Category: Machine Learning

  • MIL-OSI United Nations: 27 February 2025 Departmental update Protecting millions of vulnerable people from essential hiv service disruptions

    Source: World Health Organisation

    Prevention, testing and treatment services for HIV, viral hepatitis and sexually transmitted infections (STI) have driven unprecedented progress in improving population health over the past two decades, with millions of new HIV infections and AIDS-related deaths averted.

    Foreign aid investments in the global HIV response, such as the United States President’s Emergency Plan for AIDS Relief (PEPFAR) and the Global Fund on AIDS, TB and Malaria, have been pivotal to this success, also contributing significantly to progress towards elimination of hepatitis B and C, and STI control. However, abrupt disruptions to foreign aid and service delivery threaten these gains, putting millions of people at risk – especially people living with HIV and key and vulnerable populations.

    Many essential evidence-based prevention interventions, including HIV pre-exposure prophylaxis (PrEP), harm reduction services for people who inject drugs, and community-led programmes have been permanently halted.

    Early reports shared with WHO indicate that prevention and treatment services for key populations are those most affected. Reports include the closure of health centres delivering prevention, testing and treatment interventions for key populations previously supported by U.S. funding. These disruptions are resulting in staffing shortages, supply chain interruptions, and increased barriers to access, leaving key populations – including gay men and other men who have sex with men, sex workers, people who inject drugs, people in prisons, and trans and gender diverse individuals – vulnerable to infection and death, as well as increased stigma and discrimination.

    These developments compromise the ability of service providers to deliver on foundational WHO recommendations that: 

    • all people living with HIV should receive same-day antiretroviral treatment (ART) both to improve their health and to prevent further transmission by achieving sustained viral load suppression; 
    • there should be uninterrupted access to ART for all populations, including key populations living with HIV, during service disruptions; and 
    • person-centred approaches should be implemented and non-judgemental, discrimination-free environments created to foster trust, encourage consistent engagement in care, and support re-engagement for those who may have dropped out of treatment.

    Essential prevention services must remain a priority

    Ensuring that key populations can access prevention services that are free of discrimination is central to HIV, hepatitis and STI responses. Community-based services have consistently proven effective in increasing access and acceptability of programmes, buffering the effects of stigma and discrimination. These programmes facilitate the delivery of interventions that have been proven effective through rigorous scientific research, and that are recommended by WHO to protect people from new infections and harm.

    Core WHO-recommended essential prevention services include condoms and lubricants; testing for HIV, hepatitis B and C, and other STIs; HIV post-exposure prophylaxis and pre-exposure prophylaxis; and harm reduction activities including distribution of needles and syringes, of naloxone to prevent deaths from overdose, and opioid agonist maintenance treatment programmes.

    Commitment to sustainable financing and integrated health systems

    As countries and ministries of health work to mitigate the impact of service disruptions, they must pursue long-term solutions, including sustainable domestic financing to protect these vital health services. This is essential for maintaining the downward trend in HIV incidence and mortality, and to progress toward hepatitis elimination and STI control. 

    WHO also emphasizes the value of an integrated approach to HIV, bringing together stigma and discrimination-free services for tuberculosis, viral hepatitis, sexual and reproductive health, and noncommunicable diseases under the umbrella of strong primary health care. Integrating HIV leads to resource optimization and improvements in overall population health. 

    WHO remains committed to supporting national governments, partners, and donors in adapting to shifting donor support to safeguard the health and well-being of those most vulnerable to HIV, viral hepatitis and STIs.

    MIL OSI United Nations News

  • MIL-OSI Security: Delta Junction Woman Sentenced for Interfering with Joint Military Operations with a High-Powered Laser

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

    FAIRBANKS, Alaska – A Delta Junction woman was sentenced today to three years’ probation after she interfered with joint military operations by pointing a high-powered laser at two helicopters.

    According to court documents, on Feb. 11, 2024, Canadian Military Aircrews were flying in two tactical helicopter squadrons near Allen Army Airfield near Delta Junction. Anchorage Airport Traffic Control contacted the Alaska State Troopers regarding a report from a Canadian Military Pilot that lasers were being pointed at his aircraft.

    Court documents explain that the pilot stated the aircraft was at about 4,200 feet of elevation, well above minimum flight requirements for that area, and in a holding pattern when one of the crew reported they were being hit with a green laser. The aircraft was orbiting for around 20 minutes and every time they passed over a certain cabin, they got hit with a laser. The aircraft descended to around 500 feet to prepare to land at Allen Army Airfield and got hit with the laser again. One of the crew pinpointed the laser to the certain cabin.

    Court documents further explain that Alaska State Troopers responded to the specific cabin and contacted Heide Goodermote, 49. Goodermote told law enforcement that the helicopters angered her, and further stated the helicopters had no right to fly over her property so she pointed a laser at them.

    On Feb. 15, 2024, law enforcement returned to seize the laser and identified it to be a class IIIB laser, which is a laser that emits between 5 and 500 milliwatts of output power and can cause immediate eye damage or skin burns. Three of the Canadian Air Force helicopter crew members reported injuries to their eyes because of Goodermote’s conduct.

    On Nov. 26, 2024, Goodermote pleaded guilty to a misdemeanor charge of assaulting or impeding certain officers or employees engaged in performing official duties.

    “Ms. Goodermote wrongly believed the helicopters had no right to fly over her property and decided to take matters into her own hands by shining a dangerous laser at the helicopters and crew that could have caused serious damage,” said First Assistant U.S. Attorney Kathryn R. Vogel for the District of Alaska. “We are thankful the incident did not result in substantial loss of life or property, but this case should serve as a reminder that putting other people’s well-being at risk when they are performing official duties as part of U.S. government operations, like a joint military exercise with foreign allies, is a prosecutable offense.”

    The FBI Anchorage Field Office, Fairbanks Resident Agency investigated the case, with assistance from the Alaska State Troopers.

    Assistant U.S. Attorney Carly Vosacek prosecuted the case.

    ###

    MIL Security OSI

  • MIL-OSI: Intchains Group Limited Reports Fourth Quarter and Full Year 2024 Unaudited Financial Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 27, 2025 (GLOBE NEWSWIRE) — Intchains Group Limited (Nasdaq: ICG) (“we,” or the “Company”), a company that engages in the provision of altcoin mining products, the strategic acquisition and holding of Ethereum-based cryptocurrencies, and the active development of innovative Web3 applications, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024.

    Fourth Quarter 2024 Operating and Financial Highlights

    • Sales Volume of Altcoin Mining Products Measured by Number of Embedded ASIC Chips: Since we offer a wide range of altcoin mining products, with each unit incorporating anywhere from tens to thousands of ASIC chips, it is more meaningful to measure the sales of our altcoin mining products by the number of embedded ASIC chips. Our sales volume of ASIC chips for Q4 2024 was 1,705,408 units, compared to 423,040 units for the same period last year, representing an increase of 303.1%.
    • Revenue: Our revenue for Q4 2024 reached RMB74.2 million (US$10.2 million), reflecting a significant increase of 109.2% from RMB35.5 million for the same period of 2023. For the fourth quarter of 2024, revenue derived from mainland China and overseas countries and regions accounted for 67.0% and 33.0% of our total revenue, respectively.
    • Net Income: Our net income for Q4 2024 was RMB12.8 million (US$1.8 million), reflecting an increase of 58.2% from RMB8.1 million for the same period in 2023.
    • Non-GAAP Adjusted Net Income: Non-GAAP adjusted net income in the fourth quarter of 2024 was RMB14.8 million (US$2.0 million), reflecting an increase of 54.2% from RMB9.6 million for the same period in 2023. Non-GAAP adjusted net income excludes share-based compensation expenses. For further information, please refer to “Use of Non-GAAP Financial Measures” in this press release.
    • Cryptocurrency Assets: As of December 31, 2024, the fair value of our cryptocurrency assets other than stablecoins such as USDT and USDC was RMB148.8 million (US$20.4 million), primarily comprised of approximately 5,702 ETH-based cryptocurrencies, valued at RMB141.2 million (US$19.3 million).

    Full Year 2024 Operating and Financial Highlights

    • Sales Volume of Altcoin Mining Products Measured by Number of Embedded ASIC Chips: Our sales volume of ASIC chips achieved 2,681,500 units for the year ended December 31, 2024, representing a year-over-year increase of 84.0% from 1,457,373 units for 2023.
    • Revenue: Our revenue was RMB281.8 million (US$38.6 million) for the year ended December 31, 2024, representing a year-over-year increase of 242.7% from RMB82.2 million for 2023. For the year ended December 31, 2024, revenue derived from mainland China and overseas countries and regions accounted for 45.5% and 54.5% of our total revenue, respectively.
    • Net Income: Our net income was RMB51.5 million (US$7.1 million) for the year ended December 31, 2024, compared to a net loss of RMB26.8 million for 2023.
    • Non-GAAP Adjusted Net Income: Non-GAAP adjusted net income for the year ended December 31, 2024 was RMB60.5 million (US$8.3 million), compared to a net loss of RMB23.3 million for 2023. Non-GAAP adjusted net income excludes share-based compensation expenses. For further information, please refer to “Use of Non-GAAP Financial Measures” in this press release.

    Intchains Group Achieves Milestones in Innovative Solutions and Cryptocurrency Strategy

    Mr. Qiang Ding, Chairman of the Board of Directors and Chief Executive Officer, commented, “The cryptocurrency market showed strong performance in Q4 2024, with growing optimism from major financial institutions about its prospects for 2025. Riding this momentum, Dogecoin saw solid price growth during the quarter. As a leading supplier of Dogecoin mining machines, the Company also delivered satisfactory operational results in Q4 2024. The growth rate of net profit in Q4 was slower than that of revenue, primarily due to the Company’s research and development expenses for the launch of new projects in 2025. the Company expects that the increased investment in research and development will better drive the Company’s operational performance in 2025. Throughout this quarter, the Company continued its Ethereum treasury strategy, increasing its ETH holdings by 37% compared to Q3 2024 in terms of units of ETH held at the end of the quarter, The combination of rising Ethereum prices and an expanded ETH portfolio had a positive impact on net profit, further strengthening the company’s financial position.

    Looking ahead to 2025, the Company remains committed to expanding its presence in altcoin development. In February 2025, the Company introduced the AE BOX series of mining products, positioning itself as an early mover in Aleo mining. The Company will also continue upgrading its Dogecoin mining machines, reinforcing its industry leadership. Additionally, it will maintain its Ethereum treasury strategy throughout the year. On the application front, the Company took a significant step in Web3 payments with the launch of Goldshell Wallet in February 2025. This expansion reflects the Company’s commitment to broadening its Web3 ecosystem.”

    Fourth Quarter 2024 Financial Results

    Revenue

    Revenue was RMB74.2 million (US$10.2 million) for the fourth quarter of 2024, representing an increase of 109.2% from RMB35.5 million for the same period in 2023. The substantial growth was primarily driven by a significant increase in demand for our altcoin mining products, fueled by improved cryptocurrency market performance.

    Cost of Revenue

    Cost of revenue was RMB54.8 million (US$7.5 million) for the fourth quarter of 2024, representing an increase of 287.4% from RMB14.1 million for the same period of 2023. The percentage increase in cost of revenue was higher than the percentage increase in our revenue, which was primarily due to the lower gross margins for the series of mining products we primarily sold in the fourth quarter of 2024, compared to the same period last year.

    Operating Expenses

    Total operating expenses were RMB56.0million (US$7.7 million) for the fourth quarter of 2024, representing an increase of 145.8% from RMB22.8 million for the same period of 2023. The increase was primarily due to an increase in research and development expenses.

    • Research and development expenses increased by 228.7% to RMB45.9 million (US$6.3 million) for the fourth quarter of 2024 from RMB14.0 million for the same period of 2023. The increase was primarily due to higher expenses related to preliminary research costs conducted for new projects, as well as increased personnel-related expenses.
    • Sales and marketing expenses increased by 62.1% to RMB2.9 million (US$0.4 million) for the fourth quarter of 2024 from RMB1.8 million for the same period of 2023, mainly driven by increased personnel-related expenses.
    • General and administrative expenses remained relatively steady at RMB7.0 million and RMB7.2 million (US$1.0 million), respectively, for the fourth quarter of 2023 and 2024.

    Interest Income

    Interest income decreased by 11.1% to RMB3.8 million (US$0.5 million) for the fourth quarter of 2024 from RMB4.2 million for the same period of 2023, mainly due to a reduced cash balance resulting from our strategy of using part of our operating cash flow to acquire and hold ETH-based cryptocurrencies.

    Gain on fair value of cryptocurrency, net

    Gain on fair value of cryptocurrency, net, for the fourth quarter of 2024 was RMB29.2 million (US$4.0 million), compared to nil in the same period of 2023. The gain was primarily due to an approximately 31.5% increase in the price of ETH and an approximately 37.4% increase in the number of ETH-based cryptocurrency units held from the end of the third quarter of 2024 to the end of the fourth quarter of 2024.

    Other Income, Net

    Other income, net, decreased by 29.8% to RMB5.2 million (US$0.7 million) for the fourth quarter of 2024 from RMB7.5 million for the same period of 2023, primarily due to the decrease in grants received from the local government, which have no repayment obligations.

    Net Income

    As a result of the foregoing, our net income increased by 58.2% to RMB12.8 million (US$1.8 million) for the fourth quarter of 2024 from RMB8.1 million for the same period of 2023.

    Non-GAAP Adjusted Net Income

    Non-GAAP adjusted net income increased by 54.2% to RMB14.8 million (US$2.0 million) for the fourth quarter of 2024 from RMB9.6 million for the same period of 2023.

    Basic and Diluted Net Earnings Per Ordinary Share

    Basic and diluted net earnings per ordinary share both increased by 57.1% to RMB0.11 (US$0.01) for the fourth quarter of 2024 from RMB0.07 for the same period of 2023.

    Non-GAAP Basic and Diluted Net Earnings Per Ordinary Share

    Non-GAAP adjusted basic and diluted net earnings per ordinary share increased by 50.2% to RMB0.12 (US$0.02) for the fourth quarter of 2024 from RMB0.08 for the same period of 2023. Each ADS represents two of the Company’s Class A ordinary shares.

    Full Year 2024 Financial Results

    Revenue

    Revenue was RMB281.8 million (US$38.6 million) in 2024, representing an increase of 242.7% from RMB82.2 million in 2023. The substantial growth was primarily driven by a significant increase in the average selling price of our new products launched in March 2024, compared to older products, as well as improved cryptocurrency market performance, which led to higher demand for our products.

    Cost of Revenue

    Cost of revenue was RMB130.5 million (US$17.9 million) for the year ended December 31, 2024, representing an increase of 78.3% from RMB73.1 million for 2023. The percentage increase in cost of revenue was substantially lower than the percentage increase in our revenue, which was primarily due to the higher gross margins for our new products launched in March 2024 compared to the older products.

    Operating Expenses

    Total operating expenses were RMB148.2 million (US$20.3 million) for 2024, representing an increase of 100.1% from RMB74.0 million for 2023. The increase was primarily due to an increase in research and development expenses.

    • Research and development expenses increased by 158.7% to RMB109.4 million (US$15.0 million) for 2024 from RMB42.3 million for 2023. The increase was primarily due to more products launched in 2024, as well as increased personnel-related expenses.
    • Sales and marketing expenses increased by 29.6% to RMB8.5 million (US$1.2 million) for 2024 from RMB6.5 million for 2023, mainly driven by increased personnel-related expenses.
    • General and administrative expenses increased by 20.0% to RMB30.2 million (US$4.1 million) for 2024 from RMB25.2 million for 2023, primarily due to increased personnel-related expenses and increased amortization expenses of trademarks.

    Interest Income

    Interest income remained relatively steady at RMB16.8 million and RMB16.2 million (US$2.2 million), respectively, for the year ended December 31, 2023 and 2024.

    Gain on fair value of cryptocurrency, net

    Gain on fair value of cryptocurrency, net, for 2024 was RMB21.3 million (US$2.9 million), compared to nil for 2023. The gain was primarily due to ETH closing price rising approximately 48.6% from the end of 2023 to the end of 2024, as well as units of ETH-based cryptocurrencies held increased from approximately 60 from the end of 2023 to 5,702 from the end of 2024.

    Other Income, Net

    Other income, net, decreased by 38.7% to RMB8.1 million (US$1.1 million) for 2024 from RMB13.2 million for 2023, primarily due to the decrease in grants received from the local government, which have no repayment obligations.

    Net Income/(loss)

    As a result of the foregoing, we recorded a net income of RMB51.5 million (US$7.1 million) for the year ended December 31, 2024, compared to a net loss of RMB26.8 million for the year ended December 31, 2023.

    Basic and Diluted Net Earnings/(Losses) Per Ordinary Share

    Basic and diluted net earnings per ordinary share were both RMB0.43 (US$0.06) for the year ended December 31, 2024, compared to basic and diluted net loss per ordinary share of RMB0.22 for the year ended December 31, 2023.

    Non-GAAP Basic and Diluted Net Earnings/(Losses) Per Ordinary Share

    Non-GAAP adjusted basic and diluted net income per ordinary share was RMB0.50 (US$0.07) for the year ended December 31, 2024, compared to Non-GAAP adjusted basic and diluted net loss per ordinary share of RMB0.20 for the year ended December 31, 2023. Each ADS represents two of the Company’s Class A ordinary shares.

    Recent Development

    Aleo Mining: On February 7, 2025, the Company launched AE BOX series of cutting-edge mining products for Aleo, establishing itself as a pioneer in Aleo mining solutions. This marks the Company’s first venture into the zero-knowledge proof sector, further reinforcing its deep expertise and innovation in the altcoin space.

    Goldshell Wallet: On February 26, 2025, the Company introduced the Goldshell Wallet, an air-gapped, triple-secured wallet designed for maximum security and seamless user experience. Currently in their trial stage, Goldshell Wallet is not expected to contribute materially to our profits during this phase. However, we believe they represent an important step toward becoming a company with a stable application development pipeline and the ability to navigate across the crypto cycle.

    Conference Call Information

    The Company’s management team will host an earnings conference call to discuss its financial results at 8:00 PM U.S. Eastern Time on February 27, 2025 (9:00 AM Beijing Time on February 28, 2025). Details for the conference call are as follows:

    All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of dial-in numbers and a personal access PIN, which will be used to join the conference call.

    Additionally, a live and archived webcast of the conference call will also be available at the Company’s website at https://intchains.com/.

    About Intchains Group Limited

    Intchains Group Limited is a company that engages in the provision of altcoin mining products, the strategic acquisition and holding of Ethereum-based cryptocurrencies, and the active development of innovative Web3 applications. For more information, please visit the Company’s website at: https://intchains.com/.

    Exchange Rate Information

    The unaudited United States dollar (“US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00=RMB7.2993 on the last trading day of the fourth quarter of 2024 (December 31, 2024). No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

    Forward-Looking Statements

    Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Forward-looking statements include, but are not limited to, statements about: (i) our goals and strategies; (ii) our future business development, formed condition and results of operations; (iii) expected changes in our revenue, costs or expenditures; (iv) growth of and competition trends in our industry; (v) our expectations regarding demand for, and market acceptance of, our products; (vi) general economic and business conditions in the markets in which we operate; (vii) relevant government policies and regulations relating to our business and industry; (viii) fluctuations in the market price of ETH-based cryptocurrencies; gains or losses from the sale of ETH-based cryptocurrencies; changes in accounting treatment for the Company’s ETH-based cryptocurrencies holdings; a decrease in liquidity in the markets in which ETH-based cryptocurrencies are traded; security breaches, cyberattacks, unauthorized access, loss of private keys, fraud, or other events leading to the loss of the Company’s ETH-based cryptocurrencies; impacts to the price and rate of adoption of ETH-based cryptocurrencies associated with financial difficulties and bankruptcies of various participants in the industry; and (viii) assumptions underlying or related to any of the foregoing. Investors can identify these forward-looking statements by words or phrases such as “may,” “could,” “will,” “should,” “would,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “project” or “continue” or the negative of these terms or other comparable terminology. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

    Use of Non-GAAP Financial Measures

    In evaluating Company’s business, the Company uses non-GAAP measures, such as adjusted income (loss) from operations and adjusted net income (loss), as supplemental measures to review and assess its operating performance. The Company defines adjusted income (loss) from operations as income (loss) from operations excluding share-based compensation expenses, and adjusted net income (loss) as net income (loss) excluding share-based compensation expenses. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

    The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools and investors should not consider them in isolation, or as a substitute for net income, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. One of the key limitations of using adjusted net income is that it does not reflect all of the items of income and expense that affect the Company’s operations. Share-based compensation expenses have been and may continue to be incurred in Company’s business and are not reflected in the presentation of adjusted net income. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

    For investor and media inquiries, please contact:

    Intchains Group Limited

    Investor relations
    Email: ir@intchains.com

    Redhill

    Belinda Chan
    Tel: +852-9379-3045
    Email: belinda.chan@creativegp.com

     
    INTCHAINS GROUP LIMITED
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (All amounts in thousands, except share and per share data, or as otherwise noted)
     
        As of December 31,
        2023   2024
        RMB   RMB
      US$  
    ASSETS            
    Current Assets:            
    Cash and cash equivalents   694,750     322,252     44,148  
    USDC       1,690     232  
    Cryptocurrency-current       30,079     4,121  
    Inventories, net   41,767     98,614     13,510  
    Prepayments and other current assets, net   47,403     69,703     9,549  
    Short-term investments   13,596     198,562     27,203  
    Total current assets   797,516     720,900     98,763  
    Non-current Assets:            
    Cryptocurrency-non-current   645     148,790     20,384  
    Long-term investments       20,569     2,818  
    Property, equipment, and software, net   49,184     157,065     21,518  
    Intangible assets, net   3,425     3,552     487  
    Right-of-use assets   1,735     272     37  
    Deferred tax assets   12,899     28,942     3,965  
    Prepayments on long-term assets   113,425          
    Other non-current assets   421     9,419     1,290  
    Total non-current assets   181,734     368,609     50,499  
    Total assets   979,250     1,089,509     149,262  
    LIABILITIES, AND SHAREHOLDERS’ EQUITY            
    Current Liabilities:            
    Accounts payable   195     14,847     2,034  
    Contract liabilities   9,828     37,447     5,129  
    Income tax payable   1,634     2,023     277  
    Lease liabilities   1,103     272     37  
    Provision for warranty   40     161     22  
    Accrued liabilities and other current liabilities   15,364     21,692     2,971  
    Total current liabilities   28,164     76,442     10,470  
    Non-current Liabilities:            
    Deferred tax liabilities            
    Lease liabilities   761          
    Total non-current liabilities   761          
    Total liabilities   28,925     76,442     10,470  
    Shareholders’ Equity:            
    Ordinary shares (US$0.000001 par value; 50,000,000,000 shares authorized, 119,876,032 and 120,081,456 shares issued, 119,876,032 and 119,962,962 shares outstanding as of December 31, 2023 and December 31, 2024, respectively)   1     1      
    Subscriptions receivable from shareholders   (1 )   (1 )    
    Additional paid-in capital   186,262     195,236     26,747  
    Statutory reserve   48,265     51,762     7,091  
    Accumulated other comprehensive income   1,838     3,777     518  
    Retained earnings   713,960     762,292     104,436  
    Total equity   950,325     1,013,067     138,792  
    Total liabilities and shareholders’ equity   979,250     1,089,509     149,262  
    INTCHAINS GROUP LIMITED
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)
    (All amounts in thousands, except share and per share data, or as otherwise noted)
     
        For the Three Months ended December 31,
        2023   2024
        RMB   RMB
      US$
    Products revenue   35,454     74,177     10,162  
    Cost of revenue   (14,132 )   (54,752 )   (7,501 )
    Gross profit   21,322     19,425     2,661  
    Operating expenses:          
    Research and development expenses   (13,962 )   (45,887 )   (6,286 )
    Sales and marketing expenses   (1,787 )   (2,897 )   (397 )
    General and administrative expenses   (7,040 )   (7,237 )   (991 )
    Total operating expenses   (22,789 )   (56,021 )   (7,674 )
    Loss from operations   (1,467 )   (36,596 )   (5,013 )
    Interest income   4,248     3,778     518  
    Foreign exchange gains/(losses), net   (971 )   2,264     310  
    Gain on fair value of cryptocurrency, net       29,228     4,004  
    Other income, net   7,458     5,237     717  
    Income before income tax expenses   9,268     3,911     536  
    Income tax (expense)/benefit   (1,190 )   8,870     1,215  
    Net Income   8,078     12,781     1,751  
    Foreign currency translation adjustment, net of nil tax   (826 )   4,127     565  
    Total comprehensive income   7,252     16,908     2,316  
               
    Weighted average number of shares used in per share calculation          
    — Basic   119,876,032     119,962,962     119,962,962  
    — Diluted   119,921,358     119,980,895     119,980,895  
    Net earnings per share          
    — Basic   0.07     0.11     0.01  
    — Diluted   0.07     0.11     0.01  
    INTCHAINS GROUP LIMITED
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)
    (All amounts in thousands, except share and per share data, or as otherwise noted)
     
        For the Year ended December 31,
        2023   2024
        RMB   RMB
      US$
    Products revenue   82,225     281,767     38,602  
    Cost of revenue   (73,147 )   (130,452 )   (17,872 )
    Gross profit   9,078     151,315     20,730  
    Operating expenses:          
    Research and development expenses   (42,304 )   (109,443 )   (14,994 )
    Sales and marketing expenses   (6,532 )   (8,468 )   (1,160 )
    General and administrative expenses   (25,210 )   (30,248 )   (4,144 )
    Total operating expenses   (74,046 )   (148,159 )   (20,298 )
    Income/(loss) from operations   (64,968 )   3,156     432  
    Interest income   16,750     16,235     2,224  
    Foreign exchange gains/(losses), net   (524 )   1,382     189  
    Gain on fair value of cryptocurrency, net       21,322     2,921  
    Other income, net   13,191     8,082     1,107  
    Income/(loss) before income tax expenses   (35,551 )   50,177     6,873  
    Income tax benefit   8,756     1,320     181  
    Net Income/(loss)   (26,795 )   51,497     7,054  
    Foreign currency translation adjustment, net of nil tax   1,838     1,939     266  
    Total comprehensive income/(loss)   (24,957 )   53,436     7,320  
               
    Weighted average number of shares used in per share calculation          
    — Basic   119,387,937     119,932,051     119,932,051  
    — Diluted   119,387,937     120,011,806     120,011,806  
    Net earnings/(losses) per share          
    — Basic   (0.22 )   0.43     0.06  
    — Diluted   (0.22 )   0.43     0.06  
    INTCHAINS GROUP LIMITED
    RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
    (All amounts in thousands, except per share data)
     
        For the Three Months ended December 31,
        2023   2024
        RMB   RMB
      US$
    Loss from operations   (1,467 )   (36,596 )   (5,013 )
    Add:          
    Share-based compensation expense   1,501     1,992     273  
    Non-GAAP adjusted operating income/(loss)   34     (34,604 )   (4,740 )
    Net income   8,078     12,781     1,751  
    Add:          
    Share-based compensation expense   1,501     1,992     273  
    Non-GAAP adjusted net income   9,579     14,773     2,024  
               
    Non-GAAP adjusted net earnings per share          
    — Basic   0.08     0.12     0.02  
    — Diluted   0.08     0.12     0.02  
    INTCHAINS GROUP LIMITED
    RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
    (All amounts in thousands, except per share data)
     
        For the Year ended December 31,
        2023   2024
        RMB   RMB
      US$
    Income/(loss) from operations   (64,968 )   3,156     432  
    Add:                
    Share-based compensation expense   3,474     8,973     1,229  
    Non-GAAP adjusted operating income/(loss)   (61,494 )   12,129     1,661  
    Net income/(loss)   (26,795 )   51,497     7,054  
    Add:                
    Share-based compensation expense   3,474     8,973     1,229  
    Non-GAAP adjusted net income/(loss)   (23,321 )   60,470     8,283  
                     
    Non-GAAP adjusted net earnings/(losses) per share                
    — Basic   (0.20 )   0.50     0.07  
    — Diluted   (0.20 )   0.50     0.07  
    INTCHAINS GROUP LIMITED
    UNAUDITED CRYPTOCURRENCY-ADDITIONAL INFORMATION
     
    As of Quarter Ended   Cryptocurrency   Approximate Number of Cryptocurrency Held at End of Quarter   Original Cost Basis   Approximate Average Cost Price Per Unit of Cryptocurrency   Lowest Market Price Per Unit of Cryptocurrency During Quarter (a)   Market Value of Cryptocurrency Held at End of Quarter Using Lowest Market Price (b)   Highest Market Price Per Unit of Cryptocurrency During Quarter (c)   Market Value of Cryptocurrency Held at End of Quarter Using Highest Market Price (d)   Market Price Per Unit of Cryptocurrency at End of Quarter (e)   Market Value of Cryptocurrency Held at End of Quarter Using Ending Market Price (f)
            Unit   USD   USD   USD   USD   USD   USD   USD   USD
    December 31, 2024   ETH   5,075   15,102,524   2,976   2,309   11,718,175   4,109   20,853,175   3,414   17,326,050
      ETH-Coinbase Staked   627   1,800,713   2,872   2,487   1,559,349   4,450   2,790,150   3,701   2,320,527
      Bitcoin   10.29   720,567   70,026   58,864   605,711   108,389   1,115,323   95,285   980,483
      USDT&USDC   4,425,484   4,428,159   1   1   4,384,335   1   4,469,357   1   4,419,574
      Others   Multiple *   78,298   Multiple *   Multiple *   30,694   Multiple *   101,589   Multiple *   69,389
        Total       22,130,261           18,298,264       29,329,594       25,116,023
                                             
    September 30, 2024   ETH   3,522   10,115,116   2,872   2,116   7,452,552   3,563   12,548,886   2,596   9,143,112
      ETH-Coinbase Staked   627   1,800,713   2,872   2,290   1,435,830   3,926   2,461,602   2,807   1,759,989
      Bitcoin   8.47   549,364   64,860   49,050   415,454   70,000   592,900   63,552   538,285
      USDT&USDC   9,847,687   9,849,266   1   1   9,814,682   1   9,857,395   1   9,845,929
      Others   Multiple *   105,405   Multiple *   Multiple *   36,415   Multiple *   72,441   Multiple *   53,661
        Total       22,419,864           19,154,933       25,533,224       21,340,976
                                             
    June 30, 2024   ETH   1,937   6,179,744   3,190   2,814   5,450,718   3,974   7,697,638   3,394   6,574,178
      ETH-Coinbase Staked   480   1,301,108   2,711   2,954   1,417,920   4,243   2,036,640   3,645   1,749,600
      Bitcoin   3.95   265,883   67,312   56,500   223,175   72,777   287,469   61,613   243,371
      USDT&USDC   10,422,648   10,423,276   1   1   10,386,315   1   10,458,980   1   10,404,063
      Others   Multiple *   107,484   Multiple *   Multiple *   54,226   Multiple *   122,435   Multiple *   64,202
      Total       18,277,495           17,532,354       20,603,162       19,035,414
                                             
    March 31, 2024   ETH   346   999,180   2,888   2,100   726,600   4,094   1,416,524   3,618   1,251,828
      ETH-Coinbase Staked   479   1,297,687   2,709   2,236   1,071,044   4,341   2,079,339   3,842   1,840,318
      Bitcoin   0.67   44,995   67,157   38,501   25,796   73,836   49,470   70,407   47,173
      USDT&USDC   99,583   99,583   1   1   99,583   1   99,583   1   99,583
      Others   Multiple *   81,571   Multiple *   Multiple *   67,814   Multiple *   124,481   Multiple *   91,346
      Total       2,523,016           1,990,837       3,769,397       3,330,248

    * The ‘Others’ category encompasses various cryptocurrencies that are not reported individually due to their lower significance. This category is labeled as ‘Multiple’ to indicate the presence of diverse prices associated with different type of cryptocurrency. Due to their immaterial nature, detailed price listings are not provided.
    (a) The “Lowest Market Price Per Unit of Cryptocurrency During Quarter” represents the lowest market price for a single unit of cryptocurrency reported on the Coinbase exchange during the respective quarter, without regard to when we obtained any of the cryptocurrency.
    (b) The “Market Value of Cryptocurrency Held at End of Quarter Using Lowest Market Price” represents a mathematical calculation consisting of the lowest market price for a single unit of cryptocurrency reported on the Coinbase exchange during the respective quarter multiplied by the number of cryptocurrency we held at the end of the applicable period.
    (c) The “Highest Market Price Per Unit of Cryptocurrency During Quarter” represents the highest market price for a single unit of cryptocurrency reported on the Coinbase exchange during the respective quarter, without regard to when we obtained any of the cryptocurrency.
    (d) The “Market Value of Cryptocurrency Held at End of Quarter Using Highest Market Price” represents a mathematical calculation consisting of the highest market price for a single unit of cryptocurrency reported on the Coinbase exchange during the respective quarter multiplied by the number of cryptocurrency we held at the end of the applicable period.
    (e) The “Market Price Per Unit of Cryptocurrency at End of Quarter” represents the market price of a single unit of cryptocurrency on the Coinbase exchange at midnight UTC+8 time on the last day of the respective quarter, which aligns with the our revenue recognition cut-off.
    (f) The “Market Value of Cryptocurrency Held at End of Quarter Using Ending Market Price” represents a mathematical calculation consisting of the market price of a single unit of cryptocurrency on the Coinbase exchange at midnight UTC+8 time on the last day of the respective quarter multiplied by the number of cryptocurrency we held at the end of the applicable period.

