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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

    Additional Information about the Special Meeting

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

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

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

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

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

    About Thomas J. Herzfeld Advisors, Inc.

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

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

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

    Forward-Looking Statements

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

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

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

    The MIL Network –

  • MIL-OSI: MKS Instruments Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    • Quarterly revenue of $936 million, at the high end of guidance
    • Quarterly GAAP net income of $52 million and net income per diluted share of $0.77, each above the midpoint of guidance
    • Quarterly Adjusted EBITDA of $236 million, at the high end of guidance, and Non-GAAP net earnings per diluted share of $1.71, above the high end of guidance

    ANDOVER, Mass., May 07, 2025 (GLOBE NEWSWIRE) — MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported first quarter 2025 financial results.

    “We maintained our recent momentum in the first quarter with solid revenue performance that was at the high end of our guidance, led by strong year-over-year growth in both our Semiconductor and Electronics & Packaging end markets,” said John T.C. Lee, President and Chief Executive Officer. “Our team is executing well and capturing opportunities across memory and foundry as well as advanced packaging necessary to support AI applications.”

    Mr. Lee added, “We exited the quarter seeing pockets of demand improvement in our Semiconductor and Electronics and Packaging markets. We are taking active steps to mitigate the impacts from new trade policies. This situation remains dynamic, but we are confident in our ability to manage through, supported by our resilient global manufacturing and supply chain, strong customer relationships and broad, deep product portfolio.”

    “MKS has a strong track record of financial discipline and execution which was once again reflected in our first quarter results,” said Ram Mayampurath, Executive Vice President, Chief Financial Officer and Treasurer.

    Mr. Mayampurath added, “Our GAAP and Non-GAAP gross margins were at the high end of our guidance range and our GAAP and Non-GAAP operating income exceeded our guidance midpoints. Our second quarter guidance reflects an overall stable demand environment and strong business fundamentals while also factoring in our current view of potential impacts from evolving trade policies. We remain focused on managing profitability and cash generation to delever and strengthen our balance sheet.”

    Selected GAAP and Non-GAAP Financial Measures
    (In millions, except per share data)
     
      Q1 2025   Q4 2024   Q1 2024
    Net Revenues          
    Semiconductor $ 413     $ 400     $ 351  
    Electronics & Packaging   253       254       208  
    Specialty Industrial   270       281       309  
    Total net revenues $ 936     $ 935     $ 868  
    GAAP Financial Measures          
    Gross margin   47.4 %     47.2 %     47.8 %
    Operating margin   11.9 %     14.5 %     12.2 %
    Net income $ 52     $ 90     $ 15  
    Net income per diluted share $ 0.77     $ 1.33     $ 0.22  
    Non-GAAP Financial Measures          
    Gross margin   47.4 %     47.2 %     47.8 %
    Operating margin   20.2 %     21.3 %     20.2 %
    Net earnings $ 116     $ 146     $ 79  
    Net earnings per diluted share $ 1.71     $ 2.15     $ 1.18  
                           


    Additional Financial Information

    At March 31, 2025, the Company had $655 million in cash and cash equivalents, $3.2 billion of secured term loan principal outstanding, $1.4 billion of convertible senior notes outstanding and up to $675 million of additional borrowing capacity under a revolving credit facility, subject to certain leverage ratio requirements. During the first quarter of 2025, the Company completed the repricing of its USD term loan B and EUR term loan B and made a voluntary principal prepayment of $100 million on its USD term loan B. Additionally, the Company repurchased approximately 546,000 shares of its common stock for approximately $45 million, and paid a cash dividend of $15 million or $0.22 per diluted share.

    Second Quarter 2025 Guidance

    • Revenue of $925 million, plus or minus $40 million
    • Gross margin of 46.5%, plus or minus 1.0%
    • GAAP operating expenses of $316 million, plus or minus $5 million and Non-GAAP operating expenses of $252 million, plus or minus $5 million
    • GAAP net income of $55 million, plus or minus $21 million and Non-GAAP net earnings of $106 million, plus or minus $19 million
    • GAAP net income per diluted share of $0.81, plus or minus $0.32 and Non-GAAP net earnings per diluted share of $1.56, plus or minus $0.28
    • Adjusted EBITDA of $216 million, plus or minus $23 million

    The guidance for the second quarter is based on the current business environment, including the impact of U.S. import tariffs and the imposition of retaliatory actions taken by other countries up through but not including the date of this release. The Company will continue to monitor and adapt to changes in the business environment as needed.

    Conference Call Details

    A conference call with management will be held on Thursday, May 8, 2025 at 8:30 a.m. (Eastern Time). To participate in the call by phone, participants should visit the Investor Relations section of MKS’ website at investor.mks.com and click on Events & Presentations, where you will be able to register online and receive dial-in details. We encourage participants to register and dial in to the conference call at least 15 minutes before the start of the call to ensure a timely connection. A live and archived webcast and related presentation materials will be available on the Investor Relations section of the MKS website.

    About MKS Instruments

    MKS Instruments enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world’s leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.

    Use of Non-GAAP Financial Results

    This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

    SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
     

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Instruments, Inc. (“MKS,” the “Company,” “our,” or “we”). These statements are only predictions based on current assumptions and expectations. Any statements that are not statements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the level and terms of our substantial indebtedness and our ability to service such debt; our entry into the chemicals technology business through our acquisition of Atotech Limited (“Atotech”) in August 2022 (the “Atotech Acquisition”), which has exposed us to significant additional liabilities; the risk that we are unable to realize the anticipated benefits of the Atotech Acquisition; risks related to cybersecurity, data privacy and intellectual property; competition from larger, more advanced or more established companies in our markets; the ability to successfully grow our business, including through growth of the Atotech business, and financial risks associated with that acquisition and potential future acquisitions, including goodwill and intangible asset impairments; manufacturing and sourcing risks, including those associated with limited and sole source suppliers and the impact and duration of supply chain disruptions, component shortages, and price increases; changes in global demand; risks associated with doing business internationally, including geopolitical conflicts, such as the conflict in the Middle East, trade compliance, trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations, which risks become more significant as we grow our business internationally and in China specifically; conditions affecting the markets in which we operate, including fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers upon which our operations may rely; the ability to anticipate and meet customer demand; the challenges, risks and costs involved with integrating or transitioning global operations of the companies we have acquired; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; dependence on new product development; rapid technological and market change; acquisition strategy; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks related to defective products; financial and legal risk management; and the other important factors described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequent Quarterly Reports on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, even if subsequent events cause our views to change, after the date of this press release. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

    Company Contact:
    Paretosh Misra
    Vice President, Investor Relations
    Telephone: (978) 284-4705
    Email: paretosh.misra@mks.com

     
     
    MKS Instruments, Inc.
    Unaudited Consolidated Statements of Operations
    (In millions, except per share data)
               
      Three Months Ended
      March 31,   December 31,   March 31,
        2025       2024       2024  
    Net revenues:          
    Products $ 819     $ 824     $ 754  
    Services   117       111       114  
    Total net revenues   936       935       868  
    Cost of revenues:          
    Products   437       443       398  
    Services   55       51       55  
    Total cost of revenues (exclusive of amortization shown separately below)   492       494       453  
    Gross profit   444       441       415  
    Research and development   70       65       70  
    Selling, general and administrative   185       176       170  
    Acquisition and integration costs   —       3       1  
    Restructuring and other   16       1       3  
    Fees and expenses related to amendments to the Term Loan Facility   2       —       3  
    Amortization of intangible assets   60       61       62  
    Income from operations   111       135       106  
    Interest income   (3 )     (5 )     (6 )
    Interest expense   53       54       87  
    Loss on extinguishment of debt   3       4       9  
    Other (income) expense, net   (1 )     3       (3 )
    Income before income taxes   59       79       19  
    Provision (benefit) for income taxes   7       (11 )     4  
    Net income $ 52     $ 90     $ 15  
    Net income per share:          
    Basic $ 0.77     $ 1.34     $ 0.22  
    Diluted $ 0.77     $ 1.33     $ 0.22  
    Cash dividends per common share $ 0.22     $ 0.22     $ 0.22  
    Weighted average shares outstanding:          
    Basic   67.4       67.4       67.0  
    Diluted   67.7       67.7       67.4  
               
    MKS Instruments, Inc.
    Unaudited Consolidated Balance Sheets
    (In millions)
           
           
      March 31,   December 31,
        2025       2024  
    ASSETS      
    Cash and cash equivalents $ 655     $ 714  
    Trade accounts receivable, net   639       615  
    Inventories   894       893  
    Other current assets   238       252  
    Total current assets   2,426       2,474  
    Property, plant and equipment, net   774       771  
    Right-of-use assets   239       238  
    Goodwill   2,496       2,479  
    Intangible assets, net   2,238       2,272  
    Other assets   383       356  
    Total assets $ 8,556     $ 8,590  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Short-term debt $ 50     $ 50  
    Accounts payable   323       341  
    Other current liabilities   408       384  
    Total current liabilities   781       775  
    Long-term debt, net   4,409       4,488  
    Non-current deferred taxes   502       504  
    Non-current accrued compensation   139       141  
    Non-current lease liabilities   211       211  
    Other non-current liabilities   160       149  
    Total liabilities   6,202       6,268  
    Stockholders’ equity:      
    Common stock   —       —  
    Additional paid-in capital   2,067       2,067  
    Retained earnings   512       503  
    Accumulated other comprehensive loss   (225 )     (248 )
    Total stockholders’ equity   2,354       2,322  
    Total liabilities and stockholders’ equity $ 8,556     $ 8,590  
           
    MKS Instruments, Inc.
    Unaudited Consolidated Statements of Cash Flows
    (In millions)
               
      Three Months Ended
      March 31,   December 31,   March 31,
        2025       2024       2024  
    Cash flows from operating activities:          
    Net income $ 52     $ 90     $ 15  
    Adjustments to reconcile net income to net cash provided by operating activities:          
    Depreciation and amortization   85       87       88  
    Unrealized loss (gain) on derivatives not designated as hedging instruments   2       11       3  
    Amortization of debt issuance costs and original issue discounts   6       7       8  
    Loss on extinguishment of debt   3       4       9  
    Stock-based compensation   22       11       15  
    Provision for excess and obsolete inventory   17       15       11  
    Deferred income taxes   (37 )     (58 )     (36 )
    Other   1       2       2  
    Changes in operating assets and liabilities, net of acquired assets and liabilities   (10 )     7       (48 )
    Net cash provided by operating activities   141       176       67  
    Cash flows from investing activities:          
    Purchases of property, plant and equipment   (18 )     (51 )     (18 )
    Net cash used in investing activities   (18 )     (51 )     (18 )
    Cash flows from financing activities:          
    Repurchase of common stock   (45 )     —       —  
    Proceeds from borrowings   —       —       761  
    Payments of borrowings   (113 )     (229 )     (806 )
    Payments of deferred financing fees   —       —       (2 )
    Dividend payments   (15 )     (15 )     (15 )
    Net (payments) proceeds related to employee stock awards   (5 )     3       (9 )
    Other financing activities   (2 )     (5 )     (1 )
    Net cash used in financing activities   (180 )     (246 )     (72 )
    Effect of exchange rate changes on cash and cash equivalents   (2 )     (26 )     (7 )
    Decrease in cash and cash equivalents   (59 )     (147 )     (30 )
    Cash and cash equivalents at beginning of period   714       861       875  
    Cash and cash equivalents at end of period $ 655     $ 714     $ 845  
               
    The following supplemental Non-GAAP earnings information is presented to aid in understanding MKS’ operating results:
               
    MKS Instruments, Inc.
    Schedule Reconciling Selected Non-GAAP Financial Measures
    (In millions, except per share data)
               
      Three Months Ended
      March 31,   December 31,   March 31,
       2025    2024    2024
    Net income $ 52     $ 90     $ 15  
    Acquisition and integration costs   —       3       1  
    Restructuring and other   16       1       3  
    Amortization of intangible assets   60       61       62  
    Loss on extinguishment of debt   3       4       9  
    Amortization of debt issuance costs   5       5       6  
    Fees and expenses related to amendments to the Term Loan Facility   2       —       3  
    Tax effect of Non-GAAP adjustments   (22 )     (18 )     (20 )
    Non-GAAP net earnings $ 116     $ 146     $ 79  
    Non-GAAP net earnings per diluted share $ 1.71     $ 2.15     $ 1.18  
    Weighted average diluted shares outstanding   67.7       67.7       67.4  
               
    Net cash provided by operating activities $ 141     $ 176     $ 67  
    Purchases of property, plant and equipment   (18 )     (51 )     (18 )
    Free cash flow $ 123     $ 125     $ 49  
    GAAP and Non-GAAP gross profit $ 444     $ 441     $ 415  
    GAAP and Non-GAAP gross margin   47.4 %     47.2 %     47.8 %
    Operating expenses $ 332     $ 306     $ 309  
    Acquisition and integration costs   —       3       1  
    Restructuring and other   16       1       3  
    Amortization of intangible assets   60       61       62  
    Fees and expenses related to amendments to the Term Loan Facility   2       —       3  
    Non-GAAP operating expenses $ 254     $ 242     $ 240  
    Income from operations $ 111     $ 135     $ 106  
    Operating margin   11.9 %     14.5 %     12.2 %
    Acquisition and integration costs   —       3       1  
    Restructuring and other   16       1       3  
    Amortization of intangible assets   60       61       62  
    Fees and expenses related to amendments to the Term Loan Facility   2       —       3  
    Non-GAAP income from operations $ 189     $ 199     $ 175  
    Non-GAAP operating margin   20.2 %     21.3 %     20.2 %
    Interest expense, net $ 50     $ 49     $ 81  
    Amortization of debt issuance costs   5       5       6  
    Non-GAAP interest expense, net $ 45     $ 45     $ 75  
    Net income $ 52     $ 90     $ 15  
    Interest expense, net   50       49       81  
    Other (income) expense, net   (1 )     3       (3 )
    Provision (benefit) for income taxes   7       (11 )     4  
    Depreciation   25       26       26  
    Amortization   60       61       62  
    Stock-based compensation   22       11       15  
    Acquisition and integration costs   —       3       1  
    Restructuring and other   16       1       3  
    Loss on extinguishment of debt   3       4       9  
    Fees and expenses related to amendments to the Term Loan Facility   2       —       3  
    Adjusted EBITDA $ 236     $ 237     $ 217  
    Adjusted EBITDA margin   25.2 %     25.3 %     25.0 %
               
    MKS Instruments, Inc.
    Schedule Reconciling Selected Non-GAAP Financial Measures
    (In millions, except per share data)
                           
      Three Months Ended March 31, 2025   Three Months Ended December 31, 2024
      Income Before Income Taxes   Provision for Income Taxes   Effective Tax Rate   Income Before Income Taxes    (Benefit) Provision for Income Taxes   Effective Tax Rate
    GAAP $ 59     $ 7     12.3 %   $ 79     $ (11 )   (14.5 %)
    Acquisition and integration costs   —       —           3       —      
    Restructuring and other   16       —           1       —      
    Amortization of intangible assets   60       —           61       —      
    Loss on extinguishment of debt   3       —           4       —      
    Amortization of debt issuance costs   5       —           5       —      
    Fees and expenses related to amendments to the Term Loan Facility   2       —           —       —      
    Tax effect of Non-GAAP adjustments   —       22           —       18      
    Non-GAAP $ 145     $ 29     19.9 %   $ 153     $ 7     4.0 %
                           
                           
                  Three Months Ended March 31, 2024
                  Income Before Income Taxes   Provision for Income Taxes   Effective Tax Rate
    GAAP             $ 19     $ 4     23.1 %
    Acquisition and integration costs               1       —      
    Restructuring and other               3       —      
    Amortization of intangible assets               62       —      
    Loss on extinguishment of debt               9       —      
    Amortization of debt issuance costs               6       —      
    Fees and expenses related to amendments to the Term Loan Facility               3       —      
    Tax effect of Non-GAAP adjustments               —       20      
    Non-GAAP             $ 103     $ 24     23.3 %
                           
    MKS Instruments, Inc.
    Schedule Reconciling Selected Non-GAAP Financial Measures – Q2’25 Guidance
    (In millions, except per share data)
           
      Three Months Ending June 30, 2025
      $ Amount   Per Share
    GAAP net income and net income per share $ 55     $ 0.81  
    Restructuring and other   4      
    Amortization of intangible assets   60      
    Loss on extinguishment of debt   2      
    Amortization of debt issuance costs   4      
    Tax effect of Non-GAAP adjustments   (19 )    
    Non-GAAP net earnings and net earnings per share $ 106     $ 1.56  
    Weighted average diluted shares   67.6      
           
    GAAP operating expenses $ 316      
    Restructuring and other   (4 )    
    Amortization of intangible assets   (60 )    
    Non-GAAP operating expenses $ 252      
           
    GAAP net income   55      
    Interest expense, net   52      
    Other expense (income), net   1      
    Provision for income taxes   4      
    Depreciation   26      
    Restructuring and other   4      
    Amortization of intangible assets   60      
    Stock-based compensation   12      
    Loss on extinguishment of debt   2      
    Adjusted EBITDA $ 216      
           
     
    MKS Instruments, Inc.
    Notes on Our Non-GAAP Financial Information
     

    Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

    Acquisition and integration costs include incremental expenses incurred to effect the Atotech Acquisition. Such acquisition costs may include advisory, legal, tax, accounting, valuation, and other professional or consulting fees. Such integration costs may include expenses directly related to integration of business and facility operations, information technology systems and infrastructure and other employee-related costs.

    Restructuring and other includes incremental expenses incurred in connection with restructuring programs and other strategic initiatives, primarily related to changes in business and/or cost structure. Such costs may include third-party services, one-time termination benefits, facility-related costs, contract termination fees and other items that have no direct correlation to our future business operations.

    Amortization of intangible assets includes non-cash amortization expense associated with intangible assets acquired in acquisitions.

    Loss on extinguishment of debt includes the non-cash write-off of unamortized debt issuance costs and original issue discount costs incurred from voluntary prepayments and/or repricing of our term loan facility.

    Amortization of debt issuance costs includes non-cash additional interest expense related to the amortization of debt issuance costs and original issue discount costs associated with our term loan facility.

    Fees and expenses related to amendments to the Term Loan Facility includes direct third-party costs related to repricings or refinancings of our term loan facility.

    Tax effect of Non-GAAP adjustments includes the impact of Non-GAAP adjustments that are tax effected at applicable statutory rates resulting in a difference between the GAAP and Non-GAAP tax rates. 

    The MIL Network –

  • MIL-OSI: Ormat Technologies Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    REVENUE GROWTH AND RECORD QUARTERLY ADJUSTED EBITDA SUPPORT ONGOING STRATEGIC PORTFOLIO EXPANSION

    HIGHLIGHTS

    • TOTAL REVENUES AND NET INCOME1 IMPROVED 2.5% AND 4.6%, RESPECTIVELY
    • RECORD ADJUSTED EBITDA OF $150.3 MILLION, AN INCREASE OF 6.4% VS LAST YEAR
    • ENERGY STORAGE SEGMENT REVENUES INCREASED BY 120% DRIVING MEANINGFUL MARGIN INCREASE
    • SIGNED AN AGREEMENT TO ACQUIRE THE 20MW BLUE MOUNTAIN GEOTHERMAL POWER PLANT FROM CYRQ ENERGY
    • COMPANY REITERATES ITS 2025 FULL-YEAR GUIDANCE, REFLECTING STRONG EXECUTION AND CONFIDENCE IN THE BUSINESS OUTLOOK

    RENO, Nev., May 07, 2025 (GLOBE NEWSWIRE) — Ormat Technologies, Inc. (NYSE: ORA) (the “Company” or “Ormat”), a leading renewable energy company, today announced financial results for the first quarter ended March 31, 2025.

    KEY FINANCIAL RESULTS

      Q1 2025 Q1 2024 Change (%)
    GAAP Measures      
    Revenues ($ millions)      
                 Electricity 180.2   191.3   (5.8 %)
                 Product 31.8   24.8   27.9 %
                 Energy Storage 17.8   8.1   119.7 %
    Total Revenues 229.8   224.2   2.5 %
           
    Gross Profit 72.9   78.8   (7.5 %)
    Gross margin (%)      
    Electricity 33.5 % 39.0 %  
    Product 22.3 % 14.8 %  
    Energy Storage 30.6 % 7.5 %  
    Gross margin (%) 31.7 % 35.2 %  
    Operating income ($ millions) 50.9   52.6   (3.2 %)
    Net income attributable to the Company’s stockholders 40.4   38.6   4.6 %
    Diluted EPS ($) 0.66   0.64   3.1 %
    Non-GAAP Measures      
    Adjusted Net income attributable to the Company’s stockholders 41.5   39.6   4.8 %
    Adjusted Diluted EPS ($) 0.68   0.65   4.6 %
    Adjusted EBITDA2($ millions) 150.3   141.2   6.4 %

    1 Net Income attributable to the Company’s stockholder
    2 See reconciliation table below

    “Ormat had a strong start to 2025, achieving a 2.5% increase in revenue, a 4.6% rise in net income attributable to the Company’s stockholders, and a 6.4% increase in adjusted EBITDA. This growth was driven by improved performance in both our Product and Storage segments,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “Our Storage segment benefited from new capacity added over the last 12 months and from higher merchant prices in the PJM market. We expect continued good performance throughout 2025 as we transition our Storage segment to a more predictable portfolio designed to maximize profitability.”

    “While our Electricity segment experienced a slight year-over-year decline in the quarter due to previously disclosed curtailments in California and Nevada, the balance of our geothermal operations delivered a consistent, solid performance. We have several projects under development that we anticipate will reach commercial operation by the end of 2025, which we expect will deliver solid generation growth and further strengthen our earnings trajectory. Additionally, we believe that the potential easing of project permitting timelines combined with increased focus on geothermal exploration will further support our growth in the segment, expand our revenues, and help us achieve our long-term targets.”

    “I am pleased to announce that Ormat signed an agreement to acquire the Blue Mountain geothermal power plant from Cyrq Energy for $88 million, subject to standard working capital adjustments. The 20 MW facility, located in Humboldt County, was built using Ormat technology, features an existing 51 MW interconnection capacity and a Power Purchase Agreement (PPA) with NV Energy (NVE) that expires at the end of 2029. Following the acquisition, Ormat plans to upgrade the power plant, increasing its capacity by 3.5 MW. Additionally, subject to permit and PPA approval, Ormat intends to add a 13 MW solar facility to support the plant’s auxiliaries. The acquisition is anticipated to close towards the end of the second quarter. This acquisition underscores Ormat’s capability to strategically expand and enhance assets in the U.S., leveraging our advanced technology and expertise to optimize performance and efficiency. The planned upgrades and solar addition demonstrate our commitment to innovation and maximizing renewable energy output, contributing to a sustainable future.”

    Blachar continued, “The demand for electricity, particularly from baseload renewable sources, remains strong, and we continue to observe high PPA pricing in the Electricity Segment, and increased Resource Adequacy (RA) pricing in the Storage Segment. Regarding the recent reciprocal tariffs, we anticipate a limited short-term impact on our Storage Segment as we have already procured batteries for all projects currently under construction. Additionally, our Electricity Segment operations and project development have limited exposure to China, mitigating potential adverse effects from the tariffs. Ormat remains committed to delivering reliable and sustainable energy solutions and enhancing shareholder value. We will continue navigating this fluid regulatory environment with a focus on maintaining our growth trajectory and supporting the transition to a cleaner energy future.”

    FINANCIAL HIGHLIGHTS

    • Net income attributable to the Company’s stockholders for the first quarter was $40.4 million, an increase of 4.6% compared to last year. Diluted EPS for the first quarter was $0.66, an increase of 3.1%, compared to the prior year period. This increase is mainly driven by income tax benefits related to the storage facilities expected to commence commercial operation during 2025.
    • Adjusted net income attributable to the Company’s stockholders and Adjusted diluted EPS for the first quarter increased 4.8% and 4.6%, respectively.
    • Adjusted EBITDA for the first quarter was $150.3 million, an increase of 6.4% compared to 2024. The year-over-year increase in Adjusted EBITDA was driven by the Energy Storage segment, due to the contribution of new assets, higher merchant pricing in the East Coast markets, and a legal settlement with a battery supplier. In the Product segment, the increase was derived from a higher backlog and improved contract’ margins. The increase in the Storage and Product segments was partly offset by the reduction in Electricity segment EBITDA mainly due to curtailments in the U.S.
    • Electricity segment revenues decreased by 5.8% during the first quarter, compared to last year. The year-over-year decrease in the first quarter revenue was driven by the previously disclosed energy curtailments, mainly at our McGinness complex, maintenance on the transmission line by the local grid operator, and wildfires in California, which forced grid operators to curtail part of the supplied power.
    • Product segment revenues increased by 27.9% in the first quarter, driven largely by the timing of revenue recognition and our higher backlog. Gross margin increased from 14.8% in the first quarter 2024 to 22.3% in 2025, reflecting marked growth in revenue.
    • Product segment backlog stands at approximately $314 million as of May 7th, 2025, and includes the recently signed Engineering, Procurement, and Construction (EPC) contract for the development of the Te Mihi Stage 2 geothermal plant in New Zealand and the BOT project in Dominica.
    • Energy Storage segment revenues increased 119.7% for the first quarter compared to 2024. The improvement was driven by strong performance in the PJM merchant market, where a spike in cold weather along the East Coast contributed to elevated merchant pricing.

    BUSINESS HIGHLIGHTS:

    • In early May, the company signed an agreement to acquire the 20MW Blue Mountain geothermal power plant from Cyrq Energy for $88 million. Closing is expected by the end of the second quarter.
    • In February 2025, Ormat won a tender issued by the Israeli Electricity Authority and was awarded two 15-year tolling agreements for two energy storage facilities with a combined capacity of approximately 300MW/1200MWh. Ormat will retain a 50% equity interest.
    • Ormat commenced commercial operations of the 35MW Ijen geothermal power plant in Indonesia in February 2025, holding a 49% equity interest.
    • In January 2025, Ormat signed a 10-year Power Purchase Agreement (PPA) with Calpine Energy Solutions for up to 15MW of carbon-free geothermal capacity at favorable terms. This PPA will replace the current lower-priced PPA with Southern California Edison for Mammoth 2 in the first quarter of 2027.
    • We currently do not expect material impact from the new import tariffs on our 2025 and 2026 financial results. All batteries required for our projects arrived or were in transit to the U.S. before significant increased tariffs were imposed.

    2025 GUIDANCE

    • Total revenues of between $935 million and $975 million.
    • Electricity segment revenues of between $710 million and $725 million.
    • Product segment revenues of between $172 million and $187 million.
    • Energy Storage revenues of between $53 million and $63 million.
    • Adjusted EBITDA to be between $563 million and $593 million.
      • Adjusted EBITDA attributable to minority interest of approximately $21 million.

    The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three months ended March 31, 2025. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.

    DIVIDEND

    On May 7, 2025, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on June 4, 2025, to stockholders of record as of the close of business on May 21, 2025. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters.

    CONFERENCE CALL DETAILS

    Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, May 8, 2025, at 9:00 a.m. ET.

    Participants within the United States and Canada, please dial +1-800-715-9871, approximately 15 minutes prior to the scheduled start of the call. If you are calling outside of the United States and Canada, please dial +1-646-960-0440. The access code for the call is 3818407. Please request the “Ormat Technologies, Inc. call” when prompted by the conference call operator. The conference call will also be accompanied by a live webcast which will be hosted on the Investor Relations section of the Company’s website.

    A replay will be available one hour after the end of the conference call. To access the replay within the United States and Canada, please dial 1-800-770-2030. From outside of the United States and Canada, please dial +1-647-362-9199. Please use the replay access code 3818407. The webcast will also be archived on the Investor Relations section of the Company’s website.

    ABOUT ORMAT TECHNOLOGIES

    With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company, and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,400 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,538MW with a 1,248MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 290MW energy storage portfolio that is located in the U.S.

    ORMAT’S SAFE HARBOR STATEMENT

    Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues and Adjusted EBITDA, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, legal, market, industry and geopolitical developments and incentives, demand for renewable energy, and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat’s plans, objectives and expectations for future operations and are based upon its management’s current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under “Risk Factors” as described in Ormat’s most recent annual report, and in subsequent filings.

    These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Condensed Consolidated Statement of Operations
    For the Three Months Ended March 31, 2025, and 2024
     
      Three Months Ended March 31,
      2025   2024  
    Revenues: (Thousands, except per share data)
    Electricity         180,241   191,253  
    Product         31,769   24,832  
    Energy storage          17,752   8,081  
    Total revenues         229,762   224,166  
    Cost of revenues:    
    Electricity         119,833   116,730  
    Product         24,684   21,154  
    Energy storage          12,318   7,472  
    Total cost of revenues         156,835   145,356  
    Gross profit         72,927   78,810  
    Operating expenses:    
    Research and development expenses         2,542   1,564  
    Selling and marketing expenses         4,172   5,126  
    General and administrative expenses         17,909   19,537  
    Other operating income         (3,125 ) —  
    Write-off of unsuccessful exploration and storage activities         516   —  
    Operating income         50,913   52,583  
    Other income (expense):    
    Interest income         1,313   1,839  
    Interest expense, net         (34,473 ) (30,968 )
    Derivatives and foreign currency transaction gains (losses)         2,060   (1,582 )
    Income attributable to sale of tax benefits         17,571   17,476  
    Other non-operating income, net         222   26  
    Income from operations before income tax and equity in earnings of investees         37,606   39,374  
    Income tax (provision) benefit         3,795   147  
    Equity in earnings (losses) of investees         (367 ) 829  
    Net income         41,034   40,350  
    Net income attributable to noncontrolling interest         (672 ) (1,763 )
    Net income attributable to the Company’s stockholders         40,362   38,587  
    Earnings per share attributable to the Company’s stockholders:    
    Basic: 0.67   0.64  
    Diluted: 0.66   0.64  
    Weighted average number of shares used in computation of earnings per share attributable to the Company’s stockholders:    
    Basic         60,559   60,386  
    Diluted         60,840   60,536  
         
    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Condensed Consolidated Balance Sheet
    For the Period Ended March 31, 2025, and the Period Ended December 31, 2024
     
      March 31,
    2025    		   December 31,
    2024
    ASSETS                                       (In thousands)
    Current assets:      
    Cash and cash equivalents          112,704     94,395  
    Restricted cash and cash equivalents (primarily related to VIEs)         112,001     111,377  
    Receivables:      
         Trade less allowance for credit losses of $249 and $163 respectively (primarily related to VIEs)         173,590     164,050  
         Other         45,489     50,792  
    Inventories         42,107     38,092  
    Costs and estimated earnings in excess of billings on uncompleted contracts 20,940     29,243  
    Prepaid expenses and other         94,023     59,173  
              Total current assets         600,854     547,122  
    Investment in unconsolidated companies          158,618     144,585  
    Deposits and other         89,021     75,383  
    Deferred income taxes         165,983     153,936  
    Property, plant and equipment, net ($3,261,700 and $3,271,248 related to VIEs, respectively) 3,497,915     3,501,886  
    Construction-in-process ($370,762 and $251,442 related to VIEs, respectively) 844,873     755,589  
    Operating leases right of use ($13,725 and $13,989 related to VIEs, respectively)         32,232     32,114  
    Finance leases right of use (none related to VIEs)         2,935     2,841  
    Intangible assets, net         295,225     301,745  
    Goodwill         151,291     151,023  
              Total assets         5,838,947     5,666,224  
           
    LIABILITIES AND EQUITY          
    Current liabilities:      
    Accounts payable and accrued expenses         201,354     234,334  
    Commercial paper (less deferred financing costs of $22 and $23, respectively)         99,978     99,977  
    Billings in excess of costs and estimated earnings on uncompleted contracts 52,198     23,091  
    Current portion of long-term debt:      
         Limited and non-recourse (primarily related to VIEs) 70,453     70,262  
         Full recourse         184,227     161,313  
         Financing Liability         5,905     4,093  
         Operating lease liabilities         3,657     3,633  
         Finance lease liabilities         1,451     1,375  
              Total current liabilities         619,223     598,078  
    Long-term debt, net of current portion:      
    Limited and non-recourse: (primarily related to VIEs and less deferred financing costs of $8,216 and $8,849, respectively) 560,824     578,204  
    Full recourse: (less deferred financing costs of $4,782 and $4,671, respectively) 957,027     822,828  
    Convertible senior notes (less deferred financing costs of $6,138 and $6,820, respectively) 470,299     469,617  
    Financing Liability         213,810     216,476  
    Operating lease liabilities         22,722     22,523  
    Finance lease liabilities         1,544     1,529  
    Liability associated with sale of tax benefits         144,081     152,292  
    Deferred income taxes         71,479     68,616  
    Liability for unrecognized tax benefits         6,481     6,272  
    Liabilities for severance pay         11,147     10,488  
    Asset retirement obligation         131,431     129,651  
    Other long-term liabilities         33,533     29,270  
         Total liabilities         3,243,601     3,105,844  
           
    Redeemable noncontrolling interest         9,573     9,448  
           
    Equity:      
    The Company’s stockholders’ equity:      
    Common stock, par value $0.001 per share; 200,000,000 shares authorized; 60,662,626 and 60,500,580 issued and outstanding as of March 31, 2025, and December 31, 2024, respectively         61     61  
    Additional paid-in capital         1,640,910     1,635,245  
    Treasury stock, at cost (258,667 shares held as of March 31, 2025, and December 31, 2024, respectively)         (17,964 )   (17,964 )
    Retained earnings         847,607     814,518  
    Accumulated other comprehensive income (loss)         (9,410 )   (6,731 )
    Total stockholders’ equity attributable to Company’s stockholders         2,461,204     2,425,129  
    Noncontrolling interest         124,569     125,803  
    Total equity         2,585,773     2,550,932  
    Total liabilities, redeemable noncontrolling interest and equity         5,838,947     5,666,224  


    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Reconciliation of EBITDA and Adjusted EBITDA
    For the Three Months Ended March 31, 2025, and 2024

    We calculate EBITDA as net income before interest, taxes, depreciation, amortization and accretion. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives not designated as hedging instruments; (ii) stock-based compensation, (iii) merger and acquisition transaction costs; (iv) gain or loss from extinguishment of liabilities; (v) cost related to a settlement agreement; (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration and storage activities; and (viii) other unusual or non-recurring items. We adjust for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of these measures will enhance an investor’s ability to evaluate our financial and operating performance. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. Our Board of Directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

    The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2025, and 2024:

      Three Months Ended March 31,  
      2025    2024   
      (Dollars in thousands)  
    Net income 41,034     40,350    
    Adjusted for:        
    Interest expense, net (including amortization of deferred financing costs) 33,160     29,129    
    Income tax provision (benefit) (3,795 )   (147 )  
    Adjustment to investment in unconsolidated companies: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla and Ijen 3,421     3,352    
    Depreciation, amortization and accretion 69,157     61,676    
    EBITDA 142,977     134,360    
    Mark-to-market (gains) or losses of derivative instruments 939     813    
    Stock-based compensation 4,911     4,769    
    Allowance for bad debts 26     —    
    Merger and acquisition transaction costs —     1,299    
    Settlement agreement 900     —    
    Write-off of unsuccessful exploration and storage activities 516     —    
    Adjusted EBITDA 150,269     141,241    


    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Reconciliation of Adjusted Net Income attributable to the Company’s stockholders and Adjusted EPS
    For the Three Months Ended March 31, 2025, and 2024

    Adjusted Net Income attributable to the Company’s stockholders and Adjusted diluted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributable to the Company’s stockholders and Adjusted diluted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

    The following tables reconciles Net income attributable to the Company’s stockholders and Adjusted diluted EPS for the three months ended March 31, 2025, and 2024.

      Three Months Ended March 31,  
      2025   2024  
      (Dollars in millions, except per share data)  
    GAAP Net income attributable to the Company’s stockholders 40.4   38.6  
    Write-off of unsuccessful exploration and storage activities 0.41   –  
    Merger and acquisition transaction costs –   1.0  
    Allowance for bad debts 0.02   –  
    Settlement agreement 0.71   –  
    Adjusted Net income attributable to the Company’s stockholders 41.5   39.6  
    GAAP diluted EPS 0.66   0.64  
    Write-off of unsuccessful exploration and storage activities 0.01   –  
    Merger and acquisition transaction costs –   0.02  
    Allowance for bad debts 0.00   –  
    Settlement agreement 0.01   –  
    Adjusted Diluted EPS ($) 0.68   0.65  
    Ormat Technologies Contact:
    Smadar Lavi
    VP Head of IR and ESG Planning & Reporting
    775-356-9029 (ext. 65726)
    slavi@ormat.com     		 Investor Relations Agency Contact:
    Joseph Caminiti or Josh Carroll
    Alpha IR Group
    312-445-2870
    ORA@alpha-ir.com 

    The MIL Network –

  • MIL-OSI: Best Fortune Teller Online For Accurate Fortune Telling In 2025 – The Psychic Experts

    Source: GlobeNewswire (MIL-OSI)

    New York City, May 07, 2025 (GLOBE NEWSWIRE) — Connect with the best fortune teller online offering accurate fortune telling and powerful insights about the future, love life, career path, and more.

