out the kidnapping in Westchester on Nov. 16, 2019. Posing as federal agents, the conspirators handcuffed and abducted a man at gunpoint outside of his residence. The conspirators forced the victim into his home, where they seized another victim and forced them both into the basement. Two other victims later arrived at the residence and were also forced into the basement at gunpoint. The conspirators stole cash and jewelry before fleeing.

The conspirators attempted the third kidnapping in South Holland on Dec. 11, 2019, but the intended victim was able to call 911 and the South Holland Police arrived before the conspirators could gain access to the house.

“Williams orchestrated a series of incredibly violent abductions and armed robberies throughout Chicago and the neighboring suburbs,” Assistant U.S. Attorneys Jared C. Jodrey and Kate McClelland argued in the government’s sentencing memorandum. “Williams and his co-conspirators ruthlessly threatened, restrained, beat, robbed, kidnapped, terrorized, and tortured people for their own personal gain.”

MIL Security OSI –

May 9, 2025
MIL-OSI Security: Former Rock Hill Cop Convicted at Trial of Receiving, Sending Child Sexual Abuse Materials

Source: Office of United States Attorneys

COLUMBIA, S.C. — A federal jury in Columbia has convicted Daniel Paul Shealy, 36, of Rock Hill, on 18 counts of possession and distribution of child sexual abuse material.* The jury returned a guilty verdict following three days of testimony and an hour and a half of deliberation.

According to evidence presented during trial, in 2023 investigators with the York County Sheriff’s Office (YCSO) received a tip from the National Center for Missing and Exploited Children (NCMEC) that three videos depicting the sexual abuse of children were flagged on the social messaging app Kik, under the username “orgasmd0nor.” Investigators with the YCSO and FBI traced the account and IP address to Shealy, a detective and former school resource officer with the Rock Hill Police Department.

Further investigation revealed that Shealy was a member of more than 40 private groups on Kik designed for users to trade child sexual abuse materials, including groups with references to minors, teens, and incest in the titles. According to testimony from a Kik representative, users in such groups often exchange images and videos of rape, sexual assault, bestiality, and other abuse of children. Investigators testified during trial that after receiving the tip, they executed a search warrant on Shealy’s phone and his Kik account. Shealy’s phone was in his patrol car and accessible through his thumbprint and a passcode, which was his badge number.

Agents recovered 126 explicit videos of children from Shealy’s phone and Kik account, which Shealy had received or distributed to others on the internet. The files included recordings of prepubescent minors in bondage and constraints and child sex abuse materials represented the majority of explicit recovered from his Kik account.

When Shealy testified at trial, he admitted that he operated the orgasmd0nor account and that he accessed child sex abuse material on the platform. He also admitted that he never reported the any of the videos to Kik or to law enforcement because he either did not know how to report or was concerned about his privacy related to his intimate life. Shealy taken into custody at the conclusion of the trial.

“The facts alone in this case were disturbing but became even more appalling because the defendant was a police officer, an individual given immense public trust,” said U.S. Attorney Bryan Stirling for the District of South Carolina. “We remain committed to holding those who betray public trust accountable and protecting our most vulnerable citizens, our children. We’re grateful to the FBI, York County Sheriff’s Office for their work on this case and our trial attorneys that worked diligently to bring this man to justice.”

“The FBI is unwavering in its commitment to safeguarding children from individuals who perpetrate physical and sexual abuse or engage in the exploitation of minors through the distribution of child sexual abuse material, as proved in this case,” said Reid Davis, Acting Special Agent in Charge of the FBI Columbia Field Office. “We hope this verdict represents a meaningful step toward justice for the victims and ensures that the defendant is held fully accountable under the law.”

He faces a mandatory minimum of five years in federal prison and a maximum of 20 years. He also faces a fine of up to $250,000, restitution, lifetime supervision to follow the term of imprisonment, and sex offender registry requirements. United States District Judge Joseph F. Anderson Jr. presided over the trial and will sentence Shealy after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.

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

The case was investigated by the FBI Columbia field office, the York County Sheriff’s Office, and the South Carolina ICAC (Internet Crimes Against Children) Task Force at the South Carolina Attorney General’s Office. Assistant U.S. Attorneys Elliott B. Daniels and Elle E. Klein are prosecuting the case.

###

MIL Security OSI –

May 9, 2025
MIL-OSI Security: Johnson County Man Sentenced for Producing and Possessing Child Pornography

Source: Office of United States Attorneys

PIKEVILLE, Ky. – A Hagerhill, Ky., man, Jason Ryan Campbell, 46, was sentenced on Thursday to 40 years in prison by U.S. District Judge Danny Reeves, for production of child pornography and possession of child pornography.

According to his plea agreement, on August 27, 2022, Campbell engaged in the production of child pornography. Specifically, upon searching his phone, law enforcement located two videos taken of Campbell and a minor victim engaging in sexual conduct. Law enforcement also found additional videos and photos of child pornography on his phone.

Under federal law, Campbell must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.

Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; Olivia Olson, Acting Special Agent in Charge, FBI, Louisville Field Office; and Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.

The investigation was conducted by the FBI and Kentucky State Police. Assistant U.S. Attorney Justin Blankenship is prosecuting the case on behalf of the United States.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

– END –

MIL Security OSI –

May 9, 2025

MIL-OSI: Prospect Capital Announces Financial Results for Fiscal March 2025 Quarter

Source: GlobeNewswire (MIL-OSI)

NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) — Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter ended March 31, 2025.

FINANCIAL RESULTS

All amounts in $000’s except per share amounts (on weighted average basis for period numbers)	Quarter Ended March 31, 2025	Quarter Ended December 31, 2024	Quarter Ended March 31, 2024

Net Investment Income (“NII”)	$83,489	$86,431	$94,375
NII per Common Share	$0.19	$0.20	$0.23
Interest as % of Total Investment Income	93.3%	91.0%	91.0%

Net Income (Loss) Applicable to Common Shareholders	$(171,331)	$(30,993)	$113,891
Net Income (Loss) per Common Share	$(0.39)	$(0.07)	$0.27

Distributions to Common Shareholders	$59,966	$65,554	$74,685
Distributions per Common Share	$0.135	$0.15	$0.18
Cumulative Paid and Declared Distributions to Common Shareholders⁽¹⁾	$4,527,079	$4,445,060	$4,263,149
Cumulative Paid and Declared Distributions per Common Share⁽¹⁾	$21.57	$21.39	$21.00
Multiple of Net Asset Value (“NAV”) per Common Share⁽¹⁾	3.0x	2.7x	2.3x

Total Assets	$6,996,312	$7,234,855	$7,905,794
Total Liabilities	$2,118,522	$2,164,305	$2,603,811
Preferred Stock	$1,632,426	$1,630,514	$1,559,764
Net Asset Value (“NAV”) to Common Shareholders	$3,245,364	$3,440,036	$3,742,219
NAV per Common Share	$7.25	$7.84	$8.99

Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments	$1,716,035	$1,879,738	$1,101,604

Net of Cash Debt to Total Assets	28.7%	28.1%	31.2%
Net of Cash Debt to Equity Ratio⁽²⁾	40.8%	39.8%	46.2%
Net of Cash Asset Coverage of Debt Ratio⁽²⁾	345%	351%	316%

Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity	87.5%	91.9%	77.7%
Unsecured and Non-Recourse Debt as % of Total Debt	100.0%	100.0%	100.0%

⁽¹⁾	Declared dividends are through the August 2025 distribution. May through August 2025 distributions are estimated based on shares outstanding as of 5/7/2025.
⁽²⁾	Including our preferred stock as equity.

CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION

Prospect is declaring distributions to common shareholders as follows:

Monthly Cash Common Shareholder Distribution	Record Date	Payment Date	Amount ($ per share)
May 2025	5/28/2025	6/18/2025	$0.0450
June 2025	6/26/2025	7/22/2025	$0.0450
July 2025	7/29/2025	8/20/2025	$0.0450
August 2025	8/27/2025	9/18/2025	$0.0450

Prospect expects to declare September 2025 and October 2025 distributions to common shareholders in August 2025.

Taking into account past distributions and our current share count for declared distributions, since inception through our April 2025 declared distribution, Prospect will have distributed $21.57 per share to original common shareholders, representing 3.0 times March 2025 common NAV per share, aggregating $4.5 billion in cumulative distributions to all common shareholders.

Since Prospect’s initial public offering in July 2004 through March 31, 2025, Prospect has invested over $21 billion across over 450 investments, exiting over 325 of these investments.

Since Prospect’s initial public offering in July 2004 through March 31,2025, Prospect’s exited investments resulted in an investment level realized gross internal rate of return (“IRR”) of approximately 13% (based on total capital invested and of approximately $11.8 billion and total proceeds from such exited investments of approximately $14.9 billion).

Drivers focused on optimizing our business include: (1) rotation of assets into and increased focus on our core business of first lien senior secured middle market loans (with our first lien mix increasing 60 basis points from the prior quarter and 650 basis points from the prior year), including sometimes with selected equity investments, (2) continued amortization of our already significantly reduced subordinated structured notes portfolio (now down to 4.2% of total assets), (3) prudent exits of equity linked assets (including real estate properties and corporate investments, with an additional real estate property exit this past quarter), (4) enhancement of portfolio company operating performance, and (5) greater utilization of our cost efficient revolving floating rate credit facility (which significantly matches with our majority floating rate assets).

In our middle market lending strategy, we continued our focus on first lien senior secured loans during the quarter, with such investments totaling $149 million of our $196 million of originations during the quarter. Investments during the quarter included our new platform investment in Taos Footwear Holdings, LLC, a leading innovative footwear brand with a two decade history, and other follow-on investments in existing portfolio companies to support acquisitions, working capital needs, organic growth initiatives, and other objectives.

Our subordinated structured notes portfolio as of March 31, 2025 represented 4.2% of our investment portfolio, a reduction of 310 basis points from 7.3% as of March 31, 2024. Since the inception of this strategy in 2011 and through March 31, 2025, we have exited 15 subordinated structured note investments that have earned an unlevered investment level gross cash internal rate of return (“IRR”) of 12.1% and cash on cash multiple of 1.3 times. The remaining subordinated structured notes portfolio had a trailing twelve month average cash yield of 30.2% and an annualized GAAP yield of 4.4% (in each case as of March 31, 2025, based on fair value, and excluding investments being redeemed), with the difference between cash yield and GAAP yield representing amortization of our cost basis.

In our real estate property portfolio at National Property REIT Corp. (“NPRC”), since the inception of this strategy in 2012 and through March 31, 2025, we have exited 52 property investments (including one exit in the March 2025 quarter) that have earned an unlevered investment-level gross cash IRR of 24.0% and cash on cash multiple of 2.4 times. The remaining real estate property portfolio included 58 properties and paid us an income yield of 4.5% for the quarter ended March 31, 2025. Our aggregate investment in NPRC had a $460 million unrealized gain as of March 31, 2025.

Our senior management team and employees own 28.8% of all common shares outstanding (an increase of 240 basis points since June 30, 2024) or $0.9 billion of our common equity as measured at NAV.

PORTFOLIO UPDATE AND INVESTMENT ACTIVITY

All amounts in $000’s except per unit amounts	As of March 31, 2025	As of December 31, 2024	As of March 31, 2024

Total Investments (at fair value)	$6,901,364	$7,132,928	$7,806,712
Number of Portfolio Companies	114	114	122
Number of Industries	33	33	36

First Lien Debt	65.5%	64.9%	59.0%
Second Lien Debt	10.5%	10.2%	14.6%
Subordinated Structured Notes	4.2%	5.8%	7.3%
Unsecured Debt	0.1%	0.1%	0.1%
Equity Investments	19.7%	19.0%	19.0%
Mix of Investments with Underlying Collateral Security	80.2%	80.9%	80.9%

Annualized Current Yield – All Investments	9.2%	9.1%	9.7%
Annualized Current Yield – Performing Interest Bearing Investments	11.5%	11.2%	12.1%

Non-Accrual Loans as % of Total Assets ⁽¹⁾	0.6%	0.4%	0.4%

Middle-Market Loan Portfolio Company Weighted Average EBITDA⁽²⁾	$97,732	$101,418	$107,796
Middle-Market Loan Portfolio Company Weighted Average Net Leverage Ratio⁽²⁾	5.6x	5.6x	5.1x

⁽¹⁾	Calculated at fair value.
⁽²⁾	For additional disclosure see “Middle-Market Loan Portfolio Company Weighted Average EBITDA and Net Leverage” at the end of the release.

During the June 2025 (to date), March 2025, and December 2024 quarters, investment originations (including follow on investments in existing portfolio companies) and repayments were as follows:

All amounts in $000’s	Quarter Ended	Quarter Ended	Quarter Ended
All amounts in $000’s	June 30, 2025 (to date)	March 31, 2025	December 31, 2024

Total Originations	$65,577	$196,144	$134,956

Middle-Market Lending	75.5%	81.0%	67.7%
Middle-Market Lending / Buyouts	—%	4.9%	14.5%
Real Estate	21.3%	14.1%	17.8%
Subordinated Structured Notes	—%	—%	—%

Total Repayments and Sales	$20,348	$191,656	$383,363

Originations, Net of Repayments and Sales	$45,229	$4,488	$(248,407)

For additional disclosure see “Primary Origination Strategies” at the end of this release. Totals may not add to 100% given there are other smaller and non-core investment strategies.

CAPITAL AND LIQUIDITY

Our multi-year, long-term laddered and diversified historical funding profile has included a $2.1 billion revolving credit facility (aggregate commitments with 48 current lenders), program notes, institutional bonds, convertible bonds, listed preferred stock, and program preferred stock. We have retired multiple upcoming maturities and, after successfully retiring our $156.2M convertible bond maturity in March 2025 (utilizing existing liquidity on hand), have just $2.4M remaining of debt maturing during calendar year 2025.

On April 9, 2025, we commenced a tender offer to purchase for cash any and all of the $342.9 million aggregate principal amount of our outstanding 3.706% Notes due 2026 (the “2026 Notes”) at a purchase price of $990.00 for each $1,000 principal, plus accrued and unpaid interest. On April 22, 2025, $135.7 million was validly tendered and accepted, representing 39.6% of the outstanding notes. Approximately $207.2 million aggregate principal amount of the 2026 Notes remain outstanding.

Our total unfunded eligible commitments to portfolio companies totals approximately $43 million, of which $17 million are considered at our sole discretion, representing 0.6% and 0.2% of our total assets as of March 31, 2025, respectively.

	As of	As of
All amounts in $000’s	March 31, 2025	December 31, 2024
Net of Cash Debt to Total Assets Ratio	28.7%	28.1%
Net of Cash Debt to Equity Ratio⁽¹⁾	40.8%	39.8%
% of Interest-Bearing Assets at Floating Rates	77.5%	79.8%
Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity	87.5%	91.9%

Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments	$1,716,035	$1,879,738

Unencumbered Assets	$4,440,135	$4,763,601
% of Total Assets	63.5%	65.8%

⁽¹⁾	Including our preferred stock as equity.

The below table summarizes our March 2025 quarter term debt issuance and repurchase/repayment activity:

All amounts in $000’s	Principal	Coupon	Maturity
Debt Issuances
Prospect Capital InterNotes^®	$2,366	7.00% – 7.50%	March 2028 – April 2030
Total Debt Issuances	$2,366

Debt Repurchases/Repayments
Prospect Capital InterNotes^®	$3,302	2.50% – 5.50%	February 2025 – March 2052
2026 Notes	$33,325	3.706%	January 2026
2025 Notes	$156,168	6.375%	March 2025
Total Debt Repurchases/Repayments	$192,795

Net Debt Repurchases/Repayments	$(190,429)

We currently have three separate unsecured debt issuances aggregating approximately $0.8 billion outstanding, not including our program notes, with laddered maturities extending through October 2028. At March 31, 2025, $643 million of program notes were outstanding with laddered maturities through March 2052.

At March 31, 2025 our weighted average cost of unsecured debt financing was 4.33%, a decrease of 0.16% from December 31, 2024, and an increase of 0.19% from March 31, 2024.

We have raised significant capital from our existing $2.25 billion perpetual preferred stock offering programs. The preferred stock provides Prospect with a diversified source of programmatic capital without creating scheduled maturity risk due to the perpetual term of multiple preferred tranches.

DIVIDEND REINVESTMENT PLAN

We have adopted a dividend reinvestment plan (also known as our “DRIP”) that provides for reinvestment of our distributions on behalf of our shareholders, unless a shareholder elects to receive cash. On April 17, 2020, our board of directors approved amendments to the Company’s DRIP, effective May 21, 2020. These amendments principally provide for the number of newly-issued shares pursuant to the DRIP to be determined by dividing (i) the total dollar amount of the distribution payable by (ii) 95% of the closing market price per share of our stock on the valuation date of the distribution (providing a 5% discount to the market price of our common stock), a benefit to shareholders who participate. HOW TO PARTICIPATE IN OUR DIVIDEND REINVESTMENT PLAN

Shares held with a broker or financial institution

Many shareholders have been automatically “opted out” of our DRIP by their brokers. Even if you have elected to automatically reinvest your PSEC stock with your broker, your broker may have “opted out” of our DRIP (which utilizes DTC’s dividend reinvestment service), and you may therefore not be receiving the 5% pricing discount. Shareholders interested in participating in our DRIP to receive the 5% discount should contact their brokers to make sure each such DRIP participation election has been made through DTC. In making such DRIP election, each shareholder should specify to one’s broker the desire to participate in the “Prospect Capital Corporation DRIP through DTC” that issues shares based on 95% of the market price (a 5% discount to the market price) and not the broker’s own “synthetic DRIP” plan (if any) that offers no such discount. Each shareholder should not assume one’s broker will automatically place such shareholder in our DRIP through DTC. Each shareholder will need to make this election proactively with one’s broker or risk not receiving the 5% discount. Each shareholder may also consult with a representative of such shareholder’s broker to request that the number of shares the shareholder wishes to enroll in our DRIP be re-registered by the broker in the shareholder’s own name as record owner in order to participate directly in our DRIP.