    The MIL Network

  • MIL-OSI: Diginex Limited Announces Relocation of Headquarters to London as Cornerstone for Global Expansion

    Source: GlobeNewswire (MIL-OSI)

    LONDON, Feb. 27, 2025 (GLOBE NEWSWIRE) — Diginex Limited (“Diginex Limited” or the “Company”) (Nasdaq: DGNX), an impact technology company specializing in environmental, social, and governance (ESG) issues, today announced that the Company will relocate its corporate headquarters to London, the United Kingdom, as part of its centralizing leadership to execute its strategic growth plans. On February 26, 2025, the Company signed a lease for office space with International Workplace Group for 18 months at 25 Wilton Road, Victoria, London, Greater London, SW1V 1LW, United Kingdom commencing on April 1, 2025, underscoring its commitment to establishing a strong base in one of the world’s leading financial hubs.

    By establishing its headquarters in London, Diginex Limited aims to enhance access to global financial markets, expand business operations, and strengthen opportunities for strategic partnerships and acquisitions in the European market and beyond. The upcoming move follows the Company’s recent cross-listing on the Frankfurt Stock Exchange (Open Market) and the Tradegate Exchange under the symbol “I0Q” as of February 20, 2025, as well as its engagement with German-based investor relations firm, Kirchhoff Consult GmbH.

    Diginex Limited’s Chief Executive Officer, Mark Blick, will relocate to London to lead the Company’s expansion in the region. The Company’s executive leadership team comprises of six senior leaders, including four British executives, one German, and one Swiss. The Company plans to hire additional senior executives in London to further support its growing operations and drive strategic initiatives. This decision strengthens Diginex Limited’s leadership presence in the European market, which has become an increasingly important region for its growth strategy. With this shift, Diginex Limited expects to be better positioned to intensify its focus on mergers and acquisitions across Europe and the United States, allowing key executives to be closer to potential M&A target companies and emerging opportunities.

    “We believe relocating our corporate headquarters to London is a welcome milestone in our strategic plan to grow by acquisition and places key executives closer to the company’s external M&A partners thus encouraging greater efficiency and more fluid decision making,” said Miles Pelham, Chairman of Diginex Limited. “This move strengthens our ability to engage with global investors, expand our leadership team, and accelerate future growth. With sustainability and regulatory frameworks playing a growing role in corporate governance, the relocation makes it easier to engage directly with organizations operating under the ISSB (International Sustainability Standards Board) and the CSRD (Corporate Sustainability Reporting Directive) frameworks.”

    As Diginex Limited continues its expansion, the Company remains dedicated to driving innovation in ESG solutions, supporting businesses in navigating regulatory landscapes, and delivering value to global clients across Europe, North America and Asia. 

    About Diginex Limited

    Diginex Limited is a Cayman Islands exempted company, with subsidiaries located in Hong Kong, the United Kingdom and the United States of America. Diginex Limited conducts operations through its wholly owned subsidiary Diginex Solutions (HK) Limited, a Hong Kong corporation (“DSL”) and DSL is the sole owner of (i) Diginex Services Limited, a corporation formed in the United Kingdom and (ii) Diginex USA LLC, a limited liability company formed in the State of Delaware. DSL commenced operations in 2020, and is a software company that empowers businesses and governments to streamline ESG, climate, and supply chain data collection and reporting. DSL is an impact technology business that helps organizations address the some of the most pressing ESG, climate and sustainability issues, utilizing blockchain, machine learning and data analysis technology to lead change and increase transparency in corporate social responsibility and climate action.

    Diginex’s products and services solutions enable companies to collect, evaluate and share sustainability data through easy-to-use software. For more information, please visit the Company’s website: https://www.diginex.com/.

    Forward-Looking Statements

    Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s filings with the SEC.

    For investor and media inquiries, please contact:

    Diginex
    Investor Relations
    Email:ir@diginex.com

    European IR Contact
    Jens Hecht
    Phone: +49.40.609186.82
    Email:jens.hecht@kirchhoff.de

    US IR Contact
    Jackson Lin
    Lambert by LLYC
    Phone: +1 (646) 717-4593
    Email: jian.lin@llyc.global

    The MIL Network

  • MIL-OSI: ARB IOT Group Limited Announces Entry Into a Memorandum of Understanding to Set-Up AI Data Centre Experimental Laboratory in the Region

    Source: GlobeNewswire (MIL-OSI)

    Kuala Lumpur, Malaysia, Feb. 27, 2025 (GLOBE NEWSWIRE) — ARB IOT Group Limited (“ARB IOT” or the “Company”) (NASDAQ: ARBB) has, through its indirect wholly owned subsidiary, ARB IOT Group Sdn Bhd, signed a Memorandum of Understanding (“MOU”) to set up an AI data centre experimental laboratory, a state-of-the-art facility designed for advanced research and AI application development. This initiative is in partnership with a UKM startup (the “UKM Startup”) affiliated with the Institute of Visual Informatics of Universiti Kebangsaan Malaysia, a leading research university in Malaysia (“IVI-UKM”), and Gajah Kapitalan Sdn Bhd (“GKSB”).

    The AI data centre experimental laboratory facility aims to create a dedicated environment for advancing AI research, AI application development, testing and deployment. It provides state-of-the-art infrastructure and resources to foster innovation, collaboration and skill building in AI technologies. The AI data centre experimental lab will boast AI servers of ARB 222 and ARB 333 series and will be located at IVI, UKM, Malaysia.

    The ARB-222 and ARB-333 series are high-performance rackmount servers designed for AI, deep learning, and enterprise computing. These AI servers are optimized for AI inference and data processing while also excelling in fine-tuning AI training and handling large-scale simulations. Built for reliability and scalability, these servers offer greater energy efficiency compared to other AI products available in the market.

    This initiative aligns with the Malaysian government’s initiatives to strengthen AI capabilities at the regional and national level and to encourage and nurture more data scientists and engineers to participate in the robust AI development and data science community.

    This MOU represents a strong commitment to robust collaboration in exchanging knowledge and expertise in the AI industry.  Under the MOU, the Company will be responsible for the architecture and design of the laboratory facility.

    Bridging the gap between research and practical applications, this initiative brings together the academia and industry partners to fast-track the adoption of innovative and sustainable AI server solutions. These collaborative efforts will set new sustainability standards for AI data centre operations in the region. This is a significant milestone to drive innovation and deliver value to the customers, partners and the nation.

    By having an AI data centre experimental lab with the AI servers of ARB 222 and ARB 333 series in the region, the Company is well positioned to capture a significant growth portion of AI-driven economy in the future.

    This MOU marks a significant milestone in the Company’s growth, leveraging combined expertise in AI computing technology and promoting sustainable advanced AI server solutions to accelerate the AI revolution in the region.

    Dato’ Sri Liew Kok Leong (“Larry”), CEO of ARB IOT, said, “the AI data centre experimental laboratory brings together academia and industry partners to drive innovation in AI technologies and improve the sustainability of AI application in the region. Such industry R&D platform will accelerate the translation and commercialisation of research, and we anticipate that the lab will actively contribute to the ongoing AI-driven growth and innovation.”

    Larry also expressed that the AI servers of ARB 222 and ARB 333 series will serve as the AI data centre hardware platform to support technological growth and create a vibrant ecosystem for AI research, development and deployment. Besides, the lab will also be used for exhibiting AI applications to showcase AI capabilities and present the latest advancements in AI technology. The AI servers of ARB 222 and ARB 333 series offer cost-effective options to customers by optimising resources, reducing operational costs, and improving efficiency. These AI servers offer a balanced, cost-effective and flexible solution ideal for data centres, offering an alternative to the H100/200 solutions currently available in the market.

    Muhammad Badrun Almuhaimin Bin Baharon, Director of GKSB said, “we will be responsible for the operations of AI data centre,  operating AI servers of ARB 222 and ARB 333 series, and developing new market segments in AI industry in this region. To complement the development in the AI industry, we will also be offering the leasing services of data centre AI computing power in Malaysia. The set-up of this AI data centre experimental lab boosts our confidence in funding the set-up of AI data centres in Malaysia.”

    Associate Professor Dr. Rabiah Abdul Kadir, the director of IVI-UKM and the chairman of the UKM Startup emphasised that this AI Data Centre experimental lab can significantly elevate AI research and development to next level by developing efficient AI models with lower energy consumption and better performance. It is expected to play a crucial role in nurturing and incubating talents in the AI industry. By having the cost-effective and flexible solution from ARB 222 and ARB 333 series, she was excited that IVI-UKM will be the technology partner to initiate the AI research and development with the Company.

    About the UKM Startup and IVI-UKM

    The UKM Startup is affiliated with the IVI-UKM, a research institute under UKM, established to advance the field of visual informatics. IVI-UKM was established with objectives to integrate multidisciplinary areas encompassing areas such as artificial intelligence, virtual reality, haptic computation, computer vision, data analytics and visualization, simulation, and image processing. The UKM Startup is committed to offering AI training programs to enables machine to learn from experience, adapt to new data, and automate tasks in a wide range of field, and integrating AI analytics dashboards into business intelligence platforms.

    About GKSB

    GKSB is dedicated to empowering Malaysian businesses through technological innovation, focusing on delivering advanced computing systems for enterprises, research institutions and developers.

    About ARB IOT Group Limited

    ARB IOT Group Limited is a provider of complete solutions to clients for the integration of Internet of Things (“IoT”) systems and devices from designing to project deployment. We offer a wide range of IoT systems as well as provide customers a substantial range of services such as system integration and system support service. We deliver holistic solutions with full turnkey deployment from designing, installation, testing, pre-commissioning, and commissioning of various IoT systems and devices as well as integration of automated systems, including installation of wire and wireless and mechatronic works.

    Safe Harbor Statement

    This press release contains “forward-looking statements” that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, such as statements regarding our estimated future results of operations and financial position, our strategy and plans, and our objectives or goals, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should,” or “will” or the negative of these terms or other comparable terminology. Our actual results may differ materially or perhaps significantly from those discussed herein, or implied by, these forward-looking statements. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including, but not limited to, those that we discussed or referred to in the Company’s disclosure documents filed with the U.S. Securities and Exchange Commission (the “SEC”) available on the SEC’s website at www.sec.gov, including the Company’s Annual Report on Form 20-F as well as in our other reports filed or furnished from time to time with the SEC. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.

    For further information, please contact:

    ARB IOT Group Limited
    Investor Relations Department
    Email: contact@arbiotgroup.com

    The MIL Network

  • MIL-OSI: Sunrun Reports Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Cash Generation of $34 million in Q4 after safe harbor equipment purchases, third consecutive quarter of positive Cash Generation

    Paid down $132 million of recourse debt in Q4 with excess cash

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

    Cash Generation guidance of $40 to $50 million in Q1

    Net Earning Assets increased to $6.8 billion, including $947 million of Total Cash

    Storage Capacity Installed of 392 Megawatt hours in Q4, exceeding high-end of guidance range and representing 78% year-over-year growth, as storage attachment rates reach 62%

    Solar Energy Capacity Installed of 242 Megawatts in Q4, within the guidance range, reaching 7.5 Gigawatts of Networked Solar Energy Capacity

    SAN FRANCISCO, Feb. 27, 2025 (GLOBE NEWSWIRE) — Sunrun (Nasdaq: RUN), the nation’s leading provider of clean energy as a subscription service, today announced financial results for the fourth quarter and full year ended December 31, 2024.

    “We are growing, generating meaningful cash, increasing our book value of deployed systems, and paying down debt. We are poised to further improve our operating and financial results, and deliver a very strong 2025 with meaningful Cash Generation. Our actions to optimize our product mix, prioritize the highest value geographies and routes to market and an intense focus on cost as we grow have resulted in the highest Net Subscriber Values Sunrun has ever reported,” said Mary Powell, Sunrun’s Chief Executive Officer. “We are improving in every dimension we control – focusing on fast, effective execution, delivering strong financial and operating results, gaining share in a disciplined way, while building a long-term foundation of valuable grid resources.”

    “In the fourth quarter, we again set new margin records and delivered the third consecutive quarter of Cash Generation. We continue to execute well in the capital markets, raising more than $4 billion in asset-level debt and tax equity financing during 2024, and more than $800 million in non-recourse debt financing year-to-date. We have extended our runway of tax equity commitments and term sheets, including $1.3 billion added year-to-date,” said Danny Abajian, Sunrun’s Chief Financial Officer. “We have a strong balance sheet with no near-term corporate debt maturities and have paid down recourse parent debt by $186 million since March, including a $132 million paydown using excess cash in Q4. As we increase our Cash Generation, we will continue to further pay down parent recourse debt and are committed to a capital allocation strategy beyond this initial de-leveraging period that drives significant shareholder value.”

    Fourth Quarter Updates

    • Storage Attachment Rates Reach 62%: Customer Additions with storage grew more than 50% during the quarter compared to the prior-year period. Storage attachment rates on installations reached 62% in Q4, up from 45% in the prior-year period, with 392 Megawatt hours installed during the quarter. Sunrun has installed more than 156,000 solar and storage systems, representing over 2.5 Gigawatt hours of stored energy capacity.
    • Continued Strong Capital Markets Execution: In January 2025, Sunrun priced a $629 million securitization of residential solar and battery systems. The securitization is Sunrun’s thirteenth securitization since 2015 and first issuance in 2025. The oversubscribed transaction was structured with three separate classes of A rated notes, only two of which were publicly offered. The weighted average spread of the notes was 197 basis points, which was an improvement of approximately 38 basis points from our prior securitization in September. Similar to prior transactions, Sunrun raised additional capital in a subordinated non-recourse financing, which increased the cumulative advance rate to above 80% as measured against the initial Contracted Subscriber Value of the portfolio.
    • Paying Down Recourse Debt: We continue to pay down parent recourse debt. During the fourth quarter, we repurchased $125.5 million in principal of our 2026 Convertible Notes. As of December 31, 2024 we had only $7.7 million outstanding of these notes, which we may repurchase in 2025. Since March 31, 2024 we have paid down recourse debt by $186 million, by repurchasing our 2026 Convertible Notes and reducing borrowings under our recourse Working Capital Facility. We have also increased our Total Cash balance by $164 million and grown Net Earning Assets by $1.5 billion. We expect to further pay down our recourse debt in 2025 by $100 million or more. Aside from the $7.7 million outstanding of our 2026 Convertible Notes, we have no recourse debt maturities until March 2027. Over time we will explore further capital allocation options to maximize shareholder value, based on market conditions and our long-term outlook.
    • Improving Grid Stability with Virtual Power Plants: During 2024, Sunrun’s virtual power plants (VPPs) successfully supported power grids across the country with a combined instantaneous peak of nearly 80 megawatts—a capacity greater than many traditional fossil-fuel power plants. These innovative programs leveraged Sunrun’s fleet of residential solar and battery systems—the largest in America—empowering customers to generate, store, and share their own solar energy. In 2024, more than 20,000 Sunrun customers participated in 16 virtual power plant programs across nine states and territories. From California and Texas to Puerto Rico and New England, the customers’ batteries supplied on-demand, stored solar energy to augment power resources during hundreds of critical energy events.

    Key Operating Metrics

    In the fourth quarter of 2024, Customer Additions were 32,932 including 30,709 Subscriber Additions. As of December 31, 2024, Sunrun had 1,048,842 Customers, including 889,186 Subscribers. Customers grew 12% in the fourth quarter of 2024 compared to the fourth quarter of 2023.

    Annual Recurring Revenue from Subscribers was approximately $1.6 billion as of December 31, 2024. The Average Contract Life Remaining of Subscribers was 17.6 years as of December 31, 2024.

    Subscriber Value was $55,811 in the fourth quarter of 2024, a 11% increase compared to the fourth quarter of 2023. Creation Cost was $36,634 in the fourth quarter of 2024, a 1% decrease compared to the fourth quarter of 2023.

    Net Subscriber Value was $19,177 in the fourth quarter of 2024. Total Value Generated was $589 million in the fourth quarter of 2024. On a pro-forma basis assuming a 7.3% discount rate, consistent with capital costs observed in the quarter, Subscriber Value was $50,998 and Net Subscriber Value was $14,364 in the fourth quarter of 2024.

    Gross Earning Assets as of December 31, 2024, were $17.8 billion. Net Earning Assets were $6.8 billion, which included $947 million in Total Cash, as of December 31, 2024.

    Cash Generation was $34.2 million in the fourth quarter of 2024, the third consecutive quarter of positive Cash Generation.

    Storage Capacity Installed was 392.0 Megawatt hours in the fourth quarter of 2024, a 78% increase compared to the fourth quarter of 2023.

    Solar Energy Capacity Installed was 242.4 Megawatts in the fourth quarter of 2024, a 7% increase compared to the fourth quarter of 2023. Included in this figure is 232.0 Megawatts of Solar Energy Capacity Installed for Subscribers in the fourth quarter of 2024, an 11% increase compared to the fourth quarter of 2023.

    Networked Solar Energy Capacity was 7,531 Megawatts as of December 31, 2024. Included in this figure is 6,436 Megawatts of Networked Solar Energy Capacity for Subscribers as of December 31, 2024.

    Networked Storage Capacity was 2.5 Gigawatt hours as of December 31, 2024.

    The solar energy systems we deployed in Q4 are expected to offset the emission of 4.8 million metric tons of CO2 over the next thirty years. Over the last twelve months ended December 31, 2024, Sunrun’s systems are estimated to have offset 4.0 million metric tons of CO2.

    Outlook

    Cash Generation is expected to be in a range of $40 million to $50 million in the first quarter of 2025.

    For the full-year 2025, Cash Generation is expected to be in a range of $200 million to $500 million.

    Storage Capacity Installed is expected to be in a range of 265 to 275 Megawatt hours in the first quarter of 2025, representing approximately 30% growth year over year at the midpoint.

    Solar Energy Capacity Installed is expected to be in a range of 170 to 180 Megawatts in the first quarter of 2025, representing approximately flat year over year growth at the midpoint.

    For the full-year 2025, the Company expects robust growth in Storage Capacity Installed year over year, and Solar Energy Capacity Installed is expected to be approximately flat year over year.

    Fourth Quarter 2024 GAAP Results

    Total revenue was $518.5 million in the fourth quarter of 2024, up $1.9 million, or 0%, from the fourth quarter of 2023. Customer agreements and incentives revenue was $388.6 million, an increase of $67.0 million, or 21%, compared to the fourth quarter of 2023. Solar energy systems and product sales revenue was $129.9 million, a decrease of $65.1 million, or 33%, compared to the fourth quarter of 2023. The increasing mix of Subscribers results in less upfront revenue recognition, as revenue is recognized over the life of the Customer Agreement, which is typically 20 or 25 years.

    Total cost of revenue was $421.0 million, a decrease of 13% year-over-year. Total operating expenses were $652.6 million, a decrease of 9% year-over-year, on a pro-forma basis to exclude a non-cash goodwill impairment, which was incurred in the fourth quarter of 2024.

    Net loss attributable to common stockholders was $2,813.7 million, or $12.51 per basic and diluted share for the fourth quarter of 2024. Pro forma to exclude non-cash impairment charges, results in non-GAAP net income of $360.9 million or $1.41 per diluted share for the fourth quarter of 2024.

    Full Year 2024 GAAP Results

    Total revenue was $2,037.7 million in the full year 2024, down $222.1 million, or 10%, from the full year 2023. Customer agreements and incentives revenue was $1,505.2 million, an increase of $318.5 million, or 27%, compared to the full year 2023. Solar energy systems and product sales revenue was $532.5 million, a decrease of $540.6 million, or 50%, compared to the full year 2023.

    Total cost of revenue was $1,709.2 million, a decrease of 18% year-over-year. Total operating expenses were $2,610.8 million, a decrease of 15% year-over year, on a pro-forma basis to exclude non-cash goodwill impairment, which was incurred in both the full year 2023 and full year 2024.

    During the year, Sunrun recorded a non-cash goodwill impairment charge of approximately $3.1 billion. Due to the decline in our stock price, we wrote down our goodwill balance of $3.1 billion in its entirety during the fourth quarter of 2024. The goodwill primarily arose following the stock-for-stock acquisition of Vivint Solar in October 2020, with the majority arising from and determined based on the market capitalizations at the time of the acquisition. The Company recorded a non-cash goodwill impairment charge of $3.1 billion, or $14.05 per basic share, in our Consolidated Statement of Operations for the full year 2024, which was reflected in the Company’s fourth quarter results.

    Net loss attributable to common stockholders was $2,846.2 million, or $12.81 per basic and diluted share for the full year 2024. Pro-forma to exclude non-cash impairment charges, results in non-GAAP net income of $333.7 million or $1.33 per diluted share for the full-year 2024.

    Financing Activities

    As of February 27, 2025, closed transactions and executed term sheets provide us with expected tax equity to fund over 500 Megawatts of Solar Energy Capacity Installed for Subscribers beyond what was deployed through December 31, 2024. Sunrun also has $680 million in unused commitments available in its non-recourse senior revolving warehouse loan after the January securitization, to fund approximately 230 megawatts of projects for Subscribers.

    Conference Call Information

    Sunrun is hosting a conference call for analysts and investors to discuss its fourth quarter and full year 2024 results and business outlook at 1:30 p.m. Pacific Time today, February 27, 2025. A live audio webcast of the conference call along with supplemental financial information will be accessible via the “Investor Relations” section of Sunrun’s website at https://investors.sunrun.com. The conference call can also be accessed live over the phone by dialing (877) 407-5989 (toll free) or (201) 689-8434 (toll). An audio replay will be available following the call on the Sunrun Investor Relations website for approximately one month.

    About Sunrun

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

    Non-GAAP Information

    This press release includes references to certain non-GAAP financial measures, such as non-GAAP net (loss) income and non-GAAP net (loss) income per share. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this press release and our financial statements and other publicly filed reports. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.

    Non-GAAP net (loss) income is defined as GAAP net (loss) income adjusted by the non-cash goodwill impairment charge, non-cash adjustment to equity investments, and the debt discount amortization. Management believes the exclusion of this non-cash and non-recurring item provides useful supplemental information to investors and facilitates the analysis of its operating results and comparison of operating results across reporting periods.

    Forward Looking Statements

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

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

    Consolidated Balance Sheets
    (In Thousands)
        As of December 31,
          2024     2023
    Assets        
    Current assets:        
    Cash   $ 574,956   $ 678,821
    Restricted cash     372,312     308,869
    Accounts receivable, net     170,706     172,001
    Inventories     402,083     459,746
    Prepaid expenses and other current assets     202,579     262,822
    Total current assets     1,722,636     1,882,259
    Restricted cash     148     148
    Solar energy systems, net     15,032,115     13,028,871
    Property and equipment, net     121,239     149,139
    Goodwill         3,122,168
    Other assets     3,021,746     2,267,652
    Total assets   $ 19,897,884   $ 20,450,237
    Liabilities and total equity        
    Current liabilities:        
    Accounts payable   $ 354,214   $ 230,723
    Distributions payable to noncontrolling interests and redeemable noncontrolling interests     41,464     35,180
    Accrued expenses and other liabilities     543,752     499,225
    Deferred revenue, current portion     129,442     128,600
    Deferred grants, current portion     7,900     8,199
    Finance lease obligations, current portion     26,045     22,053
    Non-recourse debt, current portion     231,665     547,870
    Pass-through financing obligation, current portion         16,309
    Total current liabilities     1,334,482     1,488,159
    Deferred revenue, net of current portion     1,208,905     1,067,461
    Deferred grants, net of current portion     196,535     195,724
    Finance lease obligations, net of current portion     66,139     68,753
    Line of credit     384,226     539,502
    Non-recourse debt, net of current portion     11,806,181     9,191,689
    Convertible senior notes     479,420     392,867
    Pass-through financing obligation, net of current portion         278,333
    Other liabilities     119,846     190,866
    Deferred tax liabilities     137,940     122,870
    Total liabilities     15,733,674     13,536,224
    Redeemable noncontrolling interests     624,159     676,177
    Total stockholders’ equity     2,554,207     5,230,228
    Noncontrolling interests     985,844     1,007,608
    Total equity     3,540,051     6,237,836
    Total liabilities, redeemable noncontrolling interests and total equity   $ 19,897,884   $ 20,450,237
    Consolidated Statements of Operations
    (In Thousands, Except Per Share Amounts)

        Three Months Ended
    December 31,
      Year Ended
    December 31,
          2024       2023       2024       2023  
    Revenue:                
    Customer agreements and incentives   $ 388,574     $ 321,555     $ 1,505,227     $ 1,186,706  
    Solar energy systems and product sales     129,918       195,035       532,492       1,073,107  
    Total revenue     518,492       516,590       2,037,719       2,259,813  
    Operating expenses:                
    Cost of customer agreements and incentives     292,632       287,780       1,169,213       1,077,114  
    Cost of solar energy systems and product sales     128,361       194,808       539,952       1,019,638  
    Sales and marketing     150,751       166,760       617,162       740,821  
    Research and development     8,794       7,663       39,304       21,816  
    General and administrative     72,045       57,110       245,127       221,067  
    Goodwill Impairment     3,122,168             3,122,168       1,158,000  
    Total operating expenses     3,774,751       714,121       5,732,926       4,238,456  
    Loss from operations     (3,256,259 )     (197,531 )     (3,695,207 )     (1,978,643 )
    Interest expense, net     (233,385 )     (181,826 )     (848,366 )     (652,989 )
    Other income (expense), net     89,829       (157,644 )     161,539       (63,900 )
    Loss before income taxes     (3,399,815 )     (537,001 )     (4,382,034 )     (2,695,532 )
    Income tax benefit     136       (1,595 )     (26,817 )     (12,691 )
    Net loss     (3,399,951 )     (535,406 )     (4,355,217 )     (2,682,841 )
    Net loss attributable to noncontrolling interests and redeemable noncontrolling interests     (586,294 )     (185,282 )     (1,509,050 )     (1,078,344 )
    Net loss attributable to common stockholders   $ (2,813,657 )   $ (350,124 )   $ (2,846,167 )   $ (1,604,497 )
    Net loss per share attributable to common stockholders                
    Basic   $ (12.51 )   $ (1.60 )   $ (12.81 )   $ (7.41 )
    Diluted   $ (12.51 )   $ (1.60 )   $ (12.81 )   $ (7.41 )
    Weighted average shares used to compute net loss per share attributable to common stockholders                
    Basic     224,896       218,461       222,215       216,642  
    Diluted     224,896       218,461       222,215       216,642  
    Consolidated Statements of Cash Flows
    (In Thousands)

        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Operating activities:                
    Net loss   $ (3,399,951 )   $ (535,406 )   $ (4,355,217 )   $ (2,682,841 )
    Adjustments to reconcile net loss to net cash used in operating activities:                
    Depreciation and amortization, net of amortization of deferred grants     162,343       143,024       620,876       531,669  
    Goodwill impairment     3,122,168             3,122,168       1,158,000  
    Deferred income taxes     136       (1,623 )     (26,817 )     (12,716 )
    Stock-based compensation expense     28,869       27,555       112,825       111,781  
    Interest on pass-through financing obligations           4,862       8,837       19,504  
    Reduction in pass-through financing obligations           (9,820 )     (20,787 )     (40,352 )
    Unrealized (gain) loss on derivatives     (122,319 )     108,226       (120,008 )     28,105  
    Other noncash items     105,220       118,956       210,479       261,390  
    Changes in operating assets and liabilities:                
    Accounts receivable     5,741       5,762       (14,974 )     15,748  
    Inventories     (59,735 )     202,055       57,663       324,158  
    Prepaid expenses and other current assets     (301,380 )     (142,438 )     (771,997 )     (476,628 )
    Accounts payable     141,070       (52,514 )     177,449       (108,785 )
    Accrued expenses and other liabilities     4,182       (31,986 )     80,588       (56,473 )
    Deferred revenue     55,297       47,340       152,762       106,700  
    Net cash used in operating activities     (258,359 )     (116,007 )     (766,153 )     (820,740 )
    Investing activities:                
    Payments for the costs of solar energy systems     (791,785 )     (651,462 )     (2,699,452 )     (2,587,183 )
    Purchase of equity investment           (5,000 )           (5,000 )
    Purchases of property and equipment, net     (627 )     (4,662 )     (1,572 )     (20,960 )
    Net cash provided by (used in) investing activities     (792,412 )     (661,124 )     (2,701,024 )     (2,613,143 )
    Financing activities:                
    Proceeds from state tax credits, net of recapture                 5,203       4,033  
    Proceeds from trade receivable financing     124,261       41,225       124,261       41,225  
    Repayment of trade receivable financing           (41,225 )           (41,225 )
    Proceeds from line of credit     48,700       473,277       354,256       1,124,675  
    Repayment of line of credit     (56,998 )     (451,023 )     (509,532 )     (1,090,331 )
    Proceeds from issuance of convertible senior notes, net of capped call transaction                 444,822        
    Repurchase of convertible senior notes     (117,235 )     (1,545 )     (346,581 )     (1,545 )
    Proceeds from issuance of non-recourse debt     644,950       556,100       4,009,906       3,745,580  
    Repayment of non-recourse debt     (102,748 )     (175,728 )     (1,794,962 )     (1,575,527 )
    Payment of debt fees     (128 )     (412 )     (93,875 )     (47,342 )
    Proceeds from pass-through financing and other obligations, net           2,100       4,795       8,812  
    Repayment of pass-through financing obligation                 (240,288 )      
    Payment of finance lease obligations     (6,605 )     (6,484 )     (27,240 )     (23,279 )
    Contributions received from noncontrolling interests and redeemable noncontrolling interests     521,480       459,858       1,811,966       1,572,399  
    Distributions paid to noncontrolling interests and redeemable noncontrolling interests     (70,269 )     (51,578 )     (308,657 )     (225,114 )
    Acquisition of noncontrolling interest     (4,761 )           (26,195 )     (46,274 )
    Proceeds from transfer of investment tax credits     148,586       6,980       705,697       6,980  
    Payments to redeemable noncontrolling interests and noncontrolling interests of investment tax credits     (148,586 )     (6,980 )     (705,697 )     (6,980 )
    Net proceeds related to stock-based award activities     6,923       8,459       18,876       22,611  
    Net cash provided by financing activities     987,570       813,024       3,426,755       3,468,698  
    Net change in cash and restricted cash     (63,201 )     35,893       (40,422 )     34,815  
    Cash and restricted cash, beginning of period     1,010,617       951,945       987,838       953,023  
    Cash and restricted cash, end of period   $ 947,416     $ 987,838     $ 947,416     $ 987,838  
    Reconciliation between GAAP and Non-GAAP diluted (loss) income per share:

        Three Months Ended
    December 31, 2024
      Year Ended
    December 31, 2024
        Net (Loss)
    Income
      Diluted EPS   Net (Loss)
    Income
      Diluted EPS
    GAAP diluted loss per share   $ (2,813,657 )   $ (12.51 )   $ (2,846,167 )   $ (12.81 )
    Debt Discount Amortization     1,131       0.01       6,438       0.03  
    Non-cash impairment charges (2)     3,173,450       14.11       3,173,450       14.28  
    Non-GAAP diluted income per share (1)   $ 360,924     $ 1.41     $ 333,721     $ 1.33  
                     
    GAAP weighted average shares for diluted EPS     224,896           222,215      
    Non-GAAP weighted average shares for diluted EPS     256,614           250,622      


    (1)
       Non-GAAP diluted income per share excludes the effects of the pro forma adjustment detailed above. Non- GAAP diluted income per share is adjusted to exclude this item, as it is not used by management to evaluate the performance of the business.
    (2)   Excluding this item of non-recurring, infrequent or unusual nature and its impact on the comparability of our results for the period to prior periods and future expected trends.

