NewzIntel.com

Category: Machine Learning

  • MIL-OSI Economics: It’s been a busy few weeks – between today’s earnings and some of our recent announcements. Here are a few things I wanted to highlight…

    Source: Microsoft

    Headline: It’s been a busy few weeks – between today’s earnings and some of our recent announcements. Here are a few things I wanted to highlight…

    It’s been a busy few weeks – between today’s earnings and some of our recent announcements. Here are a few things I wanted to highlight: We are riding multiple compounding S curves in pre-training, inference time, and systems design, driving model performance that is doubling every 6 months. Azure is the infrastructure layer for AI, optimized across every layer: DCs, silicon, systems software, and models to lower costs and increase performance. We are delivering more performance per megawatt, lower cost per token, and faster dock-to-live times. Frontier firms are incorporating AI into everyday workflows, transforming work and work artifacts. Microsoft 365 Copilot is now being used by hundreds of thousands of customers across industries, up 3X year-over-year. I’m especially excited about our new Researcher and Analyst agents, like having a highly trained expert on call 24/7. And our customers have created over 1 million agents of their own using SharePoint and Copilot Studio. On the consumer side: Our ad revenue surpassed $20 billion over the past year. Only at Microsoft could that almost get overlooked! LinkedIn continues to grow fast, with double-digit membership gains. And we again took share across Bing and Edge. And we are building daily engagement and successful sessions with our Copilot app, which got a big update earlier this month. And, yes, blocks can be stars: Minecraft weekly active users jumped 75% year-over-year after the movie release. You can read more about our results here: https://lnkd.in/gjWnuT9H

    MIL OSI Economics –

  • MIL-OSI China: China passes new law in major push to bolster private sector

    Source: People’s Republic of China – State Council News

    BEIJING, April 30 — China’s national lawmakers on Wednesday voted to adopt the country’s first fundamental law dedicated to promoting the private sector, underscoring support for a key part of the world’s second-largest economy.

    After over a year of legislative process, the private sector promotion law, passed at a session of the Standing Committee of the National People’s Congress, will take effect on May 20, 2025.

    The law stipulates that the promotion of the sustainable, healthy and high-quality development of the private economy is a significant and long-term policy of China.

    From ensuring fair market access and financing support to enhancing services and protection of original innovation, the 78-article law cements efforts to encourage, support and guide the growth of the private sector.

    The law will provide a clearer and more solid legal guarantee for the private sector, said Li Shuguang, a professor at China University of Political Science and Law.

    This marks China’s latest step in strengthening the sector — recognized by the law as a key component of the socialist market economy — amid efforts to tackle economic headwinds both at home and abroad.

    Officials and analysts view the formation and adoption of the law as “highly timely and absolutely essential,” given the private sector’s significant role in the economy.

    Boosting the private sector should feature prominently on the country’s economic policy agenda: Whether it is to stimulate domestic demand, expand the domestic market, or boost production and improve the quality of supply, private businesses will be a key participant and contributor, according to Anbound, an independent think tank in China.

    Private enterprises have long been a key driving force behind China’s economic growth, contributing more than 60 percent of GDP and 80 percent of urban employment. By the end of March 2025, the country’s more-than-57-million registered private enterprises made up over 92 percent of all businesses in China.

    From electric vehicle maker BYD to artificial intelligence innovator DeepSeek and robotics pioneer Unitree Robotics, private enterprises have also become key players in China’s push for innovation-driven growth.

    Yet, industry insiders note that challenges remain — domestically, private businesses may face financing constraints and invisible market access barriers in some sectors; while abroad, they must navigate increasing impact from external shocks.

    The law will transform policy support into legal guarantees, giving entrepreneurs greater reassurance and motivation to keep moving forward, said Qi Xiangdong, chairman of cybersecurity firm Qi-Anxin and vice chairman of the All-China Federation of Industry and Commerce.

    “The rule of law is the best business environment,” Qi said.

    In February, the country held a high-level symposium on private enterprises, which was widely viewed as a strong signal to boost the confidence and growth of the private sector.

    A month later, at the “two sessions”, the country reiterated support for private enterprises, vowing to take effective moves to stimulate the vitality of all market entities.

    To support the private sector, China has established a special bureau under the National Development and Reform Commission (NDRC) dedicated to serving the sector’s development. Multiple provincial-level regions, including Guangdong, Shanxi, Qinghai and Zhejiang, have all set up such bureaus.

    Efforts to level the playing field are also underway. Last week, the NDRC unveiled the new version of the market access negative list, which specifies fields that are off-limits to both domestic and overseas business entities, reducing the number of items on the list from 117 to 106.

    Nan Yi, chairman of Wontai Group, said the law will support private firms’ entry into sectors such as infrastructure and energy, and provide a strong guarantee for their continuous investment in research and development.

    “The enactment of this law will inject strong impetus into the sound development of the private economy,” Nan said.

    MIL OSI China News –

  • MIL-OSI USA: Rosen Bipartisan Bill to Strengthen U.S. Telecommunications Against Foreign Adversaries Advances Out of Committee

    US Senate News:

    Source: United States Senator Jacky Rosen (D-NV)

    WASHINGTON, DC – Today, in the U.S. Senate Commerce Committee, Senator Jacky Rosen (D-NV) helped advance legislation she introduced with Senator Deb Fischer (R-NE) to strengthen American telecommunications against foreign adversaries. The bipartisan Foreign Adversary Communications Transparency (FACT) Act would require the Federal Communications Commission (FCC) to publicly identify entities that hold FCC licenses, authorizations, or other grants of authority that are owned, wholly or partially, by foreign, adversarial governments. It now awaits consideration on the Senate floor.
    “We must protect our nation in every way we can from global adversaries who are trying to hack our systems and access our information,” said Senator Rosen. “I’m glad to see that our bipartisan bill to help protect our telecommunications systems from adversarial nations, including China, Russia, and Iran, passed out of committee today. I’ll keep pushing to secure our networks and strengthen our national security.”
    “We cannot let authoritarian and adversarial regimes like China and Russia continue to have silent footholds in our tech and telecommunications markets,” said Senator Fischer. “My bill will direct the FCC to evaluate the communications risks foreign ownership ties pose to America’s national security and ensure that we can respond to these threats. I’m grateful a bipartisan group of my colleagues voted yes on this legislation, and I look forward to its passage on the Senate Floor.”
    Senator Rosen has been pushing to reduce the influence of our adversaries and strengthen our national security. Earlier this month, her bipartisan bill to direct the U.S. Department of State and other federal agencies to assess and counter Hezbollah’s influence in Latin America advanced in committee. Rosen also helped introduce the bipartisan No Immigration Benefits for Hamas Terrorists Act to prevent any person who participated in Hamas’s October 7 terrorist attacks from entering the United States. Additionally, Senator Rosen introduced bipartisan legislation to prohibit the use of DeepSeek — a new artificial intelligence (AI) platform with direct ties to the Chinese Communist Party — on all government devices and networks.

    MIL OSI USA News –

  • MIL-OSI USA: Video: Kaine Speaks on Senate Floor in Advance of Vote on His Bipartisan Legislation to End Trump’s Global Tariffs

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    FULL VIDEO OF KAINE’S FLOOR SPEECH IS AVAILABLE HERE.

    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) spoke on the Senate floor ahead of the Senate’s expected vote later tonight on his bipartisan legislation to repeal President Trump’s across-the-board tariffs that the White House announced on April 2. These tariffs are a national sales tax – in total, Trump’s tariffs will cost the average American household nearly $5,000 per year. In the wake of President Trump’s trade wars, manufacturers have already laid off workers, foreign countries have imposed retaliatory tariffs on U.S. agricultural and manufactured goods, and the economy has contracted.

    “The Constitution of the United States puts two powers clearly … within the hands of Congress: the power to tax and the power to conduct trade policy, including the imposition of tariffs,” said Kaine. “But President Trump finds Congress an inconvenience, and he has decided to take both of these powers onto his own shoulders by imposing a national sales tax.”

    “President Trump on Inauguration Day inherited the strongest economy on the Planet Earth,” Kaine continued. “We know this morning, that strong economy, which was growing for three years at a very solid pace, is now contracting. It’s not only the contraction of the economy, it’s the chaos of the stock market. It’s declining consumer confidence. It’s projections of recession by Federal Reserve districts and major economists.”

    “Last week, I traveled around the Commonwealth of Virginia,” Kaine said. “I talked to businesses everywhere in my state—and they talked about the layoffs, and they talked about the spending cuts, and they talked about the tariffs. And they added those three together and said what those three add up to is chaos—the chaos of unpredictability.”

    Kaine continued, “A tariff is nothing more than a sales tax. It’s a sales tax on the products that everyday Americans use, especially groceries and clothing, building supplies. For farmers, the cost of fertilizer that they need as they’re engaging in spring planting … This is a sales tax on everyone in the country, but it’s a sales tax—as all sales tax do—that falls hardest on those who can least afford it.”

    “A larger share of manufacturers are reporting declines in new orders … Some of those declines are driven because of the price effect of tariffs, the price effect of retaliatory tariffs, but some are also being driven by the uncertainty. There is a chaos penalty to the economy. When you’re not sure what’s going to happen, you slow your investments, and that’s why you see a decline in manufacturing,” Kaine said. “Businesses want to have predictability.”

    “So how did we get here? From an economy on Inauguration Day that was the strongest in the world—when President Trump stood 50 yards from here and said it was a golden age—to an economy that has nothing but red lights and question marks all over it?” Kaine asked. “We got here because one individual decided to bypass Congress to take both the taxing power and the trade power into his own hands without a debate, without a committee hearing, without deliberation, without considering what people thought about the plan, and that one man and his decisions have taken a chainsaw to the American economy.

    Kaine concluded, “We must turn this around, and the good news is the Senate has the ability to turn it around … All the economic trends are pointing the same direction. We should take a different path on the economy before it gets worse. The vote we will have later today gives the Senate—the greatest deliberative body in the world—the chance to stand up and say ‘Let’s take a different path.’”

    Earlier this month, bipartisan legislation led by Kaine to reverse President Trump’s tariffs on Canadian goods, which amount to a 25 percent tax on imports, passed the Senate.

    MIL OSI USA News –

  • MIL-OSI USA: Sen. Kelly, Sen. Young, Rep. Garamendi, Rep. Kelly Introduce SHIPS for America Act to Boost American Shipbuilding, Strengthen US Economy and National Securit

    Source: United States House of Representatives – Representative Trent Kelly (R-Miss)

    WASHINGTON, D.C. – Today, Senator Mark Kelly (D-AZ), Senator Todd Young (R-IN), Representative John Garamendi (D-CA-8), and Representative Trent Kelly (R-MS-1) re-introduced the Ship-building and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act, comprehensive legislation to revitalize the United States shipbuilding and commercial maritime industries. Other cosponsors in the Senate include Senator Lisa Murkowski (R-AK) and Senator John Fetterman (D-PA).

    There are currently 80 U.S.-flagged vessels in international commerce while China has 5,500. The SHIPS for America Act aims to close this gap and boost the U.S. Merchant Marine by establishing national oversight and consistent funding for U.S. maritime policy, making U.S.-flagged vessels commercially competitive in international commerce by cutting red tape, rebuilding the U.S. shipyard industrial base, and expanding and strengthening mariner and shipyard worker recruitment, training, and retention.

    “After decades of dangerously neglecting our shipbuilding industry, we’re finally doing something about it. The SHIPS for America Act is the most ambitious effort in a generation to revitalize the U.S. shipbuilding and commercial maritime industries and counter China’s dominance over the oceans,” said Senator Kelly, a U.S. Navy veteran and the first U.S. Merchant Marine Academy graduate to serve in Congress. “Building and staffing more U.S.-flagged ships will create good-paying American jobs, make our supply chains more resilient, lower costs, and strengthen our ability to resupply our military at times of war. We’ll keep working with our colleagues in Congress, this administration, and our partners in the industry to make our country safer and competitive by passing the SHIPS for America Act.”

    “America has been a maritime nation since our founding, and seapower was a significant contributor to our rise to being the most powerful nation on earth. Unfortunately, the bottom line now is America needs more ships. Shipbuilding is a national security priority and a stopgap against foreign threats and coercion. Our bill will revitalize the U.S. maritime industry, grow our shipbuilding capacity, rebuild America’s shipyard industrial base, and support nationwide workforce development in this industry. This legislation is critical to our warfighting capabilities and keeping peace with China,” said Senator Young, a U.S. Naval Academy graduate.

    “Strengthening America’s shipbuilding capacity and revitalizing our commercial maritime industry is critical to national security and economic resilience. Under President Trump’s leadership, we’re prioritizing these vital sectors. I’m proud to work alongside Senator Mark Kelly, Senator Todd Young, and Congressman John Garamendi to help safeguard our maritime future,” said Congressman Kelly.

    “With China’s growing influence in the global maritime sector, the United States can no longer afford to overlook our maritime industries. The SHIPS for America Act will give our shipyards and merchant mariners the tools they need to rebuild America’s maritime industry and create good-paying American jobs,” said Congressman Garamendi. “I’m proud to lead this effort alongside Senator Kelly, Senator Young, and Representative Kelly to strengthen America’s national security, economic strength, and global leadership on the high seas.”

    “Because of our vast geography, the maritime industry is uniquely vital to Alaska, with many of our coastal communities relying on a strong U.S.-flagged fleet for everything from everyday logistics, to commercial fishing and homeland defense. I am proud to cosponsor the SHIPS Act, which advances common-sense solutions that will invest in the workforce and revitalize our nation’s shipbuilding, increasing Alaska’s resilience and security,” said Senator Murkowski.

    When it comes to maintaining our competitive edge against China, failure is not an option. The SHIPS for America Act will help the United States compete with China’s production of ships while creating new manufacturing jobs in shipyards across the nation,” said Senator Fetterman. “Not only will this strengthen our national security, but it’ll also grow our local economies and support working families right here in Pennsylvania. I’m proud to support this commonsense, bipartisan legislation that will help us build more ships in America and stand up to China.”

    The SHIPS for America Act would:
    • Coordinate U.S. maritime policy by establishing the position of Maritime Security Advisor within the White House, who would lead an interagency Maritime Security Board tasked with making whole-of-government strategic decisions for how to implement a National Maritime Strategy. The bill also establishes a Maritime Security Trust Fund that would reinvest duties and fees paid by the maritime industry into maritime security programs and infrastructure supporting maritime commerce.
    • Establish a national goal of expanding the U.S.-flag international fleet by 250 ships in 10 years by creating the Strategic Commercial Fleet Program, which would facilitate the development of a fleet of commercially operated, U.S.-flagged, American crewed, and domestically built merchant vessels that can operate competitively in international commerce.
    • Enhance the competitiveness of U.S.-flagged vessels in international commerce by establishing a Rulemaking Committee on Commercial Maritime Regulations and Standards to cut through the U.S. Coast Guard’s bureaucracy and red tape that limits the international competitiveness of U.S.-flagged vessels, modify duties to make cargo on U.S.-flagged vessels more competitive, requiring that government-funded cargo move aboard U.S.-flagged vessels, and requiring a portion of commercial goods imported from China to move aboard U.S.-flagged vessels starting in 2030.
    • Expand the U.S. shipyard industrial base, for both military and commercial oceangoing vessels, by establishing a 25 percent investment tax credit for shipyard investments, transforming the Title XI Federal Ship Financing Program into a revolving fund, and establishing a Shipbuilding Financial Incentives program to support innovative approaches to domestic ship building and ship repair.
    • Make historic investments in maritime workforce by supporting a Maritime Workforce Promotion and Recruitment Campaign, allowing mariners to retain their credentials through a newly established Merchant Marine Career Retention Program, investing in long-overdue infrastructure needs for the U.S. Merchant Marine Academy, and supporting State Maritime Academies and Centers for Excellence for Domestic Maritime Workforce Training and Education. The bill also makes long-overdue changes to streamline and modernize the U.S. Coast Guard’s Merchant Mariner Credentialing system.

    The legislation will be introduced in two pieces in the Senate, the SHIPS for America Act and the Building SHIPS in America Act.

    Background:
    Since first introducing the SHIPS for America Act in December, the urgency to boost American shipbuilding has emerged as a priority of bipartisan consensus this year, particularly after the U.S. Trade Representative revealed its findings regarding China’s shipbuilding dominance and President Trump signed a shipbuilding executive order.

    Sen. Kelly earned his B.S. degree in marine engineering and nautical science from the United States Merchant Marine Academy (USMMA) and later an M.S. degree in aeronautical engineering from the United States Naval Postgraduate School. He spent 25 years in the United States Navy as a pilot and is the first ever USMMA alumnus to serve in Congress. In 2023, he was elected chair of the USMMA Board of Visitors for the 118th Congress.

    The following organizations have endorsed the SHIPS for America Act:
    Keystone Shipping Company, American Shipbuilding Suppliers Association, Navy League, General Dynamics-NASSCO, American Waterway Operators, American Maritime Partnership, San Jacinto College, Oceantic Network, California State University Maritime Academy, Maine Maritime Academy, Senesco Marine, Massachusetts Maritime Academy, Great Lakes Maritime Academy, USMMA Alumni Association and Foundation, American Maritime Officers, International Organization of Masters, Mates & Pilots, Maritime Institute for Research and Industrial Development (MIRAID), International Propeller Club, Crowley, American Maritime Officers Service, The Pasha Group, Saltchuk, Tropical, Saltchuk Marine, Overseas Shipholding Group, Core Power, Govini, US Ocean, Small Shipyard Grant Coalition, The American Club, Transportation Institute, Blue Water Autonomy, American Bureau of Shipping, With Honor Action, Texas A&M Maritime Academy, National Defense Transportation Association (NDTA), American Iron and Steel Institute, Shipbuilders Council of America, Maritime Association of the Port of NY/NJ, United Steelworkers, International Association of Machinists and Aerospace Workers, Matson, American Legion, Inc., Marine Engineers’ Beneficial Association (M.E.D.A.), Ocean Shipholdings, Inc, Offshore Marine Service Association (OMSA), Hanwha Philly Shipyard, Ports America, Seafarers International Union (SIU), U.S. Marine Management, AUVSI, Maritime Accelerator for Resilience, Cleveland-Cliffs Inc., Chamber of Shipping of America, National Association of Waterfront Employers (NAWE), Association for Materials Protection and Performance (AMPP), California Forever, International Federation of Professional and Technical Engineers (IFPTE), Alliance for American Manufacturing, Nucor, Steel Manufacturers Association, Blue Sky Maritime, New American Industrial Alliance, and Ship Operations and Marine Technical Support (SOMTS).

    See what maritime leaders and stakeholders are saying about the SHIPS for America Act:
    “The USA Maritime coalition supports the SHIPS for America Act and has been honored to work with Senators Kelly and Young and Congressmen Garamendi and Kelly as the bill has taken shape over the last two years. This bill represents the most comprehensive maritime policy initiative in more than half a century. Now, more than ever, the United States needs a strong, vibrant and growing Merchant Marine, capable of carrying a substantial portion of our foreign commerce and supporting our military in time of war. This initiative will ensure our country has the U.S.-Flag ships and American mariners needed to preserve, protect and defend America and our economic security. We look forward to continuing to work with Congress on this legislation,” said Brian W. Schoeneman, Chair, USA Maritime.

    “The Shipbuilders Council of America commends Senator Kelly, Congressman Kelly, Senator Young, and Congressman Garamendi for their leadership in advancing the SHIPS for America Act. This legislation represents a significant step forward in strengthening the nation’s shipyard industrial base and establishing a comprehensive national maritime strategy. We are encouraged by its focus on bolstering American shipbuilding and ensuring a robust maritime sector capable of supporting our nation’s economic and national security. SCA is committed to continuing its engagement with these Congressional members and staff to refine and enhance the legislation, especially to better support our domestic ship repair industry, and we look forward to collaborating with policymakers to ensure the success of initiatives that secure the future of America’s shipyard industrial base and maritime workforce,” Matthew Paxton, President, Shipbuilders Council of America.

    “The Navy League applauds the introduction of the SHIPS for America Act, a landmark legislative achievement that will comprehensively meet the needs of the U.S. merchant marine and bolster our shipbuilding industrial base. In today’s global threat environment, arguably the most perilous since the end of the Cold War, the United States must not only maintain the finest Navy, Marine Corps, and Coast Guard on the seas, but also ensure a robust U.S.-flag merchant marine and a resilient shipbuilding industrial base. These elements are crucial for safeguarding our national and economic security in the event of large-scale military conflict. The SHIPS for America Act addresses these vital considerations and reaffirms that America is, and always will be, a maritime nation,” said Mike Stevens, CEO, Navy League.

    “In any conflict with China, the outcome will hinge on our ability to project power across the Pacific via military sealift. The vast majority of the USN Strategic Sealift Officers are service-obligated graduates of the U.S. Merchant Marine Academy. We are deeply grateful to the sponsors of the SHIPS for America Act for recognizing that the USMMA campus at Kings Point, NY, built in the 1940s, urgently requires modernization to meet the demands of today’s national security threats,” said Captain James F. Tobin ’77, President/CEO, USMMA Alumni Association and Foundation.

    “The Masters, Mates & Pilots strongly supports the SHIPS for America Act. This comprehensive and pragmatic maritime policy initiative will create and support jobs for American mariners, ensuring that our country has the maritime manpower needed to protect and enhance our nation’s economic and military security,” said Captain Don Josberger, International President, International Organization of Masters, Mates & Pilots.

    “The International Propeller Club is a steadfast advocate for the SHIPS for America Act. Our nation’s maritime industry is at a critical crossroads. This comprehensive maritime policy initiative will protect and enhance foreign policy, national security, and economic prosperity through increased U.S.-flag shipping capability and a revitalization of the domestic shipbuilding industry,” said Maria Conatser, International President, International Propeller Club.

    “The Consortium of State Maritime Academies strongly supports the SHIPS for America Act, and is grateful for the bipartisan and bicameral leadership of Sen. Kelly, Sen. Young, Rep. Kelly, and Rep. Garamendi. The Consortium is united in our goal of working with our elected officials to support passage of this Act. Once enacted, the SHIPS Act will result in the United States Merchant Marine once again playing a leading role on the global stage, and the growth of the American maritime industry, a strategically important industry that provides thousands of well paid positions for the nation,” said the Consortium of State Maritime Academies.

    “With Honor Action applauds Senator Mark Kelly, a Navy veteran, and Senator Todd Young, a Marine Corps veteran, for proposing real solutions to revitalize our nation’s shipbuilding base and create more job opportunities for Americans. As advocates for bipartisan, principled veteran leadership in Congress, we are pleased to see veterans who have chosen to continue to serve in Congress working together to address the critical issues facing our nation,” said Ryan Barcott, Co-Founder and CEO, With Honor.

    “NDTA supports the strategic rebuilding of the United State’s fleet of ships who fly our flag. We must have a fleet of ocean-going vessels to protect the economic security of our nation. The SHIPS for America Act is truly a significant step in the right direction. Everyone in America needs to get educated about the importance of this bill. Rebuilding our U.S. fleet, our shipbuilding capacity, and workforce is a national imperative,” said William A. Brown, Vice Admiral, USN (Retired), President and CEO, NDTA The Association for Global Logistics and Transportation.

    “U.S. economic and national security is inexorably tied to our nation’s shipbuilding capacity. Yet, for too long, China has dominated this critical sector, costing the U.S. tens of thousands of jobs across the shipbuilding supply chain and leaving us less secure as we rely on foreign-made vessels to meet our needs. Our union commends Sens. Kelly and Young and Reps. Garamendi and Kelly as they introduce the SHIPS for America Act. USW members stand ready to contribute their skills in manufacturing the plate steel, coatings, cable, glass, rubber, engines and countless other products we’ll need to revitalize American shipbuilding,” said Dave McCall, President, USW International.

    “In the United States, we have a small number of shipyards focused on building Navy and Coast Guard ships, and a far smaller amount focused on building ocean-going vessels for commercial use. At the shipbuilding supplier level, we have many components that are provided by a manufacturer who may be one of the few, if not the sole, remaining means of production. As noted in the SHIPS Act, we must work with our industrial partners in NATO and Allied nations, but also invest in our American workforce and capabilities. The elements of Buy America legislation incorporated in this Bill are important to reaching this goal,” said Roger Camp, President and CEO, American Shipbuilding Suppliers Association.

    “The reintroduction of the SHIPS for America Act marks as a vital step forward in strengthening our maritime supply chain and revitalizing the U.S. commercial shipbuilding industry. This legislation will help ensure that American goods move on American-built ships, operated by American mariners, supporting our economic security and national resilience. We appreciate the inclusion of legislation that would authorize terminal operators to establish tax free accounts for the purchase of cargo handling equipment knowing this will help our industry provide state-of-the-art services. Ports and terminal operators across the country are ready to meet the future with modern infrastructure and a highly skilled workforce – but we need a commercial fleet that can match that capability. The SHIPS for America Act helps close that gap and brings long-overdue investment to a sector critical to our competitiveness. NAWE applauds Senators Kelly and Young for their bipartisan leadership and looks forward to working alongside Congress to advance this important legislation,” said Carl Bentzel, President, National Association of Waterfront Employers (NAWE).

    “Hanwha Philly Shipyard recognizes and commends U.S. Senators Mark Kelly and Todd Young, and Congressmen Trent Kelly and John Garamendi for their maritime policy leadership in reintroducing the bipartisan SHIPS for America Act. This bill offers tangible incentives to the domestic maritime industry with the goal of expanding the U.S. flag ocean-going fleet. It supports a major recapitalization of the shipbuilding infrastructure in the U.S., provides substantial incentives for the purchase of U.S.-built commercial vessels, and supports the national security and naval shipbuilding goals of the U.S. We see tremendous value in this legislation and believe it would have a long-term positive impact on Hanwha Philly Shipyard, other shipbuilders in the U.S. and Hanwha’s investments in America’s shipping industry and maritime industrial base,” said David Kim, CEO, Hanwha Philly Shipyard.

    “For too long, the United States has allowed its maritime strength to decline. In an era of rising great-power competition, revitalizing our maritime capabilities and sending strong signals to the private sector is more essential than ever. The American Legion, on behalf of our 1.6 million dues-paying members, is proud to support this legislation,” said James A. LaCoursiere, Jr., National Commander, The American Legion.

    MIL OSI USA News –

  • MIL-OSI: Republic Digital Acquisition Company Announces the Pricing of Upsized $264,000,000 Initial Public Offering

    Source: GlobeNewswire (MIL-OSI)

    New York, NY, April 30, 2025 (GLOBE NEWSWIRE) — Republic Digital Acquisition Company (the “Company”) announced today the pricing of its upsized initial public offering of 26,400,000 units at a price of $10.00 per unit. The units are expected to be listed on The Nasdaq Global Stock Market LLC (“Nasdaq”) and begin trading on May 1, 2025, under the ticker symbol “RDAGU.” Each unit consists of one Class A ordinary share and one-half of one redeemable warrant, each whole warrant entitling the holder thereof to purchase one Class A ordinary share at a price of $11.50 per share, subject to certain adjustments. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. An amount equal to $10.00 per unit will be deposited into a trust account upon the closing of the offering. Once the securities constituting the units begin separate trading, the Class A ordinary shares and warrants are expected to be listed on Nasdaq under the symbols “RDAG” and “RDAGW,” respectively. The offering is expected to close on May 2, 2025, subject to customary closing conditions. The Company has granted the underwriters a 45-day option to purchase up to an additional 3,960,000 units at the initial public offering price to cover over-allotments, if any.

    The Company is a blank check company formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company may pursue an acquisition opportunity in any business or industry but expects to focus on a target in fintech, software and cryptocurrency industries.

    The Company’s management team is led by Joseph Naggar, the Chief Executive Officer, Chief Investment Officer and Director, and Ian Goodman, its Chief Financial Officer. The Board of Directors also includes Andrew Durgee, Barry Finkelstein, Laya Khadjavi and Robert Matza.

    Cantor Fitzgerald & Co. is acting as sole book-running manager for the offering.

    The offering is being made only by means of a prospectus. When available, copies of the prospectus may be obtained from Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, New York, New York 10022, or by email at prospectus@cantor.com, or by accessing the SEC’s website, www.sec.gov.

    A registration statement relating to the securities has been filed with the U.S. Securities and Exchange Commission (“SEC”) and became effective on April 30, 2025. 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 an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    Forward-Looking Statements

    This press release contains statements that constitute “forward-looking statements,” including with respect to the expected closing of the proposed initial public offering and search for an initial business combination. No assurance can be given that the offering discussed above will be completed on the terms described, or at all.

    Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the “Risk Factors” section of the Company’s registration statement and prospectus for the Company’s initial public offering filed with the SEC. Copies of these documents are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

    Investor Contacts

    Republic Digital Acquisition Company
    RDAC-PR@republic.co

    The MIL Network –

  • MIL-OSI Economics: Saudi Arabia card payments to surpass $160 billion in 2025 amid digital shift and policy push, forecasts GlobalData

    Source: GlobalData

    Saudi Arabia card payments to surpass $160 billion in 2025 amid digital shift and policy push, forecasts GlobalData

    Posted in Banking

    Saudi Arabia’s card payments market is projected to reach SAR615.5 billion ($164.1 billion) in 2025, driven by a growing shift toward digital transactions and declining cash usage. Strong government support, improved payment infrastructure, and increasing consumer preference for contactless and electronic payments are accelerating this transition, reinforcing the Kingdom’s broader goals of financial inclusion and reduced reliance on cash, according to GlobalData, a leading data and analytics company.

    GlobalData’s report, “Saudi Arabia Cards and Payments: Opportunities and Risks to 2028,” reveals that the card payment value in the Saudi Arabia registered a growth of 10.1% in 2024 to reach SAR571.2 billion ($152.3 billion), driven by the rise in consumer spending.

    However, the current global uncertainty because of latest US tariffs can pose a challenge for the Saudi Arabia’s overall economic growth, resulting in slowdown in the overall card payments value, which is expected to grow by 7.8% in 2025.

    Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, comments: “While cash has traditionally been the preferred method of payment in Saudi Arabia, it’s usage is on decline in line with the rising consumer preference for electronic payments. The country has a robust digital payment infrastructure, supported by a developing card market and well-established card acceptance infrastructure. The government is taking steps to enhance the infrastructure by encouraging merchants to adopt at least one electronic payment option apart from cash.”

    Cash remains an integral part of the Saudi consumer payments landscape, particularly for lower-value transactions. However, there has been a consistent increase in electronic payment methods. The government aims to reduce the country’s dependence on cash, drive financial inclusion, promote electronic payments, and encourage payment innovation. The Kingdom’s Vision 2030 plan aims to reduce cash transactions and increase the share of electronic payments.

    As of April 2025, seven banks in Saudi—Al Rajhi Bank, Riyad Bank, Arab National Bank, Banque Saudi Fransi, the Saudi Investment Bank (SAIB), Bank AlJazira, and Bank AlBilad—had obtained SAMA’s license to provide agent banking services.

    The COVID-19 pandemic changed the way Saudi consumers make payments, with an increasing number of consumers preferring contactless payments supported by an improved payment infrastructure.

    According to the country’s central bank, number of contactless card payments using mada cards increased from 3.1 billion in 2021 to 4.6 billion in 2024. In terms of value, SAR311.3 billion ($83.01 billion) worth of contactless card transactions were made in 2024 – up from SAR301.6 billion ($80.43 billion) in 2021.

    Debit cards dominate the overall card payment space, accounting for 79.9% of the overall card payment value in 2024. The government’s financial inclusion initiatives, consumers’ preference for debt-free payments, and prudent consumer spending have resulted in their dominance. Credit and charge cards, on the other hand, are not very popular primarily due to a religious aversion towards debt.

    Sharma concludes: “The Saudi Arabia payment card market is expected to continue grow supported by government initiatives, rising consumer preference for digital payments, and improving banking and payment infrastructure. The card payments value is expected to register a compound annual growth rate (CAGR) of 6.5% between 2025 to 2029 to reach SAR790.5 billion ($210.8 billion) in 2029.”