Shares registered directly with our transfer agent

If a shareholder holds shares registered in the shareholder’s own name with our transfer agent (less than 0.1% of our shareholders hold shares this way) and wants to make a change to how the shareholder receives dividends, please contact our plan administrator, Equiniti Trust Company, LLC by calling (888) 888-0313 or by mailing Equiniti Trust Company LLC, PO Box 10027, Newark, New Jersey 07101.

EARNINGS CONFERENCE CALL

Prospect will host an earnings call on Friday, May 9, 2025 at 9:00 a.m. Eastern Time. Dial 888-338-7333. For a replay after May 9, 2025 visit www.prospectstreet.com or call 877-344-7529 with passcode 7141044.


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share and per share data)

	March 31, 2025			June 30, 2024
	(Unaudited)			(Audited)
Assets
Investments at fair value:
Control investments (amortized cost of $3,339,028 and $3,280,415, respectively)	$	3,702,161		$	3,872,575
Affiliate investments (amortized cost of $11,735 and $11,594, respectively)		22,693			18,069
Non-control/non-affiliate investments (amortized cost of $3,604,248 and $4,155,165, respectively)		3,176,510			3,827,599
Total investments at fair value (amortized cost of $6,955,011 and $7,447,174, respectively)		6,901,364			7,718,243
Cash and cash equivalents (restricted cash of $2,300 and $3,974, respectively)		54,498			85,872
Receivables for:
Interest, net		16,176			26,936
Other		1,910			1,091
Deferred financing costs on Revolving Credit Facility		20,018			22,975
Prepaid expenses		1,576			1,162
Due from broker		715			734
Due from Affiliate		55			79
Total Assets		6,996,312			7,857,092
Liabilities
Revolving Credit Facility		459,963			794,796
Public Notes (less unamortized discount and debt issuance costs of $8,841 and $12,433, respectively)		934,106			987,567
Prospect Capital InterNotes® (less unamortized debt issuance costs of $8,975 and $7,999, respectively)		633,923			496,029
Convertible Notes (less unamortized debt issuance costs of $0 and $649, respectively)		—			155,519
Due to Prospect Capital Management		39,781			58,624
Interest payable		21,709			21,294
Dividends payable		20,460			25,804
Accrued expenses		3,674			3,591
Due to Prospect Administration		2,809			5,433
Due to broker		1,748			10,272
Other liabilities		349			242
Total Liabilities		2,118,522			2,559,171
Commitments and Contingencies
Preferred Stock, par value $0.001 per share (847,900,000 and 647,900,000 shares of preferred stock authorized, with 80,000,000 and 80,000,000 as Series A1, 80,000,000 and 80,000,000 as Series M1, 80,000,000 and 80,000,000 as Series M2, 20,000,000 and 20,000,000 as Series AA1, 20,000,000 and 20,000,000 as Series MM1, 1,000,000 and 1,000,000 as Series A2, 6,900,000 and 6,900,000 as Series A, 80,000,000 and 80,000,000 as Series A3, 80,000,000 and 80,000,000 as Series M3, 90,000,000 and 80,000,000 as Series A4, 90,000,000 and 80,000,000 as Series M4, 20,000,000 and 20,000,000 as Series AA2, 20,000,000 and 20,000,000 as Series MM2, 90,000,000 and 0 as Series A5, and 90,000,000 and 0 as Series M5, each as of March 31, 2025 and June 30, 2024; 27,423,137 and 28,932,457 Series A1 shares issued and outstanding, 1,226,738 and 1,788,851 Series M1 shares issued and outstanding, 0 and 0 Series M2 shares issued and outstanding, 0 and 0 Series AA1 shares issued and outstanding, 0 and 0 Series MM1 shares issued and outstanding, 163,000 and 164,000 Series A2 shares issued and outstanding, 5,251,157 and 5,251,157 Series A shares issued and outstanding, 24,283,306 and 24,810,648 Series A3 shares issued and outstanding, 2,321,362 and 3,351,101 Series M3 shares issued and outstanding, 2,208,613 and 1,401,747 Series M4 shares issued and outstanding, 6,982,590 and 3,766,166 Series A4 issued and outstanding, 0 and 0 Series AA2 shares issued and outstanding, 0 and 0 Series MM2 shares issued and outstanding, 1,029,762 and 0 Series A5 issued and outstanding, and 193,289 and 0 Series M5 issued and outstanding as of March 31, 2025 and June 30, 2024, respectively) at carrying value plus cumulative accrued and unpaid dividends		1,632,426			1,586,188
Net Assets Applicable to Common Shares	$	3,245,364		$	3,711,733
Components of Net Assets Applicable to Common Shares and Net Assets, respectively
Common stock, par value $0.001 per share (1,152,100,000 and 1,352,100,000 common shares authorized; 447,344,378 and 424,846,963 issued and outstanding, respectively)		447			425
Paid-in capital in excess of par		4,304,253			4,208,607
Distributions in excess of earnings		(1,059,336	)		(497,299	)
Net Assets Applicable to Common Shares	$	3,245,364		$	3,711,733
Net Asset Value Per Common Share	$	7.25		$	8.74


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (Unaudited)

	Three Months Ended March 31,						Nine Months Ended March 31,
		2025			2024			2025			2024
Investment Income
Interest income (excluding payment-in-kind (“PIK”) interest income):
Control investments	$	60,584		$	47,295		$	170,352		$	138,111
Non-control/non-affiliate investments		75,874			97,665			257,943			309,770
Structured credit securities		3,272			4,748			11,505			30,317
Total interest income (excluding PIK interest income)		139,730			149,708			439,800			478,198
PIK interest income:
Control investments		8,915			21,210			42,509			72,161
Non-control/non-affiliate investments		10,611			13,014			30,360			30,651
Total PIK Interest Income		19,526			34,224			72,869			102,812
Total interest income		159,256			183,932			512,669			581,010
Dividend income:
Control investments		4,387			510			8,774			737
Affiliate investments		—			—			141			1,307
Non-control/non-affiliate investments		3,366			1,469			8,209			4,334
Total dividend income		7,753			1,979			17,124			6,378
Other income:
Control investments		416			14,192			15,799			55,553
Non-control/non-affiliate investments		3,291			2,112			6,898			6,461
Total other income		3,707			16,304			22,697			62,014
Total Investment Income		170,716			202,215			552,490			649,402
Operating Expenses
Base management fee		35,578			39,218			111,253			117,594
Income incentive fee		4,207			17,390			33,519			61,332
Interest and credit facility expenses		36,151			39,841			113,890			120,478
Allocation of overhead from Prospect Administration		5,318			5,708			16,734			20,073
Audit, compliance and tax related fees		583			583			2,383			2,079
Directors’ fees		150			150			450			416
Other general and administrative expenses		5,240			4,950			14,464			10,516
Total Operating Expenses		87,227			107,840			292,693			332,488
Net Investment Income		83,489			94,375			259,797			316,914
Net Realized and Net Change in Unrealized Gains (Losses) from Investments
Net realized gains (losses)
Control investments		4			1,186			6,374			1,039
Non-control/non-affiliate investments		(63,184	)		(70,949	)		(216,577	)		(278,168	)
Net realized gains (losses)		(63,180	)		(69,763	)		(210,203	)		(277,129	)
Net change in unrealized gains (losses)
Control investments		(73,292	)		125,827			(217,121	)		8,592
Affiliate investments		2,481			(487	)		4,483			2,101
Non-control/non-affiliate investments		(90,058	)		(5,523	)		(112,078	)		183,012
Net change in unrealized gains (losses)		(160,869	)		119,817			(324,716	)		193,705
Net Realized and Net Change in Unrealized Gains (Losses) from Investments		(224,049	)		50,054			(534,919	)		(83,424	)
Net realized gains (losses) on extinguishment of debt		644			(68	)		1,128			(212	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(139,916	)		144,361			(273,994	)		233,278
Preferred Stock dividends		(26,698	)		(24,812	)		(80,083	)		(72,033	)
Net gain (loss) on redemptions of Preferred Stock		(1,586	)		(925	)		(188	)		(46	)
Gain (loss) on Accretion to Redemption Value of Preferred Stock		(3,131	)		(4,733	)		(13,128	)		(4,733	)
Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders	$	(171,331	)	$	113,891		$	(367,393	)	$	156,466


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES ROLLFORWARD OF NET ASSET VALUE PER COMMON SHARE (in actual dollars)

	Three Months Ended March 31,								Nine Months Ended March 31,
		2025				2024				2025				2024
Per Share Data
Net asset value per common share at beginning of period	$	7.84			$	8.92			$	8.74			$	9.24
Net investment income⁽¹⁾		0.19				0.23				0.60				0.77
Net realized and change in unrealized gains (losses)⁽¹⁾		(0.51	)			0.11				(1.25	)			(0.22	)
Net increase (decrease) from operations		(0.33	)	₍₇₎		0.34				(0.66	)	₍₇₎		0.56		₍₇₎
Distributions of net investment income to preferred stockholders		(0.06	)	₍₄₎		(0.06	)	₍₃₎		(0.18	)	₍₄₎		(0.18	)	₍₃₎
Distributions of capital gains to preferred stockholders		—		₍₄₎		—		₍₃₎		—		₍₄₎		—		₍₃₎
Total distributions to preferred stockholders		(0.06	)			(0.06	)			(0.18	)			(0.18	)
Net increase (decrease) from operations applicable to common stockholders		(0.39	)			0.27		₍₇₎		(0.84	)			0.38
Distributions of net investment income to common stockholders		(0.14	)	₍₄₎		(0.18	)	₍₃₎		(0.47	)	₍₄₎		(0.52	)	₍₃₎
Return of capital to common stockholders		—		₍₄₎		—		₍₃₎		—		₍₄₎		(0.02	)	₍₃₎₍₆₎
Total distributions to common stockholders		(0.14	)			(0.18	)			(0.47	)			(0.54	)
Common stock transactions⁽²⁾		(0.08	)			(0.03	)			(0.21	)			(0.09	)
Net asset value per common share at end of period	$	7.25		₍₇₎	$	8.99		₍₇₎	$	7.25		₍₇₎	$	8.99

(1)	Per share data amount is based on the basic weighted average number of common shares outstanding for the year/period presented (except for dividends to stockholders which is based on actual rate per share). Realized gains (losses) is inclusive of net realized losses (gains) on investments, realized losses (gains) from extinguishment of debt and realized gains (losses) from the repurchases and redemptions of preferred stock.
(2)	Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our common stock dividend reinvestment plan, common shares issued to acquire investments, common shares repurchased below net asset value pursuant to our Repurchase Program, and common shares issued pursuant to the Holder Optional Conversion of our 5.50% Preferred Stock and 6.50% Preferred Stock.
(3)	Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2024.
(4)	Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2025.
(5)	Diluted net decrease from operations applicable to common stockholders was $0.39 for the three months ended March 31, 2025. Diluted net increase from operations applicable to common stockholders was $0.20 for the three months ended March 31, 2024. Diluted net decrease from operations applicable to common stockholders was $0.84 for the nine months ended March 31, 2025. Diluted net increase from operations applicable to common stockholders was $0.33 for the nine months ended March 31, 2024.
(6)	The amounts reflected for the respective fiscal periods were updated based on tax information received subsequent to our Form 10-K filing for the year ended June 30, 2023 and our Form 10-Q filing for March 31, 2024. Certain reclassifications have been made in the presentation of prior period amounts.
(7)	Does not foot due to rounding.

MIDDLE-MARKET LOAN PORTFOLIO COMPANY WEIGHTED AVERAGE EBITDA, NET LEVERAGE AND INTERNAL RATE OF RETURN

Middle-Market Loan Portfolio Company Weighted Average Net Leverage (“Middle-Market Portfolio Net Leverage”) and Middle-Market Loan Portfolio Company Weighted Average EBITDA (“Middle-Market Portfolio EBITDA”) provide clarity into the underlying capital structure of PSEC’s middle-market loan portfolio investments and the likelihood that such portfolio will make interest payments and repay principal. PSEC’s consumer finance middle-market lending / buyout portfolio company investments are excluded from Middle-Market Portfolio Net Leverage and Middle-Market Portfolio EBITDA because consumer finance companies typically rely on financing to fund their lending activities.

Middle-Market Portfolio Net Leverage reflects the net leverage of each of PSEC’s middle-market loan portfolio company debt investments, weighted based on the current fair market value of such debt investments. The net leverage for each middle-market loan portfolio company is calculated based on PSEC’s investment in the capital structure of such portfolio company, with a maximum limit of 10.0x adjusted EBITDA. This calculation excludes debt subordinate to PSEC’s position within the capital structure because PSEC’s exposure to interest payment and principal repayment risk is limited beyond that point. Additionally, subordinated structured notes, rated secured structured notes, real estate investments, investments for which EBITDA is not available, and equity investments, for which principal repayment is not fixed, are also not included in the calculation. The calculation does not exceed 10.0x adjusted EBITDA for any individual investment because 10.0x captures the highest level of risk to PSEC. Middle-Market Portfolio Net Leverage provides PSEC with some guidance as to PSEC’s exposure to the interest payment and principal repayment risk of PSEC’s middle-market loan portfolio. PSEC monitors its Middle-Market Portfolio Net Leverage on a quarterly basis.

Middle-Market Portfolio EBITDA is used by PSEC to supplement Middle-Market Portfolio Net Leverage and generally indicates a portfolio company’s ability to make interest payments and repay principal. Middle-Market Portfolio EBITDA is calculated using the EBITDA of each of PSEC’s middle-market loan portfolio companies, weighted based on the current fair market value of the related investments. The calculation provides PSEC with insight into profitability and scale of the portfolio companies within PSEC’s middle-market loan portfolio.

These calculations include addbacks that are typically negotiated and documented in the applicable investment documents, including but not limited to transaction costs, share-based compensation, management fees, foreign currency translation adjustments, and other nonrecurring transaction expenses.

Together, Middle-Market Portfolio Net Leverage and Middle-Market Portfolio EBITDA assist PSEC in assessing the likelihood that PSEC will timely receive interest and principal payments. However, these calculations are not meant to substitute for an analysis of PSEC’s underlying portfolio company debt investments, but to supplement such analysis.

Internal Rate of Return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.

PRIMARY ORIGINATION STRATEGIES

Lending to Companies – We make directly-originated, agented loans to companies, including companies which are controlled by private equity sponsors and companies that are not controlled by private equity sponsors (such as companies that are controlled by the management team, the founder, a family or public shareholders). This debt can take the form of first lien, second lien, unitranche or unsecured loans. These loans typically have equity subordinate to our loan position. We may also purchase selected equity investments in such companies. In addition to directly-originated, agented loans, we also invest in senior and secured loans syndicated loans and high yield bonds that have been sold to a club or syndicate of buyers, both in the primary and secondary markets. These investments are often purchased with a long term, buy-and-hold outlook, and we often look to provide significant input to the transaction by providing anchoring orders.

Lending to Companies and Purchasing Controlling Equity Positions in Such Companies – This strategy involves purchasing senior and secured yield-producing debt and controlling equity positions in operating companies across various industries. We believe this strategy provides enhanced certainty of closing to sellers and the opportunity for management to continue on in their current roles. These investments are often structured in tax-efficient partnerships, enhancing returns.

Purchasing Controlling Equity Positions and Lending to Real Estate Companies – We purchase debt and controlling equity positions in tax-efficient real estate investment trusts (“REIT” or “REITs”). The real estate investments of National Property REIT Corp. (“NPRC”) are in various classes of developed and occupied real estate properties that generate current yields, including multi-family properties, student housing and senior living. NPRC seeks to identify properties that have historically significant occupancy rates and recurring cash flow generation. NPRC generally co-invests with established and experienced property management teams that manage such properties after acquisition. Additionally, NPRC makes investments in rated secured structured notes (primarily debt of structured credit). NPRC also purchases loans originated by certain consumer loan facilitators. It purchases each loan in its entirety (i.e., a “whole loan”). The borrowers are consumers, and the loans are typically serviced by the facilitators of the loans.

Investing in Structured Credit – We make investments in structured credit, often taking a significant position in subordinated structured notes (equity). The underlying portfolio of each structured credit investment is diversified across approximately 100 to 200 broadly syndicated loans and does not have direct exposure to real estate, mortgages, or consumer-based credit assets. The structured credit portfolios in which we invest are managed by established collateral management teams with many years of experience in the industry.

About Prospect Capital Corporation

Prospect is a business development company lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.