    Key Operating and Financial Metrics

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

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

    In-period volume metrics: Three Months Ended
    December 31, 2024
     
    Customer Additions   32,932  
    Subscriber Additions (included within Customer Additions)   30,709  
    Solar Energy Capacity Installed (in Megawatts)   242.4  
    Solar Energy Capacity Installed for Subscribers (in Megawatts)   232.0  
    Storage Capacity Installed (in Megawatt hours)   392.0  
         
    In-period value creation metrics: Three Months Ended
    December 31, 2024
     
    Subscriber Value Contracted Period $52,035  
    Subscriber Value Renewal Period $3,776  
    Subscriber Value $55,811  
    Creation Cost $36,634  
    Net Subscriber Value $19,177  
    Total Value Generated (in millions) $588.9  
         
    In-period environmental impact metrics: Three Months Ended
    December 31, 2024
     
    Positive Environmental Impact from Customers (over trailing twelve months, in millions of metric tons of CO2 avoidance)   4.0  
    Positive Expected Lifetime Environmental Impact from Customer Additions (in millions of metric tons of CO2 avoidance)   4.8  
         
    Period-end metrics: December 31, 2024  
    Customers   1,048,842  
    Subscribers (subset of Customers)   889,186  
    Households Served in Low-Income Multifamily Properties   21,129  
    Networked Solar Energy Capacity (in Megawatts)   7,531  
    Networked Solar Energy Capacity for Subscribers (in Megawatts)   6,436  
    Networked Storage Capacity (in Megawatt hours)   2,525  
    Annual Recurring Revenue (in millions) $1,644  
    Average Contract Life Remaining (in years)   17.6  
    Gross Earning Assets Contracted Period (in millions) $13,791  
    Gross Earning Assets Renewal Period (in millions) $4,043  
    Gross Earning Assets (in millions) $17,834  
    Net Earning Assets (in millions) $6,766  
           

    Figures presented above may not sum due to rounding. For adjustments related to Subscriber Value and Creation Cost, please see the supplemental Creation Cost and Net Subscriber Value calculation memo for each applicable period, which is available on investors.sunrun.com.

    Definitions

    Deployments represent solar or storage systems, whether sold directly to customers or subject to executed Customer Agreements (i) for which we have confirmation that the systems are installed, subject to final inspection, or (ii) in the case of certain system installations by our partners, for which we have accrued at least 80% of the expected project cost (inclusive of acquisitions of installed systems).

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

    Subscriber Additions represent the number of Deployments in the period that are subject to executed Customer Agreements.

    Customer Additions represent the number of Deployments in the period.

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

    Solar Energy Capacity Installed for Subscribers represents the aggregate megawatt production capacity of our solar energy systems that were recognized as Deployments in the period that are subject to executed Customer Agreements.

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

    Creation Cost represents the sum of certain operating expenses and capital expenditures incurred divided by applicable Customer Additions and Subscriber Additions in the period. Creation Cost is comprised of (i) installation costs, which includes the increase in gross solar energy system assets and the cost of customer agreement revenue, excluding depreciation expense of fixed solar assets, and operating and maintenance expenses associated with existing Subscribers, plus (ii) sales and marketing costs, including increases to the gross capitalized costs to obtain contracts, net of the amortization expense of the costs to obtain contracts, plus (iii) general and administrative costs, and less (iv) the gross profit derived from selling systems to customers under sale agreements and Sunrun’s product distribution and lead generation businesses. Creation Cost excludes stock based compensation, amortization of intangibles, and research and development expenses, along with other items the company deems to be non-recurring or extraordinary in nature. The gross margin derived from solar energy systems and product sales is included as an offset to Creation Cost since these sales are ancillary to the overall business model and lowers our overall cost of business. The sales, marketing, general and administrative costs in Creation Costs is inclusive of sales, marketing, general and administrative activities related to the entire business, including solar energy system and product sales. As such, by including the gross margin on solar energy system and product sales as a contra cost, the value of all activities of the Company’s segment are represented in the Net Subscriber Value.

    Subscriber Value represents the per subscriber value of upfront and future cash flows (discounted at 6%) from Subscriber Additions in the period, including expected payments from customers as set forth in Customer Agreements, net proceeds from tax equity finance partners, payments from utility incentive and state rebate programs, contracted net grid service program cash flows, projected future cash flows from solar energy renewable energy credit sales, less estimated operating and maintenance costs to service the systems and replace equipment, consistent with estimates by independent engineers, over the initial term of the Customer Agreements and estimated renewal period. For Customer Agreements with 25 year initial contract terms, a 5 year renewal period is assumed. For a 20 year initial contract term, a 10 year renewal period is assumed. In all instances, we assume a 30-year customer relationship, although the customer may renew for additional years, or purchase the system.

    Net Subscriber Value represents Subscriber Value less Creation Cost.

    Total Value Generated represents Net Subscriber Value multiplied by Subscriber Additions.

    Customers represent the cumulative number of Deployments, from the company’s inception through the measurement date.

    Subscribers represent the cumulative number of Customer Agreements for systems that have been recognized as Deployments through the measurement date.

    Networked Solar Energy Capacity represents the aggregate megawatt production capacity of our solar energy systems that have been recognized as Deployments, from the company’s inception through the measurement date.

    Networked Solar Energy Capacity for Subscribers represents the aggregate megawatt production capacity of our solar energy systems that have been recognized as Deployments, from the company’s inception through the measurement date, that have been subject to executed Customer Agreements.

    Networked Storage Capacity represents the aggregate megawatt hour capacity of our storage systems that have been recognized as Deployments, from the company’s inception through the measurement date.

    Gross Earning Assets is calculated as Gross Earning Assets Contracted Period plus Gross Earning Assets Renewal Period.

    Gross Earning Assets Contracted Period represents the present value of the remaining net cash flows (discounted at 6%) during the initial term of our Customer Agreements as of the measurement date. It is calculated as the present value of cash flows (discounted at 6%) that we would receive from Subscribers in future periods as set forth in Customer Agreements, after deducting expected operating and maintenance costs, equipment replacements costs, distributions to tax equity partners in consolidated joint venture partnership flip structures, and distributions to project equity investors. We include cash flows we expect to receive in future periods from tax equity partners, government incentive and rebate programs, contracted sales of solar renewable energy credits, and awarded net cash flows from grid service programs with utilities or grid operators.

    Gross Earning Assets Renewal Period is the forecasted net present value we would receive upon or following the expiration of the initial Customer Agreement term but before the 30th anniversary of the system’s activation (either in the form of cash payments during any applicable renewal period or a system purchase at the end of the initial term), for Subscribers as of the measurement date. We calculate the Gross Earning Assets Renewal Period amount at the expiration of the initial contract term assuming either a system purchase or a renewal, forecasting only a 30-year customer relationship (although the customer may renew for additional years, or purchase the system), at a contract rate equal to 90% of the customer’s contractual rate in effect at the end of the initial contract term. After the initial contract term, our Customer Agreements typically automatically renew on an annual basis and the rate is initially set at up to a 10% discount to then-prevailing utility power prices.

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

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

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

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

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

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

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

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

    Investor & Analyst Contact:

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

    Media Contact:

    Wyatt Semanek
    Director, Corporate Communications
    press@sunrun.com

    The MIL Network

  • MIL-OSI: Stronghold Stockholders Overwhelmingly Approve Merger with Bitfarms

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 27, 2025 (GLOBE NEWSWIRE) — Stronghold Digital Mining, Inc. (NASDAQ: SDIG) (“Stronghold”, the “Company”, or “we”) today announced that its stockholders have overwhelmingly voted “FOR” the pending merger (the “Merger”) between Stronghold and Bitfarms Ltd. (NASDAQ/TSX: BITF) (“Bitfarms”).

    “I’m incredibly proud of what we’ve accomplished at Stronghold,” said Gregory Beard, Chief Executive Officer and Chairman of Stronghold. “We are thrilled by the strong endorsement from our stockholders, who recognize the significant value and potential of this merger and look forward to the next chapter for our stockholders as a part of Bitfarms.”

    On February 27, 2025, Stronghold held a special meeting of the Company’s stockholders (the “Special Meeting”). At the Special Meeting, the Company’s stockholders voted on and approved a proposal (the “Merger Agreement Proposal”) to approve and adopt the Agreement and Plan of Merger, dated as of August 21, 2024, as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated as of September 12, 2024, by and among Bitfarms, Backbone Mining Solutions LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of Bitfarms (“BMS”), HPC & AI Megacorp, Inc., a Delaware corporation and a direct, wholly owned subsidiary of BMS, and the Company, and the related agreements and transactions. Approximately 99.6% of the votes cast at the Special Meeting – which is approximately 54.5% of the issued and outstanding shares of Stronghold Class A common stock and Class V common stock, voting together as a single class, entitled to vote at the Special Meeting – voted to approve the Merger Agreement Proposal.

    With the approval of the Merger Agreement Proposal, the Company expects the closing of the Merger to occur in March of 2025, subject to the satisfaction or waiver of the remaining conditions to close. A final report on the results of the Special Meeting will be made on a Form 8-K to be filed with the Securities and Exchange Commission (“SEC”).

    About Stronghold Digital Mining, Inc.

    Stronghold is a vertically integrated Bitcoin mining company with an emphasis on environmentally beneficial operations. Stronghold houses its miners at its wholly owned and operated Scrubgrass and Panther Creek plants, both of which are low-cost, environmentally beneficial coal refuse power generation facilities in Pennsylvania.

    Forward-Looking Statements

    This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address future business and financial events, conditions, expectations, plans or ambitions, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words, but not all forward-looking statements include such words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. All such forward-looking statements are based upon current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions, many of which are beyond the control of Bitfarms and Stronghold, that could cause actual results to differ materially from those expressed in such forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: the risk that the Merger may not be completed on the anticipated terms in a timely manner or at all, which may adversely affect Stronghold’s business and the price of its Class A common stock, par value $0.0001 per share; the failure to satisfy any of the conditions to the Merger, including obtaining required stockholder and regulatory approvals; pending or potential litigation relating to the Merger that has been or could be instituted against Stronghold, Bitfarms or their respective directors or officers, including the effects of any outcomes related thereto; the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger agreement, including in circumstances requiring Stronghold to pay a termination fee; the effect of the announcement or pendency of the Merger on Stronghold’s business relationships, operating results and business generally; the risk that the Merger disrupts Stronghold’s current plans and operations; Stronghold’s ability to retain and hire key personnel and maintain relationships with key business partners and customers, and others with whom it does business, in light of the Merger; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Merger; risks related to diverting management’s attention from Stronghold’s ongoing business operations; certain restrictions during the pendency of the Merger that may impact Stronghold’s ability to pursue certain business opportunities or strategic transactions; the possibility that the Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; those risks described in Section 4.19 of Bitfarms’ Annual Information Form for the year ended December 31, 2023, filed with the SEC as Exhibit 99.1 to Bitfarms’ Annual Report on Form 40-F, as amended in Amendment No. 1 to the Form 40-F, filed with the SEC on December 9, 2024 (the “Amended 40-F”) Section 19 of Bitfarms’ restated Management’s Discussion and Analysis for the year ended December 31, 2023, filed with the SEC as Exhibit 99.3 to the Amended 40-F, Section 19 of Bitfarms’ restated Management’s Discussion and Analysis for the three and nine months ended September 30, 2024, filed with the SEC on December 9, 2024, as Exhibit 99.2 to Bitfarms’ Current Report on Form 6-K/A; those risks described in Item 1A of Stronghold’s Annual Report on Form 10-K, filed with the SEC on March 8, 2024, Item 1A of Stronghold’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, filed with the SEC on May 8, 2024, Item 1A of Stronghold’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, filed with the SEC on August 14, 2024, Item 1A of Stronghold’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024, filed with the SEC on November 13, 2024, as amended pursuant to Form 10-Q/A, filed with the SEC on December 13, 2024, and subsequent reports on Forms 10-Q and 8-K; and those risks that are described in the registration statement on Form F-4 (File No. 333-282657) filed by Bitfarms with the SEC (the “registration statement”), which includes a proxy statement of Stronghold that also constitutes a prospectus of Bitfarms (the “proxy statement/prospectus”).

    These risks, as well as other risks associated with the proposed transaction, are more fully discussed in the proxy statement/prospectus included in the registration statement on Form F-4 filed with the SEC in connection with the proposed transaction. While the list of factors presented here and the list of factors to be presented in the registration statement on Form F-4 are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. We caution you not to place undue reliance on any of these forward-looking statements as they are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of new markets or market segments in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this communication. Neither Bitfarms nor Stronghold assumes any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Neither future distribution of this communication nor the continued availability of this communication in archive form on Bitfarms’ or Stronghold’s website should be deemed to constitute an update or re-affirmation of these statements as of any future date.

    Investor Contact:

    Matt Glover

    Gateway Group, Inc.

    SDIG@gateway-grp.com

    1-949-574-3860

    Media Contact:

    contact@strongholddigitalmining.com

    The MIL Network

  • MIL-OSI: Talen Energy Reports Full Year 2024 Results, Exceeds 2024 Guidance and Reaffirms 2025 Guidance

    Source: GlobeNewswire (MIL-OSI)

    Earnings Release Highlights

    • Full year GAAP Net Income (Loss) Attributable to Stockholders of $998 million.
    • Full year Adjusted EBITDA of $770 million and Adjusted Free Cash Flow of $283 million, exceeding the 2024 guidance midpoints.
    • Reaffirming 2025 guidance; 2026 outlook unchanged.
    • Reached reliability-must-run (“RMR”) settlement agreement with PJM and key stakeholders to run Brandon Shores and H.A. Wagner generation facilities through May 31, 2029.
    • Repurchased approximately 13 million shares in 2024 (22% of total outstanding shares).

    HOUSTON, Feb. 27, 2025 (GLOBE NEWSWIRE) — Talen Energy Corporation (“Talen,” the “Company,” “we,” or “our”) (NASDAQ: TLN), an independent power producer dedicated to powering the future, today reported its full year 2024 financial and operating results.

    “Talen had an exciting year focused on unlocking value from existing assets. Our fleet ran well this year, earning $770 million of Adjusted EBITDA and $283 million of Adjusted Free Cash Flow. We sold our data center campus to AWS and announced a major agreement providing power directly to them, making Talen the first power company to do so. We are actively executing under this arrangement and pursuing commercial and regulatory solutions for the Susquehanna ISA amendment,” said Talen President and Chief Executive Officer Mac McFarland.

    “We sold our ERCOT assets earlier in the year, realizing significant value that was largely returned to our shareholders, and in Q4, we reached a settlement with PJM and other stakeholders to continue running our Brandon Shores and H.A. Wagner generation facilities through May 2029, supporting grid reliability in Maryland.” McFarland continued. “We have simplified our capital structure and prioritized shareholder returns, repurchasing 22% of our outstanding shares this year. We remain focused on maximizing value and cash flow per share.”

    Summary of Financial and Operating Results (Unaudited)

    (Millions of Dollars)   Year Ended
    December 31,
    2024
    GAAP Net Income (Loss) Attributable to Stockholders     $998
    Adjusted EBITDA     770
    Adjusted Free Cash Flow     283
           
        Year Ended
    December 31,
    2024
      Year Ended
    December 31,
    2023
    Total Generation (TWh) (a)   36.3     32.5  
    Carbon-Free Generation   50 %   55 %
    OSHA TRIR (b)   0.34     0.58  
    Fleet EFOF (c)   2.2 %   5.5 %
                 

    __________________
    (a) Total generation is net of station use consumption, where applicable, includes volumes produced by Susquehanna in support of Nautilus operations and includes generation from ERCOT assets through April 2024.
    (b) OSHA Total Recordable Incident Rate (“OSHA TRIR”) is the number of recordable incidents x 200,000 / total number of manhours worked. Only includes Talen-operated generation facilities (i.e., excludes Conemaugh and Keystone).
    (c) Fleet Equivalent Forced Outage Factor (“Fleet EFOF”) is the percentage of a given period in which a generating unit is not available due to forced outages and forced de-rates. Represents all generation facilities, including our portion of partially-owned facilities.

    For the year ended December 31, 2024, we reported GAAP Net Income (Loss) Attributable to Stockholders of $998 million, Adjusted EBITDA of $770 million and Adjusted Free Cash Flow of $283 million. 2024 Adjusted EBITDA and Adjusted Free Cash Flow exceeded the 2024 guidance midpoints of $765 million and $275 million, respectively.

    Given the impacts of fresh start accounting and the implementation of the plan of reorganization in the second quarter 2023, our full year 2024 results are not comparable to 2023.

    Full year 2024 results were supported by strong operational performance across the generation fleet, the benefits from hedging activities, the impact of the Nuclear PTC, and disciplined cost management, despite the absence of earnings from the ERCOT generation portfolio that was sold in May 2024.

    Our generation fleet continued to run reliably and safely, with a Fleet EFOF of 2.2% and an OSHA TRIR of 0.34. Total generation was 36.3 TWh, with 50% contributed from carbon-free nuclear generation at our Susquehanna nuclear facility. Also, our PJM gas-fired assets were dispatched more frequently during times of peak load than they were in 2023.

    Reaffirming 2025 Guidance; 2026 Outlook Unchanged

    (Millions of Dollars) Range
    2025E Adjusted EBITDA $925 – $1,175
    2025E Adjusted Free Cash Flow $395 – $595
       
    (Millions of Dollars) Range
    2026E Adjusted EBITDA $1,130 – $1,530
    2026E Adjusted Free Cash Flow $535 – $895
       

    RMR Arrangements

    In December 2024, we reached an agreement with PJM, FERC staff, Maryland PSC and public utilities on the terms of RMR arrangements for our Brandon Shores and H.A. Wagner generation facilities. On January 27, 2025, we filed with FERC the resulting Joint Offers of Settlement regarding both facilities’ RMR Continuing Operations Rates Schedules, and they remain subject to FERC approval. If approved, the proposed RMR arrangements will extend the operating life of these facilities through May 31, 2029, or until such time as the necessary transmission upgrades are placed into service. Beginning June 1, 2025, we expect to receive $145 million annually for Brandon Shores and $35 million for H.A. Wagner with some performance incentives. Additionally, we expect to receive reimbursement for variable costs and approved project investments.

    Update on Share Repurchase Program

    Since the start of 2024, we have repurchased approximately 22% of our outstanding shares for a total of $1.95 billion, with $1.1 billion of remaining share repurchase program capacity through year-end 2026. During the fourth quarter 2024, we repurchased approximately 5 million shares of stock from our largest shareholder. All share repurchase amounts are excluding transaction costs.

    Balance Sheet and Liquidity

    We are focused on maintaining net leverage below our target of 3.5x net debt-to-Adjusted EBITDA, along with ample liquidity. As of February 21, 2025, we had total available liquidity of approximately $1.2 billion, comprised of $474 million of unrestricted cash and $700 million of available capacity under the revolving credit facility. Our current net leverage ratio, utilizing the 2024 Adjusted EBITDA and net debt balance as of February 21, 2025, is approximately 3.3x.

    Update on Hedging Activities

    As of December 31, 2024, including the impact of the Nuclear PTC, we had hedged approximately 89% of our expected generation volumes for 2025 and 33% for 2026. The Company’s hedging program is a key component of our comprehensive risk policy and supports the objective of increasing cash flow stability while maintaining upside optionality.

    As an update on nuclear fuel supply activities, the nuclear fuel cycle is fully contracted through the 2027 fuel load, almost entirely contracted through 2028, and over 70% contracted through 2029. These percentages are based on total nuclear fuel costs across all phases and assume current market pricing for the portion not yet under contract.

    Earnings Call

    The Company will hold an earnings call on Thursday, February 27, 2025, at 4:30 p.m. EST (3:30 p.m. CST). To listen to the earnings call, please register in advance for the webcast here. For participants joining the call via phone, please register here prior to the start time to receive dial-in information. For those unable to participate in the live event, a digital replay of the earnings call will be archived for approximately one year and available on Talen’s Investor Relations website at https://ir.talenenergy.com/news-events/events.

    About Talen

    Talen Energy (NASDAQ: TLN) is a leading independent power producer and energy infrastructure company dedicated to powering the future. We own and operate approximately 10.7 gigawatts of power infrastructure in the United States, including 2.2 gigawatts of nuclear power and a significant dispatchable fossil fleet. We produce and sell electricity, capacity, and ancillary services into wholesale U.S. power markets, with our generation fleet principally located in the Mid-Atlantic and Montana. Our team is committed to generating power safely and reliably and delivering the most value per megawatt produced. Talen is also powering the digital infrastructure revolution. We are well-positioned to capture this significant growth opportunity, as data centers serving artificial intelligence increasingly demand more reliable, clean power. Talen is headquartered in Houston, Texas. For more information, visit https://www.talenenergy.com/.

    Investor Relations:

    Ellen Liu
    Senior Director, Investor Relations
    InvestorRelations@talenenergy.com

    Media:

    Taryne Williams
    Director, Corporate Communications
    Taryne.Williams@talenenergy.com

    Forward-Looking Statements

    This communication contains forward-looking statements within the meaning of the federal securities laws, which statements are subject to substantial risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this communication, or incorporated by reference into this communication, are forward-looking statements. Throughout this communication, we have attempted to identify forward-looking statements by using words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecasts,” “goal,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” or other forms of these words or similar words or expressions or the negative thereof, although not all forward-looking statements contain these terms. Forward-looking statements address future events and conditions concerning, among other things, capital expenditures, earnings, litigation, regulatory matters, hedging, liquidity and capital resources and accounting matters. Forward-looking statements are subject to substantial risks and uncertainties that could cause our future business, financial condition, results of operations or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this communication. All of our forward-looking statements include assumptions underlying or relating to such statements that may cause actual results to differ materially from expectations, and are subject to numerous factors that present considerable risks and uncertainties.

    TALEN ENERGY CORPORATION AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF OPERATIONS

     
        Successor     Predecessor
    (Millions of Dollars, except share data)   Year Ended
    December 31, 2024
      May 18 through
    December 31, 2023
        January 1 through
    May 17, 2023
    Capacity revenues   $ 192     $ 133       $ 108  
    Energy and other revenues     1,881       1,156         1,042  
    Unrealized gain (loss) on derivative instruments     42       55         60  
    Operating Revenues     2,115       1,344         1,210  
                   
    Fuel and energy purchases     (694 )     (424 )       (176 )
    Nuclear fuel amortization     (123 )     (108 )       (33 )
    Unrealized gain (loss) on derivative instruments     20       (3 )       (123 )
    Energy Expenses     (797 )     (535 )       (332 )
                   
    Operating Expenses              
    Operation, maintenance and development     (592 )     (358 )       (285 )
    General and administrative     (163 )     (93 )       (51 )
    Depreciation, amortization and accretion     (298 )     (165 )       (200 )
    Impairments     (1 )     (3 )       (381 )
    Other operating income (expense), net     (38 )     (30 )       (37 )
    Operating Income (Loss)     226       160         (76 )
    Nuclear decommissioning trust funds gain (loss), net     178       108         57  
    Interest expense and other finance charges     (238 )     (176 )       (163 )
    Reorganization income (expense), net                   799  
    Gain (loss) on sale of assets, net     884       7         50  
    Other non-operating income (expense), net     61       95         10  
    Income (Loss) Before Income Taxes     1,111       194         677  
    Income tax benefit (expense)     (98 )     (51 )       (212 )
    Net Income (Loss)     1,013       143         465  
    Less: Net income (loss) attributable to noncontrolling interest     15       9         (14 )
    Net Income (Loss) Attributable to Stockholders (Successor) / Member (Predecessor)   $ 998     $ 134       $ 479  
    Per Common Share (Successor)              
    Net Income (Loss) Attributable to Stockholders – Basic   $ 18.40     $ 2.27       N/A
    Net Income (Loss) Attributable to Stockholders – Diluted   $ 17.67     $ 2.26       N/A
    Weighted-Average Number of Common Shares Outstanding – Basic (in thousands)     54,254       59,029       N/A
    Weighted-Average Number of Common Shares Outstanding – Diluted (in thousands)     56,486       59,399       N/A
                           

     

    TALEN ENERGY CORPORATION AND SUBSIDIARIES

    CONSOLIDATED BALANCE SHEETS

     
        Successor
    (Millions of Dollars, except share data)   December 31,
    2024
      December 31,
    2023
    Assets        
    Cash and cash equivalents   $ 328     $ 400  
    Restricted cash and cash equivalents     37       501  
    Accounts receivable     123       137  
    Inventory, net     302       375  
    Derivative instruments     66       89  
    Other current assets     184       52  
    Total current assets     1,040       1,554  
    Property, plant and equipment, net     3,154       3,839  
    Nuclear decommissioning trust funds     1,724       1,575  
    Derivative instruments     5       6  
    Other noncurrent assets     183       147  
    Total Assets   $ 6,106     $ 7,121  
             
    Liabilities and Equity        
    Long-term debt, due within one year   $ 17     $ 9  
    Accrued interest     18       32  
    Accounts payable and other accrued liabilities     266       344  
    Derivative instruments           32  
    Other current liabilities     154       69  
    Total current liabilities     455       486  
    Long-term debt     2,987       2,811  
    Derivative instruments     7       11  
    Postretirement benefit obligations     305       368  
    Asset retirement obligations and accrued environmental costs     468       469  
    Deferred income taxes     362       407  
    Other noncurrent liabilities     135       35  
    Total Liabilities   $ 4,719     $ 4,587  
    Commitments and Contingencies        
             
    Stockholders’ Equity        
    Common stock ($0.001 par value 350,000,000 shares authorized) (a)   $     $  
    Additional paid-in capital     1,725       2,346  
    Accumulated retained earnings (deficit)     (326 )     134  
    Accumulated other comprehensive income (loss)     (12 )     (23 )
    Total Stockholders’ Equity     1,387       2,457  
    Noncontrolling interests           77  
    Total Equity     1,387       2,534  
    Total Liabilities and Equity   $ 6,106     $ 7,121  
                     

    __________________

    (a) 45,961,910 and 59,028,843 shares issued and outstanding as of December 31, 2024 (Successor) and December 31, 2023 (Successor), respectively.