    MIL OSI Economics –

  • MIL-OSI USA: Rep. Huffman Re-Introduces Bill to Protect Health Care Consumers from Predatory Practices

    Source: United States House of Representatives – Congressman Jared Huffman Representing the 2nd District of California

    April 30, 2025

    Washington, D.C. – Today, U.S. Representative Jared Huffman (CA-02) re-introduced legislation to protect consumers from Health Care Sharing Ministries’ deceptive practices and expand access to accurate information about health coverage options. The Health Care Sharing Transparency Act would help ensure consumers receive clear and truthful information before enrolling in a health share plan. By holding Health Care Sharing Ministries – also known as Health Share plans – accountable for inaccurate or untimely disclosures and by ensuring providers offer clear information regarding care, this bill helps address some of the dangerous health care practices plaguing consumers across the country.

    “Health Care Sharing Ministries prey on people in search of medical coverage, leading them to purchase inadequate medical coverage when they may need it most,” said Rep. Huffman. “Through deceptive marketing tactics and overt appeals to religion, certain providers lure consumers into purchasing plans that can leave patients without the care they need or lead them into deep medical debt. We need to combat these unethical tactics with serious federal action. My legislation would help protect consumers from Health Share plans’ predatory practices and ensure consumers have access to clear, accurate information about their health care options when making important decisions about coverage for themselves and their loved ones. As more and more Americans fall victim to misleading and unregulated Health Care Sharing Ministries, it’s more important than ever that we respond with proper reform.”

    Health Share Caring Ministries are a limited form of health coverage that require members – who must share a common set of religious or ethical beliefs – to submit monthly payments to cover the qualified expenses of other members. Health Share plans do not have to comply with the consumer protections of the Affordable Care Act, provide limited benefits for their members, and do not guarantee payment for medical claims. Recent data shows Health Share plans deem only half of members’ health expenses eligible for reimbursement. They also exclude coverage altogether for services such as abortions, contraception, mental health, substance use disorders, chronic conditions, certain preexisting conditions, and even maternity care. 

    With more for-profit administrators taking advantage of loopholes to market Health Share plans to broader audiences through deceptive practices, roughly 1.7 million Americans have now enrolled in one of these plans and are at serious risk of being denied necessary treatments and services.

    The Health Share Transparency Act would:

    • Empower consumers with the knowledge to distinguish between comprehensive, regulated health insurance products and Health Shares by requiring Health Shares to disclose clear information during the enrollment process. 
    • Provide new data for regulators to assess the threat Health Shares pose to public health – including rates of service denials, enrollment, service area, average out of pocket expenses for Health Share Members, and the contents of complaints received by the Federal Trade Commission (FTC). 
    • Ensure health insurance brokers selling Health Shares inform consumers if they are eligible for better, more comprehensive forms of health coverage – including the ACA, Medicaid, or Medicare – and accurately describe the scope of benefits provided by Health Shares.

    “We know that quality health insurance is essential for cancer patients. But too often, people – including cancer patients – enroll in a health sharing ministry, thinking they are covered, only to find out later that they can’t access the care they need. We applaud Rep. Huffman for introducing this important legislation which will help us learn more about health coverage that frequently leaves patients exposed to both physical and financial harm,” said Dr. Gwen Nichols, Executive Vice President & Chief Medical Officer at The Leukemia & Lymphoma Society.

    “FFRF Action Fund strongly supports the Health Share Transparency Act, and we thank Rep. Jared Huffman for reintroducing this vital legislation and making this bill a priority for the Congressional Freethought Caucus. Access to health care should never be conditioned on someone’s religious belief — yet healthcare sharing ministries routinely exploit religious exemptions to avoid accountability while misleading consumers. This bill is a crucial step toward protecting the public and upholding the separation of state and church,” said Annie Laurie Gaylor, President of FFRF Action Fund.

    “Everyone deserves health care coverage that is comprehensive and transparent about its policies, and unfortunately health care sharing ministries can’t offer either,” said Fish Stark, Executive Director of the American Humanist Association. “Too often, health care sharing ministries’ deceptive practices leave American families in unanticipated medical debt with nowhere to turn for relief–all in the name of religion. This issue demands federal attention. We are proud to throw our full support behind the Health Share Transparency Act, and we applaud Congressman Huffman for his leadership in shepherding forward this critical legislation.”

    The bill is endorsed by AiArthritis, AIDS Institute, American Cancer Society Cancer Action Network, American Lung Association, American Humanist Association, Arthritis Foundation, Asthma and Allergy Foundation of America, CancerCare, Crohn’s & Colitis Foundation, Center for Freethought Equality, Epilepsy Foundation of America, FFRF Action Fund, Hemophilia Federation of America, Immune Deficiency Foundation, Leukemia & Lymphoma Society, National Alliance on Mental Illness (NAMI), National Coalition of Cancer Survivorship, National Health Council, National Patient Advocate Foundation, National Psoriasis Foundation, Secular Coalition for America, and Susan G. Komen Breast Cancer Foundation.

    Cosponsors include Representatives Jamie Raskin, Sean Casten, Eleanor Holmes Norton, Rashida Tlaib, Mark Pocan, Seth Moulton, Steve Cohen, Jan Schakowsky, and Maxwell Frost.

    Full bill text can be found here.

    A summary of the bill is available here.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Luján Applauds Committee Passage of Bipartisan Bill to Combat Online Scams, Protect Consumers in the Online Ticket Marketplace

    US Senate News:

    Source: United States Senator Ben Ray Luján (D-New Mexico)

    Washington, D.C. – Today, U.S. Senator Ben Ray Luján (D-N.M.), a member of the U.S. Senate Committee on Commerce, Science, and Transportation, applauded committee passage of his bipartisan bill that would better protect consumers in the online ticket marketplace. Senator Luján’s bipartisan Mitigating Automated Internet Networks for (MAIN) Event Ticketing Act, which he introduced with U.S. Senator Marsha Blackburn (R-Tenn.), passed in a markup in the Senate Committee on Commerce, Science, and Transportation.

    “Today, we are one step closer to ensure Americans can enjoy live entertainment without the fear of being scammed,” said Senator Luján. “Far too many Americans face excessive price-gouging for tickets from online bots and resellers. That’s why I partnered with Senator Blackburn to advance our MAIN Event Ticketing Act which will strengthen protections for consumers and artists from scammers. Now, I urge the full Senate to take up our legislation and pass this bipartisan bill to better protect consumers.”

    “As a cultural institution dedicated to making the performing arts accessible to all, the Santa Fe Opera applauds this bipartisan effort to better combat and enforce unfair ticketing practices and protect consumers and artists from exploitation,” said Santa Fe Opera General Director Robert K. Meya. “The MAIN Event Ticketing Act addresses critical challenges, ensuring that access to live performances remains fair and equitable to all audiences. We are grateful for Senator Luján and Senator Blackburn’s leadership on this important issue and fully support their efforts to enhance transparency and fairness in the online ticket marketplace.”

    “We are fully behind this legislation,” said Lensic 360 Director Jamie Lenfestey. “Enforcement of the existing law is a great approach. In high sales season we can see as many as 96,000 bot hits on our sales website daily. Any efforts in enhancing consumer protection and helping promoters and presenters best engage their audiences directly much needed step in the right direction.”

    “As a small venue owner, the health of my business relies heavily on food, beverage, and merchandise sales to complement ticket revenue. When bots and scalpers purchase tickets en masse, it not only drives up prices but also prevents true fans from attending events. This results in empty seats at my venue, leading to a significant loss—up to 75% of my projected revenue from concessions and merchandise sales,” said Jayson Wylie, President and CEO of Taos Mesa Brewing and Musich Entertainment.

    Specifically, the MAIN Event Ticketing Act would:

    • Create reporting requirements whereby online ticket sellers have to report successful bot attacks to the Federal Trade Commission (FTC);
    • Create a complaint database so consumers can also share their experiences with the FTC, which in turn is required to share the information with state attorneys general;
    • Enact data security requirements for online ticket sellers and requires the sharing of information between the FTC and law enforcement; and
    • Require a report to Congress on BOTS enforcement.  

    This legislation is endorsed by the Recording Academy, Recording Industry Association of America, Live Nation Entertainment, and the National Independent Venue Association.

    MIL OSI USA News –

  • MIL-OSI Australia: Screen Australia empowers 100+ distinctive Australian narratives

    Source: AMP Limited

    01 05 2025 – Media release

    All The Boys Are Here writer/director Goran Stolevski and It’s All Going Very Well No Problems At All writer/director/producer/star Tilda Cobham-Hervey (Tilda photo credit Matt Loxton).  
    Screen Australia has today announced a significant investment for local scripted projects, reflecting the agency’s commitment to rich Australian narrative content and meaningful creator pathways.
    Across feature film, television and online, $7.6 million has been shared across more than 100 projects, contributing a substantial amount to the overall direct production and development funding provided in the 24/25 financial year so far. The mix of projects showcases a wide range of themes and formats, speaking to the evolving scripted landscape and highlighting the importance of reaching Australian audiences where they are watching.
    Among the projects is the debut feature film from writer/director/producer/star Tilda Cobham-Hervey set in an aged care home, It’s All Going Very Well No Problems At All; animated children’s series Jidoo & Ibis, about the relationship between a grumpy Grandpa and Australia’s beloved bin chicken; comedy series for TikTok CEEBS about two friends on a mission to save their local youth centre from imminent closure; and a series inspired by a true story, DIVA, about 21-year-old Elly who balances his strict, religious Samoan life with ambitions of becoming a professional wrestler in drag.
    Screen Australia Director of Narrative Content Louise Gough said, “Screen Australia is uniquely positioned to support a thriving pipeline of Australian stories that connect with audiences across multiple platforms and genres. This funding reflects our commitment to both emerging and established creatives, reinforcing the strength and diversity of our industry.”
    “Demand on Screen Australia funding remains high, and our recent survey was a reminder of the value that the sector places on our direct funding. In an ever-changing landscape, one thing remains constant – Australian screen storytelling is a vital cultural force that continues to resonate with audiences here at home and across the world. We’re proud to back this extensive collection of distinct and ambitious projects,” said Gough.
    Screen Australia has also supported 11 major television series for production to be announced in coming months, sharing in $12 million of direct funding and with a total production value of over $117 million. The agency has recently supported Stan Original Series’ He Had it Coming and comedy-horror Gnomes. Also recently announced is Bus Stop Films’ first feature film Boss Cat, beginning production in June and starring Olivia Hargroder, Penny Downie and Julia Savage.
    The supported projects include:

    It’s All Going Very Well No Problems At All: This drama is the debut feature film from writer/director Tilda Cobham-Hervey (A Field Guide to Being a 12 Year Old Girl, I am Woman) and is produced by Liam Heyen (Jimpa, Latecomers), Dev Patel (Lion, Monkey Man), Jomon Thomas (Hotel Mumbai, Monkey Man) and Cobham-Hervey, with Natalya Pavchinskaya and Cyna Strachan executive producing. The film follows Audrey (Cobham-Hervey), a young artist teetering on the edge of a quiet collapse, who finds solace and understanding through a profound connection with Harold, an elderly resident at the care home where she works. Major production investment from Screen Australia and S’ya Concept in association with the South Australian Film Corporation, with support from the Adelaide Film Festival Investment Fund. Local distribution by Kismet. The film is a Mad Ones and Minor Realm production.
    Jidoo & Ibis: Inspired by the real-life shenanigans between the creator’s father and the hungry bin chickens who flock to his garden, Jidoo & Ibis is from writer/producer Wendy Hanna (Beep & Mort) with writers Michael Drake (Beep & Mort) and Clare Madsen (Little J & Big Cuz). It is a 40-part animated series in development for young pre-schoolers about unexpected problems and unexpected friendships – told through the relationship between grumpy Grandpa Jidoo and an all too familiar larrikin, Ibis.
    CEEBS: This 18-part comedy for TikTok is from director Harry Lloyd (Rock Island Mysteries) and writers Betiel Beyin and Leigh Lule, some of the team behind Turn up the Volume. Nikki Tran (Girl, Interpreted) and Amie Batalibasi (Blackbird) are producing. CEEBS follows recent high-school graduates, Zion and Ruby, as they run for ‘Youth President’ to save their local youth centre from imminent closure – all while trying to ensure their lifelong friendship doesn’t get caught in the crossfire. It has received principal production funding from Screen Australia in association with VicScreen.
    DIVA: Inspired by a true story, DIVA is created by producer Jessica Magro (Bad Ancestors) and executive producer Jason Dewhurst, working alongside producer Lauren Brown (Thou Shalt Not Steal) and writer Nick Coyle (Bump, It’s Fine, I’m Fine). It is also executive produced by Charlie Aspinwall and Daley Pearson. This eight-part series in development from Ludo Studio and Purple Carrot Entertainment follows 21-year-old Elly as he attempts to balance his strict, religious Samoan life and his secret queer identity as a professional wrestler in drag.
    Dreamboat: A feature comedy in development celebrating the enduring power of BFFs, second chances, and embracing life’s next chapter, from writer Joan Sauers (Ladies in Black, Wakefield), producers Courtney Botfield and Kate Riedl, script editor Megan Simpson Huberman and script consultant Zoë Coombs Marr. In Dreamboat, Suzy’s plans for a cruisy retirement are capsized when best friend, Val, takes her on a cruise to Antarctica.
    All The Boys Are Here: From Causeway Films (Talk to Me), this queer romance feature film is created by writer/director Goran Stolevski (Of An Age, You Won’t Be Alone) and produced by Kristina Ceyton and Samantha Jennings of Talk to Me. It is about a New York novelist who, while attending a family funeral in Vienna, discovers a German relative’s illicit queer love affair with a Jewish man during WW2 – sending him on a journey through the past that changes his future. It has received major production investment from Screen Australia in association with the Polish Film Institute, with Maslow Entertainment distributing and New Europe Film Sales and Charades managing international sales.
    A Model Family: A 10-part comedy in development for the whole family from some of the team behind The Disposables, including creator/writers Keir Wilkins and Sonia Whiteman, creator/writer/producer Renny Wijeyamohan, creator/producer/executive producer Karen Radzyner, producer Linda Micsko (The Office Australia) and executive producer Oliver Lawrance, with Guy Edmonds (Spooky Files) and Emmanuelle Mattana (Fwends) attached as writers. In A Model Family, five ultra-lifelike AIs have escaped from a secret research facility in the Australian countryside and must pass for a human ‘nuclear’ family to survive.
    Fear is the Rider: This horror-thriller is from the team behind The Forgiven, including writer/director/producer John Michael McDonagh, producers Elizabeth Eves, Kate Glover, Nick Gordon and Trevor Matthews, and executive producer Natalie Coleman. In Fear is the Rider, a lone woman searching for her missing mother is pursued into the Australian Outback by a terrifying family of cannibalistic serial killers, with only an ex-con and a young girl willing to help her. Major production investment from Screen Australia and financed with support from Screen NSW’s Made in NSW Fund. Local distribution by Umbrella Entertainment, with international sales by Film Constellation and CAA.
    After All: From writer/director/producer Jess Murray (Moments of Clarity) and writers Tom Ward and Declan O’Byrne-Inglis, After All is a six-part comedic adult YouTube animation set against a post-apocalyptic wasteland. After living in a bunker for most of their lives, mutant filmmakers Flynn and Marshall venture out to make “the best movie ever made”, but quickly realise that stardom is not as important as friendship. It has received principal production funding from Screen Australia and financed with assistance from Screen Tasmania.
    Bluebottle: A thriller-comedy feature film from director Jim Weir and writer/director Jack Clark of Birdeater, producers Gal Greenspan (Moja Vesna), Rachel Forbes (Strange Creatures) and Ryan Bartecki (The Novice), and executive producers Joel Edgerton (Boy Swallows Universe), Ari Harrison (Lesbian Space Princess, The Moogai) and Jane Badler. During the final night of ‘Schoolies’ in an isolated coastal town, three local dropouts battle three handsome older men for the affection of three private school girls – tackling social issues of class, consent and identity. Major production investment from Screen Australia, with Co Created Media co-financing and Umbrella Entertainment distributing locally.

    CEEBS
    For the list of announced projects funded across the Narrative Content Department this financial year, visit:

    For more information about Screen Australia funding and to apply, click here.
    Download PDF
    Media enquiries
    Maddie Walsh | Publicist
    + 61 2 8113 5915  | [email protected]
    Jessica Parry | Senior Publicist (Mon, Tue, Thu)
    + 61 428 767 836  | [email protected]
    All other general/non-media enquiries
    Sydney + 61 2 8113 5800  |  Melbourne + 61 3 8682 1900 | [email protected]

    MIL OSI News –

  • MIL-OSI USA: US Department of Labor celebrates National Apprenticeship Day 2025, highlighting limitless potential of apprenticeships for American workers

    Source: US Department of Labor

    WASHINGTON – U.S. Department of Labor Secretary Lori Chavez-DeRemer celebrated National Apprenticeship Day today by welcoming the International Association of Fire Fighters for a ceremonial signing event highlighting the importance of apprenticeships and ways the program can unlock a multitude of possibilities for the American worker.

    The National Apprenticeship Day 2025 event recognized IAFF’s new National Apprenticeship Guideline Standards and honored the union’s commitment to training their firefighters and emergency personnel through the Registered Apprenticeship model. 

    Since its inception in 2015, National Apprenticeship Week has been an annual nationwide celebration for employers, educators, state agencies, unions, and many others to showcase how Registered Apprenticeships improve and expand career pathways for American workers, while helping employers drive economic growth across all industries. In those 10 years, more than 1.9 million people participated in more than 10,000 National Apprenticeship Week events, and over 1,800 proclamations have been issued in support of Registered Apprenticeships. Typically celebrated in the fall, National Apprenticeship Week will move to the spring beginning in 2026 following stakeholder feedback. 

    The Trump Administration has committed to enhancing and expanding the National Apprenticeship system, with two recent executive orders, “Preparing Americans for High-Paying Skilled Trade Jobs of the Future” and “Advancing Artificial Intelligence Education for American Youth.” These decisive actions will unlock the limitless potential of the American worker by strengthening Registered Apprenticeships, modernizing workforce development programs, educating America’s youth to keep up with technology advancements, and investing in upskilling workers to meet current labor market demands.

    National Apprenticeship Day 2025 will include nearly 1,000 events and proclamations in all 50 states and territories across the country. These events highlight innovation and cooperation between employers, apprentices and apprentice graduates, educational institutions, community-based organizations, federal partners, industry associations, intermediaries, labor unions, state agencies, elected officials, and many others. 

    “As we celebrate National Apprenticeship Day, this administration remains committed to expanding and strengthening registered apprenticeships, guaranteeing the skilled workforce necessary for businesses to thrive,” said U.S. Secretary of Labor Lori Chavez-DeRemer. “I will personally ensure the Labor Department is helping to fulfill our bold goal of exceeding one million active apprentices and empower American workers to fill high-demand jobs that will secure economic prosperity. I was honored to host firefighters with the International Association of Fire Fighters today as we celebrated progressing toward that goal with new apprenticeship standards for first responders.”  

    Find a National Apprenticeship Day event near you and learn how to participate. 

    MIL OSI USA News –

  • MIL-OSI USA: TOMORROW: First Partner Siebel Newsom to celebrate Move Your Body, Calm Your Mind Day with Boys & Girls Club in Bay Area

    Source: US State of California Governor

    Apr 30, 2025

    SAN MATEO COUNTY — California First Partner Jennifer Siebel Newsom will team up with Olympic and World Cup Champion Brandi Chastain and nearly 250 kids at a local Boys & Girls Club to celebrate Move Your Body, Calm Your Mind Day, a statewide day of action embracing the importance of movement, mindfulness, and play. The interactive celebration will feature opportunities for kids to move their bodies as they choose from pickleball, soccer, and Zumba. The event will also feature calming activities like mindfulness crafts and yoga.

    WHEN: Thursday, May 1 at 3:50 p.m.

    **NOTE: This in-person event will not be streamed and will be open to credentialed media only. Media interested in attending must RSVP by clicking here no later than 1 p.m., May 1. Location information will be provided upon confirmation.

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    Apr 30, 2025

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

    Apr 30, 2025

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

    Apr 30, 2025

    News What you need to know: Governor Gavin Newsom and the Department of Housing and Community Development today announced the awards of $118.9 million in federal funding for 29 California rural and tribal communities to create more affordable housing and supportive…

    MIL OSI USA News –

  • MIL-OSI: Landmark Bancorp, Inc. Announces Growth in First Quarter 2025 Net Earnings of 43.2%. Declares Cash Dividend of $0.21 per Share

    Source: GlobeNewswire (MIL-OSI)

    Manhattan, KS, April 30, 2025 (GLOBE NEWSWIRE) — Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.81 for the three months ended March 31, 2025, compared to $0.57 per share in the fourth quarter of 2024 and $0.48 per share in the same quarter last year. Net income for the first quarter totaled $4.7 million, compared to $3.3 million in the prior quarter and $2.8 million in the first quarter of 2024. For the three months ended March 31, 2025, the return on average assets was 1.21%, the return on average equity was 13.71% and the efficiency ratio(1) was 64.1%.

    First Quarter 2025 Performance Highlights

    • Loan growth totaled $22.6 million or an annualized increase of 8.7% over the prior quarter.
    • Net interest margin improved 25 basis points to 3.76% compared to 3.51% in prior quarter.
    • Deposits increased $42.3 million, or 3.3%, from the same quarter last year and $7.1 million, or 2.2%, from prior quarter.
    • Other borrowed funds decreased $11.8 million compared to the prior quarter.
    • Non-interest expenses declined $1.1 million compared to the prior quarter.
    • Credit quality remained stable with net charge-offs totaling $23,000 in the first quarter.
    • Ratio of equity to assets increased to 9.04% this quarter.

    In making this announcement, Abby Wendel, President and Chief Executive Officer of Landmark, commented, “I am pleased to report strong growth in net income this quarter driven by growth in net interest income, lower expenses and excellent credit quality. We continued to experience solid loan demand in the first quarter 2025, especially for commercial real estate and residential mortgage loans. In the first quarter 2025, total gross loans increased by $22.6 million or 8.7% (annualized) with growth in most loan categories. Total deposits also increased in the first quarter by $7.1 million, exceeding the typical seasonal decline in money market and interest checking accounts. Over the last two quarters, deposits have increased over $60 million. Other borrowed funds declined by $11.8 million, which reduced interest expense and improved our net interest margin. Growth in our balance sheet, plus the shift in our funding position led to net interest income growth of 22.1% over the previous year and net interest margin expansion of 25 basis points to 3.76%. Non-interest expense also declined this quarter by $1.1 million compared to the prior quarter. Credit quality remained solid overall with minimal net charge-offs, and no provision for credit losses was taken this quarter. These strong results are a tribute to the associates who work hard every day to make Landmark the bank of choice for our customers and stockholders.”

    Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid June 4, 2025, to common stockholders of record as of the close of business on May 21, 2025.

    Management will host a conference call to discuss the Company’s financial results at 9:30 a.m. (Central time) on Thursday, May 1, 2025. Investors may participate via telephone by dialing (833) 470-1428 and using access code 866149. A replay of the call will be available through May 8, 2025, by dialing (866) 813-9403 and using access code 282640.

    Net Interest Income

    Net interest income in the first quarter of 2025 amounted to $13.1 million representing an increase of $720,000, or 5.8%, compared to the previous quarter. The increase in net interest income resulted from a combination of both higher interest income on loans and lower interest expense on deposits and other borrowed funds (FHLB, repurchase agreements and other debt). Net interest margin increased to 3.76% during the first quarter from 3.51% during the prior quarter. Compared to the previous quarter, interest income on loans increased $440,000 to $16.4 million due to higher average balances combined with higher yields on loans. Average loan balances increased $38.4 million, while the average tax-equivalent yield on the loan portfolio increased 6 basis points to 6.34%. Interest on investment securities declined slightly due to lower balances, partially offset by higher earning rates. Compared to the fourth quarter of 2024, interest on deposits decreased $114,000, or 2.1%, due to lower rates as average interest-bearing deposit balances increased by $34.8 million. Interest on other borrowed funds declined by $216,000, due to lower rates and average balances. The average rate on interest-bearing deposits decreased 8 basis points to 2.17% while the average rate on other borrowed funds decreased 15 basis points to 5.09% in the first quarter.

    Non-Interest Income

    Non-interest income totaled $3.4 million for the first quarter of 2025, a decrease of $13,000 from the previous quarter. The decrease in non-interest income during the first quarter of 2025 was primarily due to a $704,000 decline in bank owned life insurance income relating to one-time benefits recorded in the fourth quarter, coupled with a $322,000 decline in fees and service charges relating to lower deposit related fee income, partially due to fewer days in the quarter. Partially offsetting those declines was a $1.0 million loss on the sales of lower yielding investment securities in the fourth quarter of 2024, compared to a loss of only $2,000 in the first quarter of 2025.

    (1) Non-GAAP financial measure. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation.

    Non-Interest Expense

    During the first quarter of 2025, non-interest expense totaled $10.8 million, a decrease of $1.1 million compared to the prior quarter. The decrease in non-interest expense was primarily due to decreases of $350,000 in other non-interest expense, $298,000 in occupancy and equipment and $298,000 in professional fees. The decreases in other non-interest expenses and occupancy and equipment were primarily related to branch closures in 2024 and associated cost savings in 2025. The decrease in professional fees this quarter was primarily due to higher consulting costs in the prior quarter related to several initiatives.

    Income Tax Expense (Benefit)

    Landmark recorded income tax expense of $1.0 million in the first quarter of 2025 compared to an income tax benefit of $886,000 in the fourth quarter of 2024. The effective tax rate was 17.8% in the first quarter of 2025. The fourth quarter of 2024 included the recognition of $1.0 million of previously unrecognized tax benefits, which significantly reduced the effective tax rate.

    Balance Sheet Highlights

    As of March 31, 2025, gross loans totaled $1.1 billion, an increase of $22.6 million, or 8.7% annualized since December 31, 2024. During the quarter, loan growth was primarily comprised of commercial real estate (growth of $14.4 million), one-to-four family residential real estate (growth of $3.4 million) and construction and land loans (growth of $3.3 million). Investment securities decreased $16.5 million during the first quarter of 2025 mainly due to maturities. Pre-tax unrealized net losses on the investment securities portfolio decreased from $20.9 million at December 31, 2024, to $17.1 million at March 31, 2025, mainly due to lower market rates for these securities at March 31, 2025.

    Period end deposit balances increased $7.1 million to $1.3 billion at March 31, 2025. The increase in deposits was driven by increases in non-interest-bearing demand deposits (increase of $16.9 million), certificates of deposit (increase of $10.0 million) and savings (increase of $3.7 million), partially offset by a decline in money market and checking accounts (decrease of $23.5 million). The decrease in money market and checking accounts was mainly driven by a seasonal decline in public fund deposit account balances. Total borrowings decreased $11.8 million during the first quarter 2025. At March 31, 2025, the loan to deposits ratio was 79.5% compared to 78.2% in the prior quarter.

    Stockholders’ equity increased to $142.7 million (book value of $24.69 per share) as of March 31, 2025, from $136.2 million (book value of $23.59 per share) as of December 31, 2024. The increase in stockholders’ equity was due mainly to a decrease in accumulated other comprehensive losses (lower unrealized net losses on investment securities) along with net earnings from the quarter. The ratio of equity to total assets increased to 9.04% on March 31, 2025, from 8.65% on December 31, 2024.

    The allowance for credit losses totaled $12.8 million, or 1.19% of total gross loans on March 31, 2025, compared to $12.8 million, or 1.22% of total gross loans on December 31, 2024. Net loan charge-offs totaled $23,000 in the first quarter of 2025, compared to $219,000 during the fourth quarter of 2024. No provision for credit losses on loans was recorded in the first quarter of 2025 compared to a provision of $1.5 million recorded in the fourth quarter of 2024.

    Non-performing loans totaled $13.3 million, or 1.24% of gross loans, at March 31, 2025, compared to $13.1 million, or 1.25% of gross loans, at December 31, 2024. Loans 30-89 days delinquent totaled $10.0 million, or 0.93% of gross loans, as of March 31, 2025, compared to $6.2 million, or 0.59% of gross loans, as of December 31, 2024.

    About Landmark

    Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 29 locations in 23 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.

    Contact:
    Mark A. Herpich
    Chief Financial Officer
    (785) 565-2000
     

    Special Note Concerning Forward-Looking Statements

    This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies and financial markets, including the effects of inflationary pressures and future monetary policies of the Federal Reserve in response thereto; (ii) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business, including changes in interpretation or prioritization of such laws, regulations and policies; (iii) changes in interest rates and prepayment rates of our assets; (iv) increased competition in the financial services sector and the inability to attract new customers, including from non-bank competitors such as credit unions and “fintech” companies; (v) timely development and acceptance of new products and services; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) effects on the U.S. economy resulting from the threat or implementation of, or changes to, existing policies and executive orders, including tariffs, immigration policy, regulatory and other governmental agencies, foreign policy and tax regulations; (x) the economic effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (xi) the loss of key executives or employees; (xii) changes in consumer spending; (xiii) integration of acquired businesses; (xiv) the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us or to which the Company may become subject; (xv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvi) the economic impact of past and any future terrorist attacks, acts of war, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xviii) fluctuations in the value of securities held in our securities portfolio; (xix) concentrations within our loan portfolio, concentration large loans to certain borrowers, and large deposits from certain clients (including commercial real estate loans); (xx) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xxi) the level of non-performing assets on our balance sheets; (xxii) the ability to raise additional capital; (xxiii) the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; (xxvi) the Company’s success at managing and responding to the risks involved in the foregoing items; and (xxvii) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission.