For additional information, contact:

Grier Eliasek, President and Chief Operating Officer
grier@prospectcap.com
Telephone (212) 448-0702

The MIL Network –

May 9, 2025

MIL-OSI: Oportun Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

GAAP Net income of $9.8 million increased $36 million year-over-year

GAAP EPS of $0.21 increased $0.89 year-over-year

Adjusted EPS of $0.40 increased $0.31 year-over-year

Operating expenses of $93 million reduced 15% year-over-year

Reiterating full year 2025 credit performance and profit expectations

SAN CARLOS, Calif., May 08, 2025 (GLOBE NEWSWIRE) — Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the “Company”) today reported financial results for the first quarter ended March 31, 2025.

“We started 2025 with a strong first quarter, building on the momentum from last year. I’m pleased to report our second consecutive quarter of GAAP profitability, with net income increasing by $36 million year-over-year,” said Raul Vazquez, CEO of Oportun. “We’ve also delivered profitability on an adjusted basis for the fifth consecutive quarter, with Adjusted Net Income up $15 million year-over-year. Our Return on Equity (ROE) improved to 11%, while our Adjusted ROE also improved by 17 percentage points, to 21%. We maintained strong cost discipline, reducing quarterly operating expenses by 15% year-over-year during the quarter. In addition, credit continued to perform well, with 30-plus day delinquencies and dollar net-charge-offs declining year-over-year for the fifth and sixth consecutive quarters, respectively. Given the current macroeconomic uncertainty, we are prudently moderating our expectations for full year loan originations growth from the 10% to 15% range, to approximately 10%. Factoring in both this adjustment and our Q1 outperformance, we’re reiterating our full year 2025 Adjusted EPS guidance of $1.10 to $1.30 per share, implying growth of 53% to 81%.

First Quarter 2025 Results

Metric	GAAP		Adjusted¹
	1Q25	1Q24	1Q25	1Q24
Total revenue²	$236	$250
Net income (loss)	$9.8	$(26)	$19	$3.6
Diluted EPS	$0.21	$(0.68)	$0.40	$0.09
Adjusted EBITDA			$34	$1.9
Dollars in millions, except per share amounts.
¹See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures.
²1Q24 total revenue includes $11 million from the credit cards receivable portfolio which was sold in November 2024.

Business Highlights

Aggregate Originations were $469 million, a 39% increase compared to $338 million in the prior-year quarter
Portfolio Yield was 33.0%, an increase of 49 basis points compared to 32.5% in the prior-year quarter
Owned Principal Balance at end-of-period was $2.7 billion, a decrease of 3% compared to $2.8 billion in the prior-year quarter
Annualized Net Charge-Off Rate of 12.2%, an increase of 16 basis points compared to 12.0% in the prior-year quarter; dollar Net Charge-Offs declined 5% year-over-year, marking the sixth consecutive quarterly decrease
30+ Day Delinquency Rate of 4.7%, a decrease of 56 basis points compared to 5.2% for the prior-year quarter; fifth consecutive quarterly decline

Financial and Operating Results

All figures are as of or for the quarter ended March 31, 2025, unless otherwise noted.

Operational Drivers

Originations – Aggregate Originations for the first quarter were $469 million, an increase of 39% compared to $338 million in the prior-year quarter, as the Company grew originations year-over-year for the second consecutive quarter. Management currently expects full year 2025 Aggregate Originations growth in the 10% range.

Portfolio Yield – Portfolio Yield for the first quarter was 33.0%, an increase of 49 basis points as compared to 32.5% in the prior-year quarter, primarily attributable to increased pricing on loans.

Financial Results

Revenue – Total revenue for the first quarter was $236 million, a decrease of 6% as compared to $250 million in the prior-year quarter. The decline was primarily due to the absence of $11 million of revenue from the credit cards receivable portfolio which was sold in November 2024. Net revenue for the first quarter was $106 million, a 34% increase compared to net revenue of $79 million in the prior-year quarter, as reduced fair value marks and net charge-offs more than offset the total revenue decline and higher interest expense.

Operating Expense and Adjusted Operating Expense – For the first quarter, total operating expense was $93 million, a decrease of 15% as compared to $110 million in the prior-year quarter. The decrease is attributable to a combined set of cost reduction initiatives enacted during the last year. The Company continues to expect full year 2025 operating expenses of approximately $390 million, averaging $97.5 million a quarter for a 5% reduction from full year 2024. Adjusted Operating Expense, which excludes stock-based compensation expense and certain non-recurring charges, decreased 13% year-over-year to $89 million.

Net Income (Loss) and Adjusted Net Income (Loss) – Net income was $9.8 million as compared to a net loss of $26 million in the prior-year quarter. The increased profitability was attributable to expense reduction initiatives, and increased net revenue driven by reduced fair value mark-to-market impact and improved credit performance. Adjusted Net Income was $19 million as compared to $3.6 million in the prior-year quarter. The increase in Adjusted Net Income was also driven by reduced operating expenses, along with improved credit performance.

Earnings (Loss) Per Share and Adjusted EPS – GAAP earnings per share, basic and diluted, were both $0.21 during the first quarter, compared to GAAP net loss per share, basic and diluted of $0.68 in the prior-year quarter. Adjusted Earnings Per Share was $0.40 as compared to $0.09 in the prior-year quarter.

Adjusted EBITDA – Adjusted EBITDA was $34 million, up from $1.9 million in the prior-year quarter, driven by the cost reduction initiatives enacted during the last year along with improved credit performance.

Credit and Operating Metrics

Net Charge-Off Rate – The Annualized Net Charge-Off Rate for the quarter was 12.2%, compared to 12.0% for the prior-year quarter. Net Charge-offs in dollars for the quarter were down 5% to $81 million, compared to $85 million for the prior-year quarter.

30+ Day Delinquency Rate – The Company’s 30+ Day Delinquency Rate was 4.7% at the end of the quarter, compared to 5.2% at the end of the prior-year quarter.

Following the first quarter, the Company’s 30+ Day Delinquency Rate declined to 4.5% at the end of April.

Operating Expense Ratio and Adjusted Operating Expense Ratio – Operating Expense Ratio for the quarter was 13.9% as compared to 15.5% in the prior-year quarter, a 157 basis points improvement. Adjusted Operating Expense Ratio was 13.3% as compared to 14.3% in the prior-year quarter, a 102 basis points improvement. The Adjusted Operating Expense Ratio excludes stock-based compensation expense and certain non-recurring charges. The improvement in Adjuste d Operating Expense Ratio is primarily attributable to the Company’s focus on reducing operating expenses, partially offset by a decrease in Average Daily Principal Balance including the impact from the sale of the credit cards receivable portfolio in November 2024.

Return On Equity (“ROE”) and Adjusted ROE – ROE for the quarter was 11%, as compared to (27)% in the prior-year quarter. The improvement was attributable to the increase in net income. Adjusted ROE for the quarter was 21%, as compared to 4% in the prior-year quarter.

Secured Personal Loans

As of March 31, 2025, the Company had a secured personal loan receivables balance of $178 million, up from $112 million at the end of the first quarter of 2024. Oportun currently offers secured personal loans in California, Texas, Florida, Arizona, New Jersey and Illinois. During the full year 2024, secured personal loans losses ran approximately 500 basis points lower compared to unsecured personal loans. Furthermore, secured personal loans originated during the first quarter are expected to generate approximately twice the revenue per loan compared to unsecured personal loans, primarily due to higher average loan sizes.

Funding and Liquidity

As of March 31, 2025, total cash was $231 million, consisting of cash and cash equivalents of $79 million and restricted cash of $152 million. Cost of Debt and Debt-to-Equity were 8.2% and 7.6x, respectively, for and at the end of the first quarter 2025 as compared to 7.5% and 7.3x, respectively, for and at the end of the prior-year quarter. As of March 31, 2025, the Company had $317 million of undrawn capacity on its existing $766 million personal loan warehouse lines. The Company’s personal loan warehouse lines are committed through September 2027 and August 2028.

Financial Outlook for Second Quarter and Full Year 2025

Oportun is providing the following guidance for 2Q 2025 and full year 2025 as follows:

	2Q 2025	Full Year 2025
Total Revenue	$237 – $242M	$945 – $970M
Annualized Net Charge-Off Rate	11.90% +/- 15 bps	11.5% +/- 50 bps
Adjusted EBITDA¹	$29 – $34M	$135 – $145M
Adjusted Net Income¹	—	$53 – $63M
Adjusted EPS¹	—	$1.10 – $1.30
GAAP Net Income	—	GAAP Profitable


¹ See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Forward Looking Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures.

Paul Appleton, Treasurer and Head of Capital Markets, serving as interim Chief Financial Officer

As previously indicated in a March 17th 2025 Form 8-K filing, Paul Appleton, the Company’s Treasurer and Head of Capital Markets, began serving as interim Chief Financial Officer on March 28th, 2025. Mr. Appleton’s appointment followed Jonathan Coblentz’ retirement as the Company’s Chief Financial Officer and he is expected to serve in this interim role until the search for Mr. Coblentz’ successor is completed. With the assistance of a leading executive search firm, the Company has identified and engaged with several highly qualified candidates in connection with its search process for a permanent chief financial officer.

Conference Call

As previously announced, Oportun’s management will host a conference call to discuss first quarter 2025 results at 5:00 p.m. ET (2:00 p.m. PT) today. A live webcast of the call will be accessible from the Investor Relations page of Oportun’s website at https://investor.oportun.com. The dial-in number for the conference call is 1-888-396-8049 (toll-free) or 1-416-764-8646 (international). Participants should call in 10 minutes prior to the scheduled start time. Both the call and webcast are open to the general public. For those unable to listen to the live broadcast, a webcast replay of the call will be available at https://investor.oportun.com for one year. A file that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, will be available on the Investor Relations page of Oportun’s website at https://investor.oportun.com following the conference call.

About Non-GAAP Financial Measures

This press release presents information about the Company’s Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted Operating Expense, Adjusted Operating Expense Ratio, and Adjusted ROE, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes these non-GAAP measures can be useful measures for period-to-period comparisons of its core business and provide useful information to investors and others in understanding and evaluating its operating results. Non-GAAP financial measures are provided in addition to, and not as a substitute for, and are not superior to, financial measures calculated in accordance with GAAP. In addition, the non-GAAP measures the Company uses, as presented, may not be comparable to similar measures used by other companies. Reconciliations of non-GAAP to GAAP measures can be found below.

About Oportun

Oportun (Nasdaq: OPRT) is a mission-driven financial services company that puts its members’ financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than $20.3 billion in responsible and affordable credit, saved its members more than $2.4 billion in interest and fees, and helped its members set aside an average of more than $1,800 annually. For more information, visit Oportun.com.

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, 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 contained in this press release, including statements as to future performance, results of operations and financial position; achievement of the Company’s strategic priorities and goals; expectations regarding the Company’s interim CFO; the Company’s expectations regarding macroeconomic conditions; the Company’s profitability and future growth opportunities including expected revenue growth in connection with increasing originations; the effect of and trends in fair value mark-to-market adjustments on the Company’s loan portfolio and asset-backed notes; the Company’s second quarter and full year 2025 outlook; the Company’s expectations regarding Adjusted EPS in full year 2025; the Company’s expectations related to future profitability on an adjusted basis, and the plans and objectives of management for our future operations, are forward-looking statements. These statements can be generally identified by terms such as “expect,” “plan,” “goal,” “target,” “anticipate,” “assume,” “predict,” “project,” “outlook,” “continue,” “due,” “may,” “believe,” “seek,” or “estimate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws, Oportun disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements. These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Oportun has based these forward-looking statements on its current expectations and projections about future events, financial trends and risks and uncertainties that it believes may affect its business, financial condition and results of operations. These risks and uncertainties include those risks described in Oportun’s filings with the Securities and Exchange Commission, including Oportun’s most recent annual report on Form 10-K, and include, but are not limited to, Oportun’s ability to retain existing members and attract new members; Oportun’s ability to accurately predict demand for, and develop its financial products and services; the effectiveness of Oportun’s A.I. model; macroeconomic conditions, including fluctuating inflation and market interest rates; increases in loan non-payments, delinquencies and charge-offs; Oportun’s ability to increase market share and enter into new markets; Oportun’s ability to realize the benefits from acquisitions and integrate acquired technologies; the risk of security breaches or incidents affecting the Company’s information technology systems or those of the Company’s third-party vendors or service providers; Oportun’s ability to successfully offer loans in additional states; Oportun’s ability to compete successfully with other companies that are currently in, or may in the future enter, its industry; and changes in Oportun’s ability to obtain additional financing on acceptable terms or at all.

Contacts

Investor Contact
Dorian Hare
(650) 590-4323
ir@oportun.com

Media Contact
Michael Azzano
Cosmo PR for Oportun
(415) 596-1978
michael@cosmo-pr.com

Oportun and the Oportun logo are registered trademarks of Oportun, Inc.


Oportun Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except share and per share data, unaudited)

	Three Months Ended March 31,
		2025			2024
Revenue
Interest income	$	220.2		$	230.6
Non-interest income		15.7			19.9
Total revenue		235.9			250.5
Less:
Interest expense		57.4			54.5
Net decrease in fair value		(72.7	)		(116.9	)
Net revenue		105.8			79.2

Operating expenses:
Technology and facilities		36.4			47.1
Sales and marketing		19.9			16.0
Personnel		21.0			24.5
Outsourcing and professional fees		8.0			10.2
General, administrative and other		7.4			11.8
Total operating expenses		92.7			109.6

Income (loss) before taxes		13.2			(30.5	)
Income tax expense (benefit)		3.4			(4.0	)
Net income (loss)	$	9.8		$	(26.4	)

Diluted Earnings (Loss) per Common Share	$	0.21		$	(0.68	)
Diluted Weighted Average Common Shares		47,037,799			38,900,876

Note: Numbers may not foot or cross-foot due to rounding.


Oportun Financial Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited)

	March 31,			December 31,
		2025			2024
Assets
Cash and cash equivalents	$	78.5		$	60.0
Restricted cash		152.4			154.7
Loans receivable at fair value		2,770.5			2,778.5
Capitalized software and other intangibles		81.9			86.6
Right of use assets – operating		9.3			9.8
Other assets		133.6			137.6
Total assets	$	3,226.3		$	3,227.1

Liabilities and stockholders’ equity
Liabilities
Secured financing	$	445.5		$	535.5
Asset-backed notes at fair value		863.9			1,080.7
Asset-backed borrowings at amortized cost		1,281.3			984.3
Acquisition and corporate financing		199.7			203.8
Lease liabilities		16.1			18.2
Other liabilities		53.8			50.9
Total liabilities		2,860.2			2,873.3
Stockholders’ equity
Common stock		—			—
Common stock, additional paid-in capital		615.2			612.6
Accumulated deficit		(242.8	)		(252.5	)
Treasury stock		(6.3	)		(6.3	)
Total stockholders’ equity		366.1			353.8
Total liabilities and stockholders’ equity	$	3,226.3		$	3,227.1

Note: Numbers may not foot or cross-foot due to rounding.


Oportun Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions, unaudited)

	Three Months Ended March 31,
		2025			2024
Cash flows from operating activities
Net income (loss)	$	9.8		$	(26.4	)
Adjustments for non-cash items		83.2			128.2
Proceeds from sale of loans in excess of originations of loans sold and held for sale		3.0			1.1
Changes in balances of operating assets and liabilities		4.9			(17.0	)
Net cash provided by operating activities		101.0			85.9

Cash flows from investing activities
Net loan principal repayments (loan originations)		(49.7	)		38.3
Proceeds from loan sales originated as held for investment		—			1.4
Capitalization of system development costs		(5.6	)		(3.1	)
Other, net		(0.2	)		(0.1	)
Net cash provided by (used in) investing activities		(55.5	)		36.5

Cash flows from financing activities
Borrowings		745.4			260.3
Repayments		(774.0	)		(391.8	)
Net stock-based activities		(0.5	)		(0.2	)
Net cash used in financing activities		(29.1	)		(131.8	)

Net increase (decrease) in cash and cash equivalents and restricted cash		16.3			(9.5	)
Cash and cash equivalents and restricted cash beginning of period		214.6			206.0
Cash and cash equivalents and restricted cash end of period	$	231.0		$	196.6

Note: Numbers may not foot or cross-foot due to rounding.


Oportun Financial Corporation CONSOLIDATED KEY PERFORMANCE METRICS (unaudited)

	Three Months Ended March 31,
Key Financial and Operating Metrics	2025			2024
Aggregate Originations (Millions)	$	469.4		$	338.2
Portfolio Yield (%)		33.0	%		32.5	%
30+ Day Delinquency Rate (%)		4.7	%		5.2	%
Annualized Net Charge-Off Rate (%)		12.2	%		12.0	%

Other Metrics
Managed Principal Balance at End of Period (Millions)	$	2,955.0		$	3,027.5
Owned Principal Balance at End of Period (Millions)	$	2,659.4		$	2,752.4
Average Daily Principal Balance (Millions)	$	2,705.2		$	2,851.7

Note: Numbers may not foot or cross-foot due to rounding.

Oportun Financial Corporation
ABOUT NON-GAAP FINANCIAL MEASURES
(unaudited)

This press release dated May 8, 2025 contains non-GAAP financial measures. The following tables reconcile the non-GAAP financial measures in this press release to the most directly comparable financial measures prepared in accordance with GAAP.