    TALEN ENERGY CORPORATION AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF CASH FLOWS

     
        Successor     Predecessor
    (Millions of Dollars)   Year Ended
    December 31, 2024
      May 18 through
    December 31, 2023
        January 1 through
    May 17, 2023
    Operating Activities              
    Net income (loss)   $ 1,013     $ 143       $ 465  
    Non-cash reconciliation adjustments:              
    (Gain) loss on AWS Data Campus Sale and ERCOT Sale     (886 )              
    Depreciation, amortization and accretion     285       157         208  
    NDT funds (gain) loss, net (excluding interest and fees)     (130 )     (78 )       (43 )
    Nuclear fuel amortization     123       108         33  
    Unrealized (gains) losses on derivative instruments     (69 )     (40 )       65  
    Deferred income taxes     (46 )     55         195  
    Impairments     1       3         381  
    (Gain) loss on sales of assets, net           (7 )       (50 )
    Reorganization (income) expense, net                   (933 )
    Other     (26 )     7         7  
    Changes in assets and liabilities:              
    Inventory, net     67       (68 )       10  
    Accounts receivable     14       8         261  
    Other assets     (61 )     147         98  
    Accounts payable and accrued liabilities     (69 )     (49 )       (69 )
    Accrued interest     (15 )     28         (124 )
    Other liabilities     55       (12 )       (42 )
    Net cash provided by (used in) operating activities     256       402         462  
    Investing Activities              
    NDT funds investment purchases     (2,295 )     (1,290 )       (959 )
    NDT funds investment sale proceeds     2,263       1,265         949  
    Proceeds from AWS Data Campus Sale and ERCOT Sale     1,398                
    Nuclear fuel expenditures     (104 )     (45 )       (49 )
    Property, plant and equipment expenditures     (85 )     (116 )       (138 )
    Equity investments in affiliates     (10 )     (5 )       (8 )
    Proceeds from the sale of assets     2       8         46  
    Other investing activities     2       12         2  
    Net cash provided by (used in) investing activities     1,171       (171 )       (157 )
                               
    TALEN ENERGY CORPORATION AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF CASH FLOWS

     
        Successor     Predecessor
    (Millions of Dollars)   Year Ended
    December 31, 2024
      May 18 through
    December 31, 2023
        January 1 through
    May 17, 2023
    Financing Activities              
    Share repurchases     (1,958 )              
    TES debt issuance     849                
    TES debt repayments     (479 )              
    Cumulus Digital TLF repayment     (182 )     (15 )        
    Repurchase of noncontrolling interest     (125 )     (19 )        
    Cash settlement of restricted stock units     (32 )              
    Exercise or repurchase of warrants     (16 )     (40 )        
    Deferred financing costs     (13 )     (7 )       (74 )
    LMBE-MC TLB payments           (294 )       (7 )
    TLB-1 proceeds, net           288          
    Repayment of prepetition secured indebtedness                   (3,898 )
    Financing proceeds at Emergence, net of discount                   2,219  
    Contributions from member                   1,393  
    Payment of make-whole premiums on prepetition secured indebtedness                   (152 )
    Derivatives with financing elements                   (20 )
    Other     (7 )     3          
    Net cash provided by (used in) financing activities     (1,963 )     (84 )       (539 )
    Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash and Cash Equivalents     (536 )     147         (234 )
    Beginning of period cash and cash equivalents and restricted cash and cash equivalents     901       754         988  
    End of period cash and cash equivalents and restricted cash and cash equivalents   $ 365     $ 901       $ 754  
                               

    Non-GAAP Financial Measures

    Adjusted EBITDA and Adjusted Free Cash flow, which we use as measures of our performance and liquidity, are not financial measures prepared under GAAP. Non-GAAP financial measures do not have definitions under GAAP and may be defined and calculated differently by, and not be comparable to, similarly titled measures used by other companies. Non-GAAP measures are not intended to replace the most comparable GAAP measures as indicators of performance. Generally, a non-GAAP financial measures is a numerical measure of financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Management cautions readers not to place undue reliance on the following non-GAAP financial measures, but to also consider them along with their most directly comparable GAAP financial measures. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analyzing our results as reported under GAAP.

    Adjusted EBITDA

    We use Adjusted EBITDA to: (i) assist in comparing operating performance and readily view operating trends on a consistent basis from period to period without certain items that may distort financial results; (ii) plan and forecast overall expectations and evaluate actual results against such expectations; (iii) communicate with our Board of Directors, shareholders, creditors, analysts, and the broader financial community concerning our financial performance; (iv) set performance metrics for our annual short-term incentive compensation; and (v) assess compliance with our indebtedness.

    Adjusted EBITDA is computed as net income (loss) adjusted, among other things, for certain: (i) nonrecurring charges; (ii) non-recurring gains; (iii) non-cash and other items; (iv) unusual market events; (v) any depreciation, amortization, or accretion; (vi) mark-to-market gains or losses; (vii) gains and losses on the nuclear facility decommissioning trust (“NDT”); (viii) gains and losses on asset sales, dispositions, and asset retirement; (ix) impairments, obsolescence, and net realizable value charges; (x) interest expense; (xi) income taxes; (xii) legal settlements, liquidated damages, and contractual terminations; (xiii) development expenses; (xiv) noncontrolling interests, except where otherwise noted; and (xv) other adjustments. Such adjustments are computed consistently with the provisions of our indebtedness to the extent that they can be derived from the financial records of the business. Pursuant to TES’s debt agreements, Cumulus Digital contributes to Adjusted EBITDA beginning in the first quarter 2024, following termination of the Cumulus Digital credit facility and associated cash flow sweep.

    Additionally, we believe investors commonly adjust net income (loss) information to eliminate the effect of nonrecurring restructuring expenses and other non-cash charges, which can vary widely from company to company and from period to period and impair comparability. We believe Adjusted EBITDA is useful to investors and other users of our financial statements to evaluate our operating performance because it provides an additional tool to compare business performance across companies and between periods. Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to such items described above. These adjustments can vary substantially from company to company and period to period depending upon accounting policies, book value of assets, capital structure, and the method by which assets were acquired.

    Adjusted Free Cash Flow

    Adjusted Free Cash Flow is utilized by our chief operating decision makers to evaluate cash flow activities. Adjusted Free Cash Flow is computed as Adjusted EBITDA reduced by capital expenditures (including nuclear fuel but excluding development, growth, and (or) conversion capital expenditures), cash payments for interest and finance charges, cash payments for taxes (excluding income taxes paid from the NDT, taxes paid or deductions taken as a result of strategic asset sales, and benefits of the Nuclear PTC utilized to reduce taxes paid), and pension contributions.

    We believe Adjusted Free Cash Flow is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to determine a company’s ability to meet future obligations and to compare business performance across companies and across periods. Adjusted Free Cash Flow is widely used by investors to measure a company’s levered cash flow without regard to items such as ARO settlements; nonrecurring development, growth and conversion expenditures; and cash proceeds or payments for the sale or purchase of assets, which can vary substantially from company to company and from period to period depending upon accounting methods, book value of assets, capital structure, and the method by which assets were acquired.

    Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation

    The following table presents a reconciliation of the GAAP financial measures of “Net Income (Loss)” presented on the Consolidated Statements of Operations to the non-GAAP financial measures of Adjusted EBITDA and Adjusted Free Cash Flow:

        Successor     Predecessor
    (Millions of Dollars)   Year Ended
    December 31, 2024
      May 18 through
    December 31, 2023
        January 1 through
    May 17, 2023
    Net Income (Loss)   $ 1,013     $ 143       $ 465  
    Adjustments              
    Interest expense and other finance charges     238       176         163  
    Income tax (benefit) expense     98       51         212  
    Depreciation, amortization and accretion     298       165         200  
    Nuclear fuel amortization     123       108         33  
    Reorganization (gain) loss, net (a)                   (799 )
    Unrealized (gain) loss on commodity derivative contracts     (62 )     (52 )       63  
    Nuclear decommissioning trust funds (gain) loss, net     (178 )     (108 )       (57 )
    Stock-based compensation expense     33       19          
    Long-term incentive compensation expense     21       2          
    (Gain) loss on asset sales, net (b)     (884 )     (7 )       (50 )
    Non-cash impairments (c)     1       3         381  
    Legal settlements and litigation costs (d)     (10 )     (84 )       1  
    Unusual market events (d)     (1 )     (19 )       14  
    Net periodic defined benefit cost     14       2         (3 )
    Operational and other restructuring activities (e) (f)     76       48         17  
    Development expenses     1       7         10  
    Non-cash inventory net realizable value, obsolescence, and other charges (g)     20       4         56  
    Noncontrolling interest     (21 )     (42 )       (14 )
    Other     (10 )     10         3  
    Total Adjusted EBITDA   $ 770     $ 426       $ 695  
                   
    Capital expenditures, net     (177 )     (112 )       (96 )
    Interest and finance charge payments     (252 )     (132 )       (173 )
    Tax payments     (4 )     (5 )       (5 )
    Pension contributions     (54 )     (8 )       (3 )
    Total Adjusted Free Cash Flow   $ 283     $ 169       $ 418  
                               

    _______________

    (a) See Note 4 to the FY 2024 Financial Statements for additional information.
    (b) See Note 20 to the FY 2024 Financial Statements for additional information.
    (c) See Note 10 to the FY 2024 Financial Statements for additional information.
    (d) See Note 12 to the FY 2024 Financial Statements for additional information.
    (e) The year ended December 31, 2024 (Successor) primarily includes the effects of nonrecurring ERCOT hedge settlements that occurred after the ERCOT Sale and severance payments associated with cost reduction initiatives.
    (f) The periods from May 18 through December 31, 2023 (Successor) and from January 1 through May 17, 2023 (Predecessor) include the effects of nonrecurring costs associated with exit from the Restructuring, severance costs associated with cost reduction initiatives, and nonrecurring post-Restructuring strategic initiative costs.
    (g) See Note 8 to the FY 2024 Financial Statements for additional information.

    Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2025 Guidance

        2025E
    (Millions of dollars)   Low   High
    Net Income (Loss)   $ 155     $ 375  
             
    Adjustments        
    Interest expense and other finance charges     235       245  
    Income tax (benefit) expense     60       80  
    Depreciation, amortization and accretion     295       295  
    Nuclear fuel amortization     105       105  
    Unrealized (gain) loss on commodity derivative contracts     75       75  
    Adjusted EBITDA   $ 925     $ 1,175  
             
    Capital expenditures, net   $ (195 )   $ (205 )
    Interest and finance charge payments     (215 )     (225 )
    Tax payments     (50 )     (70 )
    Pension contributions     (70 )     (80 )
    Adjusted Free Cash Flow   $ 395     $ 595  
                     

    _______________

    Note: Figures are rounded to the nearest $5 million.

    The MIL Network

  • MIL-OSI: Inuvo Reports Record Fourth Quarter 2024 Revenue of $26.2 Million, 26% Year-Over-Year Growth and Net Income

    Source: GlobeNewswire (MIL-OSI)

    Q4 2024 Net Income of $141 thousand and Adjusted EBITDA of $1.2 million

    Inuvo management to host conference call today at 4:15 PM ET

    LITTLE ROCK, Ark., Feb. 27, 2025 (GLOBE NEWSWIRE) — Inuvo, Inc. (NYSE American: INUV), a leading provider of artificial intelligence AdTech solutions, today provided a business update and announced its financial results for the fourth quarter and full year ended December 31, 2024.

    Fourth Quarter 2024 Financial Highlights:

    • Revenue was a record $26.2 million, a 26% increase compared to $20.8 million in Q4 2023
    • Gross profit increased 20% to $21.8 million, compared to $18.2 million in Q4 2023
    • Net income was $141 thousand, compared to net loss of $2.4 million for Q4 2023
    • Adjusted EBITDA was $1.2 million, compared to a loss of $1.2 million for Q4 2023

    Full Year 2024 Financial Highlights:

    • Revenue increased 13% to $83.8 million, compared to $73.9 million in 2023
    • Gross profit increased 13% to $71.8 million, compared to $63.4 million in 2023
    • Net loss decreased by 45% to a loss of $5.8 million, compared to a net loss of $10.4 million in 2023
    • Adjusted EBITDA loss improved sixfold to $816,000 compared to $5.3 million in 2023
    • $230,000 in Net Cash from Operating activities was generated in 2024

    2024 Operational Highlights:

    • Secured a Master Services Agreement with one of the largest retailers in the world
    • Signed 33 new agencies/brands and one new platform during the year
    • Secured a $10.0 million credit line in July
    • Launched enhancements to the IntentKey Self-Serve Platform, an advanced AI agent specifically designed for audience modeling

    Richard Howe, CEO of Inuvo, stated, “Q4 2024 was a record-breaking quarter, delivering 26% year-over-year growth and generating $26.2 million in revenue—our largest quarter ever. This strong performance contributed to a 13% revenue increase for the full fiscal year. Over the past 18 quarters, we have sustained an approximately 7% compounded quarterly growth rate. This year, all our key financial metrics had strong year-over-year improvements. Notably, in Q4, we achieved positive net income and adjusted EBITDA.”

    Mr. Howe continued, “We made a number of significant technological advancements in 2024, most notably the enhancements to the IntentKey Self-Serve Platform. This groundbreaking innovation democratizes advertising by allowing anyone of any caliber to describe and then immediately execute targeting, giving the AI nothing other than some simple audience descriptions.”

    Financial Results for the Fourth Quarter and Full Year Ended December 31, 2024

    Net revenue for the fourth quarter of 2024 totaled $26.2 million, compared to $20.8 million for the same period last year, a 26% year-over-year increase. The higher revenue was due to increasing demand within both Platforms and Agencies & Brands. Net revenue for the year ended December 31, 2024 totaled $83.8 million, compared to $73.9 million during the same period in 2023, a 13% year-over-year increase.

    Cost of revenue for the fourth quarter of 2024, totaled $4.4 million compared to $2.6 million for the same period last year. Cost of revenue for the full year ended December 31, 2024, totaled $12.0 million, as compared to $10.5 million for the same period last year. The increase in the cost of revenue for the three months and full year ended December 31, 2024, as compared to the same period last year, was due to higher revenue within a Platform client this year.

    Gross profit for the fourth quarter of 2024 and full year ended December 31, 2024 totaled $21.8 million and $71.8 million, respectively, as compared $18.2 million and $63.4 million, respectively, for the same periods last year. Gross profit margin for the fourth quarter of 2024 and the full year ended December 31, 2024 was approximately 83.1% and 85.6%, respectively, as compared to 87.3% and 85.8%, respectively, for the same periods last year.

    Operating expenses for the fourth quarter of 2024 totaled $21.5 million, compared to $20.6 million for the same period last year. Operating expenses for the full year ended December 31, 2024 totaled $77.3 million, compared to $73.8 million for the same period last year. The higher operating expenses for the year ended December 31, 2024 was primarily driven by a 14.8% increase in Marketing costs compared to the same period in 2023. This increase was largely attributable to higher revenue from Platform advertisers.

    Net interest expense/income for the fourth quarter of 2024 and the full year ended December 31, 2024 was approximately an expense of $103 thousand and an income of $267 thousand, respectively, compared to an income of approximately $8 thousand and an expense of $30 thousand for the same periods last year, respectively. The higher interest expense this year was due to increased borrowing from our line of credit.

    Other expense/income for both the fourth quarter of 2024 and the full year ended December 31, 2024 was income of approximately $27 thousand, respectively, compared to income of approximately $0 and $15 thousand for the same periods last year, respectively. The income for this year was due to setup charges for new Platform partners. Last year’s income was due to unrealized and realized gains on trading securities.

    Net income for the fourth quarter of 2024 was $141 thousand, or $0.00 per basic and diluted share, as compared to net loss of $2.4 million, or $0.02 per basic and diluted share, for the same period last year. Net loss for the full year ended December 31, 2024 totaled $5.8 million, or $0.04 per basic and diluted share, as compared to net loss of $10.4 million, or $0.08 per basic and diluted share, for the same period last year.

    Adjusted EBITDA [see reconciliation table below] was approximately $1.2 million in the fourth quarter of 2024, compared to an Adjusted EBITDA loss of approximately $1.2 million for the same period last year. Adjusted EBITDA was a loss of approximately $816 thousand for the full year ended December 31, 2024, compared to a loss of approximately $5.3 million for the same period last year.

    Liquidity and Capital Resources:

    On December 31, 2024, Inuvo had $2.5 million in cash and cash equivalents, an unused working capital facility of $10.0 million and no debt.

    As of February 21, 2025, Inuvo had 142,795,483 common shares issued and outstanding.

    Conference Call Details: 
    Date: Thursday, February 27, 2025
    Time: 4:15 p.m. Eastern Standard Time 
    Toll-free Dial-in Number: 1-800-717-1738
    International Dial-in Number: 1-646-307-1865
    Conference ID: 11158080
    Webcast Link: HERE

    A telephone replay will be available through Thursday, March 13, 2025. To access the replay, please dial 1- 844-512-2921 (domestic) or 1-412-317-6671 (international). At the system prompt, please enter the code 11158080 followed by the # sign. You will then be prompted for your name, company, and phone number. Playback will then automatically begin.

    About Inuvo

    Inuvo®, Inc. (NYSE American: INUV) is a market leader in Artificial Intelligence built for advertising. Its IntentKey AI solution is a first-of-its-kind proprietary and patented technology capable of identifying and actioning to the reasons why consumers are interested in products, services, or brands, not who those consumers are. To learn more, visit www.inuvo.com.

    Safe Harbor / Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, without limitation risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Inuvo, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed on February 27, 2025, and our other filings with the SEC. Inuvo cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Inuvo does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. Inuvo further expressly disclaims any written or oral statements made by a third-party regarding the subject matter of this press release. The information which appears on our websites and our social media platforms is not part of this press release.

    Inuvo Company Contact:
    Wally Ruiz
    Chief Financial Officer
    Tel (501) 205-8397
    wallace.ruiz@inuvo.com

    Investor Relations:
    David Waldman / Natalya Rudman
    Crescendo Communications, LLC
    Tel: (212) 671-1020
    inuv@crescendo-ir.com

    (tables follow)

    INUVO, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
                           
      Three Months Ended   Twelve Months Ended
      December 31   December 31   December 31
      December 31
        2024       2023       2024       2023  
    Net revenue $ 26,189,924     $ 20,842,095     $ 83,793,859     $ 73,911,528  
    Cost of revenue   4,433,905       2,643,543       12,033,777       10,477,272  
    Gross profit   21,756,019       18,198,552       71,760,082       63,434,256  
    Operating expenses:   83.1 %     87.3 %     85.6 %     85.8 %
    Marketing costs   17,122,706       15,212,600       59,663,061       51,982,572  
    Compensation   2,703,309       3,591,109       12,065,783       13,793,309  
    General and administrative   1,709,887       1,821,821       5,545,049       8,050,590  
    Total operating expenses   21,535,902       20,625,530       77,273,893       73,826,771  
    Operating income (loss)   220,117       (2,426,978 )     (5,513,811 )     (10,392,515 )
    Interest expense (income), net   102,910       (7,884 )     266,772       29,570  
    Other income   26,812             26,812       14,668  
    Income tax expense (benefit)   2,678       (17,764 )     8,030       (17,764 )
    Net income (loss)   141,341       (2,401,330 )     (5,761,801 )     (10,389,653 )
    Other comprehensive income:                              
    Unrealized loss on marketable securities                     84,868  
    Comprehensive income (loss) $ 141,341     $ (2,401,330 )   $ (5,761,801 )   $ (10,304,785 )
                                   
    Net loss per share, basic and diluted $0.00     ($0.02 )   ($0.04 )   ($0.08 )
    Weighted average shares outstanding:                              
    Basic   140,494,192       127,381,051       139,968,374       131,116,370  
    Diluted   140,494,192       127,381,051       139,968,374       131,116,370  
                 
    INUVO, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
     
           
      December 31   December 31
      2024     2023
    Assets      
           
    Cash and cash equivalent $ 2,459,245     $ 4,440,454  
    Accounts receivable, net   12,545,771       9,226,956  
    Prepaid expenses and other current assets   639,805       1,076,121  
    Total current assets   15,644,821       14,743,531  
           
    Property and equipment, net   1,792,903       1,680,788  
           
    Goodwill   9,853,342       9,853,342  
    Intangible assets, net of accumulated amortization   3,897,875       4,664,791  
    Other assets   1,006,990       1,431,692  
           
    Total assets $ 32,195,931     $ 32,374,144  
           
    Liabilities and Stockholders’ Equity      
           
    Current liabilities      
    Accounts payable $ 8,422,351     $ 6,432,120  
    Accrued expenses and other current liabilities   9,463,537       8,100,354  
    Total current liabilities   17,885,888       14,532,474  
           
    Long-term liabilities   835,271       859,484  
           
    Total stockholders’ equity   13,474,772       16,982,186  
    Total liabilities and stockholders’ equity $ 32,195,931     $ 32,374,144  
    RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS BEFORE TAXES TO ADJUSTED EBITDA
    (unaudited)
                     
      Three Months Ended   Twelve Months Ended
        December 31     December 31   December 31   December 31
        2024       2023       2024       2023  
    Net income (loss)   141,341       (2,401,330 )   $ (5,761,801 )   $ (10,389,653 )
    Interest expense (income), net   102,910       (7,884 )     266,772       29,570  
    Income tax expense (benefit)   2,678       (17,764 )     8,030       (17,764 )
    Depreciation and amortization on PP&E   446,608       425,106       1,745,261       1,670,868  
    Amortization   123,412       264,523       824,272       1,080,690  
    EBITDA   816,949       (1,737,349 )     (2,917,466 )     (7,626,289 )
    Stock-based compensation   413,911       514,613       1,501,444       1,986,296  
    Non recurring items:                  
    Unrealized loss on marketable securities                   14,668  
    Doubtful account reserve                   361,097  
    Impairment & amortization of services agreement               600,000      
    Adjusted EBITDA   1,230,860       (1,222,736 )     (816,022 )     (5,264,228 )
                       

    Reconciliation of Operating Loss to EBITDA and Adjusted EBITDA 

    We present EBITDA and Adjusted EBITDA as a supplemental measure of our performance. We defined EBITDA as Net loss plus (i) interest expense, (ii) income tax expense, (iii) depreciation, and (iv) amortization. We further define Adjusted EBITDA as EBITDA plus (v) stock-based compensation and (vi) certain identified expenses that are not expected to recur or be representative of future ongoing operation of the business. These adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

    The MIL Network

  • MIL-OSI: AvePoint Announces Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Full year SaaS revenue of $230.7 million, representing 43% year-over-year growth, 44% on a constant currency basis
    Full year Total revenue of $330.5 million, representing 22% year-over-year growth, 22% on a constant currency basis
    Total ARR of $327.0 million, representing 24% year-over-year growth, 25% adjusted for FX

    JERSEY CITY, N.J., Feb. 27, 2025 (GLOBE NEWSWIRE) — AvePoint (NASDAQ: AVPT), the global leader in data security, governance and resilience, today announced financial results for the fourth quarter and full year ended December 31, 2024. 

    “Our fourth quarter was an outstanding close to 2024, and we are pleased with the team’s steady focus and broad-based execution,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “Our results this year – as well as our outlook for 2025 – reflect the growing demand from companies around the world for platform solutions that enable them to prepare, secure and optimize their data for AI, as well as our ongoing improvement in effectively and efficiently delivering on that demand. Today, AvePoint stands at the forefront of addressing the pivotal challenges in data security, governance, and resilience, and we are excited for the many opportunities we see in 2025 and beyond to continue driving shareholder value.”

    Fourth Quarter 2024 Financial Highlights

    • Revenue: Total revenue was $89.2 million, up 20% from the fourth quarter of 2023 and up 20% on a constant currency basis. Within total revenue, SaaS revenue was $64.8 million, up 43% from the fourth quarter of 2023 and up 44% on a constant currency basis.
    • Gross Profit: GAAP gross profit was $67.3 million, compared to $55.0 million for the fourth quarter of 2023. Non-GAAP gross profit was $67.3 million, compared to $56.1 million for the fourth quarter of 2023. Non-GAAP gross margin was 75.5%, compared to 75.2% for the fourth quarter of 2023.
    • Operating Income/(Loss): GAAP operating income was $4.9 million, compared to $0.9 million for the fourth quarter of 2023. Non-GAAP operating income was $14.5 million, compared to $10.3 million for the fourth quarter of 2023.

    Full Year 2024 Financial Highlights

    • Revenue: Total revenue was $330.5 million, up 22% from the full year 2023 and up 22% on a constant currency basis. Within total revenue, SaaS revenue was $230.7 million, up 43% from the full year 2023 and up 44% on a constant currency basis.
    • Gross Profit: GAAP gross profit was $248.0 million, compared to $194.4 million for the full year 2023. Non-GAAP gross profit was $250.2 million, compared to $198.5 million for the full year 2023. Non-GAAP gross margin was 75.7%, compared to 73.0% for the full year 2023.
    • Operating Income/(Loss): GAAP operating income was $7.2 million, compared to a GAAP operating loss of $(15.4) million for the full year 2023. Non-GAAP operating income was $47.6 million, compared to $22.2 million for the full year 2023.
    • Cash and short-term investments: $290.9 million as of December 31, 2024.
    • Cash from operations: For the twelve months ended December 31, 2024, the Company generated $88.9 million of cash from operations, compared to $34.7 million in the prior year period.

    Fourth Quarter 2024 Key Performance Indicators and Recent Business Highlights

    • ARR as of December 31, 2024 was $327.0 million, representing growth of 24% year-over-year. Adjusted for FX, ARR grew 25% year-over-year.
    • Adjusted for FX, dollar-based gross retention rate was 89%, while dollar-based net retention rate was 111%. On an as-reported basis, dollar-based gross retention rate was 88%, while dollar-based net retention rate was 110%.
    • Introduced first-to-market benchmarking capabilities within AvePoint tyGraph for Microsoft 365 Copilot to provide organizations critical insights into their AI adoption and usage patterns.
    • Announced the launch of AvePoint’s AI Lab in Singapore, to advance AI-driven research and innovation that will address global industry challenges and embed AI across the AvePoint Confidence Platform.
    • Named to the inaugural Forbes America’s Best Companies List, which recognizes the top 300 companies in the U.S. across over 60 measures, including financial performance, customer and employee satisfaction, cybersecurity, and more.

    Financial Outlook

    For the first quarter of 2025, the Company expects:

    • Total revenues of $87.8 million to $89.8 million, or year-over-year growth of 18% to 21%. On a constant currency basis, the Company expects revenue growth of 19% to 22%.
    • Non-GAAP operating income of $11.1 million to $12.1 million.

    For the full year 2025, the Company expects:

    • Total ARR of $401.3 million to $407.3 million, or year-over-year growth of 23% to 25%. Adjusted for FX, the Company expects ARR growth of 24% to 26%.
    • Total revenues of $380.0 million to $388.0 million, or year-over-year growth of 15% to 17%. On a constant currency basis, the Company expects revenue growth of 17% to 19%.
    • Non-GAAP operating income of $52.3 million to $55.3 million.

    Quarterly Conference Call

    AvePoint will host a conference call today, February 27, 2025, to review its fourth quarter and full year 2024 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. You may access the call and register with a live operator by dialing 1 (833) 816-1428 for US participants and 1 (412) 317-0520 for outside the US. The passcode for the call is 8306574. Investors can also join by webcast by visiting https://www.avepoint.com/ir/events-and-presentations. The webcast will be available live, and a replay will be available following the completion of the live broadcast for approximately 90 days.

    About AvePoint

    Beyond Secure. AvePoint is the global leader in data security, governance, and resilience, going beyond traditional solutions to ensure a robust data foundation and enable organizations everywhere to collaborate with confidence. Over 25,000 customers worldwide rely on the AvePoint Confidence Platform to prepare, secure, and optimize their critical data across Microsoft, Google, Salesforce, and other collaboration environments. AvePoint’s global channel partner program includes approximately 5,000 managed service providers, value-added resellers, and systems integrators, with our solutions available in more than 100 cloud marketplaces. To learn more, visit www.avepoint.com.

    Non-GAAP Financial Measures and Other Key Metrics

    To supplement AvePoint’s consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (including percentage of revenue figures), non-GAAP operating income and non-GAAP operating margin, and key metrics include annual recurring revenue, dollar-based gross retention rate, and dollar-based net retention rate. The company has included a reconciliation of GAAP to non-GAAP financial measures at the end of this press release. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense and the amortization of acquired intangible assets. The company believes the presentation of its non-GAAP financial measures provides a better representation as to its overall operating performance. The presentation of AvePoint’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for its financial results prepared in accordance with GAAP, and AvePoint’s non-GAAP measures may be different from non-GAAP measures used by other companies.

    Annual Recurring Revenue. This metric is calculated as the annualized sum of contractually obligated Annual Contract Value (“ACV”) from SaaS, term license and support, and maintenance revenue sources from all active customers at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, and the active contracts used in calculating ARR may or may not be extended or renewed by our customers. The company believes this metric further enables measurement of its business performance, is an important metric for financial forecasting and better enables strategic decision making. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

    Dollar-based Gross Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based gross retention rate. The company uses this metric as a measure of its ability to retain existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

    Dollar-based Net Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net expansion over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based net retention rate. The company uses this metric as a measure of its ability to expand business with existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

    Disclosure Information

    AvePoint uses its Investor Relations website (https://avepoint.com/ir) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

    Forward-Looking Statements

    This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and other federal securities laws including statements regarding the future performance of and market opportunities for AvePoint. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in the competitive and regulated industries in which AvePoint operates, variations in operating performance across competitors, changes in laws and regulations affecting AvePoint’s business and changes in AvePoint’s ability to implement business plans, forecasts, and ability to identify and realize additional opportunities, and the risk of downturns in the market and the technology industry. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of AvePoint’s most recent Annual Report on Form 10-K and its registration statement on Form S-1 and related prospectus and prospectus supplements filed with the SEC. Copies of these and other documents filed by AvePoint from time to time are available on the SEC’s website, www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and AvePoint does not assume any obligation and does not intend to update or revise these forward-looking statements after the date of this release, whether as a result of new information, future events, or otherwise, except as required by law. AvePoint does not give any assurance that it will achieve its expectations. Unless the context otherwise indicates, references in this press release to the terms “AvePoint”, “the Company”, “we”, “our” and “us” refer to AvePoint, Inc. and its subsidiaries.