    LANDMARK BANCORP, INC. AND SUBSIDIARIES  
    Consolidated Balance Sheets (unaudited)  
                                   
    (Dollars in thousands)   March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
    Assets                              
    Cash and cash equivalents   $ 21,881     $ 20,275     $ 21,211     $ 23,889     $ 16,468  
    Interest-bearing deposits at other banks     3,973       4,110       4,363       4,881       4,920  
    Investment securities available-for-sale, at fair value:                                        
    U.S. treasury securities     58,424       64,458       83,753       89,325       93,683  
    Municipal obligations, tax exempt     101,812       107,128       112,126       114,047       118,445  
    Municipal obligations, taxable     70,614       71,715       75,129       74,588       75,371  
    Agency mortgage-backed securities     125,142       129,211       140,004       142,499       149,777  
    Total investment securities available-for-sale     355,992       372,512       411,012       420,459       437,276  
    Investment securities held-to-maturity     3,701       3,672       3,643       3,613       3,584  
    Bank stocks, at cost     6,225       6,618       7,894       9,647       7,850  
    Loans:                                        
    One-to-four family residential real estate     355,632       352,209       344,380       332,090       312,833  
    Construction and land     28,645       25,328       23,454       30,480       24,823  
    Commercial real estate     359,579       345,159       324,016       318,850       323,397  
    Commercial     190,881       192,325       181,652       178,876       181,945  
    Agriculture     101,808       100,562       91,986       84,523       86,808  
    Municipal     7,082       7,091       7,098       6,556       5,690  
    Consumer     31,297       29,679       29,263       29,200       28,544  
    Total gross loans     1,074,924       1,052,353       1,001,849       980,575       964,040  
    Net deferred loan (fees) costs and loans in process     (426 )     (307 )     (63 )     (583 )     (578 )
    Allowance for credit losses     (12,802 )     (12,825 )     (11,544 )     (10,903 )     (10,851 )
    Loans, net     1,061,696       1,039,221       990,242       969,089       952,611  
    Loans held for sale, at fair value     2,997       3,420       3,250       2,513       2,697  
    Bank owned life insurance     39,329       39,056       39,176       38,826       38,578  
    Premises and equipment, net     19,886       20,220       20,976       20,986       20,696  
    Goodwill     32,377       32,377       32,377       32,377       32,377  
    Other intangible assets, net     2,426       2,578       2,729       2,900       3,071  
    Mortgage servicing rights     3,045       3,061       3,041       2,997       2,977  
    Real estate owned, net     167       167       428       428       428  
    Other assets     24,894       26,855       23,309       28,149       29,684  
    Total assets   $ 1,578,589     $ 1,574,142     $ 1,563,651     $ 1,560,754     $ 1,553,217  
                                             
    Liabilities and Stockholders’ Equity                                        
    Liabilities:                                        
    Deposits:                                        
    Non-interest-bearing demand     368,480       351,595       360,188       360,631       364,386  
    Money market and checking     613,459       636,963       565,629       546,385       583,315  
    Savings     149,223       145,514       145,825       150,996       154,000  
    Certificates of deposit     204,660       194,694       203,860       192,470       191,823  
    Total deposits     1,335,822       1,328,766       1,275,502       1,250,482       1,293,524  
    FHLB and other borrowings     48,767       53,046       92,050       131,330       74,716  
    Subordinated debentures     21,651       21,651       21,651       21,651       21,651  
    Repurchase agreements     6,256       13,808       9,528       8,745       15,895  
    Accrued interest and other liabilities     23,442       20,656       25,229       20,292       20,760  
    Total liabilities     1,435,938       1,437,927       1,423,960       1,432,500       1,426,546  
    Stockholders’ equity:                                        
    Common stock     58       58       55       55       55  
    Additional paid-in capital     95,148       95,051       89,532       89,469       89,364  
    Retained earnings     60,422       56,934       60,549       57,774       55,912  
    Treasury stock, at cost     –       –       (396 )     (330 )     (249 )
    Accumulated other comprehensive loss     (12,977 )     (15,828 )     (10,049 )     (18,714 )     (18,411 )
    Total stockholders’ equity     142,651       136,215       139,691       128,254       126,671  
    Total liabilities and stockholders’ equity   $ 1,578,589     $ 1,574,142     $ 1,563,651     $ 1,560,754     $ 1,553,217  
    LANDMARK BANCORP, INC. AND SUBSIDIARIES  
    Consolidated Statements of Earnings (unaudited)  
       
    (Dollars in thousands, except per share amounts)   Three months ended,  
        March 31,     December 31,     March 31,  
        2025     2024     2024  
    Interest income:                        
    Loans   $ 16,395     $ 15,955     $ 14,490  
    Investment securities:                        
    Taxable     2,180       2,210       2,428  
    Tax-exempt     719       738       764  
    Interest-bearing deposits at banks     48       49       63  
    Total interest income     19,342       18,952       17,745  
    Interest expense:                        
    Deposits     5,236       5,350       5,457  
    FHLB and other borrowings     565       737       1,022  
    Subordinated debentures     357       389       412  
    Repurchase agreements     65       77       107  
    Total interest expense     6,223       6,553       6,998  
    Net interest income     13,119       12,399       10,747  
    Provision for credit losses     –       1,500       300  
    Net interest income after provision for credit losses     13,119       10,899       10,447  
    Non-interest income:                        
    Fees and service charges     2,388       2,710       2,461  
    Gains on sales of loans, net     562       522       512  
    Bank owned life insurance     272       976       245  
    Losses on sales of investment securities, net     (2 )     (1,031 )     –  
    Other     138       194       182  
    Total non-interest income     3,358       3,371       3,400  
    Non-interest expense:                        
    Compensation and benefits     6,154       6,264       5,532  
    Occupancy and equipment     1,252       1,550       1,390  
    Data processing     396       452       481  
    Amortization of mortgage servicing rights and other intangibles     239       240       412  
    Professional fees     745       1,043       647  
    Valuation allowance on real estate held for sale     –       –       129  
    Other     1,975       2,325       1,960  
    Total non-interest expense     10,761       11,874       10,551  
    Earnings before income taxes     5,716       2,396       3,296  
    Income tax expense (benefit)     1,015       (886 )     518  
    Net earnings   $ 4,701     $ 3,282     $ 2,778  
                             
    Net earnings per share (1)                        
     Basic   $ 0.81     $ 0.57     $ 0.48  
     Diluted     0.81       0.57       0.48  
    Dividends per share (1)     0.21       0.20       0.20  
    Shares outstanding at end of period (1)     5,778,610       5,775,198       5,747,560  
    Weighted average common shares outstanding – basic (1)     5,777,593       5,775,227       5,743,452  
    Weighted average common shares outstanding – diluted (1)     5,814,650       5,789,764       5,748,595  
                             
    Tax equivalent net interest income   $ 13,291     $ 12,574     $ 10,925  
                             
    (1) Share and per share values at or for the periods ended March 31, 2024 and December 31, 2024 have been adjusted to give effect to the 5% stock dividend paid during December 2024.
    LANDMARK BANCORP, INC. AND SUBSIDIARIES
    Select Ratios and Other Data (unaudited)
                 
    (Dollars in thousands, except per share amounts)   As of or for the
    three months ended,
        March 31,   December 31,   March 31,
        2025   2024   2024
    Performance ratios:                        
    Return on average assets (1)     1.21 %     0.83 %     0.72 %
    Return on average equity (1)     13.71 %     9.54 %     8.88 %
    Net interest margin (1)(2)     3.76 %     3.51 %     3.12 %
    Effective tax rate     17.8 %     -37.0 %     15.7 %
    Efficiency ratio (3)     64.1 %     70.8 %     72.1 %
    Non-interest income to total income (3)     20.4 %     25.0 %     24.1 %
                             
    Average balances:                        
    Investment securities   $ 377,845     $ 409,648     $ 456,933  
    Loans     1,048,585       1,010,153       945,737  
    Assets     1,574,295       1,568,821       1,555,662  
    Interest-bearing deposits     979,787       944,969       935,417  
    FHLB and other borrowings     48,428       57,507       72,618  
    Subordinated debentures     21,651       21,651       21,651  
    Repurchase agreements     8,634       12,212       14,371  
    Stockholders’ equity   $ 139,068     $ 136,933     $ 125,846  
                             
    Average tax equivalent yield/cost (1):                        
    Investment securities     3.29 %     3.03 %     2.96 %
    Loans     6.34 %     6.28 %     6.16 %
    Total interest-bearing assets     5.53 %     5.34 %     5.11 %
    Interest-bearing deposits     2.17 %     2.25 %     2.35 %
    FHLB and other borrowings     4.73 %     5.10 %     5.66 %
    Subordinated debentures     6.69 %     7.15 %     7.65 %
    Repurchase agreements     3.05 %     2.51 %     2.99 %
    Total interest-bearing liabilities     2.38 %     2.52 %     2.70 %
                             
    Capital ratios:                        
    Equity to total assets     9.04 %     8.65 %     8.16 %
    Tangible equity to tangible assets (3)     6.99 %     6.58 %     6.01 %
    Book value per share   $ 24.69     $ 23.59     $ 22.04  
    Tangible book value per share (3)   $ 18.66     $ 17.53     $ 15.87  
                             
    Rollforward of allowance for credit losses (loans):                        
    Beginning balance   $ 12,825     $ 11,544     $ 10,608  
    Charge-offs     (108 )     (246 )     (141 )
    Recoveries     85       27       134  
    Provision for credit losses for loans     —       1,500       250  
    Ending balance   $ 12,802     $ 12,825     $ 10,851  
                             
    Allowance for unfunded loan commitments   $ 150     $ 150     $ 300  
                             
    Non-performing assets:                        
    Non-accrual loans   $ 13,280     $ 13,115     $ 3,621  
    Accruing loans over 90 days past due     —       —       —  
    Real estate owned     167       167       428  
     Total non-performing assets   $ 13,447     $ 13,282     $ 4,049  
                             
    Loans 30-89 days delinquent   $ 9,977     $ 6,201     $ 4,064  
                             
    Other ratios:                        
    Loans to deposits     79.48 %     78.21 %     73.64 %
    Loans 30-89 days delinquent and still accruing to gross loans outstanding     0.93 %     0.59 %     0.42 %
    Total non-performing loans to gross loans outstanding     1.24 %     1.25 %     0.38 %
    Total non-performing assets to total assets     0.85 %     0.84 %     0.26 %
    Allowance for credit losses to gross loans outstanding     1.19 %     1.22 %     1.13 %
    Allowance for credit losses to total non-performing loans     96.40 %     97.79 %     299.67 %
    Net loan charge-offs to average loans (1)     0.01 %     0.09 %     0.00 %
                             
    (1) Information is annualized.  
    (2) Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate.
    (3) Non-GAAP financial measures. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation to the most comparable GAAP equivalent.
    LANDMARK BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Finacials Measures (unaudited)
                 
    (Dollars in thousands, except per share amounts)   As of or for the
    three months ended,
        March 31,   December 31,   March 31,
        2025   2024   2024
                 
    Non-GAAP financial ratio reconciliation:                        
    Total non-interest expense   $ 10,761     $ 11,874     $ 10,551  
    Less: foreclosure and real estate owned expense     (50 )     (13 )     (50 )
    Less: amortization of other intangibles     (152 )     (151 )     (170 )
    Less: valuation allowance on real estate held for sale     —       —       (129 )
    Adjusted non-interest expense (A)     10,559       11,710       10,202  
                             
    Net interest income (B)     13,119       12,399       10,747  
                             
    Non-interest income     3,358       3,371       3,400  
    Less: losses on sales of investment securities, net     2       1,031       —  
    Less: gains on sales of premises and equipment and foreclosed assets     —       (273 )     9  
    Adjusted non-interest income (C)   $ 3,360     $ 4,129     $ 3,409  
                             
    Efficiency ratio (A/(B+C))     64.1 %     70.8 %     72.1 %
    Non-interest income to total income (C/(B+C))     20.4 %     25.0 %     24.1 %
                             
    Total stockholders’ equity   $ 142,651     $ 136,215     $ 126,671  
    Less: goodwill and other intangible assets     (34,803 )     (34,955 )     (35,448 )
    Tangible equity (D)   $ 107,848     $ 101,260     $ 91,223  
                             
    Total assets   $ 1,578,589     $ 1,574,142     $ 1,553,217  
    Less: goodwill and other intangible assets     (34,803 )     (34,955 )     (35,448 )
    Tangible assets (E)   $ 1,543,786     $ 1,539,187     $ 1,517,769  
                             
    Tangible equity to tangible assets (D/E)     6.99 %     6.58 %     6.01 %
                             
    Shares outstanding at end of period (F)     5,778,610       5,775,198       5,747,560  
                             
    Tangible book value per share (D/F)   $ 18.66     $ 17.53     $ 15.87  

    The MIL Network –

  • MIL-OSI Security: Wethersfield Woman Admits Role in Scheme that Defrauded Connecticut’s Medicaid Program of More Than $1.8 Million

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that SUHAIL APONTE, 38, of Wethersfield, waived her right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to a health care fraud offense related to a Medicaid fraud scheme.

    The Connecticut Medical Assistance Program (CTMAP) is a Connecticut Department of Social Services-administered program that provides medical assistance to low income persons.  CTMAP’s benefit packages, referred to as “HUSKY” or “Connecticut Medicaid,” are jointly funded by the State of Connecticut and the federal government.

    According to court documents and statements made in court, Aponte was the sole principal and registered agent of Minds Cornerstone LLC, dba Minds Cornerstone Behavior Therapy Services (“Minds Cornerstone”), an Autism Specialist Group, which was registered with the State of Connecticut in June 2021.  Beginning in approximately November 2021, Aponte, who is not a licensed provider, was involved in a scheme in which she and a co-conspirator used Minds Cornerstone to defraud the Connecticut Medicaid Program by submitting fraudulent claims for applied behavior analysis (“ABA”) services to children diagnosed with Autism Spectrum Disorder (“ASD”).  The scheme involved billing for Medicaid for services purportedly rendered to patients when company payroll records indicate employees were not compensated for the associated services; direct supervision services purportedly provided by a Board Certified Behavior Analyst (“BCBA”) of a behavioral technician, when the corresponding procedure code for behavioral technician services was not billed; services purportedly rendered to patients who were actually in an inpatient hospital; and services purportedly rendered when parents of patients and former employees of Minds Cornerstone confirmed those services did not occur.

    Between November 2021 and January 2025, Aponte and her co-conspirator submitted or caused to be submitted to Medicaid fraudulent claims that resulted in a loss of approximately $1,876,617 to the Connecticut Department of Social Services.

    From approximately May 2022 until November 2024, Aponte was also employed by the State of Connecticut in the Office of Policy and Management.

    Aponte pleaded guilty to conspiracy to commit health care fraud, which carries a maximum term of imprisonment of 10 years.

    As part of her plea, Aponte has agreed to the forfeiture of approximately $459,000 in funds seized from various bank accounts she controlled, as well as her interest in additional bank accounts and two parcels of land in Hartford.

    Judge Underhill scheduled sentencing for July 30.

    Aponte has been released on a $100,000 bond since her arrest on January 16, 2025.

    This investigation is being conducted by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, with the assistance of the Connecticut Department of Social Services.  The case is being prosecuted by Assistant U.S. Attorney David T. Huang.

    MIL Security OSI –

  • MIL-OSI: AGF Investments Announces Fee Reductions and Risk Rating Changes for Certain Funds

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, April 30, 2025 (GLOBE NEWSWIRE) — AGF Investments Inc. (AGF Investments) is pleased to announce today lower management and administration fees and risk ratings for certain funds. These changes build on the firm’s commitment to continually reviewing its product line-up to ensure its offerings are responsive to market trends and competitively priced.

    Management Fee Changes

    AGF Investments is reducing management fees on the following funds/series effective May 1.

    Fund Series Current
    Management Fee    		 Updated
    Management Fee
    AGF Equity Income Fund F 0.85 0.80
    AGF European Equity Class MF 2.50 1.90
    AGF European Equity Class T 2.50 1.90
    AGF European Equity Class F 1.00 0.90
    AGF Global Strategic Income Fund MF 2.25 2.00
    AGF Global Strategic Income Fund T 2.25 2.00
    AGF Global Strategic Income Fund V 2.25 2.00
           

    Fixed Administration Fee Changes

    AGF Investments is reducing administration fees on the following funds/series effective May 1.

    Fund Series Current
    Admin     Fee    		 Updated
    Admin Fee
    AGF European Equity Class MF 0.38 0.17
    AGF European Equity Class T 0.38 0.17
    AGF European Equity Class F 0.32 0.02
           

    Risk Rating Changes

    The following risk rating changes are effective today.  

    Fund Current Risk Rating Updated Risk Rating
    AGF European Equity Class Medium-High Medium
    AGF European Equity Fund Medium-High Medium
         

    These risk rating changes are the result of an annual review conducted by AGF Investments using the prescribed risk classification methodology. No material changes have been made to the investment objectives, strategies or management of AGF European Equity Class/Fund.

    Further information about the AGF Funds can be found at AGF.com.

    This information is not intended to provide legal, accounting, tax, investment, financial, or other advice, and should not be relied upon for providing such advice. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. 

    About AGF Management Limited

    Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

    AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

    Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. With over $52 billion in total assets under management and fee-earning assets, AGF serves more than 815,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

    About AGF Investments

    AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). The term AGF Investments may refer to one or more of these subsidiaries or to all of them jointly. This term is used for convenience and does not precisely describe any of the separate companies, each of which manages its own affairs.

    AGF Investments entities only provide investment advisory services or offers investment funds in the jurisdiction where such firm and/or product is registered or authorized to provide such services.

    AGF Investments Inc. is a wholly-owned subsidiary of AGF Management Limited and conducts the management and advisory of mutual funds in Canada.

    Media Contact

    Amanda Marchment
    Director, Corporate Communications
    416-865-4160
    amanda.marchment@agf.com  

    The MIL Network –

  • MIL-OSI: Ansys Announces Q1 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    / Q1 2025 Results

    • Revenue of $504.9 million
    • GAAP diluted earnings per share of $0.59 and non-GAAP diluted earnings per share of $1.64
    • GAAP operating profit margin of 11.7% and non-GAAP operating profit margin of 33.5%
    • Operating cash flows of $398.9 million and unlevered operating cash flows of $407.1 million
    • Annual contract value (ACV) of $410.1 million
    • Deferred revenue and backlog of $1,627.7 million on March 31, 2025

    PITTSBURGH, April 30, 2025 (GLOBE NEWSWIRE) — ANSYS, Inc. (NASDAQ: ANSS) today reported first quarter 2025 revenue of $504.9 million, an increase of 8% in reported currency, or 10% in constant currency, when compared to the first quarter of 2024. For the first quarter of 2025, the Company reported diluted earnings per share of $0.59 and $1.64 on a GAAP and non-GAAP basis, respectively, compared to $0.40 and $1.39 on a GAAP and non-GAAP basis, respectively, for the first quarter of 2024. Additionally, the Company reported first quarter ACV growth of 1% in reported currency, or 2% in constant currency, when compared to the first quarter of 2024. The results for the first quarter met the Company’s expectations and it continues to expect double-digit FY 2025 ACV growth.

    As previously announced, on January 15, 2024, Ansys entered into a definitive agreement with Synopsys, Inc. (“Synopsys”) under which Synopsys will acquire Ansys. Since the Company’s last earnings release, the U.K. Competition and Markets Authority has formally cleared the transaction in Phase 1 subject to previously announced divestitures. Additionally, Ansys and Synopsys have received clearances from the Turkey Competition Authority, Japan Fair Trade Commission, Korea Fair Trade Commission and Taiwan Fair Trade Commission. We continue to work with the regulators in other relevant jurisdictions to conclude their reviews. The transaction is anticipated to close in the first half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions. As previously announced, in light of the pending transaction with Synopsys, Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance.

    The non-GAAP financial results highlighted represent non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures can be found later in this release.

    / Summary of Financial Results

    Ansys’ first quarter 2025 and 2024 financial results are presented below. The 2025 and 2024 non-GAAP results exclude the income statement effects of stock-based compensation, excess payroll taxes related to stock-based compensation, amortization of acquired intangible assets, expenses related to business combinations and adjustments for the income tax effect of the excluded items.

    Our results are as follows:

      GAAP
    (in thousands, except per share data and percentages) Q1 2025   Q1 2024   % Change
    Revenue $   504,891     $   466,605     8.2 %
    Net income $     51,865     $     34,778     49.1 %
    Diluted earnings per share $        0.59        $        0.40        47.5 %
    Gross margin   85.6 %     85.3 %    
    Operating profit margin   11.7 %     9.3 %    
    Effective tax rate   19.6 %     15.1 %    
                       
      Non-GAAP
    (in thousands, except per share data and percentages) Q1 2025   Q1 2024   % Change
    Net income $   144,149     $   121,996     18.2 %
    Diluted earnings per share $        1.64        $        1.39        18.0 %
    Gross margin   91.2 %     90.9 %    
    Operating profit margin   33.5 %     32.2 %    
    Effective tax rate   17.5 %     17.5 %    
                       
      Other Metrics
    (in thousands, except percentages) Q1 2025   Q1 2024   % Change
    ACV $   410,068   $   407,405   0.7 %
    Operating cash flows $   398,935   $   282,817   41.1 %
    Unlevered operating cash flows $   407,128   $   292,667   39.1 %
                     
    Supplemental Financial Information

    / Annual Contract Value

    (in thousands, except percentages) Q1 2025   Q1 2025 in
    Constant Currency    		   Q1 2024   % Change   % Change in
    Constant Currency
    ACV $        410,068   $         416,640   $        407,405   0.7 %   2.3 %
                                 

    Recurring ACV includes both subscription lease ACV and all maintenance ACV (including maintenance from perpetual licenses). It excludes perpetual license ACV and service ACV.

     

    / Revenue

    (in thousands, except percentages) Q1 2025   Q1 2025 in
    Constant Currency    		   Q1 2024   % Change   % Change in
    Constant Currency
    Revenue $        504,891   $         512,570   $        466,605   8.2 %   9.9 %
                                 
    REVENUE BY LICENSE TYPE
                           
    (in thousands, except percentages) Q1 2025   % of Total   Q1 2024   % of Total   % Change   % Change in
    Constant Currency
    Subscription Lease $          96,919   19.2 %   $          94,800   20.3 %   2.2 %   4.0 %
    Perpetual              63,036   12.5 %                65,521   14.0 %   (3.8)%   (2.9)%
    Maintenance1            324,392   64.2 %              289,340   62.0 %   12.1 %   13.9 %
    Service              20,544   4.1 %                16,944   3.6 %   21.2 %   22.5 %
    Total $        504,891       $        466,605       8.2 %   9.9 %
                           

    1Maintenance revenue is inclusive of both maintenance associated with perpetual licenses and the maintenance component of subscription leases.

    REVENUE BY GEOGRAPHY
                           
    (in thousands, except percentages) Q1 2025   % of Total   Q1 2024   % of Total   % Change   % Change in
    Constant Currency
    Americas $        230,377   45.6 %   $        208,697   44.7 %   10.4 %   10.5 %
                           
    Germany              35,021   6.9 %                36,198   7.8 %   (3.3)%   (0.4)%
    Other EMEA              83,839   16.6 %                82,417   17.7 %   1.7 %   3.9 %
    EMEA            118,860   23.5 %              118,615   25.4 %   0.2 %   2.6 %
                           
    Japan              43,297   8.6 %                36,532   7.8 %   18.5 %   20.9 %
    Other Asia-Pacific            112,357   22.3 %              102,761   22.0 %   9.3 %   12.9 %
    Asia-Pacific            155,654   30.8 %              139,293   29.9 %   11.7 %   15.0 %
                           
    Total $        504,891       $        466,605       8.2 %   9.9 %
                                   
    REVENUE BY CHANNEL
           
      Q1 2025   Q1 2024
    Direct revenue, as a percentage of total revenue 69.1 %   66.5 %
    Indirect revenue, as a percentage of total revenue 30.9 %   33.5 %
               

    / Deferred Revenue and Backlog

    (in thousands) March 31,
    2025    		   December 31,
         2024    		   March 31,
    2024
    Current Deferred Revenue $            490,318   $            504,527   $            433,167
    Current Backlog                511,197                  524,617                  433,106
    Total Current Deferred Revenue and Backlog            1,001,515               1,029,144                  866,273
               
    Long-Term Deferred Revenue                  30,840                    31,778                    21,434
    Long-Term Backlog                595,388                  657,345                  481,746
    Total Long-Term Deferred Revenue and Backlog                626,228                  689,123                  503,180
               
    Total Deferred Revenue and Backlog $        1,627,743   $        1,718,267   $        1,369,453
                     

    / Currency

    The first quarter of 2025 revenue, operating income and ACV, as compared to the first quarter of 2024, were impacted by fluctuations in the exchange rates of foreign currencies against the U.S. Dollar. The currency fluctuation impacts on revenue, GAAP and non-GAAP operating income and ACV based on 2024 exchange rates are reflected in the tables below. Deferred revenue and backlog as of March 31, 2025, as compared to the balances at December 31, 2024, were also impacted by fluctuations in the exchange rates of foreign currencies against the U.S. Dollar. Amounts in brackets indicate an adverse impact from currency fluctuations.

    (in thousands) Q1 2025
    Revenue $          (7,679 )
    GAAP operating income $          (2,848 )
    Non-GAAP operating income $          (3,044 )
    ACV $          (6,572 )
    Deferred revenue and backlog $         19,166  
           

    The most meaningful currency impacts are typically attributable to U.S. Dollar exchange rate changes against the Euro and Japanese Yen. Historical exchange rates are reflected in the charts below.

      Period-End Exchange Rates
    As of EUR/USD   USD/JPY
    March 31, 2025                    1.08                       150
    December 31, 2024                    1.04                       157
    March 31, 2024                    1.08                       151
           
      Average Exchange Rates
    Three Months Ended EUR/USD   USD/JPY
    March 31, 2025                    1.05                       152
    March 31, 2024                    1.09                       148
           

    / GAAP Financial Statements

    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets
    (Unaudited)
    (in thousands) March 31, 2025   December 31, 2024
    ASSETS:      
    Cash & short-term investments $                      1,828,559   $                      1,497,517
    Accounts receivable, net                              754,655                             1,022,850
    Goodwill                          3,799,809                             3,778,128
    Other intangibles, net                              694,235                                716,244
    Other assets                              903,755                             1,036,692
    Total assets $                      7,981,013   $                      8,051,431
    LIABILITIES & STOCKHOLDERS’ EQUITY:      
    Current deferred revenue $                          490,318   $                          504,527
    Long-term debt                              754,287                                754,208
    Other liabilities                              556,933                                706,256
    Stockholders’ equity                          6,179,475                             6,086,440
    Total liabilities & stockholders’ equity $                      7,981,013   $                      8,051,431
               
    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Statements of Income
    (Unaudited)
        Three Months Ended
    (in thousands, except per share data)   March 31,
    2025    		   March 31,
    2024
    Revenue:        
    Software licenses   $              159,955     $              160,321  
    Maintenance and service                     344,936                       306,284  
    Total revenue                     504,891                       466,605  
    Cost of sales:        
    Software licenses                         9,370                         10,044  
    Amortization                       23,429                         22,484  
    Maintenance and service                       39,770                         36,139  
    Total cost of sales                       72,569                         68,667  
    Gross profit                     432,322                       397,938  
    Operating expenses:        
    Selling, general and administrative                     230,415                       219,643  
    Research and development                     137,292                       128,811  
    Amortization                         5,722                           6,145  
    Total operating expenses                     373,429                       354,599  
    Operating income                       58,893                         43,339  
    Interest income                       16,743                         10,995  
    Interest expense                     (10,177 )                     (12,369 )
    Other expense, net                           (930 )                       (1,007 )
    Income before income tax provision                       64,529                         40,958  
    Income tax provision                       12,664                           6,180  
    Net income   $                51,865     $                34,778  
    Earnings per share – basic:        
    Earnings per share   $                     0.59     $                     0.40  
    Weighted average shares                       87,653                         87,067  
    Earnings per share – diluted:        
    Earnings per share   $                     0.59     $                     0.40  
    Weighted average shares                       88,127                         87,780  
                     

    / Glossary of Terms

    Annual Contract Value (ACV): ACV is a key performance metric and is useful to investors in assessing the strength and trajectory of our 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 and in setting sales targets used for compensation. 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:

    • the annualized value of maintenance and subscription lease contracts with start dates or anniversary dates during the period, plus
    • the value of perpetual license contracts with start dates during the period, plus
    • the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
    • the value of work performed during the period on fixed-deliverable services contracts.

    When we refer to the anniversary dates in the definition of ACV above, we are referencing the date of the beginning of the next twelve-month period in a contractually committed multi-year contract. If a contract is three years in duration, with a start date of July 1, 2025, the anniversary dates would be July 1, 2026 and July 1, 2027. We label these anniversary dates as they are contractually committed. While this contract would be up for renewal on July 1, 2028, our ACV performance metric does not assume any contract renewals.

    Example 1: For purposes of calculating ACV, a $100,000 subscription lease contract or a $100,000 maintenance contract with a term of July 1, 2025 – June 30, 2026 would each contribute $100,000 to ACV for fiscal year 2025 with no contribution to ACV for fiscal year 2026.

    Example 2: For purposes of calculating ACV, a $300,000 subscription lease contract or a $300,000 maintenance contract with a term of July 1, 2025 – June 30, 2028 would each contribute $100,000 to ACV in each of fiscal years 2025, 2026 and 2027. There would be no contribution to ACV for fiscal year 2028 as each period captures the full annual value upon the anniversary date.

    Example 3: A perpetual license valued at $200,000 with a contract start date of March 1, 2025 would contribute $200,000 to ACV in fiscal year 2025.

    Backlog: Deferred revenue associated with installment billings for periods beyond the current quarterly billing cycle and committed contracts with start dates beyond the end of the current period.

    Deferred Revenue: Billings made or payments received in advance of revenue recognition.

    Subscription Lease or Time-Based License: A license of a stated product of our software that is granted to a customer for use over a specified time period, which can be months or years in length. In addition to the use of the software, the customer is provided with access to maintenance (unspecified version upgrades and technical support) without additional charge. The revenue related to these contracts is recognized ratably over the contract period for the maintenance portion and up front for the license portion.

    Perpetual / Paid-Up License: A license of a stated product and version of our software that is granted to a customer for use in perpetuity. The revenue related to this type of license is recognized up front.

    Maintenance: A contract, typically one year in duration, that is purchased by the owner of a perpetual license and that provides access to unspecified version upgrades and technical support during the duration of the contract. The revenue from these contracts is recognized ratably over the contract period.

    / Reconciliations of GAAP to Non-GAAP Measures (Unaudited)

      Three Months Ended
      March 31, 2025
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      432,322   85.6 %   $        58,893   11.7 %   $      51,865     $        0.59  
    Stock-based compensation expense               3,977   0.8 %              70,243   14.0 %             70,243                 0.80  
    Excess payroll taxes related to stock-based awards                  354   0.1 %                6,016   1.2 %               6,016                 0.07  
    Amortization of intangible assets from acquisitions             23,429   4.6 %              29,151   5.7 %             29,151                 0.33  
    Expenses related to business combinations                  405   0.1 %                4,787   0.9 %               4,787                 0.05  
    Adjustment for income tax effect                     —   — %                      —   — %           (17,913 )             (0.20 )
    Total non-GAAP $      460,487   91.2 %   $      169,090   33.5 %   $    144,149     $        1.64  
                                           

    1 Diluted weighted average shares were 88,127.

      Three Months Ended
      March 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      397,938   85.3 %   $       43,339   9.3 %   $      34,778     $        0.40  
    Stock-based compensation expense               3,343   0.7 %             58,664   12.7 %             58,664                 0.66  
    Excess payroll taxes related to stock-based awards                  378   0.1 %                5,362   1.1 %               5,362                 0.06  
    Amortization of intangible assets from acquisitions             22,484   4.8 %             28,629   6.1 %             28,629                 0.33  
    Expenses related to business combinations                     —   — %             14,261   3.0 %             14,261                 0.16  
    Adjustment for income tax effect                     —   — %                      —   — %           (19,698 )             (0.22 )
    Total non-GAAP $      424,143   90.9 %   $     150,255   32.2 %   $    121,996     $        1.39  
                                           

    1 Diluted weighted average shares were 87,780.

      Three Months Ended
    (in thousands) March 31,
    2025    		   March 31,
    2024
    Net cash provided by operating activities $            398,935     $            282,817  
    Cash paid for interest                    9,931                      11,939  
    Tax benefit                   (1,738 )                     (2,089 )
    Unlevered operating cash flows $            407,128     $            292,667  
                   

    / Use of Non-GAAP Measures

    We provide non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income, non-GAAP diluted earnings per share and unlevered operating cash flows as supplemental measures to GAAP regarding our operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to these financial measures is described below. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure, as applicable.

    We use non-GAAP financial measures (a) to evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (b) to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and employees. In addition, many financial analysts that follow us focus on and publish both historical results and future projections based on non-GAAP financial measures. We believe that it is in the best interest of our investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested, and we have historically reported, these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.

    While we believe that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all our competitors and may not be directly comparable to similarly titled measures of our competitors due to potential differences in the exact method of calculation. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.

    The adjustments to these non-GAAP financial measures, and the basis for such adjustments, are outlined below:

    Amortization of intangible assets from acquisitions. We incur amortization of intangible assets, included in our GAAP presentation of amortization expense, related to various acquisitions we have made. We exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by us after the acquisition. Accordingly, we do not consider these expenses for purposes of evaluating our performance during the applicable time period after the acquisition, and we exclude such expenses when making decisions to allocate resources. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our past reports of financial results as we have historically reported these non-GAAP financial measures.