The Company believes that the provision of these non-GAAP financial measures can provide useful measures for period-to-period comparisons of Oportun’s core business and useful information to investors and others in understanding and evaluating its operating results. However, non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.

Adjusted EBITDA

The Company defines Adjusted EBITDA as net income, adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted EBITDA is an important measure because it allows management, investors and its board of directors to evaluate and compare operating results, including return on capital and operating efficiencies, from period to period by making the adjustments described below. In addition, it provides a useful measure for period-to-period comparisons of Oportun’s business, as it removes the effect of income taxes, certain non-cash items, variable charges and timing differences.

The Company believes it is useful to exclude the impact of income tax expense, as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations.
The Company believes it is useful to exclude depreciation and amortization and stock-based compensation expense because they are non-cash charges.
The Company believes it is useful to exclude the impact of interest expense associated with the Company’s corporate financing facilities, including the senior secured term loan and the residual financing facility, as it views this expense as related to its capital structure rather than its funding.
The Company excludes the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges because it does not believe that these items reflect ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.
The Company also excludes fair value mark-to-market adjustments on its loans receivable portfolio and asset-backed notes carried at fair value because these adjustments do not impact cash.

Adjusted Net Income

The Company defines Adjusted Net Income as net income adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted Net Income is an important measure of operating performance because it allows management, investors, and the Company’s board of directors to evaluate and compare its operating results, including return on capital and operating efficiencies, from period to period, excluding the after-tax impact of non-cash, stock-based compensation expense and certain non-recurring charges.

The Company believes it is useful to exclude the impact of income tax expense (benefit), as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations. The Company also includes the impact of normalized income tax expense by applying a normalized statutory tax rate.
The Company believes it is useful to exclude the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges because it does not believe that these items reflect its ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.
The Company believes it is useful to exclude stock-based compensation expense because it is a non-cash charge.
The Company also excludes the fair value mark-to-market adjustment on its asset-backed notes carried at fair value to align with the 2023 accounting policy decision to account for new debt financings at amortized cost.

Adjusted Operating Expense and Adjusted Operating Expense Ratio

The Company defines Adjusted Operating Expense as total operating expenses adjusted to exclude stock-based compensation expense and certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges. Other non-recurring charges include litigation reserve, impairment charges, and debt amendment costs related to our Corporate Financing facility. The Company defines Adjusted Operating Expense Ratio as Adjusted Operating Expense divided by Average Daily Principal Balance. The Company believes Adjusted Operating Expense is an important measure because it allows management, investors and Oportun’s board of directors to evaluate and compare its operating costs from period to period, excluding the impact of non-cash, stock-based compensation expense and certain non-recurring charges. The Company believes Adjusted Operating Expense Ratio is an important measure because it allows management, investors and Oportun’s board of directors to evaluate how efficiently the Company is managing costs relative to revenue and Average Daily Principal Balance.

Adjusted Return on Equity
The Company defines Adjusted Return on Equity (“ROE”) as annualized Adjusted Net Income divided by average stockholders’ equity. Average stockholders’ equity is an average of the beginning and ending stockholders’ equity balance for each period. The Company believes Adjusted ROE is an important measure because it allows management, investors and its board of directors to evaluate the profitability of the business in relation to its stockholders’ equity and how efficiently it generates income from stockholders’ equity.

Adjusted EPS
The Company defines Adjusted EPS as Adjusted Net Income divided by weighted average diluted shares outstanding.


Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited)

	Three Months Ended March 31,
Adjusted EBITDA		2025			2024
Net income (Loss)	$	9.8		$	(26.4	)
Adjustments:
Income tax expense (benefit)		3.4			(4.0	)
Interest on corporate financing		9.7			13.9
Depreciation and amortization		11.1			13.2
Stock-based compensation expense		2.8			4.0
Workforce optimization expenses		(0.1	)		0.8
Other non-recurring charges		1.8			3.5
Fair value mark-to-market adjustment		(4.9	)		(3.0	)
Adjusted EBITDA	$	33.5		$	1.9

	Three Months Ended March 31,
Adjusted Net Income	2025			2024
Net income (Loss)	$	9.8		$	(26.4	)
Adjustments:
Income tax expense (benefit)		3.4			(4.0	)
Stock-based compensation expense		2.8			4.0
Workforce optimization expenses		(0.1	)		0.8
Other non-recurring charges		1.8			3.5
Mark-to-market adjustment on ABS notes		7.9			27.1
Adjusted income before taxes		25.5			5.0
Normalized income tax expense		6.9			1.3
Adjusted Net Income (Loss)	$	18.6		$	3.6

Stockholders’ equity	$	366.1		$	382.0
GAAP ROE		11.0	%	(27.0		)%
Adjusted ROE (%) ⁽¹⁾		21.0	%		3.7	%

Note: Numbers may not foot or cross-foot due to rounding.
⁽¹⁾ Calculated as Adjusted Net Income (Loss) divided by average stockholders’ equity.


Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited)

	Three Months Ended March 31,
Adjusted Operating Expense Ratio	2025			2024
OpEx Ratio		13.9	%		15.5	%

Total Operating Expense	$	92.7		$	109.6
Adjustments:
Stock-based compensation expense		(2.8	)		(4.0	)
Workforce optimization expenses		0.1			(0.8	)
Other non-recurring charges		(1.0	)		(3.1	)
Total Adjusted Operating Expense	$	88.9		$	101.7

Average Daily Principal Balance	$	2,705.2		$	2,851.7

Adjusted OpEx Ratio		13.3	%		14.3	%

Note: Numbers may not foot or cross-foot due to rounding.


Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except share and per share data, unaudited)

	Three Months Ended March 31,
GAAP Earnings (loss) per Share		2025		2024
Net income (loss)	$	9.8	$	(26.4	)
Net income (loss) attributable to common stockholders	$	9.8	$	(26.4	)

Basic weighted-average common shares outstanding		45,496,705		38,900,876
Weighted average effect of dilutive securities:
Stock options		—		—
Restricted stock units		1,541,094		—
Diluted weighted-average common shares outstanding		47,037,799		38,900,876

Earnings (loss) per share:
Basic	$	0.21	$	(0.68	)
Diluted	$	0.21	$	(0.68	)

	Three Months Ended March 31,
Adjusted Earnings (loss) Per Share		2025		2024
Diluted earnings (loss) per share	$	0.21	$	(0.68	)

Adjusted Net Income	$	18.6	$	3.6

Basic weighted-average common shares outstanding		45,496,705		38,900,876
Weighted average effect of dilutive securities:
Stock options		—		—
Restricted stock units		1,541,094		435,763
Diluted adjusted weighted-average common shares outstanding		47,037,799		39,336,639

Adjusted Earnings (loss) Per Share	$	0.40	$	0.09

Note: Numbers may not foot or cross-foot due to rounding.


Oportun Financial Corporation RECONCILIATION OF FORWARD LOOKING NON-GAAP FINANCIAL MEASURES (in millions, unaudited)

	2Q 2025						FY 2025
	Low			High			Low		High
Adjusted EBITDA
Net income	$	3.3	*	$	7.2	*	$	23.2	$	33.4
Adjustments:
Income tax expense (benefit)		0.9			1.9			6.3		9.0
Interest on corporate financing		9.0			9.0			36.5		36.5
Depreciation and amortization		10.7			10.7			41.1		41.1
Stock-based compensation expense		3.7			3.7			13.7		13.7
Other non-recurring charges		1.4			1.4			6.0		6.0
Fair value mark-to-market adjustment	*			*				8.3		5.3
Adjusted EBITDA	$	29.0		$	34.0		$	135.0	$	145.0

*Due to the uncertainty in macroeconomic conditions and quarterly volatility in the fair value mark to market adjustment, we are unable to precisely forecast the fair value mark-to-market adjustments on our loan portfolio and asset-backed notes on a quarterly basis. As a result, while we fully expect there to be a fair value mark-to-market adjustment which could have an impact on GAAP net income (loss), the net income (loss) number shown above assumes no change in the fair value mark-to-market adjustment.

	FY 2025
Adjusted Net Income and Adjusted EPS	Low		High
Net income	$	23.2	$	33.4
Adjustments:
Income tax expense (benefit)		6.3		9.0
Stock-based compensation expense		13.7		13.7
Other non-recurring charges		6.0		6.0
Mark-to-market adjustment on ABS notes		23.5		23.5
Adjusted income before taxes	$	72.6	$	85.6
Normalized income tax expense		19.6		23.1
Adjusted Net Income	$	53.0	$	62.5

Diluted weighted-average common shares outstanding		48.0		48.0

Diluted earnings per share	$	0.48	$	0.70
Adjusted Earnings Per Share	$	1.10	$	1.30

Note: Numbers may not foot or cross-foot due to rounding.

The MIL Network –

May 9, 2025

MIL-OSI: CEA Industries Inc. Provides Update on Fat Panda Acquisition
Source: GlobeNewswire (MIL-OSI)

Transaction reflects CEA Industries’ strategic evolution and pivotal entry into attractive high-growth vape market

Accelerates Fat Panda’s growth initiatives as central Canada’s largest retailer and manufacturer of e-cigarettes, vape devices and e-liquids

Reiterates expectation for acquisition to close in the first half of 2025

Louisville, Colorado, May 08, 2025 (GLOBE NEWSWIRE) — CEA Industries Inc. (NASDAQ: CEAD, CEADW) (“CEA Industries” or the “Company”), today announced a progress update on its acquisition of Fat Panda Ltd. (“Fat Panda”), a leading central Canadian retailer and manufacturer of nicotine vape products. This transaction and access to the Company’s resources will accelerate Fat Panda’s strategic initiatives and enhance its leadership position in the rapidly evolving Canadian vape market. Notably, this acquisition marks CEA Industries’ entry into the attractive high-growth vape industry, which is benefiting from secular tailwinds.

CEA Industries will help expand Fat Panda’s vertically integrated operations through organic and inorganic growth initiatives while optimizing its retail footprint which includes 33 locations across Manitoba, Ontario, and Saskatchewan. Additionally, Fat Panda operates its own e-commerce platform and offers a comprehensive product lineup, including in-house premium e-liquids and a portfolio of trademarks and intellectual property.

Fat Panda Preliminary 2024 Financial Highlights (Unaudited)
- Revenue of CAD $38.5 million (USD $28.5 million) increased 14% from CAD $33.8 million (USD $25.4 million) in fiscal 2023
- Gross Margins of 39% in fiscal 2024 compared to 46% in fiscal 2023
- Operating Expenses improved 11% to CAD $13.4 million (USD $9.9 million) in fiscal 2024 from CAD $15.1 million (USD $11.3 million) in fiscal 2023
- Net Income of CAD $1.2 million (USD $0.9 million), an increase of 126% from CAD $0.5 million (USD $0.4 million) in fiscal 2023 after accounting for one time ownership distributions
- Adjusted EBITDA (before ownership distributions) of CAD $8.0 million (USD $5.9 million), reflecting a 16% year-over-year improvement from CAD $6.8 million (USD $5.1 million) in fiscal 2023
“With the acquisition nearing completion, we are thrilled for this transformative step in our strategic evolution as a public company,” said Tony McDonald, Chairman and CEO of CEA Industries. “As a market-leading vape retailer and manufacturer, Fat Panda offers an extensive network of retail locations and dominant market share in central Canada. Their vertically integrated operations, robust e-commerce presence, and experienced management create a compelling opportunity. Further, this transaction positions us strategically to capitalize on the fastest-growing segment of the nicotine market, enhancing our competitive advantages. With Fat Panda’s proven track record of resilience, scalability, and double-digit growth, we are confident that combining their solid foundation with CEA’s resources will drive accretive growth and deliver meaningful long-term value to our shareholders.”

The Company continues to expect to complete the acquisition in the first half of 2025, subject to certain customary closing conditions described below.

Acquisition Disclaimers

Completion of the acquisition is subject to a number of conditions, which include the preparation and delivery of the Fat Panda companies audited and unaudited interim consolidated financial statements, satisfaction of the financial condition of Fat Panda, completion of due diligence by the Company, receipt of all necessary government approvals and licenses, and continuation and reformation of the various retail location leases. The Company is permitted to waive one or more of the closing conditions. Completion is also subject to the Company obtaining satisfactory financing for a portion of the cash purchase price. The acquisition agreement also provides for the selling persons to make representations and warranties and undertake certain covenants about many aspects of the business of Fat Panda that shall be true and correct and performed at or prior to closing. The representations, warranties and covenants are those that are typical in relation to the acquisition of an operating business. The Company has also made certain representations, warranties and covenants, the principal one of which is to obtain financing for a part of the purchase price, which if not obtained will permit the Company to terminate the purchase agreement.

About CEA Industries Inc.

CEA Industries Inc. (www.ceaindustries.com) provides a suite of complementary and adjacent offerings to the controlled environment agriculture industry. The Company’s comprehensive solutions, when aligned with industry operators’ product and sales initiatives, support the development of the global ecosystem for indoor cultivation.

Forward Looking Statements

This press release may contain statements of a forward-looking nature relating to future events. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect our current beliefs, and a number of important factors could cause actual results to differ materially from those expressed in this press release, including the factors set forth in “Risk Factors” set forth in our annual and quarterly reports filed with the Securities and Exchange Commission (“SEC”), and subsequent filings with the SEC. Please refer to our SEC filings for a more detailed discussion of the risks and uncertainties associated with our business, including but not limited to the risks and uncertainties associated with our business prospects and the prospects of our existing and prospective customers; the inherent uncertainty of product development; regulatory, legislative and judicial developments, especially those related to changes in, and the enforcement of, cannabis laws; increasing competitive pressures in our industry; and relationships with our customers and suppliers. Except as required by the federal securities laws, we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. The reference to CEA’s website has been provided as a convenience, and the information contained on such website is not incorporated by reference into this press release.

Non-GAAP Financial Measures

To supplement our financial results on U.S. generally accepted accounting principles (“GAAP”) basis, we use non-GAAP measures including net bookings and backlog, as well as other significant non-cash expenses such as stock-based compensation and depreciation expenses. We believe these non-GAAP measures are helpful in understanding our past performance and are intended to aid in evaluating our potential future results. The presentation of these non-GAAP measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for financial information prepared or presented in accordance with GAAP. We believe these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business.

Investor Contact:

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

The MIL Network –
May 9, 2025

MIL-OSI: PubMatic Announces First Quarter 2025 Financial Results; Board of Directors Authorizes $100M Expansion of Share Repurchase Program

Source: GlobeNewswire (MIL-OSI)

Delivered revenue and adjusted EBITDA ahead of guidance;

Revenue from omnichannel video, including CTV, grew 20% and was 40% of total revenue;

CTV revenue grew over 50% year-over-year; and

Supply Path Optimization represented a record 55%+ of total activity

NO-HEADQUARTERS/REDWOOD CITY, Calif., May 08, 2025 (GLOBE NEWSWIRE) — PubMatic, Inc. (Nasdaq: PUBM), an independent technology company delivering digital advertising’s supply chain of the future, today reported financial results for the first quarter ending March 31, 2025.

“We are pleased with our Q1 performance, exceeding guidance on both the top and bottom line driven by the secular growth areas in our business. Ongoing investments in product innovation and go to market teams drove 21% year over year growth in our underlying business, with momentum carrying into April,” said Rajeev Goel, co-founder and CEO at PubMatic. “We firmly believe the current environment serves as a catalyst to accelerate the shift to programmatic and AI-driven solutions. Sell-side activation is emerging as the preferred model across the open internet as advertiser demand for more transparent, performant paths to inventory and data continues to increase. PubMatic sits at the forefront of this transformation while creating value for the entire supply chain.”

First Quarter 2025 Financial Highlights

Revenue in the first quarter of 2025 was $63.8 million, compared to $66.7 million in the same period of 2024;
Net dollar-based retention¹ was 102% for the trailing twelve-months ended March 31, 2025, compared to 106% in the comparable trailing twelve-month period a year ago;
GAAP net loss was $(9.5) million with a margin of (15)%, or $(0.20) per diluted share in the first quarter, compared to GAAP net loss of $(2.5) million with a margin of (4)%, or $(0.05) per diluted share in the same period of 2024;
Adjusted EBITDA was $8.5 million, or 13% margin, compared to $15.1 million, or a 23% margin, in the same period of 2024;
Non-GAAP net loss was $(1.8) million, or $(0.04) per diluted share in the first quarter, compared to Non-GAAP net income of $4.8 million, or $0.09 per diluted share in the same period of 2024;
Net cash provided by operating activities was $15.6 million, compared to $24.3 million in the same period of 2024;
Total cash, cash equivalents, and marketable securities of $144.1 million as of March 31, 2025 with no debt;
Through March 31, 2025, used $138.2 million to repurchase 8.7 million shares of Class A common stock, representing 17% of fully diluted shares as of the program’s inception. PubMatic’s Board of Directors has authorized a $100.0 million expansion of the share repurchase program through 2026.

The section titled “Non-GAAP Financial Measures” below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.

Business Highlights

Omnichannel platform drives revenue in key secular growth areas

Revenue from CTV grew over 50% year-over-year. PubMatic partners with 80% of the top 30 streaming publishers.
Revenue from omnichannel video, which includes CTV, grew 20% year-over-year and represented 40% of total revenue.