    Investor Contact
    AvePoint
    Jamie Arestia
    ir@avepoint.com
    (551) 220-5654

    Media Contact
    AvePoint
    Nicole Caci
    pr@avepoint.com  
    (201) 201-8143

    AvePoint, Inc.
    Condensed Consolidated Statements of Income
    (In thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended     Year Ended  
      December 31,     December 31,  
      2024     2023     2024     2023  
    Revenue:                              
    SaaS $ 64,847     $ 45,260     $ 230,667     $ 160,961  
    Term license and support   9,432       12,270       44,560       52,744  
    Services   12,228       13,788       44,036       44,795  
    Maintenance   2,676       3,306       11,219       13,325  
    Total revenue   89,183       74,624       330,482       271,825  
    Cost of revenue:                              
    SaaS   11,405       9,338       41,544       35,924  
    Term license and support   382       505       1,584       1,946  
    Services   9,980       9,576       38,757       38,807  
    Maintenance   154       199       641       783  
    Total cost of revenue   21,921       19,618       82,526       77,460  
    Gross profit   67,262       55,006       247,956       194,365  
    Operating expenses:                              
    Sales and marketing   32,410       29,127       122,869       112,105  
    General and administrative   17,127       15,592       69,222       61,271  
    Research and development   12,872       9,409       48,699       36,340  
    Total operating expenses   62,409       54,128       240,790       209,716  
    Income (loss) from operations   4,853       878       7,166       (15,351 )
    Other expense, net   (23,458 )     (1,687 )     (31,565 )     (3,263 )
    Loss before income taxes   (18,605 )     (809 )     (24,399 )     (18,614 )
    Income tax (benefit) expense   (1,427 )     (5,245 )     4,743       2,887  
    Net (loss) income $ (17,178 )   $ 4,436     $ (29,142 )   $ (21,501 )
    Net income (loss) attributable to noncontrolling interest   7       167       (52 )     224  
    Net (loss) income available to common stockholders $ (17,185 )   $ 4,269     $ (29,090 )   $ (21,725 )
    Earnings per share:                              
    Basic $ (0.09 )   $ 0.02     $ (0.16 )   $ (0.12 )
    Diluted $ (0.09 )   $ 0.02     $ (0.16 )   $ (0.12 )
    Weighted average shares outstanding:                              
    Basic   186,605       181,152       183,721       182,257  
    Diluted   186,605       198,570       183,721       182,257  

     

    AvePoint, Inc.
    Condensed Consolidated Balance Sheets
    (In thousands, except par value)
     
      December 31,     December 31,  
      2024     2023  
    Assets              
    Current assets:              
    Cash and cash equivalents $ 290,735     $ 223,162  
    Short-term investments   167       3,721  
    Accounts receivable, net   87,365       85,877  
    Prepaid expenses and other current assets   16,528       12,824  
    Total current assets   394,795       325,584  
    Property and equipment, net   5,289       5,118  
    Goodwill   17,715       19,156  
    Intangible assets, net   8,889       10,546  
    Operating lease right-of-use assets   15,954       13,908  
    Deferred contract costs   59,838       54,675  
    Other assets   16,575       13,595  
    Total assets $ 519,055     $ 442,582  
    Liabilities, mezzanine equity, and stockholders’ equity              
    Current liabilities:              
    Accounts payable $ 2,352     $ 1,384  
    Accrued expenses and other current liabilities   76,135       53,766  
    Current portion of deferred revenue   144,468       121,515  
    Total current liabilities   222,955       176,665  
    Long-term operating lease liabilities   9,909       9,383  
    Long-term portion of deferred revenue   8,840       7,741  
    Earn-out shares liabilities         18,346  
    Other liabilities   6,403       5,603  
    Total liabilities   248,107       217,738  
    Commitments and contingencies              
    Mezzanine equity              
    Redeemable noncontrolling interest         6,038  
    Total mezzanine equity         6,038  
    Stockholders’ equity              
    Common stock, $0.0001 par value; 1,000,000 shares authorized, 194,071 and 184,652 shares issued and outstanding as of December 31, 2024 and 2023, respectively   19       18  
    Additional paid-in capital   779,007       667,881  
    Accumulated other comprehensive income   576       3,196  
    Accumulated deficit   (510,448 )     (460,496 )
    Noncontrolling interest   1,794       8,207  
    Total stockholders’ equity   270,948       218,806  
    Total liabilities, mezzanine equity, and stockholders’ equity $ 519,055     $ 442,582  
    AvePoint, Inc.
    Condensed Consolidated Statements of Cash Flows
    (In thousands)
    (Unaudited)
     
      Year Ended  
      December 31,  
      2024     2023  
    Operating activities              
    Net loss $ (29,142 )   $ (21,501 )
    Adjustments to reconcile net loss to net cash provided by operating activities:              
    Depreciation and amortization   5,382       4,687  
    Operating lease right-of-use assets expense   6,270       6,234  
    Foreign currency remeasurement loss   866        
    Stock-based compensation   39,059       36,048  
    Deferred income taxes   498       (864 )
    Other   (67 )     1,068  
    Change in value of earn-out and warrant liabilities   37,276       11,454  
    Changes in operating assets and liabilities:              
    Accounts receivable   (4,898 )     (19,448 )
    Prepaid expenses and other current assets   (3,350 )     (2,773 )
    Deferred contract costs and other assets   (8,482 )     (7,687 )
    Accounts payable, accrued expenses, operating lease liabilities and other current liabilities   16,046       609  
    Deferred revenue   29,436       26,867  
    Net cash provided by operating activities   88,894       34,694  
    Investing activities              
    Maturities of investments   5,353       2,620  
    Purchases of investments   (1,819 )     (3,497 )
    Capitalization of internal-use software   (1,211 )     (1,434 )
    Purchase of property and equipment   (3,044 )     (2,087 )
    Issuance of notes receivables   (1,750 )     (1,250 )
    Other investing activities   (130 )      
    Net cash used in investing activities   (2,601 )     (5,648 )
    Financing activities              
    Repurchase of common stock   (33,053 )     (39,036 )
    Proceeds from warrant exercises   17,182        
    Proceeds from stock option exercises   11,033       5,569  
    Redemption of redeemable noncontrolling interest   (6,130 )      
    Purchase of public warrants   (3,991 )      
    Company earn-out shares settled in cash   (572 )      
    Repayments of finance leases   (6 )     (64 )
    Payments of debt issuance costs         (136 )
    Net cash used in financing activities   (15,537 )     (33,667 )
    Effect of exchange rates on cash   (3,183 )     595  
    Net decrease in cash and cash equivalents   67,573       (4,026 )
    Cash and cash equivalents at beginning of period   223,162       227,188  
    Cash and cash equivalents at end of period $ 290,735     $ 223,162  
    Supplemental disclosures of cash flow information              
    Income taxes paid $ 6,882     $ 6,112  
    Company earn-out shares issuance $ 53,871     $  
    AvePoint, Inc.
    Non-GAAP Reconciliations
    (In thousands)
    (Unaudited)
     
      Three Months Ended     Year Ended  
      December 31,     December 31,  
      2024     2023     2024     2023  
    Non-GAAP operating income                              
    GAAP operating income (loss) $ 4,853     $ 878     $ 7,166     $ (15,351 )
    Stock-based compensation expense   9,252       9,073       39,059       36,048  
    Amortization of acquired intangible assets   356       350       1,420       1,456  
    Non-GAAP operating income $ 14,461     $ 10,301     $ 47,645     $ 22,153  
    Non-GAAP operating margin   16.2 %     13.8 %     14.4 %     8.1 %
                                   
                                   
                                   
    Non-GAAP gross profit                              
    GAAP gross profit $ 67,262     $ 55,006     $ 247,956     $ 194,365  
    Stock-based compensation expense   (201 )     869       1,315       3,161  
    Amortization of acquired intangible assets   239       239       961       964  
    Non-GAAP gross profit $ 67,300     $ 56,114     $ 250,232     $ 198,490  
    Non-GAAP gross margin   75.5 %     75.2 %     75.7 %     73.0 %
                                   
    Non-GAAP sales and marketing                              
    GAAP sales and marketing $ 32,410     $ 29,127     $ 122,869     $ 112,105  
    Stock-based compensation expense   (2,281 )     (2,251 )     (8,965 )     (9,518 )
    Amortization of acquired intangible assets   (117 )     (111 )     (459 )     (492 )
    Non-GAAP sales and marketing $ 30,012     $ 26,765     $ 113,445     $ 102,095  
    Non-GAAP sales and marketing as a % of revenue   33.7 %     35.9 %     34.3 %     37.6 %
                                   
    Non-GAAP general and administrative                              
    GAAP general and administrative $ 17,127     $ 15,592     $ 69,222     $ 61,271  
    Stock-based compensation expense   (5,032 )     (4,787 )     (20,483 )     (19,338 )
    Non-GAAP general and administrative $ 12,095     $ 10,805     $ 48,739     $ 41,933  
    Non-GAAP general and administrative as a % of revenue   13.6 %     14.5 %     14.7 %     15.4 %
                                   
    Non-GAAP research and development                              
    GAAP research and development $ 12,872     $ 9,409     $ 48,699     $ 36,340  
    Stock-based compensation expense   (2,140 )     (1,166 )     (8,296 )     (4,031 )
    Non-GAAP research and development $ 10,732     $ 8,243     $ 40,403     $ 32,309  
    Non-GAAP research and development as a % of revenue   12.0 %     11.0 %     12.2 %     11.9 %

    The MIL Network

  • MIL-OSI: PubMatic Announces Fourth Quarter and Fiscal Year Ended 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    FY Revenue of $291.3 million, up 9% over 2023;

    Delivered FY 2024 net income of $12.5 million or 4% margin;

    FY adjusted EBITDA increased 23% over 2023 and was $92.3 million or 32% margin;

    Revenue in Q4 from CTV more than doubled year over year and represented 20% of total revenue;

    Supply Path Optimization represented 53% of total activity in 2024;

    Repurchased 4.3 million shares in 2024, representing 7.9% of fully diluted shares as of December 31, 2024

    NO-HEADQUARTERS/REDWOOD CITY, Calif., Feb. 27, 2025 (GLOBE NEWSWIRE) — PubMatic, Inc. (Nasdaq: PUBM), an independent technology company delivering digital advertising’s supply chain of the future, today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.

    “Revenue growth in the year more than doubled over 2023, driven by strength in CTV, emerging revenue streams, and marquee customers choosing PubMatic to build and scale their ad businesses. Our revenue mix is evolving; in the fourth quarter, CTV more than doubled to 20% of total revenue. These achievements mark an inflection point in our underlying business that highlights critical scale on our platform and a significant shift in ad buying toward channels with the highest consumer engagement such as CTV, mobile app and commerce media,” said Rajeev Goel, co-founder and CEO at PubMatic. “Today, our omnichannel platform serves publishers, media buyers, commerce media networks, and curation/data providers, all of which are turning to sell side technology for critical end-to-end solutions needed to build their ad businesses. As we look to 2025, we expect accelerated growth in our underlying business as ad buyers seek premium, brand safe, curated inventory in the open internet.”

    Fiscal Year 2024 Financial Highlights

    • Revenue for the full year 2024 was $291.3 million, an increase of 9% over $267.0 million in 2023;
    • Gross profit was $190.2 million, or 65% margin, an improvement of 250 basis points over 2023;
    • Revenue from omnichannel video in 2024 grew 37% over the same period last year;
    • Net dollar-based retention1 was 107% for the year ended December 31, 2024;
    • GAAP net income was $12.5 million with a margin of 4%, or $0.23 per diluted share in 2024, an increase over net income2 of $8.9 million with a margin of 3%, or $0.16 per diluted share in 2023;
    • Adjusted EBITDA was $92.3 million, or 32% margin, an increase over adjusted EBITDA of $75.3 million, or 28% margin, in 2023;
    • Non-GAAP net income was $42.5 million, or $0.78 per non-GAAP diluted share in 2024, an increase over non-GAAP net income of $32.0 million, or $0.57 per non-GAAP diluted share in 2023;
    • Net cash provided by operating activities in 2024 was $73.4 million, compared to $81.1 million in the full year 2023;
    • Generated free cash flow of $34.9 million in 2024, down 34% over 2023;
    • Ended 2024 with total cash, cash equivalents, and marketable securities of $140.6 million with no debt, a decrease of 20% over the full year 2023; and
    • Through December 31, 2024, used $134.6 million in cash to repurchase 8.3 million shares of Class A common stock with $40.4 million available from the 2024 repurchase program.

    Fourth Quarter 2024 Financial Highlights

    • Revenue in the fourth quarter of 2024 was $85.5 million, an increase of 1% over $84.6 million in the same period of 2023;
    • GAAP net income was $13.9 million with a margin of 16%, or $0.26 per diluted share in the fourth quarter, compared to GAAP net income of $18.7 million with a margin of 22%, or $0.34 per diluted share in the same period of 2023;
    • Adjusted EBITDA was $37.6 million, or 44% margin, compared to $38.9 million, or 46% margin in the same period of 2023;
    • Non-GAAP net income was $21.4 million, or $0.41 per non-GAAP diluted share in the fourth quarter, compared to non-GAAP net income of $24.4 million, or $0.45 per non-GAAP diluted share in the same period of 2023; and
    • Net cash provided by operating activities was $18.0 million, compared to $28.7 million in the same period of 2023.

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

    “In 2024, we delivered record share of revenue for CTV, mobile app and emerging revenues, and achieved an all-time high of Supply Path Optimization activity. We also significantly expanded our margins, once again, demonstrating the strength of our durable model and our strategic commitment to steward both operational excellence and targeted investments for growth,” said Steve Pantelick, CFO at PubMatic. “In Q4, strong growth in the underlying business helped offset softer spending from the large DSP buyer we previously called out mid year. Going forward, we are taking a conservative approach as it relates to this buyer, and expect total revenues to grow year over year in the second half of the year once we lap this impact at the end of Q2 2025. Our underlying business, which excludes revenue from this DSP and political, is targeted to grow 15%+ and represent over two thirds of total company revenues in 2025.”

    Business Highlights

    Omnichannel platform drives revenue in key secular growth areas

    • Full year revenue from high value formats and channels, mobile and omnichannel video3, grew 17% over 2023.
    • In Q4, revenue from omnichannel video, which includes CTV, grew 37% year-over-year.
    • CTV reached scale, and was 20% of revenue in the fourth quarter, driven by growing inventory supply, SPO relationships, and strength in political advertising.
    • Revenue from mobile app grew 16% over 2023 as we scaled to over 900 mobile app publishers.

    High consumer engagement channels fuel ad demand and sell-side data curation

    • New and expanded partnerships announced in 2024 with premium streaming brands including Roku, Dish Media, Disney+ Hotstar, TCL and Xumo. We now work with 80% of the top 30 streaming publishers.
    • The number of Activate customers grew nearly 6x over 2023.
    • Supply Path Optimization represented 53% of total activity on our platform in 2024, up from 45% in 2023.
    • Connect drives more performant, targeted ad campaigns across the open internet, offering 190 data sets to ad buyers on PubMatic. Connect is a leading platform for data providers and curators to integrate first-party data, package inventory, sell to, and optimize outcomes for ad buyers.

    Focused investments drive long-term growth opportunities

    • More than doubled total addressable market to over $120 billion via products that address four key stakeholders across the digital advertising ecosystem: publishers, media buyers, curators and data providers, and commerce media networks.
    • Contribution from emerging revenue streams, which expand beyond ad monetization services, doubled from 2023.

    Recent product launches

    • Launched CTV Marketplaces, offering ad buyers pre-curated CTV inventory available only on PubMatic, built directly from our sell side technology. CTV Marketplaces allows publishers to unlock more value from their inventory and provides ad buyers off-the-shelf, easy to buy premium content and targeted audiences, including curated live sports inventory.
    • Launched Creative Category Manager, a generative AI solution that scans and classifies each video ad creative on granular criteria. First used to unlock millions of dollars in political ad spend, it drove significant CTV revenue. This gen AI solution will soon expand to other use cases and verticals.
    • Launched PubMatic Assistant, a gen AI powered reporting tool that allows publishers to request any report or data using simple plain language text queries. As a result, publishers can streamline analytics, enhance productivity and unlock new growth opportunities by uncovering insights in big data. This powerful tool removes barriers to adoption and drives increased platform usage.

    2024 operating priorities drove profitable growth

    • Aligned with our growth investments, increased global headcount in 2024 by 11% over 2023, adding new team members across product management, engineering and go-to-market teams to accelerate long-term revenue growth.
    • Infrastructure optimization initiatives and investments drove nearly 263 trillion impressions processed in 2024, an increase of 25% over 2023.
    • Cost of revenue per million impressions processed decreased 18% on a trailing twelve month period, as compared to the prior period.
    • Scaled adoption of generative AI drove increased engineering productivity by 15%+ which led to faster software development, testing and release processes.

    Financial Outlook

    Q1 outlook includes the continued headwind from one of our top DSP buyers that revised its auction approach in late May 2024. Adjusted EBITDA expectation assumes a negative FX impact predominately from Euro and Pound Sterling expenses. It also assumes that general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions.

    Accordingly, we estimate the following:

    For the first quarter of 2025, we expect the following:

    • Revenue to be in the range of $61 million to $63 million.
    • Adjusted EBITDA to be in the range of $5 million to $7 million.

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

    Conference Call and Webcast details

    PubMatic will host a conference call to discuss its financial results on Thursday, February 27, 2025 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). A live webcast of the call can be accessed from PubMatic’s Investor Relations website at https://investors.pubmatic.com. An archived version of the webcast will be available from the same website after the call.

    Non-GAAP Financial Measures

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

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

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

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

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

    Because of these and other limitations, you should consider adjusted EBITDA and non-GAAP net income along with other GAAP-based financial performance measures, including net income and our GAAP financial results.

    Forward Looking Statements

    This press release contains “forward-looking statements” regarding our future business expectations, including our guidance relating to our revenue and adjusted EBITDA for the first quarter of 2025, our expectations regarding our adjusted EBITDA, free cash flow, capital expenditures, future hiring, future market growth, our long-term revenue growth, target revenue and our ability to gain market share. These forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions and may differ materially from actual results due to a variety of factors including: our dependency on the overall demand for advertising and the channels we rely on; our existing customers not expanding their usage of our platform, or our failure to attract new publishers and buyers; our ability to maintain and expand access to spend from buyers and valuable ad impressions from publishers; the rejection of the use of digital advertising by consumers through opt-in, opt-out or ad-blocking technologies or other means; our failure to innovate and develop new solutions that are adopted by publishers; the war between Ukraine and Russia and the resumption of conflict between Israel and Palestine, and the related measures taken in response by the global community; the impacts of inflation as well as fiscal tightening and volatile interest rates; public health crises, including the resulting global economic uncertainty; limitations imposed on our collection, use or disclosure of data about advertisements; the lack of similar or better alternatives to the use of third-party cookies, mobile device IDs or other tracking technologies if such uses are restricted; any failure to scale our platform infrastructure to support anticipated growth and transaction volume; liabilities or fines due to publishers, buyers, and data providers not obtaining consents from consumers for us to process their personal data; any failure to comply with laws and regulations related to data privacy, data protection, information security, and consumer protection; and our ability to manage our growth. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. For more information about risks and uncertainties associated with our business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our SEC filings, including but not limited to, our annual report on Form 10-K and quarterly reports on From 10-Q, copies of are available on our investor relations website at https://investors.pubmatic.com and on the SEC website at www.sec.gov. All information in this press release is as of February 27, 2025. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

    About PubMatic

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

     
     
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (unaudited)
     
        December 31,
    2024
      December 31,
    2023
    ASSETS        
    Current assets        
    Cash and cash equivalents   $ 100,452     $ 78,509  
    Marketable securities     40,135       96,835  
    Accounts receivable, net     424,814       375,468  
    Prepaid expenses and other current assets     10,145       11,143  
    Total current assets     575,546       561,955  
    Property, equipment and software, net     58,522       60,729  
    Operating lease right-of-use assets     44,402       21,102  
    Acquisition-related intangible assets, net     4,284       5,864  
    Goodwill     29,577       29,577  
    Deferred tax assets     24,864       13,880  
    Other assets, non-current     2,324       2,136  
    TOTAL ASSETS   $ 739,519     $ 695,243  
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current liabilities        
    Accounts payable   $ 386,602     $ 347,673  
    Accrued liabilities     26,365       25,684  
    Operating lease liabilities, current     5,843       6,236  
    Total current liabilities     418,810       379,593  
    Operating lease liabilities, non-current     39,538       15,607  
    Other liabilities, non-current     3,908       3,844  
    TOTAL LIABILITIES     462,256       399,044  
    Stockholders’ Equity        
    Common stock     6       6  
    Treasury stock     (146,796 )     (71,103 )
    Additional paid-in capital     275,304       230,419  
    Accumulated other comprehensive loss     (636 )     (4 )
    Retained earnings     149,385       136,881  
    TOTAL STOCKHOLDERS’ EQUITY     277,263       296,199  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 739,519     $ 695,243  
     
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (unaudited)
     
        Three Months Ended December 31,   Year Ended December 31,
          2024     2023     2024     2023
    Revenue   $ 85,502   $ 84,600   $ 291,256   $ 267,014
    Cost of revenue(1)     24,935     24,208     101,027     99,229
    Gross profit     60,567     60,392     190,229     167,785
    Operating expenses:(1)                
    Technology and development     7,831     6,846     33,263     26,727
    Sales and marketing     23,763     20,353     95,369     82,803
    General and administrative(2)     14,171     12,780     57,670     56,219
    Total operating expenses     45,765     39,979     186,302     165,749
    Operating income     14,802     20,413     3,927     2,036
    Total other income, net     3,618     2,632     13,847     8,469
    Income before income taxes     18,420     23,045     17,774     10,505
    Provision for income taxes     4,521     4,343     5,270     1,624
    Net income   $ 13,899   $ 18,702   $ 12,504   $ 8,881
    Net income per share attributable to common stockholders:                
    Basic   $ 0.29   $ 0.37   $ 0.25   $ 0.17
    Diluted   $ 0.26   $ 0.34   $ 0.23   $ 0.16
    Weighted-average shares used to compute net income per share attributable to common stockholders:                
    Basic     47,993     50,659     49,213     51,760
    Diluted     52,623     54,940     54,294     56,027
     
    (1)Stock-based compensation expense includes the following:
    STOCK BASED COMPENSATION EXPENSE
    (In thousands)
    (unaudited)
     
        Three Months Ended December 31,   Year Ended December 31,
          2024     2023     2024     2023
    Cost of revenue   $         438   $         383   $         1,855   $         1,472        
    Technology and development             1,625             1,137             6,313             4,346        
    Sales and marketing             3,247             2,589             13,407             10,462        
    General and administrative             4,099             3,228             16,101             12,582        
    Total stock-based compensation   $         9,409   $         7,337   $         37,676   $         28,862        
     

    (2)On June 30, 2023, a Demand Side Platform buyer of our platform filed for Chapter 11 bankruptcy. As a result of this bankruptcy, we recorded incremental bad debt expense of $5.7 million which is reflected in our GAAP net income and adjusted EBITDA results for the year ended December 31, 2023.

     
    CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
    (In thousands)
    (unaudited)
     
        December 31,
          2024       2023  
    CASH FLOW FROM OPERATING ACTIVITIES:        
    Net Income   $ 12,504     $ 8,881  
    Adjustments to reconcile net income to net cash provided by operating activities:        
    Depreciation and amortization     45,352       44,770  
    Stock-based compensation     37,676       28,862  
    Provision for doubtful accounts           5,675  
    Deferred income taxes     (10,984 )     (13,406 )
    Accretion of discount on marketable securities     (4,117 )     (4,093 )
    Non-cash lease expense     6,801       6,145  
    Other     (25 )     45  
    Changes in operating assets and liabilities:        
       Accounts receivable     (49,345 )     (75,716 )
       Prepaid expenses and other current assets     (5,826 )     3,918  
       Accounts payable     38,096       79,687  
       Accrued liabilities     9,627       3,035  
       Operating lease liabilities     (6,531 )     (5,789 )
       Other liabilities, non-current     197       (893 )
    Net cash provided by operating activities     73,425       81,121  
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Purchases of and deposits on property and equipment     (17,592 )     (10,601 )
    Capitalized software development costs     (20,936 )     (17,687 )
    Purchases of marketable securities     (142,016 )     (140,603 )
    Proceeds from sales of marketable securities           18,873  
    Proceeds from maturities of marketable securities     202,858       111,000  
    Net cash provided by (used in) investing activities     22,314       (39,018 )
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Payment of business combination indemnification claims holdback     (2,148 )      
    Proceeds from issuance of common stock for employee stock purchase plan     2,368       1,869  
    Proceeds from exercise of stock options     1,765       1,549  
    Principal payments on finance lease obligations     (131 )     (126 )
    Payments to acquire treasury stock     (75,332 )     (59,268 )
    Net cash used in financing activities     (73,478 )     (55,976 )
    NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     22,261       (13,873 )
    Effect of foreign currency on cash     (318 )      
    CASH AND CASH EQUIVALENTS – Beginning of year     78,509       92,382  
    CASH AND CASH EQUIVALENTS – End of year   $ 100,452     $ 78,509  
     
    RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA AND NON-GAAP NET INCOME
    (In thousands, except per share amounts)
    (unaudited)
     
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Reconciliation of net income:                
    Net income   $ 13,899     $ 18,702     $ 12,504     $ 8,881  
    Add back (deduct):                
    Stock-based compensation     9,409       7,337       37,676       28,862  
    Depreciation and amortization     11,421       11,039       45,352       44,770  
    Interest income     (1,604 )     (2,515 )     (8,477 )     (8,828 )
    Provision for income taxes     4,521       4,343       5,270       1,624  
    Adjusted EBITDA1   $ 37,646     $ 38,906     $ 92,325     $ 75,309  
                     
    Revenue   $ 85,502     $ 84,600     $ 291,256     $ 267,014  
    Adjusted EBITDA margin     44 %     46 %     32 %     28 %
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Reconciliation of net income per share:                
    Net income   $ 13,899     $ 18,702     $ 12,504     $ 8,881  
    Add back (deduct):                
    Stock-based compensation     9,409       7,337       37,676       28,862  
    Adjustment for income taxes     (1,865 )     (1,590 )     (7,728 )     (5,695 )
    Non-GAAP net income1   $ 21,443     $ 24,449     $ 42,452     $ 32,048  
    GAAP diluted EPS   $ 0.26     $ 0.34     $ 0.23     $ 0.16  
    Non-GAAP diluted EPS   $ 0.41     $ 0.45     $ 0.78     $ 0.57  
    GAAP weighted average shares outstanding—diluted     52,623       54,940       54,294       56,027  
    Non-GAAP weighted average shares outstanding—diluted     52,623       54,940       54,294       56,027  
     
    SUPPLEMENTAL CASH FLOW INFORMATION
    COMPUTATION OF FREE CASH FLOW, A NON-GAAP MEASURE
    (In thousands)
    (unaudited)
     
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Reconciliation of cash provided by operating activities:                
    Net cash provided by operating activities   $ 18,048     $ 28,674     $ 73,425     $ 81,121  
    Less: Purchases of property and equipment     (4,324 )     (5,177 )     (17,592 )     (10,601 )
    Less: Capitalized software development costs     (4,868 )     (3,962 )     (20,936 )     (17,687 )
    Free cash flow   $ 8,856     $ 19,535     $ 34,897     $ 52,833  
     

    1 Net income, Adjusted EBITDA, and Non-GAAP net income for the twelve months ended December 31, 2024 include other income of $4.0 million related to our efforts to build and test integrations with the Google Privacy Sandbox.


    1 Net dollar-based retention is calculated by starting with the revenue from publishers in the trailing twelve months ended December 31, 2023 (“Prior Period Revenue”). We then calculate the revenue from these same publishers in the trailing twelve months ended December 31, 2024 (“Current Period Revenue”). Current Period Revenue includes any upsells and is net of contraction or attrition, but excludes revenue from new publishers. Our net dollar-based retention rate equals the Current Period Revenue divided by Prior Period Revenue. Net dollar-based retention rate is an important indicator of publisher satisfaction and usage of our platform, as well as potential revenue for future periods.
    2 Fiscal year 2023 GAAP net income includes approximately $5.7 million of incremental bad debt expense related to the bankruptcy of a Demand Side Platform buyer of our platform.
    3 Omnichannel video spans across desktop, mobile and CTV devices.

    The MIL Network

  • MIL-OSI: Definitive Healthcare Reports Financial Results for Fourth Quarter and Full Fiscal Year 2024

    Source: GlobeNewswire (MIL-OSI)

    FRAMINGHAM, Mass., Feb. 27, 2025 (GLOBE NEWSWIRE) — Definitive Healthcare Corp. (“Definitive Healthcare” or the “Company”) (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced financial results for the quarter and full year ended December 31, 2024. 

    Fourth Quarter 2024 Financial Highlights:

    • Revenue was $62.3 million, a decrease of 6% from $65.9 million in Q4 2023. 
    • Net Loss, inclusive of goodwill impairment charges of $97.1 million, was $(84.7) million, or (136)% of revenue, compared to $(13.4) million or (20)% of revenue in Q4 2023.  
    • Adjusted Net Income was $12.6 million, compared to $10.6 million in Q4 2023.   
    • Adjusted EBITDA was $17.5 million, or 28% of revenue, compared to $19.8 million, or 30% of revenue in Q4 2023.  
    • Cash Flow from Operations was $8.1 million in the quarter.
    • Unlevered Free Cash Flow was $(1.6) million in the quarter.

    Full Year 2024 Financial Highlights:

    • Revenue was $252.2 million, compared to $251.4 million for the full year 2023. 
    • Net Loss, inclusive of goodwill impairment charges of $688.9 million, was $(591.4) million, or (235)% of revenue, compared to $(289.6) million, inclusive of goodwill impairment charges of $287.4 million, or (115)% of revenue for the full year 2023.  
    • Adjusted Net Income was $55.1 million, compared to $46.7 million for the full year 2023.   
    • Adjusted EBITDA was $79.1 million, or 31% of revenue, compared to $74.5 million, or 30% of revenue for the full year 2023.  
    • Cash Flow from Operations was $58.2 million for the full year 2024, up 41% from $41.2 million for the full year 2023.
    • Unlevered Free Cash Flow was $72.5 million for the full year 2024, up 6% from $68.6 million for the full year 2023.

    “Revenue and adjusted EBITDA were above the high end of our guided ranges despite challenging commercial conditions,” said Kevin Coop, CEO of Definitive Healthcare. “We executed on delivering new business growth, securing new logos and expanding relationships with existing customers through upsell and cross-sell opportunities. We are committed to building on this momentum as we move into 2025.

    “I’m also pleased to announce that after a thorough search process, Casey Heller, our Senior Vice President of Finance, will assume the role of Chief Financial Officer, effective on June 2, 2025. We expect a smooth transition as she is already responsible for a significant portion of the company’s financial functions, including all aspects of commercial and operational finance, FP&A, and investor relations. In addition, Rick Booth will continue to serve as CFO until early June to give us time to backfill Casey’s current position and enable her to hit the ground running as CFO with a full team.”

    Recent Business and Operating Highlights: 

    Customer Wins

    In the fourth quarter, Definitive Healthcare continued to win new logos across all end-markets, by providing the data, insights, and integrations that drive their critical business use cases. Customer wins for the quarter included:

    • A behavioral and mental health screening company is leveraging our reference, affiliation, and claims data to identify and build stronger relationships with the right doctors and practices. They’ve also created an AI-powered tool that leverages insights from our data to compare physician prescribing habits, helping health systems improve care and drive growth.
    • A leading U.S. supplier of industrial, medical, and specialty gases chose us to gain insights into complex IDN hierarchies, identify high-volume facilities, navigate the Healthcare RFP process, and expand into new markets like surgery centers and post-acute facilities. This partnership also helps them connect with key nursing, procurement, and purchasing executives at both the facility and group purchasing organization (GPO) levels.
    • A large pharmaceutical company is leveraging our data along with their own internal and third-party data inside a robust master data management (MDM) system they have built, to develop a sophisticated patient and provider segmentation machine learning model, along with a next-best action program, to support the launch of a new pain medication. Definitive not only provides critical data and services to enable this integration, but our expertise also increases the value the customer derives from their existing platform investments.

    Business Outlook 

    Based on information as of February 27, 2025, the Company is issuing the following financial guidance.  

    First Quarter 2025:  

    • Revenue is expected to be in the range of $55.5 – $57.0 million. 
    • Adjusted Operating Income is expected to be in the range of $7.5 – $8.5 million. 
    • Adjusted EBITDA is expected to be in the range of $10.5 – $11.5 million, and 19 – 20% adjusted EBITDA margin. 
    • Adjusted Net Income is expected to be $3.0 – $4.0 million. 
    • Adjusted Net Income Per Diluted Share is expected to be approximately $0.02 per share on approximately 153.3 million weighted-average shares outstanding. 

    Full Year 2025:  

    • Revenue is expected to be in the range of $230.0 – $240.0 million.
    • Adjusted Operating Income is expected to be in the range of $49.0 – $53.0 million. 
    • Adjusted EBITDA is expected to be in the range of $61.0 – $65.0 million, for a full-year adjusted EBITDA margin ranging from 26 – 28%. 
    • Adjusted Net Income is expected to be $30.0 – $34.0 million. 
    • Adjusted Net Income Per Diluted Share is expected to be $0.19 – $0.22 per share on approximately 153.9 million weighted-average shares outstanding. 