    SAN FRANCISCO, CA, May 07, 2025 (GLOBE NEWSWIRE) – The psychic experts have just ranked the best fortune tellers of 2025 for those who want to know what the future holds for them. With one platform, people can connect with reliable online fortune-telling services and get answers to their pressing questions.

    Discover your destiny with the best fortune tellers online, offering accurate fortune telling that delivers clarity, truth, and trusted predictions.

    ⇒ Find out what your future holds – talk to the best fortune teller now!

    As spiritual curiosity and the demand for real psychics increase globally, the psychic experts are proud to be a trusted platform that helps users find a live fortune teller for psychic reading or fortune telling. The psychic experts are a reputable platform that reviews the best fortune teller websites. These websites provide their services through different mediums like live chat readings, video sessions, and phone consultations.

    Now, people can experience the best fortune teller online and receive accurate fortune telling with clear answers to their most important life questions.

    ⇒ Don’t guess your future – ask the best fortune teller!

    How The Psychic Experts Pick the Best Fortune Tellers

    After years of rating fortune tellers and psychic readers, the psychic experts have just launched their own curated guide of the most accurate and trusted fortune tellers of 2025.

    This new list is not just a deeper and more polished look at the best fortune tellers online, but also justifies the ratings using the five-pillar evaluation that goes like this;

    1. Accuracy & Intuition

    Do these psychic readers align their readings with events and real-life emotions? 

    2. Communication Style

    Are they communicating with clarity, empathy, and honesty?

    3. Reading Tools & Techniques

    What reading tools are being used for fortune-telling for the fortune-telling services? Tarot, runes, clairvoyance, astrology, or some other medium?

    4. Ratings & Reviews

    Do these fortune tellers have consistently high user satisfaction and offer meaningful results?

    5. Ethics & Energy

    Do they offer genuine spiritual service or try to upsell or manipulate their clients?

    Find peace of mind with the best fortune tellers specializing in accurate fortune telling for love, career, and personal growth.

    ⇒ The answers you need are here – talk to a verified fortune teller!

    What Is Fortune Telling and Why Does It Matter in 2025?

    Fortune telling is most often mystified more than it should be, which leads to misunderstandings, too. Fortune telling is just gaining insights about the future of a person or about unknown events via a range of metaphysical tools. 

    This is why many people sometimes have doubts about the authenticity of fortune-telling platforms. However, other people still believe that tarot cards, palm reading, astrology, or clairvoyant visions hold immense value, which is why they are always seeking a good fortune teller who will illuminate their path and offer clarity, compassion, and spiritual precision, and predict other information about their life and future.

    Get real answers from the best fortune tellers using accurate fortune telling to help guide your decisions and reveal your true path.

    ⇒ Real insights, real answers – start accurate fortune telling!

    2025 is filled with shifting perspectives, career transitions, uncertainty, and spiritual awakenings for many people. This increases the demand for genuine fortune tellers who offer spiritual advice or affirmation. However, many people are still cautious about whether online fortune-telling platforms can be misleading or fake. But all those doubts can be eliminated if a person checks out reviews and ratings of fortune tellers and their services before booking, or even better, approach them with an authentic platform like the-psychic-experts.com.

    In 2025, more and more people are turning to the online fortune teller world, as from the comfort of their homes, they can receive spiritual awakening and answers to their complex questions. A live fortune teller, for example, can offer genuine interpretations of someone’s life and future, dreams and events, and can help people with:

    • New relationships
    • Critical business and career decisions
    • Spiritual or karmic guidance
    • Emotional wounds from the past
    • Dreams and their interpretation
    • Complex situations arise with everyday choices.

    ⇒ Ask anything, get instant answers from the best fortune teller!

    Why Online Fortune Telling Is Booming In 2025

    With the rise of technology use and digital platforms, people turn to the internet for answers to everything. For people who want guidance from fortune tellers for their everyday purposes or for reading and spiritual consultations, a dependable platform is very necessary that carefully analyzes all the psychic reading platforms and provides unbiased ratings and reviews so that spiritual seekers can connect with genuine fortune tellers.

    The psychic experts have analyzed more than a hundred fortune-telling websites and have produced a database that claims to offer the utmost clarity and customer satisfaction. With the use of the psychic experts, users can be assured that the fortune-telling services they are going to get will be of the highest quality.

    ⇒ Wondering what’s next? Ask the best fortune teller now!

    The rise of fortune teller online services in 2025 is more prominent than ever. 

    Especially the online services, as they are convenient, anonymous, and 24/7 accessible. These online consultations and fortune-telling have revolutionized the way people seek spiritual consultations. From the comfort of their home, during a lunch break, or during a late-night moment of anxiety, platforms like the psychic experts are one umbrella under which all the seasoned fortune tellers instantly come together.

    There are many benefits of online fortune-telling in 2025, and some of them are:

    • Instant access to fortune-telling: There is no need to book weeks in advance.
    • Global Access: Connecting spiritual seekers with top psychics from all over the world.
    • A variety of Tools Include tarot, astrology, runes, numerology, and mediumship.
    • Free Trials & Readings: Many people like to try a free fortune teller before they pay online.
    • Flexible Pricing: Such online fortune-telling services are available for every budget and urgency level.
    • Authenticity: Verified ratings by the-psychic-experts.com help people avoid scams related to online fortune-telling services.

    If you still don’t know where to begin, you can try the free fortune teller online feature on the-psychic-experts.com. It is risk-free and 100% genuine and authentic.

    ⇒ Discover your destiny with the best fortune teller today!

    Why the Whole World Is Turning to Online Fortune Tellers in 2025

    Fortune telling comes in many shapes and forms. However, one of the most desired forms of fortune-telling is called “reading” and “spiritual consultation.” This type of fortune telling doesn’t rely on specific methods or devices; rather, the fortune teller gives their client predictions and advice that they claim to have come from visions or spirits.

    So, whether it’s love, career, family, or personal growth, every modern spiritual guidance-seeking individual is turning to fortune teller online services for answers to their worldly and otherworldly problems. 

    ⇒ Free fortune teller is live – ask your question now!

    However, not all readers out there are genuine or exceptional. While many websites and apps have made access to fortune tellers quite easy and affordable, it is not necessary that the said fortune tellers will always turn out to be authentic or real. This is why it is important to make sure that the quality of fortune that you are going to get will be of the highest level.

    The demand for virtual guidance through mobile apps and websites has driven the rise of online spiritual consultations, but along with it comes a jungle of unvetted services.

    This is where the psychic expert steps in. The online fortune tellers that they recommend have been in business for more than a decade. They help people who want to avail themselves of fortune-telling services get connected to qualified professionals in this field so that people can gain spiritual insights into their minds, bodies, and spirits.

    Discover the best fortune teller trusted for accurate fortune telling that reveals your destiny with clarity and truth.

    ⇒ Talk to the best fortune teller now and change your life!

    The readings provided by these spiritual professionals are very accurate because they go through an intensive screening process, which depends on detailed user review analysis and direct testing. The rigorous selection process is the reason why this platform is trustworthy and ensures that every online fortune teller it ranks is 100% experienced and effective.

    Unlike random listings or paid placements, the list of best fortune tellers by the psychic experts in 2025 list represents the top 1% of spiritual advisors. The reason for their authenticity is vigorous testing for accuracy, communication levels with their clients, and spiritual alignment.

    ⇒ Don’t wait – get accurate fortune telling instantly online!

    What Sets an Accurate Fortune Teller Apart in 2025?

    What sets an accurate fortune teller apart in 2025 is their intuitive abilities and the various divination techniques that they use to make predictions about a person’s future. These fortune tellers are able to interpret symbols, read patterns, and use tools like palm lines, tarot cards, or tea leaves in order to offer guidance and spiritual insights to individuals. With this guidance, these individuals can navigate their life journey with much clarity and in the right direction. 

    Fortune tellers also provide their clients with a better understanding of their future and correlate them with present circumstances so that the individual may make better decisions in their life, reflect on themselves, and grow personally, professionally, or spiritually.

    ⇒ Your answers are waiting – get a free fortune teller reading!

    The best fortune teller isn’t someone who claims to have psychic abilities. It’s someone who can translate the unseen energies into clear, empowering messages for their clients.

    The in-depth reviews by the psychic experts reveal the major qualities that set apart a truly accurate fortune teller in today’s world, and these are:

    • Clarity in readings – There is no room for vague perceptions
    • Emotional intelligence – alongside empathetic delivery
    • Accurate predictions that match the desires and circumstances of the client 
    • Methodical tools – Using tarot, astrology, or numerology for fortune-telling
    • Live interaction – Creating a real-time connection

    Many top-rated psychics offer free fortune teller online sessions or discounted first readings, which greatly help users test their authenticity before committing.

    ⇒ Free, fast, and accurate – talk to a fortune teller now!

    Top Features That Make a Fortune Teller Platform the Best

    Not all online fortune teller services provide the same high level of quality as the psychic experts. Here’s what sets the most validated and genuine platforms apart from others;

    Verified Reader Profiles
    All listed readers are verified and undergo proper background checks and psychic ability assessments to see if they are eligible to be featured.

    Satisfaction Guarantee
    Clients are 100% satisfied that they can receive refunds or session credits if it doesn’t go as planned, thus adding a factor of trust to the transaction.

    ⇒ Let the best fortune teller guide your next move!

    Real User Reviews
    Each psychic’s page has reviews from real users and transparent ratings, as well as client feedback and reading stats.

    Multiple Psychic Disciplines
    From astrology to numerology to clairvoyance, there are multiple disciplines on these platforms so that people can choose from their preferred method of Psychic reading.

    ⇒ Take control of your destiny – try accurate fortune telling!

    Most Popular Online Fortune Telling Methods in 2025

    If you want to reach out to a fortune teller in 2025, there are many easy ways to do so. Their availability in the digital world has also made it easy to reach out to spiritual readers via an electronic device, either with a phone call, an Android app, or a website like the-psychic-experts.com.

    Many online psychic platforms offer different ways to connect with fortune tellers. 

    Online fortune telling is an accessible spiritual art now, and through the following mediums, a person can easily contact a fortune teller anytime and anywhere in the world:

    • Live Chat Readings – Live chat readings are perfect for users who want quick answers and privacy.
    • Video Sessions – Video sessions help clients who want facial cues and a full, energetic presence during their session.
    • Phone Consultations – Phone consultations are both an old and modern method of reading, as they offer a direct, voice-to-voice connection.
    • Email Readings – Email readings are also perfect for those who prefer detailed, written records of spiritual insights.

    Each method of fortune telling has its own advantages, disadvantages, and energy levels, so the psychic experts recommend that users try more than one type of psychic reading medium to see which suits them best.

    ⇒ Get life-changing clarity from the best fortune teller!

    Most Popular Fortune Telling Services in 2025

    People wondering what the future holds for them or having trouble navigating their life’s twists seek help from reliable fortune tellers, who act like a compass in their complex lives and set them on a journey of self-discovery. The psychic experts review and reveal the most seasoned and genuine psychics, tarot readers, and astrologers, all of whom act as a beacon of insight in the day-to-day life of their spiritual seekers.

    While the-psychic-experts.com sheds light on the expert advisors that unveil the spiritual connections and energies associated with people that they didn’t even know existed, there are some pros and cons associated with online fortune-telling services.

    ⇒ Discover the truth now with the best fortune teller online!

    Pros

    One of the benefits of online fortune-telling services is that there are hundreds of psychic readers available online who are ready to help people who seek guidance from them. They have been present in this psychic industry for years, sometimes more than 2 or 3 decades. Many fortune-telling platforms have mobile applications, both for iOS and Android, that people use to access fortune-telling services from anywhere in the world. Psychic reading and fortune telling use a wide range of services and tools to make sure that the spiritual guidance they offer is accurate and genuine.

    Cons

    One of the drawbacks of online fortune-telling services is that a person may need to book psychic reading services in advance. However, the psychic experts also shed light on some psychic readers who offer a free initial consultation or demo for first-time users. Some people may also find fortune-telling services expensive.

    ⇒ Experience accurate fortune telling that actually helps!

    Different Types Of Fortune Telling Services In 2025

    Fortune telling is a very broad and intricate practice. It utilizes centuries of spiritual wisdom and intuitive insight and brings it right in front of those who seek this knowledge. Whether a person is out to seek clarity, direction, or a new way of life, fortune tellers can offer them multiple services that help them reconnect with their inner self and get spiritual guidance. Here are the most common types of services offered by fortune tellers in 2025;

    Fortune Telling

    This is the umbrella under which all other psychic and spiritual services fall. 

    Fortune telling is the navigation of signs, energies, and symbols to provide insight into the past, present, and future of a user. 

    It uses tools like crystal balls and runes and even utilizes more intuitive practices like clairvoyance to help seekers who want answers to their life’s uncertainties. 

    Fortune-telling sessions focus on personal concerns, such as love, family, money, health, and purpose, and another labyrinth of possibilities of life, and help individuals see the path more clearly, even when their whole life is chaotic.

    ⇒ Get real answers fast from a free fortune teller!

    Psychic Readings

    Psychic readings go beyond what the eyes can see. 

    Psychic readings use heightened intuition and extrasensory perception, such as cosmic airwaves, to pick up on energy fields, emotional vibrations, and spiritual signals around the person who came to the psychic. 

    The goal is not about prediction. Rather, it is about perspective. 

    A psychic can unveil hidden insights and help someone make much sense of their inner conflicts. Such psychics also help people understand emotional imbalances or navigate an important decision. 

    These psychic readings are very personal and can affect both grounding and illuminating the path of a person.

    Love Readings

    Relationships are one of the most common reasons people seek spiritual guidance. Sometimes, they are new, long-standing, but most of the time, complicated. 

    Love psychics or relationship-focused fortune tellers provide a way to understand emotional dynamics, compatibility, soulmate connections, and romantic obstacles between two people. 

    These readings peel away the emotional layers beneath a relationship and decode the feelings, intentions, and future potential of both partners involved.

    ⇒ Reveal your future with accurate fortune telling!

    Tarot Readings

    Tarot is a timeless art of psychic reading.

    It is an intuitive form of divination that reveals the past, present, and future. It uses a deck of 78 symbolic cards, with each card representing a theme, energy, or message. 

    A person will be told to pick a card, and then the reader will interpret the card based on their position and the question at hand.

    This method of psychic reading reveals complex narratives about the querent’s past, present, and future. These readings can clarify complex situations, offer insights into unseen influences, and help a person better understand their own emotions.

    Dream Analysis

    Dreams are productions of the subconscious mind, but they always try to tell us something.

    It is the subconscious mind’s way of speaking. Dream interpreters act as translators of dreams and nightmares. They can analyze symbols, emotions, and patterns in dreams and decode what the dream is trying to communicate. 

    Whether it’s a recurring dream or an unsettling nightmare, dream analysis reveals buried emotions, unresolved issues, or hidden desires. This psychic reading service even suggests the spiritual or prophetic meaning behind dreams and emotions that we experience in sleep.

    ⇒ Find real clarity fast – talk to the best fortune teller today!

    Astrology Readings

    Astrology is the study of planetary movements and their celestial alignments and how they influence life on Earth. 

    An astrologer can map out cosmic constellations and create a natal chart that uses the exact time, date, and location of a person’s birth to uncover hidden traits, tendencies, and life patterns. 

    So, whether a psychic reader is looking at your solar return for the year ahead, investigating your relationship compatibility with your partner, or understanding a difficult life phase, astrology readings provide a cosmic map for solving life’s rhythms.

    Career Forecasts

    Accurate fortune tellers can also help people align with their professional purpose. 

    These readers will utilize the power of intuition, energetic sensing, and sometimes tools like numerology or astrology to identify where someone’s talents truly lie. 

    Career readings are mostly booked by professionals who are dealing with work-related challenges, entrepreneurial possibilities, timing for job changes, or when a new opportunity arises, and they want to know whether it will bring success for them or not.

    ⇒ Ready for answers? Connect with a free fortune teller today!

    Numerology Readings

    Numerology is the study of the energetic vibrations of numbers.

    They govern how these numbers relate to human life. 

    Every letter in a person’s name and every digit in their birth date holds a numeric value that has immense power, and that reveals information about their character, strengths, life cycles, and karmic lessons. 

    Numerology readings uncover these hidden messages to provide clarity on their purpose and the timing of events in their life.

    Occult Readings

    For those drawn to esoteric mysteries and the deeper mystical truths, some fortune tellers offer readings that are rooted in the occult sciences. 

    These sessions are different from others and explore symbolism, ritual magic, elemental energies, spiritual entities, or ancient esoteric systems. 

    They’re mostly suited for individuals who have the power and the mental abilities to confront the hidden forces influencing their lives, as these types of readings often involve exploring the subconscious or spirit world through unique and sacred methods.

    ⇒ Trusted and accurate fortune telling – start now!

    Palmistry

    Also known as palm reading, Palmistry is the ancient art that involves analyzing the shape, lines, and texture of a person’s hand. These patterns help a reader gain insight into the personality, experiences, and future of their client. 

    Every person’s palm is said to carry their narrative. 

    The lifeline, heartline, and headline are just a few, among others, that are read in combination to reveal one’s emotional tendencies, mental strengths, career prospects, and life trajectory.

    Graphology

    Graphology, or handwriting analysis, involves reading the way a person writes. In this way, the psychic reader can gain insight into their personality, emotional state, and thought patterns. 

    Everything from the pressure of the pen to the slant of a signature has a meaning and could carry psychological significance. Graphologists interpret these details to reveal hidden truths that may not be expressed verbally.

    Paranormal Readings

    Paranormal psychics explore realms that lie beyond the normal range of perception. 

    These readings focus on spiritual encounters, supernatural events, or unexplained phenomena. 

    For individuals who believe that they’ve experienced things, like hauntings, spirit contact, or energetic disturbances, paranormal readings are a great way for readers to offer them validation and clarity around those otherworldly experiences.

    ⇒ Get your personalized reading from a certified fortune teller!

    Past Life Exploration

    Some readers claim that the soul undergoes multiple incarnations, and those incarnations echo from past lives and influence the present day. 

    Past life readers use intuitive impressions, visualizations, or regressions to explore a person’s soul history. 

    These readings can help a reader understand irrational fears, recurring dreams, deep attractions, or unexplained patterns that seem to bother their clients and follow them throughout their current lives.

    Picture Readings

    In picture readings, the fortune teller uses a photograph to measure the energy around a person.

    That photograph could be of a person, place, or object, and it acts as an energetic anchor. 

    The reader will go deep into the vibration within the image to reveal hidden truths, emotional energy, or unresolved spiritual connections. 

    This type of reading is very useful when someone wants insight into a person who cannot be physically present for the session.

    Faith-Based and Spiritual Readings

    For those people who come from religious or spiritual backgrounds, some readers offer insights into scriptural wisdom, prayer, or divine guidance. 

    These readings center around faith, life purpose, and spiritual alignment. 

    They may also involve messages that the readers say are received from higher beings or spiritual guardians, thus depending on the tradition and belief system that is being practiced by the spiritual seeker.

    ⇒ Ask anything – the best fortune teller is online now!

    Frequently Asked Questions

    What exactly does a fortune teller do?

    Fortune tellers interpret symbols, energies, or spiritual signs and guide where your life is headed. 

    They use tools like tarot cards, astrology charts, Palmistry, or intuitive abilities to gain insights into past experiences, current events, or future possibilities for their clients.

    Are fortune-telling services accurate?

    Fortune telling is less about prediction and more about perception. A fortune teller, even the most genuine one, cannot accurately predict every detail of your future with scientific precision. 

    However, what they can offer is intuitive guidance, emotional clarity, and fresh perspectives. This type of guidance can help you make better decisions. 

    The accuracy of a fortune-telling service often depends on the reader’s skill, your openness, and the type of questions you ask.

    What types of questions can I ask a fortune teller?

    You can ask about anything. You can ask a fortune teller about relationships, careers, finances, health, life purpose, spiritual growth, or emotional challenges. Anything that you want answers to.

    The more specific your question is, the better, insightful, and more resourceful your reading will be.

    Do I need to believe in the supernatural for a reading to work?

    Not at all. 

    You don’t need to believe in the supernatural if you want to avail of fortune-telling services.

    While some people do approach fortune telling from a spiritual or mystical perspective, others are just using it as a tool for self-reflection or decision-making. 

    All you need to do is come with an open mind and a willingness to explore new insights.

    How do I choose the right type of reading?

    Fortune telling or psychic reading is the safest and common method of reading.

    If you’re unsure, start with a general fortune-telling or psychic reading. 

    However, if you have a specific question in mind, like love, career, or past lives, then there are other types of services available. You can choose a reader who specializes in that field. 

    Many services also offer short and free trial readings, so you can test the reader before paying in full.  

    Is my information kept confidential?

    Yes. 

    Professional fortune tellers will keep all your information private as they respect your space and treat all readings as confidential. 

    So, feel free to share personal details or ask sensitive questions because your session is conducted with discretion and trust.

    How long does a typical reading last?

    Psychic reading times can vary from person to person. 

    While a basic session might last 10–20 minutes, if you need a more in-depth reading, your session can also extend up to 30–60 minutes or longer than that.

    Many platforms offer flexible time slots depending on your needs and budget.

    What’s the difference between a psychic and a fortune teller?

    The term “fortune teller” is a broad term. It includes many types of intuitive readers. 

    Psychics, on the other hand, use extrasensory perception (ESP) and other insights to tap into the unseen energies surrounding and associated with a person. 

    While all psychics can be fortunetelling tellers, not all fortune tellers are psychics.

    Can I get a reading online or over the phone?

    Absolutely. You can read online by availing yourself of the service of online fortune tellers.

    Many fortune tellers offer remote services through online chat, phone calls, or email. 

    These formats offer flexibility to people from all over the world, and you can be guaranteed that online fortune-telling services are just as effective as in-person readings. Platforms like the psychic experts allow you to connect with readers from anywhere in the world.

    How often should I get a reading?

    There’s no right or wrong answer.

    You can have readings as many times as you like or as your situation and personal needs demand. 

    Some people get readings regularly, some do it a few times a year, while others only seek fortune-telling services during major life events.

    Final Words

    Fortune’s telling’s beauty doesn’t just lie in the spiritual answers that you receive but in the questions that you come to ask. Fortune telling offers self-reflection, examines the patterns in your life, and gently nudges you toward personal empowerment.

    There is a wide array of services available in today’s world, from tarot and astrology to dream interpretation and past life exploration. However, fortune telling and psychic reading aren’t just limited to live demonstrations and face-to-face conversations. It is also available online via verified platforms like the-psychic-experts.com.

    These services aren’t just for the mystically inclined. 

    Every type of person, whether they are entrepreneurs, artists, parents, students, or skeptics, can turn to fortune tellers when their life isn’t going as planned or when they need guidance and clarity. 

    Ultimately, fortune-telling isn’t about meeting the unknown. It is about meeting yourself, acknowledging your intuition, accepting your energies, and getting the confidence to make the choices that are good for you. Fortune tellers may use a card draw, a birth chart, or a dream symbol to lead the person toward ultimate clarity and guidance.

    So, if you’ve ever felt the need to reach out to an authentic fortune teller, ask questions that are beyond the surface. They will help you seek guidance in life.

    The answers are not always black and white. Sometimes, they are murky and require input from your side as well. You might not walk away with clear answers, but fortune-telling is a much more powerful perspective and brings peace and a renewed sense of purpose to every person.

    So, if you’re ready to tap into clarity, check out the best online fortune tellers of 2025.

    Media Contact
    Company: The Psychic Experts
    Contact Person: Anthony C. Bedoya
    Email: support@the-psychic-experts.com
    Address: 1 Fremont St, Las Vegas, NV 89101, USA
    URL: https://the-psychic-experts.com/
    Phone: +1 414-203-2598
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    The MIL Network –

  • MIL-OSI: Symbotic Reports Second Quarter Fiscal Year 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    WILMINGTON, Mass., May 07, 2025 (GLOBE NEWSWIRE) — Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics technology for the supply chain, announced financial results for its second quarter of fiscal year 2025, which ended on March 29, 2025. Symbotic posted revenue of $550 million, a net loss of $21 million and adjusted EBITDA1 of $35 million for the second quarter of fiscal year 2025.

    By comparison, in the second quarter of fiscal year 2024, Symbotic had revenue of $393 million, a net loss of $55 million and adjusted EBITDA1 of $9 million.

    Cash and cash equivalents increased by $52 million from the prior quarter to $955 million at the end of the second quarter of fiscal year 2025.

    “Our execution has improved, and our margins expanded,” said Symbotic Chairman and Chief Executive Officer Rick Cohen. “With stronger project execution and a compelling roadmap of product innovation, we remain well-positioned to deliver increasing value to our stakeholders.”

    “Second quarter revenue grew by 40% year-over-year, and we delivered a record number of system starts and completes,” said Symbotic Chief Financial Officer, Carol Hibbard. “Looking forward, we remain committed to delivering improved execution while investing to support our future growth and innovation.”

    OUTLOOK

    For the third quarter of fiscal 2025, Symbotic expects revenue of $520 million to $540 million, and adjusted EBITDA2 of $26 million to $30 million.

    WEBCAST INFORMATION

    Symbotic will host a webcast today at 5:00 pm ET to discuss its second quarter of fiscal year 2025 results. The webcast link is: https://edge.media-server.com/mmc/go/Symbotic-Q2-2025.

    ABOUT SYMBOTIC

    Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world’s largest retail, wholesale, and food & beverage companies. Applying next-generation technology, high-density storage and machine learning to solve today’s complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce, Symbotic transforms the flow of goods and the economics of the supply chain for its customers. For more information, visit www.symbotic.com. 

    USE OF NON-GAAP FINANCIAL INFORMATION

    Symbotic reports its financial results in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”). This press release contains financial measures that are not recognized under U.S. GAAP (“non-GAAP financial measures”), including adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, and free cash flow. These non-GAAP financial measures have limitations as an analytical tool as they do not have a standardized meaning prescribed by U.S. GAAP. The non-GAAP financial measures Symbotic uses may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies and, therefore, are unlikely to be comparable to similar measures presented by other companies. Rather, these non-GAAP financial measures are provided as a supplement to corresponding U.S. GAAP measures to provide additional information regarding the results of operations from management’s perspective. Accordingly, non-GAAP financial measures should not be considered a substitute for, in isolation from, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. All non-GAAP financial measures presented in this press release are reconciled to their closest reported U.S. GAAP financial measures. Symbotic recommends that investors review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release, and not rely on any single financial measure to evaluate its business.

    Symbotic defines adjusted EBITDA, a non-GAAP financial measure, as GAAP net loss excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; business combination transaction expenses; equity method investment; internal control remediation; business transformation costs; fair value adjustments on strategic investments; restructuring charges; joint venture formation fees; equity financing transaction costs; and other infrequent items that may arise from time to time. Symbotic defines adjusted gross profit, a non-GAAP financial measure, as GAAP gross profit excluding the following items: depreciation, stock-based compensation, and restructuring charges. Symbotic defines adjusted gross profit margin, a non-GAAP financial measure, as adjusted gross profit divided by revenue. Symbotic defines free cash flow, a non-GAAP financial measure, as net cash provided by or used in operating activities less purchases of property and equipment and capitalization of internal use software development costs. In addition to Symbotic’s financial results determined in accordance with U.S. GAAP, Symbotic believes that adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, and free cash flow non-GAAP financial measures, are useful in evaluating the performance of Symbotic’s business because they highlight trends in its core business.

    FORWARD-LOOKING STATEMENTS

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, Symbotic’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events, backlog or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or similar expressions.

    Forward-looking statements include, but are not limited to, statements about the ability of or expectations regarding Symbotic to:

    • meet the technical requirements of existing or future supply agreements with its customers, including with respect to existing backlog;
    • expand its target customer base and maintain its existing customer base;
    • realize the benefits expected from the acquisition of Walmart’s Advanced Systems and Robotics business, the GreenBox joint venture, the Commercial Agreement with GreenBox, Symbotic’s acquisitions of developed technology intangible assets, and the commercial agreement with Walmart de México y Centroamérica;
    • realize its outlook, including its system gross margin;
    • anticipate industry trends;
    • maintain and enhance its system;
    • maintain the listing of the Symbotic Class A Common Stock on Nasdaq;
    • execute its growth strategy;
    • develop, design and sell systems that are differentiated from those of competitors;
    • execute its research and development strategy;
    • acquire, maintain, protect and enforce intellectual property;
    • attract, train and retain effective officers, key employees or directors;
    • comply with laws and regulations applicable to its business;
    • stay abreast of modified or new laws and regulations applying to its business;
    • successfully defend litigation;
    • issue equity securities in connection with future transactions;
    • meet future liquidity requirements and, if applicable, comply with restrictive covenants related to long-term indebtedness;
    • timely and effectively remediate any material weaknesses in its internal control over financial reporting;
    • anticipate rapid technological changes; and
    • effectively respond to general economic and business conditions.

    Forward-looking statements also include, but are not limited to, statements with respect to:

    • the future performance of Symbotic’s business and operations;
    • expectations regarding revenues, expenses, adjusted EBITDA and anticipated cash needs;
    • expectations regarding cash flow, liquidity and sources of funding;
    • expectations regarding capital expenditures;
    • the anticipated benefits of Symbotic’s leadership structure;
    • the effects of pending and future legislation, regulation and trade practices, including tariffs;
    • business disruption;
    • disruption to the business due to Symbotic’s dependency on certain customers;
    • increasing competition in the warehouse automation industry;
    • any delays in the design, production or launch of Symbotic’s systems and products;
    • the failure to meet customers’ requirements under existing or future contracts or customer’s expectations as to price or pricing structure;           
    • any defects in new products or enhancements to existing products;
    • the fluctuation of operating results from period to period due to a number of factors, including the pace of customer adoption of Symbotic’s new products and services and any changes in its product mix that shift too far into lower gross margin products; and
    • any consequences associated with joint ventures and legislative and regulatory actions and reforms.

    Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in Symbotic’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 4, 2024. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and Symbotic believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned not to place undue reliance on these forward-looking statements because of their inherent uncertainty and to appreciate the limited purposes for which they are being used by management. While we believe that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements speak only as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. Symbotic is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that Symbotic has filed or will file from time to time with the SEC.

    In addition to factors previously disclosed in Symbotic’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024 filed with the SEC on December 4, 2024 and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: failure to realize the benefits expected from the acquisition of Walmart’s Advanced Systems and Robotics business and risks related to the acquisition.

    Any financial projections in this press release or discussed in the webcast are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Symbotic’s control. While all projections are necessarily speculative, Symbotic believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this communication should not be regarded as an indication that Symbotic, or its representatives, considered or considers the projections to be a reliable prediction of future events.

    Annualized, projected and estimated numbers are not forecasts and may not reflect actual results.

    This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Symbotic and is not intended to form the basis of an investment decision in Symbotic. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.

    INVESTOR RELATIONS CONTACT

    Charlie Anderson
    Vice President, Investor Relations & Corporate Development
    ir@symbotic.com

    MEDIA INQUIRIES
    mediainquiry@symbotic.com

    Symbotic Inc. and Subsidiaries
    Consolidated Statements of Operations
     
      Three Months Ended   Six Months Ended
     (in thousands, except share and per share information) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Revenue:                  
    Systems $ 513,372     $ 464,059     $ 370,693     $ 977,431     $ 718,398  
    Software maintenance and support   6,685       5,525       2,566       12,210       4,735  
    Operation services   29,594       17,109       20,073       46,703       30,142  
    Total revenue   549,651       486,693       393,332       1,036,344       753,275  
    Cost of revenue:                  
    Systems   414,560       381,819       342,124       796,378       626,071  
    Software maintenance and support   2,095       1,884       1,936       3,979       3,662  
    Operation services   25,168       22,951       19,052       48,120       29,266  
    Total cost of revenue   441,823       406,654       363,112       848,477       658,999  
    Gross profit   107,828       80,039       30,220       187,867       94,276  
    Operating expenses:                  
    Research and development expenses   61,540       43,592       46,462       105,133       88,606  
    Selling, general, and administrative expenses   78,347       61,076       48,652       139,421       95,663  
    Total operating expenses   139,887       104,668       95,114       244,554       184,269  
    Operating loss   (32,059 )     (24,629 )     (64,894 )     (56,687 )     (89,993 )
    Other income, net   11,714       7,823       9,812       19,536       16,011  
    Loss before income tax and equity method investment   (20,345 )     (16,806 )     (55,082 )     (37,151 )     (73,982 )
    Income tax expense (benefit)   1,397       (150 )     252       1,248       80  
    Loss from equity method investment   (2,490 )     (1,564 )     —       (4,055 )     —  
    Net loss   (21,438 )     (18,520 )     (54,830 )     (39,958 )     (73,902 )
    Net loss attributable to noncontrolling interests   (17,513 )     (15,044 )     (46,021 )     (32,557 )     (62,257 )
    Net loss attributable to common stockholders $ (3,925 )   $ (3,476 )   $ (8,809 )   $ (7,401 )   $ (11,645 )
                       
    Loss per share of Class A Common Stock:                  
    Basic and Diluted $ (0.04 )   $ (0.03 )   $ (0.09 )     (0.07 )   $ (0.13 )
    Weighted-average shares of Class A Common Stock outstanding:                  
    Basic and Diluted   107,726,978       106,098,566       93,043,769       106,900,622       88,155,791  
                                           

    Symbotic Inc. and Subsidiaries
    Reconciliation of Non-GAAP Financial Measures

    The following table reconciles GAAP net loss to Adjusted EBITDA:

      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Net loss $ (21,438 )   $ (18,520 )   $ (54,830 )   $ (39,958 )   $ (73,902 )
    Interest income   (7,229 )     (7,769 )     (9,795 )     (14,998 )     (15,944 )
    Income tax expense (benefit)   (1,397 )     150       (252 )     (1,248 )     (80 )
    Depreciation and amortization   11,169       6,860       2,468       18,029       5,033  
    Stock-based compensation   47,962       28,741       34,726       76,703       64,188  
    Business Combination transaction expenses   3,298       3,802       —       7,100       —  
    Equity method investment   2,490       1,564       —       4,055       —  
    Internal control remediation   2,175       3,076       —       5,251       —  
    Business transformation costs   2,400       —       —       2,400       —  
    Fair value adjustments on strategic investments   (4,481 )     —       —       (4,481 )     —  
    Restructuring charges   (231 )     —       34,206       (231 )     34,206  
    Joint venture formation fees   —       —       —       —       1,089  
    Equity financing transaction costs   —       —       1,985       —       1,985  
    Adjusted EBITDA $ 34,718     $ 17,904     $ 8,508     $ 52,622     $ 16,575  
                                           

    The following table reconciles GAAP gross profit to Adjusted gross profit:

      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Gross profit $ 107,828     $ 80,039     $ 30,220     $ 187,867     $ 94,276  
    Depreciation   2,949       2,469       88       5,418       181  
    Stock-based compensation   11,264       3,709       5,156       14,973       8,587  
    Restructuring charges   (231 )     —       34,206       (231 )     34,206  
    Adjusted gross profit $ 121,810     $ 86,217     $ 69,670     $ 208,027     $ 137,250  
                                           
    Gross profit margin   19.6 %     16.4 %     7.7 %     18.1 %     12.5 %
    Adjusted gross profit margin   22.2 %     17.7 %     17.7 %     20.1 %     18.2 %
                                           

    The following table reconciles GAAP net cash provided by (used in) operating activities to free cash flow:

      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
                       
    Net cash provided by (used in) operating activities $ 269,575     $ 205,027     $ 21,072     $ 474,602     $         (9,078 )
    Purchases of property and equipment and capitalization of internal use software development costs   (20,560 )     (7,357 )     (2,871 )     (27,917 )             (5,864 )
    Free cash flow $ 249,015     $ 197,670     $ 18,201     $ 446,685     $         (14,942 )
                                           

    Symbotic Inc. and Subsidiaries
    Supplemental Common Share Information

    Total Common Shares issued and outstanding:

      March 29, 2025   September 28, 2024
    Class A Common Shares issued and outstanding 108,380,772   104,689,377
    Class V-1 Common Shares issued and outstanding 76,223,325   76,965,386
    Class V-3 Common Shares issued and outstanding 404,309,196   404,309,196
      588,913,293   585,963,959
           