PubMatic’s Sell-Side Platform continues to scale; deliver performance

Premium CTV inventory continues to scale, with new and expanded partnerships across the globe including Spectrum Reach, the advertising division of Charter Communications, TCL for live sports streaming content and the BBC’s free ad supported streaming channels.
Supply Path Optimization represented a record 55%+ of total activity on our platform in Q1 2025, up from 50% a year ago, driven by Activate, CTV Marketplace, and robust sell-side targeting capabilities. PubMatic received the The Supply Path Optimization (SPO) Award as part of AdExchanger’s 2025 Programmatic Impact Awards, highlighting the performance impact of Activate.
Activity from mid-market DSPs that specialize in performance marketing almost tripled on a year-over-year basis. These buyers are rapidly scaling ad spend on PubMatic as they prioritize access to premium supply, addressable audiences, and full-funnel sell-side solutions.
Kroger Precision Marketing (KPM) consolidated activity on PubMatic as part of their effort to improve media performance by reducing the number of supply partners by 70%. As a result of the partnership, KPM saw a 20% increase in click through rates in campaigns transacted via PubMatic.
Publishers using PubMatic’s audience curation tools see up to a 10% increase in advertising revenue, due to an increased diversity of ad buyers and higher CPMs.

Launched upgraded Gen AI buyer platform

This end-to-end platform combines proprietary supply-side intelligence with AI-powered buying tools. It delivers efficiency gains and superior outcomes for advertisers, agencies and curators, while streamlining every stage of the media buying process—from audience and inventory discovery and forecasting to curation, activation, and performance optimization.
Offers ad buyers direct access to nearly the entire open internet – approximately 1,950 premium publishers, privacy-safe audience data from 190 data partners, and over 829 billion daily ad impressions.

Owned and operated infrastructure drives operational efficiencies

Infrastructure optimization initiatives combined with limited capex drove nearly 75 trillion impressions processed in Q1 2025, an increase of 29% over Q1 2024.
Cost of revenue per million impressions processed decreased 20% on a trailing twelve month period, as compared to the prior period.

“We delivered a strong first quarter and our 36th consecutive quarter of adjusted EBITDA profitability. Looking to the second half of the year, based on the strong momentum we are seeing in our underlying business, combined with our go-to-market and innovation investments, we expect our underlying revenues to continue growing 15%+,” said Steve Pantelick, CFO at PubMatic. “Additionally, we have implemented a prudent operational plan that will allow us to continue investing behind the fastest growing programmatic opportunities, while also protecting our profitability and balance sheet. This, coupled with our durable business model, gives us confidence that we can successfully navigate the current environment and be well positioned for future market share gains.”

Financial Outlook

Our outlook assumes that general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions.

Accordingly, we estimate the following for the second quarter of 2025:

Revenue to be between $66 million to $70 million, inclusive of the impact from one of our top DSP buyers that revised its auction approach in mid 2024.
Adjusted EBITDA to be in the range of $9 million to $12 million, representing approximately a 17% margin at the midpoint. Adjusted EBITDA expectation assumes a negative foreign currency exchange impact predominantly from Euro and Pound Sterling expenses.

Although we provide guidance for adjusted EBITDA, we are not able to provide guidance for net income, the most directly comparable GAAP measure. Certain elements of the composition of GAAP net income, including stock-based compensation expenses, are not predictable, making it impractical for us to provide guidance on net income or to reconcile our adjusted EBITDA guidance to net income without unreasonable efforts. For the same reason, we are unable to address the probable significance of the unavailable information.

Conference Call and Webcast details

PubMatic will host a conference call to discuss its financial results on Tuesday, May 8, 2025 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). A live webcast of the call can be accessed from PubMatic’s Investor Relations website at https://investors.pubmatic.com. An archived version of the webcast will be available from the same website after the call.

Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), including, in particular operating income (loss), net cash provided by operating activities, and net income (loss), we believe that adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share and free cash flow, each a non-GAAP measure, are useful in evaluating our operating performance. We define adjusted EBITDA as net income (loss) adjusted for stock-based compensation expense, depreciation and amortization, interest income, and benefit from income taxes. Adjusted EBITDA margin represents adjusted EBITDA calculated as a percentage of revenue. We define non-GAAP net income (loss) as net income (loss) adjusted for stock-based compensation expense and adjustments for income taxes. We define non-GAAP free cash flow as net cash provided by operating activities reduced by purchases of property and equipment and capitalized software development costs.

In addition to operating income (loss) and net income (loss), we use adjusted EBITDA, non-GAAP net income (loss), and free cash flow as measures of operational efficiency. We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of our business and in understanding and evaluating our operating results for the following reasons:

Adjusted EBITDA and non-GAAP net income (loss) are widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization, interest expense, and benefit from income taxes that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired; and,
Our management uses adjusted EBITDA, non-GAAP net income (loss), and free cash flow in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance or, in the case of free cash flow, as a measure of liquidity, and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows:

Adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) the potentially dilutive impact of stock-based compensation; or (c) tax payments that may represent a reduction in cash available to us;
Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; and
Non-GAAP net income (loss) does not include: (a) the potentially dilutive impact of stock-based compensation; and (b) income tax effects for stock-based compensation

Because of these and other limitations, you should consider adjusted EBITDA, non-GAAP net income, and free cash flow along with other GAAP-based financial measures, including net income (loss) and cash flow from operating activities, and our GAAP financial results.

Forward Looking Statements

This press release contains “forward-looking statements” regarding our future business expectations, including our guidance relating to our revenue and adjusted EBITDA for the second quarter of 2025 and capex for the full year 2025, our expectations regarding our total addressable market, future market growth, and our ability to gain market share. These forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions and may differ materially from actual results due to a variety of factors including: our dependency on the overall demand for advertising and the channels we rely on; our existing customers not expanding their usage of our platform, or our failure to attract new publishers and buyers; our ability to maintain and expand access to spend from buyers and valuable ad impressions from publishers; the rejection of the use of digital advertising by consumers through opt-in, opt-out or ad-blocking technologies or other means; our failure to innovate and develop new solutions that are adopted by publishers; the war between Ukraine and Russia and the ongoing conflict between Israel and Palestine, and the related measures taken in response by the global community; the impacts of inflation, tariffs and recessionary fears as well as fiscal tightening, changes in the interest rate environment and continuing volatility in global capital markets; global macroeconomic uncertainty; limitations imposed on our collection, use or disclosure of data about advertisements; the lack of similar or better alternatives to the use of third-party cookies, mobile device IDs or other tracking technologies if such uses are restricted; any failure to scale our platform infrastructure to support anticipated growth and transaction volume; liabilities or fines due to publishers, buyers, and data providers not obtaining consents from consumers for us to process their personal data; any failure to comply with laws and regulations related to data privacy, data protection, information security, and consumer protection; and our ability to manage our growth. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. For more information about risks and uncertainties associated with our business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our SEC filings, including but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which are available on our investor relations website at https://investors.pubmatic.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. All information in this press release is as of May 8, 2025. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About PubMatic

PubMatic is an independent technology company maximizing customer value by delivering digital advertising’s supply chain of the future. PubMatic’s sell-side platform empowers the world’s leading digital content creators across the open internet to control access to their inventory and increase monetization by enabling marketers to drive return on investment and reach addressable audiences across ad formats and devices. Since 2006, PubMatic’s infrastructure-driven approach has allowed for the efficient processing and utilization of data in real time. By delivering scalable and flexible programmatic innovation, PubMatic improves outcomes for its customers while championing a vibrant and transparent digital advertising supply chain.


CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited)

	March 31, 2025			December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	101,811		$	100,452
Marketable securities		42,315			40,135
Accounts receivable, net		349,123			424,814
Prepaid expenses and other current assets		12,018			10,145
Total current assets		505,267			575,546
Property, equipment and software, net		54,386			58,522
Operating lease right-of-use assets		42,575			44,402
Acquisition-related intangible assets, net		3,889			4,284
Goodwill		29,577			29,577
Deferred tax assets		29,619			24,864
Other assets, non-current		3,289			2,324
TOTAL ASSETS	$	668,602		$	739,519
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	323,611		$	386,602
Accrued liabilities		20,309			26,365
Operating lease liabilities, current		6,241			5,843
Total current liabilities		350,161			418,810
Operating lease liabilities, non-current		38,649			39,538
Other liabilities, non-current		4,191			3,908
TOTAL LIABILITIES		393,001			462,256
Stockholders’ equity
Common stock		6			6
Treasury stock		(150,409	)		(146,796	)
Additional paid-in capital		286,471			275,304
Accumulated other comprehensive loss		(366	)		(636	)
Retained earnings		139,899			149,385
TOTAL STOCKHOLDERS’ EQUITY		275,601			277,263
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	668,602		$	739,519


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited)

	Three Months Ended March 31,
		2025			2024
Revenue	$	63,825		$	66,701
Cost of revenue⁽¹⁾		25,588			25,424
Gross profit		38,237			41,277
Operating expenses:⁽¹⁾
Technology and development		8,772			7,960
Sales and marketing		26,799			24,815
General and administrative		14,569			14,027
Total operating expenses		50,140			46,802
Operating loss		(11,903	)		(5,525	)
Interest income		1,593			2,564
Other income (expense), net		(1,014	)		258
Loss before income taxes		(11,324	)		(2,703	)
Benefit from income taxes		(1,838	)		(249	)
Net loss	$	(9,486	)	$	(2,454	)

Basic and diluted net loss per share of Class A and Class B stock	$	(0.20	)	$	(0.05	)
Weighted-average shares used to compute net loss per share attributable to common stockholders:
Basic		48,346			50,039
Diluted		48,346			50,039

⁽¹⁾Stock-based compensation expense includes the following:


STOCK-BASED COMPENSATION EXPENSE (In thousands) (unaudited)

	Three Months Ended March 31,
		2025		2024
Cost of revenue	$	474	$	437
Technology and development		1,585		1,441
Sales and marketing		3,463		3,238
General and administrative		4,176		3,995
Total stock-based compensation expense	$	9,698	$	9,111


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) (unaudited)

	Three Months Ended March 31,
		2025			2024
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss	$	(9,486	)	$	(2,454	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		11,676			11,212
Stock-based compensation		9,698			9,111
Deferred income taxes		(4,754	)		(4,667	)
Accretion of discount on marketable securities		(454	)		(1,234	)
Non-cash operating lease expense		1,928			1,690
Other		(223	)		(1	)
Changes in operating assets and liabilities:
Accounts receivable		75,691			72,184
Prepaid expenses and other assets		5,681			(196	)
Accounts payable		(62,578	)		(58,444	)
Accrued liabilities		(11,287	)		(1,784	)
Operating lease liabilities		(590	)		(1,380	)
Other liabilities, non-current		319			257
Net cash provided by operating activities		15,621			24,294
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(1,441	)		(801	)
Capitalized software development costs		(6,880	)		(7,231	)
Purchases of marketable securities		(15,307	)		(34,336	)
Proceeds from maturities of marketable securities		13,559			38,500
Net cash used in investing activities		(10,069	)		(3,868	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of business combination indemnification claims holdback		—			(2,148	)
Proceeds from exercise of stock options		563			939
Principal payments on finance lease obligations		(35	)		(32	)
Payments to acquire treasury stock		(5,000	)		(17,500	)
Net cash used in financing activities		(4,472	)		(18,741	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		1,080			1,685
Effect of foreign currency on cash		279			—
CASH AND CASH EQUIVALENTS – Beginning of period		100,452			78,509
CASH AND CASH EQUIVALENTS – End of period	$	101,811		$	80,194


RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share amounts) (unaudited)

	Three Months Ended March 31,
		2025			2024
Reconciliation of net loss:
Net loss	$	(9,486	)	$	(2,454	)
Add back (deduct):
Stock-based compensation		9,698			9,111
Depreciation and amortization		11,676			11,212
Interest income		(1,593	)		(2,564	)
Benefit from income taxes		(1,838	)		(249	)
Adjusted EBITDA	$	8,457		$	15,056
Revenue	$	63,825		$	66,701
Adjusted EBITDA margin		13	%		23	%


	Three Months Ended March 31,
		2025			2024
Reconciliation of net loss per share:
Net loss	$	(9,486	)	$	(2,454	)
Add back (deduct):
Stock-based compensation		9,698			9,111
Adjustment for income taxes		(2,055	)		(1,886	)
Non-GAAP net income (loss)	$	(1,843	)	$	4,771
GAAP diluted EPS	$	(0.20	)	$	(0.05	)
Non-GAAP diluted EPS	$	(0.04	)	$	0.09
GAAP weighted average shares outstanding—diluted		48,346			50,039
Non-GAAP weighted average shares outstanding—diluted		48,346			55,006

Reported GAAP diluted loss and Non-GAAP diluted loss per share for the three months ended March 31, 2025, and reported GAAP diluted loss per share for the three months ended March 31, 2024 were calculated using basic share count. Non-GAAP diluted earnings per share for the three months ended March 31, 2024 was calculated using diluted share count which includes approximately 5 million shares of dilutive securities related to employee stock awards.


SUPPLEMENTAL CASH FLOW INFORMATION COMPUTATION OF FREE CASH FLOW, A NON-GAAP MEASURE (In thousands) (unaudited)

	Three Months Ended March 31,
		2025			2024
Reconciliation of cash provided by operating activities:
Net cash provided by operating activities	$	15,621		$	24,294
Less: Purchases of property and equipment		(1,441	)		(801	)
Less: Capitalized software development costs		(6,880	)		(7,231	)
Free cash flow	$	7,300		$	16,262

^¹ Net dollar-based retention is calculated by starting with the revenue from publishers in the trailing twelve months ended March 31, 2024 (Prior Period Revenue). We then calculate the revenue from these same publishers in the trailing twelve months ended March 31, 2025 (Current Period Revenue). Current Period Revenue includes any upsells and is net of contraction or attrition, but excludes revenue from new publishers. Our net dollar-based retention rate equals the Current Period Revenue divided by Prior Period Revenue. Net dollar-based retention rate is an important indicator of publisher satisfaction and usage of our platform, as well as potential revenue for future periods

The MIL Network –

May 9, 2025

MIL-Evening Report: To split Moscow from Beijing, Trump is reviving Nixon’s ‘madman diplomacy’. It could backfire badly

Source: The Conversation (Au and NZ) – By Ian Langford, Executive Director, Security & Defence PLuS and Professor, UNSW Sydney

When United States President William McKinley advocated high‑tariff protectionism in 1896, he argued squeezing foreign competitors behind a 50% wall of duties would make America richer and safer.

That logic framed US trade debates for a generation, but it was always an economic device – not a geopolitical lever.

In 2025, Donald Trump, now the 47th US president, slapped tariffs on most imported goods to the United States, specifically targeting Chinese imports.

Yet, despite the fact he idolises McKinley, Trump’s emerging grand strategy looks less like his customs schedule and more like Richard Nixon’s “madman” diplomacy of the early 1970s.

Trump is signalling that unpredictability, not price schedules, will coerce adversaries and reorder alliances.

An image of irrational resolve

McKinley’s 1890s tariffs nearly doubled average duties, shielding domestic manufacturers but doing little to shift the global balance of power.

The lesson from these tariffs was straightforward: protectionism may enrich some sectors, but it rarely bends rivals’ strategic choices.

Trump’s first term flirted with McKinley-inspired trade wars, industrial policy and “America First” rhetoric. His second term “strategic reset” moves onto darker, Nixonian ground.

Nixon and his secretary of state, Henry Kissinger, cultivated an image of irrational resolve. They hinted they might do “anything”, even use nuclear weapons, to force concessions in Vietnam and alarm the Soviet politburo.

Nixon’s White House chief of staff, H.R. Haldeman, recalled the president demanding Moscow and Hanoi see him as a man “with his hand on the nuclear button”.

The gambit dovetailed with a bold diplomatic inversion. By opening to Mao Zedong’s China, Nixon sought to isolate the Soviet Union.

Trump’s ‘reverse Nixon’ efforts

Half a century later, Trump appears to be running the tape backward.

Rather than prying China from Russia, he is testing whether Moscow can be prised from Beijing.

In early April, he imposed a blanket 54% tariff on Chinese goods – yet exempted Russia, Cuba and North Korea from the harshest duties.

The White House has simultaneously floated selective sanctions relief for Moscow if Vladimir Putin shows “flexibility” on Ukraine.

Trump’s boosters call the manoeuvre a “reverse Nixon”: befriend the weaker adversary to hem in the stronger.

Al-Jazeera recently reported senior US officials and analysts believe deepening ties with Russia could splinter the Sino‑Russian axis that has unnerved US strategists for years.

But Foreign Affairs warns that even if Washington dangled lavish incentives, Putin would “play Washington and Beijing off each other” rather than choose sides.

Australia’s Strategic Policy Institute is blunter: the idea of splitting the pair is “a delusion”.

Nor is the madman pose guaranteed to intimidate. Scholars note Nixon’s bluff worked only when coupled with painstaking back‑channel diplomacy; the façade of irrationality still required a coherent end‑game.

Trump’s record of erratic statements on NATO, sudden tariff escalations and social media outbursts risks convincing adversaries that chaos is the message, not the method.

Success would require discipline

Yet, the strategic prize is real.

A durable Sino‑Russian alignment forces Washington to split resources across two theatres, complicates sanctions enforcement, and gives Beijing access to Russian hydrocarbons and military technologies.