    Stock-based compensation expense. We incur expense related to stock-based compensation included in our GAAP presentation of cost of maintenance and service; research and development expense; and selling, general and administrative expense. We also incur excess payroll tax expense related to stock-based compensation, which is an additional non-GAAP adjustment. Although stock-based compensation is an expense and viewed as a form of compensation, we exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance. Specifically, we exclude stock-based compensation during our annual budgeting process and our quarterly and annual assessments of our performance. The annual budgeting process is the primary mechanism whereby we allocate resources to various initiatives and operational requirements. Additionally, the annual review by our Board of Directors during which it compares our historical business model and profitability to the planned business model and profitability for the forthcoming year excludes the impact of stock-based compensation. In evaluating the performance of our senior management and department managers, charges related to stock-based compensation are excluded from expenditure and profitability results. In fact, we record stock-based compensation expense into a stand-alone cost center for which no single operational manager is responsible or accountable. In this way, we can review, on a period-to-period basis, each manager’s performance and assess financial discipline over operational expenditures without the effect of stock-based compensation. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Expenses related to business combinations. We incur expenses for professional services rendered in connection with acquisitions and divestitures, which are included in our GAAP presentation of selling, general and administrative expense. We also incur other expenses directly related to business combinations, including compensation expenses and concurrent restructuring activities, such as employee severances and other exit costs. These costs are included in our GAAP presentation of cost of maintenance and service, selling, general and administrative and research and development expenses. We exclude these acquisition-related expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance, as we generally would not have otherwise incurred these expenses in the periods presented as a part of our operations. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Non-GAAP tax provision. We utilize a normalized non-GAAP annual effective tax rate (AETR) to calculate non-GAAP measures. This methodology provides better consistency across interim reporting periods by eliminating the effects of non-recurring items and aligning the non-GAAP tax rate with our expected geographic earnings mix. To project this rate, we analyzed our historic and projected non-GAAP earnings mix by geography along with other factors such as our current tax structure, recurring tax credits and incentives, and expected tax positions. On an annual basis we re-evaluate and update this rate for significant items that may materially affect our projections.

    Unlevered operating cash flows. We make cash payments for the interest incurred in connection with our debt financing which are included in our GAAP presentation of operating cash flows. We exclude this cash paid for interest, net of the associated tax benefit, for the purpose of calculating unlevered operating cash flows. Unlevered operating cash flow is a supplemental non-GAAP measure that we use to evaluate our core operating business. We believe this measure is useful to investors and management because it provides a measure of our cash generated through operating activities independent of the capital structure of the business.

    Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
    We have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below:

    GAAP Reporting Measure Non-GAAP Reporting Measure
    Gross Profit Non-GAAP Gross Profit
    Gross Profit Margin Non-GAAP Gross Profit Margin
    Operating Income Non-GAAP Operating Income
    Operating Profit Margin Non-GAAP Operating Profit Margin
    Net Income Non-GAAP Net Income
    Diluted Earnings Per Share Non-GAAP Diluted Earnings Per Share
    Operating Cash Flows Unlevered Operating Cash Flows
       

    Constant currency. In addition to the non-GAAP financial measures detailed above, we use constant currency results for financial and operational decision-making and as a means to evaluate period-to-period comparisons by excluding the effects of foreign currency fluctuations on the reported results. To present this information, the 2025 period results for entities whose functional currency is a currency other than the U.S. Dollar were converted to U.S. Dollars at rates that were in effect for the 2024 comparable period, rather than the actual exchange rates in effect for 2025. Constant currency growth rates are calculated by adjusting the 2025 period reported amounts by the 2025 currency fluctuation impacts and comparing the adjusted amounts to the 2024 comparable period reported amounts. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our reported results to our past reports of financial results without the effects of foreign currency fluctuations.

    / About Ansys

    Our Mission: Powering Innovation that Drives Human Advancement™

    When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys.

    / Forward-Looking Information

    This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are statements that provide current expectations or forecasts of future events based on certain assumptions. Forward-looking statements are subject to risks, uncertainties, and factors relating to our business which could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements.

    Forward-looking statements use words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “project,” “should,” “target” or other words of similar meaning. Forward-looking statements include those about the proposed transaction with Synopsys, including the expected date of closing and the potential benefits thereof, and other aspects of future operations. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

    The risks associated with the following, among others, could cause actual results to differ materially from those described in any forward-looking statements:

    • our ability to complete the proposed transaction with Synopsys on anticipated terms and timing, including completing the associated divestiture of our PowerArtist RTL business and obtaining regulatory approvals, and other conditions related to the completion of the transaction with Synopsys;
       
    • the realization of the anticipated benefits of the proposed transaction with Synopsys, including potential disruptions to our and Synopsys’ businesses and commercial relationships with others resulting from the announcement, pendency or completion of the proposed transaction and uncertainty as to the long-term value of Synopsys’ common stock;
       
    • restrictions on our operations during the pendency of the proposed transaction with Synopsys that could impact our ability to pursue certain business opportunities or strategic transactions, including tuck-in M&A;
       
    • adverse conditions in the macroeconomic environment, including inflation, recessionary conditions and volatility in equity and foreign exchange markets;
       
    • political, economic and regulatory uncertainties in the countries and regions in which we operate;
       
    • impacts from tariffs, trade sanctions, export controls or other trade barriers, including export control restrictions and licensing requirements for exports to China;
       
    • impacts resulting from the conflict between Israel and Hamas and other countries and groups in the Middle East, including impacts from changes to diplomatic relations and trade policy between the United States and other countries resulting from the conflict;
       
    • impacts from changes to diplomatic relations and trade policy between the United States and Russia or between the United States and other countries that may support Russia or take similar actions due to the conflict between Russia and Ukraine;
       
    • constrained credit and liquidity due to disruptions in the global economy and financial markets, which may limit or delay availability of credit under our existing or new credit facilities, or which may limit our ability to obtain credit or financing on acceptable terms or at all;
       
    • our ability to timely recruit and retain key personnel in a highly competitive labor market, including potential financial impacts of wage inflation and potential impacts due to the proposed transaction with Synopsys;
       
    • our ability to protect our proprietary technology; cybersecurity threats or other security breaches, including in relation to breaches occurring through our products and an increased level of our activity that is occurring from remote global off-site locations; and disclosure or misuse of employee or customer data whether as a result of a cybersecurity incident or otherwise;
       
    • volatility in our revenue due to the timing, duration and value of multi-year subscription lease contracts; and our reliance on high renewal rates for annual subscription lease and maintenance contracts;
       
    • declines in our customers’ businesses resulting in adverse changes in procurement patterns; disruptions in accounts receivable and cash flow due to customers’ liquidity challenges and commercial deterioration; uncertainties regarding demand for our products and services in the future and our customers’ acceptance of new products; delays or declines in anticipated sales due to reduced or altered sales and marketing interactions with customers; and potential variations in our sales forecast compared to actual sales;
       
    • our ability and our channel partners’ ability to comply with laws and regulations in relevant jurisdictions; and the outcome of contingencies, including legal proceedings, government or regulatory investigations and tax audit cases;
       
    • uncertainty regarding income tax estimates in the jurisdictions in which we operate; and the effect of changes in tax laws and regulations in the jurisdictions in which we operate;
       
    • the quality of our products, including the strength of features, functionality and integrated multiphysics capabilities; our ability to develop and market new products to address the industry’s rapidly changing technology, including the use of artificial intelligence and machine learning in our products as well as the products of our competitors; failures or errors in our products and services; and increased pricing pressure as a result of the competitive environment in which we operate;
       
    • investments in complementary companies, products, services and technologies; our ability to complete and successfully integrate our acquisitions and realize the financial and business benefits of such transactions; and the impact indebtedness incurred in connection with any acquisition could have on our operations;
       
    • investments in global sales and marketing organizations and global business infrastructure, and dependence on our channel partners for the distribution of our products;
       
    • current and potential future impacts of any global health crisis, natural disaster or catastrophe; the actions taken to address these events by our customers, our suppliers, and regulatory authorities; the resulting effects on our business, the global economy and our consolidated financial statements; and other public health and safety risks and related government actions or mandates;
       
    • operational disruptions generally or specifically in connection with transitions to and from remote work environments; and the failure of our technological infrastructure or those of the service providers upon whom we rely including for infrastructure and cloud services;
       
    • our intention to repatriate previously taxed earnings and to reinvest all other earnings of our non-U.S. subsidiaries;
       
    • plans for future capital spending and the extent of corporate benefits from such spending; and higher than anticipated costs for research and development or a slowdown in our research and development activities;
       
    • our ability to execute on our strategies related to environmental, social and governance matters, and meet evolving and varied expectations, including as a result of evolving regulatory and other standards, processes and assumptions, the pace of scientific and technological developments, increased costs and the availability of requisite financing, and changes in carbon markets; and
       
    • other risks and uncertainties described in our reports filed from time to time with the Securities and Exchange Commission (the SEC).  

    Ansys and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

    Visit https://investors.ansys.com for more information.

    ANSS-F

    Photos accompanying this announcement are available at
    https://www.globenewswire.com/NewsRoom/AttachmentNg/555457d0-68c2-4e39-9654-7433c0575e9e

    https://www.globenewswire.com/NewsRoom/AttachmentNg/f9600ece-a84c-4586-bb8a-98965ce32a1c

    https://www.globenewswire.com/NewsRoom/AttachmentNg/131c8a8b-e47c-4724-bdab-f0846535f0df

    The MIL Network –

  • MIL-OSI Economics: Microsoft Cloud and AI strength drives third quarter results

    Source: Microsoft

    Headline: Microsoft Cloud and AI strength drives third quarter results

    Microsoft Cloud and AI Strength Drives Third Quarter Results

    REDMOND, Wash. — April 30, 2025 — Microsoft Corp. today announced the following results for the quarter ended March 31, 2025, as compared to the corresponding period of last fiscal year:

    ·        Revenue was $70.1 billion and increased 13% (up 15% in constant currency)

    ·        Operating income was $32.0 billion and increased 16% (up 19% in constant currency)

    ·        Net income was $25.8 billion and increased 18% (up 19% in constant currency)

    ·        Diluted earnings per share was $3.46 and increased 18% (up 19% in constant currency)

    “Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” said Satya Nadella, chairman and chief executive officer of Microsoft. “From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”

    “We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20% (up 22% in constant currency) year-over-year driven by continued demand for our differentiated offerings,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

    Business Highlights

    Revenue in Productivity and Business Processes was $29.9 billion and increased 10% (up 13% in constant currency), with the following business highlights:

    ·        Microsoft 365 Commercial products and cloud services revenue increased 11% (up 14% in constant currency) driven by Microsoft 365 Commercial cloud revenue growth of 12% (up 15% in constant currency)

    ·        Microsoft 365 Consumer products and cloud services revenue increased 10% (up 12% in constant currency) driven by Microsoft 365 Consumer cloud revenue growth of 10% (up 12% in constant currency)

    ·        LinkedIn revenue increased 7% (up 8% in constant currency)

    ·        Dynamics products and cloud services revenue increased 11% (up 13% in constant currency) driven by Dynamics 365 revenue growth of 16% (up 18% in constant currency)

    Revenue in Intelligent Cloud was $26.8 billion and increased 21% (up 22% in constant currency), with the following business highlights:

    ·        Server products and cloud services revenue increased 22% (up 24% in constant currency) driven by Azure and other cloud services revenue growth of 33% (up 35% in constant currency)

    Revenue in More Personal Computing was $13.4 billion and increased 6% (up 7% in constant currency), with the following business highlights:

    ·        Windows OEM and Devices revenue increased 3%

    ·        Xbox content and services revenue increased 8% (up 9% in constant currency)

    ·        Search and news advertising revenue excluding traffic acquisition costs increased 21% (up 23% in constant currency)

    Microsoft returned $9.7 billion to shareholders in the form of dividends and share repurchases in the third quarter of fiscal year 2025.

    Business Outlook

    Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

    Quarterly Highlights, Product Releases, and Enhancements 

    Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

    Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

    Environmental, Social, and Governance (ESG)

    To learn more about Microsoft’s corporate governance and our environmental and social practices, please visit our investor relations Board and ESG website and reporting at Microsoft.com/transparency. 

    Webcast Details

    Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Jonathan Neilson, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on April 30, 2026.

    Constant Currency

    Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

    Financial Performance Constant Currency Reconciliation

     

    Three Months Ended March 31,

     ($ in millions, except per share amounts)

    Revenue

    Operating Income

    Net Income

    Diluted Earnings per Share

    2024 As Reported (GAAP)

    $61,858

    $27,581

    $21,939

    $2.94

    2025 As Reported (GAAP)

    $70,066

    $32,000

    $25,824

    $3.46

    Percentage Change Y/Y (GAAP)

    13%

    16%

    18%

    18%

    Constant Currency Impact

    $(1,059)

    $(703)

    $(392)

    $(0.05)

    Percentage Change Y/Y Constant Currency

    15%

    19%

    19%

    19%

     

    Segment Revenue Constant Currency Reconciliation

     

    Three Months Ended March 31,

     ($ in millions)

    Productivity and Business Processes

    Intelligent Cloud

    More Personal Computing

    2024 As Reported (GAAP)

    $27,113

    $22,141

    $12,604

    2025 As Reported (GAAP)

    $29,944

    $26,751

    $13,371

    Percentage Change Y/Y (GAAP)

    10%

    21%

    6%

    Constant Currency Impact

    $(626)

    $(308)

    $(125)

    Percentage Change Y/Y Constant Currency

    13%

    22%

    7%

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

    Selected Product and Service Revenue Constant Currency Reconciliation           

     

    Three Months Ended March 31, 2025

    Percentage Change Y/Y (GAAP)

    Constant Currency Impact

    Percentage Change Y/Y Constant Currency

    Microsoft Cloud

    20%

    2%

    22%

    Microsoft 365 Commercial products and cloud services

    11%

    3%

    14%

    Microsoft 365 Commercial cloud

    12%

    3%

    15%

    Microsoft 365 Consumer products and cloud services

    10%

    2%

    12%

    Microsoft 365 Consumer cloud

    10%

    2%

    12%

    LinkedIn

    7%

    1%

    8%

    Dynamics products and cloud services

    11%

    2%

    13%

    Dynamics 365

    16%

    2%

    18%

    Server products and cloud services

    22%

    2%

    24%

    Azure and other cloud services

    33%

    2%

    35%

    Windows OEM and Devices

    3%

    0%

    3%

    Xbox content and services

    8%

    1%

    9%

    Search and news advertising excluding traffic acquisition costs

    21%

    2%

    23%

     

    About Microsoft

    Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

    Forward-Looking Statements

    Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

    ·        intense competition in all of our markets that may adversely affect our results of operations;

    ·        focus on cloud-based and AI services presenting execution and competitive risks;

    ·        significant investments in products and services that may not achieve expected returns;

    ·        acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our business;

    ·        impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;

    ·        cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

    ·        disclosure and misuse of personal data that could cause liability and harm to our reputation;

    ·        the possibility that we may not be able to protect information stored in our products and services from use by others;

    ·        abuse of our advertising, professional, marketplace, or gaming platforms that may harm our reputation or user engagement;

    ·        products and services, how they are used by customers, and how third-party products and services interact with them, presenting security, privacy, and execution risks;

    ·        issues about the use of AI in our offerings that may result in reputational or competitive harm, or legal liability;

    ·        excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;

    ·        supply or quality problems;

    ·        government enforcement under competition laws and new market regulation may limit how we design and market our products;

    ·        potential consequences of trade and anti-corruption laws;

    ·        potential consequences of existing and increasing legal and regulatory requirements;

    ·        laws and regulations relating to the handling of personal data that may impede the adoption of our services or result in increased costs, legal claims, fines, or reputational damage;

    ·        claims against us that may result in adverse outcomes in legal disputes;

    ·        uncertainties relating to our business with government customers;

    ·        additional tax liabilities;

    ·        sustainability regulations and expectations that may expose us to increased costs and legal and reputational risk;

    ·        an inability to protect and utilize our intellectual property may harm our business and operating results;

    ·        claims that Microsoft has infringed the intellectual property rights of others;

    ·        damage to our reputation or our brands that may harm our business and results of operations;

    ·        adverse economic or market conditions that may harm our business;

    ·        catastrophic events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business;

    ·        exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange; and

    ·        the dependence of our business on our ability to attract and retain talented employees.

    For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

    All information in this release is as of March 31, 2025. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

    For more information, press only:

    Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

    For more information, financial analysts and investors only:

    Jonathan Neilson, Vice President, Investor Relations, (425) 706-4400

    Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.


     

    MICROSOFT CORPORATION

    INCOME STATEMENTS

    (In millions, except per share amounts) (Unaudited)

    Three Months Ended

     March 31,

    Nine Months Ended

     March 31,

     

    2025

     

    2024

     

    2025

     

    2024

    Revenue:

    Product

     $15,319

     $17,080

     $46,810

     $51,556

    Service and other

    54,747

     

    44,778

     

    158,473

     

    128,839

    Total revenue

    70,066

     

    61,858

     

    205,283

     

    180,395

    Cost of revenue:

    Product

    3,037

    4,339

    10,187

    13,834

    Service and other

    18,882

     

    14,166

     

    53,630

     

    40,596

    Total cost of revenue

    21,919

     

    18,505

     

    63,817

     

    54,430

    Gross margin

    48,147

    43,353

    141,466

    125,965

    Research and development

    8,198

    7,653

    23,659

    21,454

    Sales and marketing

    6,212

    6,207

    18,369

    17,640

    General and administrative

    1,737

    1,912

    5,233

    5,363

    Operating income

    32,000

     

    27,581

     

    94,205

     

    81,508

    Other expense, net

    (623)

     

    (854)

     

    (3,194)

     

    (971)

    Income before income taxes

    31,377

    26,727

    91,011

    80,537

    Provision for income taxes

    5,553

     

    4,788

     

    16,412

     

    14,437

    Net income

     $25,824

     

     $21,939

     

     $74,599

     

     $66,100

    Earnings per share:

    Basic

     $3.47

     $2.95

     $10.03

     $8.90

    Diluted

     $3.46

     $2.94

     $9.99

     $8.85

    Weighted average shares outstanding:

    Basic

    7,434

    7,431

    7,434

    7,431

    Diluted

    7,461

     

    7,472

     

    7,466

     

    7,467

     


     

    COMPREHENSIVE INCOME STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     March 31,

    Nine Months Ended

     March 31,

     

    2025

     

    2024

     

    2025

     

    2024

    Net income

     $25,824

     

     $21,939

     

     $74,599

     

     $66,100

    Other comprehensive income (loss), net of tax:

    Net change related to derivatives

    (20)

    10

    4

    28

    Net change related to investments

    450

    (202)

    1,130

    869

    Translation adjustments and other

    353

     

    (294)

     

    (377)

     

    11

    Other comprehensive income (loss)

    783

     

    (486)

     

    757

     

    908

    Comprehensive income

     $26,607

     

     $21,453

     

     $75,356

     

     $67,008

     


     

    BALANCE SHEETS

    (In millions) (Unaudited)

     

    March 31,

    2025

    June 30,

     2024

    Assets

    Current assets:

    Cash and cash equivalents

     $28,828

     $18,315

    Short-term investments

    50,790

    57,228

    Total cash, cash equivalents, and short-term investments

    79,618

    75,543

    Accounts receivable, net of allowance for doubtful accounts of $695 and $830

    51,700

    56,924

    Inventories

    848

    1,246

    Other current assets

    24,478

    26,021

    Total current assets

    156,644

    159,734

    Property and equipment, net of accumulated depreciation of $87,074 and $76,421

    183,939

    135,591

    Operating lease right-of-use assets

    24,475

    18,961

    Equity and other investments

    16,035

    14,600

    Goodwill

    119,329

    119,220

    Intangible assets, net

    23,968

    27,597

    Other long-term assets

    38,234

    36,460

    Total assets

     $562,624

     $512,163

    Liabilities and stockholders’ equity

    Current liabilities:

    Accounts payable

     $26,250

     $21,996

    Short-term debt

    0

    6,693

    Current portion of long-term debt

    2,999

    2,249

    Accrued compensation

    10,579

    12,564

    Short-term income taxes

    6,805

    5,017

    Short-term unearned revenue

    44,636

    57,582

    Other current liabilities

    22,937

    19,185

    Total current liabilities

    114,206

    125,286

    Long-term debt

    39,882

    42,688

    Long-term income taxes

    25,061

    27,931

    Long-term unearned revenue

    2,840

    2,602

    Deferred income taxes

    2,522

    2,618

    Operating lease liabilities

    17,686

    15,497

    Other long-term liabilities

    38,536

    27,064

    Total liabilities

    240,733

    243,686

    Commitments and contingencies

    Stockholders’ equity:

    Common stock and paid-in capital – shares authorized 24,000; outstanding 7,434 and 7,434

    106,965

    100,923

    Retained earnings

    219,759

    173,144

    Accumulated other comprehensive loss

    (4,833)

    (5,590)

    Total stockholders’ equity

    321,891

    268,477

    Total liabilities and stockholders’ equity

     $562,624

     $512,163

     


     

    CASH FLOWS STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     March 31,

    Nine Months Ended

     March 31,

     

    2025

     

    2024

     

    2025

     

    2024

    Operations

    Net income

     $25,824

     $21,939

     $74,599

     $66,100

    Adjustments to reconcile net income to net cash from operations:

    Depreciation, amortization, and other

    8,740

    6,027

    22,950

    15,907

    Stock-based compensation expense

    2,980

    2,703

    8,901

    8,038

    Net recognized losses (gains) on investments and derivatives

    (298)

    49

    553

    261

    Deferred income taxes

    (2,244)

    (1,323)

    (4,835)

    (3,593)

    Changes in operating assets and liabilities:

    Accounts receivable

    (2,461)

    (2,028)

    5,598

    6,055

    Inventories

    52

    260

    390

    1,229

    Other current assets

    1,076

    951

    642

    880

    Other long-term assets

    (518)

    (2,137)

    (3,368)

    (5,577)

    Accounts payable

    1,179

    648

    1,221

    (659)

    Unearned revenue

    (1,032)

    (645)

    (12,923)

    (10,309)

    Income taxes

    1,298

    2,622

    (1,081)

    2,493

    Other current liabilities

    2,839

    2,803

    576

    215

    Other long-term liabilities

    (391)

     

    48

     

    292

     

    313

    Net cash from operations

    37,044

     

    31,917

     

    93,515

     

    81,353

    Financing

    Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net

    0

    (3,810)

    (5,746)

    6,392

    Proceeds from issuance of debt

    0

    6,352

    0

    24,198

    Repayments of debt

    (2,250)

    (11,589)

    (3,216)

    (16,005)

    Common stock issued

    546

    522

    1,508

    1,468

    Common stock repurchased

    (4,781)

    (4,213)

    (13,874)

    (13,044)

    Common stock cash dividends paid

    (6,169)

    (5,572)

    (17,913)

    (16,197)

    Other, net

    (382)

     

    (498)

     

    (1,614)

     

    (1,006)

    Net cash used in financing

    (13,036)

     

    (18,808)

     

    (40,855)

     

    (14,194)

    Investing

    Additions to property and equipment

    (16,745)

    (10,952)

    (47,472)

    (30,604)

    Acquisition of companies, net of cash acquired and divestitures, and purchases of intangible and other assets

    (981)

    (1,575)

    (4,235)

    (67,790)

    Purchases of investments

    (4,474)

    (2,183)

    (8,144)

    (14,901)

    Maturities of investments

    6,721

    3,350

    11,461

    23,218

    Sales of investments

    2,161

    1,941

    6,688

    8,871

    Other, net

    604

    (1,281)

    (325)

    (916)

    Net cash used in investing

    (12,714)

     

    (10,700)

     

    (42,027)

     

    (82,122)

    Effect of foreign exchange rates on cash and cash equivalents

    52

     

    (80)

     

    (120)

     

    (107)

    Net change in cash and cash equivalents

    11,346

    2,329

    10,513

    (15,070)

    Cash and cash equivalents, beginning of period

    17,482

     

    17,305

     

    18,315

     

    34,704

    Cash and cash equivalents, end of period

     $28,828

     

     $19,634

     

     $28,828

     

     $19,634

     


     

    SEGMENT REVENUE AND OPERATING INCOME

    (In millions) (Unaudited)

     

    Three Months Ended

     March 31,

     

    Nine Months Ended

     March 31,

     

     

     

    2025

     

    2024

     

    2025

     

    2024

    Revenue

     

     

     

     

     

     

     

    Productivity and Business Processes

     $29,944

     

     $27,113

     

     $87,698

     

     $78,193

    Intelligent Cloud

    26,751

     

    22,141

     

    76,387

     

    63,679

    More Personal Computing

    13,371

     

    12,604

     

    41,198

     

    38,523

    Total

     $70,066

     

     $61,858

     

     $205,283

     

     $180,395

    Operating Income

     

     

     

     

     

     

     

    Productivity and Business Processes

     $17,379

     

     $15,143

     

     $50,780

     

     $43,955

    Intelligent Cloud

    11,095

     

    9,515

     

    32,449

     

    27,978

    More Personal Computing

    3,526

     

    2,923

     

    10,976

     

    9,575

    Total

     $32,000

     

     $27,581

     

     $94,205

     

     $81,508

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

     

    MIL OSI Economics –

  • MIL-OSI: National Fuel Reports Second Quarter Earnings

    Source: GlobeNewswire (MIL-OSI)

    WILLIAMSVILLE, N.Y., April 30, 2025 (GLOBE NEWSWIRE) — National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2025 fiscal year.

    FISCAL 2025 SECOND QUARTER SUMMARY

    • GAAP net income of $216 million, or $2.37 per share, an increase of 32% per share compared to the prior year.
    • Adjusted operating results of $218 million, or $2.39 per share, an increase of 34% per share compared to the prior year. See non-GAAP reconciliation on page 2.
    • Seneca produced a record 105.5 Bcf of natural gas, an increase of 3% from the prior year and 8% sequentially, largely due to strong results from pads recently turned in line in the Eastern Development Area (“EDA”).
    • Utility segment net income of $63.5 million, or $0.70 per share, an increase of 44% per share compared to the prior year, primarily as a result of the New York jurisdiction’s 2024 rate settlement, which led to its first base rate increase since 2017.
    • Pipeline & Storage segment net income of $31.7 million, or $0.35 per share, an increase of 5% per share compared to the prior year. In addition, Empire Pipeline reached an agreement with its customers to amend its existing rate settlement, which was approved by the FERC on March 17, 2025, with new rates effective November 1, 2025.
    • The Company is increasing its guidance for fiscal 2025 adjusted earnings per share to a range of $6.75 to $7.05.

    MANAGEMENT COMMENTS

    David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “During our second quarter, National Fuel built upon its positive momentum which, along with the tailwind of higher natural gas price realizations, drove a 32% increase in earnings per share over the prior year.

    “Our integrated Appalachian natural gas development program, focused on the highly prolific EDA, continues to deliver strong operational results and improving capital efficiency. Seneca’s recent well results exhibited the highest productivity we’ve seen to date, giving us further confidence in our deep, high-quality well inventory, and allowing us to increase our production guidance for fiscal 2025. On the regulated side of the business, we saw significant earnings growth during the quarter, driven by the ongoing impact of positive rate case outcomes that balance the continued investment in modernizing our infrastructure with the goal of maintaining affordable rates for our customers.

    “National Fuel’s integrated natural gas business, track record of strong operational execution, and consistent approach to managing risk, collectively position us well to navigate an uncertain global economic backdrop. As such, we remain confident in our ability to provide strong returns, achieve our long-term growth targets, and continue to deliver shareholder value.”

    RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

                   
      Three Months Ended March 31,
      (Thousands)   (Per Share)
        2025       2024       2025       2024  
    Reported GAAP Earnings $ 216,358     $ 166,272     $ 2.37     $ 1.80  
    Items impacting comparability:              
    Premiums paid on early redemption of debt (E&P / Midstream)   2,385       —       0.03       —  
    Tax impact of premiums paid on early redemption of debt   (642 )     —       (0.01 )     —  
    Unrealized (gain) loss on derivative asset (E&P)   335       (536 )     0.00       0.00  
    Tax impact of unrealized (gain) loss on derivative asset   (90 )     147       0.00       0.00  
    Unrealized (gain) loss on other investments (Corporate / All Other)   (17 )     (769 )     0.00       (0.01 )
    Tax impact of unrealized (gain) loss on other investments   4       162       0.00       0.00  
    Adjusted Operating Results $ 218,333     $ 165,276     $ 2.39     $ 1.79  

    FISCAL 2025 GUIDANCE UPDATE

    National Fuel is increasing its guidance for fiscal 2025 adjusted earnings per share, which is now expected to be within a range of $6.75 to $7.05, an increase of $0.15 at the midpoint of the Company’s prior guidance range. This updated range incorporates our second quarter results as well as higher expected production and lower unit costs in the Exploration and Production segment for the remainder of the fiscal year.

    The Company is assuming NYMEX natural gas prices will average $3.50 per MMBtu for the remaining six months of fiscal 2025 (no change from previous guidance), which approximates the current NYMEX forward curve at this time. Given the continued volatility in NYMEX natural gas prices, the Company is providing the following sensitivities to its adjusted operating results guidance range:

    NYMEX Assumption
    Remaining 6 months
    ($/MMBtu)    		 Fiscal 2025
    Adjusted Earnings
    Per Share Sensitivities
    $3.00 $6.50 – $6.80
    $3.50 $6.75 – $7.05
    $4.00 $7.05 – $7.35

    The Company’s other fiscal 2025 guidance assumptions remain largely unchanged as detailed in the table on page 7.

    FINANCING ACTIVITIES UPDATE

    In February 2025, the Company issued $1 billion of new five- and ten-year notes (split in two equal tranches) to refinance the early redemption of $950 million of notes that were scheduled to mature in July 2025 and January 2026. In addition, the Company placed $50 million (plus interest) in trust for the benefit of holders of long-term debt issued under the Company’s 1974 Indenture and scheduled to mature in June 2025. Placing these funds in trust discharged the 1974 Indenture, relieving the Company from its obligations to comply with the indenture’s covenants. In connection with these transactions, the Company recognized an after-tax loss of $1.7 million, which is presented as an item impacting comparability for the quarter.

    DISCUSSION OF SECOND QUARTER RESULTS BY SEGMENT

    The following earnings discussion of each operating segment for the quarter ended March 31, 2025 is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the six months ended March 31, 2025 are summarized on pages 10 and 11). It may be helpful to refer to those tables while reviewing this discussion.

    Note that management defines adjusted operating results as reported GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

    Upstream Business

    Exploration and Production Segment

    The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC (“Seneca”). Seneca explores for, develops and produces primarily natural gas reserves in Pennsylvania.

      Three Months Ended
      March 31,
    (in thousands)   2025       2024     Variance
    GAAP Earnings $ 97,828     $ 62,065     $ 35,763  
                           
    Premiums paid on early redemption of debt, net of tax   1,045       —       1,045  
    Unrealized (gain) loss on derivative asset (2022 CA asset sale), net of tax   245       (389 )     634  
    Adjusted Operating Results $ 99,118     $ 61,676     $ 37,442  
               
    Adjusted EBITDA $ 214,350     $ 172,068     $ 42,282  
                           

    Seneca’s second quarter GAAP earnings increased $35.8 million versus the prior year. GAAP earnings included a $1.0 million after-tax loss recognized during the quarter on the early redemption of long-term debt for Seneca’s share of premiums paid by the Company associated with its long-term debt redemptions.

    Excluding items impacting comparability, Seneca’s adjusted operating results in the second quarter increased $37.4 million primarily due to higher realized natural gas prices and natural gas production, as well as lower per unit operating expenses.

    During the second quarter, Seneca produced 105.5 Bcf of natural gas, an increase of 2.6 Bcf, or 3%, from the prior year, and 7.8 Bcf, or 8%, higher compared to the fiscal 2025 first quarter. Two highly prolific pads turned in line this year in the EDA (Tioga Utica) were the main drivers behind these increases in production.

    Seneca’s weighted average realized natural gas price, after the impact of hedging and transportation costs, was $2.94 per Mcf, an increase of $0.38 per Mcf from the prior year. This increase was primarily due to higher NYMEX prices and higher spot prices at local sales points in Pennsylvania.