    Symbotic Inc. and Subsidiaries
    Consolidated Balance Sheets
     
    (in thousands, except share data) March 29, 2025   September 28, 2024
    ASSETS
    Current assets:      
    Cash and cash equivalents $ 954,944     $ 727,310  
    Accounts receivable   137,562       201,548  
    Unbilled accounts receivable   160,248       218,233  
    Inventories   146,281       106,136  
    Deferred expenses   4,979       1,058  
    Prepaid expenses and other current assets   93,966       101,252  
    Total current assets   1,497,980       1,355,537  
    Property and equipment, net   123,706       97,109  
    Intangible assets, net   125,793       3,664  
    Goodwill   68,669       —  
    Equity method investment   85,323       81,289  
    Other assets   62,714       40,953  
    Total assets $ 1,964,185     $ 1,578,552  
    LIABILITIES AND EQUITY
    Current liabilities:      
    Accounts payable $ 220,027     $ 175,188  
    Accrued expenses and other current liabilities   166,269       165,644  
    Deferred revenue   1,086,297       676,314  
    Total current liabilities   1,472,593       1,017,146  
    Deferred revenue   8,152       129,233  
    Other liabilities   61,866       42,043  
    Total liabilities   1,542,611       1,188,422  
    Commitments and contingencies   —       —  
    Equity:      
    Class A Common Stock, 3,000,000,000 shares authorized, 108,380,772 and 104,689,377 shares issued and outstanding at March 29, 2025 and September 28, 2024, respectively   13       13  
    Class V-1 Common Stock, 1,000,000,000 shares authorized, 76,223,325 and 76,965,386 shares issued and outstanding at March 29, 2025 and September 28, 2024, respectively   7       7  
    Class V-3 Common Stock, 450,000,000 shares authorized, 404,309,196 shares issued and outstanding at March 29, 2025 and September 28, 2024   40       40  
    Additional paid-in capital   1,539,378       1,523,692  
    Accumulated deficit   (1,331,326 )     (1,323,925 )
    Accumulated other comprehensive loss   (2,698 )     (2,594 )
    Total stockholders’ equity   205,414       197,233  
    Noncontrolling interest   216,160       192,897  
    Total equity   421,574       390,130  
    Total liabilities and equity $ 1,964,185     $ 1,578,552  
                   
    Symbotic Inc. and Subsidiaries
    Consolidated Statements of Cash Flows
     
      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Cash flows from operating activities:                  
    Net loss $ (21,438 )   $ (18,520 )   $ (54,830 )   $ (39,958 )   $ (73,902 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                  
    Depreciation and amortization   12,279       7,645       3,155       19,924       6,352  
    Equity in net loss from equity method investment   4,055       —       —       4,055       —  
    Foreign currency (gains) losses, net   20       (32 )     (30 )     (12 )     (8 )
    Gain on investments   —       —       (8,745 )     —       (8,745 )
    Loss on disposal of assets   —       201       —       201       —  
    Provision for excess and obsolete inventory   292       688       34,206       980       34,276  
    Stock-based compensation   43,355       26,773       28,065       70,128       57,527  
    Gain from strategic investment fair value adjustment   (4,481 )     —       —       (4,481 )     —  
    Changes in operating assets and liabilities:                  
    Accounts receivable   (3,195 )     67,376       25,328       64,181       (58,461 )
    Inventories   (23,232 )     (10,425 )     (16,353 )     (33,657 )     (17,920 )
    Prepaid expenses and other current assets   89,491       10,317       (9,777 )     99,808       (42,430 )
    Deferred expenses   (1,757 )     (2,164 )     2,106       (3,921 )     (5,046 )
    Other assets   (6,400 )     (1,079 )     440       (7,479 )     (5,466 )
    Accounts payable   13,806       31,145       30,576       44,951       23,315  
    Accrued expenses and other current liabilities   (65,685 )     45,540       (17,600 )     (20,145 )     (1,884 )
    Deferred revenue   230,283       58,336       2,678       288,619       72,644  
    Other liabilities   2,182       (10,774 )     1,853       (8,592 )     10,670  
      Net cash provided by (used in) operating activities   269,575       205,027       21,072       474,602       (9,078 )
    Cash flows from investing activities:                  
    Purchases of property and equipment and capitalization of internal use software development costs   (20,560 )     (7,357 )     (2,871 )     (27,917 )     (5,864 )
    Proceeds from maturities of marketable securities   —       —       140,000       —       290,000  
    Purchases of marketable securities   —       —       (343 )     —       (48,660 )
    Acquisitions of strategic investments   —       (17,992 )     —       (17,992 )     —  
    Cash paid for business acquisitions   (200,000 )     —       —       (200,000 )     —  
    Net cash provided by (used in) investing activities   (220,560 )     (25,349 )     136,786       (245,909 )     235,476  
    Cash flows from financing activities:                  
    Payment for taxes related to net share settlement of stock-based compensation awards   —       (3,012 )     (3,125 )     (3,012 )     (3,181 )
    Net proceeds from issuance of common stock under employee stock purchase plan   3,233       —       3,435       3,233       3,435  
    Distributions to or on behalf of Symbotic Holdings LLC partners   (382 )     (850 )     —       (1,232 )     —  
    Proceeds from issuance of Class A Common Stock   —       —       257,985       —       257,985  
    Proceeds from exercise of warrants   —       —       —       —       158,702  
    Net cash provided by (used in) financing activities   2,851       (3,862 )     258,295       (1,011 )     416,941  
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash   50       (84 )     (13 )     (34 )     (15 )
    Net increase in cash, cash equivalents, and restricted cash   51,916       175,732       416,140       227,648       643,324  
    Cash, cash equivalents, and restricted cash – beginning of period   906,086       730,354       488,102       730,354       260,918  
    Cash, cash equivalents, and restricted cash – end of period $ 958,002     $ 906,086     $ 904,242     $ 958,002     $ 904,242  
                       
                       
      Three Months Ended   Six Months Ended
    (in thousands) March 29, 2025   December 28, 2024   March 30, 2024   March 29, 2025   March 30, 2024
    Reconciliation of cash, cash equivalents, and restricted cash:                  
    Cash and cash equivalents $ 954,944     $ 903,034     $ 901,382     $ 954,944     $ 901,382  
    Restricted cash   3,058       3,052       2,860       3,058       2,860  
    Cash, cash equivalents, and restricted cash $ 958,002     $ 906,086     $ 904,242     $ 958,002     $ 904,242  

    1 Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is a non-GAAP financial measure as defined below under “Use of Non-GAAP Financial Information.” See the tables below for reconciliations to net loss, the most comparable GAAP measure.

    2 Symbotic is not providing guidance for net loss, which is the most comparable GAAP financial measure to adjusted EBITDA, because information reconciling forward-looking adjusted EBITDA to net loss is unavailable to it without unreasonable effort. Symbotic is not able to provide reconciliations of adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of Symbotic’s control and/or cannot be reasonably predicted, such as the provision for stock-based compensation.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

    Key benefits with Sunrun Flex include:

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

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

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

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

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

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

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

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

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

    First Quarter Updates

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

    Key Operating Metrics

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

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

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

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

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

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

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

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

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

    Outlook

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

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

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

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

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

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

    First Quarter 2025 GAAP Results

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

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

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

    Financing Activities

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

    Conference Call Information

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

    About Sunrun

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

    Forward Looking Statements

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

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

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


    Key Operating and Financial Metrics

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

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

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

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

    Glossary of Terms

    Definitions for Volume-related Terms

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

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

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

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

    Customers represent aggregate Subscribers and Purchase Customers.

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

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

    Customer Additions represent Subscriber Additions plus Purchase Customer Additions.

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

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

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

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

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

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

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

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

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

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

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

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

    Creation Costs represent Aggregate Creation Costs divided by Subscriber Additions.

    Net Subscriber Value represents Subscriber Value less Creation Costs.

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

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

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

    Aggregate Subscriber Value represents Subscriber Value multiplied by Subscriber Additions.

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

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

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

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

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

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

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

    Definitions for Gross and Net Value from Existing Customer Base Terms

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

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

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

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

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

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

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

    Other Terms

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

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

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

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

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

    Per Share Operational Metrics

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

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

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

    Investor & Analyst Contacts:

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

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

    Media Contact:

    Wyatt Semanek
    Director, Corporate Communications
    press@sunrun.com

    The MIL Network –

  • MIL-OSI: SLR Investment Corp. Announces Quarter Ended March 31, 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Net Investment Income of $0.41 Per Share for Q1 2025;

    Declared Quarterly Distribution of $0.41 Per Share;

    Stable NAV/Strong Credit Quality

    NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) — SLR Investment Corp. (NASDAQ: SLRC) (the “Company”, “SLRC”, “we”, “us”, or “our”) today reported net investment income (“NII”) of $22.1 million, or $0.41 per share, for the first quarter of 2025. On May 7, 2025, the Board declared a quarterly distribution of $0.41 per share payable on June 27, 2025, to holders of record as of June 13, 2025.

    As of March 31, 2025, net asset value (“NAV”) was $18.16 per share, compared to $18.20 per share at December 31, 2024.

    “We remain pleased with the composition, quality, and performance of our portfolio on an absolute and relative basis in the first quarter,” said Michael Gross, Co-CEO of SLR Investment Corp. “While the ultimate impact from tariffs remains highly uncertain, we are actively engaged with our portfolio companies and believe that our portfolio, which is heavily collateralized by working capital assets and focused on domestic services businesses, is well positioned for the current environment.”   

    “We are seeing a significant and growing pipeline of asset-based lending investment opportunities driven by both the market dislocation and the retreat of traditional bank lenders which allows us to remain selective while investing in structures that are designed to be more resilient in today’s uncertain environment,” said Bruce Spohler, Co-CEO of SLR Investment Corp. “With conservative portfolio net leverage near the low-end of our target range and available capital of over $800 million, SLRC is well positioned to take advantage of our attractive investment pipeline amidst continued market volatility.”

    FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED MARCH 31, 2025:

    At March 31, 2025:

    Investment Portfolio fair value: $2.0 billion | Comprehensive Investment Portfolio(1) fair value: $3.1 billion
    Non-accruals: 0.4% at fair value, 0.6% at cost of Investment Portfolio
    Net assets: $990.5 million or $18.16 per share
    Leverage: 1.04x net debt-to-equity

    Operating Results for the Quarter Ended March 31, 2025:

    Net investment income: $22.1 million or $0.41 per share
    Net realized and unrealized losses: $2.2 million or $0.04 per share
    Net increase in net assets from operations: $19.9 million or $0.37 per share

    Comprehensive Investment Portfolio Activity(2)for the Quarter Ended March 31, 2025:

    Investments made: $361.3 million
    Investments prepaid and sold: $390.6 million

    (1) The Comprehensive Investment Portfolio for the quarter ended March 31, 2025 is comprised of SLRC’s investment portfolio and SLR Credit Solutions’ (“SLR-CS”) portfolio, SLR Equipment Finance’s (“SLR-EF”) portfolio, Kingsbridge Holdings, LLC’s (“KBH”) portfolio, SLR Business Credit’s (“SLR-BC”) portfolio, SLR Healthcare ABL’s (“SLR-HC ABL”) portfolio owned by the Company (collectively, the Company’s “Commercial Finance Portfolio Companies”), and the senior secured loans held by the SLR Senior Lending Program LLC (“SSLP”) attributable to the Company, and excludes the Company’s fair value of the equity interests in SSLP and the Commercial Finance Portfolio Companies and also excludes SLRC’s loans to KBH, SLR-EF, and SLR HC ABL.
    (2) Comprehensive Investment Portfolio activity for the quarter ended March 31, 2025, includes investment activity of the Commercial Finance Portfolio Companies and SSLP attributable to the Company.

    Comprehensive Investment Portfolio

    Portfolio Activity

    During the three months ended March 31, 2025, SLRC had Comprehensive Investment Portfolio originations of $361.3 million and repayments of $390.6 million across the Company’s four investment strategies:

    For the Quarter Ended March 31, 2025
    ($mm)
               
    Asset Class Sponsor
    Finance    (1)    		 Asset-based
    Lending(2)    		 Equipment
    Finance(3)    		 Life Science
    Finance    		 Total
    Comprehensive Investment
    Portfolio Activity
    Originations $44.8   $163.8 $128.1   $24.6   $361.3  
    Repayments /
    Amortization    		 $73.0   $98.9 $173.5   $45.2   $390.6  
    Net Portfolio
    Activity    		 ($28.2)   $64.9 $(45.4)   ($20.6)   ($ 29.3)  

    (1) Sponsor Finance refers to cash flow loans to sponsor-owned companies including cash flow loans held in SSLP attributable to the Company.
    (2) Includes SLR-CS, SLR-BC and SLR-HC ABL’s portfolios, as well as asset-based loans on the Company’s balance sheet.
    (3) Includes SLR-EF’s portfolio and equipment financings on the Company’s balance sheet and Kingsbridge Holdings’ (KBH) portfolio.

    Comprehensive Investment Portfolio Composition

    The Comprehensive Investment Portfolio is diversified across approximately 940 unique issuers, operating in over 105 industries, and resulting in an average exposure of $3.2 million or 0.1% per issuer. As of March 31, 2025, 98.2% of the Company’s Comprehensive Investment Portfolio was invested in senior secured loans of which 96.4% was held in first lien senior secured loans. Second lien ABL exposure was 1.6% and second lien cash flow exposure was 0.2% of the Comprehensive Investment Portfolio as of March 31, 2025.

    SLRC’s Comprehensive Investment Portfolio composition by asset class as of March 31, 2025 was as follows:

    Comprehensive Investment Portfolio Composition
    (at fair value)    		 Amount Weighted Average Asset Yield(5)
    ($mm) %
    Senior Secured Investments      
    Cash Flow Loans (Sponsor Finance)(1) $ 588.0 19.3 % 10.4 %
    Asset-Based Loans(2) $ 1,121.3 36.7 % 13.8 %
    Equipment Financings(3) $ 1,102.6 36.1 % 11.5 %
    Life Science Loans $ 186.8 6.1 % 12.5 %
    Total Senior Secured Investments $ 2,998.7 98.2 % 12.2 %
    Equity and Equity-like Securities $ 54.2 1.8 %  
    Total Comprehensive Investment Portfolio $ 3,052.9 100.0 %  
    Floating Rate Investments(4) $ 1,872.7 61.8 %  
    First Lien Senior Secured Loans $ 2,942.9 96.4 %  
    Second Lien Senior Secured
    Asset-Based Loans    		 $ 48.0 1.6 %  
    Second Lien Senior Secured
    Cash Flow Loans    		 $ 7.8 0.2 %  

    (1) Includes cash flow loans held in the SSLP attributable to the Company and excludes the Company’s equity investment in SSLP.
    (2) Includes SLR-CS, SLR-BC, and SLR-HC ABL’s portfolios, as well as asset-based loans on the Company’s balance sheet, and excludes the Company’s equity investments in each of SLR-CS, SLR-BC, and SLR-HC ABL.
    (3) Includes SLR-EF’s portfolio and equipment financings on the Company’s balance sheet and Kingsbridge Holdings’ (KBH) portfolio. Excludes the Company’s equity and debt investments in each of SLR-EF and KBH.
    (4) Floating rate investments are calculated as a percent of the Company’s income-producing Comprehensive Investment Portfolio. The majority of fixed rate loans are associated with SLR-EF and leases held by KBH. Additionally, SLR-EF and KBH seek to match-fund their fixed rate assets with fixed rate liabilities.
    (5) The weighted average asset yield for income producing cash flow, asset-based and life science loans on balance sheet is based on a yield to maturity calculation. The weighted average asset yield calculation for Life Science loans includes the amortization of expected exit/success fees. The weighted average yield for on-balance sheet equipment financings is calculated based on the expected average life of the investments. The weighted average asset yield for SLR-CS asset-based loans is an Internal Rate of Return (IRR) calculated using actual cash flows received and the expected terminal value. The weighted average asset yield for SLR-BC and SLR-HC ABL represents total interest and fee income for the three-month period ended on March 31, 2025 against the average portfolio over the same fiscal period, annualized. The weighted average asset yield for SLR-EF represents total interest and fee income for the three-month period ended on March 31, 2025 compared to the portfolio as of March 31, 2025, annualized. The weighted average yield for the KBH equipment leasing portfolio represents the blended yield from the company’s 1st lien loan on par value and the annualized dividend yield on the cost basis of the company’s equity investment as of March 31, 2025.

    SLR Investment Corp. Portfolio

    Asset Quality

    As of March 31, 2025, 99.6% of SLRC’s portfolio was performing on a fair value basis and 99.4% on a cost basis, with only one investment on non-accrual.

    The Company puts its largest emphasis on risk control and credit performance. On a quarterly basis, or more frequently if deemed necessary, the Company formally rates each portfolio investment on a scale of one to four, with one representing the least amount of risk.

    As of March 31, 2025, the composition of our investment portfolio, on a risk ratings basis, was as follows:

    Internal Investment Rating Investments at Fair Value ($mm) % of Total Portfolio
    1 $622.3 31.0%  
    2 $1,334.9 66.6%  
    3 $39.4 2.0%  
    4 $7.8 0.4%  

    Investment Income Contribution by Asset Class

    Investment Income Contribution by Asset Class(1)
    ($mm)
    For the Quarter
    Ended:    		 Sponsor
    Finance    		 Asset-based
    Lending    		 Equipment
    Finance    		 Life Science
    Finance    		 Total
    3/31/2025 $17.0   $19.5   $9.7   $7.0   $53.2  
    % Contribution   32.0%     36.7%     18.2%     13.1%     100.0%  

    (1) Investment Income Contribution by Asset Class includes: interest income/fees from Sponsor Finance (cash flow) loans on balance sheet and distributions from SSLP; income/fees from asset-based loans on balance sheet and distributions from SLR-CS, SLR-BC, SLR-HC ABL; income/fees from equipment financings and distributions from SLR-EF and distributions from KBH; and income/fees from life science loans on balance sheet.

    SLR Senior Lending Program LLC (SSLP)

    As of March 31, 2025, the Company and its 50% partner, Sunstone Senior Credit L.P., had contributed combined equity capital of $95.8 million of a total $100 million equity commitment to the SSLP. At quarter end, SSLP had total commitments of $177.0 million at par and total funded portfolio investments of $165.6 million at fair value, consisting of floating rate senior secured loans to 31 different borrowers and an average investment of $5.3 million per borrower. This compares to funded portfolio investments of $178.7 million at fair value across 32 different borrowers at December 31, 2024. During the quarter ended March 31, 2025, SSLP invested $6.6 million in 6 portfolio companies and had $19.9 million of investments repaid.

    In Q1 2025, the Company earned income of $1.9 million from its investment in the SSLP, representing an annualized yield of 15.7% on the cost basis of the Company’s investment, consistent with the annualized yield in Q4 2024.

    SLR Investment Corp.’s Results of Operations Quarter Over Quarter   

    Investment Income

    For the fiscal quarters ended March 31, 2025, and 2024, gross investment income totaled $53.2 million and $58.1 million, respectively. The decrease in gross investment income for the year over year three-month periods was primarily due to a decrease in the size of the income producing investment portfolio as well as a decrease in index rates.

    Expenses

    SLRC’s net expenses totaled $31.1 million and $34.2 million, respectively, for the fiscal quarters ended March 31, 2025, and 2024. The decrease in expenses for the year-over-year three-month periods was primarily due to lower interest expense from a decrease in average borrowings as well as a decrease in the index rates on borrowings.

    SLRC’s investment adviser agreed to waive incentive fees resulting from income earned due to the accretion of the purchase price discount allocated to investments acquired in the Company’s merger with SLR Senior Investment Corp., which closed on April 1, 2022. For the fiscal quarters ended March 31, 2025 and 2024, $2 thousand and $46 thousand, respectively, of such performance-based incentive fees were waived.

    Net Investment Income

    SLRC’s net investment income totaled $22.1 million and $23.9 million, or $0.41 and $0.44, per average share, respectively, for the fiscal quarters ended March 31, 2025, and 2024.

    Net Realized and Unrealized Loss

    Net realized and unrealized gain (loss) for the fiscal quarters ended March 31, 2025 and 2024 totaled $(2.2) million and $4.0 million, respectively.

    Net Increase in Net Assets Resulting from Operations

    For the fiscal quarters ended March 31, 2025, and 2024, the Company had a net increase in net assets resulting from operations of $19.9 million and $27.9 million, respectively. For the same periods, earnings per average share were $0.37 and $0.51, respectively.

    Capital and Liquidity

    Credit Facilities

    As of March 31, 2025, the Company had $549.3 million drawn on $970 million of total commitments available on its revolving credit facilities and $140 million of term loans outstanding.

    Unsecured Debt

    On February 18, 2025, the Company closed a private offering of $50.0 million of unsecured notes due 2028 with a fixed rate of interest of 6.14% and a maturity date of February 18, 2028. The issuance of notes in the first quarter followed the $49.0 million issuance of unsecured notes in the fourth quarter of 2024 with a maturity date of December 16, 2027. As of March 31, 2025, the Company had $359 million of unsecured notes outstanding and the company does not have any near-term refinancing obligations with the next maturity occurring in December 2026.

    Leverage

    As of March 31, 2025, the Company’s net debt-to-equity ratio was 1.04x compared to 1.03x at December 31, 2024 and 1.16x at March 31, 2024. The Company’s target range is 0.9x to 1.25x net debt-to-equity.

    Available Capital

    As of March 31, 2025, including anticipated available borrowing capacity at the SSLP and our specialty finance portfolio companies, subject to borrowing base limits, SLRC, SSLP and our specialty finance portfolio companies had over $800 million of available capital in the aggregate.

    Unfunded Commitments

    As of March 31, 2025, excluding commitments of $72.4 million to SLR-CS, SLR-BC, SLR-HC ABL, SLR Equipment Finance, and SSLP, over which the Company has discretion to fund, the Company had unfunded commitments of approximately $196.2 million.

    Subsequent Events

    On May 7, 2025, the Board declared a quarterly distribution of $0.41 per share payable on June 27, 2025, to holders of record as of June 13, 2025.

    Conference Call and Webcast Information

    The Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Thursday, May 8, 2025. All interested parties may participate in the conference call by dialing (800) 225-9448 approximately 5-10 minutes prior to the call, international callers should dial (203) 518-9708. Participants should reference SLR Investment Corp. and Conference ID: SLRC1Q25. A telephone replay will be available until May 22, 2025 and can be accessed by dialing (800) 925-9527. International callers should dial (402) 220-5388.

    This conference call will also be broadcast live over the Internet and can be accessed by all interested parties from the Event Calendar within the “Investors” tab of SLR Investment Corp.’s website at https://slrinvestmentcorp.com/Investors/Event-Calendar. Please register online prior to the start of the call. For those who are not able to listen to the broadcast live, a replay of the webcast will be available soon after the call.

     

    SLR INVESTMENT CORP.
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
    (in thousands, except share and per share amounts)
     

    Assets

    		 March 31, 2025
    (unaudited)    		 December31,
    2024
    Investments at fair value:        
    Companies less than 5% owned (cost: $1,015,960 and $1,019,357, respectively) $ 1,021,278   $ 1,027,457
    Companies 5% to 25% owned (cost: $105,224 and $103,655, respectively)   89,490     89,945
    Companies more than 25% owned (cost: $918,904 and $916,554, respectively)   893,631     888,232
    Cash   19,931     16,761
    Cash equivalents (cost: $447,074 and $397,510, respectively)   447,074     397,510
    Dividends receivable   17,423     15,375
    Interest receivable   11,645     11,993
    Receivable for investments sold   1,336     1,573
    Prepaid expenses and other assets   1,164     571
    Total assets $ 2,502,972   $ 2,449,417
    Liabilities    
    Debt ($1,048,260 and $1,041,093 face amounts, respectively, reported net of unamortized debt issuance costs of $8,848 and $9,399, respectively.

    $

    1,039,412

    		  

    $

    1,031,694
    Payable for investments and cash equivalents purchased   447,074     397,510
    Management fee payable   7,513     7,739
    Performance-based incentive fee payable   5,523     5,920
    Interest payable   6,040     7,836
    Administrative services payable   4,084     3,332
    Other liabilities and accrued expenses   2,841     2,460
    Total liabilities $ 1,512,487   $ 1,456,491
    Net Assets  
    Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares  
    authorized, respectively, and 54,554,634 and 54,554,634 shares issued and  
    outstanding, respectively $ 546     $ 546  
    Paid-in capital in excess of par   1,117,606       1,117,606  
    Accumulated distributable net loss   (127,667 )     (125,226 )
    Total net assets $ 990,485     $ 992,926  
    Net Asset Value Per Share $ 18.16     $ 18.20  
     
    SLR INVESTMENT CORP.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share amounts)
       
      Three months ended
      March 31, 2025   March 31, 2024  
    INVESTMENT INCOME:          
    Interest:    
    Companies less than 5% owned $ 29,174     $ 41,004  
    Companies 5% to 25% owned   1,224       831  
    Companies more than 25% owned   3,235       3,338  
    Dividends:    
    Companies 5% to 25% owned   770       —  
    Companies more than 25% owned   17,796       12,227  
    Other income:    
    Companies less than 5% owned   874       574  
    Companies more than 25% owned   105       125  
    Total investment income   53,178       58,099  
    EXPENSES:    
    Management fees   7,513       7,882  
    Performance-based incentive fees   5,526       5,952  
    Interest and other credit facility expenses   15,840       18,188  
    Administrative services expense   1,361       1,376  
    Other general and administrative expenses   835       895  
    Total expenses   31,075       34,293  
    Performance-based incentive fees waived   (2 )     (46 )
    Net expenses   31,073       34,247  
       Net investment income $ 22,105     $ 23,852  
    REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS:
    Net realized gain (loss) on investments and cash equivalents (companies less than 5% owned) $ (422)     $ 135  
    Net change in unrealized gain (loss) on investments and cash equivalents:    
    Companies less than 5% owned   (2,780 )     3,484  
    Companies 5% to 25% owned   (2,027 )     1  
    Companies more than 25% owned   3,050       399  
    Net change in unrealized gain (loss) on investments and cash equivalents   (1,757 )     3,884  
    Net realized and unrealized gain (loss) on investments and cash equivalents   (2,179 )     4,019  
    NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 19,926     $ 27,871  
    EARNINGS PER SHARE $ 0.37     $ 0.51  
     

    About SLR Investment Corp.

    SLR Investment Corp. is a closed-end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. A specialty finance company with expertise in several niche markets, the Company primarily invests in leveraged, U.S. upper middle market companies in the form of cash flow, asset-based, and life sciences senior secured loans.

    Forward-Looking Statements

    Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: the Company’s access to deal flow and its ability to take advantage of attractive investment opportunities; the market environment and its impact on the business prospects of SLRC and the prospects of SLRC’s portfolio companies; prospects for growth of SLRC’s investment pipeline and resiliency of investing structures; the quality of, and the impact on the performance of SLRC from the investments that SLRC has made and expects to make; and the anticipated availability of capital. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with: (i) changes or potential disruptions in SLRC’s operations, the economy, financial markets and political environment, including those caused by tariffs and trade disputes with other countries, inflation and changing interest rates; (ii) risks associated with possible disruption in the operations of SLRC or the economy generally due to terrorism, war or other geopolitical conflicts, natural disasters, pandemics or cybersecurity incidents; (iii) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (iv) conditions in SLRC’s operating areas, particularly with respect to business development companies or regulated investment companies; and (v) other considerations that may be disclosed from time to time in SLRC’s publicly disseminated documents and filings. SLRC has based the forward-looking statements included in this press release on information available to it on the date of this press release, and SLRC assumes no obligation to update any such forward-looking statements. Although SLRC undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that it may make directly to you or through reports that SLRC in the future may file with the Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

    Contact
    SLR Investment Corp.
    Investor Relations
    slrinvestorrelations@slrcp.com | (646) 308-8770

    The MIL Network –

  • MIL-OSI: Magnite Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Contribution ex-TAC(1)Grows 12% Year-Over-Year

    Contribution ex-TAC(1)from CTV Grows 15% Year-Over-Year

    Adjusted EBITDA(1)Grows 47% Year-Over-Year

    NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) — Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, today reported its results of operations for the quarter ended March 31, 2025.

    Q1 2025 Highlights:

    • Revenue of $155.8 million, up 4% year-over-year
    • Contribution ex-TAC(1) of $145.8 million, up 12% year-over-year
    • Contribution ex-TAC(1) attributable to CTV of $63.2 million, up 15% year-over-year, exceeded guidance of $61.0 to $63.0 million
    • Contribution ex-TAC(1) attributable to DV+ of $82.6 million, up 9% year-over year, exceeded guidance of $79.0 to $81.0 million
    • Net loss of $9.6 million, or $0.07 per share, compared to a net loss of $17.8 million, or $0.13 per share for Q1 2024
    • Adjusted EBITDA(1) of $36.8 million, up 47% year-over-year, representing a 25% Adjusted EBITDA margin(2), compared to Adjusted EBITDA(1) of $25.0 million or a 19% margin in Q1 2024
    • Non-GAAP earnings per share(1) of $0.12, compared to non-GAAP earnings per share(1) of $0.05 for Q1 2024
    • Operating cash flow(3) of $18.2 million

    Expectations:

    • Total Contribution ex-TAC(1) for Q2 2025 to be between $154 million and $160 million
    • Contribution ex-TAC(1) attributable to CTV for Q2 2025 to be between $70 million and $72 million
    • Contribution ex-TAC(1) attributable to DV+ for Q2 2025 to be between $84 million and $88 million
    • Adjusted EBITDA operating expenses(4) for Q2 2025 to be between $110 million and $112 million
    • Performance in Q2 to date has been in line with prior expectations; however, due to tariff-driven economic uncertainty, not reaffirming full-year 2025 expectations

    “We beat the high end of our CTV and DV+ top line guidance in the first quarter, with significant outperformance in Adjusted EBITDA. Our performance has remained strong to start Q2. However, we have taken a more cautious approach to our outlook and guidance due to tariff-driven economic uncertainty. In CTV, we continue to see strong programmatic adoption and are very pleased with the growth of Netflix and their continued rollout of programmatic globally. On the DV+ side of the business, we applaud the monumental antitrust ruling against Google. This ruling and its ensuing remedies have the potential to radically transform the open internet and create a more level playing field, which could significantly increase our monetization opportunities and market share, possibly as soon as next year,” said Michael G. Barrett, CEO of Magnite.

    First quarter 2025 Results Summary        
    (in millions, except per share amounts and percentages)        
      Three Months Ended
      March 31, 2025   March 31, 2024   Change
    Favorable/ (Unfavorable)
    Revenue $155.8   $149.3   4%
    Gross profit $93.0   $83.4   11%
    Contribution ex-TAC(1) $145.8   $130.6   12%
    Net loss ($9.6)   ($17.8)   46%
    Adjusted EBITDA(1) $36.8   $25.0   47%
    Adjusted EBITDA margin(2)   25%   19%   6 ppt
    Basic and diluted net loss per share ($0.07)   ($0.13)   46%
    Non-GAAP earnings per share(1) $0.12   $0.05   140%
    Footnotes:
    (1 ) Contribution ex-TAC, Adjusted EBITDA, and non-GAAP earnings per share are non-GAAP financial measures. Please see the discussion in the section called “Non-GAAP Financial Measures” and the reconciliations included at the end of this press release.
    (2 ) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Contribution ex-TAC.
    (3 ) Operating cash flow is calculated as Adjusted EBITDA less capital expenditures.
    (4 ) Adjusted EBITDA operating expenses is calculated as Contribution ex-TAC less Adjusted EBITDA.

    First quarter 2025 Results Conference Call and Webcast:

    The Company will host a conference call on May 7, 2025 at 1:30 PM (PT) / 4:30 PM (ET) to discuss the results for its first quarter of 2025.

    Live conference call  
    Toll free number: (844) 875-6911 (for domestic callers)
    Direct dial number: (412) 902-6511 (for international callers)
    Passcode: Ask to join the Magnite conference call
    Simultaneous audio webcast: http://investor.magnite.com under “Events and Presentations”
       
    Conference call replay  
    Toll free number: (877) 344-7529 (for domestic callers)
    Direct dial number: (412) 317-0088 (for international callers)
    Passcode: 4251284
    Webcast link: http://investor.magnite.com under “Events and Presentations”

    About Magnite
    We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world’s leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

    Forward-Looking Statements:

    This press release and management’s prepared remarks during the conference call referred to above include, and management’s answers to questions during the conference call may include, forward-looking statements, including statements based upon or relating to our expectations, assumptions, estimates, and projections. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “anticipate,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms, and similar expressions. Forward-looking statements may include, but are not limited to, statements concerning the Company’s guidance or expectations with respect to future financial performance; acquisitions by the Company, or the anticipated benefits thereof; macroeconomic conditions or concerns related thereto; the growth of ad-supported programmatic connected television (“CTV”); our ability to use and collect data to provide our offerings; the scope and duration of client relationships; the fees we may charge in the future; key strategic objectives; anticipated benefits of new offerings; business mix; sales growth; benefits from supply path optimization; our ability to adapt to advancements in artificial intelligence; the development of identity solutions; client utilization of our offerings; the impact of requests for discounts, rebates, or other fee concessions; our competitive differentiation; our market share and leadership position in the industry; market conditions, trends, and opportunities; certain statements regarding future operational performance measures; and other statements that are not historical facts. These statements are not guarantees of future performance; they reflect our current views with respect to future events and are based on assumptions and estimates and subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements.

    We discuss many of these risks and additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this press release and in other filings we have made and will make from time to time with the Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings. These forward-looking statements represent our estimates and assumptions only as of the date of the report in which they are included. Unless required by federal securities laws, we assume no obligation to update any of these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated, to reflect circumstances or events that occur after the statements are made. Without limiting the foregoing, any guidance we may provide will generally be given only in connection with quarterly and annual earnings announcements, without interim updates, and we may appear at industry conferences or make other public statements without disclosing material nonpublic information in our possession. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. Investors should read this press release and the documents that we reference in this press release and have filed or will file with the SEC completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

    Non-GAAP Financial Measures and Operational Measures:

    In addition to our GAAP results, we review certain non-GAAP financial measures to help us evaluate our business on a consistent basis, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in our technology and development and sales and marketing, and assess our operational efficiencies. These non-GAAP financial measures include Contribution ex-TAC, Adjusted EBITDA, Non-GAAP Income (Loss), and Non-GAAP Earnings (Loss) per share, each of which is discussed below.

    These non-GAAP financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. You are encouraged to evaluate these adjustments, and review the reconciliation of these non-GAAP financial measures to their most comparable GAAP measures, and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies. See “Reconciliation of Revenue to Gross Profit to Contribution ex-TAC,” “Reconciliation of net loss to Adjusted EBITDA,” “Reconciliation of net loss to non-GAAP income,” and “Reconciliation of GAAP loss per share to non-GAAP earnings per share” included as part of this press release.

    We do not provide a reconciliation of our non-GAAP financial expectations for Contribution ex-TAC and Adjusted EBITDA, or a forecast of the most comparable GAAP measures, because the amount and timing of many future charges that impact these measures (such as amortization of future acquired intangible assets, acquisition-related charges, foreign exchange (gain) loss, net, stock-based compensation, impairment charges, provision or benefit for income taxes, and our future revenue mix), which could be material, are variable, uncertain, or out of our control and therefore cannot be reasonably predicted without unreasonable effort, if at all. In addition, we believe such reconciliations or forecasts could imply a degree of precision that might be confusing or misleading to investors.

    Contribution ex-TAC:

    Contribution ex-TAC is calculated as gross profit plus cost of revenue, excluding traffic acquisition cost (“TAC”). Traffic acquisition cost, a component of cost of revenue, represents what we must pay sellers for the sale of advertising inventory through our platform for revenue reported on a gross basis. Contribution ex-TAC is a non-GAAP financial measure that is most comparable to gross profit. We believe Contribution ex-TAC is a useful measure in facilitating a consistent comparison against our core business without considering the impact of traffic acquisition costs related to revenue reported on a gross basis.