Even a partial wedge – Moscow adopting neutrality in a potential Indo‑Pacific crisis, for instance – would lighten America’s load and disadvantage China.

Can Trump craft a credible offer? Tariff exemptions and the hint of sanctions relief are carrots; resumed arms‑control talks and guarantees of Russian equities in a post‑war Ukraine settlement could sweeten the pot.

The sticks are clear: escalating tariffs and technology bans on China, plus renewed US gas exports aimed at undercutting Sino‑Russian energy deals.

The fact CIA Director John Ratcliffe called China the “top national security threat” in his confirmation hearings earlier this year – relegating Russia to a lesser threat – underscores the hierarchy.

Still, success would require disciplined messaging and allied buy‑in, traits not often associated with madman theatrics.

If European and Indo‑Pacific partners suspect Washington will mortgage Ukraine’s security or trade their markets for a fleeting Moscow détente, unity will fray.

For Australia, the stakes are immense

For Canberra, the calculus is stark.

Australia’s primary challenge is a more assertive China, not a distant Russia.

If Trump could drive even a hairline crack between Moscow and Beijing, the Indo‑Pacific balance would tilt in favour of the US and its allies.

A Russia preoccupied with Europe or simply unwilling to share sensitive missile and space technologies would deprive China of critical enablers.

Conversely, a bungled “reverse Nixon” strategy could embolden both autocracies.

Should Putin benefit from US tariff exemptions and sanctions relief while deepening defence ties with Beijing — as recent drone and satellite deals suggest – Australia would face a sharper, more integrated adversarial bloc.

The lesson, for Australia, is to hedge: continue deepening AUKUS technology sharing, accelerate long‑range strike acquisition, and tighten diplomatic coordination with Japan, India and ASEAN states.

For Australia, perched on Asia’s faultline, the stakes are immense. A successful wedge would ease pressure on the “first‑island chain” – the chain of strategic islands that stretches from Japan through Taiwan, the Philippines and Indonesia – and give Canberra precious strategic depth.

A failed gambit risks confronting Australian forces with a tandem of nuclear‑armed revisionists (Russia and China) emboldened by US miscalculation.

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

– ref. To split Moscow from Beijing, Trump is reviving Nixon’s ‘madman diplomacy’. It could backfire badly – https://theconversation.com/to-split-moscow-from-beijing-trump-is-reviving-nixons-madman-diplomacy-it-could-backfire-badly-255878

MIL OSI Analysis – EveningReport.nz –

May 9, 2025
MIL-OSI Security: Federal Detainee Admits to Possessing Contraband Inside Wyatt Detention Center

Source: Office of United States Attorneys

PROVIDENCE – A federal detainee found to be in possession of contraband while detained at the Donald W. Wyatt Detention Center today pleaded guilty to a charge of conspiracy and to a charge of providing and possessing contraband in prison, announced Acting United States Attorney Sara Miron Bloom.

Anthony Whyte, 50, admitted that on May 21, 2023, he took possession of an envelope containing documents passed to him by a visitor. Upon further inspection, Wyatt officials determined that eight of the pages had the appearance of having been contaminated with some sort of substance. One of the eight pages later analyzed by the FBI was determined to have been treated with synthetic cannabinoids.

Court documents reflect that Whyte arranged for the delivery of the contaminated pages during recorded telephone conversations he made from inside the Wyatt Detention Center. The papers and the manilla envelope they were contained in were seized moments after Whyte took possession of them. At the time, Whyte was detained in an unrelated criminal matter brought in the District of Connecticut.

Whyte is scheduled to be sentenced on August 26, 2025. The sentence imposed will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.

The case is being prosecuted by Assistant United States Attorney Paul F. Daly, Jr.

The matter was investigated by the FBI, with the assistance of the Wyatt Detention Center Professional Standards Unit.

###

MIL Security OSI –

May 9, 2025
MIL-OSI Security: Man Sentenced to 20 Years in Federal Prison for Sexual Abuse on the Pine Ridge Indian Reservation

Source: Office of United States Attorneys

RAPID CITY – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Kyle, South Dakota, man convicted of Sexual Abuse. The sentencing took place on May 1, 2025.

Louis James Swallow, 22, was sentenced to 20 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Swallow will be required to register as a sex offender under the Sex Offender Registration and Notification Act.

Swallow was indicted for Aggravated Sexual Abuse of a Minor and Abusive Sexual Contact by a federal grand jury in February 2024. He pleaded guilty on February 10, 2025.

The case was charged after an acute disclosure of forcible sexual assault by the 13-year-old victim. She disclosed Swallow followed her while she was walking home, grabbed her, forced her to the ground, and then raped her. In sentencing Swallow to 20 years in prison, Judge Schreier condemned Swallow’s “frightening conduct,” noting he had also been charged in Pennington County for raping and strangling a girlfriend in 2020. Judge Schreier further recognized the trauma Swallow’s violence inflicted on the 13-year-old victim.

This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.

This case was investigated by the FBI. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.

Swallow was immediately remanded to the custody of the U.S. Marshals Service.

MIL Security OSI –

May 9, 2025
MIL-OSI USA: Klobuchar Presses Justice Department on Media Subpoena Policy and Threats to the First Amendment

US Senate News:

Source: United States Senator Amy Klobuchar (D-Minn)
WASHINGTON – U.S. Senator Amy Klobuchar (D-MN) led her Judiciary Committee colleagues in pressing Attorney General Pam Bondi regarding her decision to change Justice Department policies to make it easier for the Justice Department to subpoena journalists to obtain information about their confidential sources and potentially harass journalists who write stories critical of the Administration. .
“We write to express our deep concern with the Department of Justice’s April 25, 2025 memorandum changing the guidance that set limitations on the Department’s ability to subpoena materials from journalists and news organizations,” wrote the Senators. “The free press is a bedrock of our democracy and reporters must be able to do their jobs without fear of being investigated or prosecuted.”
“When asked at your confirmation hearing to commit to ‘respect the importance of a free press,’ you said ‘absolutely,’” the Senators continued. “Yet your decision to rescind important limits on the Justice Department’s ability to compel information from the press threatens the ability of journalists to fully perform their critical jobs, as guaranteed by the First Amendment.”
Along with Klobuchar, the letter was signed by every Democrat on the Senate Judiciary Committee – Senator Dick Durbin (D-IL) Ranking Member of the Senate Judiciary Committee and Senators Sheldon Whitehouse (D-RI), Chris Coons (D-DE), Richard Blumenthal (D-CT), Mazie Hirono (D-HI), Cory Booker (D-NJ), Alex Padilla (D-CA), Peter Welch (D-VT), and Adam Schiff (D-CA).
The full letter is available here and below.
Dear Attorney General Bondi:
We write to express our deep concern with the Department of Justice’s April 25, 2025 memorandum changing the guidance that set limitations on the Department’s ability to subpoena materials from journalists and news organizations.
The free press is a bedrock of our democracy and reporters must be able to do their jobs without fear of being investigated or prosecuted. When asked at your confirmation hearing to commit to “respect the importance of a free press,” you said “absolutely.” Yet your decision to rescind important limits on the Justice Department’s ability to compel information from the press threatens the ability of journalists to fully perform their critical jobs, as guaranteed by the First Amendment.
Under the previous guidance, the Justice Department was authorized to subpoena journalists engaged in news gathering only “[w]hen necessary to prevent an imminent or concrete risk of death or serious bodily harm.” Under the 2025 guidance, Justice Department officials can take the extraordinary step of subpoenaing journalists merely to investigate “unauthorized disclosures that undermine President Trump’s policies,” extending far beyond disclosures of classified information. In other words, under this new guidance, there is little protection for journalists who publish any story critical of the Administration from being threatened with a subpoena and litigation to enforce the subpoena. The threat to journalists is especially concerning given Federal Bureau of Investigation (FBI) Director Kash Patel’s claims prior to his confirmation that the news media is “the most powerful enemy the United States has ever seen” and that he would “come after the people in the media . . . criminally or civilly.”
Nor does it appear that the Justice Department would subpoena reporters’ records only as a last resort. Under the guidelines, the Justice Department may subpoena journalists after the Attorney General has made only a few subjective determinations, such as whether the information sought is “essential to a successful prosecution,” whether “reasonable attempts” to obtain the information from alternative sources were made, and whether engaging in negotiations would threaten “the integrity of the investigation.” These factors make it far too easy for the Attorney General to compel journalists to reveal sources.
This change will also deter whistleblowers from coming forward with information to the news media, depriving the public of valuable information about its government. Whistleblowers that violate the law—for example by disclosing classified information—should be subject to the legal consequences of that action, but the government should not be allowed to intimidate or harass journalists who lawfully report the news.
As the Office of Legal Policy prepares regulations to implement your memorandum, we respectfully request that you provide responses to the following questions:
What protections are in place to ensure that journalists are not targeted because they published a news article critical of the Administration?
Will you commit to ensuring that issuing a subpoena to a journalist or news organization will be used only as a last resort when there is a compelling and overriding interest in the information, such as protecting national security?
Will the regulations require the Department to comply with state shield laws?
Is the Department consulting with outside organizations, including organizations representing journalists, as part of the preparation of regulations? If so, what organizations?
What measures will the regulations put in place to ensure that the White House is not allowed to order or influence the issuance of a subpoena to a journalist or news organization?
What process for review, if any, will be put in place to ensure the new regulations are being followed and are not being abused for political or any other inappropriate purpose?
Has the Justice Department issued any subpoenas to journalists or news organizations under this new guidance? If so, to whom and seeking what information?

MIL OSI USA News –

May 9, 2025
MIL-OSI USA: Senator Coons grills FBI Director Kash Patel over firing of FBI officers for investigations of January 6 rioters

US Senate News:

Source: United States Senator for Delaware Christopher Coons

WASHINGTON – U.S. Senator Chris Coons (D-Del.) questioned FBI Director Kash Patel at a Senate Appropriations Committee hearing today, where he confronted Patel about the circumstances behind seemingly politically-motivated firings and whether the FBI had taken disciplinary actions against FBI agents who worked on cases against January 6^th insurrectionists.

During his Senate Judiciary Committee confirmation hearing earlier this year, Patel pledged that his tenure as director would be forward-looking and that there would be no political retribution for FBI agents who worked on the investigation into the January 6, 2021 attack on the U.S. Capitol. Just weeks after Patel’s confirmation, however, former head of the FBI’s New York office James Dennehy was essentially forced out of the agency after he refused a request from the Trump administration to turn in the names of all agents who worked on Capitol riot cases. Several other officials at the Department of Justice have also been dismissed because their connections to January 6^th investigations.

Senator Coons also asked Patel about a response to a letter from Senate Judiciary Democrats earlier this year to then-Acting FBI Director Brian Driscoll over alleged purges within the Justice Department and FBI that targeted career prosecutors and agents involved in January 6^thinvestigations.

Patel was testifying before the Senate today on the White House’s 2026 budget proposal that calls for a funding cut of more than $500 million for the FBI.

A video of Senator Coons’ full questioning and partial transcript of his comments are available below.

WATCH HERE.

Senator Coons: You’ve also testified just yesterday in front of House Appropriations that you are orienting the FBI looking forward—there won’t be any actions against FBI agents based on what they did in terms of carrying out assignments to investigate January 6 incidents. During your confirmation, you said there will be no retribution taken by the FBI should you be confirmed as director.

James Dennehy, who was head of the New York Field Office, has been forced out, received no reason for his removal, but had resisted efforts to turn over a list of agents involved in January 6 investigations. That’s how I’ve understood the characterization of his separation, and that sounds to me like politicization and retribution for involvement in January 6. I just want to hear your statement about where you see any disciplinary actions related to January 6 investigations.

Patel: Thank you, Senator. With the ongoing litigation related to the specific list, there’s only so much I can talk about, but I can tell you this with affirmation: no one on any list will be punished at the FBI. As someone who was given case assignments I didn’t want many times over, you don’t get punished for your case assignments. You only get punished if you didn’t do the job and fail to follow the ethical guidelines and break the law, and that’s the standard.

Senator Coons: The Judiciary Committee recently had two career prosecutors in front of them who were dismissed explicitly for their involvement in prosecuting January 6 cases—I understand that’s not the FBI. I hope to work with you on ensuring that we orient the FBI forward. In February, I did join all my judiciary colleagues to send then-Acting Director Driscoll letters about proposed purges of agents for simply carrying out their assignments. Do you know if you’ve answered that letter?

Patel: I’ll have to check, Senator. Sorry.

Senator Coons: I’ll tell you that I haven’t received a response, and I expect a response. More importantly, I expect a budget and an appropriations request so we can do our job as the relevant appropriations subcommittee.

MIL OSI USA News –

May 9, 2025
MIL-OSI Security: Emily Pike Investigation Reward

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

In support of the Gila County Sheriff’s Office investigation into the death of Emily Pike, the FBI is now offering a reward of up to $75,000 for any person providing independently verifiable information identifying the individual(s) responsible for her disappearance and murder. Please see the attached “Seeking Information” poster from the FBI. The poster can also be found here: https://www.fbi.gov/wanted/seeking-info/emily-pike.

This reward is in addition to the reward already being offered by the San Carlos Apache Tribe.

Again, the FBI Phoenix Field Office is supporting the Gila County Sheriff’s Office investigation, and anyone with information is urged to contact the Gila County Sheriff’s Office or report tips to the FBI.

As this is an ongoing investigation, no other information is available from the FBI at this time.

MIL Security OSI –

May 9, 2025
MIL-OSI Security: Sex Trafficker Who Supplied His Prostitutes with Heroin Sentenced to 90 Months in Federal Prison

Source: Office of United States Attorneys

WASHINGTON D.C. – Johnny Lee Gibson, 58, whose last known residence was in Florence, South Carolina, was sentenced today in U.S. District Court to 90 months in federal prison for sex-trafficking women who he kept under his control by supplying them with narcotics.

The sentencing was announced by U.S. Attorney Edward R. Martin Jr., Special Agent in Charge Sean Ryan of the FBI Washington Field Office Criminal and Cyber Division, and Chief Pamela Smith of the Metropolitan Police Department.

Gibson, aka “Preach,” pleaded guilty on Dec. 11, 2024, to conspiracy to commit sex trafficking by force, fraud, and coercion. In addition to the 90-month prison term, U.S. District Court Judge Amy Berman Jackson ordered Gibson to serve 10 years of supervised release and to register as a sex offender.

According to court documents, Gibson recruited drug-addicted women to work as prostitutes for his commercial sex enterprise that operated in Washington D.C., Maryland, Virginia, New Jersey, Pennsylvania, North Carolina, South Carolina, and Florida. The enterprise ran from 1994 until Gibson’s arrest at a motel in Brooklawn, New Jersey, on July 25, 2024.

Gibson placed online advertisements offering the women’s sexual services. Some ads ran on websites that targeted the DMV. In 2019, he ran ads in the District touting one woman that stated “100% Real and always discreet, always on time, fresh, and looking my very best. I always aim to please…”

When he was arrested in July 2024, Gibson gave a recorded statement in which he admitted to sex trafficking five women, acting as a pimp, procuring drugs for them, and controling the women by providing access to drugs.

This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.

It is being prosecuted by Assistant U.S. Attorneys Karen Ditzler Shinskie and Rachel Forman.

MIL Security OSI –

May 9, 2025
MIL-OSI Security: Rhode Island Man Admits to Cyberstalking, Distribution of Child Sexual Abuse Material

Source: Office of United States Attorneys

PROVIDENCE – A Rhode Island man today pleaded guilty as charged by federal indictment to one count of cyberstalking and four counts of distribution of child pornography, announced Acting United States Attorney Sara Miron Bloom.

Melvin Vidal Herrera Perez, 21, admitted to a federal judge that he befriended a minor child, encouraged her to take sexually explicit images of herself, and later used the images to threaten and harass her after she turned eighteen.

Perez admitted that he used a variety of tactics to cause serious emotional distress to the victim, including opening websites to display her images, texting and emailing her images, and messaging a wide number of individuals in the victim’s personal and social circles.

Perez, who has been detained since his arrest in December 2024, is scheduled to be sentenced on August 6, 2025. The sentence imposed will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.

The case is being prosecuted by Assistant United States Julie M. White.

The matter was investigated by the FBI.

###

MIL Security OSI –

May 9, 2025
MIL-OSI Security: Four sentenced in $110 million-dollar kickback conspiracy

Source: Office of United States Attorneys

McALLEN, Texas – Multiple people have been sentenced for their roles in a conspiracy to pay kickbacks in exchange for prescription referrals, announced U.S. Attorney Nicholas J. Ganjei.

John Ageudo Rodriguez, 55, Mohammad Imtiaz Chowdhury, 44, and Hector de la Cruz Jr., 54, all of Edinburg, and Alex Flores Jr., 55, McAllen, had all previously pleaded guilty.

U.S. District Judge Randy Crane has now ordered Rodriguez to serve 60 months in federal prison. De La Cruz and Flores were sentenced to 46 months while Chowdhury received a 30-month-term of imprisonment. All must also serve three years of supervised release following completion of their sentences.

Rodriguez, a former licensed pharmacist, owned and operated Pharr Family Pharmacy. He conspired with several “marketers” – including Chowdhury, De La Cruz and Flores – to pay kickbacks to medical providers who referred prescriptions to his pharmacy. Rodriguez then billed various benefit programs, including the Department of Labor, TRICARE and Medicare, for millions of dollars in claims. From 2014 to 2016, his pharmacy submitted more than $110 million in claims to federal health care programs for compound drugs.