      Three Months Ended
      March 31,
    (Cost per Mcf)   2025       2024     Variance
    Lease Operating and Transportation Expense (“LOE”) $ 0.67     $ 0.68     $ (0.01 )
    General and Administrative Expense (“G&A”) $ 0.18     $ 0.17     $ 0.01  
    Taxes and Other $ 0.07     $ 0.06     $ 0.01  
    Total Cash Operating Costs $ 0.92     $ 0.91     $ 0.01  
    Depreciation, Depletion and Amortization Expense (“DD&A”) $ 0.61     $ 0.71     $ (0.10 )
    Total Operating Costs $ 1.53     $ 1.62     $ (0.09 )
                           

    On a per unit basis, the second quarter total cash operating costs were up slightly compared to the prior year as other taxes increased as a result of a higher Impact Fee in Pennsylvania due to the increase in NYMEX natural gas prices. LOE included $59 million ($0.56 per Mcf), or 84% of total LOE, for gathering and compression service fees paid to the Company’s Gathering segment to connect Seneca’s production to sales points along interstate pipelines. DD&A for the quarter was $0.61 per Mcf, a decrease of $0.10 per Mcf from the prior year, largely due to ceiling test impairments recorded in prior quarters that lowered Seneca’s full cost pool depletable base.

    Midstream Businesses

    Pipeline and Storage Segment

    The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.

      Three Months Ended
      March 31,
    (in thousands)   2025       2024     Variance
    GAAP Earnings $ 31,707     $ 30,737     $ 970  
               
    Adjusted EBITDA $ 70,169     $ 70,033     $ 136  
                           

    The Pipeline and Storage segment’s second quarter GAAP earnings increased $1.0 million versus the prior year primarily due to higher operating revenues. The increase in operating revenues of $1.6 million, or 1%, was primarily attributable to an increase in Supply Corporation’s transportation and storage rates effective February 1, 2024, in accordance with its rate settlement, which was approved in fiscal 2024.

    Empire Rate Case Update

    On March 17, 2025, FERC approved an amendment to Empire’s 2019 rate case settlement, which provides for modest unit rate reductions for Empire’s transportation services. Based on current contracts, this settlement amendment is estimated to decrease Empire’s revenues on a yearly basis by approximately $0.5 million with new rates effective November 1, 2025. Under the amendment, Empire may not file a new rate case before April 30, 2027, and is required to file a rate case by May 31, 2031.

    Gathering Segment

    The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which delivers Seneca and other non-affiliated Appalachian production to the interstate pipeline system.

      Three Months Ended
      March 31,
    (in thousands)   2025       2024     Variance
    GAAP Earnings $ 26,342     $ 28,706     $ (2,364 )
    Premiums paid on early redemption of debt, net of tax   698       —       698  
    Adjusted Operating Results $ 27,040     $ 28,706     $ (1,666 )
               
    Adjusted EBITDA $ 52,748     $ 53,103     $ (355 )
                           

    The Gathering segment’s second quarter GAAP earnings decreased $2.4 million versus the prior year as higher operating revenues were more than offset by higher O&M and DD&A expense. GAAP earnings also included a $0.7 million after-tax loss recognized during the quarter on the early redemption of long-term debt for Gathering’s share of premiums paid by the Company associated with its long-term debt redemptions.

    Operating revenues increased $1.0 million, or 2%, primarily due to an increase in throughput from Seneca’s new wells in Tioga County. While O&M expense increased $1.5 million, the per unit rate of $0.09 per Mcf remained unchanged. DD&A expense increased $1.2 million primarily due to higher average depreciable plant in service compared to the prior year.

    Downstream Business

    Utility Segment

    The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution Corporation”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

      Three Months Ended
      March 31,
    (in thousands)   2025       2024     Variance
    GAAP Earnings $ 63,544     $ 44,739     $ 18,805  
               
    Adjusted EBITDA $ 95,270     $ 78,326     $ 16,944  
                           

    The Utility segment’s second quarter GAAP earnings increased $18.8 million, or 42%, primarily as a result of the implementation of the recently approved rate case settlement in the Utility’s New York jurisdiction, which became effective October 1, 2024.

    For the quarter, customer margin (operating revenues less purchased gas sold) increased $22.2 million, primarily due to the New York rate case settlement. Other income increased $10.8 million, largely due to the New York rate settlement, which required the recognition of non-service pension and post-retirement benefit income and a corresponding reduction in new base rates, resulting in no effect on net income.

    O&M expense increased by $4.2 million, primarily driven by higher personnel costs, partially offset by a reduction related to amortizations of certain regulatory assets as a result of the New York rate settlement. Further, interest expense increased $2.4 million primarily due to a higher average amount of net borrowings.

    Corporate and All Other

    The Company’s operations that are included in Corporate and All Other generated a combined net loss of $3.1 million in the current year second quarter, compared to combined earnings of less than $0.1 million in the prior year. The reduction in earnings during the second quarter was primarily driven by higher interest expense due to a higher average amount of net borrowings. A decrease in investment income on marketable securities and corporate-owned life insurance policies also contributed to the earnings reduction.

    EARNINGS TELECONFERENCE

    A conference call to discuss the results will be held on Thursday, May 1, 2025, at 9 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call will be provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay will be available following the call through the end of the day, Thursday, May 8, 2025. To access the replay, dial 1-866-813-9403 and provide Access Code 458634.

    National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.

    Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in economic conditions, including the imposition of additional tariffs on U.S. imports and related retaliatory tariffs, inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; impairments under the SEC’s full cost ceiling test for natural gas reserves; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches, including the impact of issues that may arise from the use of artificial intelligence technologies; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; the Company’s ability to complete strategic transactions; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    GUIDANCE SUMMARY
     

    As discussed on page 2, the Company is revising its adjusted earnings per share guidance for fiscal 2025. Additional details on the Company’s forecast assumptions and business segment guidance are outlined in the table below.

    The revised adjusted earnings per share guidance range excludes certain items that impacted the comparability of adjusted operating results during the six months ended March 31, 2025, including: (1) the after tax impairment of assets, which reduced earnings by $1.14 per share; (2) after-tax premiums paid on early redemptions of debt, which reduced earnings by $0.02 per share; (3) after-tax unrealized losses on a derivative asset, which reduced earnings by $0.01 per share; and (4) after-tax unrealized losses on other investments, which reduced earnings by $0.02 per share. While the Company expects to record certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the remaining six months ending September 30, 2025, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

      Previous FY 2025 Guidance   Updated FY 2025 Guidance
           
    Consolidated Adjusted Earnings per Share $6.50 to $7.00   $6.75 to $7.05
    Consolidated Effective Tax Rate ~ 25%   ~ 25%
           
    Capital Expenditures (Millions)      
    Exploration and Production $495 – $515   $495 – $515
    Pipeline and Storage $130 – $150   $130 – $150
    Gathering $95 – $110   $95 – $110
    Utility $165 – $185   $165 – $185
    Consolidated Capital Expenditures $885 – $960   $885 – $960
           
    Exploration and Production Segment Guidance      
           
    Commodity Price Assumptions (remaining six months)      
    NYMEX natural gas price $3.50 /MMBtu   $3.50 /MMBtu
    Appalachian basin spot price $2.90 /MMBtu   $2.60 /MMBtu
    Realized natural gas prices, after hedging ($/Mcf) $2.77 – $2.81   $2.72 – $2.76
           
    Production (Bcf) 410 to 425   415 to 425
           
    E&P Operating Costs($/Mcf)      
    LOE $0.68 – $0.70   $0.68 – $0.69
    G&A $0.18 – $0.19   $0.18 – $0.19
    DD&A $0.63 – $0.67   $0.63 – $0.65
           
    Other Business Segment Guidance(Millions)      
    Gathering Segment Revenues $250 – $260   $250 – $260
    Pipeline and Storage Segment Revenues $415 – $435   $415 – $435
           
    Utility Segment Guidance(Millions)      
    Customer Margin* $445 – $465   $445 – $465
    O&M Expense $240 – $250   $240 – $245
    Non-Service Pension & OPEB Income $23 – $27   $23 – $27
           
    * Customer Margin is defined as Operating Revenues less Purchased Gas Expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
    QUARTER ENDED MARCH 31, 2025
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
    (Thousands of Dollars) Production   Storage   Gathering   Utility   All Other   Consolidated*
                           
    Second quarter 2024 GAAP earnings $ 62,065     $ 30,737     $ 28,706     $ 44,739     $ 25     $ 166,272  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset   (536 )                     (536 )
    Tax impact of unrealized (gain) loss on derivative asset   147                       147  
    Unrealized (gain) loss on other investments                   (769 )     (769 )
    Tax impact of unrealized (gain) loss on other investments                   162       162  
    Second quarter 2024 adjusted operating results   61,676       30,737       28,706       44,739       (582 )     165,276  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   5,322                       5,322  
    Higher (lower) realized natural gas prices, after hedging   31,956                       31,956  
    Midstream Revenues                      
    Higher (lower) operating revenues       1,227       819               2,046  
    Downstream Margins***                      
    Impact of usage and weather               3,011           3,011  
    Impact of new rates in New York               14,577           14,577  
    Higher (lower) other operating revenues               (924 )         (924 )
    Operating Expenses                      
    Lower (higher) lease operating and transportation expenses   (1,196 )                     (1,196 )
    Lower (higher) operating expenses   (1,855 )     (1,248 )     (1,168 )     (3,330 )         (7,601 )
    Lower (higher) property, franchise and other taxes   (948 )                     (948 )
    Lower (higher) depreciation / depletion   6,973       745       (966 )     (685 )         6,067  
    Other Income (Expense)                      
    Higher (lower) other income               8,545       612       9,157  
    (Higher) lower interest expense       331       (891 )     (1,895 )     (2,902 )     (5,357 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   (2,331 )     241       463       (545 )     (159 )     (2,331 )
    All other / rounding   (479 )     (326 )     77       51       (45 )     (722 )
    Second quarter 2025 adjusted operating results   99,118       31,707       27,040       63,544       (3,076 )     218,333  
    Items impacting comparability:                      
    Premiums paid on early redemption of debt   (1,430 )         (955 )             (2,385 )
    Tax impact of premiums paid on early redemption of debt   385           257               642  
    Unrealized gain (loss) on derivative asset   (335 )                     (335 )
    Tax impact of unrealized gain (loss) on derivative asset   90                       90  
    Unrealized gain (loss) on other investments                   17       17  
    Tax impact of unrealized gain (loss) on other investments                   (4 )     (4 )
    Second quarter 2025 GAAP earnings $ 97,828     $ 31,707     $ 26,342     $ 63,544     $ (3,063 )   $ 216,358  
                           
    * Amounts do not reflect intercompany eliminations.                      
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
    QUARTER ENDED MARCH 31, 2025
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
      Production   Storage   Gathering   Utility   All Other   Consolidated*
                           
    Second quarter 2024 GAAP earnings per share $ 0.67     $ 0.33     $ 0.31     $ 0.48     $ 0.01     $ 1.80  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset, net of tax   —                       —  
    Unrealized (gain) loss on other investments, net of tax                   (0.01 )     (0.01 )
    Second quarter 2024 adjusted operating results per share   0.67       0.33       0.31       0.48       —       1.79  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   0.06                       0.06  
    Higher (lower) realized natural gas prices, after hedging   0.35                       0.35  
    Midstream Revenues                      
    Higher (lower) operating revenues       0.01       0.01               0.02  
    Downstream Margins***                      
    Impact of usage and weather               0.03           0.03  
    Impact of new rates in New York               0.16           0.16  
    Higher (lower) other operating revenues               (0.01 )         (0.01 )
    Operating Expenses                      
    Lower (higher) lease operating and transportation expenses   (0.01 )                     (0.01 )
    Lower (higher) operating expenses   (0.02 )     (0.01 )     (0.01 )     (0.04 )         (0.08 )
    Lower (higher) property, franchise and other taxes   (0.01 )                     (0.01 )
    Lower (higher) depreciation / depletion   0.09       0.01       (0.01 )     (0.01 )         0.08  
    Other Income (Expense)                      
    Higher (lower) other income               0.09       0.01       0.10  
    (Higher) lower interest expense       —       (0.01 )     (0.02 )     (0.03 )     (0.06 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   (0.03 )     —       0.01       (0.01 )     —       (0.03 )
    All other / rounding   (0.02 )     0.01       —       0.03       (0.02 )     —  
    Second quarter 2025 adjusted operating results per share   1.08       0.35       0.30       0.70       (0.04 )     2.39  
    Items impacting comparability:                      
    Premiums paid on early redemption of debt, net of tax   (0.01 )         (0.01 )             (0.02 )
    Unrealized gain (loss) on derivative asset, net of tax   —                       —  
    Unrealized gain (loss) on other investments, net of tax                   —       —  
    Second quarter 2025 GAAP earnings per share $ 1.07     $ 0.35     $ 0.29     $ 0.70     $ (0.04 )   $ 2.37  
                           
    * Amounts do not reflect intercompany eliminations.                      
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
    SIX MONTHS ENDED MARCH 31, 2025
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
    (Thousands of Dollars) Production   Storage   Gathering   Utility   All Other   Consolidated*
    Six months ended March 31, 2024 GAAP earnings $ 114,548     $ 54,792     $ 57,531     $ 71,289     $ 1,132     $ 299,292  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset   3,662                       3,662  
    Tax impact of unrealized (gain) loss on derivative asset   (1,004 )                     (1,004 )
    Unrealized (gain) loss on other investments                   (1,818 )     (1,818 )
    Tax impact of unrealized (gain) loss on other investments                   382       382  
    Six months ended March 31, 2024 adjusted operating results   117,206       54,792       57,531       71,289       (304 )     300,514  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   (817 )                     (817 )
    Higher (lower) realized natural gas prices, after hedging   33,964                       33,964  
    Midstream Revenues                      
    Higher (lower) operating revenues       10,865       (332 )             10,533  
    Downstream Margins***                      
    Impact of usage and weather               2,685           2,685  
    Impact of new rates in New York               22,442           22,442  
    Higher (lower) other operating revenues               (1,364 )         (1,364 )
    Operating Expenses                      
    Lower (higher) operating expenses   (1,742 )     (2,105 )     (1,108 )     (4,575 )         (9,530 )
    Lower (higher) property, franchise and other taxes   (746 )                     (746 )
    Lower (higher) depreciation / depletion   13,816       452       (1,802 )     (1,309 )         11,157  
    Other Income (Expense)                      
    Higher (lower) other income   (1,888 )     (603 )         11,720       2,300       11,529  
    (Higher) lower interest expense       328       (1,271 )     (3,679 )     (3,165 )     (7,787 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   (2,338 )     (246 )     905       (1,128 )     43       (2,764 )
    All other / rounding   (226 )     679       262       (38 )     (219 )     458  
    Six months ended March 31, 2025 adjusted operating results   157,229       64,162       54,185       96,043       (1,345 )     370,274  
    Items impacting comparability:                      
    Impairment of assets   (141,802 )                     (141,802 )
    Tax impact of impairment of assets   37,169                       37,169  
    Premiums paid on early redemption of debt   (1,430 )         (955 )             (2,385 )
    Tax impact of premiums paid on early redemption of debt   385           257               642  
    Unrealized gain (loss) on derivative asset   (684 )                     (684 )
    Tax impact of unrealized gain (loss) on derivative asset   184                       184  
    Unrealized gain (loss) on other investments                   (2,600 )     (2,600 )
    Tax impact of unrealized gain (loss) on other investments                   546       546  
    Six months ended March 31, 2025 GAAP earnings $ 51,051     $ 64,162     $ 53,487     $ 96,043     $ (3,399 )   $ 261,344  
                           
    * Amounts do not reflect intercompany eliminations.                      
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
    SIX MONTHS ENDED MARCH 31, 2025
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
      Production   Storage   Gathering   Utility   All Other   Consolidated*
    Six months ended March 31, 2024 GAAP earnings per share $ 1.24     $ 0.59     $ 0.62     $ 0.77     $ 0.02     $ 3.24  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset, net of tax   0.03                       0.03  
    Unrealized (gain) loss on other investments, net of tax                   (0.02 )     (0.02 )
    Six months ended March 31, 2024 adjusted operating results per share   1.27       0.59       0.62       0.77       —       3.25  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   (0.01 )                     (0.01 )
    Higher (lower) realized natural gas prices, after hedging   0.37                       0.37  
    Midstream Revenues                      
    Higher (lower) operating revenues       0.12       —               0.12  
    Downstream Margins***                      
    Impact of usage and weather               0.03           0.03  
    Impact of new rates in New York               0.25           0.25  
    Higher (lower) other operating revenues               (0.01 )         (0.01 )
    Operating Expenses                      
    Lower (higher) operating expenses   (0.02 )     (0.02 )     (0.01 )     (0.05 )         (0.10 )
    Lower (higher) property, franchise and other taxes   (0.01 )                     (0.01 )
    Lower (higher) depreciation / depletion   0.15       —       (0.02 )     (0.01 )         0.12  
    Other Income (Expense)                      
    Higher (lower) other income   (0.02 )     (0.01 )         0.13       0.03       0.13  
    (Higher) lower interest expense       —       (0.01 )     (0.04 )     (0.03 )     (0.08 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   (0.03 )     —       0.01       (0.01 )     —       (0.03 )
    All other / rounding   0.02       0.02       0.01       (0.01 )     (0.01 )     0.03  
    Six months ended March 31, 2025 adjusted operating results per share   1.72       0.70       0.60       1.05       (0.01 )     4.06  
    Items impacting comparability:                      
    Impairment of assets, net of tax   (1.14 )                     (1.14 )
    Premiums paid on early redemption of debt, net of tax   (0.01 )         (0.01 )             (0.02 )
    Unrealized gain (loss) on derivative asset, net of tax   (0.01 )                     (0.01 )
    Unrealized gain (loss) on other investments, net of tax                   (0.02 )     (0.02 )
    Rounding                   (0.01 )     (0.01 )
    Six months ended March 31, 2025 GAAP earnings per share $ 0.56     $ 0.70     $ 0.59     $ 1.05     $ (0.04 )   $ 2.86  
                           
    * Amounts do not reflect intercompany eliminations.                      
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                   
    (Thousands of Dollars, except per share amounts)              
      Three Months Ended   Six Months Ended
      March 31,   March 31,
      (Unaudited)   (Unaudited)
    SUMMARY OF OPERATIONS   2025       2024       2025       2024  
    Operating Revenues:              
    Utility Revenues $ 343,574     $ 290,198     $ 571,998     $ 492,119  
    Exploration and Production and Other Revenues   311,958       264,614       560,818       518,633  
    Pipeline and Storage and Gathering Revenues   74,418       75,127       146,616       144,549  
        729,950       629,939       1,279,432       1,155,301  
    Operating Expenses:              
    Purchased Gas   135,338       105,940       200,675       162,491  
    Operation and Maintenance:              
    Utility   63,447       59,288       118,691       112,993  
    Exploration and Production and Other   35,059       32,794       68,600       67,620  
    Pipeline and Storage and Gathering   42,363       39,340       78,304       74,303  
    Property, Franchise and Other Taxes   25,214       23,019       47,270       45,434  
    Depreciation, Depletion and Amortization   111,277       118,935       220,647       234,725  
    Impairment of Assets   —       —       141,802       —  
        412,698       379,316       875,989       697,566  
                   
    Operating Income   317,252       250,623       403,443       457,735  
                   
    Other Income (Expense):              
    Other Income (Deductions)   15,232       6,070       22,952       9,801  
    Interest Expense on Long-Term Debt   (39,662 )     (28,453 )     (73,024 )     (56,915 )
    Other Interest Expense   (5,095 )     (6,636 )     (9,476 )     (12,910 )
                   
    Income Before Income Taxes   287,727       221,604       343,895       397,711  
                   
    Income Tax Expense   71,369       55,332       82,551       98,419  
                   
    Net Income Available for Common Stock $ 216,358     $ 166,272     $ 261,344     $ 299,292  
                   
    Earnings Per Common Share              
    Basic $ 2.39     $ 1.81     $ 2.88     $ 3.25  
    Diluted $ 2.37     $ 1.80     $ 2.86     $ 3.24  
                   
    Weighted Average Common Shares:              
    Used in Basic Calculation   90,500,162       92,114,415       90,640,333       92,011,772  
    Used in Diluted Calculation   91,176,327       92,512,447       91,312,334       92,478,604  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)
       
      March 31,   September 30,
    (Thousands of Dollars)   2025       2024  
    ASSETS      
    Property, Plant and Equipment $ 14,834,817     $ 14,524,798  
    Less – Accumulated Depreciation, Depletion and Amortization   7,487,618       7,185,593  
    Net Property, Plant and Equipment   7,347,199       7,339,205  
    Current Assets:      
    Cash and Temporary Cash Investments   39,954       38,222  
    Cash Held in Trust for Bondholders   51,352       —  
    Receivables – Net   291,132       127,222  
    Unbilled Revenue   49,077       15,521  
    Gas Stored Underground   6,413       35,055  
    Materials and Supplies – at average cost   48,451       47,670  
    Unrecovered Purchased Gas Costs   3,562       —  
    Other Current Assets   78,532       92,229  
    Total Current Assets   568,473       355,919  
    Other Assets:      
    Recoverable Future Taxes   88,623       80,084  
    Unamortized Debt Expense   7,166       5,604  
    Other Regulatory Assets   118,800       108,022  
    Deferred Charges   69,572       69,662  
    Other Investments   71,958       81,705  
    Goodwill   5,476       5,476  
    Prepaid Pension and Post-Retirement Benefit Costs   194,325       180,230  
    Fair Value of Derivative Financial Instruments   45       87,905  
    Other   8,326       5,958  
    Total Other Assets   564,291       624,646  
    Total Assets $ 8,479,963     $ 8,319,770  
    CAPITALIZATION AND LIABILITIES      
    Capitalization:      
    Comprehensive Shareholders’ Equity      
    Common Stock, $1 Par Value Authorized – 200,000,000 Shares; Issued and      
    Outstanding – 90,397,698 Shares and 91,005,993 Shares, Respectively $ 90,398     $ 91,006  
    Paid in Capital   1,042,822       1,045,487  
    Earnings Reinvested in the Business   1,855,366       1,727,326  
    Accumulated Other Comprehensive Loss   (222,975 )     (15,476 )
    Total Comprehensive Shareholders’ Equity   2,765,611       2,848,343  
    Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs   2,381,126       2,188,243  
    Total Capitalization   5,146,737       5,036,586  
    Current and Accrued Liabilities:      
    Notes Payable to Banks and Commercial Paper   208,400       90,700  
    Current Portion of Long-Term Debt   350,000       500,000  
    Accounts Payable   127,611       165,068  
    Amounts Payable to Customers   34,393       42,720  
    Dividends Payable   46,555       46,872  
    Interest Payable on Long-Term Debt   19,454       27,247  
    Customer Advances   —       19,373  
    Customer Security Deposits   30,358       36,265  
    Other Accruals and Current Liabilities   184,925       162,903  
    Fair Value of Derivative Financial Instruments   201,464       4,744  
    Total Current and Accrued Liabilities   1,203,160       1,095,892  
    Other Liabilities:      
    Deferred Income Taxes   1,072,436       1,111,165  
    Taxes Refundable to Customers   302,293       305,645  
    Cost of Removal Regulatory Liability   300,256       292,477  
    Other Regulatory Liabilities   140,828       151,452  
    Other Post-Retirement Liabilities   3,404       3,511  
    Asset Retirement Obligations   193,802       203,006  
    Other Liabilities   117,047       120,036  
    Total Other Liabilities   2,130,066       2,187,292  
    Commitments and Contingencies   —       —  
    Total Capitalization and Liabilities $ 8,479,963     $ 8,319,770  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
     
      Six Months Ended
      March 31,
    (Thousands of Dollars)   2025       2024  
           
    Operating Activities:      
    Net Income Available for Common Stock $ 261,344     $ 299,292  
    Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:      
    Impairment of Assets   141,802       —  
    Depreciation, Depletion and Amortization   220,647       234,725  
    Deferred Income Taxes   25,787       65,187  
    Premiums Paid on Early Redemption of Debt   2,385       —  
    Stock-Based Compensation   10,487       10,477  
    Other   14,317       11,874  
    Change in:      
    Receivables and Unbilled Revenue   (197,553 )     (50,123 )
    Gas Stored Underground and Materials and Supplies   27,861       25,675  
    Unrecovered Purchased Gas Costs   (3,562 )     —  
    Other Current Assets   13,737       15,201  
    Accounts Payable   17,322       (15,641 )
    Amounts Payable to Customers   (8,327 )     13,327  
    Customer Advances   (19,373 )     (21,003 )
    Customer Security Deposits   (5,907 )     1,836  
    Other Accruals and Current Liabilities   21,528       26,927  
    Other Assets   (20,282 )     (22,165 )
    Other Liabilities   (28,343 )     (9,328 )
    Net Cash Provided by Operating Activities $ 473,870     $ 586,261  
           
    Investing Activities:      
    Capital Expenditures $ (434,260 )   $ (481,958 )
    Other   8,881       (1,189 )
    Net Cash Used in Investing Activities $ (425,379 )   $ (483,147 )
           
    Financing Activities:      
    Changes in Notes Payable to Banks and Commercial Paper   117,700       (8,600 )
    Shares Repurchased Under Repurchase Plan   (50,471 )     (4,230 )
    Reduction of Long-Term Debt   (954,086 )     —  
    Net Proceeds From Issuance of Long-Term Debt   989,019       —  
    Dividends Paid on Common Stock   (93,543 )     (91,048 )
    Net Repurchases of Common Stock Under Stock and Benefit Plans   (4,026 )     (3,914 )
    Net Cash Provided by (Used in) Financing Activities $ 4,593     $ (107,792 )
           
    Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash   53,084       (4,678 )
    Cash, Cash Equivalents, and Restricted Cash at Beginning of Period   38,222       55,447  
    Cash, Cash Equivalents, and Restricted Cash at March 31 $ 91,306     $ 50,769  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                       
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                       
    UPSTREAM BUSINESS
                       
      Three Months Ended   Six Months Ended
    (Thousands of Dollars, except per share amounts) March 31,   March 31,
    EXPLORATION AND PRODUCTION SEGMENT   2025       2024     Variance     2025       2024     Variance
    Total Operating Revenues $ 311,958     $ 264,614     $ 47,344     $ 560,818     $ 518,633     $ 42,185  
    Operating Expenses:                  
    Operation and Maintenance:                  
    General and Administrative Expense   18,847       17,165       1,682       38,173       34,958       3,215  
    Lease Operating and Transportation Expense   71,176       69,662       1,514       136,816       136,736       80  
    All Other Operation and Maintenance Expense   3,310       2,644       666       7,178       8,188       (1,010 )
    Property, Franchise and Other Taxes   4,275       3,075       1,200       7,657       6,713       944  
    Depreciation, Depletion and Amortization   64,622       73,448       (8,826 )     127,925       145,413       (17,488 )
    Impairment of Assets   —       —       —       141,802       —       141,802  
        162,230       165,994       (3,764 )     459,551       332,008       127,543  
                       
    Operating Income   149,728       98,620       51,108       101,267       186,625       (85,358 )
                       
    Other Income (Expense):                  
    Non-Service Pension and Post-Retirement Benefit Credit   37       100       (63 )     74       201       (127 )
    Interest and Other Income (Deductions)   101       1,170       (1,069 )     373       (342 )     715  
    Interest Expense on Long-Term Debt   (1,949 )     —       (1,949 )     (1,949 )     —       (1,949 )
    Other Interest Expense   (15,091 )     (15,108 )     17       (30,291 )     (30,377 )     86  
    Income Before Income Taxes   132,826       84,782       48,044       69,474       156,107       (86,633 )
    Income Tax Expense   34,998       22,717       12,281       18,423       41,559       (23,136 )
    Net Income $ 97,828     $ 62,065     $ 35,763     $ 51,051     $ 114,548     $ (63,497 )
    Net Income Per Share (Diluted) $ 1.07     $ 0.67     $ 0.40     $ 0.56     $ 1.24     $ (0.68 )
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                       
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                       
    MIDSTREAM BUSINESSES
                       
      Three Months Ended   Six Months Ended
    (Thousands of Dollars, except per share amounts) March 31,   March 31,
    PIPELINE AND STORAGE SEGMENT   2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers $ 71,185     $ 71,210     $ (25 )   $ 139,935     $ 136,036     $ 3,899  
    Intersegment Revenues   38,388       36,810       1,578       76,251       66,397       9,854  
    Total Operating Revenues   109,573       108,020       1,553       216,186       202,433       13,753  
    Operating Expenses:                  
    Purchased Gas   162       325       (163 )     121       926       (805 )
    Operation and Maintenance   30,642       29,062       1,580       57,677       55,013       2,664  
    Property, Franchise and Other Taxes   8,600       8,600       —       17,266       17,320       (54 )
    Depreciation, Depletion and Amortization   18,547       19,490       (943 )     37,132       37,704       (572 )
        57,951       57,477       474       112,196       110,963       1,233  
                       
    Operating Income   51,622       50,543       1,079       103,990       91,470       12,520  
                       
    Other Income (Expense):                  
    Non-Service Pension and Post-Retirement Benefit Credit   952       1,257       (305 )     1,905       2,515       (610 )
    Interest and Other Income   1,794       2,046       (252 )     3,833       3,978       (145 )
    Interest Expense   (11,700 )     (12,119 )     419       (23,428 )     (23,843 )     415  
    Income Before Income Taxes   42,668       41,727       941       86,300       74,120       12,180  
    Income Tax Expense   10,961       10,990       (29 )     22,138       19,328       2,810  
    Net Income $ 31,707     $ 30,737     $ 970     $ 64,162     $ 54,792     $ 9,370  
    Net Income Per Share (Diluted) $ 0.35     $ 0.33     $ 0.02     $ 0.70     $ 0.59     $ 0.11  
                       
                       
      Three Months Ended   Six Months Ended
      March 31,   March 31,
    GATHERING SEGMENT   2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers $ 3,233     $ 3,917     $ (684 )   $ 6,681     $ 8,513     $ (1,832 )
    Intersegment Revenues   61,797       60,076       1,721       119,480       118,068       1,412  
    Total Operating Revenues   65,030       63,993       1,037       126,161       126,581       (420 )
    Operating Expenses:                  
    Operation and Maintenance   12,275       10,796       1,479       21,703       20,300       1,403  
    Property, Franchise and Other Taxes   7       94       (87 )     (227 )     117       (344 )
    Depreciation, Depletion and Amortization   10,834       9,611       1,223       21,349       19,068       2,281  
        23,116       20,501       2,615       42,825       39,485       3,340  
                       
    Operating Income   41,914       43,492       (1,578 )     83,336       87,096       (3,760 )
                       
    Other Income (Expense):                  
    Non-Service Pension and Post-Retirement Benefit Credit (Costs)   —       9       (9 )     (1 )     19       (20 )
    Interest and Other Income   93       72       21       152       143       9  
    Interest Expense on Long-Term Debt   (1,334 )     —       (1,334 )     (1,334 )     —       (1,334 )
    Other Interest Expense   (4,450 )     (3,701 )     (749 )     (8,661 )     (7,431 )     (1,230 )
    Income Before Income Taxes   36,223       39,872       (3,649 )     73,492       79,827       (6,335 )
    Income Tax Expense   9,881       11,166       (1,285 )     20,005       22,296       (2,291 )
    Net Income $ 26,342     $ 28,706     $ (2,364 )   $ 53,487     $ 57,531     $ (4,044 )
    Net Income Per Share (Diluted) $ 0.29     $ 0.31     $ (0.02 )   $ 0.59     $ 0.62     $ (0.03 )
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                       
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                       
    DOWNSTREAM BUSINESS
                       
      Three Months Ended   Six Months Ended
    (Thousands of Dollars, except per share amounts) March 31,   March 31,
    UTILITY SEGMENT   2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers $ 343,574     $ 290,198     $ 53,376     $ 571,998     $ 492,119     $ 79,879  
    Intersegment Revenues   119       306       (187 )     203       393       (190 )
    Total Operating Revenues   343,693       290,504       53,189       572,201       492,512       79,689  
    Operating Expenses:                  
    Purchased Gas   171,777       140,836       30,941       273,249       224,886       48,363  
    Operation and Maintenance   64,444       60,229       4,215       120,704       114,913       5,791  
    Property, Franchise and Other Taxes   12,202       11,113       1,089       22,313       21,019       1,294  
    Depreciation, Depletion and Amortization   17,135       16,268       867       33,962       32,305       1,657  
        265,558       228,446       37,112       450,228       393,123       57,105  
                       