    Adjusted EBITDA:

    We define Adjusted EBITDA as net income (loss) adjusted to exclude stock-based compensation expense, depreciation and amortization, amortization of acquired intangible assets, impairment charges, interest income or expense, and other cash and non-cash based income or expenses that we do not consider indicative of our core operating performance, including, but not limited to foreign exchange gains and losses, acquisition and related items, gains or losses on extinguishment of debt, other debt refinancing expenses, non-operational real estate and other expenses (income), net, and provision (benefit) for income taxes. We also track future expenses on an Adjusted EBITDA basis, and describe them as Adjusted EBITDA operating expenses, which includes total operating expenses. Total operating expenses include cost of revenue. Adjusted EBITDA operating expenses is calculated as Contribution ex-TAC less Adjusted EBITDA. We adjust Adjusted EBITDA operating expenses for the same expense items excluded in Adjusted EBITDA. We believe Adjusted EBITDA is useful to investors in evaluating our performance for the following reasons:

    • Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s performance without regard to items such as those we exclude in calculating this measure, which can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired.
    • Our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of performance and the effectiveness of our business strategies, and in communications with our board of directors concerning our performance. Adjusted EBITDA is also used as a metric for determining payment of cash incentive compensation.
    • Adjusted EBITDA provides a measure of consistency and comparability with our past performance that many investors find useful, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

    Although Adjusted EBITDA is frequently used by investors and securities analysts in their evaluations of companies, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results of operations as reported under GAAP. These limitations include:

    • Stock-based compensation is a non-cash charge and will remain an element of our long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period.
    • Depreciation and amortization are non-cash charges, and the assets being depreciated or amortized will often have to be replaced in the future, but Adjusted EBITDA does not reflect any cash requirements for these replacements.
    • Impairment charges are non-cash charges related to goodwill, intangible assets and/or long-lived assets.
    • Adjusted EBITDA does not reflect certain cash and non-cash charges related to acquisition and related items, such as amortization of acquired intangible assets, merger, acquisition, or restructuring related severance costs, and changes in the fair value of contingent consideration.
    • Adjusted EBITDA does not reflect cash and non-cash charges and changes in, or cash requirements for, acquisition and related items, such as certain transaction expenses.
    • Adjusted EBITDA does not reflect cash and non-cash charges related to certain financing transactions such as gains or losses on extinguishment of debt or other debt refinancing expenses.
    • Adjusted EBITDA does not reflect certain non-operational real estate and other (income) and expense, net, which consists of transactions or expenses that are typically by nature non-operating, one-time items, or unrelated to our core operations.
    • Adjusted EBITDA does not reflect changes in our working capital needs, capital expenditures, or contractual commitments.
    • Adjusted EBITDA does not reflect cash requirements for income taxes and the cash impact of other income or expense.
    • Other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

    Our Adjusted EBITDA is influenced by fluctuations in our revenue, cost of revenue, and the timing and amounts of the cost of our operations. Adjusted EBITDA should not be considered as an alternative to net income (loss), income (loss) from operations, or any other measure of financial performance calculated and presented in accordance with GAAP.

    Non-GAAP Income (Loss) and Non-GAAP Earnings (Loss) per Share:

    We define non-GAAP earnings (loss) per share as non-GAAP income (loss) divided by non-GAAP weighted-average shares outstanding. Non-GAAP income (loss) is equal to net income (loss) excluding stock-based compensation, cash and non-cash based merger, acquisition, and restructuring costs, which consist primarily of professional service fees associated with merger and acquisition activities, cash-based employee termination costs, and other restructuring activities, including facility closures, relocation costs, contract termination costs, and impairment costs of abandoned technology associated with restructuring activities, amortization of acquired intangible assets, gains or losses on extinguishment of debt, non-operational real estate and other expenses or income, foreign currency gains and losses, interest expense associated with Convertible Senior Notes, other debt refinance expenses, and the tax impact of these items. In periods in which we have non-GAAP income, non-GAAP weighted-average shares outstanding used to calculate non-GAAP earnings per share includes the impact of potentially dilutive shares. Potentially dilutive shares consist of stock options, restricted stock units, performance stock units, and potential shares issued under the Employee Stock Purchase Plan, each computed using the treasury stock method, and the impact of shares that would be issuable assuming conversion of all of the Convertible Senior Notes, calculated under the if-converted method. We believe non-GAAP earnings (loss) per share is useful to investors in evaluating our ongoing operational performance and our trends on a per share basis, and also facilitates comparison of our financial results on a per share basis with other companies, many of which present a similar non-GAAP measure. However, a potential limitation of our use of non-GAAP earnings (loss) per share is that other companies may define non-GAAP earnings (loss) per share differently, which may make comparison difficult. This measure may also exclude expenses that may have a material impact on our reported financial results. Non-GAAP earnings (loss) per share is a performance measure and should not be used as a measure of liquidity. Because of these limitations, we also consider the comparable GAAP measure of net income (loss).

    Investor Relations Contact
    Nick Kormeluk
    (949) 500-0003
    nkormeluk@magnite.com

    Media Contact
    Charlstie Veith
    (516) 300-3569
    press@magnite.com

    MAGNITE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (unaudited)
           
      March 31, 2025   December 31, 2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 429,708     $ 483,220  
    Accounts receivable, net   1,053,153       1,200,046  
    Prepaid expenses and other current assets   32,207       19,914  
    TOTAL CURRENT ASSETS   1,515,068       1,703,180  
    Property and equipment, net   79,134       68,730  
    Right-of-use lease assets   55,752       50,329  
    Internal use software development costs, net   26,689       26,625  
    Intangible assets, net   13,926       21,309  
    Goodwill   978,217       978,217  
    Other assets, non-current   5,864       6,378  
    TOTAL ASSETS $ 2,674,650     $ 2,854,768  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable and accrued expenses $ 1,306,517     $ 1,466,377  
    Lease liabilities, current   16,229       16,086  
    Debt, current, net of debt issuance costs   207,568       3,641  
    Other current liabilities   8,173       9,880  
    TOTAL CURRENT LIABILITIES   1,538,487       1,495,984  
    Debt, non-current, net of debt discount and debt issuance costs   349,001       550,104  
    Lease liabilities, non-current   43,759       38,983  
    Other liabilities, non-current   1,650       1,479  
    TOTAL LIABILITIES   1,932,897       2,086,550  
    STOCKHOLDERS’ EQUITY      
    Common stock   2       2  
    Additional paid-in capital   1,416,149       1,433,809  
    Accumulated other comprehensive loss   (3,592 )     (4,421 )
    Accumulated deficit   (670,806 )     (661,172 )
    TOTAL STOCKHOLDERS’ EQUITY   741,753       768,218  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,674,650     $ 2,854,768  
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share amounts)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Revenue $ 155,771     $ 149,319  
    Expenses (1)(2):      
    Cost of revenue   62,799       65,902  
    Sales and marketing   48,106       43,689  
    Technology and development   22,292       26,891  
    General and administrative   23,938       26,665  
    Total expenses   157,135       163,147  
    Loss from operations   (1,364 )     (13,828 )
    Other (income) expense:      
    Interest expense, net   5,177       7,958  
    Foreign exchange (gain) loss, net   2,217       (2,315 )
    Loss on extinguishment of debt   2,152       7,387  
    Other income   (423 )     (1,292 )
    Total other expense, net   9,123       11,738  
    Loss before income taxes   (10,487 )     (25,566 )
    Benefit for income taxes   (853 )     (7,809 )
    Net Loss $ (9,634 )   $ (17,757 )
    Net loss per share:      
    Basic and diluted $ (0.07 )   $ (0.13 )
    Weighted average shares used to compute net loss per share:      
    Basic and diluted   141,852       139,297  
    (1) Stock-based compensation expense included in our expenses was as follows:
      Three Months Ended
    March 31, 2025   March 31, 2024
    Cost of revenue $ 572   $ 500
    Sales and marketing   9,144     8,236
    Technology and development   4,635     5,416
    General and administrative   6,858     6,679
    Total stock-based compensation expense $ 21,209   $ 20,831
    (2) Depreciation and amortization expense included in our expenses was as follows:
      Three Months Ended
      March 31, 2025   March 31, 2024
    Cost of revenue $ 13,025   $ 10,716
    Sales and marketing   2,448     2,610
    Technology and development   69     147
    General and administrative   59     94
    Total depreciation and amortization expense $ 15,601   $ 13,567
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    OPERATING ACTIVITIES:      
    Net loss $ (9,634 )   $ (17,757 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
    Depreciation and amortization   15,601       13,567  
    Stock-based compensation   21,209       20,831  
    Loss on extinguishment of debt   2,152       7,387  
    Amortization of debt discount and issuance costs   967       1,152  
    Non-cash lease expense   (516 )     (546 )
    Deferred income taxes   154       (7,770 )
    Unrealized foreign currency (gain) loss, net   4,496       (3,910 )
    Other items, net   (101 )     124  
    Changes in operating assets and liabilities:      
    Accounts receivable   147,859       175,313  
    Prepaid expenses and other assets   (11,469 )     (812 )
    Accounts payable and accrued expenses   (166,353 )     (249,742 )
    Other liabilities   (1,804 )     1,752  
    Net cash provided by (used in) operating activities   2,561       (60,411 )
    INVESTING ACTIVITIES:      
    Purchases of property and equipment   (14,377 )     (5,873 )
    Capitalized internal use software development costs   (2,821 )     (3,379 )
    Net cash used in investing activities   (17,198 )     (9,252 )
    FINANCING ACTIVITIES:      
    Proceeds from the Term Loan B Facility refinancing and repricing activities, net of debt discount   92,622       361,350  
    Repayment of the Term Loan B Facility from refinancing and repricing activities   (92,622 )     (351,000 )
    Payment for debt issuance costs   (159 )     (4,510 )
    Proceeds from exercise of stock options   252       —  
    Purchase of treasury stock   (19,229 )     —  
    Taxes paid related to net share settlement   (20,314 )     (8,941 )
    Net cash used in financing activities   (39,450 )     (3,101 )
    EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH   575       (621 )
    CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   (53,512 )     (73,385 )
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period   483,220       326,219  
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period $ 429,708     $ 252,834  
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-(Continued)
    (In thousands)
    (unaudited)
       
      Three Months Ended
    SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: March 31, 2025   March 31, 2024
    Cash paid for income taxes $ 571   $ 729
    Cash paid for interest $ 6,679   $ 7,182
    Capitalized assets financed by accounts payable and accrued expenses and other liabilities $ 8,133   $ 7,272
    Capitalized stock-based compensation $ 422   $ 576
    Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 11,692   $ 8,255
    Operating lease right-of-use assets reduction and corresponding non-cash adjustment to operating lease liabilities $ 2,047   $ —
    Non-cash financing activity related to Amendment No. 2 to the 2024 Credit Agreement $ 270,555   $ —
    MAGNITE, INC.
    RECONCILIATION OF REVENUE TO GROSS PROFIT TO CONTRIBUTION EX-TAC
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Revenue $ 155,771   $ 149,319
    Less: Cost of revenue   62,799     65,902
    Gross Profit   92,972     83,417
    Add back: Cost of revenue, excluding TAC   52,876     47,136
    Contribution ex-TAC $ 145,848   $ 130,553
    MAGNITE, INC.
    RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Net loss $ (9,634 )   $ (17,757 )
    Add back (deduct):      
    Depreciation and amortization expense, excluding amortization of acquired intangible assets   8,218       5,978  
    Amortization of acquired intangibles   7,383       7,589  
    Stock-based compensation expense   21,209       20,831  
    Non-operational real estate and other (income) expense, net   (36 )     24  
    Interest expense, net   5,177       7,958  
    Foreign exchange (gain) loss, net   2,217       (2,315 )
    Loss on extinguishment of debt   2,152       7,387  
    Other debt refinancing expense   967       3,140  
    Benefit for income taxes   (853 )     (7,809 )
    Adjusted EBITDA $ 36,800     $ 25,026  
    MAGNITE, INC.
    RECONCILIATION OF NET LOSS TO NON-GAAP INCOME
    (In thousands)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    Net loss $ (9,634 )   $ (17,757 )
    Add back (deduct):      
    Merger, acquisition, and restructuring costs, including amortization of acquired intangibles and excluding stock-based compensation expense   7,383       7,589  
    Stock-based compensation expense   21,209       20,831  
    Non-operational real estate and other (income) expense, net   (36 )     24  
    Foreign exchange (gain) loss, net   2,217       (2,315 )
    Interest expense, Convertible Senior Notes   421       421  
    Loss on extinguishment of debt   2,152       7,387  
    Other debt refinancing expense   967       3,140  
    Tax effect of Non-GAAP adjustments (1)   (6,822 )     (11,336 )
    Non-GAAP income $ 17,857     $ 7,984  
            (1 ) Non-GAAP income includes the estimated tax impact from the reconciling items between net loss and non-GAAP income. 
    MAGNITE, INC.
    RECONCILIATION OF GAAP LOSS PER SHARE TO NON-GAAP EARNINGS PER SHARE
    (In thousands, except per share amounts)
    (unaudited)
       
      Three Months Ended
      March 31, 2025   March 31, 2024
    GAAP net loss per share (1):      
    Basic and diluted $ (0.07 )   $ (0.13 )
           
    Non-GAAP income (2) $ 17,857     $ 7,984  
    Non-GAAP earnings per share $ 0.12     $ 0.05  
           
    Reconciliation of weighted-average shares used to compute net loss per share to non-GAAP weighted average shares outstanding:      
    Weighted-average shares used to compute basic net loss per share   141,852       139,297  
    Dilutive effect of weighted-average common stock options, RSUs, and PSUs   8,191       4,371  
    Dilutive effect of weighted-average ESPP shares   65       65  
    Dilutive effect of weighted-average Convertible Senior Notes   3,210       3,210  
    Non-GAAP weighted-average shares outstanding   153,318       146,943  
           
    (1) Calculated as net loss divided by basic and diluted weighted-average shares used to compute net loss per share as included in the condensed consolidated statement of operations.
    (2) Refer to reconciliation of net loss to non-GAAP income.
    MAGNITE, INC.
    CONTRIBUTION EX-TAC BY CHANNEL
    (In thousands)
    (unaudited)
       
      Contribution ex-TAC
      Three Months Ended
      March 31, 2025   March 31, 2024
    Channel:              
    CTV $ 63,225   43 %   $ 54,894   42 %
    Mobile   58,008   40 %     53,299   41 %
    Desktop   24,615   17 %     22,360   17 %
    Total $ 145,848   100 %   $ 130,553   100 %

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

    About LiveRamp

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

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

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

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    First Quarter 2025 Highlights:

    • Revenue of $167.3 million, compared with $174.5 million in the same period last year
    • GAAP net income of $11.9 million, or $0.20 per diluted share, compared with $21.9 million, or $0.37 per diluted share in the same period last year
    • Non-GAAP net income of $22.2 million, or $0.37 per diluted share, compared with $26.4 million, or $0.45 per diluted share in the same period last year

    PLAINVIEW, N.Y., May 07, 2025 (GLOBE NEWSWIRE) — Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its first quarter ended March 31, 2025. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.

    U.S. Dollars in millions, except per share data
                     
    GAAP Results   Q1 ’25   Q1 ’24
    Revenue   $ 167.3     $ 174.5  
    Net income   $ 11.9     $ 21.9  
    Diluted earnings per share   $ 0.20     $ 0.37  
    Non-GAAP Results   Q1 ’25   Q1 ’24
    Operating income   $ 24.3     $ 29.4  
    Net income   $ 22.2     $ 26.4  
    Diluted earnings per share   $ 0.37     $ 0.45  
                     

    “Veeco delivered solid results during the first quarter, including sequential and year-over-year growth in our Semiconductor business driven by growth in Advanced Packaging,” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “In addition, Veeco shared several exciting announcements, including receipt of Intel’s 2025 EPIC supplier award, new application wins in Laser Annealing, and new application wins in Wet Processing. Each reflect our continued execution and confidence our long-term strategy can generate value for shareholders in the coming years.”

    Guidance and Outlook

    The following guidance is provided for Veeco’s second quarter 2025:

    • Revenue is expected in the range of $135 million to $165 million
    • GAAP diluted earnings (loss) per share are expected in the range of ($0.05) to $0.17
    • Non-GAAP diluted earnings per share are expected in the range of $0.12 to $0.32

    Conference Call Information

    A conference call reviewing these results has been scheduled for today, May 7, 2025 starting at 5:00pm ET. To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco’s website at ir.veeco.com. A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call.

    About Veeco

    Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, single wafer etch & clean, lithography, and metal organic chemical vapor deposition (MOCVD) technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.

    Forward-looking Statements

    This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results; and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; global trade issues, including the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; our ability to obtain and protect intellectual property rights in key technologies; the effects of regional or global health epidemics; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management’s expectations, estimates, projections and assumptions as of the date of this press release or, in the case of any document referenced herein or incorporated by reference, the date of that document. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

    –financial tables attached-

    Veeco Contacts:

    Investors:       Anthony Pappone       (516) 500-8798       apappone@veeco.com
    Media:   Javier Banos   (516) 673-7328   jbanos@veeco.com
                 
    Veeco Instruments Inc. and Subsidiaries
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
     
      Three months ended March 31,
      2025      2024
    Net sales $ 167,292     $ 174,484  
    Cost of sales   98,825       99,065  
    Gross profit   68,467       75,419  
    Operating expenses, net:          
    Research and development   28,514       29,642  
    Selling, general, and administrative   25,028       24,700  
    Amortization of intangible assets   821       1,891  
    Other operating expense (income), net   (44 )     (2,859 )
    Total operating expenses, net   54,319       53,374  
    Operating income   14,148       22,045  
    Interest income (expense), net   836       705  
    Income (loss) before income taxes   14,984       22,750  
    Income tax expense (benefit)   3,037       896  
    Net income $ 11,947     $ 21,854  
               
    Income per common share:          
    Basic $ 0.21     $ 0.39  
    Diluted $ 0.20     $ 0.37  
               
    Weighted average number of shares:          
    Basic   57,753       55,968  
    Diluted   60,234       60,764  
                   
    Veeco Instruments Inc. and Subsidiaries
    Condensed Consolidated Balance Sheets
    (in thousands)
     
      March 31,   December 31,
      2025      2024
      (unaudited)        
    Assets              
    Current assets:              
    Cash and cash equivalents $ 174,898     $ 145,595  
    Restricted cash   169       224  
    Short-term investments   178,395       198,719  
    Accounts receivable, net   114,368       96,834  
    Contract assets   33,586       37,109  
    Inventories   254,051       246,735  
    Prepaid expenses and other current assets   39,338       39,316  
    Total current assets   794,805       764,532  
    Property, plant and equipment, net   113,787       113,789  
    Operating lease right-of-use assets   25,991       26,503  
    Intangible assets, net   8,010       8,832  
    Goodwill   214,964       214,964  
    Deferred income taxes   118,567       120,191  
    Other assets   2,700       2,766  
    Total assets $ 1,278,824     $ 1,251,577  
                   
    Liabilities and stockholders’ equity              
    Current liabilities:              
    Accounts payable $ 57,845     $ 43,519  
    Accrued expenses and other current liabilities   62,257       55,195  
    Contract liabilities   57,211       64,986  
    Income taxes payable   1,546       2,086  
    Current portion of long-term debt   —       26,496  
    Total current liabilities   178,859       192,282  
    Deferred income taxes   663       689  
    Long-term debt   249,955       249,702  
    Long-term operating lease liabilities   33,694       34,318  
    Other liabilities   3,795       3,816  
    Total liabilities   466,966       480,807  
                   
    Total stockholders’ equity   811,858       770,770  
    Total liabilities and stockholders’ equity $ 1,278,824     $ 1,251,577  
                   

    Note on Reconciliation Tables

    The below tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.

    These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.

    Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2025)
    (in thousands)
    (unaudited)
     
                Non-GAAP Adjustments        
    Three months ended March 31, 2025      GAAP   Share-Based
    Compensation    		      Amortization      Other      Non-GAAP
    Net sales   $ 167,292                 $ 167,292  
    Gross profit     68,467     1,343               69,810  
    Gross margin     40.9 %                 41.7 %
    Operating expenses     54,319     (7,865 )   (821 )   (99 )     45,534  
    Operating income     14,148     9,208     821     99 ^     24,276  
    Net income     11,947     9,208     821     231 ^     22,207  

    _______________
    ^   – See table below for additional details.

    Other Non-GAAP Adjustments (Q1 2025)
    (in thousands)
    (unaudited)
         
    Three months ended March 31, 2025       
    Other $ 99  
    Subtotal   99  
    Non-cash interest expense   257  
    Non-GAAP tax adjustment *   (125 )
    Total Other $ 231  

    _______________
    *   – The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

    Net Income per Common Share (Q1 2025)
    (in thousands, except per share amounts)
    (unaudited)
     
      Three months ended March 31, 2025
      GAAP   Non-GAAP
    Numerator:              
    Net income $ 11,947     $ 22,207  
    Interest expense associated with 2025 and 2027 Convertible Senior Notes   253       273  
    Net income available to common shareholders $ 12,200     $ 22,480  
                   
    Denominator:              
    Basic weighted average shares outstanding   57,753       57,753  
    Effect of potentially dilutive share-based awards   693       693  
    Dilutive effect of 2025 Convertible Senior Notes   —       174  
    Dilutive effect of 2027 Convertible Senior Notes (1)   1,788       1,354  
    Diluted weighted average shares outstanding   60,234       59,974  
                   
    Net income per common share:              
    Basic $ 0.21     $ 0.38  
    Diluted $ 0.20     $ 0.37  

    _______________
    (1) – The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

    Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2024)
    (in thousands)
    (unaudited)
     
                Non-GAAP Adjustments        
    Three months ended March 31, 2024        GAAP       Share-based
    Compensation    		      Amortization      Other      Non-GAAP
    Net sales   $ 174,484                 $ 174,484  
    Gross profit     75,419     1,730               77,149  
    Gross margin     43.2 %                 44.2 %
    Operating expenses     53,374     (6,352 )   (1,891 )   2,658       47,789  
    Operating income     22,045     8,082     1,891     (2,658 ) ^   29,360  
    Net income     21,854     8,082     1,891     (5,384 ) ^   26,443  

    _______________
    ^   – See table below for additional details.

    Other Non-GAAP Adjustments (Q1 2024)
    (in thousands)
    (unaudited)
     
    Three months ended March 31, 2024    
    Changes in contingent consideration $ (625 )
    Sale of productive assets   (2,033 )
    Subtotal   (2,658 )
    Non-cash interest expense   296  
    Non-GAAP tax adjustment *   (3,022 )
    Total Other $ (5,384 )

    _______________
    *   – The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

    Net Income per Common Share (Q1 2024)
    (in thousands, except per share amounts)
    (unaudited)
     
      Three months ended March 31, 2024
      GAAP   Non-GAAP
    Numerator:              
    Net income $ 21,854     $ 26,443  
    Interest expense associated with 2025 and 2027 Convertible Senior Notes   514       466  
    Net income available to common shareholders $ 22,368     $ 26,909  
                   
    Denominator:              
    Basic weighted average shares outstanding   55,968       55,968  
    Effect of potentially dilutive share-based awards   939       939  
    Dilutive effect of 2025 Convertible Senior Notes   1,104       1,104  
    Dilutive effect of 2027 Convertible Senior Notes (1)   1,788       1,354  
    Dilutive effect of 2029 Convertible Senior Notes   965       965  
    Diluted weighted average shares outstanding   60,764       60,330  
                   
    Net income per common share:              
    Basic $ 0.39     $ 0.47  
    Diluted $ 0.37     $ 0.45  

    _______________
    (1) – The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

    Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q1 2025 and 2024)
    (in thousands)
    (unaudited)
     
      Three months ended      Three months ended
      March 31, 2025   March 31, 2024
    GAAP Net income $ 11,947     $ 21,854  
    Share-based compensation   9,208       8,082  
    Amortization   821       1,891  
    Sale of productive assets   —       (2,033 )
    Changes in contingent consideration   —       (625 )
    Interest (income) expense, net   (836 )     (705 )
    Other   99       —  
    Income tax expense (benefit)   3,037       896  
    Non-GAAP Operating income $ 24,276     $ 29,360  
                   
    Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2025)
    (in millions, except per share amounts)
    (unaudited)
     
                        Non-GAAP Adjustments                
    Guidance for the three months ending                   Share-based                        
    June 30, 2025   GAAP   Compensation   Amortization      Other       Non-GAAP
    Net sales   $ 135     –   $ 165                 $ 135     –   $ 165  
    Gross profit     54     –     69     1     —     —       55     –     70  
    Gross margin     39 %   –     41 %                 40 %   –     42 %
    Operating expenses     57     –     58     (9 )   (1 )   —       47     –     48  
    Operating income (loss)     (3 )   –     11     10     1     —       8     –     22  
    Net income (loss)   $ (3 )   –   $ 10     10     1     (1 )   $ 7     –   $ 20  
                                                 
    Income (loss) per diluted common share   $ (0.05 )   –   $ 0.17                 $ 0.12     –   $ 0.32  
                                                         
    Income per Diluted Common Share (Q2 2025)
    (in millions, except per share amounts)
    (unaudited)
     
    Guidance for the three months ending June 30, 2025   GAAP   Non-GAAP
    Numerator:                                      
    Net income (loss) available to common shareholders   $ (3 )   –   $ 10     $ 7     –   $ 20  
                                           
    Denominator:                                      
    Basic weighted average shares outstanding     58           58       58           58  
    Effect of potentially dilutive share-based awards     —           1       1           1  
    Dilutive effect of 2027 Convertible Senior Notes (1)     —           2       —           1  
    Diluted weighted average shares outstanding     58           61       59           61  
                                           
    Net income per common share:                                      
    Income (loss) per diluted common share   $ (0.05 )   –   $ 0.17     $ 0.12     –   $ 0.32  

    _______________
    (1) – The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

    Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2025)
    (in millions)
    (unaudited)
     
    Guidance for the three months ending June 30, 2025                         
    GAAP Net income (loss)   $ (3 )   –   $ 10  
    Share-based compensation     10     –     10  
    Amortization     1     –     1  
    Interest income, net     (1 )   –     (1 )
    Income tax expense (benefit)     —     –     1  
    Non-GAAP Operating income   $ 8     –   $ 22  
                         

    Note: Amounts may not calculate precisely due to rounding.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    Achieved gross bookings of $13.7 million and revenue of $14.1 million in the first quarter 2025

    Signed 9 new customers in the first quarter 2025 and expanded relationship with existing customers across key markets including AI, Photonics, and IoT

    Expanded Product Portfolio with the Acquisition of Tech-X Corporation

    SANTA CLARA, Calif., May 07, 2025 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO) (“Silvaco” or the “Company”), a provider of TCAD, EDA software, and SIP solutions that enable innovative semiconductor design and digital twin modeling through AI software and automation, today announced its first quarter 2025 results.

    “We are pleased to have completed our first acquisition since our IPO in the first quarter of 2025, and have since announced our second acquisition of 2025, advancing our inorganic growth strategy and expanding our product portfolio,” said Dr. Babak Taheri, Silvaco’s Chief Executive Officer. Dr. Taheri continued, “We believe our solid fundamentals and focus on innovation position us to sustain strong customer momentum and drive continued growth in our EDA and TCAD product lines through 2025. We are committed to defending shareholder value through performance, transparency, and responsible capital management. We believe the fundamentals of Silvaco are strong—and we’re taking clear, measurable steps to align our market presence with the long-term strength of our business.”

    Commenting on the financial results and outlook, Keith Tainsky, Silvaco’s Interim Chief Financial Officer, added, “Given the current economic uncertainty, we have provided a broad guidance range for the second quarter of 2025. The company remains well positioned to deliver solid growth, supported by strong customer demand. We also updated our full-year guidance and remain confident in our ability to achieve our strategic and financial objectives.”

    First Quarter 2025 and Recent Business Highlights

    • Acquired 9 new customers across key markets including AI infrastructure (Power, Memory, Foundry) Photonics, and IoT markets, which represented approximately 23% of gross bookings for the quarter. We also expanded opportunities with existing customers, which accounted for 38% of gross bookings.
    • Gained momentum with Power, Photonics, and Advanced CMOS customers as they expand adoption of the FTCO platform for their next-generation product development. We announced that Excelliance MOS adopted Silvaco DTCO Flow for next generation silicon carbide devices and our partnership with Korean Kyung Hee University’s Professor Jin Jang on FTCO for next generation display technologies.
    • Expanded SAM by an estimated $600 million with the acquisitions of Cadence’s PPC product line and Tech-X Corporation.
    • Faraday Technology selected Silvaco FlexCAN IP for advanced automotive ASIC design.
    • ProMOS adopted our Victory TCAD solution for the development of next generation silicon photonics devices.
    • On April 29, 2025, Silvaco closed the acquisition of Tech-X Corporation, expanding our product offerings into wafer-level and photonics digital twin modeling.
    • Beginning with this quarter, we will be providing a new performance metric called Annual Contract Value, or ACV. We use ACV internally as a supplemental measure to evaluate the performance of our customer agreements and the underlying momentum of the business. While not a measure calculated in accordance with GAAP, we believe ACV provides additional insight into the scale and timing of customer commitments, which may not be fully reflected in recognized revenue due to the timing of revenue recognition under ASC 606.

    First Quarter 2025 Financial Results

    GAAP Financial Results

    • Revenue of $14.1 million, down 11% year-over-year and down 21% quarter-over-quarter.
      • TCAD revenue of $7.9 million, down 26% year-over-year, primarily due to earlier renewals last year.
      • EDA revenue of $5.1 million, up 8% year-over-year, including the addition of PPC product revenue of $1.9 million.
      • SIP revenue of $1.1 million, up 89% year-over-year, primarily driven by new bookings in automotive and IoT customers.
    • GAAP gross profit and GAAP gross margin were $11.1 million and 79%, respectively, which includes the impact of $0.2 million in stock-based compensation expense, and $0.2 million in amortization of acquired intangible assets, down from $13.9 million and 88% in Q1 2024.
    • GAAP net loss of $19.3 million, compared to a GAAP net income of $1.4 million in Q1 2024.
    • GAAP basic net loss per share of $(0.67), compared to GAAP basic and diluted net income per share of $0.07 in Q1 2024.
    • As of March 31, 2025, cash and cash equivalents and marketable securities totaled $74.5 million.

    Key Operating Indicators and Non-GAAP Financial Results:

    • Gross bookings were $13.7 million, down 15% year-over-year.
    • As of March 31, 2025, the remaining performance obligation balance of $33.7 million, 45% of which is expected to be recognized as revenue in the next 12 months.
    • Non-GAAP gross profit and non-GAAP gross margin were $11.5 million and 82%, respectively, down from $13.9 million and 88% in Q1 2024.
    • Non-GAAP net loss of $1.9 million, compared to non-GAAP net income of $2.4 million in Q1 2024.
    • Non-GAAP diluted net loss per share of $(0.07), compared to non-GAAP diluted net income per share of $0.12 in Q1 2024.
    • On a trailing-twelve-month (TTM) basis ACV was $52.3 million for the first quarter, up 21% year-over-year. This increase was driven by the amount of growth in organic growth of term-based licenses and renewals, as well as the acquisition of PPC. While quarterly revenue may fluctuate, core annual recurring revenue from new bookings has shown consistent annual growth.

    For a discussion of the non-GAAP metrics presented in this press release, as well as a reconciliation of non-GAAP metrics to the nearest comparable GAAP metric, see “Discussion of Non-GAAP Financial Measures and Other Key Business Metrics” and “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.

    Supplementary materials to this press release, including first quarter 2025 financial results, can be found at https://investors.silvaco.com/financial-information/quarterly-results.

    Second Quarter and Full Year 2025 Financial Outlook

    As of May 7, 2025, Silvaco is providing updated guidance for its second quarter of 2025 and its full-year 2025, which represents Silvaco’s current estimates on its operations and financial results. The financial information below represents forward-looking financial information and in some instances forward-looking, non-GAAP financial information, including estimates of non-GAAP gross margin, non-GAAP operating income (loss) and non-GAAP diluted net income (loss) per share. GAAP gross margin is the most comparable GAAP measure to non-GAAP gross margin and GAAP operating income (loss) is the most comparable GAAP measure to non-GAAP operating income (loss). GAAP diluted net income (loss) per share is the most comparable GAAP measure to non-GAAP diluted net income (loss) per share. Non-GAAP gross margin differs from GAAP gross margin in that it excludes items such as stock-based compensation expense, amortization of acquired intangible assets, and acquisition-related professional fees and retention bonuses. Non-GAAP operating income (loss) differs from GAAP operating income (loss) in that it excludes items such as acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, acquisition-related professional fees and retention bonuses and IPO preparation costs. Non-GAAP diluted net income (loss) per share differs from GAAP diluted net income (loss) per share in that it excludes certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, acquisition-related professional fees and retention bonuses, change in fair value of contingent consideration, foreign exchange (gain) loss, and the income tax effect on non-GAAP items. Silvaco is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Silvaco has not provided guidance for GAAP gross margin, GAAP operating income or GAAP diluted net income (loss) per share or a reconciliation of the forward-looking non-GAAP gross margin or non-GAAP operating income or non-GAAP diluted net income (loss) per share guidance to GAAP gross margin or GAAP operating income or GAAP diluted net income (loss) per share, respectively. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

    Based on current business trends and conditions, the Company expects for second quarter 2025 the following:

    • Gross bookings in the range of $14.0 million to $18.0 million, which would compare to $19.5 million in the second quarter of 2024.
    • Revenue in the range of $12.0 million to $16.0 million, which would compare to $15.0 million in the second quarter of 2024.
    • Non-GAAP gross margin in the range of 80% to 83%, which would compare to 86% in the second quarter of 2024.
    • Non-GAAP operating loss in the range of ($4.0) million to ($2.0) million, compared to non-GAAP operating income of $1.7 million in the second quarter of 2024.
    • Non-GAAP diluted net loss per share in the range of ($0.10) to ($0.03), compared to net income per share of $0.07 in the second quarter of 2024.

    Based on current business trends and conditions, the Company expects for full year 2025, the following:

    • Gross bookings in the range of $67.0 million to $74.0 million, which would represent a 2% to 13% increase from $65.8 million in 2024.
    • Revenue in the range of $64.0 million to $70.0 million, which would represent a 7% to 17% increase from $59.7 million in 2024.
    • Non-GAAP gross margin in the range of 83% to 86%, which would compare to 86% in 2024.
    • Non-GAAP operating (loss) income in the range of ($2.0) million loss to $1.0 million income, which would compare to $5.5 million income in 2024.
    • Non-GAAP diluted net (loss) income per share in the range of ($0.07) net loss per share to $0.03 net income per share, compared to $0.25 net income per share in 2024.

    Q1 2025 Conference Call Details

    A press release highlighting the Company’s results along with supplemental financial results will be available at https://investors.silvaco.com/ along with an earnings presentation to accompany management’s prepared remarks. An archived replay of the conference call will be available on this website for a limited time after the call. Participants who want to join the call and ask a question may register for the call here to receive the dial-in numbers and unique PIN.

    Date: Wednesday, May 7, 2025
    Time: 5:00 p.m. Eastern time
    Webcast: Here (live and replay)

    About Silvaco

    Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation. Silvaco’s solutions are used for semiconductor and photonics processes, devices, and systems development across display, power devices, automotive, memory, high performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

    Safe Harbor Statement

    This press release contains forward-looking statements based on Silvaco’s current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silvaco are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silvaco and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

    These forward-looking statements include but are not limited to, statements regarding our future operating results, financial position, and guidance, our business strategy and plans, our objectives for future operations, our development or delivery of new or enhanced products, and anticipated results of those products for our customers, our competitive positioning, projected costs, technological capabilities, and plans, and macroeconomic trends.

    A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation, the following: (a) market conditions; (b) anticipated trends, challenges and growth in our business and the markets in which we operate; (c) our ability to appropriately respond to changing technologies on a timely and cost-effective basis; (d) the size and growth potential of the markets for our software solutions, and our ability to serve those markets; (e) our expectations regarding competition in our existing and new markets; (f) the level of demand in our customers’ end markets; (g) regulatory developments in the United States and foreign countries; (h) changes in trade policies, including the imposition of tariffs; (i) proposed new software solutions, services or developments; (j) our ability to attract and retain key management personnel; (k) our customer relationships and our ability to retain and expand our customer relationships; (l) our ability to diversify our customer base and develop relationships in new markets; (m) the strategies, prospects, plans, expectations, and objectives of management for future operations; (n) public health crises, pandemics, and epidemics and their effects on our business and our customers’ businesses; (o) the impact of the current conflicts between Ukraine and Russia and Israel and Hamas and the ongoing trade disputes among the United States and China on our business, financial condition or prospects, including extreme volatility in the global capital markets making debt or equity financing more difficult to obtain, more costly or more dilutive, delays and disruptions of the global supply chains and the business activities of our suppliers, distributors, customers and other business partners; (p) changes in general economic or business conditions or economic or demographic trends in the United States and foreign countries including changes in tariffs, interest rates and inflation; (q) our ability to raise additional capital; (r) our ability to accurately forecast demand for our software solutions; (s) our expectations regarding the outcome of any ongoing litigation; (t) our ability to successfully integrate recent acquisitions; (u) our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act and as a smaller reporting company under the Exchange Act; (v) our expectations regarding our ability to obtain, maintain, protect and enforce intellectual property protection for our technology; (w) our status as a controlled company; and (x) our use of the net proceeds from our initial public offering.

    It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. Additional information relating to the uncertainty affecting Silvaco’s business is contained in Silvaco’s filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Relations section of Silvaco’s website at http://investors.silvaco.com/. These forward-looking statements represent Silvaco’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Silvaco disclaims any obligation to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

    Discussion of Non-GAAP Financial Measures and Other Key Business Metrics

    We use certain non-GAAP financial measures to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share. We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons.

    We define non-GAAP gross profit and non-GAAP gross margin as our GAAP gross profit and GAAP gross margin adjusted to exclude certain costs, including stock-based compensation expense, amortization of acquired intangible assets and acquisition-related professional fees and retention bonuses. We define non-GAAP operating income (loss), as our GAAP operating income (loss) adjusted to exclude certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, and acquisition-related professional fees and retention bonuses. We define non-GAAP net income (loss) as our GAAP net income (loss) adjusted to exclude certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, acquisition-related professional fees and retention bonuses, change in fair value of contingent consideration, foreign exchange (gain) loss, and the income tax effect on non-GAAP items. Our non-GAAP diluted net income (loss) per share is calculated in the same way as our non-GAAP net income (loss), but on a per share basis. We monitor non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share as non-GAAP financial measures to supplement the financial information we present in accordance with GAAP to provide investors with additional information regarding our financial results.