    We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty in predicting certain items excluded from these non-GAAP financial measures; in particular, the effects of equity-based compensation expense, taxes and amounts under the tax receivable agreement, deferred tax assets and deferred tax liabilities, and transaction, integration, and restructuring expenses. We expect the variability of these excluded items may have a significant and potentially unpredictable impact on our future GAAP financial results. 

    Conference Call Information 

    Definitive Healthcare will host a conference call today February 27, 2025, at 5:00 p.m. (Eastern Time) to discuss the Company’s full financial results and current business outlook. Participants may access the call at 1-877-358-7298 or 1-848-488-9244. Shortly after the conclusion of the call, a replay of this conference call will be available through March 29, 2025, at 1-800-645-7964 or 1-757-849-6722. The replay passcode is 1765#. A live audio webcast of the event will be available on Definitive Healthcare’s Investor Relations website at https://ir.definitivehc.com/.

    About Definitive Healthcare 

    At Definitive Healthcare, our passion is to transform data, analytics and expertise into healthcare commercial intelligence. We help clients uncover the right markets, opportunities and people, so they can shape tomorrow’s healthcare industry. Learn more at definitivehc.com.

    Forward-Looking Statements 

    This press release includes forward-looking statements that reflect our current views with respect to future events and financial performance. Such statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by words or phrases written in the future tense and/or preceded by words such as “likely,” “will,” “should,” “may,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “assumes,” “would,” “potentially” or similar words or variations thereof, or the negative thereof, references to future periods, or by the inclusion of forecasts or projections, but these terms are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our outlook, financial guidance, the benefits of our healthcare commercial intelligence solutions, our overall future prospects, customer behaviors and use of our solutions, the market, industry and macroeconomic environment, our plans to improve our operational and financial performance and our business, our ability to execute on our plans, customer growth, including our upsell and cross-sell opportunities, and our ability to successfully transition executive leadership. Forward-looking statements in this press release 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 actual results to differ materially from those in the forward-looking statements include the following: global geopolitical tension and difficult macroeconomic conditions; actual or potential changes in international, national, regional and local economic, business and financial conditions, including trade tensions, recessions, inflation, high interest rates, volatility in the capital markets and related market uncertainty; our inability to acquire new customers and generate additional revenue from existing customers; our inability to generate sales of subscriptions to our platform or any decline in demand for our platform and the data we offer; the competitiveness of the market in which we operate and our ability to compete effectively; the failure to maintain and improve our platform, or develop new modules or insights for healthcare commercial intelligence; the inability to obtain and maintain accurate, comprehensive or reliable data, which could result in reduced demand for our platform; the loss of our access to our data providers; the failure to respond to advances in healthcare commercial intelligence; an inability to attract new customers and expand subscriptions of current customers; our ability to successfully transition executive leadership; the possibility that our security measures are breached or unauthorized access to data is otherwise obtained; and the risks of being required to collect sales or other related taxes for subscriptions to our platform in jurisdictions where we have not historically done so.  

    Additional factors or events that could cause our actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for us to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements. 

    For additional discussion of factors that could impact our operational and financial results, refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 that will be filed following this earnings release, as well as our Current Reports on Form 8-K and other subsequent SEC filings, which are or will be available on the Investor Relations page of our website at ir.definitivehc.com and on the SEC website at www.sec.gov. 

    All information in this press release speaks only as of the date on which it is made. We undertake no obligation to publicly update this information, whether as a result of new information, future developments or otherwise, except as may be required by law. 

    Website 

    Definitive Healthcare intends to use its website as a distribution channel of material company information. Financial and other important information regarding the Company is routinely posted on and accessible through the Company’s website at https://www.definitivehc.com/. Accordingly, you should monitor the investor relations portion of our website at https://ir.definitivehc.com/ in addition to following our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the “Email Alerts” section of our investor relations page at https://ir.definitivehc.com/. 

    Non-GAAP Financial Measures   

    We have presented supplemental non-GAAP financial measures as part of this earnings release. We believe that these supplemental non-GAAP financial measures are useful to investors because they allow for an evaluation of the Company with a focus on the performance of its core operations, including providing meaningful comparisons of financial results to historical periods and to the financial results of peer and competitor companies. Our use of these non-GAAP terms may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies and are not measures of performance calculated in accordance with GAAP. Our presentation of these non-GAAP financial measures are intended as supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures should not be considered as alternatives to loss from operations, net loss, earnings per share, or any other performance measures derived in accordance with GAAP or as measures of operating cash flows or liquidity. A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. In evaluating our non-GAAP financial measures, you should be aware that in the future, we may incur expenses similar to those eliminated in these presentations.

    We refer to Unlevered Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Net Income and Adjusted Net Income Per Diluted Share as non-GAAP financial measures. These non-GAAP financial measures are not required by or prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). These are supplemental financial measures of our performance and should not be considered substitutes for cash provided by (used in) operating activities, loss from operations, net (loss) income, net (loss) income margin, gross profit, gross margin, or any other measure derived in accordance with GAAP. 

    We define Unlevered Free Cash Flow as net cash provided by operating activities less purchases of property, equipment and other assets, plus cash interest expense, and cash payments related to transaction, integration, and restructuring related expenses, earnouts, and other non-core items. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements. 

    We define EBITDA as earnings before debt-related costs, including interest expense, net, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items of a significant or unusual nature, including other income, net, equity-based compensation, transaction, integration, and restructuring expenses, goodwill impairments and other non-core expenses. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin are key metrics used by management and our board of directors to assess the profitability of our operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to help investors to assess our operating performance because these metrics eliminate non-core and unusual items and non-cash expenses, which we do not consider indicative of ongoing operational performance. We believe that these metrics are helpful to investors in measuring the profitability of our operations on a consolidated level.  

    We define Adjusted Gross Profit as gross profit excluding acquisition-related amortization and equity-based compensation costs and Adjusted Gross Margin is defined as Adjusted Gross Profit as a percentage of revenue. Adjusted Gross Profit and Adjusted Gross Margin are key metrics used by management and our board of directors to assess our operations. We exclude acquisition-related depreciation and amortization expenses as they have no direct correlation to the cost of operating our business on an ongoing basis. A small portion of equity-based compensation is included in cost of revenue in accordance with GAAP but is excluded from our Adjusted Gross Profit calculations due to its non-cash nature.  

    We define Adjusted Operating Income as loss from operations plus acquisition related amortization, equity-based compensation, transaction, integration, and restructuring expenses, goodwill impairments and other non-core expenses.  

    We define Adjusted Net Income as Adjusted Operating Income less interest (expense), income net, recurring income tax (provision) benefit, foreign currency gain (loss), and tax impacts of adjustments. We define Adjusted Net Income Per Diluted Share as Adjusted Net Income divided by diluted outstanding shares. 

    In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in these presentations. 

    Investor Contact: 
    Brian Denyeau 
    ICR for Definitive Healthcare 
    brian.denyeau@icrinc.com
    646-277-1251 

    Media Contact: 
    Bethany Swackhamer
    bswackhamer@definitivehc.com

     
    Definitive Healthcare Corp.
    Consolidated Balance Sheets
    (amounts in thousands, except number of shares and par value; unaudited)
             
        December 31, 2024   December 31, 2023
    Assets        
    Current assets:        
    Cash and cash equivalents   $ 105,378     $ 130,976  
    Short-term investments     184,786       177,092  
    Accounts receivable, net     53,232       59,249  
    Prepaid expenses and other assets     13,040       13,120  
    Deferred contract costs     13,736       13,490  
    Total current assets     370,172       393,927  
    Property and equipment, net     3,791       4,471  
    Operating lease right-of-use assets, net     7,521       9,594  
    Other assets     2,300       2,388  
    Deferred contract costs     14,389       17,320  
    Intangible assets, net     297,933       323,121  
    Goodwill     393,283       1,075,080  
    Total assets   $ 1,089,389     $ 1,825,901  
    Liabilities and Equity        
    Current liabilities:        
    Accounts payable   $ 10,763     $ 5,787  
    Accrued expenses and other liabilities     40,896       51,529  
    Deferred revenue     93,344       97,377  
    Term loan     13,750       13,750  
    Operating lease liabilities     2,408       2,239  
    Total current liabilities     161,161       170,682  
    Long-term liabilities:        
    Deferred revenue     32       9  
    Term loan     229,368       242,567  
    Operating lease liabilities     7,586       9,372  
    Tax receivable agreements liability     49,511       127,000  
    Deferred tax liabilities     25,088       67,163  
    Other liabilities     9,449       9,934  
    Total liabilities     482,195       626,727  
             
    Equity:        
    Class A Common Stock, par value $0.001, 600,000,000 shares authorized, 113,953,554 and 116,562,252 shares issued and outstanding at December 31, 2024 and 2023, respectively     114       117  
    Class B Common Stock, par value $0.00001, 65,000,000 shares authorized, 39,439,198 and 39,375,806 shares issued and outstanding, respectively, at December 31, 2024, and 39,762,700 and 39,168,047 shares issued and outstanding, respectively, at December 31, 2023            
    Additional paid-in capital     1,085,445       1,086,581  
    Accumulated other comprehensive (deficit) income     (610 )     2,109  
    Accumulated deficit     (640,574 )     (227,450 )
    Noncontrolling interests     162,819       337,817  
    Total equity     607,194       1,199,174  
    Total liabilities and equity   $ 1,089,389     $ 1,825,901  
             
    Definitive Healthcare Corp.
    Consolidated Statements of Operations
    (amounts in thousands, except share amounts and per share data; unaudited)
                     
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Revenue   $ 62,288     $ 65,932     $ 252,202     $ 251,415  
    Cost of revenue:                
    Cost of revenue exclusive of amortization (1)     10,967       9,447       40,684       34,740  
    Amortization     3,719       3,066       14,049       12,742  
    Gross profit     47,602       53,419       197,469       203,933  
    Operating expenses:                
    Sales and marketing (1)     20,372       23,605       83,807       94,534  
    Product development (1)     8,982       11,569       36,518       42,441  
    General and administrative (1)     8,503       16,567       49,267       58,861  
    Depreciation and amortization     9,413       9,935       37,618       39,008  
    Transaction, integration, and restructuring expenses     2,835       1,823       12,225       11,489  
    Goodwill impairment     97,060             688,854       287,400  
    Total operating expenses     147,165       63,499       908,289       533,733  
    Loss from operations     (99,563 )     (10,080 )     (710,820 )     (329,800 )
    Other (expense) income, net:                
    Interest expense, net     (303 )     (125 )     (245 )     (1,559 )
    Other income (expense), net     9,254       (1,982 )     77,320       23,179  
    Total other income (expense), net     8,951       (2,107 )     77,075       21,620  
    Loss before income taxes     (90,612 )     (12,187 )     (633,745 )     (308,180 )
    Benefit from (provision for) income taxes     5,895       (1,175 )     42,299       18,553  
    Net loss     (84,717 )     (13,362 )     (591,446 )     (289,627 )
    Less: Net loss attributable to noncontrolling interests     (25,642 )     (3,129 )     (178,322 )     (87,239 )
    Net loss attributable to Definitive Healthcare Corp.   $ (59,075 )   $ (10,233 )   $ (413,124 )   $ (202,388 )
    Net loss per share of Class A Common Stock:                
    Basic   $ (0.51 )   $ (0.09 )   $ (3.54 )   $ (1.79 )
    Diluted   $ (0.51 )   $ (0.09 )   $ (3.54 )   $ (1.79 )
    Weighted average Common Stock outstanding:                
    Basic     115,015,489       116,418,495       116,640,183       112,764,537  
    Diluted     115,015,489       116,418,495       116,640,183       112,764,537  
                     
    (1) Amounts include equity-based compensation expense as follows:      
                     
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Cost of revenue   $ 171     $ 267     $ 839     $ 1,097  
    Sales and marketing     1,449       3,110       6,235       11,407  
    Product development     1,651       3,572       8,579       13,138  
    General and administrative     4,094       6,305       22,432       23,097  
    Total equity-based compensation expense   $ 7,365     $ 13,254     $ 38,085     $ 48,739  
                     
    Definitive Healthcare Corp.
    Consolidated Statements of Cash Flows
    (amounts in thousands; unaudited)
                   
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Cash flows provided by (used in) operating activities:              
    Net loss $ (84,717 )   $ (13,362 )   $ (591,446 )   $ (289,627 )
    Adjustments to reconcile net loss to net cash provided by operating activities:              
    Depreciation and amortization   526       562       2,245       1,953  
    Amortization of intangible assets   12,606       12,439       49,422       49,797  
    Amortization of deferred contract costs   3,978       3,488       15,441       12,963  
    Equity-based compensation   7,365       13,254       38,085       48,739  
    Amortization of debt issuance costs   175       175       702       702  
    Provision for bad debt expense         554       947       1,374  
    Non-cash restructuring charges   192             1,239       155  
    Goodwill impairment charges   97,060             688,854       287,400  
    Tax receivable agreement remeasurement   (8,758 )     1,507       (76,909 )     (23,470 )
    Changes in fair value of contingent consideration   1,460       302       (1,780 )     302  
    Deferred income taxes   (6,061 )     1,015       (42,670 )     (18,713 )
    Changes in operating assets and liabilities:              
    Accounts receivable   (17,455 )     (18,559 )     5,693       811  
    Prepaid expenses and other assets   (627 )     (1,348 )     (7,832 )     (7,156 )
    Deferred contract costs   (4,481 )     (5,770 )     (12,756 )     (18,790 )
    Contingent consideration               (602 )      
    Accounts payable, accrued expenses, and other liabilities   (285 )     2,919       (5,458 )     1,330  
    Deferred revenue   7,157       7,533       (4,979 )     (6,580 )
    Net cash provided by operating activities   8,135       4,709       58,196       41,190  
    Cash flows (used in) provided by investing activities:              
    Purchases of property, equipment, and other assets   (10,901 )     (594 )     (12,344 )     (2,977 )
    Purchases of short-term investments   (111,634 )     (45,595 )     (304,304 )     (259,208 )
    Maturities of short-term investments   96,265       100,596       303,769       275,426  
    Cash paid for acquisitions and investments, net of cash acquired               (13,530 )     (45,023 )
    Net cash (used in) provided by investing activities   (26,270 )     54,407       (26,409 )     (31,782 )
    Cash flows used in financing activities:              
    Repayments of term loans   (3,437 )     (3,438 )     (13,750 )     (8,594 )
    Taxes paid related to net share settlement of equity awards   (278 )     (1,035 )     (7,548 )     (4,432 )
    Repurchases of Class A Common Stock   (7,329 )           (22,366 )      
    Payments of contingent consideration               (1,000 )      
    Payments under tax receivable agreement               (6,950 )     (246 )
    Payments of equity offering issuance costs                     (30 )
    Member distributions   (2,324 )     (1,589 )     (5,135 )     (12,282 )
    Net cash used in financing activities   (13,368 )     (6,062 )     (56,749 )     (25,584 )
    Net (decrease) increase in cash and cash equivalents   (31,503 )     53,054       (24,962 )     (16,176 )
    Effect of exchange rate changes on cash and cash equivalents   (728 )     462       (636 )     218  
    Cash and cash equivalents, beginning of year   137,609       77,460       130,976       146,934  
    Cash and cash equivalents, end of year $ 105,378     $ 130,976     $ 105,378     $ 130,976  
    Supplemental cash flow disclosures:              
    Cash paid during the period for:              
    Interest $ 3,310     $ 3,684     $ 14,196     $ 14,456  
    Income taxes                     136  
    Acquisitions:              
    Net assets acquired, net of cash acquired $     $     $ 13,675     $ 52,678  
    Working capital adjustment receivable               (145 )     145  
    Contingent consideration                     (7,800 )
    Net cash paid for acquisitions $     $     $ 13,530     $ 45,023  
                   
    Supplemental disclosure of non-cash investing activities:              
    Capital expenditures included in accounts payable and accrued expenses and other liabilities $ 6,870     $ 47     $ 6,870     $ 47  
                   
    Definitive Healthcare Corp.
    Reconciliations of Non-GAAP Financial Measures to Closest GAAP Equivalent
                   
    Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash Flow
    (in thousands; unaudited)
                   
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Net cash provided by operating activities $ 8,135     $ 4,709     $ 58,196     $ 41,190  
    Purchases of property, equipment, and other assets   (10,901 )     (594 )     (12,344 )     (2,977 )
    Interest paid in cash   3,310       3,684       14,196       14,456  
    Transaction, integration, and restructuring expenses paid in cash (a)   1,183       1,521       12,766       11,032  
    Earnout payment (b)               602        
    Other non-core items (c)   (3,311 )     1,803       (936 )     4,875  
    Unlevered Free Cash Flow $ (1,584 )   $ 11,123     $ 72,480     $ 68,576  
                   
    (a) Transaction and integration expenses paid in cash primarily represent legal, accounting, and consulting expenses related to our acquisitions. Restructuring expenses paid in cash relate to our restructuring plans announced in the first quarter of 2024 and the first and third quarters of 2023, along with exit costs related to office relocations.
    (b) Earnout payment represents final settlement of contingent consideration included in cash flow from operations.
    (c) Other non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and/or unrelated to our core operations.
                   
    Reconciliation of GAAP Net Loss to Adjusted Net Income and
    GAAP Operating Loss to Adjusted Operating Income
    (in thousands, except per share amounts; unaudited)
                   
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Net loss $ (84,717 )   $ (13,362 )   $ (591,446 )   $ (289,627 )
    Add: Income tax (benefit) provision   (5,895 )     1,175       (42,299 )     (18,553 )
    Add: Interest expense, net   303       125       245       1,559  
    Add: Other (income) expense, net   (9,254 )     1,982       (77,320 )     (23,179 )
    Loss from operations   (99,563 )     (10,080 )     (710,820 )     (329,800 )
    Add: Amortization of intangible assets acquired through business combinations   11,370       11,510       45,239       46,099  
    Add: Equity-based compensation   7,365       13,254       38,085       48,739  
    Add: Transaction, integration, and restructuring expenses   2,835       1,823       12,225       11,489  
    Add: Goodwill impairment   97,060             688,854       287,400  
    Add: Other non-core items   (3,311 )     1,803       (936 )     4,875  
    Adjusted Operating Income   15,756       18,310       72,647       68,802  
    Less: Interest expense, net   (303 )     (125 )     (245 )     (1,559 )
    Less: Recurring income tax benefit (provision) (a)   60       (1,175 )     669       1,374  
    Less: Foreign currency gain (loss)   496       (475 )     411       (291 )
    Less: Tax impacts of adjustments to net loss   (3,458 )     (5,886 )     (18,341 )     (21,633 )
    Adjusted Net Income $ 12,551     $ 10,649     $ 55,141     $ 46,693  
    Shares for Adjusted Net Income Per Diluted Share (b)   154,404,162       155,560,756       155,853,282       154,836,706  
    Adjusted Net Income Per Diluted Share $ 0.08     $ 0.07     $ 0.35     $ 0.30  
                   
    (a) Recurring income tax benefit (provision) excludes the income tax impact of goodwill impairment charges.
    (b) Diluted Adjusted Net Income Per Share is computed by giving effect to all potential weighted average Class A common stock and any securities that are convertible into Class A common stock, including Definitive OpCo units and restricted stock units. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method assuming proceeds from unrecognized compensation as required by GAAP. Fully diluted shares are 162,498,543 and 163,153,442 as of December 31, 2024 and 2023, respectively.
                   
    Reconciliation of GAAP Gross Profit and Margin to Adjusted Gross Profit and Margin
    (in thousands; unaudited)
                                     
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    (in thousands)   Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue
    Reported gross profit and margin   $ 47,602   76 %   $ 53,419   81 %   $ 197,469   78 %   $ 203,933   81 %
    Amortization of intangible assets resulting from acquisition-related purchase accounting adjustments     2,483   4 %     2,137   3 %     9,866   4 %     9,044   4 %
    Equity-based compensation costs     171   0 %     267   0 %     839   0 %     1,097   0 %
    Adjusted gross profit and margin   $ 50,256   81 %   $ 55,823   85 %   $ 208,174   83 %   $ 214,074   85 %
                                     
    Reconciliation of GAAP Net Loss to Adjusted EBITDA
    (in thousands; unaudited)
                                   
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
      Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue
    Net loss and margin $ (84,717 )     (136 )%   $ (13,362 )     (20 )%   $ (591,446 )   (235 )%   $ (289,627 )   (115 )%
    Interest expense, net   303       0 %     125       0 %     245     0 %     1,559     1 %
    Income tax (benefit) provision   (5,895 )     (9 )%     1,175       2 %     (42,299 )   (17 )%     (18,553 )   (7 )%
    Depreciation & amortization   13,132       21 %     13,001       20 %     51,667     20 %     51,750     21 %
    EBITDA and margin   (77,177 )     (124 )%     939       1 %     (581,833 )   (231 )%     (254,871 )   (101 )%
    Other (income) expense, net (a)   (9,254 )     (15 )%     1,982       3 %     (77,320 )   (31 )%     (23,179 )   (9 )%
    Equity-based compensation (b)   7,365       12 %     13,254       20 %     38,085     15 %     48,739     19 %
    Transaction, integration, and restructuring expenses (c)   2,835       5 %     1,823       3 %     12,225     5 %     11,489     5 %
    Goodwill impairment (d)   97,060       156 %           0 %     688,854     273 %     287,400     114 %
    Other non-core items (e)   (3,311 )     (5 )%     1,803       3 %     (936 )   (0 )%     4,875     2 %
    Adjusted EBITDA and margin $ 17,518       28 %   $ 19,801       30 %   $ 79,075     31 %   $ 74,453     30 %
                                   
    (a) Primarily represents TRA liability remeasurement and foreign exchange gains and losses.
    (b) Equity-based compensation represents non-cash compensation expense recognized in association with equity awards made to employees and directors.
    (c) Transaction and integration expenses primarily represent legal, accounting, and consulting expenses and fair value adjustments for contingent consideration related to our acquisitions and strategic partnerships. Restructuring expenses relate to the 2024 Restructuring Plan and those we committed to during the first and third quarters of 2023, as well as impairment and restructuring charges related to office closures, relocations, and consolidations.
                                   
     
    Three Months Ended December 31,
      Year Ended December 31,                
    (in thousands)   2024       2023       2024       2023                  
    Merger and acquisition due diligence and transaction costs $ 919     $ 1,309     $ 3,329     $ 5,419                  
    Integration costs   176       129       1,115       934                  
    Fair value adjustment for contingent consideration   1,460       302       (1,780 )     302                  
    Restructuring charges for severance and other separation costs   88       83       8,097       4,679                  
    Office closure and relocation restructuring charges and impairments   192             1,464       155                  
    Total transaction, integration and restructuring expense $ 2,835     $ 1,823     $ 12,225     $ 11,489                  
                                   
    (d) Goodwill impairment charges represent non-cash, pre-tax, goodwill impairment charges. We experienced declines in our market capitalization as a result of sustained decreases in our stock price, which represented triggering events requiring our management to perform quantitative goodwill impairment tests multiple times in 2024 and during the third quarter of 2023. As a result of the impairment tests conducted in each respective period, we determined that the fair value of our single reporting unit was lower than its carrying value and, accordingly, recorded these impairment charges.
    (e) Other non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and/or unrelated to our core operations. These expenses are comprised of non-core legal and regulatory costs isolated to unique and extraordinary litigation, legal and regulatory matters that are not considered normal and recurring business activity, including sales tax accrual adjustments inclusive of penalties and interest for sales taxes that we may have been required to collect from customers in 2024 and in certain previous years, and other non-recurring legal and regulatory matters. Other non-core items also include consulting fees and severance costs associated with strategic transition initiatives, as well as professional fees related to financing, capital structure changes, and other non-core items.
                                   
     
    Three Months Ended December 31,
      Year Ended December 31,                
    (in thousands)   2024       2023       2024       2023                  
    Non-core legal and regulatory $ (3,438 )   $ (60 )   $ (3,439 )   $ 2,370                  
    Consulting and severance costs for strategic transition initiatives   1     $ 1,977       2,219     $ 1,977                  
    Other non-core expenses   126       (114 )     284       528                  
    Total other non-core items $ (3,311 )   $ 1,803     $ (936 )   $ 4,875                  
                                   

    The MIL Network

  • MIL-OSI: SPS Commerce to Present at the Morgan Stanley Technology, Media & Telecom Conference

    Source: GlobeNewswire (MIL-OSI)

    MINNEAPOLIS, Feb. 27, 2025 (GLOBE NEWSWIRE) — SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced that management will present at the Morgan Stanley Technology, Media & Telecom Conference on Thursday, March 6, 2025, at 8:30 AM P.T.

    A webcast of the presentation will be available on the company’s investor relations website at http://investors.spscommerce.com/events.cfm.

    About SPS Commerce

    SPS Commerce is the world’s leading retail network, connecting trading partners around the globe to optimize supply chain operations for all retail partners. We support data-driven partnerships with innovative cloud technology, customer-obsessed service, and accessible experts so our customers can focus on what they do best. Over 45,000 recurring revenue customers in retail, grocery, distribution, supply, manufacturing, and logistics are using SPS as their retail network. SPS has achieved 96 consecutive quarters of revenue growth and is headquartered in Minneapolis. For additional information, contact SPS at 866-245-8100 or visit www.spscommerce.com.

    SPS COMMERCE, SPS, SPS logo and INFINITE RETAIL POWER are marks of SPS Commerce, Inc. and registered in the U.S. Patent and Trademark Office, along with other SPS marks. Such marks may also be registered or otherwise protected in other countries. 

    Contact:
    Investor Relations
    The Blueshirt Group
    Irmina Blaszczyk & Lisa Laukkanen
    SPSC@blueshirtgroup.com
    415-217-4962

    SPS-F

    The MIL Network

  • MIL-OSI Global: Trump mineral deal with Ukraine offers hope but little in the way of security

    Source: The Conversation – UK – By Jonathan Este, Senior International Affairs Editor, Associate Editor

    If you want to get an idea of how Donald Trump’s mind works (and this can change from day to day, as we know), it’s worth taking a look at his TruthSocial website. As I write, beneath a video pinned to the top of his feed featuring an AI-generated vision of “Trump Gaza” (complete with casinos, shopping malls and a giant golden statue of the man himself), can be found a clue to the frenetic presidential activity of the past month.

    In a post threatening legal action against any writer or publisher whose “Fake books” offends, Trump refers to himself as “a President who is being given credit for having the Best Opening Month of any President in history”. Apparently George Washington is second on that list – and, given that Potus #1 took 33 days to sign the first bill passed under the new US constitution, you could say Potus #47 has left him trailing in his wake.

    Of course #47 appears to face fewer constitutional constraints than his illustrious predecessor.

    Sadly, though, Trump will be unable to include in this list the deal he has reportedly just struck with Volodymyr Zelensky which swaps a share in Ukraine’s mineral wealth for an as yet unspecified security guarantee.

    Precise details of this deal aren’t confirmed. But we’re told that the original US$500 billion (£394 billion) demand has been dropped in return for a share in an investment fund into which Ukraine will contribute 50% of the revenue from its mineral resources. “What better could you have for Ukraine than to be in an economic partnership with the United States?” commented US national security adviser, Mike Waltz.


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


    But for the sake of social media, a deal’s a deal and can be trumpeted as such. Zelensky is heading to Washington to sign the agreement and we shall find out in due course whether or not this will assure Ukraine’s future security. There is still the actual peace deal with Russia to work out, after all.

    Another landmark foreign policy deal brokered by the Trump White House was with the Taliban in 2020 and concerned the future of Afghanistan. And, as Philip A. Berry writes, Zelensky can take little comfort in that.

    Berry, a research fellow at King’s College London, who has extensive experience of working with anti-narcotics agencies in Afghanistan, points to similarities in the way Trump managed negotiations with the Taliban and his deal-making with Ukraine and discussions so far with Russia. The Afghan government was largely cut out of the negotiations, as Trump has threatened to do to Ukraine with regards a peace deal. And like the current situation, Trump’s regular public utterances seriously undermined the talks. Berry concludes:

    Trump’s Taliban deal excluded the US’s ally, conceded too much to an adversary, and was partly motivated by the perception of wasting American dollars in a far-off land. Unfortunately, these hallmarks are all too evident in the president’s stance on Ukraine. Zelensky can only hope that things work out better this time around.




    Read more:
    How Trump the ‘master deal-maker’ failed when it came to negotiating with the Taliban in Afghanistan


    Trust will be absolutely vital if the US and Ukraine are to conclude this agreement and, more critically, if they are to reach terms with Russia that will guarantee the “just peace deal” that Zelensky craves, writes David J. Wilcox of the University of Birmingham. Wilcox points to the relationship of trust built by Mikhail Gorbachev and Ronald Reagan in the 1980s which paved a way for a series of nuclear weapons reduction treaties between the Soviet Union and the US.

    It has just been announced that preparations are being made for “expert-level” talks between the US and Russia, but, as Wilcox points out, “any negotiations to end the war will rest ultimately on those two states and their leaders”. And at present, nothing has been publicly said about whether Putin and Zelensky have even agreed to meet.




    Read more:
    Ukraine war: why negotiations depend on trust


    Meanwhile, what do we know about Ukraine’s mineral wealth and what sort of return Trump can expect for the US? Dafydd Townley, an expert in international security at the University of Portsmouth, stresses that Trump’s recent decision to impose punitive tariffs against Beijing has closed off China as a source of key minerals on which the US has been reliant up until now.

    It’s a clue, writes Townley, as to why the US president seemed very keen on bringing his deal-making facilities to bear on Greenland, which also has large deposits of desirable minerals.

    Interestingly, as Townley points out, Russia has taken control of about 20% of Ukraine’s mineral deposits under the territory it now controls (which America would be open to exploiting according to an offer made by Vladimir Putin’s aides at the recent talks in Saudi Arabia).

    It’s also worth noting that Ukraine’s extraction sector has suffered over the past decade from chronic under-investment, thanks to the ongoing hostilities between Russia and Ukraine. As a result it could be some years before the US gets what it needs from the deal it has reportedly struck with Kyiv.




    Read more:
    Why Trump really wants Ukraine’s minerals — China has put theirs off limits


    Three long years

    Amid all the shuttle diplomacy and wheeler-dealing taking place around them, at the start of the week the embattled Ukrainian population marked the third anniversary of Russia’s full-scale invasion. They were joined by more than a dozen foreign leaders who gathered in Kyiv to express their continuing support.

    As the conflict moves into its fourth year, Stefan Wolff, an international security expert at the University of Birmingham, takes a look at the broader geopolitical implications of the conflict in the era of Trump.

    He sees worrying parallels with the Munich conference of 1938 which sealed Czechoslovakia’s fate. Not, as you might expect, in terms of Trump’s apparent appeasement of Putin – but because, like Munich, talks on the fate of a sovereign nation are being held without that nation being present. Wolff writes:

    There is every indication that Putin is unlikely to stop in or with Ukraine. And it is worth remembering that the second world war started 11 months after Neville Chamberlain thought he had secured “peace in our time”.