    Operating Income   78,135       62,058       16,077       121,973       99,389       22,584  
                       
    Other Income (Expense):                  
    Non-Service Pension and Post-Retirement Benefit Credit   12,299       857       11,442       18,170       1,327       16,843  
    Interest and Other Income   714       1,340       (626 )     1,242       3,250       (2,008 )
    Interest Expense   (10,927 )     (8,528 )     (2,399 )     (21,643 )     (16,986 )     (4,657 )
    Income Before Income Taxes   80,221       55,727       24,494       119,742       86,980       32,762  
    Income Tax Expense   16,677       10,988       5,689       23,699       15,691       8,008  
    Net Income $ 63,544     $ 44,739     $ 18,805     $ 96,043     $ 71,289     $ 24,754  
    Net Income Per Share (Diluted) $ 0.70     $ 0.48     $ 0.22     $ 1.05     $ 0.77     $ 0.28  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
     
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                       
      Three Months Ended   Six Months Ended
    (Thousands of Dollars, except per share amounts) March 31,   March 31,
    ALL OTHER   2025       2024     Variance     2025       2024     Variance
    Total Operating Revenues $ —     $ —     $ —     $ —     $ —     $ —  
    Operating Expenses:                  
    Operation and Maintenance   —       —       —       —       —       —  
        —       —       —       —       —       —  
                       
    Operating Income   —       —       —       —       —       —  
    Other Income (Expense):                  
    Interest and Other Income (Deductions)   (222 )     (41 )     (181 )     (358 )     (119 )     (239 )
    Interest Expense   (131 )     (84 )     (47 )     (248 )     (165 )     (83 )
    Loss before Income Taxes   (353 )     (125 )     (228 )     (606 )     (284 )     (322 )
    Income Tax Benefit   (82 )     (29 )     (53 )     (141 )     (67 )     (74 )
    Net Loss $ (271 )   $ (96 )   $ (175 )   $ (465 )   $ (217 )   $ (248 )
    Net Loss Per Share (Diluted) $ —     $ —     $ —     $ (0.01 )   $ —     $ (0.01 )
               
      Three Months Ended   Six Months Ended
      March 31,   March 31,
    CORPORATE   2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers $ —     $ —     $ —     $ —     $ —     $ —  
    Intersegment Revenues   1,341       1,286       55       2,683       2,571       112  
    Total Operating Revenues   1,341       1,286       55       2,683       2,571       112  
    Operating Expenses:                  
    Operation and Maintenance   5,219       5,121       98       9,266       8,916       350  
    Property, Franchise and Other Taxes   130       137       (7 )     261       265       (4 )
    Depreciation, Depletion and Amortization   139       118       21       279       235       44  
        5,488       5,376       112       9,806       9,416       390  
                       
    Operating Loss   (4,147 )     (4,090 )     (57 )     (7,123 )     (6,845 )     (278 )
    Other Income (Expense):                  
    Non-Service Pension and Post-Retirement Benefit Costs   (212 )     (387 )     175       (423 )     (774 )     351  
    Interest and Other Income   41,785       40,234       1,551       82,846       81,262       1,584  
    Interest Expense on Long-Term Debt   (36,379 )     (28,453 )     (7,926 )     (69,741 )     (56,915 )     (12,826 )
    Other Interest Expense   (4,905 )     (7,683 )     2,778       (10,066 )     (15,767 )     5,701  
    Income (Loss) before Income Taxes   (3,858 )     (379 )     (3,479 )     (4,507 )     961       (5,468 )
    Income Tax Benefit   (1,066 )     (500 )     (566 )     (1,573 )     (388 )     (1,185 )
    Net Income (Loss) $ (2,792 )   $ 121     $ (2,913 )   $ (2,934 )   $ 1,349     $ (4,283 )
    Net Income (Loss) Per Share (Diluted) $ (0.04 )   $ 0.01     $ (0.05 )   $ (0.03 )   $ 0.02     $ (0.05 )
                       
                       
      Three Months Ended   Six Months Ended
      March 31,   March 31,
    INTERSEGMENT ELIMINATIONS   2025       2024     Variance     2025       2024     Variance
    Intersegment Revenues $ (101,645 )   $ (98,478 )   $ (3,167 )   $ (198,617 )   $ (187,429 )   $ (11,188 )
    Operating Expenses:                  
    Purchased Gas   (36,601 )     (35,221 )     (1,380 )     (72,695 )     (63,321 )     (9,374 )
    Operation and Maintenance   (65,044 )     (63,257 )     (1,787 )     (125,922 )     (124,108 )     (1,814 )
        (101,645 )     (98,478 )     (3,167 )     (198,617 )     (187,429 )     (11,188 )
    Operating Income   —       —       —       —       —       —  
    Other Income (Expense):                  
    Interest and Other Deductions   (42,109 )     (40,587 )     (1,522 )     (84,861 )     (81,659 )     (3,202 )
    Interest Expense   42,109       40,587       1,522       84,861       81,659       3,202  
    Net Income $ —     $ —     $ —     $ —     $ —     $ —  
    Net Income Per Share (Diluted) $ —     $ —     $ —     $ —     $ —     $ —  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
     
    SEGMENT INFORMATION (Continued)
    (Thousands of Dollars)
                           
      Three Months Ended   Six Months Ended
      March 31,   March 31,
      (Unaudited)   (Unaudited)
              Increase           Increase
        2025       2024     (Decrease)     2025       2024     (Decrease)
                           
    Capital Expenditures:                      
    Exploration and Production $ 108,384   (1) $ 124,184   (3) $ (15,800 )   $ 230,986   (1)(2) $ 285,141   (3)(4) $ (54,155 )
    Pipeline and Storage   15,626   (1)   18,025   (3)   (2,399 )     35,417   (1)(2)   42,579   (3)(4)   (7,162 )
    Gathering   18,499   (1)   19,949   (3)   (1,450 )     31,526   (1)(2)   39,518   (3)(4)   (7,992 )
    Utility   41,867   (1)   37,741   (3)   4,126       78,298   (1)(2)   68,251   (3)(4)   10,047  
    Total Reportable Segments   184,376       199,899       (15,523 )     376,227       435,489       (59,262 )
    All Other   —       —       —       —       —       —  
    Corporate   174       121       53       378       182       196  
    Eliminations   (3,520 )     —       (3,520 )     (3,520 )     —       (3,520 )
    Total Capital Expenditures $ 181,030     $ 200,020     $ (18,990 )   $ 373,085     $ 435,671     $ (62,586 )
    (1)   Capital expenditures for the quarter and six months ended March 31, 2025, include accounts payable and accrued liabilities related to capital expenditures of $44.8 million, $2.4 million, $6.8 million, and $4.8 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2025, since they represent non-cash investing activities at that date.
    (2)   Capital expenditures for the six months ended March 31, 2025, exclude capital expenditures of $63.3 million, $14.4 million, $21.7 million and $20.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2024 and paid during the six months ended March 31, 2025. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2024, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2025.
    (3)   Capital expenditures for the quarter and six months ended March 31, 2024, include accounts payable and accrued liabilities related to capital expenditures of $44.4 million, $5.0 million, $5.5 million, and $8.0 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were excluded from the Consolidated Statement of Cash Flows at March 31, 2024, since they represented non-cash investing activities at that date.
    (4)   Capital expenditures for the six months ended March 31, 2024, exclude capital expenditures of $43.2 million, $31.8 million, $20.6 million and $13.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2023 and paid during the six months ended March 31, 2024. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2023, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2024.
         
    DEGREE DAYS                                  
                              Percent Colder
                              (Warmer) Than:
    Three Months Ended March 31,   Normal       2025       2024     Normal(1)     Last Year(1)  
    Buffalo, NY(2)   3,226       3,116       2,705       (3.4 )     15.2  
    Erie, PA   3,023       3,017       2,576       (0.2 )     17.1  
                                       
    Six Months Ended March 31,                                  
    Buffalo, NY(2)   5,352       5,000       4,563       (6.6 )     9.6  
    Erie, PA   4,917       4,714       4,240       (4.1 )     11.2  
                                       
    (1)   Percents compare actual 2025 degree days to normal degree days and actual 2025 degree days to actual 2024 degree days.
    (2)   Normal degree days changed from NOAA 30-year degree days to NOAA 15-year degree days with the implementation of new base rates in New York effective October 2024.
         
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                           
    EXPLORATION AND PRODUCTION INFORMATION
                           
      Three Months Ended   Six Months Ended
      March 31,   March 31,
              Increase           Increase
        2025       2024     (Decrease)     2025       2024     (Decrease)
                           
    Gas Production/Prices:                      
    Production (MMcf)                      
    Appalachia   105,514       102,883       2,631       203,232       203,640       (408 )
                           
    Average Prices (Per Mcf)                      
    Weighted Average $ 3.02     $ 1.98     $ 1.04     $ 2.64     $ 2.14     $ 0.50  
    Weighted Average after Hedging $ 2.94     $ 2.56     $ 0.38     $ 2.74     $ 2.53     $ 0.21  
                           
    Selected Operating Performance Statistics:                      
    General and Administrative Expense per Mcf(1) $ 0.18     $ 0.17     $ 0.01     $ 0.19     $ 0.17     $ 0.02  
    Lease Operating and Transportation Expense per Mcf(1)(2) $ 0.67     $ 0.68     $ (0.01 )   $ 0.67     $ 0.67     $ —  
    Depreciation, Depletion and Amortization per Mcf(1) $ 0.61     $ 0.71     $ (0.10 )   $ 0.63     $ 0.71     $ (0.08 )
                           
    (1)   Refer to page 15 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.
    (2)   Amounts include transportation expense of $0.57 per Mcf for the three months ended March 31, 2025 and March 31, 2024. Amounts include transportation expense of $0.57 per Mcf for the six months ended March 31, 2025 and March 31, 2024.
         
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
     
    Pipeline and Storage Throughput – (millions of cubic feet – MMcf)            
                                           
      Three Months Ended   Six Months Ended
      March 31,   March 31,
                      Increase                   Increase
        2025       2024     (Decrease)     2025       2024     (Decrease)
    Firm Transportation – Affiliated   49,240       42,561       6,679       81,110       74,056       7,054  
    Firm Transportation – Non-Affiliated   185,490       179,697       5,793       356,502       348,303       8,199  
    Interruptible Transportation   454       1,271       (817 )     515       1,389       (874 )
        235,184       223,529       11,655       438,127       423,748       14,379  
                                           
    Gathering Volume – (MMcf)                                      
      Three Months Ended   Six Months Ended
      March 31,   March 31,
                      Increase                   Increase
        2025       2024     (Decrease)     2025       2024     (Decrease)
    Gathered Volume   129,771       125,565       4,206       250,732       249,388       1,344  
                                           
                                           
    Utility Throughput – (MMcf)                                      
      Three Months Ended   Six Months Ended
      March 31,   March 31,
                      Increase                   Increase
        2025       2024     (Decrease)     2025       2024     (Decrease)
    Retail Sales:                                      
    Residential Sales   32,111       27,063       5,048       50,587       45,045       5,542  
    Commercial Sales   5,420       4,293       1,127       8,339       7,093       1,246  
    Industrial Sales   302       190       112       501       327       174  
        37,833       31,546       6,287       59,427       52,465       6,962  
    Transportation   25,086       22,637       2,449       42,028       40,166       1,862  
        62,919       54,183       8,736       101,455       92,631       8,824  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES
     

    In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding adjusted operating results, adjusted EBITDA and free cash flow, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company’s ongoing operating results or liquidity and for comparing the Company’s financial performance to other companies. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.

    Management defines adjusted operating results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel’s reported GAAP earnings to adjusted operating results for the three and six months ended March 31, 2025 and 2024:

      Three Months Ended   Six Months Ended
      March 31,   March 31,
    (in thousands except per share amounts)   2025       2024       2025       2024  
    Reported GAAP Earnings $ 216,358     $ 166,272     $ 261,344     $ 299,292  
    Items impacting comparability:              
    Impairment of assets (E&P)   —       —       141,802       —  
    Tax impact of impairment of assets   —       —       (37,169 )     —  
    Premiums paid on early redemption of debt (E&P / Midstream)   2,385       —       2,385       —  
    Tax impact of premiums paid on early redemption of debt   (642 )     —       (642 )     —  
    Unrealized (gain) loss on derivative asset (E&P)   335       (536 )     684       3,662  
    Tax impact of unrealized (gain) loss on derivative asset   (90 )     147       (184 )     (1,004 )
    Unrealized (gain) loss on other investments (Corporate / All Other)   (17 )     (769 )     2,600       (1,818 )
    Tax impact of unrealized (gain) loss on other investments   4       162       (546 )     382  
    Adjusted Operating Results $ 218,333     $ 165,276     $ 370,274     $ 300,514  
                   
    Reported GAAP Earnings Per Share $ 2.37     $ 1.80     $ 2.86     $ 3.24  
    Items impacting comparability:              
    Impairment of assets, net of tax (E&P)   —       —       1.14       —  
    Premiums paid on early redemption of debt, net of tax (E&P / Midstream)   0.02       —       0.02       —  
    Unrealized (gain) loss on derivative asset, net of tax (E&P)   —       —       0.01       0.03  
    Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)   —       (0.01 )     0.02       (0.02 )
    Rounding   —       —       0.01       —  
    Adjusted Operating Results Per Share $ 2.39     $ 1.79     $ 4.06     $ 3.25  
     

    Management defines adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel’s reported GAAP earnings to adjusted EBITDA for the three and six months ended March 31, 2025 and 2024:

      Three Months Ended   Six Months Ended
      March 31,   March 31,
    (in thousands)   2025       2024       2025       2024  
    Reported GAAP Earnings $ 216,358     $ 166,272     $ 261,344     $ 299,292  
    Depreciation, Depletion and Amortization   111,277       118,935       220,647       234,725  
    Other (Income) Deductions   (15,232 )     (6,070 )     (22,952 )     (9,801 )
    Interest Expense   44,757       35,089       82,500       69,825  
    Income Taxes   71,369       55,332       82,551       98,419  
    Impairment of Assets   —       —       141,802       —  
    Adjusted EBITDA $ 428,529     $ 369,558     $ 765,892     $ 692,460  
                   
    Adjusted EBITDA by Segment              
    Pipeline and Storage Adjusted EBITDA $ 70,169     $ 70,033     $ 141,122     $ 129,174  
    Gathering Adjusted EBITDA   52,748       53,103       104,685       106,164  
    Total Midstream Businesses Adjusted EBITDA   122,917       123,136       245,807       235,338  
    Exploration and Production Adjusted EBITDA   214,350       172,068       370,994       332,038  
    Utility Adjusted EBITDA   95,270       78,326       155,935       131,694  
    Corporate and All Other Adjusted EBITDA   (4,008 )     (3,972 )     (6,844 )     (6,610 )
    Total Adjusted EBITDA $ 428,529     $ 369,558     $ 765,892     $ 692,460  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES
    SEGMENT ADJUSTED EBITDA
     
      Three Months Ended   Six Months Ended
      March 31,   March 31,
    (in thousands)   2025       2024       2025       2024  
    Exploration and Production Segment              
    Reported GAAP Earnings $ 97,828     $ 62,065     $ 51,051     $ 114,548  
    Depreciation, Depletion and Amortization   64,622       73,448       127,925       145,413  
    Other (Income) Deductions   (138 )     (1,270 )     (447 )     141  
    Interest Expense   17,040       15,108       32,240       30,377  
    Income Taxes   34,998       22,717       18,423       41,559  
    Impairment of Assets   —       —       141,802       —  
    Adjusted EBITDA $ 214,350     $ 172,068     $ 370,994     $ 332,038  
                   
    Pipeline and Storage Segment              
    Reported GAAP Earnings $ 31,707     $ 30,737     $ 64,162     $ 54,792  
    Depreciation, Depletion and Amortization   18,547       19,490       37,132       37,704  
    Other (Income) Deductions   (2,746 )     (3,303 )     (5,738 )     (6,493 )
    Interest Expense   11,700       12,119       23,428       23,843  
    Income Taxes   10,961       10,990       22,138       19,328  
    Adjusted EBITDA $ 70,169     $ 70,033     $ 141,122     $ 129,174  
                   
    Gathering Segment              
    Reported GAAP Earnings $ 26,342     $ 28,706     $ 53,487     $ 57,531  
    Depreciation, Depletion and Amortization   10,834       9,611       21,349       19,068  
    Other (Income) Deductions   (93 )     (81 )     (151 )     (162 )
    Interest Expense   5,784       3,701       9,995       7,431  
    Income Taxes   9,881       11,166       20,005       22,296  
    Adjusted EBITDA $ 52,748     $ 53,103     $ 104,685     $ 106,164  
                   
    Utility Segment              
    Reported GAAP Earnings $ 63,544     $ 44,739     $ 96,043     $ 71,289  
    Depreciation, Depletion and Amortization   17,135       16,268       33,962       32,305  
    Other (Income) Deductions   (13,013 )     (2,197 )     (19,412 )     (4,577 )
    Interest Expense   10,927       8,528       21,643       16,986  
    Income Taxes   16,677       10,988       23,699       15,691  
    Adjusted EBITDA $ 95,270     $ 78,326     $ 155,935     $ 131,694  
                   
    Corporate and All Other              
    Reported GAAP Earnings $ (3,063 )   $ 25     $ (3,399 )   $ 1,132  
    Depreciation, Depletion and Amortization   139       118       279       235  
    Other (Income) Deductions   758       781       2,796       1,290  
    Interest Expense   (694 )     (4,367 )     (4,806 )     (8,812 )
    Income Taxes   (1,148 )     (529 )     (1,714 )     (455 )
    Adjusted EBITDA $ (4,008 )   $ (3,972 )   $ (6,844 )   $ (6,610 )
     

    Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. The Company is unable to provide a reconciliation of any projected free cash flow measure to its comparable GAAP financial measure without unreasonable efforts. This is due to an inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.

    The MIL Network –

  • MIL-OSI: XRP News: Buy XDX Token As XenDex Fills Its Soft Cap Ahead of Exchange Listing

    Source: GlobeNewswire (MIL-OSI)

    SYDNEY, April 30, 2025 (GLOBE NEWSWIRE) — XenDex has officially filled its presale soft cap, and the clock is now ticking for those who still want in. As the crypto world celebrates Brazil’s first XRP Spot ETF, the SEC’s lawsuit against Ripple gets withdrawn, and ProShares’ XRP Futures ETF receives approval, XRP sentiment has never been stronger, and XenDex is right at the heart of it.

    With the presale now entering its final stretch, the price of $XDX is getting higher, and with token supply shrinking fast, many believe this is the last chance to buy before full sellout and major listings go live.

    Buy $XDX Now Before Presale Ends

    XenDex Is Listing on Top Exchanges Soon

    Following the presale, $XDX will be listed on major centralized exchanges, opening the door to global access and deep liquidity. Confirmed exchange partners include:

    • Binance
    • Gate.io
    • BitMart
    • MEXC
    • FirstLedger
    • MagneticX

    These listings are expected to significantly drive up demand, making current entry points even more valuable.

    Buy Before It Sells Out Completely: https://xendex.net/presale

    Why $XDX Is In High Demand

    XenDex is solving some of XRPL’s biggest gaps by delivering a first-of-its-kind decentralized exchange with:

    • AI-Powered Copy Trading – Mirror the trades of top-performing investors
    • Non-Custodial Lending & Borrowing – Borrow and lend XRP and XDX tokens to earn rewards
    • Cross-Chain Trading – Swap XRP tokens across chains like Solana and BNB
    • Staking and Yield Farming – Earn rewards by supplying liquidity to our liquidity pool
    • DAO Governance – Use $XDX to vote on new features, upgrades, and token listings

    Buy $XDX Now & Earn Rewards

    Thousands of XRP holders have already joined XenDex’s Telegram and Twitter communities. Now that the soft cap is filled, attention is turning to the final phase of the presale, and tokens are vanishing quickly.

    “We’ve passed our soft cap, locked in listings, and entered our final presale pricing. The next step is sellout,” said a XenDex spokesperson. “Those who wait will pay more, if there’s even any left to buy.”

    Final Opportunity Before Full Sellout

    With listings locked in, token supply diminishing, and price pressure mounting, now is the moment to act. Every minute you wait could mean paying more, or missing out completely.

    Visit Official XenDex Links

    Website: https://xendex.net
    Presale: https://xendex.net/presale
    Telegram: https://t.me/xendexcommunity
    Twitter/X: https://x.com/xendex_xrp
    Docs: https://xdxdocs.gitbook.io

    Contact:
    Frank Richards
    Frank@xendex.net

    Disclaimer: This is a paid post provided by XenDex. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. We do not guarantee any claims, statements, or promises made in this article. This content is for informational purposes only and should not be considered financial, investment, or trading advice. Investing in crypto and mining-related opportunities involves significant risks, including the potential loss of capital. It is possible to lose all your capital. These products may not be suitable for everyone, and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. However, due to the inherently speculative nature of the blockchain sector—including cryptocurrency, NFTs, and mining—complete accuracy cannot always be guaranteed. Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press release. In the event of any legal claims or charges against this article, we accept no liability or responsibility. Globenewswire does not endorse any content on this page.

    Legal Disclaimer: This media platform provides the content of this article on an “as-is” basis, without any warranties or representations of any kind, express or implied. We assume no responsibility for any inaccuracies, errors, or omissions. We do not assume any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information presented herein. Any concerns, complaints, or copyright issues related to this article should be directed to the content provider mentioned above.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/91d8ec49-9b74-4631-a137-5362249fa888

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    First Quarter Results

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

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

    Review and Outlook

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

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

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

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

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

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

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

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

    Financial Review

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

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

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

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

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

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

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

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

    Liquidity and Capital Expenditures

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

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

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

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

    Conference Call

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

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

    About NCS Multistage Holdings, Inc.

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

    Forward Looking Statements

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

    Contact

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

       
    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)    		  
       
        Three Months Ended  
        March 31,  
        2025     2024  
    Revenues                
    Product sales   $ 35,066     $ 31,758  
    Services     14,939       12,100  
    Total revenues     50,005       43,858  
    Cost of sales                
    Cost of product sales, exclusive of depreciation and amortization expense shown below     20,352       19,692  
    Cost of services, exclusive of depreciation and amortization expense shown below     7,798       6,595  
    Total cost of sales, exclusive of depreciation and amortization expense shown below     28,150       26,287  
    Selling, general and administrative expenses     16,195       13,830  
    Depreciation     1,204       1,073  
    Amortization     167       167  
    Income from operations     4,289       2,501  
    Other income (expense)                
    Interest expense, net     (42 )     (100 )
    Other income, net     883       1,137  
    Foreign currency exchange loss, net     (3 )     (498 )
    Total other income     838       539  
    Income before income tax     5,127       3,040  
    Income tax expense     673       487  
    Net income     4,454       2,553  
    Net income attributable to non-controlling interest     398       483  
    Net income attributable to NCS Multistage Holdings, Inc.   $ 4,056     $ 2,070  
    Earnings per common share                
    Basic earnings per common share attributable to NCS Multistage Holdings, Inc.   $ 1.58     $ 0.83  
    Diluted earnings per common share attributable to NCS Multistage Holdings, Inc.   $ 1.51     $ 0.82  
    Weighted average common shares outstanding                
    Basic     2,568       2,508  
    Diluted     2,686       2,539  
       
    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands, except share data)
    (Unaudited)    		  
                 
        March 31,     December 31,  
        2025     2024  
    Assets                
    Current assets                
    Cash and cash equivalents   $ 22,997     $ 25,880  
    Accounts receivable—trade, net     38,403       31,513  
    Inventories, net     40,756       40,971  
    Prepaid expenses and other current assets     1,852       2,063  
    Other current receivables     5,033       5,143  
    Total current assets     109,041       105,570  
    Noncurrent assets                
    Property and equipment, net     20,477       21,283  
    Goodwill     15,222       15,222  
    Identifiable intangibles, net     3,523       3,690  
    Operating lease assets     5,773       5,911  
    Deposits and other assets     660       712  
    Deferred income taxes, net     422       424  
    Total noncurrent assets     46,077       47,242  
    Total assets   $ 155,118     $ 152,812  
    Liabilities and Stockholders’ Equity                
    Current liabilities                
    Accounts payable—trade   $ 11,751     $ 8,970  
    Accrued expenses     5,348       8,351  
    Income taxes payable     1,103       683  
    Operating lease liabilities     1,676       1,602  
    Current maturities of long-term debt     2,250       2,141  
    Other current liabilities     1,737       3,672  
    Total current liabilities     23,865       25,419  
    Noncurrent liabilities                
    Long-term debt, less current maturities     5,370       6,001  
    Operating lease liabilities, long-term     4,662       4,891  
    Other long-term liabilities     207       206  
    Deferred income taxes, net     178       186  
    Total noncurrent liabilities     10,417       11,284  
    Total liabilities     34,282       36,703  
    Commitments and contingencies                
    Stockholders’ equity                
    Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding at March 31, 2025 and December 31, 2024     —       —  
    Common stock, $0.01 par value, 11,250,000 shares authorized, 2,607,362 shares issued and 2,540,849 shares outstanding at March 31, 2025 and 2,563,979 shares issued and 2,507,430 shares outstanding at December 31, 2024     26       26  
    Additional paid-in capital     447,936       447,384  
    Accumulated other comprehensive loss     (87,615 )     (87,604 )
    Retained deficit     (254,968 )     (259,024 )
    Treasury stock, at cost, 66,513 shares at March 31, 2025 and 56,549 shares at December 31, 2024     (2,211 )     (1,943 )
    Total stockholders’ equity     103,168       98,839  
    Non-controlling interest     17,668       17,270  
    Total equity     120,836       116,109  
    Total liabilities and stockholders’ equity   $ 155,118     $ 152,812  
       
    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)    		  
       
      Three Months Ended  
      March 31,  
      2025   2024  
    Cash flows from operating activities            
    Net income $ 4,454   $ 2,553  
    Adjustments to reconcile net income to net cash used in operating activities:            
    Depreciation and amortization   1,371     1,240  
    Amortization of deferred loan costs   52     51  
    Share-based compensation   1,445     902  
    Provision for inventory obsolescence   (35 )   316  
    Deferred income tax expense   1     5  
    Gain on sale of property and equipment   (36 )   (172 )
    Provision for credit losses   42     —  
    Net foreign currency unrealized loss (gain)   (849 )   373  
    Proceeds from note receivable   —     61  
    Changes in operating assets and liabilities:            
    Accounts receivable—trade   (6,978 )   (10,282 )
    Inventories, net   200     1,521  
    Prepaid expenses and other assets   890     29  
    Accounts payable—trade   3,742     2,355  
    Accrued expenses   (3,003 )   130  
    Other liabilities   (3,273 )   (1,339 )
    Income taxes receivable/payable   332     377  
    Net cash used in operating activities   (1,645 )   (1,880 )
    Cash flows from investing activities            
    Purchases of property and equipment   (464 )   (299 )
    Purchase and development of software and technology   —     (13 )
    Proceeds from sales of property and equipment   13     176  
    Net cash used in investing activities   (451 )   (136 )
    Cash flows from financing activities            
    Payments on finance leases   (522 )   (449 )
    Line of credit borrowings   1,963     1,158  
    Payments of line of credit borrowings   (1,963 )   (602 )
    Treasury shares withheld   (268 )   (237 )
    Distribution to noncontrolling interest   —     (500 )
    Net cash used in financing activities   (790 )   (630 )
    Effect of exchange rate changes on cash and cash equivalents   3     (70 )
    Net change in cash and cash equivalents   (2,883 )   (2,716 )
    Cash and cash equivalents beginning of period   25,880     16,720  
    Cash and cash equivalents end of period $ 22,997   $ 14,004  
    Noncash investing and financing activities            
    Assets obtained in exchange for new finance lease liabilities $ —   $ 696  
    Assets obtained in exchange for new operating lease liabilities $ 244   $ —  
    NCS MULTISTAGE HOLDINGS, INC.
    REVENUES BY GEOGRAPHIC AREA
    (In thousands)
    (Unaudited)    		  
       
        Three Months Ended  
        March 31,  
        2025     2024  
    United States                
    Product sales   $ 6,867     $ 7,767  
    Services     2,505       2,244  
    Total United States     9,372       10,011  
    Canada                
    Product sales     26,843       22,675  
    Services     10,875       8,994  
    Total Canada     37,718       31,669  
    Other Countries                
    Product sales     1,356       1,316  
    Services     1,559       862  
    Total other countries     2,915       2,178  
    Total                
    Product sales     35,066       31,758  
    Services     14,939       12,100  
    Total revenues   $ 50,005     $ 43,858  

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

    Non-GAAP Financial Measures 

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

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

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

    NET WORKING CAPITAL

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

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

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

    ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN

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

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

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

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

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

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

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

    ___________________

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

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

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

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

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

    The MIL Network –

  • MIL-OSI: Repeat: Admirals Group AS audited annual report 2024

    Source: GlobeNewswire (MIL-OSI)

    Admirals Group AS audited annual report 2024

    Despite lower client activity, Admirals Group AS delivered resilient trading income and positive EBITDA through effective cost control measures.

    • The Group’s net trading income decreased by 6% to EUR 38.4 million (2023: EUR 40.9 million), being supported by higher volatility on the financial markets.

    • The Group’s total operating expenses decreased by 16% to EUR 42.4 million (2023: EUR 50.3 million) as a result of cost optimisation efforts.

    • EBITDA was EUR 0.9 million (2023: EUR -6.5 million).

    • Net loss was EUR -1.6 million (2023: EUR -9.7 million).

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

    Statement of Financial Position

    (in thousands of euros) 31.12.2024 31.12.2023
    Assets    
    Cash and cash equivalents 41,607 41,025
    Due from investment companies 18,736 18,961
    Financial assets at fair value through profit or loss 1,228 5,062
    Loans and receivables 8,315 4,772
    Inventories 665 311
    Other assets 2,092 2,137
    Tangible fixed assets 1,359 1,950
    Right-of-use assets 2,541 2,603
    Intangible assets 3,304 5,147
    Total assets 79,847 81,968
         
    Liabilities    
    Financial liabilities at fair value through profit or loss 334 224
    Liabilities and accruals 3,326 4,318
    Deferred tax liability 0 1
    Subordinated debt securities 4,103 4,102
    Lease liabilities 2,818 2,894
    Total liabilities 10,581 11,539
         
    Equity    
    Share capital 250 250
    Own shares -456 -315
    Statutory reserve capital 25 25
    Currency translation reserve 30 -834
    Retained earnings 69,417 71,276
    Total equity attributable to owners of the parent 69,266 70,402
    Non-controlling interest 0 27
    Total equity 69,266 70,429
    Total liabilities and equity 79,847 81,968

     Statement of Comprehensive Income

    (in thousands of euros) 2024 2023
    Net gains from trading of financial assets at fair value through profit or loss with clients and liquidity providers 40,653 46,276
    Brokerage and commission fee revenue 1,408 2,134
    Brokerage and commission fee expense -3,558 -5,118
    Other trading activity related income 489 412
    Other trading activity related expense -583 -2,768
    Net income from trading 38,409 40,936
    Other income similar to interest 947 171
    Interest income calculated using the effective interest method 424 900
    Interest expense -472 -496
    Other income 3,004 741
    Other expenses -233 -185
    Net losses on exchange rate changes -1,016 -984
    Profit / (loss) from financial assets at fair value through profit or loss -444 61
    Personnel expenses -13,394 -15,231
    Operating expenses -25,412 -31,875
    Depreciation of tangible and intangible assets -2,594 -2,310
    Depreciation of right-of-use assets -787 -837
    (Loss) before income tax -1,568 -9,109
    Income tax -24 -616
    (Loss) for the reporting period -1,592 -9,725
    Other comprehensive income / (loss):    
    Items that subsequently may be reclassified to profit or loss:    
    Currency translation adjustment 864 -165
    Total other comprehensive income / (loss) for the reporting period 864 -165
    Total comprehensive (loss) / income for the reporting period -728 -9,890
    Net (loss) attributable to the owners of the parent -1,592 -9,746
    Net profit attributable to non-controlling interest 0 21
    (Loss) for the reporting period -1,592 -9,725
    Total comprehensive (loss) attributable to the owners of the parent -728 -9,911
    Total comprehensive income attributable non- controlling interest 0 21
    Total comprehensive (loss) for the reporting period -728 -9,890
    Basic and diluted earnings per share -0.65 -3.95

    Additional information: 

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

    Attachments

    The MIL Network –

  • MIL-OSI USA: TOMORROW: First Partner Siebel Newsom to celebrate Move Your Body, Calm Your Mind Day with students in Pasadena

    Source: US State of California Governor

    Apr 30, 2025

    PASADENA — California First Partner Jennifer Siebel Newsom will join mental health professionals, athletes, and more than 600 students from two Pasadena Unified School District schools for a rally to celebrate Move Your Body, Calm Your Mind Day – a statewide day of action embracing the importance of movement, mindfulness, and play. The event will feature an action-packed morning of dancing, yoga, meditation, and drumboxing. 