    Certain items are excluded from our non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share because these items are non-cash in nature or are not indicative of our core operating performance and render comparisons with prior periods and competitors less meaningful. We adjust GAAP gross profit, GAAP gross margin, GAAP operating income (loss), GAAP net income (loss), and GAAP diluted net income (loss) per share for these items to arrive at non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structure and the method by which the assets were acquired. By excluding certain items that may not be indicative of our recurring core operating results, we believe that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share provide meaningful supplemental information regarding our performance.

    We believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze our financial performance and the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

    Annual Contract Value (“ACV”) is a key performance metric for Silvaco and is useful to investors in assessing the strength and trajectory of the business. ACV is a supplemental metric to help evaluate the annual performance of the business. Over the life of the contract, ACV equals the total value realized from a customer. ACV is not impacted by the timing of license revenue recognition. ACV is used by management in financial and operational decision-making. ACV is not a replacement for, and should be viewed independently of, GAAP revenue and deferred revenue, as ACV is a performance metric and is not intended to be combined with any of these items. There is no GAAP measure comparable to ACV.

    ACV is composed of the following: (i) the annualized value of term based software licenses with start dates or anniversary dates during the period, plus; (ii) the value of perpetual license contracts with start dates during the period, plus; (iii) the annualized value of maintenance & support as well as any fixed-term services contracts with start dates or anniversary dates during the period, plus; (iv) the value of fixed-deliverable services contracts. Silvaco and the Silvaco logo are registered trademarks of Silvaco Group, Inc. All other trademarks and service marks are the property of their respective owners.

    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in thousands except share and par value amounts)
           
      March 31, 2025   December 31, 2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 29,489     $ 19,606  
    Current marketable securities   45,048       63,071  
    Accounts receivable, net   5,783       9,211  
    Contract assets, net   15,102       11,932  
    Prepaid expenses and other current assets   4,500       3,460  
    Total current assets   99,922       107,280  
    Non-current assets:      
    Non-current marketable securities   —       4,785  
    Property and equipment, net   890       865  
    Operating lease right-of-use assets, net   1,534       1,711  
    Intangible assets, net   9,997       4,369  
    Goodwill   14,337       9,026  
    Non-current portion of contract assets   9,860       12,611  
    Other assets   1,595       1,698  
    Total non-current assets   38,213       35,065  
    Total assets $ 138,135     $ 142,345  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 2,137     $ 3,316  
    Accrued expenses and other current liabilities   32,426       19,801  
    Accrued income taxes   1,728       1,668  
    Deferred revenue, current   8,618       7,497  
    Operating lease liabilities, current   644       744  
    Vendor financing obligation, current   1,191       1,462  
    Total current liabilities   46,744       34,488  
    Non-current liabilities:      
    Deferred revenue, non-current   3,604       3,593  
    Operating lease liabilities, non-current   866       946  
    Vendor financing obligation, non-current   2,995       2,928  
    Other non-current liabilities   333       307  
    Total liabilities   54,542       42,262  
    Stockholders’ equity:      
    Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2025 and December 31, 2024 , respectively   —       —  
    Common stock, $0.0001 par value; 500,000,000 shares authorized; 28,805,280 and 28,526,615 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively   3       3  
    Additional paid-in capital   132,937       130,360  
    Accumulated deficit   (47,285 )     (28,012 )
    Accumulated other comprehensive loss   (2,062 )     (2,268 )
    Total stockholders’ equity   83,593       100,083  
    Total liabilities and stockholders’ equity $ 138,135     $ 142,345  
           
           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
    (Unaudited, in thousands except share and par value amounts)
           
      Three Months Ended March 31,
        2025       2024  
    Revenue:      
    Software license revenue $ 10,009     $ 12,258  
    Maintenance and service   4,083       3,631  
    Total revenue   14,092       15,889  
    Cost of revenue   3,016       1,973  
    Gross profit   11,076       13,916  
    Operating expenses:      
    Research and development   4,800       3,616  
    Selling and marketing   4,719       3,312  
    General and administrative   8,120       4,600  
    Estimated litigation claim   13,069       —  
    Total operating expenses   30,708       11,528  
    Operating (loss) income   (19,632 )     2,388  
    Interest income   863       —  
    Interest and other expense, net   (291 )     (205 )
    (Loss) income before income tax provision   (19,060 )     2,183  
    Income tax provision   213       805  
    Net (loss) income $ (19,273 )   $ 1,378  
    Net (loss) income per share:      
    Basic and diluted $ (0.67 )   $ 0.07  
    Weighted average shares used in computing per share amounts:      
    Basic and diluted   28,694,295       20,000,000  
           
           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in thousands)
           
      Three Months Ended March 31,
        2025       2024  
    Cash flows from operating activities:      
    Net (loss) income $ (19,273 )   $ 1,378  
    Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:      
    Depreciation and amortization   438       120  
    Stock-based compensation expense   2,277       —  
    Provision for credit losses   10       222  
    Estimated litigation claim   13,069       —  
    Accretion of discount on marketable securities, net   (261 )     —  
    Change in fair value of contingent consideration   35       (8 )
    Changes in operating assets and liabilities:      
    Accounts receivable   3,520       (1,844 )
    Contract assets   440       (3,679 )
    Prepaid expenses and other current assets   (1,026 )     788  
    Other assets   119       (274 )
    Accounts payable   (1,183 )     877  
    Accrued expenses and other current liabilities   55       (729 )
    Accrued income taxes   58       574  
    Deferred revenue   567       (21 )
    Other non-current liabilities   20       24  
    Net cash used in operating activities   (1,135 )     (2,572 )
    Cash flows from investing activities:      
    Maturities of marketable securities   23,000       —  
    Acquisition of Process Proximity Compensation   (11,500 )     —  
    Purchases of property and equipment   (96 )     (10 )
    Net cash provided by (used in) investing activities   11,404       (10 )
    Cash flows from financing activities:      
    Proceeds from loan facility   —       4,250  
    Deferred transaction costs   —       (364 )
    Payroll taxes related to shares withheld from employees   (252 )     —  
    Contingent consideration   (46 )     (13 )
    Payments of vendor financing obligation   (205 )     —  
    Net cash (used in) provided by financing activities   (503 )     3,873  
    Effect of exchange rate fluctuations on cash and cash equivalents   117       27  
    Net increase in cash and cash equivalents   9,883       1,318  
    Cash and cash equivalents, beginning of period   19,606       4,421  
    Cash and cash equivalents, end of period $ 29,489     $ 5,739  
           
    SILVACO GROUP, INC.
    REVENUE
    (Unaudited)
        2024   2025
        Q1 Q2 Q3 Q4 Year   Q1
    Revenue by Region:                
    Americas   27 % 51 % 31 % 40 % 38 %   20 %
    APAC   62 % 41 % 58 % 52 % 53 %   66 %
    EMEA   11 % 8 % 11 % 8 % 9 %   14 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    Revenue by Product Line:                
    TCAD   66 % 69 % 59 % 71 % 68 %   56 %
    EDA   30 % 20 % 24 % 24 % 24 %   36 %
    SIP   4 % 11 % 17 % 5 % 8 %   8 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    Revenue Item Category:                
    Software license revenue   77 % 74 % 62 % 78 % 74 %   71 %
    Maintenance and service   23 % 26 % 38 % 22 % 26 %   29 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    Revenue by Country:                
    United States   26 % 50 % 30 % 39 % 37 %   20 %
    China   11 % 17 % 25 % 23 % 18 %   14 %
    Other   63 % 33 % 45 % 38 % 45 %   66 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    SILVACO GROUP, INC.
    GAAP to Non-GAAP Reconciliation
    (Unaudited, in thousands except per share amounts)
     
      Three Months Ended
      3/31/2025   3/31/2024
           
    GAAP Cost of revenue $ 3,016     $ 1,973  
    Less: Stock-based compensation expense   (199 )     —  
    Less: Amortization of acquired intangible assets   (249 )     —  
    Less: Acquisition-related professional fees and retention bonus   (8 )     —  
    Non-GAAP Cost of revenue $ 2,560     $ 1,973  
    GAAP Gross profit $ 11,076     $ 13,916  
    Add: Stock-based compensation expense   199       —  
    Add: Amortization of acquired intangible assets   249       —  
    Add: Acquisition-related professional fees and retention bonus   8       —  
    Non-GAAP Gross profit $ 11,532     $ 13,916  
    GAAP Research and development $ 4,800     $ 3,616  
    Less: Stock-based compensation expense   (244 )     —  
    Less: Acquisition-related professional fees and retention bonus   (18 )     —  
    Less: Amortization of acquired intangible assets   (51 )     (70 ) 
    Non-GAAP Research and development $ 4,487     $ 3,546  
    GAAP Selling and marketing $ 4,719     $ 3,312  
    Less: Stock-based compensation expense   (323 )      —  
    Less: IPO preparation costs   —       -127  
    Non-GAAP Selling and marketing $ 4,396     $ 3,185  
    GAAP General and administrative $ 8,120     $ 4,600  
    Less: Stock-based compensation expense   (1,511 )     —  
    Less: Acquisition-related estimated litigation claim and legal costs   (726 )     (594 )
    Less: Acquisition-related professional fees and retention bonus   (677 )     —  
    Less: Amortization of acquired intangible assets   (62 )     —  
    Less: IPO preparation costs   —       (139 )
    Non-GAAP General and administrative $ 5,144     $ 3,867  
    GAAP Estimated litigation claim $ 13,069     $ —  
    Less: Acquisition-related estimated litigation claim and legal costs   (13,069 )     —  
    Non-GAAP Estimated litigation claim $ —     $ —  
    GAAP Operating expenses $ 30,708     $ 11,528  
    Less: Stock-based compensation expense   (2,078 )     —  
    Less: Acquisition-related estimated litigation claim and legal costs   (13,795 )     (594 )
    Less: Acquisition-related professional fees and retention bonus   (695 )     —  
    Less: IPO preparation costs   —       (266 )
    Less: Amortization of acquired intangible assets   (113 )     (70 )
    Non-GAAP Operating expenses $ 14,027     $ 10,598  
    GAAP Operating (loss) income $ (19,632 )   $ 2,388  
    Add: Stock-based compensation expense   2,277       —  
    Add: Acquisition-related estimated litigation claim and legal costs   13,795       594  
    Add: Acquisition-related professional fees and retention bonus   703       —  
    Add: IPO preparation costs   —       266  
    Add: Amortization of acquired intangible assets   362       70  
    Non-GAAP Operating (loss) income $ (2,495 )   $ 3,318  
    GAAP Net (loss) income $ (19,273 )   $ 1,378  
    Add: Stock-based compensation expense   2,277       —  
    Add: Acquisition-related estimated litigation claim and legal costs   13,795       594  
    Add: Acquisition-related professional fees and retention bonus   703       —  
    Add: IPO preparation costs   —       266  
    Add: Amortization of acquired intangible assets   362       70  
    Add (Less): Change in fair value of contingent consideration   35       (8 )
    Add (Less): Foreign exchange (gain) loss   205       130  
    Add (Less): Income tax effect of non-GAAP adjustment   (5 )     (33 )
    Non-GAAP Net (loss) income $ (1,901 )   $ 2,397  
    GAAP Net income (loss) per share:      
    Basic and diluted: $ (0.67 )   $ 0.07  
    Non-GAAP Net income (loss) per share:      
    Basic and diluted $ (0.07 )   $ 0.12  
    Weighted average shares used in GAAP and non-GAAP net income (loss) per share:      
    Basic and diluted   28,694,295       20,000,000  
           

    Investor Contact:
    Greg McNiff
    investors@silvaco.com 

    Media Contact:
    Farhad Hayat
    press@silvaco.com

    The MIL Network –

  • MIL-OSI: Cerence Announces Second Quarter Fiscal 2025 Results; Revenue and Profitability Exceed High End of Guidance

    Source: GlobeNewswire (MIL-OSI)

    Headlines

    • Revenue of $78M; free cash flow of $13.1M marks fourth consecutive positive quarter
    • Company reiterates full-year guidance for revenue and raises full-year guidance for profitability and cash flow
    • Continued innovation and customer momentum for Cerence xUI, the company’s next-gen platform

    BURLINGTON, Mass., May 07, 2025 (GLOBE NEWSWIRE) — Cerence Inc. (NASDAQ: CRNC) (“Cerence AI”), a global leader pioneering conversational AI-powered user experiences, today reported its second quarter fiscal year 2025 results for the quarter ended March 31, 2025.

    Results Summary (1,2)
    (in millions, except per share data)

        Three Months Ended     Six Months Ended  
        March 31,     March 31,  
        2025     2024     2025     2024  
    GAAP revenue (4)   $ 78.0     $ 67.8     $ 128.9     $ 206.2  
    GAAP gross margin     77.1 %     69.2 %     72.3 %     77.1 %
    GAAP total operating expenses (3)   $ 42.8     $ 311.3     $ 92.8     $ 364.7  
    Non-GAAP total operating expenses   $ 34.1     $ 50.0     $ 68.2     $ 94.4  
    GAAP net income (loss) (3)   $ 21.7     $ (278.0 )   $ (2.6 )   $ (254.1 )
    Adjusted EBITDA   $ 29.5     $ (0.3 )   $ 30.8     $ 70.1  
    Free cash flow   $ 13.1     $ (0.8 )   $ 21.0     $ (4.5 )
    GAAP net income (loss) per share – diluted (3)   $ 0.46     $ (6.66 )   $ (0.06 )   $ (6.13 )
     
    (1) As previously disclosed, for the six months ended March 31, 2024, revenue includes the non-cash revenue associated with the Toyota “Legacy” contract and related impacts totaling $86.6M.
    (2) Please refer to the “Discussion of Non-GAAP Financial Measures” and “Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures” included elsewhere in this release for more information regarding our use of non-GAAP financial measures.
    (3) As previously disclosed, for the six months ended March 31, 2024, operating expenses include a Goodwill impairment charge of $252M.
    (4) Q2FY25 and Q2FY24 revenue include $21.5 million and $10.4 million of revenue from fixed license contracts, respectively.
     

    “I’m incredibly proud of what our team has accomplished. We surpassed the high end of our revenue and adjusted EBITDA guidance and posted our fourth consecutive quarter of positive free cash flow, demonstrating the high value we provide to the world’s leading automakers as they work through the ongoing macro uncertainties and complexities facing the industry today,” said Brian Krzanich, CEO, Cerence AI. “As we look to the future and based on currently available information, we believe we are well-positioned to continue supporting our customers as they work to bring an enhanced experience to their drivers. With Cerence xUI, we are partnering with OEMs as they contemplate and build their future infotainment platforms, as well as delivering enhanced user experiences via over-the-air updates as automakers upgrade their current systems to deliver next-gen features and capabilities to their drivers today.” 

    Cerence Key Performance Indicators
    To help investors gain further insight into Cerence’s business and its performance, management provides a set of key performance indicators that includes:

    Key Performance Indicator1   Q2FY25
    Percent of worldwide auto production with Cerence Technology (trailing twelve months (“TTM”))   51 %
    Change in number of Cerence connected cars shipped (TTM over prior year TTM)2   10 %
    Change in Adjusted Total Billings (TTM over prior year TTM)3   0 %
           
    (1) Please refer to the “Key Performance Indicators” section included elsewhere in this release for more information regarding the definitions and our use of key performance indicators.
    (2) Based on IHS Markit data, global auto production decreased 1%, calculated TTM over prior year TTM.
    (3) Adjusted Total Billings excludes professional services and prepay contracts and is adjusted for prepay consumption. Change in Adjusted Total Billings is calculated TTM over prior year TTM.
           

    Third Quarter and Full Year Fiscal 2025 Outlook
    For the fiscal quarter ending June 30, 2025, revenue is expected to be in the range of $52 million to $56 million, where no material Fixed License revenue contracts are expected to be signed during the quarter. Gross margins are projected between 66% and 68% and net loss is projected in the range of $13 million to $10 million. Adjusted EBITDA is expected to be in the range of $1 million to $4 million. The adjusted EBITDA guidance excludes amortization of acquired intangible assets, stock-based compensation, restructuring and other costs.

    Revenue guidance for the full fiscal year ending September 30, 2025 remains unchanged; however, net loss is now projected in the range of $35 million to $29 million, adjusted EBITDA is now expected to be in the range of $28 million to $34 million, net cash provided by operating activities is projected in the range of $39 million to $45 million, and free cash flow is expected in the range of $25 million to $35 million.

    Additional details regarding guidance will be provided during the company’s earnings call.

    Cerence Conference Call and Webcast
    The company will host a live conference call and webcast with slides to discuss its results today at 5:00pm Eastern Time / 2:00pm Pacific Time. Interested investors and analysts are invited to dial into the conference call by registering here.

    Webcast access also will be available on the Investor section of the company’s website at https://www.cerence.com/investors/events-and-resources.

    A replay of the webcast can be accessed by visiting the company’s website 90 minutes following the conference call at https://www.cerence.com/investors/events-and-resources.

    Forward Looking Statements
    Statements in this press release regarding: Cerence’s future performance, results and financial condition; expected growth and profitability; outlook and momentum; transformation plans and cost efficiency initiatives; strategy; opportunities; business, industry and market trends; strategy regarding fixed contracts and its impact on financial results; backlog; revenue visibility; revenue timing and mix; demand for Cerence products; innovation and new product offerings, including AI technology; expected benefits of technology partnerships; and management’s future expectations, anticipations, intentions, estimates, assumptions, beliefs, goals, objectives, targets, plans, outlook or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “goal,” “objective,” “anticipates,” “projects,” “forecasts,” “expects,” “intends,” “continues,” “will,” “may,” or “estimates” or similar expressions) should also be considered to be forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions as of the date of this press release, such statements involve known and unknown risk, uncertainties and other factors, which may cause actual results or performance of the company to be materially different from any future results or performance expressed or implied by such forward-looking statements including but not limited to: the highly competitive and rapidly changing market in which we operate; adverse conditions in the automotive industry or the global economy more generally; volatility in the political, legal and regulatory environment in which we operate, including trade, tariffs and other policies implemented by the new administration in the United States or actions taken by other countries in response; automotive production curtailment or delays; changes in customer forecasts; the impacts of the COVID-19 pandemic on our and our customers’ businesses; the ongoing conflicts in Ukraine and the Middle East; our inability to control and successfully manage our expenses and cash position; our inability to deliver improved financial results from process optimization efforts and cost reduction actions; escalating pricing pressures from our customers; the impact on our business of the transition to a lower level of fixed contracts, including the failure to achieve such a transition; our failure to win, renew or implement service contracts; the cancellation or postponement of existing contracts; the loss of business from any of our largest customers; effects of customer defaults; a decrease in the level of professional service projects; our inability to successfully introduce new products, applications and services; our strategies to increase cloud offerings and deploy generative AI and large language models (LLMs); the inability to expand into adjacent markets; the inability to recruit and retain qualified personnel; disruptions arising from transitions in management personnel; cybersecurity and data privacy incidents; failure to protect our intellectual property; adverse developments related to our intellectual property enforcement litigation, the outcome of such litigation, or remedies that could be awarded in connection with such litigation; defects or interruptions in service with respect to our products; fluctuating currency rates and interest rates; inflation; financial and credit market volatility; restrictions on our current and future operations under the terms of our debt, the use of cash to service or repay our debt; and our inability to generate sufficient cash from our operations; and the other factors discussed in our most recent Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this document.

    Discussion of Non-GAAP Financial Measures
    We believe that providing the non-GAAP information, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors to not only better understand our financial performance, but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. The non-GAAP information should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP.

    We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. While our management uses these non-GAAP financial measures as a tool to enhance their understanding of certain aspects of our financial performance, our management does not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial statements.

    Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial statements, allows for greater transparency in the review of our financial and operational performance. In assessing the overall health of the business during the three months ended March 31, 2025 and 2024, our management has either included or excluded the following items in general categories, each of which is described below.

    Adjusted EBITDA.
    Adjusted EBITDA is defined as net income attributable to Cerence Inc. before net income (loss) attributable to income tax (benefit) expense, other income (expense) items, net, depreciation and amortization expense, and excluding amortization of acquired intangible assets, stock-based compensation, and restructuring and other costs, net and impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets, if any. From time to time we may exclude from Adjusted EBITDA the impact of events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance. Other income (expense) items, net include interest expense, interest income, and other income (expense), net (as stated in our Condensed Consolidated Statement of Operations). Our management and Board of Directors use this financial measure to evaluate our operating performance. It is also a significant performance measure in our annual incentive compensation programs. 

    Restructuring and other costs, net.
    Restructuring and other costs, net include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business such as employee severance costs, consulting costs relating to our transformation initiatives, and costs for consolidating duplicate facilities.

    Amortization of acquired intangible assets.
    We exclude the amortization of acquired intangible assets from non-GAAP expense and income measures. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Providing a supplemental measure which excludes these charges allows management and investors to evaluate results “as-if” the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which our acquired intellectual property is treated in a comparable manner to our internally developed intellectual property. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Future acquisitions may result in the amortization of additional intangible assets.

    Stock-based compensation.
    Because of varying valuation methodologies, subjective assumptions and the variety of award types, we exclude stock-based compensation from our operating results. We evaluate performance both with and without these measures because compensation expense related to stock-based compensation is typically non-cash and awards granted are influenced by the Company’s stock price and other factors such as volatility that are beyond our control. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. As such, we do not include such charges in operating plans. Stock-based compensation will continue in future periods.

    Other expenses.
    We exclude certain other expenses that result from unplanned events outside the ordinary course of continuing operations, in order to measure operating performance and current and future liquidity both with and without these expenses. By providing this information, we believe management and the users of the financial statements are better able to understand the financial results of what we consider to be our organic, continuing operations. Included in these expenses are items such as other charges (credits), net, (gains) losses from extinguishment of debt, and changes in indemnification assets corresponding with the release of pre-spin liabilities for uncertain tax positions.

    Key Performance Indicators
    We believe that providing key performance indicators (“KPIs”) allows investors to gain insight into the way management views the performance of the business. We further believe that providing KPIs allows investors to better understand information used by management to evaluate and measure such performance. KPIs should not be considered superior to, or a substitute for, operating results prepared in accordance with GAAP. In assessing the performance of the business during the three months ended March 31, 2025, our management has reviewed the following KPIs, each of which is described below:

    • Percent of worldwide auto production with Cerence Technology (TTM): The number of Cerence enabled cars shipped as compared to IHS Markit car production data.
    • Change in number of Cerence connected cars shipped: The year-over-year change in the number of cars shipped with Cerence connected solutions. Amounts calculated on a TTM basis.
    • Change in Adjusted total billings YoY (TTM): The year over year change in total billings excluding Professional Services, prepay billings and adjusted for prepay consumption. TTM over prior year TTM.

    See the tables at the end of this press release for non-GAAP reconciliations to the most directly comparable GAAP measures.

    To learn more about Cerence AI, visit www.cerence.ai, and follow the company on LinkedIn.

    About Cerence Inc.
    Cerence Inc. (NASDAQ: CRNC) is a global industry leader in creating intuitive, seamless, AI-powered experiences across automotive and transportation. Leveraging decades of innovation and expertise in voice, generative AI, and large language models, Cerence powers integrated experiences that create safer, more connected, and more enjoyable journeys for drivers and passengers alike. With more than 500 million cars shipped with Cerence technology, the company partners with leading automakers, transportation OEMs, and technology companies to advance the next generation of user experiences. Cerence is headquartered in Burlington, Massachusetts, with operations globally and a worldwide team dedicated to pushing the boundaries of AI innovation. For more information, visit www.cerence.ai.

    CERENCE INC.
    Condensed Consolidated Statements of Operations
    (in thousands, except per share data)
    (unaudited)

      Three Months Ended     Six Months Ended  
      March 31,     March 31,  
      2025     2024     2025     2024  
    Revenues:                      
    License $ 51,460     $ 35,527     $ 74,185     $ 56,350  
    Connected services   12,648       13,597       26,355       110,417  
    Professional services   13,902       18,701       28,366       39,393  
    Total revenues   78,010       67,825       128,906       206,160  
    Cost of revenues:                      
    License   2,432       1,404       4,214       3,008  
    Connected services   4,979       5,359       11,290       12,662  
    Professional services   10,418       14,119       20,149       31,444  
    Amortization of intangible assets   —       —       —       103  
    Total cost of revenues   17,829       20,882       35,653       47,217  
    Gross profit   60,181       46,943       93,253       158,943  
    Operating expenses:                      
    Research and development   23,332       31,846       44,201       65,152  
    Sales and marketing   4,930       5,619       9,696       11,690  
    General and administrative   11,199       16,659       23,953       29,452  
    Amortization of intangible assets   536       555       1,090       1,100  
    Restructuring and other costs, net   2,832       4,551       13,894       5,256  
    Goodwill impairment   —       252,096       —       252,096  
    Total operating expenses   42,829       311,326       92,834       364,746  
    Income (loss) from operations   17,352       (264,383 )     419       (205,803 )
    Interest income   918       1,190       2,355       2,622  
    Interest expense   (2,716 )     (3,111 )     (6,109 )     (6,347 )
    Other income (expense), net   499       (25 )     771       1,397  
    Income (loss) before income taxes   16,053       (266,329 )     (2,564 )     (208,131 )
    (Benefit from) provision for income taxes   (5,603 )     11,647       68       45,988  
    Net income (loss) $ 21,656     $ (277,976 )   $ (2,632 )   $ (254,119 )
    Net income (loss) per share:                      
    Basic $ 0.50     $ (6.66 )   $ (0.06 )   $ (6.13 )
    Diluted $ 0.46     $ (6.66 )   $ (0.06 )   $ (6.13 )
    Weighted-average common share outstanding:                      
    Basic   43,223       41,724       43,059       41,452  
    Diluted   51,530       41,724       43,059       41,452  
                                   

    CERENCE INC.
    Condensed Consolidated Balance Sheets
    (in thousands, except per share amounts)

      March 31,     September 30,  
      2025     2024  
      (Unaudited)        
    ASSETS          
    Current assets:          
    Cash and cash equivalents $ 117,368       121,485  
    Marketable securities   5,413       5,502  
    Accounts receivable, net of allowances of $54 and $1,613   65,018       62,755  
    Deferred costs   4,737       5,286  
    Prepaid expenses and other current assets   39,633       70,481  
    Total current assets   232,169       265,509  
    Long-term marketable securities   –       3,453  
    Property and equipment, net   29,412       30,139  
    Deferred costs   15,960       18,051  
    Operating lease right of use assets   17,989       12,879  
    Goodwill   293,357       296,858  
    Intangible assets, net   551       1,706  
    Deferred tax assets   55,248       51,398  
    Other assets   20,860       22,365  
    Total assets $ 665,546     $ 702,358  
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Current liabilities:          
    Accounts payable $ 6,634     $ 3,959  
    Deferred revenue   49,740       52,822  
    Short-term operating lease liabilities   3,958       4,528  
    Short-term debt   60,056       87,094  
    Accrued expenses and other current liabilities   37,506       68,405  
    Total current liabilities   157,894       216,808  
    Long-term debt   197,593       194,812  
    Deferred revenue, net of current portion   119,954       114,354  
    Long-term operating lease liabilities   14,557       8,803  
    Other liabilities   26,279       26,484  
    Total liabilities   516,277       561,261  
    Stockholders’ Equity:          
    Common stock, $0.01 par value, 560,000 shares authorized; 43,254 and 41,924 shares issued and outstanding, respectively   433       419  
    Accumulated other comprehensive loss   (28,814 )     (25,912 )
    Additional paid-in capital   1,102,022       1,088,330  
    Accumulated deficit   (924,372 )     (921,740 )
    Total stockholders’ equity   149,269       141,097  
    Total liabilities and stockholders’ equity $ 665,546     $ 702,358  
                   

    CERENCE INC.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)

      Six Months Ended  
      March 31,  
      2025     2024  
    Cash flows from operating activities:          
    Net loss $ (2,632 )   $ (254,119 )
    Adjustments to reconcile net loss to net cash provided by (used in) operations:          
    Depreciation and amortization   5,793       5,384  
    Provision for credit loss reserve   208       6,065  
    Stock-based compensation   13,702       13,125  
    Non-cash interest expense   3,348       2,939  
    Loss on debt extinguishment   (327 )     –  
    Deferred tax (benefit) provision   (4,271 )     40,949  
    Goodwill impairment   –       252,096  
    Unrealized foreign currency transaction losses (gains)   345       (262 )
    Other, net   (33 )     474  
    Changes in operating assets and liabilities:          
    Accounts receivable   (8,029 )     (75 )
    Prepaid expenses and other assets   25,250       5,854  
    Deferred costs   2,041       3,423  
    Accounts payable   2,492       (292 )
    Accrued expenses and other liabilities   (23,532 )     (1,673 )
    Deferred revenue   10,365       (75,659 )
    Net cash provided by (used in) operating activities   24,720       (1,771 )
    Cash flows from investing activities:          
    Capital expenditures   (3,703 )     (2,776 )
    Purchases of marketable securities   –       –  
    Sale and maturities of marketable securities   3,493       3,912  
    Other investing activities   (716 )     (891 )
    Net cash (used in) provided by investing activities   (926 )     245  
    Cash flows from financing activities:          
    Proceeds from revolving credit facility   –       –  
    Proceeds from long-term debt, net of discount   –       –  
    Payments for long-term debt issuance costs   –       –  
    Principal payments of short-term debt   (26,964 )     –  
    Common stock repurchases for tax withholdings for net settlement of equity awards   (2,171 )     (9,744 )
    Principal payment of lease liabilities arising from a finance lease   (229 )     (202 )
    Proceeds from the issuance of common stock   2,175       10,461  
    Net cash (used in) provided by financing activities   (27,189 )     515  
    Effects of exchange rate changes on cash and cash equivalents   (722 )     (967 )
    Net change in cash and cash equivalents   (4,117 )     (1,978 )
    Cash and cash equivalents at beginning of period   121,485       101,154  
    Cash and cash equivalents at end of period $ 117,368     $ 99,176  
                   

    CERENCE INC.
    Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures
    (unaudited – in thousands)

      Three Months Ended     Six Months Ended  
      March 31,     March 31,  
      2025     2024     2025     2024  
    GAAP revenue $ 78,010     $ 67,825     $ 128,906     $ 206,160  
                           
    GAAP gross profit $ 60,181     $ 46,943     $ 93,253     $ 158,943  
    GAAP gross margin   77.1 %     69.2 %     72.3 %     77.1 %
                           
    GAAP total operating expenses $ 42,829     $ 311,326     $ 92,834     $ 364,746  
    Stock-based compensation   5,374       4,079       9,692       11,818  
    Amortization of intangible assets   536       555       1,090       1,203  
    Restructuring and other costs, net   2,832       4,551       13,894       5,256  
    Goodwill impairment   –       252,096       –       252,096  
    Non-GAAP total operating expenses $ 34,087     $ 50,045     $ 68,158     $ 94,373  
                           
    GAAP net income (loss) $ 21,656     $ (277,976 )   $ (2,632 )   $ (254,119 )
    Stock-based compensation*   5,931       4,745       10,739       13,125  
    Amortization of intangible assets   536       555       1,090       1,203  
    Restructuring and other costs, net*   2,832       4,551       13,894       5,256  
    Goodwill impairment   –       252,096       –       252,096  
    Depreciation   2,812       2,143       4,703       4,181  
    Total other expense, net   1,299       1,946       2,983       2,328  
    (Benefit from) provision for income taxes   (5,603 )     11,647       68       45,988  
    Adjusted EBITDA $ 29,463     $ (293 )   $ 30,845     $ 70,058  
                           
    GAAP net cash provided by (used in) operating activities $ 15,466     $ 1,044     $ 24,720     $ (1,771 )
    Capital expenditures   (2,343 )     (1,845 )     (3,703 )     (2,776 )
    Free cash flow $ 13,123     $ (801 )   $ 21,017     $ (4,547 )
    * – $3.0 million in stock-based compensation is included in Restructuring and other costs, net for the six months ended March 31, 2025.
       

    The MIL Network –

  • MIL-OSI: Alto Ingredients, Inc. Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    – Beverage-grade Liquid CO2 Processor Acquisition and Corporate Reorganization Deliver Improved Year-over-Year Gross Margin and Adjusted EBITDA –

    PEKIN, Ill., May 07, 2025 (GLOBE NEWSWIRE) — Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, reported its financial results for the quarter ended March 31, 2025.

    Bryon McGregor, President and Chief Executive Officer of Alto Ingredients said, “During the first quarter of 2025, gross margin and Adjusted EBITDA improved year-over-year, reflecting our operational uptime and carbon optimization initiative driven by our recent acquisition. Owning Alto Carbonic, the carbon dioxide processing plant adjacent to our Columbia facility, lowered combined costs, improved operations coordination and increased productivity across the facilities. The rightsizing of our company to align with our current footprint is on track to save approximately $8 million annually beginning in the second quarter of 2025, and the reorganization is yielding additional efficiencies.

    “Shifting production to ISCC renewable fuel for delivery into European markets, which is experiencing solid demand at a premium to fuel-grade ethanol, demonstrates Pekin’s flexibility to capitalize on trends. As a result, we grew ISCC sales as a percentage of our total renewable fuel volume sold at our Pekin Campus during the first quarter and partially offset the domestic industry softening of premiums on high quality alcohol and essential ingredients. We are monitoring a few positive movements, such as the growing state, and potentially national, year round adoption of E15 as well as opportunities under the Illinois Clean Transportation Standard Act (SB41). Our team is proactively evaluating alternatives for new revenue streams to leverage our flexible and unique facilities, and to drive long-term sustainable shareholder value.”

    Financial Results for the Three Months Ended March 31, 2025 Compared to 2024

    • Net sales were $226.5 million, compared to $240.6 million.
    • Cost of goods sold was $228.3 million, compared to $243.0 million.
    • Gross loss was $1.8 million, compared to a gross loss of $2.4 million. Net realized gains on derivatives were negligible for both quarters.
    • Selling, general and administrative expenses were $7.2 million, compared to $7.9 million.
    • Interest expense was $2.7 million, compared to $1.6 million.
    • Net loss attributable to common stockholders was $12.0 million, or $0.16 per share, compared to $12.0 million, or $0.17 per share.
    • Adjusted EBITDA was negative $4.4 million, including $1.6 million in unrealized gains on derivatives, compared to negative $7.1 million, including $3.2 million in unrealized gains on derivatives.

    Cash and cash equivalents were $26.8 million at March 31, 2025, compared to $35.5 million at December 31, 2024. At March 31, 2025, the company’s borrowing availability was $76.7 million including $11.7 million under the company’s operating line of credit and $65.0 million under its term loan facility, subject to certain conditions.

    First Quarter 2025 Results Conference Call
    Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, May 7, 2025, and will deliver prepared remarks via webcast followed by a question-and-answer session.

    The webcast for the conference call can be accessed from Alto Ingredients’ website at www.altoingredients.com. Alternatively, to receive a number and unique PIN by email, register here. To dial directly up to twenty minutes prior to the scheduled call time, please dial (833) 630-0017 domestically and (412) 317-1806 internationally. The webcast will be archived for replay on the Alto Ingredients website for one year. In addition, a telephonic replay will be available at 8:00 p.m. Eastern Time on Wednesday, May 7, 2025, through 8:00 p.m. Eastern Time on Wednesday, May 14, 2025. To access the replay, please dial (877) 344-7529. International callers should dial 00-1 412-317-0088. The pass code will be 8723820.

    Use of Non-GAAP Measures
    Management believes that certain financial measures not in accordance with generally accepted accounting principles (“GAAP”) are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision for income taxes, asset impairments, unrealized derivative gains and losses, acquisition-related expense and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company’s performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of the company’s results as reported under GAAP.

    About Alto Ingredients, Inc.
    Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.

    Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
    Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ projected outlook and future performance, including the timing and effects of its business rationalization, right-sizing and other cost savings initiatives; expectations around the growing state, and potentially national, adoption of E15 and opportunities under new legislation, including the Illinois Clean Transportation Standard Act; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints, including from tariffs; Alto Ingredients’ ability to timely and fully realize the results of its cost saving initiatives; regulatory developments and Alto Ingredients’ ability to successfully pursue and secure opportunities under existing and new legislation. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 13, 2025.