“Illegal kickbacks are the engine that drives health care fraud,” said Ganjei. “Our office will aggressively pursue fraud, waste, and abuse that cost taxpayers millions, if not billions, every year.”

All were permitted to remain on bond and voluntarily surrender to a Federal Bureau of Prisons facility to be determined in the near future.

The U.S. Postal Service-Office of Inspector General (OIG), Department of Labor-OIG, FBI, Department of Defense-Defense Criminal Investigative Service, Department of Veteran Affairs-OIG, Department of Health and Human Services-OIG and Texas Health and Human Services-OIG conducted the investigation. Assistant U.S. Attorney Andrew Swartz prosecuted the case.

MIL Security OSI –

May 9, 2025
MIL-OSI USA: Sending off the Class of 2025

Source: US State of Connecticut

The Class of 2025 is just days away from walking across the commencement stage to receive their Doctor of Dental Medicine degrees.

This week, the students gathered with their fellow classmates and faculty to celebrate their many accomplishments for one last time before UConn Health’s 54^th Commencement on May 12.

The annual senior awards celebration—this year taking place at the New Britain Museum of American Art—includes the presentation of student and faculty awards.

Faculty and students in the Class of 2025 gather for the annual School of Dental Medicine senior awards ceremony.

“On behalf of the entire School of Dental Medicine community, I congratulate each of our soon-to-be new graduates for completing arguably the most challenging and rigorous dental programs anywhere,” said Dr. Steven Lepowsky, dean of the School of Dental Medicine. “In doing so, we are confident that you are well prepared to enter the profession as exceptionally well trained and competent beginning practitioners. You are well poised to face the challenges of the next phase of your professional careers.”

The dean continued, “Your professional journey does not end with graduation. The majority of you will be entering residency programs in a few weeks, while others will be entering practice, but regardless of that next step, I want to encourage you to continue to learn and grow with the same enthusiasm and spirit that you have demonstrated with us over the past four years.”

Students in the Class of 2025 gather for the annual School of Dental Medicine senior awards ceremony.

“It was an honor to attend the student awards reception,” said David Cruzate, the class representative. “The night of camaraderie with our friends, colleagues, and faculty felt like such a culmination and celebration of our time here at UConn. I am forever grateful to be a part of our community!”

After commencement, Cruzate will be heading to Togus Veterans Affairs Medical Center in Augusta, Maine for his Advanced Education in General Dentistry residency.

Cynara McPhail, president of the School of Dental Medicine Alumni Association Board and 1984 graduate of the School of Dental Medicine, made remarks to the students as well.

Earlier in the week, the School of Dental Medicine hosted an induction ceremony for the Phi Chi Chapter of the prestigious Omicron Kappa Upsilon (OKU) National Dental Honor society.

Samira Abdelrehim, Dedrian Barrett, Emma Bergstrom, Sierra Furey, Dani Gosselin, and Michael Truhlar were inducted for their outstanding achievements in scholarship, professionalism, and ethics.

“Induction into OKU is based on scholarship and character, and is a great honor in dental medicine,” said Dr. Donna Paolella, associate dean for admissions and president of the Phi Chi chapter. “The faculty and students inducted this year are very impressive, and this is a well-deserved honor.”

Phi Chi Chapter of the OKU National Dental Honor Society student and faculty inductees.

Dr. Eric Bernstein, associate dean for academic affairs, and Dr. Takanori Sobue, associate professor in the Department of Periodontology, were inducted as faculty.

During the student awards recognition ceremony, Dr. Ellen Eisenberg was announced as this year’s Kaiser Permanente award winner for excellence in teaching and Dr. Hang Le received the South Park Inn Award for outstanding service to the community.

The full list of the student awards is below:

ENDODONTICS

American Association of Endodontists Student Achievement Award
Olivia Dort

GENERAL DENTISTRY

Academy of General Dentistry Future Leader in General Dentistry Award
Mark DiRusso

Academy of Operative Dentistry Award
Cristal Bruce

American Academy of Esthetic Dentistry Student Award of Merit
Emma Bergstrom

The Quintessence Award for Clinical Achievement in Restorative Dentistry
Gosia Fryc

ORAL MEDICINE

American Academy of Oral Medicine Award
Danielle Gosselin

American Academy of Orofacial Pain Award
Lucy Schlink

ORAL AND MAXILLOFACIAL PATHOLOGY

American Academy of Oral and Maxillofacial Pathology Dental Student Award
Samira Abdelrehim

ORAL AND MAXILLOFACIAL RADIOLOGY

Allan B. Reiskin Award
Kipa Shakya

American Academy of Oral and Maxillofacial Radiology Award
Gosia Fryc

ORAL AND MAXILLOFACIAL SURGERY

American Academy of Implant Dentistry Student Award
Dedrian Barrett

American Association of Oral and Maxillofacial Surgeons Dental Student Award
Spencer Infranco

American Association of Oral and Maxillofacial Surgeons Dental Implant Award
Mark DiRusso

American College of Oral and Maxillofacial Surgeons Award (William H. Bell Award)
Isiah Sumler

Academy of Osseointegration Outstanding Dental Student in Implant Dentistry
Tyler Deitelbaum

Connecticut Society of Oral and Maxillofacial Surgeons Award
John Todd

Dr. Richard G. Topazian Prize
Juan Mitchell

Horace Wells Senior Student Award from the American Dental Society of Anesthesiology
Pablo Piedra

International Congress of Oral Implantologists/Dentsply Student Achievement Award
Brian Legato

ORTHODONTICS

American Association of Orthodontists Award
Thomas Nelson

Dr. Surender Nanda Memorial Award
Peter Schwalm

PEDIATRIC DENTISTRY

American Academy of Pediatric Dentistry Certificate of Merit
Samantha DePalma

Special Care Dentistry Association/Academy of Dentistry for Persons with Disabilities Award
Sierra Furey

PERIODONTOLOGY

American Academy of Periodontology Award
Dedrian Barrett

Northeastern Society of Periodontists Award
Pritisha Amatya

The Quintessence Award for Clinical Achievement in Periodontics
Timothy Tsai

PROSTHODONTICS

American College of Prosthodontists Achievement Award
Michael Truhlar

American Prosthodontic Society Award
Sarah Nevolis

Hanau^TM Best of the Best Prosthodontic Award
Gosia Fryc

Kohrman Award
Dedrian Barrett

SENIOR AWARDS COMMITTEE AWARDS

American Association of Public Health Dentistry
Samantha DePalma

Dr. Robert G. Levine Award
Julia Clapis

The Dr. Loeb Prize
Samira Abdelrehim

Friends of the School of Dental Medicine – Fox Award
Dedrian Barrett

International College of Dentists Student Humanitarian Award
Nina Penabad

International College of Dentists Student Leadership Award
Eddyson Altidor

Society for Color and Appearance in Dentistry (SCAD)
Richard Cadena

The Brian D. Stone Student Memorial Award
Jake Wallach

The Pierre Fauchard Academy Award
Jason Deck

The Quintessence Award for Research Achievement
Emma Winchester

University of Connecticut School of Dental Medicine Professional Development Award
John Dellalana

American Association of Women Dentists Eleanor J. Bushee Senior Dental Student Award
Megna Senthilnathan

Olmstead Prize in Geriatrics
Ninad Vora

Academic Achievement Award 2025 Sponsored by the Provost’s Commission on the Status of Women, the UConn Alumni Association, and the Women’s Center
Samira Abdelrehim

ADEA Dr. Jean Craig Sinkford Student Leadership Award
Dedrian Barrett

US Public Health Service Dental Award
Serene Elbach

2025 ASDA Award of Excellence
Sarah Nevolis

Commencement Speaker
Kristina Dubois

The Alumni Relations Award
Victoria D’Agostino
Eddyson Altidor
Mychael Mckeever

Health Careers Bridge Award
Nina Penabad

Phi Chi Chapter of Omicron Kappa Upsilon 2025 Inductees
Samira Abdelrehim
Dedrian Barrett
Emma Bergstrom
Sierra Furey
Danielle Gosselin
Michael Truhlar

The South Park Inn Dental Clinic Award
Vanessa Vlaun
Dr. Hang Le

Kaiser Permanente Teaching Award
Dr. Ellen Eisenberg

MIL OSI USA News –

May 9, 2025

MIL-OSI: ASSOCIATED CAPITAL GROUP, INC. Reports First Quarter Results

Source: GlobeNewswire (MIL-OSI)

Performance for our Merger Arbitrage strategy in the first quarter was 3.8% before expenses and 2.8% after expenses
Assets Under Management (“AUM”): $1.27 billion at March 31, 2025 compared to $1.25 billion at December 31, 2024
Book Value per share ended the quarter at $42.51 per share vs $42.14 per share at December 31, 2024

GREENWICH, Conn., May 08, 2025 (GLOBE NEWSWIRE) — Associated Capital Group, Inc. (“AC” or the “Company”), a diversified financial services company, today reported its financial results for the first quarter ended March 31, 2025.

In March 2025, Doug Jamieson retired as our Chief Executive Officer and President but will continue serving the Company as a Director. We thank him for his years of dedicated service and look forward to his continued contributions as a member of the Board of Directors. Patrick Huvane was named Interim Chief Executive Officer upon Doug Jamieson’s retirement.

“The prospects for Associated Capital Group remain strong and we are well positioned to grow value in the face of an uncertain environment. I am privileged to take on this opportunity to serve AC shareholders.” Mr. Huvane said.

Financial Highlights
($ in 000’s except AUM and per share data)

(Unaudited)	Three months ended
	March 31,			December 31,			March 31,
	2025			2024			2024
AUM – end of period (in millions)	$	1,268		$	1,248		$	1,549
AUM – average (in millions)		1,261			1,291			1,556

Revenues		2,129			5,154			3,011
Operating loss before management fee (Non-GAAP)		(4,185	)		(3,059	)		(2,988	)
Investment and other non-operating income, net		15,834			4,372			22,625
Income before income taxes		10,546			1,179			17,655

Net income		7,669			4,280			13,821
Net income per share-diluted		0.36			0.20			0.64

Class A shares outstanding (000’s)		2,194			2,234			2,469
Class B ” “		18,951			18,951			18,951
Total ” “		21,145			21,185			21,420

Book value per share	$	42.51		$	42.14		$	42.80

First Quarter Financial Data

Assets under management ended the quarter at $1.27 billion versus $1.25 billion at December 31, 2024.
Book value was $42.51 per share at March 31, 2025 versus $42.14 per share at December 31, 2024.

First Quarter Results

Total revenues in the first quarter were $2.1 million compared to $3.0 million in the first quarter of 2024. Revenues generated by the GAMCO International SICAV – GAMCO Merger Arbitrage (the “SICAV”) were $0.9 million versus $1.7 million in the prior year period due to lower average AUM in 2025. All other revenues were $1.2 million compared to $1.3 million in the year-ago quarter.

Total operating expenses, excluding management fee, were $6.3 million in the first quarter of 2025 and $6.0 million in the first quarter of 2024. The increase is driven primarily by $0.9 million of mark to market expense on phantom RSA’s driven by an increase in AC’s stock price compared to 2024, partially offset by lower variable-based sales and marketing costs on the SICAV of $0.6 million.

Net investment and other non-operating income was $15.8 million for the first quarter of 2025 compared to $22.6 million in the first quarter of 2024. The primary driver of the 2025 quarter’s results was our merger arbitrage partnerships. Interest income was lower in the 2025 quarter due to lower average interest rates in the first quarter of 2025.

For the quarter ended March 31, 2025, the management fee was $1.1 million versus $2.0 million for the three months ended March 31, 2024.

The effective tax rate applied to our pre-tax income for the quarter ended March 31, 2025 was 26.3%. In the year ago quarter, the effective tax rate was 21.5%; 2024’s lower rate is primarily driven by deferred tax benefits from a foreign investment.

Assets Under Management (AUM)

Assets under management at March 31, 2025 were $1.27 billion, $21 million higher than year-end 2024 primarily due to market appreciation of $33 million and the impact of currency fluctuations in non-US dollar denominated classes of investment funds ($13 million). These increases were partially offset by net outflows of $25 million.

	March 31,		December 31,		March 31,
	2025		2024		2024
($ in millions)
Merger Arbitrage^(a)	$	1,012	$	1,003	$	1,262
Long/Short Value^(b)		221		209		251
Other		36		36		36
Total AUM	$	1,269	$	1,248	$	1,549

(a) Includes $401, $408, and $580 of sub-advisory AUM related to GAMCO International SICAV – GAMCO Merger Arbitrage, $70, $68, and $66 of sub-advisory AUM related to Gabelli Merchant Partners Plc (f/k/a Gabelli Merger Plus+ Trust Plc), respectively.
(b) Assets under management represent the assets invested in this strategy that are attributable to Associated Capital Group, Inc.

Alternative Investment Management

The alternative investment strategy offerings center around our merger arbitrage strategy which has an absolute return focus of generating returns independent of the broad equity and fixed income markets. We also offer strategies utilizing fundamental, active, event-driven and special situations investments.

Merger Arbitrage

For the first quarter of 2025, the longest continuously offered fund in the merger arbitrage strategy generated gross returns of 3.77% (2.81% net of fees). A summary of the performance is as follows:

Full Year

Performance%^(a)

1Q ’25

1Q ’24

2024

2023

2022

2021

5 Year^(b)

Since 1985^(b)(c)

Merger Arb

Gross

3.77

1.33

5.83

5.49

4.47

10.81

9.57

10.02

Net

2.81

0.87

3.82

3.56

2.75

7.78

7.09

^{(a) Net performance is net of fees and expenses, unless otherwise noted. Performance shown for an actual fund in this strategy. The performance of other funds in this strategy may vary. Past performance is no guarantee of future results.}
^{(b) Represents annualized returns through March 31, 2025}
^{(c) Inception Date: February 1985}

Global M&A activity for the first quarter of 2025 totaled $890 billion, an increase of 15% compared to the first quarter of 2024. Technology was the most active sector with $165 billion, accounting for 19% of total value, followed by Financials ($165 billion or 19%) and Energy & Power ($126 billion or 14%). Europe was a bright spot with M&A totaling $154 billion in Q1 2025, a 12% increase compared to Q1 2024, while Asia Pacific M&A increased 59% to $187 billion. Both of these regions experienced their strongest performance in 3 years. Private Equity remained active, accounting for 21% of deal volume overall, or about $185 billion. This was the third strongest opening quarter for private equity and is indicative of the values PE firms are finding and reflective of the approximately $3 trillion of “dry powder” private equity firms have to deploy. Despite recent market volatility creating uncertainty, we believe a more accommodative antitrust environment and pent-up demand from acquirers should be supportive of ongoing M&A activity.

The Merger Arbitrage strategy is offered by mandate and client type through partnerships and offshore corporations serving accredited as well as institutional investors. The strategy is also offered in separately managed accounts, a Luxembourg UCITS (an entity organized as an Undertaking for Collective Investment in Transferrable Securities) and a London Stock Exchange listed investment company, Gabelli Merchant Partners Plc (GMP-LN) (f/k/a Gabelli Merger Plus+ Trust Plc).

Acquisitions

Associated Capital Group’s plan is to accelerate the use of its capital. We intend to leverage our research and investment capabilities by pursuing acquisitions and alliances that will broaden our product offerings and add new sources of distribution. In addition, we may make direct investments in operating businesses using a variety of techniques and structures to accomplish our objectives.

Gabelli Private Equity Partners, LLC was created to launch a private equity business, somewhat akin to the success our predecessor PE firm had in the 1980s. We will continue our outreach initiatives with business owners, corporate management, and various financial sponsors. We are activating our program of buying privately owned, family started businesses, controlled and operated by the founding family.

Shareholder Compensation

On May 7, 2025, the Board of Directors declared a semi-annual dividend of $0.10 per share, which is payable on June 26, 2025 to shareholders of record on June 12, 2025.

During the first quarter of 2025, AC repurchased 39,018 Class A shares, for $1.4 million, at an average price of $36.32 per share. In the first quarter of 2024, AC repurchased 117,354 Class A shares, for $3.9 million, at an average price of $33.63 per share.

Since our spin-off from GAMCO on November 30, 2015, AC has returned $184.2 million to shareholders through share repurchases, exchange offers and dividends of $83.2 million.

At March 31, 2025, there were 21.145 million shares outstanding, consisting of 2.194 million Class A shares and 18.951 million Class B shares outstanding.

About Associated Capital Group, Inc.

Associated Capital Group, Inc. (NYSE:AC), based in Greenwich, Connecticut, is a diversified global financial services company that provides alternative investment management through Gabelli & Company Investment Advisers, Inc. (“GCIA”). We have also earmarked proprietary capital for our direct investment business that invests in new and existing businesses. The direct investment business is developing along several core pillars including Gabelli Private Equity Partners, LLC (“GPEP”), formed in August 2017 with $150 million of authorized capital as a “fund-less” sponsor. We also created Gabelli Principal Strategies Group, LLC (“GPS”) in December 2015 to pursue strategic operating initiatives.