    WHEN: Thursday, May 1 at 10:30 a.m.

    **NOTE: This in-person event will not be streamed and will be open to credentialed media only. Media interested in attending must RSVP by clicking here no later than 8:30 a.m., May 1. Location information will be provided upon confirmation.

    Media Advisories, Recent News

    Recent news

    Apr 30, 2025

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

    Apr 30, 2025

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

    Apr 30, 2025

    News What you need to know: Governor Gavin Newsom and the Department of Housing and Community Development today announced the awards of $118.9 million in federal funding for 29 California rural and tribal communities to create more affordable housing and supportive…

    MIL OSI USA News –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

    About OTC Markets Group Inc.

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

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

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

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

    Investor Contact:

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

    Media Contact:

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

    The MIL Network –

  • MIL-OSI: Credit Acceptance Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

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

    (In millions, except per share data)   For the Three Months Ended
        March 31, 2025   December 31, 2024   March 31, 2024
    GAAP net income   $         106.3    $         151.9    $         64.3 
    GAAP net income per diluted share   $         8.66    $         12.26    $         5.08 
                 
    Adjusted net income   $         114.8    $         126.0    $         117.4 
    Adjusted net income per diluted share   $         9.35    $         10.17    $         9.28 

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

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

    Consumer Loan Metrics

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Consumer Loan Volume

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

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

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

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

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

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

      For the Three Months Ended March 31,    
      2025   2024   % Change
    Consumer Loan unit volume         100,278            111,488            -10.1  %
    Active dealers (1)         10,789            10,805            -0.1  %
    Average volume per active dealer         9.3            10.3            -9.7  %
               
    Consumer Loan unit volume from dealers active both periods         80,926            93,406            -13.4  %
    Dealers active both periods         7,067            7,067            —   
    Average volume per dealer active both periods         11.5            13.2            -13.4  %
               
    Consumer loan unit volume from dealers not active both periods         19,352            18,082            7.0  %
    Dealers not active both periods         3,722            3,738            -0.4  %
    Average volume per dealer not active both periods         5.2            4.8            8.3  %

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

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

      For the Three Months Ended March 31,    
      2025     2024     % Change
    Consumer Loan unit volume from new active dealers         4,229              5,193              -18.6  %
    New active dealers (1)         1,195              1,310              -8.8  %
    Average volume per new active dealer         3.5              4.0              -12.5  %
               
    Attrition (2)         -16.2  %           -16.0  %    

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

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

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

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

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

    Financial Results

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

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

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

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

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

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

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

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

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

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

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

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

    (1)   Annualized.

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

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

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

    (Dollars in millions, except per share data)   For the Three Months Ended
        Mar. 31, 2025   Dec. 31, 2024   Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023
    Adjusted net income                                
    GAAP net income (loss)   $         106.3      $         151.9      $         78.8      $         (47.1)     $         64.3      $         93.6      $         70.8      $         22.2   
    Floating yield adjustment (after-tax)             (118.9)               (116.8)               (115.1)               (96.1)               (92.4)               (83.9)               (76.4)               (73.9)  
    GAAP provision for credit losses (after-tax)             124.6                95.0                142.2                246.9                143.2                126.1                142.1                192.9   
    Loss on sale of building (after-tax) (1)             —                —                —                18.3                —                —                —                —          
    Senior notes adjustment (after-tax)             —                —                —                —                —                (2.6)               (0.5)               (0.6)  
    Income tax adjustment (2)             2.8                (4.1)               3.2                4.4                2.3                (4.1)               3.5                (0.6)  
    Adjusted net income   $         114.8      $         126.0      $         109.1      $         126.4      $         117.4      $         129.1      $         139.5      $         140.0   
                                     
    Adjusted net income per diluted share (3)   $         9.35      $         10.17      $         8.79      $         10.29      $         9.28      $         10.06      $         10.70      $         10.69   
    Diluted weighted average shares outstanding     12,279,446        12,388,072        12,415,143        12,282,174        12,646,529        12,837,181        13,039,638        13,099,961   
                                     
    Adjusted revenue                                
    GAAP total revenue   $         571.1      $         565.9      $         550.3      $         538.2      $         508.0      $         491.6      $         478.6      $         477.9   
    Floating yield adjustment             (154.5)               (151.8)               (149.4)               (124.8)               (120.0)               (108.9)               (99.3)               (96.1)  
    GAAP provision for claims             (16.1)               (17.7)               (18.5)               (20.3)               (17.0)               (16.6)               (16.5)               (19.7)  
    Adjusted revenue   $         400.5      $         396.4      $         382.4      $         393.1      $         371.0      $         366.1      $         362.8      $         362.1   
                                     
    Adjusted average capital                                
    GAAP average debt   $         6,398.3      $         6,202.5      $         6,071.1      $         5,818.2      $         5,306.8      $         4,986.3      $         4,831.4      $         4,730.3   
    Deferred debt issuance adjustment             —                —                —                —                —                20.9                24.5                24.0   
    Senior notes debt adjustment             —                —                —                —                —                2.8                3.4                3.4   
    Adjusted average debt             6,398.3                6,202.5                6,071.1                5,818.2                5,306.8                5,010.0                4,859.3                4,757.7   
    GAAP average shareholders’ equity             1,782.0                1,712.3                1,594.2                1,623.5                1,678.5                1,734.3                1,731.3                1,752.6   
    Senior notes equity adjustment             —                —                —                —                —                2.0                2.9                3.4   
    Income tax adjustment (4)             (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)  
    Floating yield adjustment             820.8                837.0                840.8                710.1                641.0                606.5                548.9                433.9   
    Adjusted average equity             2,484.3                2,430.8                2,316.5                2,215.1                2,201.0                2,224.3                2,164.6                2,071.4   
    Adjusted average capital   $         8,882.6      $         8,633.3      $         8,387.6      $         8,033.3      $         7,507.8      $         7,234.3      $         7,023.9      $         6,829.1   
    Adjusted revenue as a percentage of adjusted average capital (5)             18.0  %             18.4  %             18.2  %             19.6  %             19.8  %             20.2  %             20.7  %             21.2  %
                                     
    Adjusted loans receivable                                
    GAAP loans receivable, net   $         7,978.2      $         7,850.3      $         7,781.5      $         7,547.7      $         7,345.6      $         6,955.3      $         6,780.5      $         6,610.3   
    Floating yield adjustment             1,079.8                1,072.4                1,100.8                1,065.6                869.7                803.8                748.9                663.7   
    Adjusted loans receivable   $         9,058.0      $         8,922.7      $         8,882.3      $         8,613.3      $         8,215.3      $         7,759.1      $         7,529.4      $         7,274.0   
                                     
    Adjusted loan yield                                
    GAAP finance charges   $         526.7      $         518.2      $         507.6      $         497.7      $         469.2      $         451.6      $         441.7      $         441.0   
    Floating yield adjustment             (154.5)               (151.8)               (149.4)               (124.8)               (120.0)               (108.9)               (99.3)               (96.1)  
    Adjusted finance charges   $         372.2      $         366.4      $         358.2      $         372.9      $         349.2      $         342.7      $         342.4      $         344.9   
                                     
    GAAP average loans receivable, net   $         7,882.4      $         7,831.4      $         7,690.9      $         7,499.2      $         7,101.3      $         6,867.8      $         6,690.8      $         6,596.6   
    Average floating yield adjustment             1,048.9                1,071.4                1,072.2                903.2                819.7                775.6                701.0                552.8   
    Adjusted average loans receivable   $         8,931.3      $         8,902.8      $         8,763.1      $         8,402.4      $         7,921.0      $         7,643.4      $         7,391.8      $         7,149.4   
    Adjusted finance charges as a percentage of adjusted average loans receivable (5)             16.7  %             16.5  %             16.4  %             17.8  %             17.6  %             17.9  %             18.5  %             19.3  %

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

    (Dollars in millions)   For the Three Months Ended
        Mar. 31, 2025   Dec. 31, 2024   Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023
    Adjusted interest expense (after-tax)                                
    GAAP interest expense   $         114.7      $         111.3      $         111.2      $         104.5      $         92.5      $         78.8      $         70.5      $         62.8   
    Senior notes adjustment             —                 —                —                —                —                3.5                0.7                0.7   
    Adjusted interest expense (pre-tax)             114.7                111.3                111.2                104.5                92.5                82.3                71.2                63.5   
    Adjustment to record tax effect (1)             (26.4)               (25.6)               (25.6)               (24.0)               (21.3)               (18.9)               (16.4)               (14.6)  
    Adjusted interest expense (after-tax)   $         88.3      $         85.7      $         85.6      $         80.5      $         71.2      $         63.4      $         54.8      $         48.9   
                                     
    Adjusted return on capital (2)                                
    Adjusted net income   $         114.8      $         126.0      $         109.1      $         126.4      $         117.4      $         129.1      $         139.5      $         140.0   
    Adjusted interest expense (after-tax)             88.3                85.7                85.6                80.5                71.2                63.4                54.8                48.9   
    Adjusted net income plus adjusted interest expense (after-tax)   $         203.1      $         211.7      $         194.7      $         206.9      $         188.6      $         192.5      $         194.3      $         188.9   
                                     
    Reconciliation of GAAP return on equity to adjusted return on capital (5)                                
    GAAP return on equity (3)             23.9  %             35.5  %             19.8  %             -11.6  %             15.3  %             21.6  %             16.4  %             5.1  %
    Non-GAAP adjustments             -14.7  %             -25.7  %             -10.5  %             21.9  %             -5.2  %             -11.0  %             -5.3  %             6.0  %
    Adjusted return on capital (2)             9.2  %             9.8  %             9.3  %             10.3  %             10.1  %             10.6  %             11.1  %             11.1  %
                                     
    Economic profit                                
    Adjusted return on capital             9.2  %             9.8  %             9.3  %             10.3  %             10.1  %             10.6  %             11.1  %             11.1  %
    Cost of capital (4) (5)             7.6  %             7.4  %             7.3  %             7.5  %             7.3  %             7.6  %             7.1  %             6.7  %
    Adjusted return on capital in excess of cost of capital             1.6  %             2.4  %             2.0  %             2.8  %             2.8  %             3.0  %             4.0  %             4.4  %
    Adjusted average capital   $         8,882.6      $         8,633.3      $         8,387.6      $         8,033.3      $         7,507.8      $         7,234.3      $         7,023.9      $         6,829.1   
        Economic profit   $         35.3      $         51.3      $         41.4      $         56.2      $         51.4      $         55.9      $         69.1      $         74.1   
                                     
    Reconciliation of GAAP net income (loss) to economic profit                                
    GAAP net income (loss)   $         106.3      $         151.9      $         78.8      $         (47.1)     $         64.3      $         93.6      $         70.8      $         22.2   
    Non-GAAP adjustments             8.5                (25.9)               30.3                173.5                53.1                35.5                68.7                117.8   
    Adjusted net income             114.8                126.0                109.1                126.4                117.4                129.1                139.5                140.0   
    Adjusted interest expense (after-tax)             88.3                85.7                85.6                80.5                71.2                63.4                54.8                48.9   
    Adjusted net income plus adjusted interest expense (after-tax)             203.1                211.7                194.7                206.9                188.6                192.5                194.3                188.9   
    Less: cost of capital             167.8                160.4                153.3                150.7                137.2                136.6                125.2                114.8   
    Economic profit   $         35.3      $         51.3      $         41.4      $         56.2      $         51.4      $         55.9      $         69.1      $         74.1   
                                     
    Economic profit per diluted share (6)   $         2.87      $         4.14      $         3.33      $         4.58      $         4.06      $         4.35      $         5.30      $         5.66   
    Operating expenses as a percentage of adjusted average capital (5)             6.1  %             5.6  %             6.2  %             6.2  %             6.7  %             6.3  %             6.3  %             6.9  %
    Percentage change in adjusted average capital compared to the same period in the prior year             18.3  %             19.3  %             19.4  %             17.6  %             14.6  %             11.5  %             8.8  %             6.2  %

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

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

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

    Floating Yield Adjustment

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

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

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

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

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

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

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

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

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

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

    Cautionary Statement Regarding Forward-Looking Information

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

    Industry, Operational, and Macroeconomic Risks

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

    Capital and Liquidity Risks

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

    Technology and Cybersecurity Risks

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

    Legal and Regulatory Risks

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

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

    Webcast Details

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

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

    Description of Credit Acceptance Corporation

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

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

    CREDIT ACCEPTANCE CORPORATION
    CONSOLIDATED STATEMENTS OF INCOME
    (UNAUDITED)
            

    (Dollars in millions, except per share data) For the Three Months Ended March 31,
        2025     2024
    Revenue:      
    Finance charges $         526.7   $         469.2
    Premiums earned           23.5             21.9
    Other income           20.9             16.9
    Total revenue           571.1             508.0
    Costs and expenses:      
    Salaries and wages           88.6             78.5
    General and administrative           22.1             23.7
    Sales and marketing           24.8             23.9
    Total operating expenses           135.5             126.1
           
    Provision for credit losses on forecast changes           76.3             87.2
    Provision for credit losses on new Consumer Loan assignments           85.6             98.8
    Total provision for credit losses           161.9             186.0
           
    Interest           114.7             92.5
    Provision for claims           16.1             17.0
    Loss on extinguishment of debt           1.2             —  
    Total costs and expenses           429.4             421.6
    Income before provision for income taxes           141.7             86.4
    Provision for income taxes           35.4             22.1
    Net income $         106.3   $         64.3
           
    Net income per share:      
    Basic $         8.79   $         5.15
    Diluted $         8.66   $         5.08
           
    Weighted average shares outstanding:      
    Basic           12,091,027             12,481,139
    Diluted           12,279,446             12,646,529

    CREDIT ACCEPTANCE CORPORATION
    CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)

    (Dollars in millions, except per share data) As of
      March 31, 2025   December 31, 2024
    ASSETS:      
    Cash and cash equivalents $         528.8      $         343.7   
    Restricted cash and cash equivalents           591.8                501.3   
    Restricted securities available for sale           109.0                106.4   
           
    Loans receivable           11,476.7                11,289.1   
    Allowance for credit losses           (3,498.5)               (3,438.8)  
    Loans receivable, net           7,978.2                7,850.3   
           
    Property and equipment, net           13.7                14.7   
    Income taxes receivable           6.4                4.2   
    Other assets           30.1                34.0   
    Total assets $         9,258.0      $         8,854.6   
           
    LIABILITIES AND SHAREHOLDERS’ EQUITY:      
    Liabilities:      
    Accounts payable and accrued liabilities $         377.0      $         315.8   
    Revolving secured lines of credit           1.4                0.1   
    Secured financing           5,618.0                5,361.5   
    Senior notes           1,085.8                991.3   
    Deferred income taxes, net           320.9                319.1   
    Income taxes payable           144.0                117.2   
    Total liabilities           7,547.1                7,105.0   
           
    Shareholders’ Equity:      
    Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued           —                —   
    Common stock, $.01 par value, 80,000,000 shares authorized, 11,747,851 and 12,048,151 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively           0.1                0.1   
    Paid-in capital           351.7                335.1   
    Retained earnings           1,358.5                1,414.7   
    Accumulated other comprehensive income (loss)           0.6                (0.3)  
    Total shareholders’ equity           1,710.9                1,749.6   
    Total liabilities and shareholders’ equity $         9,258.0      $         8,854.6   

    The MIL Network –

  • MIL-OSI: Admirals Group AS audited annual report 2024

    Source: GlobeNewswire (MIL-OSI)

    Admirals Group AS audited annual report 2024

    Despite lower client activity, Admirals Group AS delivered resilient trading income and positive EBITDA through effective cost control measures.

    • The Group’s net trading income decreased by 6% to EUR 38.4 million (2023: EUR 40.9 million), being supported by higher volatility on the financial markets.

    • The Group’s total operating expenses decreased by 16% to EUR 42.4 million (2023: EUR 50.3 million) as a result of cost optimisation efforts.

    • EBITDA was EUR 0.9 million (2023: EUR -6.5 million).

    • Net loss was EUR -1.6 million (2023: EUR -9.7 million).

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

    Statement of Financial Position

    (in thousands of euros) 31.12.2024 31.12.2023
    Assets    
    Cash and cash equivalents 41,607 41,025
    Due from investment companies 18,736 18,961
    Financial assets at fair value through profit or loss 1,228 5,062
    Loans and receivables 8,315 4,772
    Inventories 665 311
    Other assets 2,092 2,137
    Tangible fixed assets 1,359 1,950
    Right-of-use assets 2,541 2,603
    Intangible assets 3,304 5,147
    Total assets 79,847 81,968
         
    Liabilities    
    Financial liabilities at fair value through profit or loss 334 224
    Liabilities and accruals 3,326 4,318
    Deferred tax liability 0 1
    Subordinated debt securities 4,103 4,102
    Lease liabilities 2,818 2,894
    Total liabilities 10,581 11,539
         
    Equity    
    Share capital 250 250
    Own shares -456 -315
    Statutory reserve capital 25 25
    Currency translation reserve 30 -834
    Retained earnings 69,417 71,276
    Total equity attributable to owners of the parent 69,266 70,402
    Non-controlling interest 0 27
    Total equity 69,266 70,429
    Total liabilities and equity 79,847 81,968

     Statement of Comprehensive Income

    (in thousands of euros) 2024 2023
    Net gains from trading of financial assets at fair value through profit or loss with clients and liquidity providers 40,653 46,276
    Brokerage and commission fee revenue 1,408 2,134
    Brokerage and commission fee expense -3,558 -5,118
    Other trading activity related income 489 412
    Other trading activity related expense -583 -2,768
    Net income from trading 38,409 40,936
    Other income similar to interest 947 171
    Interest income calculated using the effective interest method 424 900
    Interest expense -472 -496
    Other income 3,004 741
    Other expenses -233 -185
    Net losses on exchange rate changes -1,016 -984
    Profit / (loss) from financial assets at fair value through profit or loss -444 61
    Personnel expenses -13,394 -15,231
    Operating expenses -25,412 -31,875
    Depreciation of tangible and intangible assets -2,594 -2,310
    Depreciation of right-of-use assets -787 -837
    (Loss) before income tax -1,568 -9,109
    Income tax -24 -616
    (Loss) for the reporting period -1,592 -9,725
    Other comprehensive income / (loss):    
    Items that subsequently may be reclassified to profit or loss:    
    Currency translation adjustment 864 -165
    Total other comprehensive income / (loss) for the reporting period 864 -165
    Total comprehensive (loss) / income for the reporting period -728 -9,890
    Net (loss) attributable to the owners of the parent -1,592 -9,746
    Net profit attributable to non-controlling interest 0 21
    (Loss) for the reporting period -1,592 -9,725
    Total comprehensive (loss) attributable to the owners of the parent -728 -9,911
    Total comprehensive income attributable non- controlling interest 0 21
    Total comprehensive (loss) for the reporting period -728 -9,890
    Basic and diluted earnings per share -0.65 -3.95

    Additional information: 

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

    Attachments

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

    About 3D Systems

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

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

    The MIL Network –

  • MIL-OSI: Enovix Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

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

    Fellow Shareholders,

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

    Recent Highlights

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

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

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

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

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

    Business Update

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

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

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

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

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

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

    Q1 2025 Financial Highlights (Preliminary and Unaudited)

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

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

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

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

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

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

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

    Q2 2025 Financial Outlook

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

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

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

    Summary

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

    Conference Call Information

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

    About Enovix

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

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

    Non-GAAP Financial Measures

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

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

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

    Forward-Looking Statements

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

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

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

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

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

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

    Enovix Corporation
    Condensed Consolidated Balance Sheets
    (Unaudited) (In Thousands, Except Share and per Share Amounts)
           
      March 30,
    2025    		   December 29,
    2024
    Assets      
    Current assets:      
    Cash and cash equivalents $ 189,874     $ 272,869  
    Short-term investments   58,281       —  
    Accounts receivable, net   2,897       4,566  
    Notes receivable, net   1,255       4  
    Inventory   10,483       7,664  
    Prepaid expenses and other current assets   7,382       9,903  
    Total current assets   270,172       295,006  
    Property and equipment, net   165,775       167,947  
    Customer relationship intangibles and other intangibles, net   35,205       36,394  
    Operating lease, right-of-use assets   12,921       13,479  
    Goodwill   12,217       12,217  
    Other assets, non-current   2,755       2,126  
    Total assets $ 499,045     $ 527,169  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 20,610     $ 9,492  
    Accrued expenses   8,540       19,843  
    Accrued compensation   6,481       8,228  
    Short-term debt   10,367       9,452  
    Deferred revenue   6,630       3,650  
    Other liabilities   5,161       3,036  
    Total current liabilities   57,789       53,701  
    Long-term debt, net   169,185       169,820  
    Warrant liability   12,584       28,380  
    Operating lease liabilities, non-current   12,638       13,293  
    Deferred revenue, non-current   300       3,774  
    Deferred tax liability   8,751       8,784  
    Other liabilities, non-current   14       14  
    Total liabilities   261,261       277,766  
    Commitments and Contingencies      
    Stockholders’ equity:      
    Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 191,715,117 and 190,559,335 as of March 30, 2025 and December 29, 2024, respectively   19       19  
    Additional paid-in-capital   1,079,904       1,067,951  
    Accumulated other comprehensive loss   (184 )     (143 )
    Accumulated deficit   (844,596 )     (821,086 )
    Total Enovix stockholders’ equity   235,143       246,741  
    Non-controlling interest   2,641       2,662  
    Total equity   237,784       249,403  
    Total liabilities and equity $ 499,045     $ 527,169  
                   
    Enovix Corporation
    Condensed Consolidated Statements of Operations
    (Unaudited) (In Thousands, Except Share and per Share Amounts)
       
      Fiscal Quarters Ended
      March 30, 2025   March 31, 2024
    Revenue $ 5,098     $ 5,272  
    Cost of revenue   4,837       7,072  
    Gross profit   261       (1,800 )
    Operating expenses:      
    Research and development   25,929       48,788  
    Selling, general and administrative   16,892       19,548  
    Total operating expenses   42,821       68,336  
    Loss from operations   (42,560 )     (70,136 )
    Other income (expense):      
    Change in fair value of common stock warrants   15,796       21,120  
    Interest income   2,434       3,560  
    Interest expense   (1,716 )     (1,659 )
    Other income, net   2,353       466  
    Total other income, net   18,867       23,487  
    Loss before income tax benefit   (23,693 )     (46,649 )
    Income tax benefit   (162 )     (152 )
    Net loss   (23,531 )     (46,497 )
    Net loss attributable to non-controlling interests   (21 )     (129 )
    Net loss attributable to Enovix $ (23,510 )   $ (46,368 )
           
    Net loss per share attributable to Enovix shareholders, basic and diluted $ (0.12 )   $ (0.28 )
    Weighted average number of common shares outstanding, basic and diluted   191,304,975       168,144,918  
                   
    Enovix Corporation
    Condensed Consolidated Statements of Cash Flows
    (Unaudited) (In Thousands)
       
      Fiscal Quarters Ended
      March 30, 2025   March 31, 2024
    Cash flows used in operating activities:      
    Net loss $ (23,531 )   $ (46,497 )
    Adjustments to reconcile net loss to net cash used in operating activities      
    Depreciation, accretion and amortization   8,448       24,974  
    Stock-based compensation   12,014       12,760  
    Changes in fair value of common stock warrants   (15,796 )     (21,120 )
    Others   479       173  
    Changes in operating assets and liabilities:      
    Accounts and notes receivables   430       505  
    Inventory   (2,826 )     2,202  
    Prepaid expenses and other assets   2,440       (1,809 )
    Accounts payable   4,420       (7,281 )
    Accrued expenses and compensation   (4,167 )     2,845  
    Deferred revenue   (457 )     (1,402 )
    Deferred tax liability   (33 )     (222 )
    Other liabilities   1,672       (172 )
    Net cash used in operating activities   (16,907 )     (35,044 )
    Cash flows from investing activities:      
    Purchase of property and equipment   (6,272 )     (15,088 )
    Payment of acquisition costs   (16 )     —  
    Purchases of investments   (58,083 )     (17,066 )
    Maturities of investments   —       51,260  
    Net cash provided by (used in) investing activities   (64,371 )     19,106  
    Cash flows from financing activities:      
    Proceeds from issuance of Convertible Senior Notes and loans   —       1,800  
    Payments of transaction costs related to common stock issuance   (512 )     —  
    Payroll tax payments for shares withheld upon vesting of RSUs   (1,761 )     (2,222 )
    Proceeds from the exercise of stock options and issuance of common stock under ATM, net of issuance costs   782       5,852  
    Net cash provided by (used in) financing activities   (1,491 )     5,430  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (228 )     (541 )
    Change in cash, cash equivalents, and restricted cash   (82,997 )     (11,049 )
    Cash and cash equivalents and restricted cash, beginning of period   274,691       235,123  
    Cash and cash equivalents, and restricted cash, end of period $ 191,694     $ 224,074  
           

    EBITDA and Adjusted EBITDA Reconciliation

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

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

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

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

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

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

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

      Fiscal Quarters Ended
      March 30, 2025   March 31, 2024
           
    GAAP Operating Loss $ (42,560 )   $ (70,136 )
    Stock-based compensation expense   12,014       12,760  
    Amortization of intangible assets   1,190       1,172  
    Inventory step-up   —       1,907  
    Non-GAAP Operating Loss   (29,356 )     (54,297 )
    Depreciation and amortization (excluding amortization of intangible assets)   7,258       23,802  
    Other income (loss), net (excluding import duty forgiveness)   (78 )     466  
    Net loss attributable to non-controlling interest   21       129  
    Adjusted EBITDA $ (22,155 )   $ (29,900 )
                   

    Free Cash Flow Reconciliation

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

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

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

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

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

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

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

      Fiscal Quarters Ended
      March 30, 2025   March 31, 2024
    Revenue $ 5,098     $ 5,272  
           
    GAAP cost of revenue $ 4,837     $ 7,072  
    Stock-based compensation expense   (121 )     —  
    Inventory step-up   —       (1,907 )
    Non-GAAP cost of revenue $ 4,716     $ 5,165  
           
    GAAP gross profit $ 261     $ (1,800 )
    Stock-based compensation expense   121       —  
    Inventory step-up   —       1,907  
    Non-GAAP gross profit $ 382     $ 107  
           
    GAAP research and development (R&D) expense $ 25,929     $ 48,788  
    Stock-based compensation expense   (6,355 )     (6,554 )
    Amortization of intangible assets   (416 )     (416 )
    Non-GAAP R&D expense $ 19,158     $ 41,818  
           
    GAAP selling, general and administrative (SG&A) expense $ 16,892     $ 19,548  
    Stock-based compensation expense   (5,538 )     (6,206 )
    Amortization of intangible assets   (774 )     (756 )
    Non-GAAP SG&A expense $ 10,580     $ 12,586  
           
    GAAP operating expenses $ 42,821     $ 68,336  
    Stock-based compensation expense included in R&D expense   (6,355 )     (6,554 )
    Stock-based compensation expense included in SG&A expense   (5,538 )     (6,206 )
    Amortization of intangible assets   (1,190 )     (1,172 )
    Non-GAAP operating expenses $ 29,738     $ 54,404  
           
        Fiscal Quarters Ended
        March 30, 2025   March 31, 2024
    GAAP loss from operations   $ (42,560 )   $ (70,136 )
    Stock-based compensation expense     12,014       12,760  
    Amortization of intangible assets     1,190       1,172  
    Inventory step-up     —       1,907  
    Non-GAAP loss from operations   $ (29,356 )   $ (54,297 )
             
    GAAP net loss attributable to Enovix   $ (23,510 )   $ (46,368 )
    Stock-based compensation expense     12,014       12,760  
    Change in fair value of common stock warrants     (15,796 )     (21,120 )
    Amortization of intangible assets     1,190       1,172  
    Inventory step-up     —       1,907  
    Import duty forgiveness     (2,431 )     —  
    Non-GAAP net loss attributable to Enovix shareholders   $ (28,533 )   $ (51,649 )
             
    GAAP net loss per share attributable to Enovix, basic and diluted   $ (0.12 )   $ (0.28 )
    GAAP weighted average number of common shares outstanding, basic and diluted     191,304,975       168,144,918  
             
    Non-GAAP net loss per share attributable to Enovix, basic and diluted   $ (0.15 )   $ (0.31 )
    GAAP weighted average number of common shares outstanding, basic and diluted     191,304,975       168,144,918  
                     
        Fiscal Quarter Ended
        December 29,
    2024
    GAAP net loss attributable to Enovix   $         (37,465 )
    Stock-based compensation expense     10,207  
    Change in fair value of common stock warrants     5,115  
    Amortization of intangible assets     1,189  
    Non-GAAP net loss attributable to Enovix shareholders   $ (20,954 )
         
    GAAP net loss per share attributable to Enovix, basic and diluted   $ (0.20 )
    GAAP weighted average number of common shares outstanding, basic and diluted     184,971,942  
         
    Non-GAAP net loss per share attributable to Enovix, basic and diluted   $ (0.11 )
    GAAP weighted average number of common shares outstanding, basic and diluted     184,971,942  

    The MIL Network –

  • MIL-OSI: Robinhood Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

    First Quarter Results

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

    __________________________________

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

    Highlights

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

    • Enhanced Products for Active Traders – Robinhood continues to roll out advanced capabilities and tools for active traders aimed at making trading faster, clearer, and more intuitive. The desktop trading platform, Robinhood Legend, now features increased speed, support for index options and crypto, and new indicators and charts. In March, Robinhood expanded its prediction markets offering by launching a hub and giving customers the opportunity to trade on the outcomes of some of the world’s biggest events. Over the last six months customers have traded more than 1 billion event contracts.
    • Increasing Wallet Share by Serving the Entirety of Customers’ Financial Needs – During its second annual Gold keynote event in March, Robinhood unveiled new advisory, banking, and AI offerings: Robinhood Strategies, Robinhood Banking, and Robinhood Cortex. With plans to roll out to all customers in the coming weeks, Robinhood Strategies is already serving more than 40 thousand customers and managing more than $100 million in customer assets as of April 25, 2025. In February, Robinhood also closed its acquisition of TradePMR, an RIA custodial platform, with approximately $41 billion in assets managed by RIAs as of March 31, 2025.
    • Building a Global Financial Ecosystem – Robinhood continues to make progress internationally, with over 150 thousand customers across the UK and EU. The acquisition of globally-scaled cryptocurrency exchange Bitstamp Ltd. is on track to close in the middle of this year, subject to customary closing conditions.
    • Robinhood Board of Directors Authorizes Additional $500 million in Share Repurchases – Following the authorization of a $1 billion share repurchase program announced in May 2024, the Robinhood board of directors has authorized an additional $500 million, bringing the program total to $1.5 billion. Through April 25, 2025, 20 million shares of Class A common stock have been repurchased at an average price of $33.40, representing a total $667 million. The remaining authorization now totals approximately $833 million which management expects to execute over the next roughly two years, with flexibility to accelerate if market conditions warrant.