    Company IR and Media Contact:
    Michael Kramer, Alto Ingredients, Inc., 916-403-2755
    Investorrelations@altoingredients.com

    IR Agency Contact:
    Kirsten Chapman, Alliance Advisors Investor Relations, 415-433-3777
    altoinvestor@allianceadvisors.com

       
    ALTO INGREDIENTS, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited, in thousands, except per share data)
       
      Three Months Ended
    March 31,
        2025       2024  
    Net sales $ 226,540     $ 240,629  
    Cost of goods sold   228,347       243,029  
    Gross loss   (1,807 )     (2,400 )
    Selling, general and administrative expenses   (7,190 )     (7,932 )
    Loss from operations   (8,997 )     (10,332 )
    Interest expense, net   (2,729 )     (1,634 )
    Other income, net   47       241  
    Loss before provision for income taxes   (11,679 )     (11,725 )
    Provision for income taxes   —       —  
    Net loss $ (11,679 )   $ (11,725 )
    Preferred stock dividends $ (312 )   $ (315 )
    Net loss attributable to common stockholders $ (11,991 )   $ (12,040 )
    Net loss per share, basic and diluted $ (0.16 )   $ (0.17 )
    Weighted-average shares outstanding, basic and diluted   73,836       72,766  
                   
     
    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands, except par value)
     
    ASSETS   March 31, 2025       December 31, 2024  
    Current Assets:      
    Cash and cash equivalents $ 26,778     $ 35,469  
    Restricted cash   393       742  
    Accounts receivable, net   65,461       58,217  
    Inventories   50,609       49,914  
    Derivative instruments   4,071       3,313  
    Other current assets   6,149       5,463  
    Total current assets   153,461       153,118  
    Property and equipment, net   212,624       214,742  
    Other Assets:        
    Right of use operating lease assets, net   19,416       20,553  
    Intangible assets, net   8,142       4,509  
    Other assets   8,566       8,516  
    Total other assets   36,124       33,578  
    Total Assets $ 402,209     $ 401,438  
                   
     
    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS (CONTINUED)
    (unaudited, in thousands, except par value)
     
    LIABILITIES AND STOCKHOLDERS’ EQUITY   March 31, 2025       December 31, 2024  
    Current Liabilities:      
    Accounts payable $ 17,029     $ 20,369  
    Accrued liabilities   23,819       24,214  
    Current portion – operating leases   4,968       4,851  
    Derivative instruments   301       1,177  
    Other current liabilities   6,999       7,193  
    Total current liabilities   53,116       57,804  
           
    Long-term debt   110,664       92,904  
    Operating leases, net of current portion   15,641       16,913  
    Other liabilities   8,868       8,754  
    Total Liabilities   188,289       176,375  
     
    Stockholders’ Equity:  
    Preferred stock, $0.001 par value; 10,000 shares authorized; Series A: no shares issued and outstanding as of March 31, 2025 and December 31, 2024 Series B: 927 shares issued and outstanding as of March 31, 2025 and December 31, 2024   1       1  
    Common stock, $0.001 par value; 300,000 shares authorized; 76,497 and 76,565 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively   77       77  
    Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of March 31, 2025 and December 31, 2024   —       —  
    Additional paid-in capital   1,045,024       1,044,176  
    Accumulated other comprehensive income   4,975       4,975  
    Accumulated deficit   (836,157 )     (824,166 )
    Total Stockholders’ Equity   213,920       225,063  
    Total Liabilities and Stockholders’ Equity $ 402,209     $ 401,438  
                   
     Reconciliation of Adjusted EBITDA to Net Loss Three Months Ended
    March 31,
    (in thousands) (unaudited)             2025       2024  
    Net loss $ (11,679 )   $ (11,725 )
    Adjustments:    
    Interest expense   2,729       1,634  
    Interest income   (84 )     (175 )
    Unrealized derivatives gains   (1,634 )     (3,190 )
    Acquisition-related expense   —       675  
    Depreciation and amortization expense   6,266       5,728  
    Total adjustments   7,277       4,672  
    Adjusted EBITDA $ (4,402 )   $ (7,053 )
     
    Segment Financials
    (in thousands) (unaudited)    		   Three Months Ended
    March 31,
        2025       2024  
    Net sales              
    Pekin Campus production, recorded as gross:              
    Alcohol sales $ 107,234     $ 108,350  
    Essential ingredient sales   44,618       46,709  
    Intersegment sales   297       321  
    Total Pekin Campus sales   152,149       155,380  
    Marketing and distribution:              
    Alcohol sales, gross $ 48,997     $ 54,431  
    Alcohol sales, net   61       34  
    Intersegment sales   2,506       2,752  
    Total marketing and distribution sales   51,564       57,217  
         
    Western production, recorded as gross:    
    Alcohol sales $ 16,194     $ 20,231  
    Essential ingredient sales   7,808       7,826  
    Intersegment sales   264       —  
    Total Western production sales   24,266       28,057  
         
    Corporate and other   1,628       3,048  
    Intersegment eliminations   (3,067 )     (3,073 )
    Net sales as reported $ 226,540     $ 240,629  
     
    Cost of goods sold:
    Pekin Campus production $ 155,222     $ 151,112  
    Marketing and distribution   47,650       53,685  
    Western production   25,524       36,517  
    Corporate and other   1,681       2,794  
    Intersegment eliminations   (1,730 )     (1,079 )
    Cost of goods sold as reported $ 228,347     $ 243,029  
           
    Gross profit (loss):      
    Pekin Campus production $ (3,073 )   $ 4,268  
    Marketing and distribution   3,914       3,532  
    Western production   (1,258 )     (8,460 )
    Corporate and other   (53 )     254  
    Intersegment eliminations   (1,337 )     (1,994 ) 
    Gross loss as reported $ (1,807 )   $ (2,400 ) 
                 
    Sales and Operating Metrics (unaudited)
    (in thousands) (unaudited)
    		 Three Months Ended
    March 31,
        2025       2024  
    Alcohol Sales (gallons in millions)      
    Pekin Campus renewable fuel gallons sold   32.6       31.8  
    Western production renewable fuel gallons sold   8.3       11.2  
    Third party renewable fuel gallons sold   24.4       29.7  
    Total renewable fuel gallons sold   65.3       72.7  
    Specialty alcohol gallons sold   24.3       26.3  
    Total gallons sold   89.6       99.0  
           
    Sales Price per Gallon      
    Pekin Campus $ 1.90     $ 1.90  
    Western production $ 1.95     $ 1.80  
    Marketing and distribution $ 2.01     $ 1.83  
    Average sales price per gallon $ 1.93     $ 1.86  
           
    Alcohol Production (gallons in millions)      
    Pekin Campus   54.3       53.6  
    Western production   8.3       9.7  
    Total   62.6       63.3  
           
    Corn Cost per Bushel      
    Pekin Campus $ 4.65     $ 4.73  
    Western production $ 5.95     $ 5.89  
    Total $ 4.81     $ 4.92  
           
    Average Market Metrics    
    PLATTS Ethanol price per gallon $ 1.71     $ 1.56  
    CME Corn cost per bushel $ 4.72     $ 4.35  
    Board corn crush per gallons (1) $ 0.02     $ 0.01  
         
    Essential Ingredients Sold (thousand tons)    
    Pekin Campus:    
    Distillers grains   90.7       87.7  
    CO2   45.3       39.1  
    Corn wet feed   34.5       25.6  
    Corn dry feed   23.8       18.9  
    Corn oil and germ   19.6       17.8  
    Corn meal   9.4       8.3  
    Syrup and other   8.2       9.5  
    Yeast   6.4       5.7  
    Total Pekin Campus essential ingredients sold   237.9       212.6  
         
    Western production:    
    Distillers grains   58.1       71.8  
    CO2   12.6       13.3  
    Syrup and other   0.8       14.2  
    Corn oil   1.4       1.5  
    Total Western production essential ingredients sold   72.9       100.8  
         
    Total Essential Ingredients Sold   310.8       313.4  
         
         
    Essential ingredients return % (2)    
    Pekin Campus return   48.0 %     52.1 %
    Western production return   49.0 %     39.3 %
    Consolidated total return   48.2 %     49.8 %
         

    ________________

    (1)  Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn.
    (2)  Essential ingredients revenues as a percentage of total corn costs consumed.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    Highlights

    • Total revenue of $1.54 billion, up 14% year over year
    • Product revenue of $459 million, up 12% year over year
    • Billings of $1.60 billion, up 14% year over year1
    • Unified SASE ARR2up 26% and Security Operations ARR2up 30%, year over year
    • Record first quarter GAAP operating margin of 29%
    • Record first quarter Non-GAAP operating margin of 34%1
    • Record Cash flow from operations of $863 million
    • Record Free cash flow of $783 million1

    SUNNYVALE, Calif., May 07, 2025 (GLOBE NEWSWIRE) — Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the first quarter ended March 31, 2025.

    “We are pleased to report another strong quarter as non-GAAP operating margin increased 570 basis points year over year to a first quarter record of 34%, while billings grew 14% year over year,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “We continue to accelerate our growth strategy by investing in the rapidly expanding Unified SASE and Security Operations markets, while strengthening our leadership in Secure Networking. Leveraging our deep expertise in networking and security convergence, a strong track record of AI-driven innovation, and seamless product development and integration through our FortiOS operating system, we have established ourselves as the leader in organic innovation and will continue setting the industry standard in cybersecurity.”

    Financial Highlights for the First Quarter of 2025

    • Revenue: Total revenue was $1.54 billion for the first quarter of 2025, an increase of 13.8% compared to $1.35 billion for the same quarter of 2024.
    • Product Revenue: Product revenue was $459.1 million for the first quarter of 2025, an increase of 12.3% compared to $408.9 million for the same quarter of 2024.
    • Service Revenue: Service revenue was $1.08 billion for the first quarter of 2025, an increase of 14.4% compared to $944.4 million for the same quarter of 2024.
    • Billings1: Total billings were $1.60 billion for the first quarter of 2025, an increase of 13.5% compared to $1.41 billion for the same quarter of 2024.
    • Remaining performance obligations: Remaining performance obligations were $6.49 billion as of March 31, 2025, an increase of 11.7% compared to $5.81 billion as of March 31, 2024. We expect to recognize approximately $3.38 billion as revenue over the next 12 months, an increase of 15.4% compared to $2.93 billion as of March 31, 2024.
    • Unified SASE ARR2: Unified SASE ARR was $1.15 billion as of March 31, 2025, an increase of 25.7% compared to $914.7 million as of March 31, 2024.
    • Security Operations ARR2: Security Operations ARR was $434.5 million as of March 31, 2025, an increase of 30.3% compared to $333.5 million as of March 31, 2024.
    • GAAP Operating Income and Margin: GAAP operating income was $453.8 million for the first quarter of 2025, representing a GAAP operating margin of 29.5%. GAAP operating income was $321.2 million for the same quarter of 2024, representing a GAAP operating margin of 23.7%.
    • Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $526.2 million for the first quarter of 2025, representing a non-GAAP operating margin of 34.2%. Non-GAAP operating income was $386.1 million for the same quarter of 2024, representing a non-GAAP operating margin of 28.5%.
    • GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $433.4 million for the first quarter of 2025, compared to GAAP net income of $299.3 million for the same quarter of 2024. GAAP diluted net income per share was $0.56 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.39 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.
    • Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was $452.3 million for the first quarter of 2025, compared to non-GAAP net income of $333.9 million for the same quarter of 2024. Non-GAAP diluted net income per share was $0.58 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to $0.43 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.
    • Cash Flow: Cash flow from operations was $863.3 million for the first quarter of 2025, compared to $830.4 million for the same quarter of 2024. Cash flow from operations for the first quarter of 2025 includes $14.0 million proceeds from an intellectual property matter.
    • Free Cash Flow1: Free cash flow was $782.8 million for the first quarter of 2025, compared to $608.5 million for the same quarter of 2024.

    Guidance

    For the second quarter of 2025, Fortinet currently expects:

    • Revenue in the range of $1.590 billion to $1.650 billion
    • Billings in the range of $1.685 billion to $1.765 billion
    • Non-GAAP gross margin in the range of 80.0% to 81.0%
    • Non-GAAP operating margin in the range of 31.5% to 32.5%
    • Diluted non-GAAP net income per share in the range of $0.58 to $0.60, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 773 million to 777 million.

    For the fiscal year 2025, Fortinet currently expects:

    • Revenue in the range of $6.650 billion to $6.850 billion
    • Service revenue in the range of $4.575 billion to $4.725 billion
    • Billings in the range of $7.200 billion to $7.400 billion
    • Non-GAAP gross margin in the range of 79.0% to 81.0%
    • Non-GAAP operating margin in the range of 31.5% to 33.5%
    • Diluted non-GAAP net income per share in the range of $2.43 to $2.49, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 769 million to 779 million.

    These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

    Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, gain on intellectual property matters, gain on bargain purchase related to acquisition, gain from an equity method investment and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

    1 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.
    2 Annual Recurring Revenue or ARR is defined as the annualized value of renewable / recurring customer agreements as of the measurement date, assuming any contract that expires during the next 12 months is renewed at its existing value.

    Conference Call Details

    Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.

    Second Quarter 2025 Conference Participation Schedule:

    • J.P. Morgan Global Technology, Media and Communications Conference
      May 13, 2025
    • Bank of America Global Technology Conference
      June 3, 2025

    Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s website. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet’s website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.

    About Fortinet (www.fortinet.com)

    Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTs”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

    Copyright © 2025 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAgent, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAppSec, FortiAuthenticator, FortiBranchSASE, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCART, FortiCASB, FortiCentral, FortiCNP, FortiConnect, FortiController, FortiConverter, FortiCSPM, FortiCWP, FortiDAST, FortiDATA, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevice, FortiDevSec, FortiDLP, FortiEdge, FortiEDR, FortiEndpoint, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex, FortiFone, FortiGSLB, FortiGuest, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPenTest, FortiPhish, FortiPoint, FortiPoints, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiScanner, FortiSDNConnector, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiSRA, FortiSwitch, FortiTelemetry, FortiTester, FortiTIP, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM, FortiXDR, Lacework FortiCNAPP, Linksys, Intelligent Mesh, Velop, Max-Stream, Performance Perfected and SECURITY FABRIC. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

    FTNT-F

    Forward-Looking Statements

    This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future growth and market share gains, our strategy going forward, and guidance and expectations around future financial results, including guidance and expectations for the second quarter and full year 2025, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, rising interest rates or reduced information technology spending; supply chain challenges; negative impacts from the ongoing war in Ukraine and its related macroeconomic effects and our decision to reduce operations in Russia; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; sales execution risks, including risks in connection with the timing and completion of large strategic deals; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive, including advances in artificial intelligence; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by competition and pricing pressure; excess product inventory for any reason, including those caused by the effects of increased inflation and interest rates in certain geographies and the war in Ukraine; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine or tensions between China and Taiwan, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (“SEC”), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

    Non-GAAP Financial Measures

    We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

    Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

    Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business and cash flows. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

    Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment and excluding any significant non-recurring items, such as proceeds from intellectual property matters. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures and net of proceeds from intellectual property matters, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes cash flows from significant non-recurring items, such as proceeds from intellectual property matters, investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our proceeds from intellectual property matters, our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.

    Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, amortization of acquired intangible assets, less gain on intellectual property matters and, when applicable, other significant non-recurring items in a given quarter. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

    Non-GAAP net income and diluted net income per share. We define non-GAAP net income as net income plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for a gain on bargain purchase related to acquisition, a gain from an equity method investment related to acquisition and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income and diluted net income per share calculated in accordance with GAAP.

    FORTINET, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in millions)
     
      March 31,
    2025    		   December 31,
    2024
    		  
    ASSETS                
    CURRENT ASSETS:                
    Cash and cash equivalents $ 3,596.6     $ 2,875.9    
    Short-term investments   1,183.9       1,190.6    
    Accounts receivable—net   1,174.0       1,463.4    
    Inventory   362.7       315.5    
    Prepaid expenses and other current assets   125.4       126.1    
       Total current assets   6,442.6       5,971.5    
    LONG-TERM INVESTMENTS   35.2       —    
    PROPERTY AND EQUIPMENT—NET   1,403.8       1,349.5    
    DEFERRED CONTRACT COSTS   636.2       622.9    
    DEFERRED TAX ASSETS   1,411.6       1,335.6    
    GOODWILL AND OTHER INTANGIBLE ASSETS—NET   357.4       350.4    
    OTHER ASSETS   120.2       133.2    
    TOTAL ASSETS $ 10,407.0     $ 9,763.1    
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    CURRENT LIABILITIES:                
    Accounts payable $ 224.5     $ 190.9    
    Accrued liabilities   415.0       337.9    
    Accrued payroll and compensation   250.2       255.7    
    Current portion of long-term debt   498.7       —    
    Deferred revenue   3,339.4       3,276.2    
       Total current liabilities   4,727.8       4,060.7    
    DEFERRED REVENUE   3,079.0       3,084.7    
    LONG-TERM DEBT   496.2       994.3    
    OTHER LIABILITIES   141.1       129.6    
       Total liabilities   8,444.1       8,269.3    
    COMMITMENTS AND CONTINGENCIES                
    STOCKHOLDERS’ EQUITY:                
    Common stock   0.8       0.8    
    Additional paid-in capital   1,668.7       1,636.2    
    Accumulated other comprehensive loss   (22.9 )     (26.1 )  
    Retained earnings (accumulated deficit)   316.3       (117.1 )  
                Total stockholders’ equity   1,962.9       1,493.8    
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 10,407.0     $ 9,763.1    
     
    FORTINET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited, in millions, except per share amounts)
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    REVENUE:                
    Product $ 459.1     $ 408.9    
    Service   1,080.6       944.4    
          Total revenue   1,539.7       1,353.3    
    COST OF REVENUE:                
    Product   149.9       182.8    
    Service   143.2       121.9    
          Total cost of revenue   293.1       304.7    
    GROSS PROFIT:                
    Product   309.2       226.1    
    Service   937.4       822.5    
          Total gross profit   1,246.6       1,048.6    
    OPERATING EXPENSES:                
    Research and development   198.6       173.0    
    Sales and marketing   542.7       501.1    
    General and administrative   57.8       54.4    
    Gain on intellectual property matters   (6.3 )     (1.1 )  
          Total operating expenses   792.8       727.4    
    OPERATING INCOME   453.8       321.2    
    INTEREST INCOME   44.3       32.2    
    INTEREST EXPENSE   (4.9 )     (5.1 )  
    OTHER INCOME (EXPENSE)—NET   26.1       (2.9 )  
    INCOME BEFORE INCOME TAXES AND GAIN (LOSS) FROM EQUITY METHOD
    INVESTMENTS    		   519.3       345.4    
    PROVISION FOR INCOME TAXES   96.5       39.5    
    GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS   10.6       (6.6 )  
    NET INCOME $ 433.4     $ 299.3    
    Net income per share:                
    Basic $ 0.56     $ 0.39    
    Diluted $ 0.56     $ 0.39    
    Weighted-average shares outstanding:                
    Basic   768.3       762.4    
    Diluted   776.8       770.5    
     
    FORTINET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in millions)
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    CASH FLOWS FROM OPERATING ACTIVITIES:                
    Net income $ 433.4     $ 299.3    
    Adjustments to reconcile net income to net cash provided by operating activities:                
             Stock-based compensation   66.1       62.3    
             Amortization of deferred contract costs   78.0       72.0    
             Depreciation and amortization   35.8       28.6    
             Amortization of investment discounts   (10.3 )     (12.2 )  
             Other   (35.5 )     9.9    
             Changes in operating assets and liabilities, net of impact of business combinations:                
                      Accounts receivable—net   303.9       405.6    
                      Inventory   (34.1 )     36.5    
                      Prepaid expenses and other current assets   3.4       (0.1 )  
                      Deferred contract costs   (91.3 )     (66.5 )  
                      Deferred tax assets   (30.0 )     (73.9 )  
                      Other assets   1.5       (6.2 )  
                      Accounts payable   24.6       (61.6 )  
                      Accrued liabilities   63.7       105.0    
                      Accrued payroll and compensation   (8.2 )     (27.4 )  
                      Deferred revenue   57.0       54.8    
                      Other liabilities   5.3       4.3    
                             Net cash provided by operating activities   863.3       830.4    
    CASH FLOWS FROM INVESTING ACTIVITIES:                
    Purchases of investments   (503.0 )     (436.1 )  
    Sales of investments   2.8       —    
    Maturities of investments   466.9       393.4    
    Purchases of property and equipment   (66.5 )     (221.9 )  
    Payments made in connection with business combinations, net of cash acquired   (11.2 )     (5.7 )  
    Other   0.2       —    
                             Net cash used in investing activities   (110.8 )     (270.3 )  
    CASH FLOWS FROM FINANCING ACTIVITIES:                
    Proceeds from issuance of common stock   20.2       13.4    
    Taxes paid related to net share settlement of equity awards   (52.9 )     (42.9 )  
    Other   —       (0.8 )  
                             Net cash used in financing activities   (32.7 )     (30.3 )  
    EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   0.9       (1.4 )  
    NET INCREASE IN CASH AND CASH EQUIVALENTS   720.7       528.4    
    CASH AND CASH EQUIVALENTS—Beginning of period   2,875.9       1,397.9    
    CASH AND CASH EQUIVALENTS—End of period $ 3,596.6     $ 1,926.3    
     
    Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
    (Unaudited, in millions, except per share amounts)
     
    Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income and diluted net income per share
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    Reconciliation of non-GAAP operating income:                
    GAAP operating income $ 453.8     $ 321.2    
    GAAP operating margin   29.5 %     23.7 %  
    Add back:                
        Stock‐based compensation   66.9       63.0    
        Amortization of acquired intangible assets   11.8       3.0    
        Gain on intellectual property matters   (6.3 )     (1.1 )  
    Non‐GAAP operating income $ 526.2     $ 386.1    
    Non‐GAAP operating margin   34.2 %     28.5 %  
                     
    Reconciliation of non-GAAP net income:                
    GAAP net income $ 433.4     $ 299.3    
    Add back:                
        Stock‐based compensation   66.9       63.0    
        Amortization of acquired intangible assets   11.8       3.0    
        Gain on intellectual property matters   (6.3 )     (1.1 )  
        Gain on bargain purchase (a)   (39.9 )     —    
        Tax adjustment (b)   (2.8 )     (30.3 )  
        Gain from equity method investment (c)   (10.8 )     —    
    Non-GAAP net income $ 452.3     $ 333.9    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income $ 452.3     $ 333.9    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
        Non-GAAP shares used in diluted net income per share calculations   776.8       770.5    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted $ 0.58     $ 0.43    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Reconciliation of non-GAAP net income per share, diluted                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    GAAP net income per share, diluted $ 0.56     $ 0.39    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Add back:                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
        Non-GAAP adjustments to net income per share   0.02       0.04    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted $ 0.58     $ 0.43    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    (a) To exclude a $39.9 million gain on bargain purchase related to our acquisition of Linksys Holdings, Inc. (“Linksys”) in the three months ended March 31, 2025.
    (b) Non-GAAP financial information is adjusted to an effective tax rate of 18% and 17% in the three months ended March 31, 2025 and 2024, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
    (c) To exclude a $10.8 million gain from equity method investment in Linksys resulted from our acquisition of Linksys in the three months ended March 31, 2025.
     
    Reconciliation of net cash provided by operating activities to free cash flow
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    Net cash provided by operating activities $ 863.3     $ 830.4    
    Less: Purchases of property and equipment   (66.5 )     (221.9 )  
    Less: Proceeds from intellectual property matter   (14.0 )     —    
    Free cash flow $ 782.8     $ 608.5    
    Net cash used in investing activities $ (110.8 )   $ (270.3 )  
    Net cash used in financing activities $ (32.7 )   $ (30.3 )  
     
    Reconciliation of total revenue to total billings
     
      Three Months Ended
    		  
      March 31,
    2025    		   March 31,
    2024
    		  
    Total revenue $ 1,539.7   $ 1,353.3    
    Add: Change in deferred revenue   57.5     54.9    
    Less: Deferred revenue balance acquired in business acquisitions   —     (1.0 )  
    Total billings $ 1,597.2   $ 1,407.2    
     
    Investor Contact: Media Contact:
     
    Aaron Ovadia
    Fortinet, Inc.
    408-235-7700
    investors@fortinet.com    		 Michelle Zimmermann
    Fortinet, Inc.
    408-235-7700
    pr@fortinet.com

    The MIL Network –

  • MIL-OSI: Veeco Announces Over $35 Million in Advanced Packaging Lithography System Orders From IDM & OSAT Customers

    Source: GlobeNewswire (MIL-OSI)

    PLAINVIEW, N.Y., May 07, 2025 (GLOBE NEWSWIRE) — Veeco Instruments Inc. (NASDAQ: VECO) today announced its received over $35 million of orders for its AP300™ Lithography systems in recent quarters from a wide-range of IDM and OSAT customers. The orders are expected to be delivered in 2025, and are supporting capacity expansions driven by several end markets, including AI and high-performance computing. Veeco’s Advanced Packaging Lithography business is expected to deliver strong year-over-year growth in 2025.

    Veeco’s AP300™ Lithography systems offer industry-leading performance specifically designed for Advanced Packaging applications, lower total cost of ownership, industry-leading uptime, and process flexibility. Recent orders highlight accelerating market demand for Veeco’s lithography systems given the tools’ ability to handle next generation advanced packaging process needs, such as copper (Cu) pillar for 2.5/3D packaging, flip chip bumping, fan-out WLP (FOWLP) and high-density fan-out packaging.

    “Global megatrends such as AI and high-performance computing are driving strong demand for enabling technologies in advanced packaging,” commented Adrian Devasahayam, Ph.D., Veeco’s Senior Vice President, Product Line Management. “Customers require a lithography platform that can handle a wide range of advanced packaging process needs with best-in-class process capabilities and low cost of ownership. Our AP300 platform is distinguished as a solution that sets the industry standard for challenging advanced packaging processes required for high-performance, next-generation devices.”

    About Veeco
    Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, single wafer etch & clean, lithography, and metal organic chemical vapor deposition (MOCVD) technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.

    To the extent that this news release discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the risks discussed in the Business Description and Management’s Discussion and Analysis sections of Veeco’s Annual Report on Form 10-K for the year ended December 31, 2024 and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.

    Veeco Contacts:                                
    Investors: Anthony Pappone | (516) 500-8798 | apappone@veeco.com
    Media: Javier Banos | (516) 673-7328 | jbanos@veeco.com

    The MIL Network –

  • MIL-OSI USA: VIDEO: After Pressure from Pressley, Treasury Secretary Says Ending Tariffs on Essential Baby Products “Under Consideration”

    Source: United States House of Representatives – Congresswoman Ayanna Pressley (MA-07)

    Pressley Slammed Trump’s Chaotic Tariff War, Highlighted Harmful Impact on Families With Babies and Young Children

    Video (YouTube)

    WASHINGTON – In a House Financial Services Committee hearing, Congresswoman Ayanna Pressley (MA-07) pressed Treasury Secretary Scott Bessent about the harmful impact of Trump’s tariffs on families with young children and asked if he would support an exemption to tariffs on baby products and other items that parents need to care for their kids, such as car seats. In response to her sharp questioning, Secretary Bessent conceded that such an exemption was “under consideration.”

    Congresswoman Pressley also underscored the harm felt by small business owners, parents, and other constituents in the Massachusetts 7th who are dealing with rising costs due to Trump’s tariffs and urged the Trump Administration to immediately reverse course.

    Last month, Congresswoman Pressley joined 45 colleagues in sending a Congressional letter to the Trump Administration imploring them to end tariffs on essential baby goods.

    A full transcript of her line of questioning is available below and the full video is available here.

    Transcript: After Pressure from Pressley, Treasury Secretary Says Ending Tariffs on Essential Baby Products “Under Consideration”
    House Financial Services Committee
    May 7, 2025

    REP. PRESSLEY: Secretary Bessent, you have heard from Democrats publicly and I’m certain you’ve heard from Republicans privately that this administration’s reckless and chaotic tariff policy is wreaking havoc on our economy.

    Rather than delivering stability for our country, this Trump tariff tantrum has been inconsistent, counterproductive, and disconnected from reality. 

    In my district, the Massachusetts 7th, I am hearing it from everyone.

    Small business owners are reeling from the unpredictable on-again, off-again tariffs. They’re holding back on expansion, delaying hiring, and bracing for the impact.

    Local and state officials are telling me about the effect tariffs will have on our state budget. Simultaneously, Massachusetts will see energy bills increase while revenue from tourism will decrease.

    But I want to focus on the constituent outreach that I’ve received from everyday families who are just fighting to make ends meet.

    Yes or no. Mr. Secretary, do you know what a car seat is?

    SEC. BESSENT: I have two children, yes. 

    REP. PRESSLEY: I figured as much, it’s correct you and your husband have two children.

    So I am sure you know that car seats are absolutely essential for families when traveling with babies and toddlers to school, to worship, to doctor’s appointments, just everyday living. 

    But not only are car seats essential, they are the law of the land. It’s the law of the land in 50 states. So there’s no getting around that.

    Mr. Secretary, what’s your estimate of how many babies are born in the United States each year?

    SEC. BESSENT: I’m gonna guess 2-3 million. 

    REP. PRESSLEY: Well, while the number fluctuates, there have consistently been more than 3.5 million babies born in the United States. That means millions of families in this country are doing what? Buying a car seat, because it’s essential and it is the law of the land in all 50 states. 

    But now, that cost is going up because Trump has announced up to 145% tariffs on Chinese imported products.

    Approximately, 9 out of every 10 car seats in the U.S. come from China. That’s a steep cost, a steep cost hike for families all over the country. The price is up in Republican districts and in Democratic districts.

    And it’s not just the car seats that are impacted. We’re talking about strollers, cribs, high chairs. No family is exempt from the harm of these Trump tariffs on essential baby products.

    But don’t just take my word for it.

    Mr. Chair, I would like to enter into the record a Yahoo Finance article from May 2025 entitled, “First Year Baby Expenses Already Top $20,000 and Tariffs Are Adding to the Bill As China Dominates Key Imports.”

    CHAIR: Without objection.

    REP. PRESSLEY: Look, I support improving manufacturing in America, but that is not going into effect overnight, like these tariffs are. There needs to be an exemption to help America’s families.

    Trump has used his power for tariff exemptions on thermoplastics, semiconductors, but what about baby products?

    Mr. Secretary, do you support an exemption to tariffs on items that parents need to care for their kids? Yes or no?

    SEC. BESSENT: Congresswoman, what you’re referring to are—

    REP. PRESSLEY: Yes or no.

    SEC. BESSENT: What you’re referring to are–

    REP. PRESSLEY: I’m reclaiming my time because I don’t want you to filibuster and give me some macroeconomic answer. Families at home are hurting … just give me a direct answer. 

    SEC. BESSENT: I am going to agree with you. 

    REP. PRESSLEY: So yes, you do support an exemption on tariffs for products that are essential for families for their babies?

    SEC. BESSENT: We are considering exemptions on E-4 items, which…

    REP. PRESSLEY: I’m sorry I have to reclaim my time. I’m reclaiming my time. 

    Mr. Chair. I am reclaiming my time. Give me my time back. I’m reclaiming my time.

    I just want a simple yes or no: do you support an exemption to tariffs on items that parents need to care for their kids? Because you all claim you’re pro-family.

    I cannot hear the words you say because I see the things that you do, every day. So clear it up.

    Yes or no. Do you support an exemption to tariffs on items that parents need to care for their babies? 

    SEC. BESSENT: It is under consideration. 

    REP. PRESSLEY: Great. Good.

    I don’t know what’s stopping an exemption from going into effect today, so do it now.

    In Donald Trump’s America, yesterday’s price is not today’s price. Costs are going up. Everyone is suffering, especially our families with young children.

    Mr. Secretary, I’m making an appeal to you on behalf of the people of this country. Please tell occupant Trump to reverse course and stop hurting America’s families.

    I yield back.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Cassidy, Rosen Introduce Legislation to Protect Sensitive Federal Data from DeepSeek, Adversarial AI Technologies

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy
    WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA) and Jacky Rosen (D-NV) introduced the Protection Against Foreign Adversarial Artificial Intelligence Act of 2025 to prohibit federal contractors from using DeepSeek, an artificial intelligence (AI) platform with direct ties to the Chinese Communist Party (CCP), to fulfill contracts with federal agencies. DeepSeek poses a significant potential national security threat and is required by Chinese law to share the data it collects with the government of the People’s Republic of China and its intelligence agencies. Several U.S. states and allied nations have already moved to block DeepSeek from government devices due to critical security concerns.
    “AI is a powerful tool which can be used to enhance things like medicine and education. But in the wrong hands, it can be weaponized. By feeding sensitive data into systems like DeepSeek, we give China another weapon,” said Dr. Cassidy.
    “The U.S. must take steps to ensure Americans’ data and our government systems are protected against cyber threats from foreign adversaries,” said Senator Rosen. “This bipartisan legislation would prevent federal contractors from using Deepseek, a CCP-linked AI platform, when carrying out government work. I will continue working across party lines to bolster our national security and protect Americans’ data.”
    Specifically, the Protection Against Foreign Adversarial Artificial Intelligence Act of 2025 would:
    Prohibit federal contractors with an active federal contract from using DeepSeek, and any successor application developed by High-Flyer, for the fulfillment, assistance, execution, or otherwise support to complete, or support in part, a contract with an agency of the U.S. federal government. 
    Allow the U.S. Secretary of Commerce, in consultation with the U.S. Secretary of Defense, may provide a waiver, if necessary, on a case-by-case basis for national security-related or research purposes.
    Include a report to Congress from the U.S. Secretary of Commerce, in consultation with the U.S. Secretary of Defense, on the national security and economic espionage threats posed by AI platforms from adversarial nations, such as China, North Korea, Iran, and Russia.
    Background
    Cassidy has been a consistent champion for online privacy and user data protection. Earlier this year, he introduced legislation to protect U.S. servicemembers’ data from adversarial nations like China and has worked to ensure that Americans can delete their personal data collected by private data broker companies.

    MIL OSI USA News –

  • MIL-OSI USA: Luján, Colleagues Introduce Bipartisan Legislation to Improve AI Testing and Evaluation Systems, Safeguard Americans Against Risks

    US Senate News:

    Source: US Senator for New Mexico Ben Ray Luján

    Washington, D.C. – Today, U.S. Senators Ben Ray Luján (D-N.M.), Marsha Blackburn (R-Tenn.), Dick Durbin (D-Ill.), Jim Risch (R-Idaho), and Peter Welch (D-VT) introduced the Testing and Evaluation Systems for Trusted Artificial Intelligence (TEST) AI Act of 2025, legislation to improve the federal government’s capacity to test and evaluate Artificial Intelligence (AI) systems to drive innovation, protect national security, and build trust and confidence for Americans utilizing AI systems.

    The TEST AI Act aims to ensure that AI systems used by federal agencies are trustworthy, secure, and objective, and lays the groundwork for broader national AI evaluation standards through a transparent and collaborative approach. The TEST AI Act would direct the collaboration between the National Institute for Standards and Technology (NIST) and the Department of Energy (DOE) to establish a testbed pilot program to develop and refine measurement standards for evaluating AI systems.

    “AI has reached every sector in our country and driven innovation, but we cannot ignore the vulnerabilities and risks that come with it. While these systems have the power to change lives, they can also fall short – providing inaccurate or biased data – and are at risk of malicious attacks or misuse by our adversaries,” said Senator Luján. “The TEST AI Act addresses these shortcomings by creating government testbeds to better evaluate AI systems. This will help leverage the talent of our National Laboratories and strengthen the federal government’s ability to implement responsible guardrails that protect our national security and the American people.”

    “Innovation at the Department of Energy, our National Laboratories, and the National Institute of Standards and Technology has significantly advanced the boundaries of scientific discovery, but we need to ensure there are safeguards in place to prevent the misuse of AI,” said Senator Blackburn. “The TEST AI Act would direct these teams to establish safeguards, enabling AI to evolve while lowering the risk of manipulating this technology.”

    “While AI holds enormous positive potential, this new technology must be tested thoroughly to ensure that it is used responsibly,” said Senator Durbin. “With the TEST AI Act, we can direct the Department of Energy and the National Institute of Standards and Technology to develop AI testbeds, allowing us to safely explore the boundaries of AI, establish necessary guardrails, and protect against misuses.”

    “While AI offers an opportunity to revolutionize American research and innovation, we must be cognizant of bad actors and potential threats to privacy and national security,” said Senator Risch. “The Idaho National Laboratory is already a leader in AI, national security, and cybersecurity, and the TEST AI Act will use the National Labs’ capabilities to establish safeguards to prevent misuse of this growing technology.”

    “Artificial Intelligence brings limitless potential to every industry, from agriculture to green energy and small businesses. To harness the full power of AI, we need to develop tools and safeguards that manage its risks. That includes supporting federal research at our nation’s higher education institutions that give us a better understanding of AI’s full potential,” said Senator Welch. “The bipartisan TEST AI Act will ensure everyone can reap the full benefits of new and emerging AI technologies safely and responsibly.”

    “The TEST AI Act is a step towards transparency and accountability in artificial intelligence,” said Americans for Responsible Innovation (ARI) President Brad Carson. “Right now, AI systems are being deployed in high-stakes environments without independent oversight or clear standards. By building federal capacity for rigorous AI evaluations, this bill helps ensure AI tools are secure, effective, and ready for deployment.”