    This, of course, is the prospect that has both terrified and stiffened the resolve of Ukraine’s western allies. But Wolff also points to limitations in this analogy, in that he doesn’t believe that Trump is acting out of fear that he is in a weaker position than Putin, as did Neville Chamberlain and the French prime minister Édouard Daladier.

    It’s rather that Trump sees himself as part of a triumvirate of world leaders, along with Putin and China’s president, Xi Jinping, who have the opportunity to carve out spheres of influence and establish a new world order based on the exercise of raw power.




    Read more:
    Ukraine war: Trump is not trying to appease Putin – he has a vision of a new US-China-Russia order


    Richard Youngs, meanwhile, sees the dawning of what he calls a “no world order”. Youngs, an international relations expert at the University of Warwick, sees an era of flux, where the stability of the past 80 years is disintegrating without anything stable or concrete to replace it.

    Several European leaders, including Keir Starmer who is today visiting Trump in Washington, are due to meet this Sunday ahead of a bigger defence summit in Brussels next week, to continue discussions about how to respond to the changing Ukraine situation. Reports suggest a European defence bank or fund that would include the UK may be on the cards.

    Youngs certainly believes that European powers will need to consider practical measures in order to bind themselves into more cohesive relationship and ensure their continuing autonomy. One of those will be in boosting their defence capabilities – something that is now gathering pace in the face of US pressure.

    But more radical thinking will be needed, writes Youngs, who has coined the term “geoliberalism” as a way of visualising the sort of thinking about the values and certainties that can bind Europe together in the face of global turbulence.




    Read more:
    No world order: Europe needs more radical thinking for the Trump era


    Alex Titov, meanwhile, believes that for all the talk of “deals” to end the violence, both sides have their reasons for wanting to continue, given that their stated positions remain diametrically opposed and irreconcilable.

    Russia’s battlefield progress, while steady, is slow and there’s no real prospect of it forcing a capitulation from Kyiv in the next 12 months. But – particularly with the radically different US position under Donald Trump, neither is there any chance of Russia being forced off the territory it has captured. Ominously, Titov concludes, this could mean that “the bloodiest battles of the war are yet to come”.




    Read more:
    Ukraine war three years on: the bloodiest battles may be still to come


    A new way of governing

    After a whirlwind first month, Trump held his first cabinet meeting this week, with a special appearance from his right-hand man Elon Musk, who reportedly got to speak more than anyone else. Musk, of course, has been responsible for much of the maelstrom of activity that has caused so much disquiet and is providing a lot of work for lawyers who are pushing back against many of the new adminstration’s measures on the grounds they are unconstitutional.

    Musk, Trump and his vice-president J.D. Vance have, in turn, pushed back against judges who have issued injunctions to either halt or delay some of their measures. Musk, in a fit of pique this week when three judges halted three of the administration’s policies, complained bitterly “What is the point of having democratic elections if unelected activist ‘judges’ can override the clear will of the people? Well, that’s no democracy at all!”

    Stephen Lovell, professor of modern history at King’s College London, has been looking at the way that Trump and his team are attempting to bend the US constitution to their will, comparing their approach to that of Vladimir Putin. Putin, as we know, never saw a constitutional loophole he didn’t want to wriggle through or otherwise obliterate.




    Read more:
    Trump, Putin and the authoritarian take on constitutionalism



    World Affairs Briefing from The Conversation UK is available as a weekly email newsletter. Click here to get updates directly in your inbox.


    ref. Trump mineral deal with Ukraine offers hope but little in the way of security – https://theconversation.com/trump-mineral-deal-with-ukraine-offers-hope-but-little-in-the-way-of-security-250962

    MIL OSI – Global Reports

  • MIL-OSI Security: Fairbanks Man Sentenced to Over 14 Years for Possessing Kilograms of Illegal Drugs with Intent to Distribute

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

    FAIRBANKS, Alaska – A Fairbanks man was sentenced today to over 14 years in prison for possessing with intent to sell over 12 kilograms of controlled substances.

    According to court documents, beginning in August 2023, law enforcement received information that Kevin Shank, 46, was selling controlled substances from his residence in Fairbanks. In February 2024, law enforcement observed an individual purchase 1.1 grams of heroin and 21 blue fentanyl pills from Shank.

    On March 19, 2024, law enforcement executed a search warrant on Shank’s residence, and discovered and seized over 6.1 kilograms of methamphetamine, over 2.4 kilograms of fentanyl tablets, nearly one kilogram of fentanyl powder, nearly one kilogram of cocaine, over 1.7 kilograms of marijuana, and smaller amounts of heroin, suboxone and Xanax. They also seized seven firearms, two homemade suppressors and various ammunition, as well as over $303,000 in cash and a truck purchased with drug trafficking proceeds.

    Court documents explain that most of the controlled substances were found in a secret compartment in a small side room of the residence, while several firearms were staged at entrances to the residence and the side room.

    On Nov. 26, 2024, Shank pleaded guilty to one count of possession with intent to distribute. The Court also ordered Shank to serve five years on supervised release and pay a $25,000 fine as part of his sentence.

    “Mr. Shank possessed roughly 22 pounds of controlled substances, including seven pounds of illicit fentanyl, intended for distribution to profit at the expense of Alaskans safety,” said First Assistant U.S. Attorney Kathryn R. Vogel for the District of Alaska. “This case marks the largest drug seizure in Fairbanks history, and we thank our law enforcement partners for their efforts. This sentence underscores our strong commitment to dismantling drug trafficking supplies and to holding those accountable who endanger our communities by trafficking illegal, dangerous drugs.”

    “Drug traffickers like Mr. Shank, who profit from the pain they cause selling poison to our neighbors, pose an especially grave threat,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The fentanyl alone seized in this case amounted to more than 85,000 potentially lethal doses. Make no mistake: If you deal drugs in Alaska, DEA and our partners will hold you accountable.”

    The Drug Enforcement Administration Seattle Field Division and Fairbanks Resident Office, with assistance from the FBI Anchorage Field Office, Alaska State Troopers, Fairbanks Police Department, North Pole Police Department, North Slope Borough Police Department and Fairbanks Airport Police Department as part of the Fairbanks Area Narcotics Team (FANT), investigated the case.

    Assistant U.S. Attorney Carly Vosacek prosecuted the case.

    ###

    MIL Security OSI

  • MIL-OSI USA: Warner, Thune, Malliotakis & Peters Introduce Legislation to Address Student Debt Crisis

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner

    WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and John Thune (R-SD), alongside U.S. Reps. Nicole Malliotakis (R-NY-11) and Scott Peters (D-CA-50), introduced the Employer Participation in Repayment Act – bipartisan legislation to help Americans tackle their student loan debt by making permanent a provision that allows employers to contribute up to $5,250 tax-free to their employees’ student loans.

    In 2020, Sens. Warner and Thune along with Rep. Peters negotiated the inclusion of a provision in the CARES Act that allowed these contributions temporarily. Later that year, as part of the government spending package, they secured an extension allowing this benefit until January 1, 2026. By making this tax benefit permanent, today’s legislation would provide employees with much-needed relief and employers with a unique and permanent tool to attract and retain talented employees.

    “As the first in my family to graduate from college, I wouldn’t have been able to afford my tuition without the help of student loans,” said Sen. Warner. “Unfortunately as the cost of higher education continues to skyrocket, so has the rate of Americans who turn to student loans to pay for college. Today too many Americans are saddled with tough-to-manage student loan debt, with no end in sight. That’s why I’ve teamed up with Sen. Thune to create an innovative, bipartisan approach to help ease the burden of student loans. By making employer student loan repayments tax-exempt, employers will have a tool to recruit and retain a talented workforce while also helping working Americans manage their financial future.”

    “Incentivizing employers to help repay their employees’ student loans was a common-sense step Congress took to address the high levels of student debt that borrowers face,” said Sen. Thune. “This bill would permanently equip employers with this unique tool to help attract and retain talented employees while protecting American taxpayers from costly burdens. This is a win-win for graduates and their employers, and I hope it will once again garner strong, bipartisan support.”

    “Over the past 20 years, the cost to attend college has risen 45 percent, forcing students to choose between pursuing higher education and taking on tens of thousands of dollars in burdensome student loan debt,” said Rep. Malliotakis. “Our bipartisan legislation enables employers to contribute up to $5,250 per year, tax-free, toward their employees’ student loans—helping those entering the workforce pay down debt faster and build a stronger financial future. This tax incentive will continue to strengthen our workforce, increase our nation’s competitiveness, and provide much-needed economic relief to millions of Americans.”

    “I relied on student loans to get through college when the cost of higher education was much lower than it is today. Now, the collective debt among Americans is $1.7 trillion, which limits our economic growth and the economic prospects of young adults,” said Rep. Peters. “Over the last five years, this program has been a huge success — employers have helped pay off thousands of employees’ loans and it gave employers a tool to compete for the best talent. This public-private collaboration has proven itself as a cost-effective solution to the student debt crisis and it is imperative that we make it permanent.” 

    Americans owe a combined $1.77 trillion dollars in student loan debt, according to the most recent quarterly report from the Federal Reserve. This debt is a significant financial burden that not only influences the way the American workforce saves and spends, but also has a stifling effect on the economy. This legislation would update an existing federal program so that it works better for employees living with the reality of burdensome student loan debt.

    The legislation has support from numerous educational organizations and business groups.

    “The National Association of Independent Colleges and Universities (NAICU) is pleased to support bipartisan legislation that would make permanent the expansion of IRC Sec. 127. This expansion to allow student loan repayment assistance should absolutely be a permanent benefit and not expire next year as currently scheduled.  This assistance helps working students, employers, and ultimately the U.S. economy. Section 127 benefits play a critical role in maintaining U.S. competitiveness and preventing the accumulation of student debt by enabling employers to fund the training, development and education of their employees, without imposing tax burdens on those employees for the education they receive.  Employees use these benefits to pursue their educational and career goals and use amounts provided by their employer to either help pay for the cost of tuition or repay student loans,” said Karin Johns, Director of Tax Policy, National Association of Independent Colleges and Universities.

    “The bipartisan and bicameral Employer Participation in Repayment Act will reduce borrowers’ student loan burdens and encourage successful repayment. In turn, it gives employers a permanent tool with which to attract a stable workforce. EFC is proud to endorse this legislation, and we look forward to collaborating with you to advance public policies that appropriately balance the interests of student loan borrowers, employers, and taxpayers,” said Gail daMota, President, Education Finance Council.

    “The U.S. Chamber supports the Employer Participation in Repayment Act because it allows employers voluntarily to provide a valued employee benefit that helps their employees’ financial well-being,” said Chantel Sheaks, Vice President, Retirement Policy, U.S. Chamber of Commerce

    “Candidly has facilitated more than $100M in tax-free Student Loan Employer Contributions to help employees pay down their debt faster, as a workplace benefit, resulting in a whopping 67% reduction in turnover across participating workers. Permanency is crucial to sustaining and scaling this highly efficacious new category of benefit into a new normal,” said Laurel Taylor, CEO, Candidly.

    “Fidelity Investments commends the bipartisan re-introduction of the Employer Participation in Repayment Act. Permanently extending this important incentive is critical to the American workforce’s financial wellness. As a market leader for student debt workplace benefits since 2016, Fidelity has enabled hundreds of employers across a wide range of industries to seamlessly contribute to and ease the student debt burden for their employees. To date, these employers have helped more than 100k employees save more than $500mn and an average of 3-4 years in payments. The growth and popularity of these benefits have accelerated since the introduction of this provision as part of the 2020 CARES Act, and we look forward to working with Congress to enact this legislation permanently into law,” said Jesse Moore, Senior Vice President, Head of Student Debt at Fidelity Investments.

    “We commend Senators Thune and Warner, along with Representatives Malliotakis and Peters, for their leadership in introducing the Employer Participation in Repayment Act. Making the student loan repayment expansion permanent is a critical step toward easing the financial burden on millions of Americans while empowering businesses to attract and retain top talent. This bipartisan, bicameral effort underscores a shared commitment to workforce development, economic growth, and financial well-being for employees nationwide. We urge Congress to pass this legislation and ensure long-term support for student loan repayment benefits,” said Chatrane Birbal, Vice President of Policy and Government Relations at the HR Policy Association. 

    “SHRM strongly supports the reintroduction of the Employer Participation in Repayment Act, a bipartisan bill that would permanently allow employers to assist employees in repaying their student loans. At SHRM, we have long championed policies that empower employers to provide education assistance programs that align with the evolving needs of the workforce. This legislation is key to strengthening the education-to-employment pipeline—ensuring that individuals can pursue and complete their education without being burdened by overwhelming debt, while also helping employers build a skilled and competitive workforce. This legislation provides a commonsense solution that would benefit workers, workplaces, and the economy,” said Emily M. Dickens, Chief of Staff and Head of Government Affairs at the Society for Human Resource Management.

    “We commend the introduction of bipartisan legislation to permanently extend the student loan repayment benefit under Section 127. Supporting efforts by employers to offer education or debt relief to their employees is both economically and fiscally responsible. This bill is a crucial step towards modernizing Section 127 of the tax code, addressing the evolving needs of employees, and ensuring our workforce remains competitive. InStride is dedicated to reducing the burden of student debt and expanding economic opportunities through innovative employer-sponsored education programs. This legislative effort aligns with our mission and helps create a more financially resilient workforce,” said Craig Maloney, CEO, InStride.

    “The National Association of REALTORS ® (NAR) has long supported efforts to ease the burden of student loan debt. The Employer Participation in Repayment Act is a useful tool in easing the weight of student debt. NAR applauds the leadership from Representatives Peters and Malliotakis and Senators Warner and Thune in making this change permanent. This legislation creates a win-win for both employers in search of attracting and maintaining talented workers and employees who will receive relief on their debt, enabling them to save money for important life decisions like purchasing a home,” said National Association of Realtors® President Kevin Sears.

    “Extending the tax exclusion for employer-provided student loan repayment assistance is crucial for today’s U.S. workforce and is 100% aligned with employer perspectives on these benefits,” said Scott Thompson, CEO of Tuition.io. “As the cost of higher education continues to skyrocket, this benefit enables companies to foster a more educated and skilled workforce, while helping their employees cover basic living expenses, a challenge for so many people today. Since Tuition.io started administering contributions in 2016, employers on our platform have helped pay down student loan debt for hundreds of thousands of employees in key sectors like healthcare, manufacturing, and technology. We at Tuition.io strongly support making these benefits under Section 127 permanent, as their removal would be a significant setback for both corporations and their employees.”

    “The introduction of this bill is a huge step in the right direction and, when passed, will be a major win for companies, employees, and society at large. Tax-free employer contributions to student loans is a great way to help employees pay back student loans while providing a unique incentive for employees to align with company priorities. As the cost of education has and will likely continue to rise, this benefit will help alleviate the financial stress employees have incurred in order to gain employment. Permanently including employer student loan contributions under tax-free educational assistance will help pave the way for more employers to play a massive role in solving the student debt crisis,” said Mick MackLaverty, CEO of Highway Benefits.

    “We are proud to support this initiative and grateful to Congressmember Peters for his dedication to San Diego’s small businesses,” said Jessica Anderson, Interim President and CEO of the San Diego Regional Chamber of Commerce. “The Employer Participation in Repayment Act of 2025 will expand the benefits employers can offer by assisting with student debt repayment, in turn helping small businesses attract and retain talent in a competitive workforce. 

    Full text of the legislation can be found here. A summary of the legislation can be found here.

     

    MIL OSI USA News

  • MIL-OSI Submissions: Global Bodies – IPU to hold a global conference of women parliamentarians in Mexico

    Source: Inter-Parliamentary Union (IPU)

    Thursday, 27 February, Mexico City, Mexico – The Inter-Parliamentary Union (IPU) is pleased to announce the Global Conference of Women Parliamentarians From Mexico to the World: Let’s mobilize for gender parity! which will be held in Mexico City from 13 to 16 March 2025. The Conference is being jointly organized by the IPU and the Senate of Mexico.

    The Conference aims to identify successful measures and strategies for advancing gender parity in parliaments, share good practices, and inspire action towards achieving equal participation and power for women in political decision-making.

    Mexico is one of only six countries in the world to have achieved gender equality in parliament. This is largely due to a 2014 constitutional amendment requiring political parties to ensure gender parity in the nomination of candidates.

    In June 2024, Mexico made history by electing its first female President, Ms. Claudia Sheinbaum Pardo, who will open the Conference.

    IPU leadership will be represented by Dr. Tulia Ackson, President of the IPU, Ms. Cynthia López Castro, Senator of Mexico and President of the IPU Bureau of Women Parliamentarians, and Mr. Martin Chungong, Secretary General of the IPU.

    The Conference will host a series of panel discussions and open debates on critical topics such as strategies to engage men in advancing gender equality, breaking the ceilings for women’s leadership and achieving zero tolerance for violence against women in politics.

    Registration

    Parliaments are invited to send a delegation of up to four members of parliament, including one male MP and at least one young woman MP (under 40) to attend the Conference.

    Register before 1 March: https://docs.google.com/forms/d/e/1FAIpQLSeG66ZLLHdeBJUezwTutOJbfLzZf8wYZUt-roQ7XxYn0FYIig/viewform?pli=1

    MIL OSI – Submitted News

  • MIL-OSI: Quanta 100x’s Accountants with AI-Powered Innovation; Secures $4.7M in Funding Led by Accel to Alleviate Pain of Legacy Solutions

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, Feb. 27, 2025 (GLOBE NEWSWIRE) — Quanta, the next-generation accounting company powered by AI, today announced the general availability of its platform featuring an intuitive self-serve onboarding process that accomplishes in minutes what typically takes weeks with other solutions. Quanta also raised $4.7 million in seed funding led by Accel with participation from basecase, Comma Capital, Designer Fund, and Operator Collective, as well as prominent angel investors including Elad Gil. This round propels Quanta’s vision of eliminating all non-creative accounting work in order to empower businesses with financial clarity in real-time.

    Software companies are on the leading edge of innovation. However, their accounting services have not kept pace. Many organizations face prolonged accounting close cycles, manual workflows, and delayed access to critical financial metrics — which often leaves business leaders to rely on stale or incomplete data that hinders timely decision-making. And other emerging accounting tools over recent years have not been able to utilize AI for automation that allows their business to successfully scale and serve customers’ need for real-time insights.

    “During my time as an engineer at Affirm, I built multiple financial systems of record — including its in-house accounting system — as the company scaled from 100 to 2,500 employees. I saw firsthand how far behind accounting software lagged,” said Helen Hastings, founder and CEO of Quanta. “The manual work required to produce data has resulted in a once-per-month reporting cadence that holds businesses back. Quanta’s vision is to automate all repetitive aspects of accounting, so finance teams need only focus on creative work: defining the business model, selecting the appropriate policies, and asking the right questions that will push their business forward. Quanta isn’t just an accounting firm; it’s an exponential upgrade to organizations’ financial operations.”

    Quanta developed its own proprietary general ledger and granular subledgers, which, when integrated with its AI-powered engine, automates data population, validation, and interpretation. With this approach, Quanta alleviates the pain of traditional solutions and “100x’s” its accountants — delivering the fastest, most accurate, and easiest to work with service on the market.

    “The accounting industry is at a critical juncture where new solutions are required to meet modern demands. AI breakthroughs and the consolidation of financial data in modern cloud services create a unique opportunity for innovation, and Quanta is perfectly positioned to harness it,” said Amit Kumar, partner at Accel. “Helen and the Quanta team are building a system that represents a radical departure from the status quo, delivering a new model of real-time delivery and unparalleled accuracy. I’m excited to join them on their journey to raise the bar for what modern businesses should expect from their accounting services.”

    Quanta delivers:

    • Speed and real-time insights: Powered by proprietary accounting software, Quanta updates in real-time through integrations with customers’ banking systems and existing stack of financial tools including Brex, Gusto, Mercury, Ramp, Stripe, and more. This enables seamless onboarding and unmatched speed compared to competitors relying on manual processes and outsourced bookkeepers.
    • Unparalleled accuracy: Quanta’s automated validation system ensures all accounting entries comply with each customer’s set policies, and is supported by 40+ daily checks and reconciliations to ensure balances match with source financial tools.
    • Advanced revenue and accrual functionality: Native tools, including a Stripe integration and contract ingestion system that automates revenue recognition across multiple sources in addition to an accrual system that automatically builds schedules for prepaids and fixed assets. This provides business leaders with greater accuracy, transparency, and efficiency in financial reporting by providing more granular and contextual accounting while reducing manual effort and human error.
    • Highest quality human service: Each customer is paired with a dedicated financial expert via Slack, offering high-level strategic and creative guidance to drive key business decisions — only made possible due to the automation of routine bookkeeping tasks.

    “Quanta is the fastest outsourced accounting service. The efficiency gains since partnering with Quanta have been remarkable. They’ve helped us reduce our closing time by 85%, giving us visibility into our business faster,” said Chris Burgner, Head of Finance & Analytics at Equals. “Now, any time we need to see financial performance, we trust Quanta’s platform reflects the most up-to-date, accurate information. Even more, it is a relief to have them as a thought partner to help lay the right foundation for the future in the ever-changing world of accounting requirements.”

    Supporting Resources

    About Quanta
    Quanta is the AI-powered accounting service for software businesses who want to get their finances right, without delay. Through native integrations with leading financial tools and banking providers, Quanta provides unparalleled access to key business metrics in real-time — giving customers an accurate view of their finances and empowering them with the knowledge they need to make critical business decisions with lightning speed. Quanta is privately held, with funding from Accel, basecase, Comma Capital, Designer Fund, Operator Collective, and more. For more information, please visit https://www.usequanta.com/.

    The MIL Network

  • MIL-OSI United Nations: Diverse disaster risks in the Arab States have led to inspiring solutions

    Source: UNISDR Disaster Risk Reduction

    SRSG Kamal Kishore visited Kuwait in February 2025 for the Arab Regional Platform for Disaster Risk Reduction. In this article he reflects on the region’s challenges and successes.
     

    The Arab States region is known for its extremes: some of the world’s harshest conditions, but also the famous hospitality of its inhabitants. It is home to some of the wealthiest nations, but also many amongst the least-developed. It faces serious disaster risks – especially slow onset disasters like drought and desertification – but is also a source of innovative solutions.

    I spent the past week in Kuwait where disaster risk management policy makers and practitioners from 22 countries from the Arab States region came together for the 6th Arab Regional Platform for Disaster Risk Reduction. This multi-stakeholder forum was called to take stock of progress against the Sendai Framework for Disaster Risk Reduction and devise ways to accelerate implementation over the next five years. Much of the success can be attributed to the generosity and professionalism of the host country, the State of Kuwait. The excellent organization of the Platform was the result of a tight partnership between the Kuwait Fire Force, the League of Arab States, and UNDRR’s Regional Office for Arab States, lining up a programme that covered a wide array of important topics for the region.

    During the five intense days of deliberations, I learned many things. In a region that is beset by many challenges, disaster risk reduction issues do not always spring to mind as the most urgent. However the region has seen some of the worst disasters over the last few years – including floods in Libya (2023), Oman (2024) and UAE (2024); earthquakes in Syria and Morocco (2023); and a string of severe droughts across much of the region.

    To say that the Arab States region is highly diverse is to state the obvious. However, this diversity goes beyond the nature of disaster risk (varying hazards, exposure, and socio-economic vulnerability) to the diverse institutional approaches adopted by countries of the region to manage disaster risk. The United Arab Emirates, in particular, have shown great leadership in the region, as champions of urban resilience and hosts of the COP28 UN Climate Change Conference.

    During the Regional Platform I had so many enlightening conversations – formal and informal – and participated in numerous events and discussions. Considering all that I learned, I have the following reflections:

    The next leap

    Most of the countries in the region have established strong national level institutions for disaster risk management (these are variously named Disaster Management Agencies, or Emergency, Crisis and Disaster Management Authorities, and so on) and many have developed multi-year strategies for disaster risk management (for example, Morocco has a strategy for 2020 to 2030).

    The next leap would be to pursue more integrative work with all development sectors. Interesting initiatives are already emanating from the region. For example: UNDRR’s Private Sector Alliance for Disaster Resilient Societies (ARISE) has helped develop and apply a resilience tool to aid the real estate sector in Dubai; and Libya and Iraq are modernizing the management of their irrigation dams.

    Play closer attention to compounding risks

    For example, sand and dust storms are getting more complex – in a region that has rapidly urbanized, not only are the impacts of these hazards evolving (such as the impacts on power transmission networks and renewable energy production), but these hazards are also combining with other threats such as soil and air pollution to create even bigger impacts.

    ABCD (Align Biodiversity, Climate Change and Desertification) of Comprehensive Risk Management 

    This is a region where on-the-ground integration of the three Rio Conventions – Biodiversity, Climate Change, and Desertification – really comes alive. However, taking such a comprehensive approach requires that we align all of these interests across regional, national and sub-national institutions.

    Blend tradition and innovation

    The region is home to centuries of traditional wisdom to deal with extreme conditions and natural hazards – for example, this can be seen in how traditional housing and clothing have evolved to combat extreme heat. Traditional systems of finance such as Islamic Finance (and the notion of Zakat) provide a solid foundation for society’s financial resilience, particularly for the poorest. At the same time, many countries in the region are at the forefront of cutting-edge innovation – from advances in water management to the application of AI.

    We can draw on both traditional wisdom and modern innovation to achieve disaster risk reduction objectives.


    The energy and enthusiasm I witnessed during this past week gives me a sense of optimism that if we stay the course, this region can not only demonstrate on-the-ground disaster risk reduction results, but can also inspire action across the world.

    The Global Platform for Disaster Risk Reduction, in June this year, will give an opportunity for all of the regions to share the outcomes of the Regional Platforms, and I look forward to the contributions arising from the Arab States Regional Platform.

    MIL OSI United Nations News

  • MIL-OSI Europe: Written question – Emergence and monitoring of DeepSeek – E-000712/2025

    Source: European Parliament

    Question for written answer  E-000712/2025
    to the Commission
    Rule 144
    Nadine Morano (PPE)

    DeepSeek, the new artificial intelligence platform developed by a Chinese start-up, has been in the headlines for several weeks.

    It appears to have been programmed to meet censorship criteria set by the Chinese administration, but it also seems to send its users’ data to China Mobile, a company that has close ties with the Chinese army and is subject to US sanctions. Italy has even banned DeepSeek.

    Against this backdrop:

    How will the Commission keep a watching brief on DeepSeek and ensure that EU citizens can use it free of risk?