    Additional Q1 2025 Operating Data

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

    Conference Call and Livestream Information

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

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

    Financial Outlook

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

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

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

    About Robinhood

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

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

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

    Contacts

    Investors:
    ir@robinhood.com    		 Press:
    press@robinhood.com
       
    ROBINHOOD MARKETS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)  
     
     
      December 31,   March 31,
    (in millions, except share and per share data) 2024   2025
    Assets      
    Current assets:      
    Cash and cash equivalents $ 4,332     $ 4,416  
    Cash, cash equivalents, and securities segregated under federal and other regulations   4,724       4,442  
    Receivables from brokers, dealers, and clearing organizations   471       267  
    Receivables from users, net   8,239       9,167  
    Securities borrowed   3,236       4,114  
    Deposits with clearing organizations   489       641  
    User-held fractional shares   2,530       2,531  
    Held-to-maturity investments   398       192  
    Prepaid expenses   75       89  
    Deferred customer match incentives   100       113  
    Other current assets   509       243  
    Total current assets   25,103       26,215  
    Property, software, and equipment, net   139       140  
    Goodwill   179       292  
    Intangible assets, net   38       109  
    Non-current deferred customer match incentives   195       238  
    Other non-current assets, including non-current prepaid expenses of $17 as of December 31, 2024 and March 31, 2025   533       523  
    Total assets $ 26,187     $ 27,517  
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable and accrued expenses $ 397     $ 319  
    Payables to users   7,448       7,116  
    Securities loaned   7,463       9,098  
    Fractional shares repurchase obligation   2,530       2,531  
    Other current liabilities   266       367  
    Total current liabilities   18,104       19,431  
    Other non-current liabilities   111       133  
    Total liabilities   18,215       19,564  
    Commitments and contingencies      
    Stockholders’ equity:      
    Preferred stock, $0.0001 par value. 210,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and March 31, 2025.   —       —  
    Class A common stock, $0.0001 par value. 21,000,000,000 shares authorized, 764,903,997 shares issued and outstanding as of December 31, 2024; 21,000,000,000 shares authorized, 767,854,773 shares issued and outstanding as of March 31, 2025.   —       —  
    Class B common stock, $0.0001 par value. 700,000,000 shares authorized, 119,588,986 shares issued and outstanding as of December 31, 2024; 700,000,000 shares authorized, 116,720,012 shares issued and outstanding as of March 31, 2025.   —       —  
    Class C common stock, $0.0001 par value. 7,000,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and March 31, 2025.   —       —  
    Additional paid-in capital   12,008       11,652  
    Accumulated other comprehensive loss   (1 )     —  
    Accumulated deficit   (4,035 )     (3,699 )
    Total stockholders’ equity   7,972       7,953  
    Total liabilities and stockholders’ equity $ 26,187     $ 27,517  
                   
    ROBINHOOD MARKETS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
     
      Three Months Ended 
    March 31,    		         Three Months Ended
    December 31,    		      
    (in millions, except share, per share, and percentage data) 2024   2025   YOY%
    Change    		   2024   QOQ%
    Change
    Revenues:                  
    Transaction-based revenues $ 329   $ 583   77 %   $ 672     (13 )%
    Net interest revenues   254     290   14 %     296     (2 )%
    Other revenues   35     54   54 %     46     17 %
    Total net revenues   618     927   50 %     1,014     (9 )%
                       
    Operating expenses(1)(2):                  
    Brokerage and transaction   35     50   43 %     50     — %
    Technology and development   196     214   9 %     208     3 %
    Operations   28     31   11 %     29     7 %
    Provision for credit losses   16     24   50 %     19     26 %
    Marketing   67     105   57 %     82     28 %
    General and administrative   118     133   13 %     70     90 %
    Total operating expenses   460     557   21 %     458     22 %
                       
    Other income, net   4     1   (75 )%     2     (50 )%
    Income before income taxes   162     371   129 %     558     (34 )%
    Provision for (benefit from) income taxes   5     35   600 %     (358 )   NM  
    Net income $ 157   $ 336   114 %   $ 916     (63 )%
    Net income attributable to common stockholders:                  
    Basic $ 157   $ 336       $ 916      
    Diluted $ 157   $ 336       $ 916      
    Net income per share attributable to common stockholders:                  
    Basic $ 0.18   $ 0.38       $ 1.04      
    Diluted $ 0.18   $ 0.37       $ 1.01      
    Weighted-average shares used to compute net income per share attributable to common stockholders:                  
    Basic   875,319,407     884,577,603         883,884,676      
    Diluted   895,779,155     909,241,619         907,767,796      
                               

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

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

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

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

      Three Months Ended 
    March 31,    		   Three Months
    Ended
    December 31,
    (in millions) 2024   2025   2024
    Brokerage and transaction $ 2   $ 2   $ 2
    Technology and development   44     44     48
    Operations   2     1     2
    Marketing   2     2     2
    General and administrative   12     24     23
    Total SBC $ 62   $ 73   $ 77
                     
    ROBINHOOD MARKETS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
     
      Three Months Ended
    March 31,
    (in millions) 2024   2025
    Operating activities:      
    Net income $ 157     $ 336  
    Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
    Depreciation and amortization   17       20  
    Provision for credit losses   16       24  
    Share-based compensation   62       73  
    Other   —       4  
    Changes in operating assets and liabilities:      
    Securities segregated under federal and other regulations   (692 )     397  
    Receivables from brokers, dealers, and clearing organizations   (118 )     206  
    Receivables from users, net   (796 )     (911 )
    Securities borrowed   (505 )     (878 )
    Deposits with clearing organizations   (247 )     (152 )
    Current and non-current prepaid expenses   —       (13 )
    Current and non-current deferred customer match incentives   (74 )     (56 )
    Other current and non-current assets   (83 )     351  
    Accounts payable and accrued expenses   (46 )     (124 )
    Payables to users   977       (332 )
    Securities loaned   668       1,635  
    Other current and non-current liabilities   41       62  
    Net cash provided by (used in) operating activities   (623 )     642  
    Investing activities:      
    Purchases of property, software, and equipment   (2 )     (2 )
    Capitalization of internally developed software   (7 )     (9 )
    Business acquisition, net of cash and cash equivalents acquired   —       (150 )
    Purchases of held-to-maturity investments   (171 )     —  
    Proceeds from maturities of held-to-maturity investments   154       208  
    Purchases of credit card receivables by Credit Card Funding Trust   (29 )     (549 )
    Collections of purchased credit card receivables   11       511  
    Asset acquisition, net of cash acquired   (3 )     —  
    Net cash provided by (used in) investing activities   (47 )     9  
    Financing activities:      
    Proceeds from exercise of stock options   4       7  
    Taxes paid related to net share settlement of equity awards   (40 )     (120 )
    Repurchase of Class A common stock   —       (322 )
    Borrowings by the Credit Card Funding Trust   17       24  
    Change in principal collected from customers due to Coastal Bank   3       10  
    Payments of debt issuance costs   (14 )     (16 )
    Net cash used in financing activities   (30 )     (417 )
    Effect of foreign exchange rate changes on cash and cash equivalents   —       1  
    Net increase (decrease) in cash, cash equivalents, segregated cash, and restricted cash   (700 )     235  
    Cash, cash equivalents, segregated cash, and restricted cash, beginning of the period   9,346       8,695  
    Cash, cash equivalents, segregated cash, and restricted cash, end of the period $ 8,646     $ 8,930  
    Reconciliation of cash, cash equivalents, segregated cash and restricted cash, end of the period:
    Cash and cash equivalents, end of the period $ 4,717     $ 4,416  
    Segregated cash and cash equivalents, end of the period   3,829       4,442  
    Restricted cash in other current assets, end of the period   83       54  
    Restricted cash in other non-current assets, end of the period   17       18  
    Cash, cash equivalents, segregated cash and restricted cash, end of the period $ 8,646     $ 8,930  
    Supplemental disclosures:      
    Cash paid for interest $ 7     $ 9  
    Cash paid for income taxes, net of refund received $ 2     $ 29  
                   
    Reconciliation of GAAP to Non-GAAP Results
    (Unaudited)
     
      Three Months Ended 
    March 31,    		   Three Months
    Ended 
    December 31,
    (in millions, except for percentage data) 2024   2025   2024
    Net income $ 157     $ 336     $ 916  
    Net margin   25 %     36 %     90 %
    Add:          
    Interest expenses related to credit facilities   6       6       6  
    Provision for (benefit from) income taxes   5       35       (358 )
    Depreciation and amortization   17       20       22  
    EBITDA (non-GAAP)   185       397       586  
    Add:          
    SBC   62       73       77  
    Significant legal and tax settlements and reserves(1)   —       —       (50 )
    Adjusted EBITDA (non-GAAP) $ 247     $ 470     $ 613  
    Adjusted EBITDA margin (non-GAAP)   40 %     51 %     60 %
                           
      Three Months Ended
    March 31,    		   Three Months
    Ended
    December 31,
    (in millions) 2024   2025   2024
    Total operating expenses (GAAP) $ 460   $ 557   $ 458  
    Less:          
    SBC   62     73     77  
    Provision for credit losses(2)   —     24     —  
    Significant legal and tax settlements and reserves(1)   —     —     (50 )
    Adjusted Operating Expenses (Non-GAAP) $ 398   $ 460   $ 431  
                       
      Three Months Ended
    March 31,    		   Three Months
    Ended
    December 31,
    (in millions) 2024   2025   2024
    Total operating expenses (GAAP) $ 460   $ 557   $ 458  
    Less:          
    SBC   62     73     77  
    Provision for credit losses(2)   —     24     —  
    Significant legal and tax settlements and reserves(1)   —     —     (50 )
    Adjusted Operating Expenses (Non-GAAP)   398     460     431  
    Add:          
    SBC   62     73     77  
    Adjusted Operating Expenses and SBC (Non-GAAP) $ 460   $ 533     508  
                       

    ________________

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

    Cautionary Note Regarding Forward-Looking Statements

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

    Non-GAAP Financial Measures

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

    Adjusted EBITDA

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

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

    Adjusted EBITDA Margin

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

    Adjusted Operating Expenses

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

    Adjusted Operating Expenses and SBC

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

    Key Performance Metrics

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

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

    Assets Under Custody

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

    Funded Customers

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

    Total Platform Assets

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

    Net Deposits

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

    Average Revenue Per User (“ARPU”)

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

    Robinhood Gold Subscribers

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

    Additional Operating Metrics

    Robinhood Retirement AUC

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

    Cash Sweep

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

    Margin Book

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

    Notional Trading Volume

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

    Options Contracts Traded

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

    Glossary Terms

    Investment Accounts

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

    Robinhood Gold Adoption Rate

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

    Growth Rate and Annualized Growth Rate with respect to Net Deposits

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

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

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

    Balance Sheet Summary

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

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

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

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

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

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

    Asset Quality

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

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

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

    Additional Liquidity, Loan, and Deposit Information

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

    Deposit balances are summarized as follows:

      At March 31, 2025   At December 31, 2024
      Balance   Weighted
    Average
    Rate    		   Balance   Weighted
    Average
    Rate
      (Dollars in thousands)
                   
    Non-interest-bearing demand $ 1,490,243   — %   $ 1,438,030   — %
    Interest-bearing demand   1,935,384   2.08       2,021,312   2.19  
    Money market accounts   1,333,668   2.84       1,241,691   2.82  
    Savings and club deposits   651,713   0.70       652,501   0.75  
    Certificates of deposit   2,783,927   4.08       2,742,615   4.24  
    Total deposits $ 8,194,935   2.40 %   $ 8,096,149   2.47 %
                           

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

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

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

      At March 31, 2025
      (Dollars in thousands)
      Balance   % of Gross Loans   Weighted Average
    Loan to Value Ratio    		   Weighted
    Average
    Debt Service
    Coverage    		  
    Multifamily Real Estate $ 1,567,862   19.6 %   58.0 %   1.58 x
                     
    Owner Occupied Commercial Real Estate $ 689,509   8.6 %   53.7 %   2.23 x
                     
    Investor Owned Commercial Real Estate:                
    Retail / Shopping centers $ 518,841   6.5 %   53.4 %   1.50 x
    Mixed Use   220,391   2.8     58.0     1.57  
    Industrial / Warehouse   423,634   5.3     54.8     1.65  
    Non-Medical Office   189,617   2.4     51.1     1.65  
    Medical Office   118,547   1.5     60.0     1.46  
    Single Purpose   95,041   1.2     54.8     3.14  
    Other   173,849   2.2     51.3     1.75  
    Total $ 1,739,920   21.9 %   54.4 %   1.67 x
                     
    Total Multifamily and Commercial Real Estate Loans $ 3,997,291   50.1 %   55.7 %   1.73 x
                           

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

    About Columbia Financial, Inc.

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

    Forward Looking Statements

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

    Non-GAAP Financial Measures

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

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

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

     
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Financial Condition
    (In thousands)
     
      March 31,   December 31,
      2025   2024
    Assets (Unaudited)    
    Cash and due from banks $ 255,978     $ 289,113  
    Short-term investments   111       110  
    Total cash and cash equivalents   256,089       289,223  
           
    Debt securities available for sale, at fair value   1,077,331       1,025,946  
    Debt securities held to maturity, at amortized cost (fair value of $364,428, and $350,153 at March 31, 2025 and December 31, 2024, respectively)   400,975       392,840  
    Equity securities, at fair value   6,981       6,673  
    Federal Home Loan Bank stock   61,628       60,387  
           
    Loans receivable   8,027,308       7,916,928  
    Less: allowance for credit losses   62,034       59,958  
    Loans receivable, net   7,965,274       7,856,970  
           
    Accrued interest receivable   41,902       40,383  
    Office properties and equipment, net   82,592       81,772  
    Bank-owned life insurance   276,767       274,908  
    Goodwill and intangible assets   120,487       121,008  
    Other real estate owned   1,334       1,334  
    Other assets   316,490       324,049  
    Total assets $ 10,607,850     $ 10,475,493  
           
    Liabilities and Stockholders’ Equity      
    Liabilities:      
    Deposits $ 8,194,935     $ 8,096,149  
    Borrowings   1,107,588       1,080,600  
    Advance payments by borrowers for taxes and insurance   47,275       45,453  
    Accrued expenses and other liabilities   157,709       172,915  
    Total liabilities   9,507,507       9,395,117  
           
    Stockholders’ equity:      
    Total stockholders’ equity   1,100,343       1,080,376  
    Total liabilities and stockholders’ equity $ 10,607,850     $ 10,475,493  
     
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Loss)
    (In thousands, except per share data)
     
      Three Months Ended
    March 31,
      2025   2024
    Interest income: (Unaudited)
    Loans receivable $ 95,110     $ 92,949  
    Debt securities available for sale and equity securities   9,742       7,785  
    Debt securities held to maturity   2,811       2,369  
    Federal funds and interest-earning deposits   2,858       3,563  
    Federal Home Loan Bank stock dividends   1,642       1,961  
    Total interest income   112,163       108,627  
    Interest expense:      
    Deposits   50,145       48,418  
    Borrowings   11,693       18,009  
    Total interest expense   61,838       66,427  
           
    Net interest income   50,325       42,200  
           
    Provision for credit losses   2,933       5,278  
           
    Net interest income after provision for credit losses   47,392       36,922  
           
    Non-interest income:      
    Demand deposit account fees   1,888       1,413  
    Bank-owned life insurance   1,859       1,780  
    Title insurance fees   646       503  
    Loan fees and service charges   1,056       961  
    Loss on securities transactions   —       (1,256 )
    Change in fair value of equity securities   308       351  
    Gain on sale of loans   515       185  
    Other non-interest income   2,199       3,515  
    Total non-interest income   8,471       7,452  
           
    Non-interest expense:      
    Compensation and employee benefits   28,583       27,513  
    Occupancy   6,185       5,973  
    Federal deposit insurance premiums   1,880       2,355  
    Advertising   531       626  
    Professional fees   2,515       4,634  
    Data processing and software expenses   4,061       3,967  
    Merger-related expenses   —       22  
    Other non-interest expense, net   90       568  
    Total non-interest expense   43,845       45,658  
           
    Income (loss) before income tax expense (benefit)   12,018       (1,284 )
           
    Income tax expense (benefit)   3,118       (129 )
           
    Net income (loss) $ 8,900     $ (1,155 )
           
    Earnings (loss) per share-basic $ 0.09     $ (0.01 )
    Earnings (loss) per share-diluted $ 0.09     $ (0.01 )
    Weighted average shares outstanding-basic   101,816,716       101,746,740  
    Weighted average shares outstanding-diluted   101,816,716       101,988,425  
     
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
     
      For the Three Months Ended March 31,
        2025       2024  
      Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost   Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost
      (Dollars in thousands)
    Interest-earnings assets:                      
    Loans $ 7,894,561     $ 95,110   4.89 %   $ 7,802,865     $ 92,949   4.79 %
    Securities   1,477,537       12,553   3.45 %     1,543,734       10,154   2.65 %
    Other interest-earning assets   317,433       4,500   5.75 %     366,343       5,524   6.06 %
    Total interest-earning assets   9,689,531       112,163   4.69 %     9,712,942       108,627   4.50 %
    Non-interest-earning assets   873,451               855,618          
    Total assets $ 10,562,982             $ 10,568,560          
                           
    Interest-bearing liabilities:                      
    Interest-bearing demand $ 2,060,528     $ 13,172   2.59 %   $ 1,998,749     $ 13,384   2.69 %
    Money market accounts   1,282,241       7,606   2.41 %     1,234,943       8,769   2.86 %
    Savings and club deposits   649,257       1,108   0.69 %     688,535       1,236   0.72 %
    Certificates of deposit   2,756,895       28,259   4.16 %     2,516,323       25,029   4.00 %
    Total interest-bearing deposits   6,748,921       50,145   3.01 %     6,438,550       48,418   3.02 %
    FHLB advances   1,060,911       11,554   4.42 %     1,447,143       17,847   4.96 %
    Junior subordinated debentures   7,040       139   8.01 %     7,018       162   9.28 %
    Total borrowings   1,067,951       11,693   4.44 %     1,454,161       18,009   4.98 %
    Total interest-bearing liabilities   7,816,872     $ 61,838   3.21 %     7,892,711     $ 66,427   3.38 %
                           
    Non-interest-bearing liabilities:                      
    Non-interest-bearing deposits   1,432,837               1,392,274          
    Other non-interest-bearing liabilities   222,604               240,798          
    Total liabilities   9,472,313               9,525,783          
    Total stockholders’ equity   1,090,669               1,042,777          
    Total liabilities and stockholders’ equity $ 10,562,982             $ 10,568,560          
                           
    Net interest income     $ 50,325           $ 42,200    
    Interest rate spread         1.48 %           1.12 %
    Net interest-earning assets $ 1,872,659             $ 1,820,231          
    Net interest margin         2.11 %           1.75 %
    Ratio of interest-earning assets to interest-bearing liabilities   123.96 %             123.06 %        
     
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Components of Net Interest Rate Spread and Margin
     
      Average Yields/Costs by Quarter
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Yield on interest-earning assets:                  
    Loans 4.89 %   4.88 %   5.00 %   4.93 %   4.79 %
    Securities 3.45     2.99     2.90     2.89     2.65  
    Other interest-earning assets 5.75     6.00     6.72     6.30     6.06  
    Total interest-earning assets 4.69 %   4.61 %   4.70 %   4.64 %   4.50 %
                       
    Cost of interest-bearing liabilities:                  
    Total interest-bearing deposits 3.01 %   3.13 %   3.21 %   3.14 %   3.02 %
    Total borrowings 4.44     4.65     4.87     4.92     4.98  
    Total interest-bearing liabilities 3.21 %   3.38 %   3.52 %   3.49 %   3.38 %
                       
    Interest rate spread 1.48 %   1.23 %   1.18 %   1.15 %   1.12 %
    Net interest margin 2.11 %   1.88 %   1.84 %   1.81 %   1.75 %
                       
    Ratio of interest-earning assets to interest-bearing liabilities 123.96 %   124.02 %   123.06 %   123.03 %   123.06 %
     
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Selected Financial Highlights
       
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    SELECTED FINANCIAL RATIOS (1):                  
    Return on average assets 0.34 %   (0.79 )%   0.23 %   0.17 %   (0.04 )%
    Core return on average assets 0.35 %   0.42 %   0.23 %   0.20 %   0.02 %
    Return on average equity 3.31 %   (7.86 )%   2.32 %   1.77 %   (0.45 )%
    Core return on average equity 3.37 %   4.09 %   2.29 %   2.06 %   0.18 %
    Core return on average tangible equity 3.78 %   4.74 %   2.58 %   2.34 %   0.20 %
    Interest rate spread 1.48 %   1.23 %   1.18 %   1.15 %   1.12 %
    Net interest margin 2.11 %   1.88 %   1.84 %   1.81 %   1.75 %
    Non-interest income to average assets 0.33 %   (0.88 )%   0.33 %   0.35 %   0.28 %
    Non-interest expense to average assets 1.68 %   1.73 %   1.60 %   1.74 %   1.74 %
    Efficiency ratio 74.57 %   205.17 %   78.95 %   86.83 %   91.96 %
    Core efficiency ratio 74.20 %   73.68 %   79.14 %   85.34 %   88.39 %
    Average interest-earning assets to average interest-bearing liabilities 123.96 %   124.02 %   123.06 %   123.03 %   123.06 %
    Net charge-offs to average outstanding loans 0.04 %   0.07 %   0.14 %   0.03 %   0.26 %
                       
    (1) Ratios are annualized when appropriate.
       
    ASSET QUALITY DATA:  
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
      (Dollars in thousands)
                       
    Non-accrual loans $ 24,856     $ 21,701     $ 28,014     $ 25,281     $ 22,935  
    90+ and still accruing   —       —       —       —       —  
    Non-performing loans   24,856       21,701       28,014       25,281       22,935  
    Real estate owned   1,334       1,334       1,974       1,974       —  
    Total non-performing assets $ 26,190     $ 23,035     $ 29,988     $ 27,255     $ 22,935  
                       
    Non-performing loans to total gross loans   0.31 %     0.28 %     0.36 %     0.33 %     0.30 %
    Non-performing assets to total assets   0.25 %     0.22 %     0.28 %     0.25 %     0.22 %
    Allowance for credit losses on loans (“ACL”) $ 62,034     $ 59,958     $ 58,495     $ 57,062     $ 55,401  
    ACL to total non-performing loans   249.57 %     276.29 %     208.81 %     225.71 %     241.56 %
    ACL to gross loans   0.78 %     0.76 %     0.75 %     0.73 %     0.71 %
       
    LOAN DATA:  
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
      (In thousands)
    Real estate loans:          
    One-to-four family $ 2,676,566     $ 2,710,937     $ 2,737,190     $ 2,764,177     $ 2,778,932  
    Multifamily   1,567,862       1,460,641       1,399,000       1,409,316       1,429,369  
    Commercial real estate   2,429,429       2,339,883       2,312,759       2,316,252       2,318,178  
    Construction   437,081       473,573       510,439       462,880       437,566  
    Commercial business loans   614,049       622,000       586,447       554,768       538,260  
    Consumer loans:                  
    Home equity loans and advances   253,439       259,009       261,041       260,427       260,786  
    Other consumer loans   2,547       3,404       2,877       2,689       2,601  
    Total gross loans   7,980,973       7,869,447       7,809,753       7,770,509       7,765,692  
    Purchased credit deteriorated loans   10,395       11,686       11,795       12,150       14,945  
    Net deferred loan costs, fees and purchased premiums and discounts   35,940       35,795       35,642       36,352       34,992  
    Allowance for credit losses   (62,034 )     (59,958 )     (58,495 )     (57,062 )     (55,401 )
    Loans receivable, net $ 7,965,274     $ 7,856,970     $ 7,798,695     $ 7,761,949     $ 7,760,228  
           
    CAPITAL RATIOS:      
      March 31,   December 31,
      2025 (1)   2024 
    Company:      
    Total capital (to risk-weighted assets) 14.12 %   14.20 %
    Tier 1 capital (to risk-weighted assets) 13.30 %   13.40 %
    Common equity tier 1 capital (to risk-weighted assets) 13.21 %   13.31 %
    Tier 1 capital (to adjusted total assets) 10.29 %   10.02 %
           
    Columbia Bank:      
    Total capital (to risk-weighted assets) 14.37 %   14.41 %
    Tier 1 capital (to risk-weighted assets) 13.51 %   13.56 %
    Common equity tier 1 capital (to risk-weighted assets) 13.51 %   13.56 %
    Tier 1 capital (to adjusted total assets) 9.88 %   9.64 %
           
    (1) Estimated ratios at March 31, 2025      
     
    Reconciliation of GAAP to Non-GAAP Financial Measures
           
    Book and Tangible Book Value per Share
      March 31,   December 31,
      2025   2024
      (Dollars in thousands)
       
    Total stockholders’ equity $ 1,100,343     $ 1,080,376  
    Less: goodwill   (110,715 )     (110,715 )
    Less: core deposit intangible   (8,443 )     (8,964 )
    Total tangible stockholders’ equity $ 981,185     $ 960,697  
           
    Shares outstanding   104,930,900       104,759,185  
           
    Book value per share $ 10.49     $ 10.31  
    Tangible book value per share $ 9.35     $ 9.17  
           
    Reconciliation of Core Net Income      
      Three Months Ended March 31,
        2025       2024  
      (In thousands)
           
    Net income (loss) $ 8,900     $ (1,155 )
    Add: loss on securities transactions, net of tax   —       1,130  
    Add: FDIC special assessment, net of tax   —       393  
    Add: severance expense, net of tax   163       67  
    Add: merger-related expenses, net of tax   —       20  
    Core net income $ 9,063     $ 455  
    Return on Average Assets      
      Three Months Ended March 31,
      2025   2024
      (Dollars in thousands)
           
    Net income (loss) $ 8,900     $ (1,155 )
           
    Average assets $ 10,562,982     $ 10,568,560  
           
    Return on average assets   0.34 %   (0.04 )%
           
    Core net income $ 9,063     $ 455  
           
    Core return on average assets   0.35 %     0.02 %
     
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
           
    Return on Average Equity      
      Three Months Ended March 31,
      2025   2024
      (Dollars in thousands)
           
    Total average stockholders’ equity $ 1,090,669     $ 1,042,777  
    Add: loss on securities transactions, net of tax   —       1,130  
    Add: FDIC special assessment, net of tax   —       393  
    Add: severance expense, net of tax   163       67  
    Add: merger-related expenses, net of tax   —       20  
    Core average stockholders’ equity $ 1,090,832     $ 1,044,387  
           
    Return on average equity   3.31 %   (0.45 )%
           
    Core return on core average equity   3.37 %     0.18 %
     
    Return on Average Tangible Equity
      Three Months Ended March 31,
      2025   2024
      (Dollars in thousands)
           
    Total average stockholders’ equity $ 1,090,669     $ 1,042,777  
    Less: average goodwill   (110,715 )     (110,715 )
    Less: average core deposit intangible   (8,784 )     (10,956 )
    Total average tangible stockholders’ equity $ 971,170     $ 921,106  
           
    Core return on average tangible equity   3.78 %     0.20 %
     
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
           
    Efficiency Ratios      
      Three Months Ended March 31,
      2025   2024
      (Dollars in thousands)
           
    Net interest income $ 50,325     $ 42,200  
    Non-interest income   8,471       7,452  
    Total income $ 58,796     $ 49,652  
           
    Non-interest expense $ 43,845     $ 45,658  
           
    Efficiency ratio   74.57 %     91.96 %
           
    Non-interest income $ 8,471     $ 7,452  
    Add: loss on securities transactions   —       1,256  
    Core non-interest income $ 8,471     $ 8,708  
           
    Non-interest expense $ 43,845     $ 45,658  
    Less: FDIC special assessment, net   —       (565 )
    Less: severance expense   (220 )     (74 )
    Less: merger-related expenses   —       (22 )
    Core non-interest expense $ 43,625     $ 44,997  
           
    Core efficiency ratio   74.20 %     88.39 %
                   

    Columbia Financial, Inc.
    Investor Relations Department
    (833) 550-0717

    The MIL Network –

  • MIL-OSI: Delisting of Securities of TLGY Acquisition Corporation; Target Global Acquisition I Corp.; Inception Growth Acquisition Limited; Healthcare AI Acquisition Corp.; Globalink Investment Inc.; BurTech Acquisition Corp; Mountain & Co. I Acquisition Corp.; Pearl Holdings Acquisition Corp; Alpha Star Acquisition Corporation; CF Acquisition Corp. VII; Kairous Acquisition Corp. Limited; Finnovate Acquisition Corp.; Exela Technologies, Inc.; Investcorp Europe Acquisition Corp I; Molecular Templates, Inc.

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) — The Nasdaq Stock Market announced today that it will delist the Class A common stock of Alpine 4 Holdings, Inc. Alpine 4 Holdings, Inc.’s stock was suspended on October 18, 2024 and has not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the common stock of Orgenesis Inc. Orgenesis Inc.’s stock was suspended on October 21, 2024 and has not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the common stock of ShiftPixy, Inc. ShiftPixy, Inc.’s stock was suspended on October 28, 2024 and has not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the common stock of Novo Integrated Sciences, Inc. Novo Integrated Sciences, Inc.’s stock was suspended on November 6, 2024 and has not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of Mountain & Co. I Acquisition Corp. Mountain & Co. I Acquisition Corp.’s securities were suspended on November 7, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the common stock and 6.00% Series B Cumulative Convertible Perpetual Preferred Stock of Exela Technologies, Inc. Exela Technologies, Inc.’s securities were suspended on November 8, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of Finnovate Acquisition Corp. Finnovate Acquisition Corp.’s securities were suspended on November 12, 2024 and has not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the Class A common stock of Mondee Holdings, Inc. Mondee Holdings, Inc.’s stock was suspended on December 6, 2024 and has not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of TLGY Acquisition Corporation. TLGY Acquisition Corporation’s securities were suspended on December 9, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the Class A ordinary shares, warrants, and units of Target Global Acquisition I Corp. Target Global Acquisition I Corp.’s securities were suspended on December 17, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the common stock, warrants, units, and rights of Inception Growth Acquisition Limited. Inception Growth Acquisition Limited’s securities were suspended on December 17, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of Healthcare AI Acquisition Corp. Healthcare AI Acquisition Corp.’s securities were suspended on December 17, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the common stock, warrants, rights, and units of Globalink Investment Inc. Globalink Investment Inc.’s securities were suspended on December 17, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the unit of BurTech Acquisition Corp. BurTech Acquisition Corp.’s security was suspended on December 18, 2024 and has not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of Pearl Holdings Acquisition Corp. Pearl Holdings Acquisition Corp’s securities were suspended on December 23, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the ordinary shares, warrants, rights, and units of Alpha Star Acquisition Corporation. Alpha Star Acquisition Corporation’s securities were suspended on December 23, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the Class A common stock, warrants, and units of CF Acquisition Corp VII. CF Acquisition Corp. VII’s securities were suspended on December 23, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the ordinary shares, rights, units, and warrants of Kairous Acquisition Corp Limited. Kairous Acquisition Corp. Limited’s securities were suspended on December 23, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the Class A ordinary shares, units, and warrants of Investcorp Europe Acquisition Corp I. Investcorp Europe Acquisition Corp I’s securities were suspended on December 24, 2024 and have not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the unit of FTAC Emerald Acquisition Corp. FTAC Emerald Acquisition Corp.’s security was suspended on December 24, 2024 and has not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the common stock of Molecular Templates, Inc. Molecular Templates, Inc.’s stock was suspended on December 26, 2024 and has not traded on Nasdaq since that time.

    Nasdaq also announced today that it will delist the common stock, warrants, and rights of NorthView Acquisition Corporation. NorthView Acquisition Corporation’s securities were suspended on December 27, 2024 and have not traded on Nasdaq since that time.

    For more information about The Nasdaq Stock Market, visit the Nasdaq Web site at http://www.nasdaq.com. Nasdaq’s rules governing the delisting of securities can be found in the Nasdaq Rule 5800 Series, available on the Nasdaq Web site: https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5800-series.

    The MIL Network –