    Specifically, the TEST AI Act would:

    • Codify the ongoing collaboration between NIST and DOE to evaluate AI models;
    • Improve public-private partnerships through an AI Testing Working Group to guide standard development related to performance, reliability, security, privacy, and bias; and 
    • Direct the development of a public strategy for testing, construction of testbeds, and compilation of a report to Congress on the results and recommendations for future standards development.

    Senators Luján, Durbin, Blackburn, and Risch are co-leads of the Senate National Labs Caucus. The caucus works to identify legislative opportunities that elevate the National Labs’ visibility and meet national energy and security objectives. This caucus also helps identify bipartisan initiatives to maintain and extend U.S. leadership in critical scientific sectors.

    Full text of the bill is available here.

    MIL OSI USA News –

  • MIL-OSI USA: Warren Announces Senate Forum on Trump’s Attacks on Education Access, Invites Secretary McMahon to Defend Actions

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    May 07, 2025
    Spotlight forum entitled “Stealing the American Dream: How Trump and Republicans Are Raising Education Costs for Families.”
    Text of Letter (PDF)
    Washington, D.C. – Today, Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, announced that she will host a spotlight forum entitled “Stealing the American Dream: How Trump and Republicans Are Raising Education Costs for Families.” The forum is scheduled for 2:30 p.m. on Wednesday, May 14, 2025, at the Dirksen Senate Office Building in Room G11.
    The latest action in Senator Warren’s Save Our Schools campaign, this forum will examine how both the Trump administration’s attacks on the Department of Education and Congressional Republicans’ legislative plans will increase education costs and limit access to higher education for America’s students and borrowers.
    Senator Warren invited the following witnesses to attend the forum:
    Linda McMahon, Secretary, U.S. Department of Education
    Bonnie Latreille, Former Student Loan Ombudsman, U.S. Department of Education
    Jonathan Glater, Professor of Law & Associate Dean of J.D. Curriculum and Teaching, UC Berkeley School of Law
    Gilberto Gonzalez, Truck Driver, Prime Inc. 
    Tiffany Aliche, Personal Finance Creator, @thebudgetnista
    In a letter to Secretary McMahon, Senator Warren wrote, “Your appearance will provide you with an opportunity to defend the Trump administration’s policies, offer context for your actions to dismantle the Department of Education, and share your vision for ensuring that the American Dream becomes more attainable for all.”
    This forum follows President Trump’s signing of a March 2025 executive order seeking to abolish the Department of Education, and House Republicans advancing legislation last month to slash $351 billion in education spending. 
    Senator Warren has been a leader in the coordinated effort to fight back against President Trump’s attempts to abolish the Department of Education:
    On April 24, 2025, Senator Warren launched a new investigation into the harms of President Trump’s attacks on the Department of Education, seeking information on the impact of the Trump administration’s actions from the members of twelve leading organizations representing schools, parents, teachers, students, borrowers, and researchers.
    On April 10, 2025, following a request led by Senator Warren, the Department of Education’s Acting Inspector General agreed to open an investigation into the Trump administration’s attempts to dismantle the Department of Education.
    On April 2, 2025, Senators Elizabeth Warren and Mazie Hirono, along with Senate Democratic Leader Chuck Schumer, sent a letter to Secretary of Education Linda McMahon regarding the Department of Government Efficiency’s proposed plan to replace the Department of Education’s federal student aid call centers with generative artificial intelligence chatbots.
    On April 2, 2025, Senator Elizabeth Warren launched the Save Our Schools campaign to fight back against the Trump administration’s efforts to dismantle the Department of Education (ED) and highlight the consequences for every student and public school in America.
    On March 27, 2025, Senator Elizabeth Warren (D-Mass.) led a letter to Acting Department of Education Inspector General (IG) René Rocque requesting that the IG conduct an investigation of the Trump Administration’s attempts to dismantle the Department of Education.
    On March 20, 2025, Senators Elizabeth Warren and Bernie Sanders led a letter to Secretary of Education Linda McMahon regarding the Trump Administration’s decision to slash the capacity of Federal Student Aid to handle student aid complaints.
    On February 24, 2025, in a response to Senator Warren, Secretary McMahon gave her first public admission that she “wholeheartedly” agreed with Trump’s plans to abolish the Department of Education.
    On February 11, 2025, Senators Elizabeth Warren and Andy Kim sent Linda McMahon, Secretary-Designate for the U.S. Department of Education, a 12-page letter with 65 questions on McMahon’s policy views in advance of her nomination hearing.

    MIL OSI USA News –

  • MIL-OSI Global: Tips for starting a business in Canada, according to entrepreneurs who have done it

    Source: The Conversation – Canada – By Nazha Gali, Assistant Professor of Strategy and Entrepreneurship, University of Windsor

    Each year, about 100,000 small businesses are created in Canada. But what does it actually take to start a business in Canada — not just on paper, but in practice?

    To better understand what launching a startup in Canada truly involves, we interviewed entrepreneurs across various sectors. As experts in strategy and entrepreneurship, we combined their first-hand experiences with research findings to determine key factors that contribute to business success.

    What emerged is a clearer picture of the realities of Canadian entrepreneurship that shows building a business is as much about managing relationships, risks and resilience as it is about having a novel idea.

    Solving real consumer problems

    Before launching a business, it’s essential to identify your target customers. Successful ventures begin by solving a real problem for a clearly defined group. Conducting market research to ensure a strong product-market fit is a critical first step in this process.

    One of the most common blind spots for new entrepreneurs, according to Ariz Bhimani, founder of apparel brand BRFZY, is assuming the problem they face is universal. “Without genuine data from potential customers, you’re just guessing,” he said in an email interview.

    This is where customer discovery comes in. It involves understanding customers’ situations, needs and pain points. Techniques such as user interviews and creating detailed customer personas can help founders better understand who their product is for.

    This approach is crucial for both startups and established organizations looking to enter new markets.

    Another vital part of the early-stage process is building a minimum viable product (MVP): a basic version of a product that includes only the core features needed to test the idea with users.

    MVPs allow entrepreneurs to gather feedback and refine the product before investing significant time or money in full development.

    Manage your money wisely

    Once a market need is identified, securing funding is often the next major challenge. This process typically begins with creating a compelling pitch — a presentation that outlines the product or service and financial projections to attract potential investors.

    This pitch is crucial to a startup’s success, Mohammad Faiyaz, founder and CEO of Wavermark, told us.

    There are tools and resources available to help, such as the pitch deck developed by PayPal co-founder Peter Thiel and AI feedback tool AI Fornax.

    Having a solid pitch prepared is a necessary step to attract potential investors for your business.
    (Shutterstock)

    But while funding is essential, managing those funds wisely is equally important. Chris Colasanti, vice president at Rocket Mortgage Canada, explained via email that one of the most common mistakes new entrepreneurs make is failing to control costs.

    Many first-time founders become preoccupied with revenue growth while overlooking expenses. Colasanti argued that unless you have endless investor backing, your survival depends on lean operations. “Obsess about your costs,” he advised.

    Bhimani echoed this caution. “I would budget two to three times more time and money to get a task done, especially in the ideation stage,” he wrote to us. Entrepreneurs should be prepared for unexpected costs.

    Building a business plan

    Many startup founders are eager to scale their businesses quickly, but doing this prematurely can increase the risk of failure by 20 to 40 per cent.

    “Growth is one of the most taxing activities a company can experience,” Colasanti told us. “Fight the urge to grow. Hire when it hurts and let sales drive your growth.”

    To scale successfully, companies need a strong foundation. This means having a comprehensive business plan in place. A well-structured plan outlines a company’s mission, market strategy, operations, finances and key milestones.

    Beyond serving as a roadmap for internal decision-making, business plans also help communicate a company’s vision and strategy to investors and other stakeholders.

    The Business Development Bank of Canada offers guides to help entrepreneurs build effective business plans.

    Hire the right people for the job

    Hiring the right employees for the job is crucial for startup success. “You cannot overpay for talent,” Colasanti told us. “The first 10 people you hire will make or break your business.”

    Hiring decisions should go hand-in-hand with intentionally building a workplace culture. Research shows that a positive workplace culture leads to higher employee satisfaction, retention and overall productivity.

    “Your business will develop a culture whether you create it or not,” he said. Many first-time founders let poor behaviours slide to avoid conflict, but this is risky.

    Hiring the right employees for the job is crucial for startup success.
    (Shutterstock)

    Bhimani also emphasized the importance of hiring those who genuinely understand your company’s mission. “Then I know they’re invested and will put forth their best effort,” he told us.

    There are important legal considerations to keep in mind. Employers must comply with federal and provincial labour laws, and entrepreneurs should seek legal advice or consult government resources when building their teams.

    Seek out a knowledgeable mentor

    While entrepreneurship is often seen as a solo pursuit, research and experience suggest otherwise. In reality, founders who are mentored by successful entrepreneurs are over three times more likely to be successful themselves.

    Both Bhimani and Dhwani Shah, founder and CEO of Aadhya Navik Inc., highlighted the importance of mentors.

    “Even if you just have an idea,” Bhimani told us via email, “you should strive to talk about it as much as possible with people in the industry who have relevant experience.”

    Shah similarly attributed her growth to constant learning and expert guidance: “I have a long-term vision and actively seek advice while working on the product.”

    Resources like the Business Benefits Finder and programs like Futurpreneur Canada and Startup Canada can connect early-stage founders with financing and mentorship.

    Passion and persistence are key

    Mindset is also a differentiating factor that sets successful entrepreneurs apart. The entrepreneurial mindset is a way of thinking that involves seeing opportunities where others see obstacles, and maintaining a strong sense of initiative and resilience.

    All the entrepreneurs we interviewed said intrinsic motivation was the key to longevity. “Starting a business makes you wear multiple hats, which can be intimidating but also gives you immense satisfaction,” Shah told us. Research has also confirmed this to be true.



    Read more:
    Entrepreneurs know that failure is sometimes necessary – here’s what we can learn from them

    Colasanti told us fear often leads founders to switch from experimentation to protection mode too early. “They stop taking big swings and start firing bullets instead of cannonballs,” he said. That mindset shift can lead to complacency and stagnation.

    Successful entrepreneurs are often those who can stay agile, embrace discomfort and persist even when the stakes are high.

    Make use of resources

    There are a number of supports for entrepreneurs in Canada. National initiatives like Futurpreneur Canada and Startup Canada, and financial supports from Business Development Bank of Canada, are also available.

    Most provinces and territories have web pages dedicated to resources for small businesses and entrepreneurs, including British Columbia, Alberta, Manitoba and Ontario.

    In southern Ontario, WETech Alliance offers a model example of how regional innovation hubs can support founders. Their programs help connect entrepreneurs to expertise, capital and community.

    Starting a business in Canada has never been more possible or more competitive. As the experts we spoke to remind us, success lies in execution. The journey is hard, but for those who are ready, it can also be deeply rewarding.

    Bharat Maheshwari has received funding from Mitacs, the Social Sciences and Humanities Research Council of Canada, and several other organizations that regularly fund academic research in Canada.

    Nazha Gali 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. Tips for starting a business in Canada, according to entrepreneurs who have done it – https://theconversation.com/tips-for-starting-a-business-in-canada-according-to-entrepreneurs-who-have-done-it-247985

    MIL OSI – Global Reports –

  • MIL-OSI: authID Announces Closing of $2,100,000 Registered Direct Offering

    Source: GlobeNewswire (MIL-OSI)

    DENVER, May 07, 2025 (GLOBE NEWSWIRE) — authID Inc. (NASDAQ: AUID) (“authID” or the “Company”), a leading provider of biometric identity verification and authentication solutions, announced on May 6, 2025, it entered into a definitive agreement, for a follow on transaction with investors led by Kyle Wool, to sell 373,060 shares of its common stock (the “Shares”), pursuant to a registered direct offering (the “Registered Direct Offering”). The purchase price for one Share will be $5.60. The aggregate gross proceeds from the Offering were approximately $2,100,000 before deducting placement agent fees and other offering expenses.

    The closing of the Registered Direct Offering occurred on May 7, 2025, as all closing conditions have been satisfied.

    Dominari Securities LLC and Madison Global Partners, LLC, acted as Co-Placement Agents for the offering.

    authID intends to use the net proceeds for working capital and general corporate purposes.

    The Shares offered in the Registered Direct Offering were offered by the Company pursuant to a shelf registration statement (Registration No. 333-283580) filed with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on December 13, 2024. The offering was made only by means of a prospectus supplement and accompanying prospectus. A prospectus supplement and accompanying prospectus relating to the Registered Direct Offering was filed with the SEC and, may be obtained for free on the SEC’s website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus relating to the Registered Direct offering may be obtained by contacting Madison Global Partners, LLC, Attention: David S. Kaplan, 350 Motor Parkway, Suite 205, Hauppauge, NY 11788, by email at info@madisonglobalpartners.com, or by telephone at (646) 690-0330.

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

    About authID Inc.

    authID (Nasdaq: AUID) ensures enterprises “Know Who’s Behind the Device™” for every customer or employee login and transaction through its easy-to-integrate, patented biometric identity platform. authID powers biometric identity proofing in 700ms, biometric authentication in 25ms, and account recovery with a fast, accurate, user-friendly experience. With our ground-breaking PrivacyKey Solution, authID provides a 1-to-1-billion false match rate, while storing no biometric data. authID stops fraud at onboarding, blocks deepfakes, prevents account takeover, and eliminates password risks and costs, through the fastest, most frictionless, and most accurate user identity experience demanded by today’s digital ecosystem.

    For more information, please visit authid.ai.

    Media Contacts

    NextTech Communications
    Walter Fowler
    1-631-334-3864
    wfowler@nexttechcomms.com

    Investor Relations Contacts
    Investor-Relations@authid.ai

    Cautionary Statement Regarding Forward-Looking Statements:

    This Press Release includes “forward-looking statements.” All statements other than statements of historical facts included herein are forward-looking statements. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors. See the Company’s Annual Report on Form 10-K for the Fiscal Year ended December 31, 2024, filed at www.sec.gov and other documents filed with the SEC for risk factors which investors should consider. These forward-looking statements speak only as to the date of this release and cannot be relied upon as a guide to future performance. authID expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any changes in its expectations with regard thereto or any change in events, conditions, or circumstances on which any statement is based.

    The MIL Network –

  • MIL-OSI Economics: Congressional testimony: Supporting American leadership in quantum technology

    Source: Microsoft

    Headline: Congressional testimony: Supporting American leadership in quantum technology

    Editor’s note: On Wednesday, May 7, Dr. Charles Tahan, Partner, Microsoft Quantum, testified before the U.S. House Committee on Science, Space, and Technology. To view the proceedings, please visit the committee’s website.

    Written Testimony of Dr. Charles Tahan
    Partner, Microsoft Quantum, Microsoft Corporation

    U.S. House Committee on Science, Space, and Technology
    “From Policy to Progress: How the National Quantum Initiative Shapes U.S. Quantum Technology Leadership”

    Chairman Babin, Ranking Member Lofgren, and Members of the Committee, thank you for the opportunity to appear before you to discuss the importance of quantum technology and the transformative role it will play for this country and for our collective future.

    It is an honor to be here again. I first appeared before this Committee nearly two years ago. Then, I was Assistant Director of Quantum Information Science and Director of the National Quantum Coordination Office (NQCO), an office within the White House Office of Science and Technology Policy. The NQCO was created in the first Trump Administration by the National Quantum Initiative Act of 2018. Our job was to coordinate the more than 20 agencies led by the Department of Energy, the National Science Foundation, and the National Institute of Standards and Technology, along with the Department of Defense and the Intelligence Community, to develop and execute a national strategy to strengthen American leadership in quantum information science and technology. I spent almost four years in that job, which capped an almost 17-year career as a practicing physicist and technical leader at the National Security Agency and the Defense Advanced Research Projects Agency (DARPA), where I worked on quantum computing, high-performance computing, and other advanced technologies. I now work at Microsoft where I lead technical teams within Microsoft Quantum that are working both internally and with our close partners to build the world’s first useful quantum computers.

    Through my testimony I hope to outline the transformative potential of quantum technology and why the United States must lead and win the quantum race. To provide some context, I will begin by highlighting the revolution in quantum sciences and why quantum matters in the age of artificial intelligence. I then expand on Microsoft’s leadership in this field—both through our own research and through our strategic collaborations with other leaders in the quantum ecosystem. But, despite our tremendous progress, sustaining American leadership requires government action. I therefore offer three focus areas that I believe this Committee and Congress should prioritize: (1) advancing the quantum sciences; (2) developing, attracting, and retaining a skilled quantum workforce; and (3) building a resilient and secure supply chain. Taken together, these strategic actions will not only bolster our nation’s security and competitive edge against competitors and adversaries, but it will also drive innovation and economic growth at home towards a new frontier of American prosperity.

    The Quantum Information Revolution

    I like to think of quantum science as the operating system of the universe. What we physicists call quantum mechanics are essentially the rules that the universe follows at the microscopic level. Over the last 100 years, we have learned a tremendous amount about how those rules work. They appear strange to us because we do not experience them in our daily lives. As we have learned more about these quantum effects, we have been able to leverage them to build new tools and technologies.

    The National Quantum Initiative Act of 2018 recognized that we were on the cusp of a new technological revolution—a quantum information revolution— where we could harness the more advanced and unusual properties of quantum mechanics. This revolution is not just about new research discoveries but also about creating fundamentally new types of information technology like quantum computers, quantum networks, and quantum sensors. The full implications of this shift in quantum information science are unclear, but we do know that maintaining our global technological leadership is critical to sustaining economic prosperity, enhancing our well-being, and safeguarding our national security. We also know this is the first moment in our lifetimes in which we are able to radically reimagine how we build computers. As a country, and as a computing company, we must take that seriously.

    Why Quantum Matters in the Age of AI

    In the two years since my last appearance before this Committee, the world has shifted dramatically. The remarkable rise of AI systems has surprised all of us and increasingly affordable AI capabilities are likely to transform the world even more profoundly than the internet. Despite its immense potential, artificial intelligence—even coupled with the most powerful classical computers today—has limitations. There are problems that AI and classical computing will never be able to solve, not in our lifetimes or even in a hundred lifetimes, because of the fundamental limitations of how they are designed.

    Quantum technology can offer unprecedented capabilities for computing. Consider two quick examples where quantum computers are exponentially faster than anything we could imagine a classical computer could do. The first is code-breaking, which has serious implications to our national security and privacy. A sufficiently large quantum computer could break the public key cryptography systems we now rely on in days or weeks. Even the most powerful classical computer we could ever imagine would take the age of the universe to solve the same problem. That is the power of exponential improvement. And it is why we must move to quantum resistant cryptography as fast as possible.

    The other more commercially relevant application is, quite simply, making things—designing new materials, new chemicals, and new medicines. If you think about what the future holds, what will differentiate nations in an era of intelligence is their ability to create new things using tools that enable them to do so better, faster, and at lower cost. And this is why quantum is so important, not only because it helps us understand the universe as scientists but because it gives us unprecedented capabilities to dramatically improve our lives.

    Microsoft’s Leadership in Quantum

    It is important to appreciate that bringing quantum technology to practical application is hard. It requires focused and sustained investments, sophisticated infrastructure, and the best talent in the world.  It also requires new types of hardware—quantum hardware—and a new quantum technology stack, from chips to the control and readout layers to the user interface. This requires science and innovation at every level. That is what makes developing quantum technology expensive.

    The quantum team at Microsoft has been pursuing quantum computing for over 20 years. Our research program has spanned all three CEOs. We are singularly focused on building quantum computers that are able to solve meaningful problems, like problems in chemistry and material science. To do this, we need quantum computers that can scale to potentially millions of qubits—or quantum transistors—as compared to the small number currently available in prototype systems today. Microsoft has been pursuing this on two fronts: through our decades-long internal research and through strategic collaborations in the quantum ecosystem.

    1. Microsoft’s First-Party Research: The Topological Approach

    Microsoft’s internal hardware effort is based on a unique scientific approach aimed at developing qubits that rely on very novel physics. These are called topological qubits. We think they are promising for quantum computing because they have the potential to make it much easier to scale, meaning to control and enable readout of the millions of qubits needed to develop a useful quantum computer. However, to build even one topological qubit, the team had to take a scientific theory that was first proposed in the 1930s and make it a reality—a feat that included creating a new state of matter and engineering a device in which to exhibit it.

    Earlier this year, Microsoft unveiled new technical results that begin to validate our roadmap toward a topological quantum computer.[1] In addition, Microsoft presented the Majorana 1 chip, which brought together for the first time all the key components, validated individually, that will be needed to build quantum systems that scale: cryogenic electronics, interconnect wiring, and a qubit microchip layout that is compatible with both the physics of topological operation and the limits of control electronics. It is the embodiment of Microsoft’s topological roadmap[2] and the team is proud of it.

    Our approach has been evaluated by the Defense Advanced Research Projects Agency (DARPA), which spent nearly two years vetting Microsoft’s architecture and engineering plan and the unique properties that enable topological qubits to scale.[3] As a result, DARPA selected Microsoft for the final phase of its Underexplored Systems for Utility-Scale Quantum Computing (US2QC) program—one of the programs that makes up DARPA’s larger Quantum Benchmarking Initiative (QBI). To date, the US2QC program has brought together over fifty experts from leading government and academic institutions, including Air Force Research Laboratory, Johns Hopkins University Applied Physics Laboratory, Los Alamos National Laboratory, Oak Ridge National Laboratory, and NASA Ames Research Center, to verify our approach to quantum hardware, software, and applications. DARPA referred to this evaluation as “an incredibly rigorous and deeply technical analysis from what is almost certainly the world’s best quantum computing test and evaluation team.” The final phase of US2QC now envisions the development of a fault-tolerant prototype based on topological qubits—a crucial acceleration step toward making a utility-scale quantum computer a reality.

    Majorana 1 represents the pursuit of hundreds of scientists and engineers over the course of 20 years. Along the way there have been and will continue to be tremendous advances and contributions to the greater field of quantum information science and technology because of this pursuit. And this is why I came to Microsoft—to work on the hardest problems that promise to have an outsized impact for technology and for our society. Technical terms you may not have heard of, such as Topological and Floquet codes, pristine superconductor-semiconductor materials, measurement-based approaches to quantum computing, are all new technologies spun out of this pursuit with implications for many other types of qubits and other types of technologies, even other domains like astronomy. They came about because the Microsoft team found solutions to the hard problems—to the benefit of not only our company, but the entire quantum ecosystem.

    1. Strategic Collaborations

    At its core, Microsoft is a platform company. We want to empower our customers with the best computers in the world, whether they are quantum computers or classical computers, for the applications they care about. While we are excited about the continued advancement and promise of our own topological approach, we have no preference for which qubits ultimately provide our customers with quantum capabilities. We want the system to be the best technology for their use case. This means we develop software for multiple different technologies and layers of the quantum computer stack, everything from AI copilot to quantum languages to the real-time operating system needed to run a quantum computer with millions of moving parts.

    To do this, we work with, invest in, and partner with many different quantum computing technology companies, big and small, to help them make useful quantum computers a reality. We have entered into strategic collaborations with leading quantum hardware startups like Atom Computing, Quantinuum, and Photonic, and others. By applying our industry-leading error-correction and control software to their hardware platforms, we are accelerating the industry’s transition from rudimentary “Level 1” machines that use noisy physical qubits to the world’s first “Level 2” machines that rely on reliable, error-corrected logical qubits, composed of many physical qubits—which make quantum computing more useful for practical applications.

    Our breakthroughs in this area are coming fast. In April 2024, Microsoft and Quantinuum demonstrated the first logical qubits on record that outperform the underlying physical qubits.[4] Five months later, in September 2024, Microsoft and Quantinuum demonstrated 12 logical qubits on Quantinuum’s ion-trap machine, the most reliable logical qubits then on record.[5] Two months later, in November 2024, Microsoft and Atom Computing doubled this feat, creating and entangling 24 logical qubits made from neutral atoms.[6] These breakthroughs led by Microsoft, Atom Computing, and Quantinuum have for the first time moved the quantum industry firmly out of the “Level 1” noisy intermediate-scale quantum (NISQ) era to Level 2 resilient quantum computing. With Atom Computing, we are now offering the world’s first commercially available Level 2 quantum machines. These collaborations enable us to deliver best-in-class logical qubits for our customers today, further cementing Microsoft’s leadership in the quantum ecosystem. But even these “Level 2” systems that aim to provide 1000s of physical qubits will pale to the scale of a true, utility-scale quantum computer powered by a million qubits or more. Getting to this point will require more sustained, large-scale investments in many areas—from talent development to new domestic capabilities to supply chain resilience.

    Winning the Race in Quantum

    While Microsoft has made significant investments in quantum technology, the efforts of individual companies alone are insufficient for the United States to secure the leadership position. Winning the quantum race will not happen without clear-eyed, intentional, and decisive government action. Indeed, these actions will decide whether American global leadership will continue for the rest of this century.

    In his first term, President Trump and Congress laid the foundation for American leadership in the quantum sciences. The passage of the National Quantum Initiative Act (NQIA) was a strong first step in moving from dispersed quantum science initiatives to a more active, coordinated effort to not only lead in the foundational research, but also take scientific breakthroughs through to practical technological innovation.

    As this Committee considers reauthorization of the NQIA and other specific actions that the United States must take to secure our technological leadership in quantum, we offer more detailed recommendations across three policy priorities: (1) robust funding for quantum research, (2) developing top-tier quantum talent, and (3) securing the quantum supply chain. These three categories—described more fully below—require U.S. government leadership to maintain a competitive edge, drive innovation, and safeguard national security in the face of growing global competition.

    1. Advancing Quantum Research

    First, we must continue our long American tradition of leading the world in groundbreaking scientific research. Our curiosity, our ability to innovate, and our desire to build has been responsible for a century of American prosperity. Indeed, the past century of our global leadership is rooted in our ability to not only innovate but innovate first. For quantum, the first-mover advantage is likely to define the geopolitical landscape for the rest of this century – and likely well beyond.

    Last week, Microsoft President and Vice Chair Brad Smith wrote specifically about the critical role of the American research triad—the Department of Defense, the Department of Energy, and the National Science Foundation—in driving American scientific and technological innovation.[7] I will add to that the unique role that the National Institute of Standards and Technology has contributed to quantum information science since the field’s inception. In addition, there have been vital investments by the Intelligence Community’s research funding organizations, who have core missions that demand expertise to monitor progress in quantum information technologies. We must make it a continuing national imperative to energize these institutions—for our economic future, for our national security, and for sustaining our global leadership. The American scientific enterprise is unmatched in the world and there is no private sector substitute. We benefit from multiple institutions that have very different models for how to fund science. This allows the U.S. to fund everything from basic ideas to large, very focused development programs to purchasing novel supercomputers. There is nothing else quite like it in the world.

    Federal funding is the key to leveraging these institutions to sustain our leadership in quantum research and development.  Following passage of the NQIA, U.S. funding for the quantum sciences more than doubled from $456 million in 2019 to $1.041 billion in 2022.[8] But recent years have seen a decline, as reflected in President Biden’s $998 million budget request for FY2025. This has come as our global competitors are doing the opposite. Governments around the world are accelerating spending on quantum R&D – and China’s estimated $15 billion commitment dwarfs publicly reported U.S. funding levels.[9]

    To stay competitive, Congress should not only reauthorize the National Quantum Initiative Act but be purposeful in expanding initiatives through a coordinated national strategy. Key recommendations include:

    • Fully Fund and Expand Quantum Initiatives across the Federal Government: Reauthorize and fully fund the National Quantum Initiative Act and its programs. Congress should ensure agencies like the Department of Energy (DOE) and its National Labs, the National Science Foundation (NSF), the National Institute of Standards and Technology (NIST), and the National Aeronautics and Space Administration (NASA), along with the Department of Defense and the Intelligence Community receive sustained appropriations to expand fundamental quantum science research and development. This includes supporting the NSF’s Quantum Leap Challenge Institutes and the DOE’s National Quantum Information Science Research Centers, which have a proven record of leveraging each federal dollar to attract additional private investment. Expanding these programs will spur innovation nationwide and solidify U.S. leadership in critical quantum technologies.
    • Increase Directed Quantum R&D Funding: Move beyond fragmented funding by adopting a more directed, strategic investment approach. A recent ITIF survey suggests that China’s centralized funding strategy gives it advantages over the diffuse U.S. approach.[10] Congress can consider targeted increases in quantum R&D budgets across key agencies, aiming to exceed past funding peaks and keep pace with competitor nations. Restoring growth in federal quantum R&D funding—particularly after the dip in recent years—is the first and most urgent step to ensure the U.S. does not fall behind.
    • Expand Translational Research Programs: Boost funding for government evaluation and prototype development programs to build a bridge between lab discoveries, engineering initiatives, and real-world applications. For example, DARPA’s Quantum Benchmarking Initiative (QBI)—the flagship program for assessing quantum breakthroughs—should be expanded and fully funded. Congress can direct agencies (DOD, DOE, NSF) to coordinate on identifying high-value quantum research projects and push them toward validation programs (like DARPA’s QBI program) and then to practical realization with additional grants, prizes, or public-private partnerships.
    • Encourage Public-Private Collaboration: Federal investment should be paired with incentives for private sector co-investment in quantum R&D. Each dollar of federal funding often leverages additional private sector investment, so policies like matching grants, or innovation challenges can multiply the impact of public funds. Congress should also support joint research centers and consortia that bring together government, academia, and industry to solve quantum engineering hurdles. In addition, maintaining a stable, long-term funding outlook will give industry the confidence to invest alongside the government in quantum technology development.
    • Provide access to the latest quantum capabilities: Congress should streamline pathways for government agencies to provide the latest quantum computing technology to the researcher community, which would allow them to better identify impactful quantum applications and use cases.

    By significantly increasing federal funding and focusing it strategically, Congress can reinvigorate America’s quantum R&D enterprise. Continued U.S. scientific leadership depends on this commitment and history shows that breakthroughs from federally funded basic research (from the internet to GPS) drive decades of innovation and economic growth. Investing ambitiously in quantum now will pay dividends for American security and prosperity in the years to come.

    2. Developing & Attracting Quantum Talent

    Throughout its history, the United States has developed and attracted the brightest and most innovative minds– and it is what powers Microsoft, the broader American technology sector, and our great academic and research institutions. But this country now faces a severe shortage of STEM talent and, even more critically, a shortage of specialized quantum expertise.

    The global quantum talent pool remains small even as demand increases. It is no exaggeration to say that a handful of gifted physicists, engineers, and mathematicians could sway the balance of power and shift the dynamics in the race to develop quantum technology. Globally, there are as many as three job postings for every one qualified quantum worker.[11] In the U.S., we are struggling to develop our own talent and labor pool. Today the U.S. STEM workforce consists of approximately 36.8 million people, but 43% of doctorate-level scientists and engineers are foreign-born.[12] In 2021, more than half of doctorate-level computer scientists, mathematicians, and engineers working in the United States—occupations directly connected to critical and emerging technologies—were born outside the country.[13] Meanwhile, other countries are sprinting ahead in producing STEM graduates. In 2020, the U.S. awarded roughly 900,000 undergraduate STEM degrees annually, compared to 2 million in China and 2.5 million in India.[14] That gap may have widened in the past five years and today, the European Union leads in quantum talent concentration, with India and China also surpassing the U.S. in the number of quantum-trained specialists. Without a bigger domestic pipeline of quantum talent, even the most well-funded programs will struggle to succeed.

    Congress should enact policies to train, attract, and retain top quantum talent. Important steps include:

    • Strengthen STEM Education at All Levels: Congress must be laser focused on expanding the STEM pipeline from K-12 through to graduate school programs. This includes initiatives through the NSF, as well as state and local partners to enrich science and math curricula and increase awareness and interest in emerging technology. By introducing comprehensive STEM education early (in elementary and secondary schools), we can inspire more students to pursue careers in emerging technology and quantum-related fields.
    • Invest in Higher Education and Training: Congress should also continue and expand initiatives to train the next generation of scientists and engineers. We must continue to fund scholarships, fellowships, and research assistantships, particularly those focused in STEM and specifically in the quantum sciences. This must include developing high-caliber talent at our nation’s premier research institutions through grants and quantum research programs.  It must also include prioritizing community colleges and technical institutes that often launch students into STEM careers. Programs like the NSF’s Research Experiences for Undergraduates (REU) and Research Experiences for Teachers (RET) are critical to engaging more students and providing educators with hands-on quantum projects.  Congress should also increase federal support for STEM graduate students in quantum-related disciplines—currently, only 15% of U.S. full-time STEM grad students are supported by the U.S. government, down from 21% in 2004.[15] Bolstering fellowships and traineeships will produce more Ph.D.-level researchers ready to push the boundaries of quantum science.
    • Retrain and Upskill the Existing Workforce: To meet immediate needs, Congress should also consider activating NSF and the Department of Labor for workforce retraining programs that would help add talent to the quantum ecosystem. Adult education, professional development, and certificate programs in STEM and basic quantum fundamentals can rapidly expand the pool of “quantum-aware” professionals. These efforts will help fill roles in quantum research and product development that do not necessarily require Ph.D.-level expertise but do need specialized training.
    • Attract and Retain Global Talent:  Many of the world’s best minds—in quantum science and across disciplines—come to the U.S. for education and we must continue to find ways to support their continued contributions to our country after graduation. For example, from 2018–2021, temporary visa holders made up 37% of U.S. science and engineering Ph.D. graduates and over 70% of those students intended to stay in the U.S. after graduating.[16]  Congress should create expedited pathways for highly skilled quantum experts and expand the number of visas for Ph.D. graduates in quantum-related fields. Easing green card backlogs for advanced STEM degree holders could help the U.S. retain and attract international talent that would otherwise find opportunities outside the United States.
    • Promote International Collaboration: Congress should encourage collaborative research and exchange programs with allied nations to broaden the talent base within a trusted network. Joint initiatives with allies can pool expertise and resources to collectively train more quantum scientists. By deepening ties with like-minded countries the U.S. can both learn from our allies and ensure that we lead the quantum future together.

    By implementing these measures, the United States can build a robust pipeline of quantum talent. A comprehensive strategy spanning education, training, and international collaboration will equip the U.S. with the skilled workforce needed to drive quantum innovation and outpace global competitors.

    3. Securing the Quantum Supply Chain

    Building a secure and reliable quantum supply chain is essential. Quantum technologies across the board—computing, communication, and sensing—depend on specialized materials and components. This includes hardware like cryogenic refrigerators to advanced lasers and quantum chips. There are currently few suppliers or fabrication facilities for these items and most are globally distributed. This creates a real risk of supply bottlenecks or dependencies on foreign sources, which could stall our R&D progress or even compromise the technology stack. It currently takes 12 to 18 months to get certain components and equipment we need, many of which come from overseas. The U.S. must be able to either build quantum components and devices domestically or have reliable, secure sources through trusted allies. We also need prototyping facilities that are rapid, focused, and work at the pace of industry. However, establishing a resilient supply chain will not happen without focused government action. It is a complex challenge requiring coordination between agencies and partnership with industry. And the need to act is now.

    Congress and the Administration should pursue a national strategy to strengthen the quantum supply chain through the following actions:

    • Develop a National Quantum Supply Chain Strategy: We recommend that the Administration—perhaps via the National Quantum Initiative Advisory Committee or another interagency task force—develop a comprehensive strategy to develop the quantum supply chain. This strategy should identify key supply vulnerabilities, set goals for domestic capacity in quantum-related manufacturing, and provide the Administration with an action plan on how to spur public and private investment for key technology components. Congress may also consider regular reporting on quantum supply chain risks and a roadmap to de-risk dependencies.
    • Diversify Sources of Critical Components: The government should consider using federal purchasing power and funding to ensure multiple reliable sources for essential quantum hardware components. Congress can empower the Department of Commerce and Department of Energy to organize long-term purchase agreements or commit to buying key items (e.g. dilution refrigerators, superconducting amplifiers, high-purity qubit materials, photonic components) in bulk. Strategic investment (such as grants) could also target any chokepoints where the U.S. is overly reliant on foreign suppliers. By deploying capital toward widely needed quantum components, the government can incentivize companies within the United States (or, abroad in partnership with trusted allies) to build expertise and capacity.
    • Establish Quantum Manufacturing Facilities: Congress should also focus on building specialized infrastructure facilities for quantum device fabrication and testing. Building quantum computers and sensors often requires custom fabrication processes (for novel types of qubits, cryogenic electronics, etc.) and advanced packaging techniques. Congress should support the creation of one or more quantum foundries or test beds—perhaps through our National Labs or public-private partnerships—equipped to prototype and produce quantum components at scale. This includes facilities dedicated to fabrication, packaging, and assembly of quantum chips and systems, as well as laboratories for testing cryogenic and photonic components under quantum operating conditions. By investing in such infrastructure, the U.S. will reduce the need to rely on foreign fabrication facilities or suppliers for cutting-edge parts. These centers can also serve as innovation hubs where academia and industry collaborate on next-generation manufacturing techniques for quantum technology.
    • Prioritize Domestic Production of Advanced Components: Congress should create incentives (tax credits, grants, or loan guarantees) for companies to build production lines in the U.S. for critical quantum hardware. This includes the design and fabrication of advanced lasers, precision optics, microwave components, and quantum-grade semiconductors, as well as cryogenic electronics and ultralow-temperature refrigeration systems required for quantum labs. Capabilities like high-precision metrology (chip characterization) and advanced 3D packaging for quantum devices should also be developed domestically. Some of these areas overlap with semiconductor and photonics industries—where recent government efforts were aimed at boosting U.S. manufacturing— but specialized focus on quantum needs is essential. By onshoring production of these components, the U.S. will mitigate risks of foreign supply cut-offs and foster a local ecosystem of quantum suppliers and startups.  In tandem, federal R&D programs can partner with U.S. manufacturers to improve yields and performance in quantum-specific production, driving the costs down over time.