Operating Loss Before Management Fee

Operating loss before management fee expense represents a non-GAAP financial measure used by management to evaluate its business operations. We believe this measure is useful in illustrating the operating results of the Company as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company’s proprietary investment portfolio and interest expense.

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

Operating loss – GAAP	$	(5,288	)	$	(4,970	)

Add: management fee expense (1)		1,103			1,982

Operating loss before management fee – Non-GAAP	$	(4,185	)	$	(2,988	)

^{(1) Management fee expense is incentive-based and is equal to 10% of Income before management fee and income taxes and excludes the impact of consolidating entities. For the three months ended March 31, 2025 and 2024, Income before management fee, income taxes and excluding consolidated entities was $11,028 and $19,822, respectively. As a result, $1,103 and $1,982 was accrued for the 10% management fee expense in the first quarters 2025 and 2024, respectively.}


Table I

ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Amounts in thousands)

	March 31,		December 31,		March 31,
	2025		2024		2024
ASSETS

Cash, cash equivalents and US Treasury Bills⁽¹⁾	$	357,813	$	367,850	$	395,386
Investments in securities and partnerships⁽¹⁾		506,156		487,623		442,458
Investment in GAMCO stock⁽²⁾		15,599		16,920		51,026
Receivable from brokers⁽¹⁾		25,458		27,634		32,966
Income taxes receivable, including deferred tax assets, net⁽¹⁾		3,310		6,021		6,444
Other receivables⁽¹⁾		1,752		4,778		2,126
Other assets⁽¹⁾		23,169		24,463		23,776
Total assets	$	933,257	$	935,289	$	954,182

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

Payable to brokers⁽¹⁾	$	5,258	$	5,491	$	6,332
Income taxes payable, including deferred tax liabilities, net		–		–		1,723
Compensation payable⁽¹⁾		12,456		17,747		11,545
Securities sold short, not yet purchased⁽¹⁾		8,754		8,436		9,439
Accrued expenses and other liabilities⁽¹⁾		2,149		5,317		2,514
Total liabilities	$	28,617	$	36,991	$	31,553

Redeemable noncontrolling interests⁽¹⁾		5,682		5,592		5,779

Total equity		898,958		892,706		916,850

Total liabilities, redeemable noncontrolling interests and equity	$	933,257	$	935,289	$	954,182

^{(1) Certain captions include amounts related to a consolidated variable interest entity (“VIE”) and voting interest entity (“VOE”); refer to footnote 4 of the Condensed Consolidated Financial Statements included in the 10-Q report to be filed for the quarter ended March 31, 2025 for more details on the impact of consolidating these entities.}
^{(2) Investment in GAMCO stock: 674,700, 699,749 and 2,382,170 shares, respectively.}


Table II

ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share data)

	Three Months Ended March 31,
	2025			2024

Investment advisory and incentive fees	$	2,004		$	2,907
Other revenues		125			104
Total revenues		2,129			3,011

Compensation		4,448			3,820
Other operating expenses		1,866			2,179
Total expenses		6,314			5,999

Operating loss before management fee		(4,185	)		(2,988	)

Investment gain		10,892			16,794
Dividend income from GAMCO		54			95
Interest and dividend income, net		4,919			5,805
Shareholder-designated contribution		(31	)		(69	)
Investment and other non-operating income, net		15,834			22,625

Income before management fee and income taxes		11,649			19,637
Management fee		1,103			1,982
Income before income taxes		10,546			17,655
Income tax expense		2,777			3,798
Income before noncontrolling interests		7,769			13,857
Income attributable to noncontrolling interests		100			36
Net income attributable to Associated Capital Group, Inc.	$	7,669		$	13,821

Net income per share attributable to Associated Capital Group, Inc.:
Basic and Diluted	$	0.36		$	0.64

Weighted average shares outstanding:
Basic and Diluted		21,166			21,500

Shares outstanding – end of period		21,145			21,420

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

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

Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that are difficult to predict and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Some of the factors that could cause our actual results to differ from our expectations or beliefs include a decline in the securities markets that adversely affect our assets under management, negative performance of our products, the failure to perform as required under our investment management agreements, and a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors contained in our Form 10 and other public filings. Other factors that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations whether as a result of new information, future developments or otherwise, except as may be required by law.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8f083310-4b5e-4b0f-8176-453a01cbd4c1

The MIL Network –

May 9, 2025

MIL-OSI: U.S. Hospitals and Health Systems Hit with Long-running Increases in Medical Supply and Drug Expenses, Bad Debt and Charity Care, According to New Strata Report

Source: GlobeNewswire (MIL-OSI)

CHICAGO, May 08, 2025 (GLOBE NEWSWIRE) — Hospitals and health systems nationwide saw notable growth in medical supply and drug expenses and increases in bad debt and charity care in recent years — all factors that could be exacerbated in the coming months as the healthcare industry feels the effects of federal tariffs and other policy changes, according to a new report from Strata Decision Technology.

Non-labor expenses have long been on the rise for U.S. hospitals, with total non-labor expense increasing year-over-year (YOY) each month for more than three years, according to Strata data. Medical supply and drug expenses have steadily grown as a share of overall expenses. Medical supply expense as a percent of total expense increased from 7.2% in the first quarter of 2023 to 8.0% in Q1 of this year. Drug expense as a percent of total expense rose from 4.1% in Q1 2023 to 4.4% in Q1 2025.

“Hospitals and health systems have battled persistent expense increases for years,” said Steve Wasson, Strata’s chief data and intelligence officer. “Now — with more than two-thirds of medical devices used in the U.S. manufactured outside of the country — tariffs and other federal policy changes could further drive up costs for pharmaceuticals, syringes, personal protective equipment, and other medical supplies and devices that healthcare professionals rely on every day to care for patients.”

U.S. health systems also saw growth in charity and bad debt deductions in recent years. The median charity deduction for health systems increased 5.4% from Q1 2024 to Q1 2025, and jumped 21.4% in Q1 2025 versus Q1 2023. The median health system bad debt deduction increased 9.2% from Q1 2024 to Q1 2025 and 16.9% versus Q1 2023.

For hospitals, charity deductions for the first quarter rose 7.6% from Q1 2024 and jumped 24.5% versus Q1 2023. Bad debt deductions at hospitals decreased slightly at 0.9% from Q1 2024 to Q1 2025, but rose 15.3% versus two years ago.

Possible changes to Medicaid being discussed in Congress could contribute to further increases in bad debt and charity care. As of Q1 2025, the data show that Medicaid accounts for 12% or more of revenue for most U.S. hospitals, depending on the region. Hospitals in the Midwest have the lowest share of Medicaid revenue at 11.1%, while hospitals in the West have the largest at 14.4%.

About the Data
The report uses data from Strata’s StrataSphere^® and Comparative Analytics database. Comparative Analytics offers access to near real-time data drawn from more than 135,000 physicians from over 10,000 practices and 139 specialty categories, and from 500+ unique departments across more than 1,600 hospitals. Comparative Analytics also provides data and comparisons specific to a single organization for visibility into how their market is evolving. StrataSphere is a unique and comprehensive data-sharing platform that helps providers leverage a network that represents approximately 25% of all provider spend in U.S. healthcare. This report incorporates data from more than 600 hospitals with StrataJazz^® Decision Support.

About Strata Decision Technology
Strata Decision Technology provides a cloud-based platform for software and service solutions to help organizations better analyze, plan, and perform in support of their missions. With the combination of Syntellis Performance Solutions’ Axiom solutions, more than 2,300 organizations rely on Strata to provide their financial analytics, planning, and performance solutions. Strata has been named the market leader for Business Decision Support for 18 consecutive years. By uniting these two industry leaders, Strata continues to deliver market-leading solutions and world-class service, with an increased focus on accelerating innovation. For more information, please go to www.stratadecision.com.

Strata Social Networks
LinkedIn: Strata Decision Technology
Media contact:
Sally Brown, Inkhouse
strata@inkhouse.com

The MIL Network –

May 9, 2025
MIL-OSI Security: Justice Department Announces Results of Operation Restore Justice: 205 Child Sex Abuse Offenders Arrested in FBI-Led Nationwide Crackdown, Including Two in the District of Hawaii

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

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

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

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

“Our pledge to protect Hawaii’s keiki is among the most solemn and critical commitments we make to our local community,” said Acting U.S. Attorney Ken Sorenson. “Working with our outstanding law enforcement partners we have consistently and aggressively pursued child predators and those who seek to exploit children either for profit or their own twisted gratification. Our efforts in Operation Restore Justice, including last week’s arrests, demonstrate the U.S. Attorney’s Office’s commitment to investigate, charge, and convict those who violate federal child protection laws.”

“The FBI is unwavering and united with its partners in the fight to protect children,” said FBI Honolulu Special Agent in Charge David Porter. “Our collaboration with state and local law enforcement allows us to extend our reach into communities, respond faster to threats, and ensure survivors get the support they need. FBI Honolulu will continue to conduct proactive arrest operations targeting those seeking to harm our children—we’ll work to get these predators off the streets and keep our kids safe.”

In the District of Hawaii, two individuals were arrested and charged with federal crimes, including Dominick Kalikokaeoeo Howard, who was charged by criminal complaint with distributing child pornography, and David Martin Garcia Perez, who was charged by criminal complaint with receiving and possessing or accessing child pornography.

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

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

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

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

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

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

Other online resources:

Electronic Press Kit

Violent Crimes Against Children

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

An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL Security OSI –

May 9, 2025
MIL-OSI Security: Zuni Man Pleads Guilty to Voluntary Manslaughter in Fatal Stabbing Case

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

ALBUQUERQUE – A Zuni man pleaded guilty in federal court to voluntary manslaughter in connection with a fatal stabbing.

According to court records, on February 4, 2023, Joey Luarkie, 25, an enrolled member of the Zuni pueblo, was at a residence in Zuni when the victim arrived, and an argument ensued. The confrontation escalated inside the home, where Luarkie stabbed the victim in the neck. The victim was found outside the residence by responding officers and died the next day after being transported to the hospital and undergoing emergency surgeries.

At sentencing, Luarkie faces up to 15 in prison, followed by up to three years of supervised release.

U.S. Attorney Ryan Ellison and Philip Russell, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today.

The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.

MIL Security OSI –

May 9, 2025
MIL-OSI USA: Stefanik Commends FBI and U.S. Attorney Investigation into Letitia James for Alleged Mortgage Fraud

Source: United States House of Representatives – Congresswoman Elise Stefanik (21st District of New York)

Stefanik Commends FBI and U.S. Attorney Investigation into Letitia James for Alleged Mortgage Fraud | Press Releases | Congresswoman Elise Stefanik

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MIL OSI USA News –

May 9, 2025
MIL-OSI Video: FBI New York: Operation Restore Justice

Source: Federal Bureau of Investigation (FBI) (video statements)

Assistant Director in Charge of the FBI New York Field Office, Christopher Raia, discusses the office’s Operation Restore Justice efforts. Operation Restore Justice is a nationwide coordinated enforcement effort to identify, track, and arrest child sex predators.

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https://www.youtube.com/watch?v=WS27PDqNE2o

MIL OSI Video –

May 9, 2025
MIL-OSI Video: FBI Cleveland – Operation Restore Justice

Source: Federal Bureau of Investigation (FBI) (video statements)

FBI Cleveland participated in Operation Restore Justice from April 28 to May 1, 2025, and arrested 11 individuals across Northern Ohio. Operation Restore Justice is a nationwide initiative to identify, track, and arrest child sex predators across the country in coordination with all 55 of our FBI field offices.

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Follow us on social media:
X: https://twitter.com/fbi
Facebook: https://facebook.com/FBI
Instagram: https://instagram.com/fbi
YouTube: youtube.com/user/fbi

https://www.youtube.com/watch?v=Fu9FFUrZPsM

MIL OSI Video –

May 9, 2025
MIL-OSI Security: PDS Gang Member Sentenced to 10 Years for Gun Battle in Southeast Washington Neighborhood

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

WASHINGTON – Isjalon Jermiah Armstead, 22, of the District of Columbia, was sentenced today to 120 months in prison in connection with a June 2023 shootout in a residential neighborhood in Southeast.

The sentencing was announced by U.S. Attorney Edward R. Martin Jr., FBI Special Agent in Charge Sean Ryan of the Washington Field Office Criminal and Cyber Division, Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Field Division, and Chief Pamela Smith of the Metropolitan Police Department.

Armstead, aka “Smaut,” was a member of the Push Dat Shit street crew. He pleaded guilty Jan. 30, 2025, to discharging a firearm during a drug trafficking offense. In addition to the 120-month prison term, U.S. District Court Judge Amy B. Jackson ordered Armstead to serve four years of supervised release.

According to court documents, on June 5, 2023, Armstead was in possession of a half-pound of marijuana and intended to sell it. About 3:15 p.m., Armstead — who was seated in the front passenger seat of a 2005 Nissan Altima near the intersection of Third and Atlantic Streets, SE — engaged in a gun battle with the driver of another car. During the shootout, Armstead fired a .300 caliber AR-Pistol from the passenger seat before the Altima he was riding in became disabled and crashed through a fence and stopped in a grassy area next to an apartment building on Atlantic Street.

Armstead, who suffered bullet wounds to his wrist and chest during the shootout, and the driver of the vehicle both fled on foot through a wooded area between Atlantic Street and Valley Avenue, stopping to discard the AR-Pistol in a trash receptacle. Responding MPD officers apprehended Armstead about 3:18 p.m. at the intersection of Fourth Street and Valley Avenue, SE, retraced Armstead’s steps, and found the AR-Pistol which was later determined to have Armstead’s DNA on it.

According to court documents, PDS maintained gang territory in the 3300 – 3500 blocks of Wheeler Road, SE, and operated an open-air drug market outside a market. In August 2018, PDS allied with a neighboring street gang known as Jugg Gang. The combined gang also conspired to carry firearms – including machine guns – to protect themselves, their drugs, their cash, and their territory from rival crews with whom they had “beefs.”

This sentence is part of an ongoing joint investigation which has resulted in 26 convictions and the seizure of two vehicles, 35 firearms, four machine guns, more than 1,000 rounds of ammunition, approximately 60 pounds of marijuana, 41 grams of cocaine base, dozens of oxycodone pills, and approximately $500,000 in cash.

The case was investigated by the FBI Washington Field Office’s Cross Border Task Force, the ATF’s Washington Field Division, and the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney James B. Nelson.

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MIL Security OSI –

May 9, 2025
MIL-OSI: Sunlight Simplify and AndDone Unite to Streamline Insurance Operations and Payments

Source: GlobeNewswire (MIL-OSI)

ORLANDO, Fla. and KANSAS CITY, Mo., May 08, 2025 (GLOBE NEWSWIRE) — Sunlight Simplify, a leading provider of cloud-based, no-code and low-code policy administration solutions for insurance carriers and managing general agents (MGAs), and AndDone, a premier insurance-focused payments platform wholly owned by IPFS, are excited to announce a strategic partnership aimed at revolutionizing the insurance industry’s operational and payment processes.

This collaboration integrates Sunlight Simplify’s robust policy administration capabilities, tailored specifically for the Medical Professional Liability (MPL) insurance sector, with AndDone’s flexible and secure payment solutions. The synergy between the two platforms promises to deliver a seamless experience for insurers, from policy management to premium collection.

“By partnering with AndDone, we’re enhancing our platform’s capabilities to offer a more comprehensive solution for MPL insurers,” said Bernadette Leh, President & Co-Founder of Sunlight Simplify. “This integration allows our clients to manage policies and process payments within a unified, efficient system.”

AndDone’s suite of payment solutions—including hosted payment portals, embedded payment options, and secure APIs—complements Sunlight Simplify’s features such as customer relationship management, billing, subledger management, and reporting analytics. Together, they provide a holistic approach to insurance operations, reducing administrative burdens and enhancing customer satisfaction.

“Our mission at AndDone has always been to simplify payment processes for insurance professionals,” said Chase Courtney, Vice President at AndDone. “Collaborating with Sunlight Simplify aligns perfectly with our goals, enabling us to offer integrated solutions that address the unique challenges of the insurance industry.”

The partnership is set to roll out in phases, with an initial integration focusing on streamlining payment processing for MPL insurers. Future developments will include a premium finance option powered by IPFS as well as an aim to expand these capabilities to other insurance sectors, further enhancing the value proposition for clients.

For more information about the partnership and upcoming integrations, please visit www.sunlightsimplify.com and www.anddone.com

About Sunlight Simplify
Sunlight Simplify is a cloud based, no-code & low-code, Policy Administration software solution for Insurance Carriers and MGAs. The enterprise suite is tailored to support the specific requirements of the Medical Professional Liability Insurance line of business. The highly flexible, multi-language, multi-currency configurable solution allows for quick implementation across states, territories and countries.

Contacts:

Martin Kowal
Sunlight Simplify
mkowal@sunlightsolutions.com
708-668-3794

About AndDone

AndDone is a leading payments platform tailored specifically for the insurance industry. Offering a range of solutions including hosted payment portals, embedded payment options, secure payment APIs, and premium financing, AndDone simplifies the premium collection process for insurance professionals. With a focus on flexibility, security, and user experience, AndDone empowers agencies to enhance their payment workflows and improve customer satisfaction. For more information, please visit www.anddone.com.

Contacts:

Chase Courtney
AndDone
chase@anddone.com
318-664-2053

The MIL Network –

May 9, 2025

Category: Intelligence Agencies

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