    By implementing these measures, the U.S. can build a resilient quantum supply chain that supports our nation’s long-term leadership. A combination of strategic planning, direct investment, public-private partnerships, and incentives will reduce dependence on foreign suppliers and ensure that our scientists and quantum innovators have access to the tools and components they need to succeed.

    Conclusion

    In closing, the government plays a critical role in coordinating our quantum ecosystem, funding the base of scientific discoveries and talent that the industry relies on, and being the first customer for next generation computers.

    Quantum technology promises to redefine the next era of human progress. The United States must act with urgency to ensure our continued leadership over the next hundred years.

    [1][2502.12252] Roadmap to fault tolerant quantum computation using topological qubit arrays.

    [2] Interferometric single-shot parity measurement in InAs–Al hybrid devices | Nature and Realizing Topological States on Quantum Hardware | APS Global Physics Summit.

    [3] DARPA selects two discrete utility-scale quantum computing approaches for evaluation | DARPA.

    [4] How Microsoft and Quantinuum achieved reliable quantum computing – Microsoft Azure Quantum Blog.

    [5] Microsoft and Quantinuum create 12 logical qubits and demonstrate a hybrid, end-to-end chemistry simulation – Microsoft Azure Quantum Blog.

    [6] Microsoft and Atom Computing offer a commercial quantum machine with the largest number of entangled logical qubits on record – Microsoft Azure Quantum Blog.

    [7] Investing in American leadership in quantum technology: the next frontier in innovation – Microsoft On the Issues.

    [8] National Science and Technology Council:  Subcommittee on Quantum Information Science, National Supplement to the President’s FY 2025 Budget.

    [9] Hodan Omaar and Martin Makaryan, “How Innovative is China,” Information Technology & Innovation Foundation, September 2024.

    [10] Id.

    [11] McKinsey & Company, “Quantum Technology Monitor,” April 2023.

    [12] National Science Board, “The State of U.S. Science and Engineering 2024,” March 2024.

    [13] Id.

    [14] Id.

    [15] Id.

    [16] Id.

    Tags: quantum, Senate Testimony, Technology

    MIL OSI Economics –

  • MIL-OSI Economics: Microsoft Fusion Summit explores how AI can accelerate fusion research

    Source: Microsoft

    Headline: Microsoft Fusion Summit explores how AI can accelerate fusion research

    The pursuit of nuclear fusion as a limitless, clean energy source has long been one of humanity’s most ambitious scientific goals. Research labs and companies worldwide are working to replicate the fusion process that occurs at the sun’s core, where isotopes of hydrogen combine to form helium, releasing vast amounts of energy. While scalable fusion energy is still years away, researchers are now exploring how AI can help accelerate fusion research and bring this energy to the grid sooner. 

    In March 2025, Microsoft Research held its inaugural Fusion Summit, a landmark event that brought together distinguished speakers and panelists from within and outside Microsoft Research to explore this question. 

    Ashley Llorens, Corporate Vice President and Managing Director of Microsoft Research Accelerator, opened the Summit by outlining his vision for a self-reinforcing system that uses AI to drive sustainability. Steven Cowley, laboratory director of the U.S. Department of Energy’s Princeton Plasma Physics Laboratory (opens in new tab), professor at Princeton University, and former head of the UK Atomic Energy Authority, followed with a keynote explaining the intricate science and engineering behind fusion reactors. His message was clear: advancing fusion will require international collaboration and the combined power of AI and high-performance computing to model potential fusion reactor designs. 

    Applying AI to fusion research

    North America’s largest fusion facility, DIII (opens in new tab)-D, operated by General Atomics and owned by the US Department of Energy (DOE), provides a unique platform for developing and testing AI applications for fusion research, thanks to its pioneering data and digital twin platform. 

    Richard Buttery (opens in new tab) from DIII-D and Dave Humphreys (opens in new tab) from General Atomics demonstrated how the US DIII-D National Fusion Program (opens in new tab) is already applying AI to advance reactor design and operations, highlighting promising directions for future development. They provided examples of how to apply AI to active plasma control to avoid disruptive instabilities, using AI-controlled trajectories to avoid tearing modes, and implementing feedback control using machine learning-derived density limits for safer high-density operations. 

    One persistent challenge in reactor design involves building the interior “first wall,” which must withstand extreme heat and particle bombardment. Zulfi Alam, corporate vice president of Microsoft Quantum (opens in new tab), discussed the potential of using quantum computing in fusion, particularly for addressing material challenges like hydrogen diffusion in reactors.

    He noted that silicon nitride shows promise as a barrier to hydrogen and vapor and explained the challenge of binding it to the reaction chamber. He emphasized the potential of quantum computing to improve material prediction and synthesis, enabling more efficient processes. He shared that his team is also investigating advanced silicon nitride materials to protect this critical component from neutron and alpha particle damage—an innovation that could make fusion commercially viable.

    Microsoft Research Blog

    AIOpsLab: Building AI agents for autonomous clouds

    AIOpsLab is an open-source framework designed to evaluate and improve AI agents for cloud operations, offering standardized, scalable benchmarks for real-world testing, enhancing cloud system reliability.

    Exploring AI’s broader impact on fusion engineering

    Lightning talks from Microsoft Research labs addressed the central question of AI’s potential to accelerate fusion research and engineering. Speakers covered a wide range of applications—from using gaming AI for plasma control and robotics for remote maintenance to physics-informed AI for simulating materials and plasma behavior. Closing the session, Archie Manoharan, Microsoft’s director of nuclear engineering for Cloud Operations and Infrastructure, emphasized the need for a comprehensive energy strategy, one that incorporates renewables, efficiency improvements, storage solutions, and carbon-free sources like fusion.

    The Summit culminated in a thought-provoking panel discussion moderated by Ade Famoti, featuring Archie Manoharan, Richard Buttery, Steven Cowley, and Chris Bishop, Microsoft Technical Fellow and director of Microsoft Research AI for Science. Their wide-ranging conversation explored the key challenges and opportunities shaping the field of fusion. 

    The panel highlighted several themes: the role of new regulatory frameworks that balance innovation with safety and public trust; the importance of materials discovery in developing durable fusion reactor walls; and the game-changing role AI could play in plasma optimization and surrogate modelling of fusion’s underlying physics.

    They also examined the importance of global research collaboration, citing projects like the International Thermonuclear Experimental Reactor (opens in new tab) (ITER), the world’s largest experimental fusion device under construction in southern France, as testbeds for shared progress. One persistent challenge, however, is data scarcity. This prompted a discussion of using physics-informed neural networks as a potential approach to supplement limited experimental data. 

    Global collaboration and next steps

    Microsoft is collaborating with ITER (opens in new tab) to help advance the technologies and infrastructure needed to achieve fusion ignition—the critical point where a self-sustaining fusion reaction begins, using Microsoft 365 Copilot, Azure OpenAI Service, Visual Studio, and GitHub (opens in new tab). Microsoft Research is now cooperating with ITER to identify where AI can be exploited to model future experiments to optimize its design and operations. 

    Now Microsoft Research has signed a Memorandum of Understanding with the Princeton Plasma Physics Laboratory (PPPL) (opens in new tab) to foster collaboration through knowledge exchange, workshops, and joint research projects. This effort aims to address key challenges in fusion, materials, plasma control, digital twins, and experiment optimization. Together, Microsoft Research and PPPL will work to drive innovation and advances in these critical areas.

    Fusion is a scientific challenge unlike any other and could be key to sustainable energy in the future. We’re excited about the role AI can play in helping make that vision a reality. To learn more, visit the Fusion Summit event page, or connect with us by email at FusionResearch@microsoft.com.

    MIL OSI Economics –

  • MIL-OSI: Turbo Energy Showcasing Its Line of Innovative Ai-Optimized Sunbox Energy Storage Solutions at Intersolar Europe 2025

    Source: GlobeNewswire (MIL-OSI)

    VALENCIA, Spain, May 07, 2025 (GLOBE NEWSWIRE) — Turbo Energy S.A. (Nasdaq: TURB) (“Turbo Energy” or the “Company”), a global provider of leading-edge, AI-optimized solar energy storage technologies and solutions, today announced that the Company is showcasing its growing line of smart SUNBOX energy storage solutions at Intersolar Europe, being held in Munich, Germany beginning today and continuing through Friday, May 9, 2025.  As the world’s leading exhibition for the solar industry, Intersolar consistently attracts more than 110,000 participants each year, providing a premier opportunity to connect with partners, customers and peers across Europe and beyond. For Turbo Energy, this event is expected to play a vital role in sharing its latest energy storage advancements, strengthening business relationships and continuing to expand the Company’s impact on the global renewable energy market.

    Join Turbo Energy at Intersolar Europe 2025 in Munich, Germany at Booth B1.430 in Hall B1

    Turbo Energy can be found at Booth B1.430 in Hall B1, where several of the Company’s senior executives and top technical, sales and marketing representatives will be on hand to discuss how AI-enabled SUNBOX  solutions for residential, commercial/industrial and utility-scale applications are helping to transform the way energy is stored and managed. 

    NOTE TO MEDIA:  To schedule an interview with a member of Turbo Energy’s senior management on-site at the event, please contact Silvia Perez Rios at silviaperez@turbo-e.com. 

    About Turbo Energy, S.A.

    Founded in 2013, Turbo Energy is a globally recognized pioneer of proprietary solar energy storage technologies and solutions managed through Artificial Intelligence. Turbo Energy’s elegant all-in-one and scalable, modular energy storage systems empower residential, commercial and industrial users expanding across Europe, North America and South America to materially reduce dependence on traditional energy sources, helping to lower electricity costs, provide peak shaving and uninterruptible power supply and realize a more sustainable, energy-efficient future. A testament to the Company’s commitment to innovation and industry disruption, Turbo Energy’s introduction of its flagship SUNBOX represents one of the world’s first high performance, competitively priced, all-in-one home solar energy storage systems, which also incorporates patented EV charging capability and powerful AI processes to optimize solar energy management.  Turbo Energy is a proud subsidiary of publicly traded Umbrella Global Energy, S.A., a vertically integrated, global collective of solar energy-focused companies.  For more information, please visit www.turbo-e.com.

    Forward-Looking Statements

    Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of the business of the Company, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control, including the risks described in our registration statements and annual report under the heading “Risk Factors” as filed with the Securities and Exchange Commission. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Any forward-looking statements contained in this press release speak only as of the date hereof, and Turbo Energy, S.A. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

    For more information, please contact:
    At Turbo Energy, S.A.                                                                          
    Dodi Handy, Director of Communications                            
    Phone: 407-960-4636                                                                          
    Email: dodihandy@turbo-e.com 

    Attachment

    The MIL Network –

  • MIL-OSI Economics: Samsung Launches the 2025 TV Line-up and Exciting New Partnership With BAFTA

    Source: Samsung

     
    LONDON, UK – May 7, 2025 – Samsung Electronics UK has unveiled an exciting new partnership with BAFTA (The British Academy of Film and Television Arts), as it continues to expand its commitment to supporting the UK’s vibrant creative industries.
     
    The partnership announcement coincides with the launch of Samsung’s much-anticipated 2025 TV, projector and soundbar line-up, bringing the latest in AI-powered screen and audio innovations to British homes. Available to pre-order from today, the range will ship nationwide from Samsung.com and retail partners[1] including John Lewis, Currys, Argos, AO and Richer Sounds.
     
    Samsung partners with BAFTA to support UK creative industries
    Samsung has become the Official Screen Partner of BAFTA – underlining Samsung’s notoriety for superior picture quality and being at the heart of immersive, home entertainment. BAFTA champions and celebrates the best creative content across the screen arts’ industries – there are clear synergies between the two organisations. This collaboration marks the beginning of a joint initiative that celebrates storytelling, champions British talent, and spotlights innovation across film, games and television.
     
    Samsung is committed to enhancing how audiences experience content, both at home and beyond. This partnership aligns perfectly ahead of the upcoming BAFTA TV Awards this Sunday, as a significant portion of the UK continues to enjoy their favourite shows on Samsung TVs – now in its nineteenth year as the global market leader for TV[2].
     
    “The UK’s creative industries are thriving, driven by advances in technology, and the rise of digital-first content,” said Zeena Hill, Director of Marketing TV/AV at Samsung UK. “As more people enjoy award-winning entertainment at home, our unrivalled TV technology and innovations continue to lead the industry forwards and ensure that every creative detail is experienced at its best.
     
    “This partnership with BAFTA champions artistic expression and elevated storytelling for a richer, more immersive viewing experience for all to enjoy.”
     
    Jane Millichip, CEO at BAFTA, said: “Samsung’s commitment to innovation and excellence in home entertainment aligns perfectly with BAFTA’s mission to champion creativity and inspire audiences. Together, we look forward to celebrating the very best in screen storytelling and delivering even more engaging experiences to viewers globally.”
     
    Revolutionising TV with Samsung Vision AI
    The new Samsung 2025 line-up integrates advanced AI technologies to deliver an unparalleled and more personalised entertainment experience than ever before. Plus customers can claim up to £1000 cashback when you pre-order selected 2025 Samsung TVs and up to £400 on selected soundbars[3].
     
    Samsung’s 2025 TV line-up introduces groundbreaking innovations in picture quality and smart features. Powered by Samsung Vision AI, the latest Samsung TVs takes the viewing experience to the next level. Advanced AI technologies analyse content and surroundings to automatically optimise the picture and sound.
     
    Samsung is also introducing enhanced Glare-Free technology[4] on select models, minimising reflections while maintaining deeper blacks and clear images, even in brightly lit rooms. By using a new material, the anti-reflective properties have been greatly improved so that you can enjoy a beautiful image, regardless of the light on the screen. The Glare-Free technology has been expanded to selected Neo QLED and OLED models.
     
    The TV line-up for 2025 includes a wide range of technologies and design, including:
     
    Neo QLED 8K: With advanced Quantum Matrix Technology and Ultra Viewing Angle Technology for an unprecedented level of detail and contrast.
    Neo QLED 4K: An excellent balance between picture quality and value, with powerful processors and bright, vibrant colours. The new QN90F now also feature Glare-Free technology, and have an improved processor and faster refresh rate.
    The NEW Frame Pro enhances consumer experience by incorporating advanced Neo QLED technology, for enhanced, immersive picture quality alongside its Glare-Free Matte[5] finish to minimise distractions and compliment your interior with displaying stunning art⁳ when in standby mode.
    In addition, the newly announced and renewed Wireless One Connect box allows the TV to be connected wirelessly from up to 10 metres away, meaning that unsightly cables are a thing of the past.
    The Frame and The Frame Pro also have access to the Art Store[6], giving consumers access to over 2500+ pieces of art from some of the most well-known museums and art galleries globally.
    OLED 4K: Available in different models (S95F, S90F, S85F) with screen sizes up to 83”. Samsung is continuing to innovate with its 2025 OLED line-up, delivering powerful full-screen brightness, deep blacks, vibrant, Pantone®-validated colours and our most advanced OLED Glare-Free technology – for distraction-free viewing across any environment
    QLED 4K: Bright colours and an excellent viewing angle.
    Crystal UHD: Sharp 4K resolution and vibrant colours at an attractive price.
    NEW – The Premiere 5 is a new full HD touch interactive triple laser, ultra-short throw projector. Providing cinematic visuals and vivid colours that can project a screen up to 100 inches alongside interactive features[7].

    New Soundbar line-up: design with superior sound experience
    Samsung’s new Soundbar line-up is designed to work in sync with the new televisions and create an immersive audio experience. The top models, such as the HW-Q990F and HW-Q930F, offer a three-dimensional surround sound with support for Dolby Atmos and DTS:X, giving the audio a next generation experience. The compact subwoofer with dual active drivers of the HW-Q990F ensures a deep and powerful bass without vibrations.
     
    With its sleek, modern design the all new  QS700F Soundbar fits seamlessly into any room, with its new convertible design that can automatically detect the direction of installation through its gyro sensor and will optimise the sound accordingly – providing a perfected Dolby Atmos sound experience no matter how you install it in your home.
     
    AI-driven sound optimisation, such as Q-Symphony together with SpaceFit Sound Pro, analyse the acoustics of the room and the content played to automatically optimize the sound for a clear, balanced and spacious reproduction and intelligible dialogue.
     
    With this new line-up, Samsung is once again setting the standard for home entertainment – ​​smarter, more beautiful and more immersive than ever before.
     
    [1] Currys, John Lewis, Richer Sounds, Argos, AO, Very, Littlewoods, Amazon, Costco, Hughes Electrical and Harvey Norman.
    [2] Samsung Electronics Marks 19 Consecutive Years as the Global TV Market Leader.
    [3] Disclaimer: Samsung Electronics (UK) Limited. Purchase between 07.05.25 – 27.05.25 from a participating retailer. Claim must be submitted between 30 and 60 days of purchase. Maximum four claims per household, 10 per registered business. To claim, and for full T&Cs, see https://samsungoffers.claims/preorder2025VisionAI.
    [4] Measured against Unified Glare Rating (UGR) testing standard, validated as ‘Glare Free’ by UL.
    [5] Measured against Unified Glare Rating (UGR) testing standard, certified as glare-free (reflection, discomfort and disability glare) by UL.
    [6] Art Store subscription and Samsung Account connection required to access full selection of artwork.
    [7] Touch interaction is only available with the Touch Stand connected. Touch interaction support may vary by app, some apps may not support the feature. Some functions may be limited when using the feature.
     

    MIL OSI Economics –

  • MIL-OSI: Be Strategic in the Modern Financial Landscape with AI at the Core: Bectran to Feature AI and RPA at Credit Congress

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, May 07, 2025 (GLOBE NEWSWIRE) — Bectran, Inc., the industry leader in order-to-cash automation, is proud to return as an exhibitor and Silver Sponsor at this year’s Credit Congress & Expo, hosted by the National Association of Credit Management (NACM). Held May 17-21 in Cleveland, the 129th Credit Congress Conference brings together financial professionals from all corners of the country for a packed and insightful event of all things business credit.   

    As the pace of business accelerates and economic pressures mount, the need for connected data sources has never been more urgent. Credit teams don’t just need tools anymore, they need a foundational AI core that gives them continuous live data insights to make faster and strategic credit decisions. Bectran is addressing this head-on, guiding credit teams in operationalizing real-time data with AI and RPA for growth and proactive risk management.

    On Sunday, May 18, from 1-1:20 p.m., Bectran’s Product and Implementation Manager, David Reinauer and Business Development Manager, Sean McCaffrey, will present at the Solution Hub (Booth #109) “The Current State of Automation: AI, RPA, and the Credit Department”, fueling credit teams with practices to embed into their operations and leading playbooks to keep moving forward.

    What You’ll Learn: 

    • How leading credit teams are using AI and RPA to streamline workflows and implement real time data for confident decisions.
    • Where companies implement automation to cut DSO, accelerate processing orders on hold, and strengthen fraud prevention.
    • Practical steps to elevate your O2C strategy and build a risk control framework for scalable growth.

    “When you remove the bottlenecks—manual reviews, disconnected data, slow approvals—you give credit teams room to think, act, and lead. We’re not just speeding things up, we’re helping companies make decisions they trust, even under pressure,” says David Reinauer, Bectran’s Product and Implementation Manager. 

    Throughout the event, visitors to Booth #517 will get a firsthand look at how Bectran embeds automation and AI/RPA into the core of the O2C lifecycle to create a connected ecosystem of data intelligence. From real-time risk analysis and consolidated workflows to streamlined approvals and payment processing, Bectran equips teams with speed, intelligence, and control they need to operate in today’s high stakes volatile environment.

    For credit professionals navigating uncertainty or preparing for growth, the message is clear: modern credit management starts with better data, smarter tools, and the confidence to act quickly. Bectran is helping companies get there—one intelligent decision at a time.

    To learn more, stop by Booth #517 or visit www.Bectran.com.

    About Bectran
    Bectran is the creator of Intelligent CreditOps—an enterprise-grade solution that modernizes the core of credit, collections, and receivables. While most finance tools are fragmented or retrofitted, Bectran offers a unified foundation, purpose-built to automate routine and deeply analytical processes, connect real-time data, and scale credit operations with confidence.  

    Trusted by finance teams at every stage of growth—from mid-market leaders to Fortune 100 enterprises—Bectran replaces manual, error-prone processes with intelligent, adaptable workflows across the order-to-cash cycle, giving companies the clarity, control, and confidence to drive growth without increasing risk.

    Contact
    Jessica Porco
    pr@bectran.com

    The MIL Network –

  • MIL-OSI Global: Europe is moving to reposition itself in Donald Trump’s new global order

    Source: The Conversation – UK – By Stefan Wolff, Professor of International Security, University of Birmingham

    FabrikaSimf/Shutterstock

    The term that perhaps best describes the international impact of the first 100 days of Donald Trump’s second term is “disruption”. His tariff policy, his abolition of USAID, his questioning of the transatlantic alliance, and his attempted rapprochement with Russia have neither destroyed the liberal international order nor established anything new in its place.

    But the prospects of liberal internationalism under Trump are vanishingly small. And Trumpism, in the guise of an America-first foreign policy, is likely to outlast Trump’s second term.

    That the US is no longer the standard bearer of the liberal international order has been clear for some time. Trump and his Russian and Chinese counterparts, Vladimir Putin and Xi Jinping, appear to see themselves as dominant players in a new multi-polar world order. But it is not clear that a grand bargain between them is possible – or that it would endure.

    Europe is particularly vulnerable to these changes in the international order. Having been able to rely for the past eight decades on an iron-clad American security guarantee, European countries chronically under-invested in their defence capabilities, especially since the end of the cold war.

    Sign up to receive our weekly World Affairs Briefing newsletter from The Conversation UK. Every Thursday we’ll bring you expert analysis of the big stories in international relations.

    Defence spending as a proportion of GDP may have increased over the past decade but remains lacklustre. And investment into an independent European defence industrial base faces many hurdles.

    These deficiencies predated Trump’s return to the White House. Addressing them will only be possible in a time frame beyond his second term. With no dependable partners left among the world’s great powers, Europe’s predicament – unenviable as it may be for the moment – nonetheless offers an opportunity for the continent to begin to stand on its own feet.

    Early signs of a more independent Europe are promising. In March, the European commission released a white paper on defence which anticipates defence investment of €800 billion (£680 billion) over the next four years.

    The bulk of this will rely on the activation of the so-called “national escape clause”. This allows EU member states to escape penalties if they exceed the normal deficit ceiling of 3% GDP.

    Once activated for the purpose of defence spending, they can now take on additional debt of up to 1.5% of their GDP. By the end of April, 12 EU member states had already requested that the national escape clause be activated, with several more expected to follow.

    Defence is clearly the most urgent problem for Europe. But it isn’t the only aspect to consider when it comes to achieving greater strategic autonomy, something that the European Union has grappled with for more than a decade. In other areas, such as trade and energy, the starting point is a very different one.

    Regarding energy independence, the EU has achieved a remarkable and quick pivot away from Russia. It has just released a final plan to stop all remaining gas imports from Russia by the end of 2027.

    On trade, Donald Trump’s America-first tariff policy has done significant damage to the global system. This has, in turn, created opportunities for the EU, as one of the world’s largest trading blocs, including greater cooperation with China, already one of its largest trading partners.

    Complex relationships

    China and the EU clearly share an interest in preserving a global trade regime from which both have benefited. But their economic interests cannot be separated easily from their geopolitical interests. So far, China has sent very mixed signals to Europe.

    Beijing has, for example, proposed to lift sanctions against some members of the European parliament who have been critical of China in a show of goodwill. But China’s support for Russia continues as well, most recently with Xi’s commitment to visit Moscow for the victory day parade on May 9.

    Standing with Moscow may benefit Beijing in its rivalry with the US by solidifying the no-limits partnership that Xi and Putin announced on the eve of Russia’s full-sale invasion in February 2022. But it does little to win the EU over as a partner in defence of the open international order that Trump is trying his best to shutter.

    On the contrary, in reaffirming China’s commitment to its partnership with Russia, Xi may well have lost whatever chances there were for a European realignment with China.

    The complexities of the EU-China and EU-US relationships – a curious mix of rapidly shifting interests – reflects the EU’s position as the natural centre of gravity of what is left of the west. This is evident in the rapid evolution of the “coalition of the willing” in support of Ukraine, which brings together 30 countries from across the EU and Nato under French and British leadership.

    Beyond Europe, Trump’s tariff policy has given plans for a strategic partnership between the EU and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) a new lease of life. The CPTPP is a group of 11 Indo-Pacific countries and the UK, which joined last December. It is one of the world’s largest free trade areas, accounting for approximately 15% of global GDP.

    Even without US and Chinese membership, a partnership between the EU and the CPTPP would wield significant power in the global economic system and could play a future role in shielding its members from an intensifying US-China trade war.

    Limited alternatives

    None of the steps taken by the EU and its partners on the continent and elsewhere require the breakdown in the transatlantic relationship that the Trump administration appears keen to engineer. But speeches by both the US vice president, J.D. Vance, and the secretary of state, Marco Rubio, were clear that America’s relationship with Europe is changing.

    Washington, under its current leadership, increasingly leans towards the political forces in Europe that are opposed to the values on which the continent has been orientated since 1945. This leaves Europe few options but to seek more independence from the US.

    Get your news from actual experts, straight to your inbox. Sign up to our daily newsletter to receive all The Conversation UK’s latest coverage of news and research, from politics and business to the arts and sciences. Join The Conversation for free today.

    A more independent Europe is unlikely to become a global superpower on par with the US or China. But it will be better able to hold its own in a geopolitical environment that is less based on rules and more on power.

    The EU currently enjoys historically high approval ratings among its citizens – who also support more unity and a more active role for the EU in protecting them from global security risks.

    It’s increasingly clear that EU leaders and their partners have a unique opportunity – and an obligation – to carve out a more secure and independent space in a hostile global environment.

    Stefan Wolff is a past recipient of grant funding from the Natural Environment Research Council of the UK, the United States Institute of Peace, the Economic and Social Research Council of the UK, the British Academy, the NATO Science for Peace Programme, the EU Framework Programmes 6 and 7 and Horizon 2020, as well as the EU’s Jean Monnet Programme. He is a Trustee and Honorary Treasurer of the Political Studies Association of the UK and a Senior Research Fellow at the Foreign Policy Centre in London.

    – ref. Europe is moving to reposition itself in Donald Trump’s new global order – https://theconversation.com/europe-is-moving-to-reposition-itself-in-donald-trumps-new-global-order-255344

    MIL OSI – Global Reports –

  • MIL-OSI: Coface SA: Publication of Group and Standalone SFCR as of 31 December 2024

    Source: GlobeNewswire (MIL-OSI)

    COFACE SA: Publication of Group and Standalone SFCR as of 31 December 2024

    Paris, 7 May 2025 – 17.45

    COFACE SA has published today its Solvency and Financial Condition Report (SFCR) for COFACE SA (Group) and Compagnie française d’assurance pour le commerce extérieur (the « Compagnie »), in compliance with the Solvency II requirements1.

    The Board of Directors of COFACE SA and the Compagnie, respectively approved the SFCR for the financial year 2024. This report is produced on an annual basis:

    • for Coface Group, involving COFACE SA and its main subsidiaries in France and outside France;
    • for the Compagnie, on a standalone basis.

    HIGHLIGHTS

    • To assess its solvency, COFACE SA uses the partial internal model approved by the ACPR in 2019. The Compagnie’s solvency is still assessed using the interpretation of the standard formula.
    • As of 31 December 2024, eligible own funds to cover the Group’s SCR amounted to €2,630 million, which broke down as follows:
      • 75% of Tier 1 capital;
      • 24% of Tier 2 capital;
      • 1% of Tier 3 capital, representing deferred tax assets.
    • The Group’s SCR coverage ratio of 196%2 at the end of 2024 reflects a solvency ratio above its target range (155% -175%). This level supports the Group’s decision to distribute 80% of its net profit for 2024 by a €1.403 dividend per share.
    • The coverage ratio of the Compagnie SCR (Solo) at the end of 2024 is 237%4.

    The full report is available on the website of the Company at the following address:
    https://www.coface.com/investors/regulated-information/annual-reports

    CONTACTS

    ANALYSTS / INVESTORS
    Thomas JACQUET: +33 1 49 02 12 58 – thomas.jacquet@coface.com
    Rina ANDRIAMIADANTSOA: +33 1 49 02 15 85 – rina.andriamiadantsoa@coface.com

    MEDIA RELATIONS
    Saphia GAOUAOUI: +33 1 49 02 14 91 – saphia.gaouaoui@coface.com
    Adrien BILLET: +33 1 49 02 23 63 – adrien.billet@coface.com

    FINANCIAL CALENDAR 2025
    (subject to change)

    Annual General Shareholders’ Meeting: 14 May 2025
    H1-2025 results: 31 July 2025 (after market close)
    9M-2025 results: 3 November 2025 (after market close)

    FINANCIAL INFORMATION
    This press release, as well as COFACE SA’s integral regulatory information, can be found on the Group’s website: http://www.coface.com/Investors

    For regulated information on Alternative Performance Measures (APM), please refer to our Interim Financial Report for H1-2024 and our 2024 Universal Registration Document (see part 3.7 “Key financial performance indicators”).

    Regulated documents posted by COFACE SA have been secured and authenticated with the blockchain technology by Wiztrust.
    You can check the authenticity on the website www.wiztrust.com.
     

    COFACE: FOR TRADE
    As a global leading player in trade credit risk management for more than 75 years, Coface helps companies grow and navigate in an uncertain and volatile environment.
    Whatever their size, location or sector, Coface provides 100,000 clients across some 200 markets with a full range of solutions: Trade Credit Insurance, Business Information, Debt Collection, Single Risk insurance, Surety Bonds, Factoring.
    Every day, Coface leverages its unique expertise and cutting-edge technology to make trade happen, in both domestic and export markets.
    In 2024, Coface employed ~5,236 people and registered a turnover of €1.84 billion.

    www.coface.com

    COFACE SA is quoted in Compartment A of Euronext Paris
    Code ISIN: FR0010667147 / Ticker: COFA

    DISCLAIMER – Certain declarations featured in this press release may contain forecasts that notably relate to future events, trends, projects or targets. By nature, these forecasts include identified or unidentified risks and uncertainties, and may be affected by many factors likely to give rise to a significant discrepancy between the real results and those stated in these declarations. Please refer to chapter 5 “Main risk factors and their management within the Group” of the Coface Group’s 2024 Universal Registration Document filed with AMF on 5 April 2024 under the number D.25-0227 in order to obtain a description of certain major factors, risks and uncertainties likely to influence the Coface Group’s businesses. The Coface Group disclaims any intention or obligation to publish an update of these forecasts, or provide new information on future events or any other circumstance.

    1 The Solvency II Directive (i) formalises and organises information requests, and (ii) clarifies the governance requirements and processes to be followed by insurers. In particular, the regulations provide for the establishment of two narrative reports: one for the Regulator (RSR) and one for the public (SFCR).
    2 Final calculation of the SCR coverage ratio using the partial group internal model. Non audited.
    3 Ex-dividend date is on 20 May 2025 and Payment date is on 22 May 2025. The proposed distribution of €1.40 per share is subject to approval of the Annual Shareholders’ Meeting that takes place on 14 May 2025.
    4 Final calculation of the SCR coverage ratio according to Coface’s interpretation of Solvency II standard formula. Non audited.

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    The MIL Network –

  • MIL-OSI: Shareholders’ Meeting of May 7, 2025

    Source: GlobeNewswire (MIL-OSI)

    Media relations:
    Victoire Grux
    Tel. : +33 6 04 52 16 55
    victoire.grux@capgemini.com

    Investor relations:
    Vincent Biraud
    Tel. : +33 1 47 54 50 87
    vincent.biraud@capgemini.com

    Shareholders’ Meeting of May 7, 2025

    Paris, May 7, 2025 – The Shareholders’ Meeting of Capgemini SE, held today at the Pavillon Gabriel in Paris, adopted all the resolutions proposed by the Board of Directors.

    Shareholders approved the proposed distribution of a dividend of 3.40 euros per share in respect to the 2024 financial year, to be paid from May 22, 2025, with an ex-dividend date of May 20, 2025.

    The Shareholders’ Meeting also approved the renewal of the terms of office of Mr. Patrick Pouyanné and Mr. Kurt Sievers, independent directors, and the appointment of Mr. Jean-Marc Chéry as member of the Board of Directors, for a term of four years.

    Mr. Jean-Marc Chéry, a French national, is the President and Chief Executive Officer of STMicroelectronics, a global semiconductor company at the heart of the Intelligent Industry, committed to manufacturing sustainable technologies and offering its customers innovative solutions. He also brings to the Board his expertise in technology, artificial intelligence, and industry knowledge, particularly in the automotive and energy sectors. The Board has indicated that it considers Mr. Jean-Marc Chéry to be an independent director in accordance with the criteria of the AFEP-MEDEF Code to which the Company refers.

    At the end of this Shareholders’ Meeting, the Board of Directors of Capgemini SE has 15 directors1, including two directors representing employees and one director representing employee shareholders. Of its members, 83% are independent directors2, 40% are international directors, and 42% are women2.

    Moreover, the Shareholders’ Meeting approved, by a vast majority, the 2024 compensation components and benefits paid or granted to Paul Hermelin, Chairman of the Board, as well as to Aiman Ezzat, Chief Executive Officer. The report on the compensation of corporate officers and the various 2025 compensation policies for executive corporate officers and directors was also approved.

    Finally, the Shareholders’ Meeting approved the amendment of the Company’s bylaws and all the financial delegations granted to the Board of Directors.

    A detailed breakdown of voting results as well as full webcast of the Shareholders’ Meeting can be found on the Capgemini website: https://investors.capgemini.com/en/event/2025-shareholders-meeting/.

    About Capgemini
    Capgemini is a global business and technology transformation partner, helping organizations to accelerate their dual transition to a digital and sustainable world, while creating tangible impact for enterprises and society. It is a responsible and diverse group of 340,000 team members in more than 50 countries. With its strong over 55-year heritage, Capgemini is trusted by its clients to unlock the value of technology to address the entire breadth of their business needs. It delivers end-to-end services and solutions leveraging strengths from strategy and design to engineering, all fueled by its market leading capabilities in AI, generative AI, cloud and data, combined with its deep industry expertise and partner ecosystem. The Group reported 2024 global revenues of €22.1 billion.
    Get The Future You Want | www.capgemini.com

    APPENDIX 1

    Composition of the Capgemini SE Board of Directors and of its committees following the Shareholders’ Meeting of May 7, 2025

    Composition of the Board of Directors:
    Paul Hermelin – Chairman
    Aiman Ezzat – CEO
    Jean-Marc Chéry
    Megan Clarken
    Ulrica Fearn
    Maria Ferraro
    Pierre Goulaieff – Director representing employees
    Siân Herbert-Jones
    Hervé Jeannin – Director representing employees
    Christophe Merveilleux du Vignaux – Director representing employee shareholders
    Belen Moscoso del Prado Lopez-Doriga
    Xavier Musca
    Frédéric Oudéa – Lead Independent Director and Vice-Chairman
    Patrick Pouyanné
    Kurt Sievers

    Composition of the committees of the Board:

    Audit & Risk Committee: Xavier Musca (Chair), Ulrica Fearn, Maria Ferraro, Siân Herbert-Jones. 

    Compensation Committee: Patrick Pouyanné (Chair), Pierre Goulaieff, Christophe Merveilleux du Vignaux, Belen Moscoso del Prado, Kurt Sievers.

    Ethics & Governance Committee: Frédéric Oudéa (Chair), Siân Herbert-Jones, Xavier Musca, Patrick Pouyanné.

    Strategy & CSR Committee: Paul Hermelin (Chair), Jean-Marc Chéry, Megan Clarken, Aiman Ezzat, Hervé Jeannin, Kurt Sievers.

    1 See the composition of the Capgemini SE Board of Directors and its committees in the appendix.
    2 The directors representing employees and employee shareholders are not taken into account in calculating this percentage, in accordance with the provisions of the AFEP-MEDEF Code and the French Commercial Code currently in force.

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