    Submitted: 17.2.2025

    Last updated: 27 February 2025

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on the European Semester for economic policy coordination: employment and social priorities for 2025 – A10-0023/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on the European Semester for economic policy coordination: employment and social priorities for 2025

    (2024/2084(INI))

    The European Parliament,

     having regard to Article 3 of the Treaty on European Union (TEU),

      having regard to Articles 9, 121, 148 and 149 of the Treaty on the Functioning of the European Union (TFEU),

     having regard to the European Pillar of Social Rights (EPSR) proclaimed and signed by the Council, Parliament and the Commission on 17 November 2017,

     having regard to the Commission communication of 4 March 2021 entitled ‘The European Pillar of Social Rights Action Plan’ (COM(2021)0102) and its proposed 2030 headline targets on employment, skills and poverty reduction,

     having regard to the Commission communication of 17 December 2024 entitled ‘2025 European Semester – Autumn package’ (COM(2024)0700),

     having regard to the Commission communication of 26 November 2024 entitled ‘2025 European Semester: bringing the new economic governance framework to life’ (COM(2024)0705),

      having regard to the Commission proposal of 17 December 2024 for a joint employment report from the Commission and the Council (COM(2024)0701),

     having regard to the Commission recommendation of 17 December 2024 for a Council recommendation on the economic policy of the euro area (COM(2024)0704),

      having regard to the Commission report of 17 December 2024 entitled ‘Alert Mechanism Report 2025’ (COM(2024)0702),

      having regard to the Commission staff working document of 26 November 2024 entitled ‘Fiscal statistical tables providing relevant background data for the assessment of the 2025 draft budgetary plans’ (SWD(2024)0950),

     having regard to the Commission staff working document of 17 December 2024 on the changes in the scoreboard the Macroeconomic Imbalance Procedure Scoreboard in the context of the regular review process (SWD(2024)0702),

     having regard to its resolution of 22 October 2024 on the Council position on Draft amending budget No 4/2024 of the European Union for the financial year 2024 – update of revenue (own resources) and adjustments to some decentralised agencies[1],

     having regard to Mario Draghi’s report of 9 September 2024 entitled ‘The future of European competitiveness’,

     having regard to Enrico Letta’s report of April 2024 on the future of the single market[2],

     having regard to the La Hulpe Declaration on the Future of the European Pillar of Social Rights signed by Parliament, the Commission, the European Economic and Social Committee and the Council on 16 April 2024,

     having regard to the Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023 establishing a Social Climate Fund and amending Regulation (EU) 2021/1060[3],

     having regard to the Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97[4], and in particular to Articles 3, 4, 13 and 27 thereof,

     having regard to the Commission communication of 17 January 2023 entitled ‘Harnessing talent in Europe’s regions’ (COM(2023)0032),

     having regard to the Commission communication of 20 March 2023 entitled ‘Labour and skills shortages in the EU: an action plan’ (COM(2024)0131),

     having regard to the 2020 European Skills Agenda,

     having regard to the Commission communication of 7 September 2022 on the European care strategy (COM(2022)0440),

     having regard to the Council Recommendation on access to affordable, high-quality long-term care[5],

     having regard to the EU Social Scoreboard and its headline and secondary indicators,

     having regard to the Commission communication of 3 March 2021 entitled ‘Union of Equality: Strategy for the Rights of Persons with Disabilities 2021-2030’ (COM(2021)0101),

     having regard to the Commission report of 19 September 2024 entitled ‘Employment and Social Developments in Europe (ESDE): upward social convergence in the EU and the role of social investment’,

     having regard to the Council Decision on Employment Guidelines, adopted by the Employment, Social Policy, Health and Consumer Affairs Council on 2 December 2024, which establishes employment and social priorities aligned with the principles of the EPSR,

     having regard to the Tripartite Declaration for a thriving European Social Dialogue and to the forthcoming pact on social dialogue,

     having regard to Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union[6] (Minimum Wage Directive),

     having regard to the European Social Charter, referred to in the preamble of the EPSR,

     having regard to the EU Roma strategic framework for equality, inclusion and participation for 2020-2030,

     having regard to the United Nations Sustainable Development Goals (SDGs),

     having regard to the Gender Equality Strategy 2020-2025,

     having regard to the EU Anti-Racism Action Plan 2020-2025,

     having regard to the LGBTIQ Equality Strategy 2020-2025,

     having regard to Rule 55 of its Rules of Procedure,

     having regard to the report of the Committee on Employment and Social Affairs (A10-0023/2025),

    A. whereas progress has been made towards achieving the EU’s employment targets, namely that at least 78 % of people aged 20 to 64 should be in employment by 2030, despite the uncertainty created by Russia’s war of aggression against Ukraine and the impact of high inflation; whereas, according to the Commission’s 2025 autumn economic forecast, EU employment has reached a rate of 75.3 %; whereas growth in employment in the EU remained robust in 2023; whereas in two thirds of the Member States, employment growth in 2023 was on track to reach the national 2030 target; whereas significant challenges nevertheless persist, such as high unemployment rates in some Member States, particularly among young people and persons with disabilities, as do significant inequalities between sectors and regions, which can negatively affect social cohesion and the well-being of European citizens in the long term;

    B. whereas the European Semester combines various different instruments in an integrated framework for multilateral coordination and surveillance of economic, employment and social policies within the EU and it must become a key tool for fostering upward social convergence; whereas the Social Convergence Framework is a key tool for assessing social challenges and upward convergence within the European Semester and for monitoring social disparities across Member States, while addressing the challenges identified in the Joint Employment Report (JER);

    C. whereas the Union has adopted the 2030 target of reducing the number of people at risk of poverty and social exclusion by at least 15 million compared to 2019, including at least 5 million children; whereas in nearly half of the Member States the trend is heading in the opposite direction; whereas one child in four in the European Union is still at risk of poverty and social exclusion; and whereas the current trend will not make it possible to meet the 2030 target; whereas public spending on children and youth should not be seen only as social expenditure but as an investment in the future; whereas the promotion of strong, sustainable and inclusive economic growth can succeed only if the next generation can develop their full educational potential in order to be prepared for the changing labour market, whereas to meet the 2030 Barcelona targets for early childhood education and care, the EU should invest an additional EUR 11 billion per year[7];

    D. whereas despite a minimal reduction in the number of people at risk of poverty or social exclusion in the EU in 2023, approximately one in five still faces this challenge, with notable disparities for children, young and older people, persons with disabilities, LGTBI, non-EU born individuals, and Roma communities;

    E. whereas significant disparities are observed among children from ethnic or migrant backgrounds and children with disabilities; whereas 83 % of Roma children live in households at risk of poverty; whereas the EU and national resources currently deployed are in no way sufficient for addressing the challenge of child poverty in the EU and, therefore, a dedicated funding instrument for the European Child Guarantee as well as synergies with other European and national funds are of the utmost importance in both the current multiannual financial framework (MFF) and the next one;

    F. whereas the EPSR must be the compass guiding EU social and economic policies, whereas the Commission should monitor progress on the implementation of the EPSR using the Social Scoreboard and the Social Convergence Framework;

    G. whereas poor quality jobs among the self-employed are disproportionately widespread while the rate of self-employment is declining, including among young people;

    H. whereas there are still 1.4 million people residing in institutions in the EU; whereas residents of institutions are isolated from the broader community and do not have sufficient control over their lives and the decisions that affect them; whereas despite the fact that the European Union has long been committed to the process of deinstitutionalisation, efforts are still needed at both European and national level to enable vulnerable groups to live independently in a community environment;

    I. whereas demographic challenges, including an ageing population, low birth rates and rural depopulation, with young people in particular moving to urban areas, profoundly affect the economic vitality and attractiveness of EU regions, the labour markets, and consequently, the sustainability of welfare systems, and further aggravate the regional disparities in the EU, and hence represent a structural challenge for the EU economy; and whereas, as underlined in the Draghi report, sustainable growth and competitiveness in Europe depend to a large extent on adapting education and training systems to evolving skills needs, prioritising adult learning and vocational education and training, and the inclusion of the active population in the labour market and on a robust welfare system;

    J. whereas, as highlighted in the Draghi report, migrant workers have been an important factor in reducing labour shortages and are more likely to work in occupations with persistent shortages than workers born in the EU;

    K. whereas 70 % of workers in Europe are in good-quality jobs, 30 % are in high-strain jobs where demands are more numerous than resources available to balance them leading to overall poor job quality; whereas in many occupations suffering from persistent labour shortages the share of low-quality jobs is higher than 30 %;

    L. whereas the Letta report states that there is a decline in the birth rate, noting the importance of creating a framework to support all families as part of a strategy of inclusive growth in line with the EPSR; whereas the report notes that the free movement of people remains the least developed of the four freedoms and argues for reducing barriers to intra-EU occupational mobility while addressing the social, economic and political challenges facing the sending Member States and their most disadvantaged regions, as well as safeguarding the right to stay; whereas there is a need to promote family-friendly and work-life balance policies, ensuring accessible and professional care systems as well as public quality education, family-related leave and flexible working arrangements in line with the European Care Strategy;

    M. whereas inflation has increased the economic burden on households, having a particularly negative impact on groups in vulnerable situations, such as single parents, large families, older people or persons with disabilities, whereas housing costs and energy poverty remain major problems; whereas housing is becoming unaffordable for those who live in households where housing costs account for 40 % of total disposable income; whereas investment in social services, housing supply – including social housing – and policies that facilitate the accessibility and affordability of housing play a key role in reducing poverty among vulnerable households;

    N. whereas the EU’s micro, small and medium-sized enterprises face particular challenges such as staying competitive against third-country players, maintaining production levels despite rising energy costs and finding the necessary skills for the green and digital transitions; whereas they need financial and technical support to comply with regulatory requirements and take advantage of the opportunities offered by the twin transitions;

    O. whereas labour and skills shortages remain a problem at all levels, and are reported by companies of all sizes and sectors; whereas these shortages are exacerbated by a lack of candidates to fill critical positions in key sectors such as education, healthcare, transport, science, technology, engineering and construction, especially in areas affected by depopulation; whereas these shortages can result from a number of factors, such as difficult working conditions, unattractive salaries, demand for new skill sets and a shortage of relevant training, the lack of public services, barriers of access to medium and higher education and lack of recognition of skills and education;

    P. whereas the Union has adopted the target that at least 60 % of adults should participate in training every year by 2030; whereas the Member States have committed themselves to national targets in order to achieve this headline goal and whereas the majority of Member States lost ground in the pursuit of these national targets; whereas further efforts are needed to ensure the provision of, and access to, quality training policies that promote lifelong learning; whereas upskilling, reskilling and training programmes must be available for all workers, including those with disabilities, and should also be adapted to workers’ needs and capabilities;

    Q. whereas in 2022, the average Programme for International Student Assessment (PISA) score across the OECD on the measures of basic skills (reading, mathematics and science) of 15-year-olds dropped by 10 points compared to the last wave in 2018; whereas underachievement is prevalent among disadvantaged learners, demonstrating a widening of educational inequalities; whereas this worrying deterioration calls for reforms and investments in education and training;

    R. whereas the EU’s capacity to deal with future shocks, crises and ‘polycrises’ while navigating the demographic, digital and green transitions, will depend greatly on the conditions under which critical workers will be able to perform their work; whereas addressing the shortages and retaining all types of talent requires decent working conditions, access to social protection systems, and opportunities for skills development tailored to the needs; and whereas addressing skills shortages is crucial to achieving the digital and green transitions, ensuring inclusive and sustainable growth and boosting the EU’s competitiveness;

    S. whereas it is essential to promote mobility within the EU and consider attracting skilled workers from third countries, while ensuring respect for and enforcement of labour and social rights and channelling third-country nationals entering the EU through legal migration pathways towards occupations experiencing shortages, supported by an effective integration policy, in full complementarity with harnessing talents from within the Union;

    T. whereas gender pay gaps remain considerable in most EU Member States and whereas care responsibilities are an important factor that continue to constrain women into part-time employment or lead to their exclusion from the labour market, resulting in a wider gender employment gap;

    U. whereas the JER highlights the right to disconnect, in particular in the context of telework, acknowledging the critical role of this right in ensuring a work-life balance in a context of increasing digitalisation and remote working;

    V. whereas challenges to several sectors, such as automotive manufacturing and energy intensive industries, became evident in 2024 and a number of companies announced large-scale restructuring;

    W. whereas there are disparities in the coverage of social services, including long-term care, child protection, domestic violence support, and homelessness aid, that need to be addressed through the European Semester;

    X. whereas there is currently no regular EU-wide collection of data on social services investment and coverage; whereas collecting such data is key for an evidence-based analysis of national social policies in the European Semester analysis; whereas this should be addressed through jointly agreed criteria and data collection standards for social services investment and coverage in the Member States; whereas the European Social Network’s Social Services Index is an example of how such data collection can contribute to the European Semester analysis;

    Y. whereas the crisis in generational renewal, demographic changes, and lack of sufficient investment in public services have led to an increased risk of poverty and social exclusion, particularly affecting children and older people, single-parent households and large families, the working poor, persons with disabilities, and people from marginalised backgrounds; whereas an ambitious EU anti-poverty strategy will be essential to reverse this trend and provide responses to the multidimensional phenomenon of poverty;

    Z. whereas Eurofound research shows that suicide rates have been creeping up since 2021, after decreasing for decades; whereas more needs to be done to address causes of mental health problems in working and living conditions (importantly social inclusion), and access to support for people with poor mental health remains a problem;

    AA. whereas there were still over 3 300 fatal accidents and almost 3 million nonfatal accidents in the EU-27 in 2021; whereas over 200 000 workers die each year from work-related illnesses; whereas these data do not include all accidents caused by undeclared work, making it plausible to assume that the true numbers greatly exceed the official statistics; whereas in 2017, according to Eurofound, 20 % of jobs in Europe were of ‘poor quality’ and put workers at increased risk regarding their physical or mental health; whereas 14 % of workers have been exposed to a high level of psychosocial risks; whereas 23 % of European workers believe that their safety or their health is at risk because of their work;

    AB. whereas the results of the April 2024 Eurobarometer survey on social Europe highlight that 88 % of European citizens consider social Europe to be important to them personally; whereas this was confirmed by the EU Post-Electoral Survey 2024, where European citizens cited rising prices and the cost of living (42 %) and the economic situation (41 %) as the main topics that motivated them to vote in the 2024 European elections;

    AC. whereas according to Article 3 TEU, social progress in the EU is one of the aims of a highly competitive social market economy, together with full employment, a high level of protection and improvement of the quality of the environment; whereas Article 3 TEU also states that the EU ‘shall combat social exclusion and discrimination, and shall promote social justice and protection, equality between women and men, solidarity between generations and protection of the rights of the child’;

    AD. whereas the new EU economic governance framework entered into force in April 2024 and aims to promote sustainable and inclusive growth and to give more space for social investment and achievement of the objectives of the EPSR; whereas, for the first time, the revision includes a social convergence framework as an integrated part of the European Semester;

    AE. whereas under the new EU economic governance framework, all Member States have to include reforms and investments in their medium-term plans addressing common EU priorities and challenges identified in country-specific recommendations in the context of the European Semester; whereas the common EU priorities include social and economic resilience, including the EPSR;

    AF. whereas European social partners, during Macroeconomic Dialogue, have denounced the lack of involvement of social partners in the drafting of the medium-term fiscal structural plans and ETUC, SMEUnited and SGIEurope have signed a joint statement for a material and factual involvement of social partners in the economic governance and the European Semester;

    AG. whereas public investment is expected to increase in 2025 in almost all Member States, with a significant contribution from NextGenerationEU’s Recovery and Resilience Facility (RRF) and EU funds and will contribute to social spending, amounting to around 25 % of the total estimated expenditure under the RRF, securing growth and economic resilience[8]; whereas social investments and reforms in key areas can boost employment, social inclusion, competitiveness and economic growth[9]; whereas social partners are essential for designing and implementing policies that promote sustainable and inclusive growth, decent and quality work, and fair transitions and must be involved at all levels of governance in accordance with the TFEU;

    AH. whereas the Member States should implement the Minimum Wage Directive without delay and prepare action plans that increase collective bargaining coverage in line with the directive, where applicable;

    AI. whereas according to the Organization for Economic Co-operation and Development (OECD), on average across OECD countries, occupations at highest risk of automation account for about 28 % of employment[10]; whereas social dialogue and collective bargaining are crucial in this context to ensure a participatory approach to managing change driven by technological developments, addressing potential concerns, while fostering workers’ adaptation (including via skills provision); whereas digitalisation, robotisation, automation and artificial intelligence (AI) must benefit workers and society by improving working conditions and quality of life, ensuring a good work-life balance, creating better employment opportunities, and contributing to socio-economic convergence; whereas workers and their trade unions will play a critical role in anticipating and tackling risks emerging from those challenges;

     

    AJ. whereas social dialogue and collective bargaining are essential for the EU’s competitiveness, labour productivity and social cohesion;

    1. Considers that the Commission and the Council should strengthen their efforts to implement the EPSR, in line with the action plan of March 2021 and the La Hulpe Declaration, to achieve the 2030 headline targets; calls on the Commission to ensure that the JER 2026 analyses the implementation of all the principles of the EPSR in line with Regulation (EU) 2024/1263 and includes an analysis of the social dimension of the national medium-term fiscal structural plans related to social resilience, including the EPSR; welcomes, in this regard, the announcement of a new Action Plan on the implementation of the EPSR[11] for 2025 to give a new impetus to social progress; welcomes the fact that almost all Member States are expected to increase public investment in 2025, which is necessary to ensure access to quality public services and achieve the aims of the EPSR; recalls that the Member States can mobilise the RRF within the scope defined by the Regulation (EU) 2021/241[12] until 31 December 2026 on policies for sustainable and inclusive growth and the young;

    2. Stresses the importance of using the Social Scoreboard and the Social Convergence Framework to identify risks to, and to track progress in, reducing inequalities, strengthening social protection systems and promoting decent working conditions and supportive measures for workers to manage the transitions; stresses that in this regard, it is necessary to ensure a sustainable, fair and inclusive Europe where social rights are fully protected and safeguarded at the same level as economic freedoms; recalls that EU citizens identify social Europe as one of their priorities;

    3. Regrets the lack of data on and analysis of wealth inequality and wealth concentration in the EU as this is one of the main determinants of poverty; points out that according to Distributional Wealth Accounts, a dataset developed by the European System of Central Banks, the share of wealth held by the top 10 % stood at 56 % in the fourth quarter of 2023, while the bottom half held just 5 %;

    4. Welcomes the inclusion of analysis on the positive contribution of the SDGs and the European equality strategies in the JER 2025 and calls on the Commission to ensure that the JER 2026 includes both a section analysing the progress towards the SDGs related to employment and social policy, and another on progress towards eliminating social and labour discrimination in line with the Gender Equality Strategy 2020-2025, the EU Anti-Racism Action Plan 2020-2025, the EU Roma strategic framework for equality, inclusion and participation 2020-2030, the LGBTIQ Equality Strategy 2020-2025, and the Strategy for the rights of persons with disabilities 2021-2030;

    5. Calls on the Member States to implement the updated employment guidelines, with an emphasis on education and training for all, new technologies such as AI, and recent policy initiatives on platform work, affordable and decent housing and tackling labour and skills shortages, with a view to strengthening democratic decision-making;

    6. Reiterates the importance of investing in workforce skills development and occupational training and of ensuring quality employment, with an emphasis on the individual right to training and lifelong learning; urges the Member States to develop upskilling and reskilling measures in collaboration with local stakeholders, including educational and training bodies and the social partners, in order to reinforce the link between the education and training systems and the labour market and to anticipate labour market needs; welcomes the fact that employment outcomes for recent graduates from vocational education and training (VET) continue to improve across the EU; is concerned about young people’s declining educational performance, particularly in basic skills; welcomes, in this regard, the announcement of an Action Plan on Basic Skills and a STEM Education Strategic Plan; calls on the Member States to invest in programmes to equip learners with the basic, digital and transversal skills needed for the world of work and its digitisation as well as to help them to contribute meaningfully to society; recalls the important role that the European Globalisation Adjustment Fund for displaced workers can play in supporting and reskilling workers who were made redundant as a result of major restructuring events;

    7. Welcomes the announcement of a quality jobs roadmap to ensure a just transition for all; calls on the Commission to include in this roadmap considerations for measures linked to the use of AI and algorithmic management in the world of work so that new technologies are harnessed to improve working conditions and productivity while respecting workers’ rights and work-life balance as recognised in the JER[13]; calls on the Commission to propose a directive on the use of AI in the workplace that ensures that workers’ rights are protected and respected;

    8. Stresses that the response to labour shortages in the European Union also involves improving and facilitating labour mobility within the Union; calls on the Member States to strengthen and facilitate the recognition of skills and qualifications in the Union, including those of third-country nationals; calls on the Commission to analyse the effectiveness of the European Employment Services (EURES) platform with a view to a potential revision of its operation;

    9. Notes that the number of early leavers from education and training, people with lower levels of education, young people not in education, employment or training (NEETs) and among them vulnerable groups, including Roma, women, older people, low- and medium-qualified people, persons with disabilities and people with a migrant or minority background, depending on the country-specific context, remains high in several Member States, despite a downward trend in the European Union; calls on the Member States to reinforce the Youth Guarantee as stated in Principle 4 of the EPSR; in order to support young people in need throughout their personal and professional development; reiterates the pivotal role that VET plays in providing the knowledge, skills and competencies necessary for young people entering the labour market; emphasises the need to invest in the quality and attractiveness of VET through the European Social Fund Plus (ESF+); recalls, therefore, the need to address this situation and develop solutions to keep young people in education, training or employment and the importance of ensuring their access to traineeships and apprenticeships, enabling them to gain their first work experience and facilitating their transition from education to employment as well as to create working conditions that enable an ageing workforce to remain in the labour market;

    10. Considers that, although there has been an improvement, persons with disabilities, especially women with disabilities, still face significant obstacles in the labour market, and that there is therefore a need for vocational and digital training, while promoting the inclusion of persons with disabilities, targeting the inactive labour force and groups with low participation in the labour market, including women, young people, older workers and persons with chronic diseases; calls on the Commission to update the EU Disability Strategy with new flagship initiatives and actions from 2025 onwards, such as a European Disability Employment and Skills Guarantee and the sharing of best practices such as the disability card, in particular to address social inclusion and independent living for people with disabilities, also ensuring their access to quality education, training and employment through guidance on retaining disability allowances;

    11. Expresses concern that Roma continue to face significant barriers to employment, with persistent biases limiting their prospects; notes that the EU Roma strategic framework for equality, inclusion, and participation highlights a lack of progress in employment access and a growing share of Roma youth not in employment, education, or training; emphasises the framework’s goal of halving the employment gap between Roma and the general population and ensuring that at least 60 % of Roma are in paid work by 2030; urges the Member States to adopt an integrated, equality-focused approach and to ensure that public policies and services effectively reach all Roma, including those in remote rural areas;

    12. Stresses the need to pay attention to the social and environmental aspects of competitiveness, emphasising the need for investments in education and training for all to ensure universal access to high-quality public education and professional training programmes, as well as sustainable practices to foster inclusive growth; underlines that social partners should play a key role in identifying and addressing skills needs across the EU;

    13. Calls on the Commission and the Member States to include specific recommendations on housing affordability in the European Semester and to promote housing investment; urges the Member States to ensure that housing investments support long-term quality housing solutions that are actually affordable for low-income and middle-income households, highlighting that investments in social and affordable housing are crucial in order to ensure and improve the quality of life for all; stresses the need for a better use of EU funding, such as through European Investment Bank financial instruments, in particular to support investments to increase the energy efficiency of buildings; calls on the Commission and the Member States to take decisive action to provide an EU regulatory framework for the housing sector, together with an assessment of Union policies, funds and bottlenecks that should facilitate the construction, conversion and renovation of accessible, affordable and energy-efficient housing, including social housing, that meets the needs of young people, people with reduced mobility, low- and middle-income groups, families at risk and people in more vulnerable situations, while protecting homeowners and those seeking access to home ownership from a further reduction in supply;

    14. Welcomes the announced European Affordable Housing Plan to support Member States in addressing the housing crisis and soaring rents; calls on the Commission to assess and publish which potential barriers on State aid rules affect housing accessibility; recalls that the Social Climate Fund aims to provide financial aid to Member States from 2026 to support vulnerable households, in particular with measures and investments intended to increase the energy efficiency of buildings, decarbonisation of heating and cooling of buildings and the integration in buildings of renewable energy generation and storage;

    15. Considers that homelessness is a dramatic social problem in the EU; calls for a single definition of homelessness in the EU, which would enable the systematic comparison and assessment of the extent of homelessness across different EU Member States; calls on the Commission to develop a strategy and work towards ending homelessness in the EU by 2030 by promoting access to affordable and decent housing as well as access to quality social services; urges the Member States to better use the available EU instruments, including the ESF+, in this matter[14];

    16. Calls on the Member States to design national homelessness strategies centred around housing-based solutions; welcomes the intention to deliver a Council recommendation on homelessness[15]; urges the Commission to further increase the ambition of the European Platform on Combating Homelessness, in particular by providing it with a dedicated budget;

    17. Considers that EU action is urgently needed to address the persistently high levels of poverty and social exclusion in the EU, particularly among children, young and older people, persons with disabilities, non-EU born individuals, LGTBI and Roma communities; highlights that access to quality social services should be prioritised, with binding targets to reduce homelessness and ensure energy security for vulnerable households; calls on the Commission to adopt the first-ever EU Anti-Poverty Strategy;

    18. Recalls the Union objective of transitioning from institutional to community or family-based care; calls on the Commission to put forward an action plan on deinstitutionalisation; stresses that this action plan should cover all groups still living in institutions, including children, persons with disabilities, people with mental health issues, people affected by homelessness and older people; calls on the Member States to make full use of the ESF+ funds as well as other relevant European and national funds in order to finalise the deinstitutionalisation process so as to ensure that every EU citizen can live in a family or community environment;

    19. Calls on the Commission to deliver a European action plan for mental health, in line with its recent recommendations[16], and to complement it with a directive on psychosocial risks in the workplace; calls on the Member States to strengthen access to mental health services and emotional support programmes for all, particularly children, young people and older people; requests a better use of the Social Scoreboard indicators to address the impact of precarious living conditions and uncertainty on mental health;

    20. Calls on the Commission to address loneliness by promoting a holistic EU strategy on loneliness and access to professional care; calls also for this EU strategy to address the socio-economic impact of loneliness on productivity and well-being by tackling issues such as rural isolation; urges the Member States to continue implementing the Council recommendation on access to affordable, quality long-term care with a view to ensuring access to quality care while ensuring decent working conditions for workers in the care sector, as well as for informal carers;

    21. Recognises that 44 million Europeans are frequent informal long-term caregivers, the majority of whom are women[17];

    22. Recognises the unique role of carers in society, and while the definition of care workers is not harmonised across the EU, the long-term care sector employs 6.4 million people across the EU;

    23. Is concerned that, in 2023, 94.6 million people in the EU were still at risk of poverty or social exclusion; stresses that without a paradigm shift in the approach to combating poverty, the European Union and its Member States will not achieve their poverty reduction objectives; believes that the announcement of the first-ever EU Anti-Poverty Strategy is a step in the right direction towards reversing the trend, but must provide a comprehensive approach to tackling the multidimensional aspects of poverty and social exclusion with concrete actions, strong implementation and monitoring; calls for this Strategy to encompass everybody experiencing poverty and social exclusion, first and foremost the most disadvantaged, but also specific measures for different groups such as persons experiencing in-work poverty, homeless people, people with disabilities, single-parent families and, above all, children in order to sustainably break the cycle of poverty; stresses that the transposition of the Minimum Wage Directive will be key to preventing and fighting poverty risks among workers, while reinforcing incentives to work, and welcomes the fact that several Member States have amended or plan to amend their minimum wage frameworks; is concerned about the rise of non-standard forms of employment where workers are more likely to face in-work poverty and find themselves without adequate legal protections; stresses that an EU framework directive on adequate minimum income and active inclusion, in compliance with the subsidiarity principle, would contribute to the goals of reducing poverty and fostering the integration of people absent from the labour market;

    24. Reiterates its call on the Commission to carefully monitor implementation of the Child Guarantee in all Member States as part of the European Semester and country-specific recommendations; reiterates its call for an increase in the funding of the European Child Guarantee with a dedicated budget of at least EUR 20 billion and for all Member States to allocate at least 5 % of their allocated ESF+ funds to fighting child poverty and promoting children’s well-being; considers that the country-specific recommendations should reflect Member States’ budgetary compliance with the minimum required allocation for tackling child poverty set out in the ESF+ Regulation[18]; calls on the Commission to provide an ambitious budget for the Child Guarantee in the next MFF in order to respond to the growing challenge of child poverty and social exclusion;

    25. Is concerned about national policies that create gaps in health coverage, increasing inequalities both within and between Member States, such as privatisation of public healthcare systems, co-payments and lack of coverage; highlights that these deepen poverty, erode health and well-being, and increase social inequalities within and across EU countries; warns that this also undermines the implementation of principle 16 of the EPSR and of SDG 3.8 on universal health coverage, as well as the EPSR’s overall objective of promoting upward social convergence in the EU, leaving no one behind; believes that the indicators used in the Social Scoreboard do not provide a comprehensive understanding of healthcare affordability;

    26. Underlines that employers need to foster intergenerational links within companies and intergenerational learning between younger and older workers, and vice versa; underlines that an ageing workforce can help a business develop new products and services to adapt to the needs of an ageing society in a more creative and productive way; calls, furthermore, for the creation of incentives to encourage volunteering and mentoring to induce the transfer of knowledge between generations;

    27. Warns that, according to European Central Bank reports, real wages are still below their pre-pandemic level, while productivity was roughly the same; agrees that this creates some room for a non-inflationary recovery in real wages and warns that if real wages do not recover, this would increase the risk of protracted economic weakness, which could cause scarring effects and would further dent productivity in the euro area relative to other parts of the world; believes that better enforcement of minimum wages and strengthening collective bargaining coverage can have a beneficial effect on levels of wage inequality, especially by helping more vulnerable workers at the bottom of the wage distribution who are increasingly left out;

    28. Calls for the Member States to ensure decent working conditions, comprising among other things decent wages, access to social protection, lifelong learning opportunities, occupational health and safety, a good work-life balance and the right to disconnect, reasonable working time, workers’ representation, democracy at work and collective agreements; urges the Member States to foster democracy at work, social dialogue and collective bargaining and to protect workers’ rights, particularly in the context of the green and digital transitions, and to ensure equal pay for equal work by men and women, enhance pay transparency and address gender-based inequality to close the gender pay gap in the EU;

    29. Recalls the importance of improving access to social protection for the self-employed and calls on the Commission to monitor the Member States’ national plans for the implementation of the Council Recommendation of 8 November 2019 on access to social protection for workers and the self-employed[19] as part of the country-specific recommendations; recalls, in this regard, as the rate of self-employed professionals in the cultural and creative sectors is more than double that in the general population, the 13 initiatives laid down in the Commission’s 21 February 2024 response to the European Parliament resolution of 21 November 2023 on an EU framework for the social and professional situation of artists and workers in the cultural and creative sectors[20] and calls on the Commission to start implementing them in cooperation with the Member States;

    30. Stresses that the role of social dialogue and social partners should be systematically integrated into the design and implementation of employment and social policies, ensuring the involvement of social partners at all levels;

    31. Calls for the implementation of policies that promote work-life balance and the right to disconnect, with the aim of improving the quality of life for all families and workers, for ensuring the implementation of the Work-Life Balance Directive[21] and of the European Care Strategy; calls on the Commission to put forward a legislative proposal to address teleworking and the right to disconnect; as well as a proposal for the creation of a European card for all types of large families and a European action plan for single parents, offering educational and social advantages; calls, ultimately, for initiatives to combat workforce exclusion as a consequence of longer periods of sick leave, to adapt the workplace and to promote flexible working conditions and to develop strategies to support workers’ return after longer periods of absence;

    32. Calls for demographic challenges to be prioritised in the EU’s cohesion policy and for concrete action at EU and national levels; calls on the Commission to prioritise the development of the Commission communication on harnessing talent in Europe’s regions and the ‘Talent Booster Mechanism’ in order to promote social cohesion and to step up funding for rural and outermost areas and regions with a high rate of depopulation, supporting quality job creation, public services, local development projects and basic infrastructure that favour the population’s ‘right to stay’, especially in the case of young people; highlights the importance of introducing specific measures to address regional inequalities in education and training, ensuring equal access to high-quality and affordable education for all;

    33. Is concerned that, despite improvements, several population groups are still significantly under-represented in the EU labour market, including women, older people, low- and medium-qualified people, persons with disabilities and people with a migrant or minority background; warns that  educational inequalities have deepened, further exacerbating the vulnerabilities of students from disadvantaged and migrant backgrounds; points out that, according to the JER, people with migrant or minority backgrounds can significantly benefit from targeted measures in order to address skills mismatches, improve language proficiency, combat discrimination and receive tailored and integrated support services; stresses the importance of strengthening efforts in the implementation of the 2021-27 Action Plan on Integration and Inclusion, which provides a common policy framework to support the Member States in developing national migrant integration policies;

    34. Calls on the Commission and the Council to prioritise reducing administrative burdens with the aim of simplification while respecting labour and social standards; believes that better support for SMEs and actual and potential entrepreneurs will improve the EU’s competitiveness and long-term sustainability, boost innovation and create quality jobs; notes that SMEs and self-employed professionals in all sectors are essential for the EU’s economic growth and thus the financing of social policies; urges the implementation of specific recommendations to improve the single market; takes note of the Commission’s publication of the ‘Competitiveness Compass’ on 29 January 2025[22];

    35. Calls on the Commission to conduct competitiveness checks on every new legislative proposal, taking into account the overall impact of EU legislation on companies, as well as on other EU policies and programmes;

    36. Considers that the social economy is an essential component of the EU’s social market economy and a driver for the implementation of the EPSR and its targets, often providing employment to vulnerable and excluded groups; calls on the Commission and the Member States to strengthen their support for all social economy enterprises but especially non-profit ones, as highlighted in the Social Economy Action Plan 2021 and the Liège Roadmap for the Social Economy, in order to promote quality, decent, inclusive work and the circular economy, to encourage the Member States to facilitate access to funding and to enhance the visibility of social economy actors; calls for the Commission to explore innovative funding mechanisms to support the development of the social economy in Europe[23] and to foster a dynamic and inclusive business environment;

    37. Believes that, in this year of transition, with the implementation of the revised economic governance rules, the Member States should align fiscal responsibility with sustainable and inclusive growth and employment, notes that the involvement of social partners, including in the development of medium-term fiscal structural plans, should be enhanced to contribute to the goals of the new economic governance framework;

    38. Welcomes the fact that the national medium-term fiscal structural plans, under the new economic governance framework, have to include the reforms and investments responding to the main challenges identified in the context of the European Semester and also to ensure debt sustainability while investing strategically in the principles of the EPSR with the aim of fostering upward social convergence;

    39. Is concerned that compliance with the country-specific recommendations (CSRs) remains low; reiterates its call, therefore, for an effective implementation of CSRs by the Member States so as to promote healthcare and sustainable pension systems, in line with principles 15 and 16 of the EPSR, and long-term prosperity for all citizens, taking into account the vulnerability of those workers whose careers are segmented, intermittent and subject to labour transitions; insists that the Commission should reinforce its dialogues with the Member States on the implementation of existing recommendations and of the Employment Guidelines as well as on current or future policy action to address identified challenges;

    40. Welcomes the establishment of a framework to identify risks to social convergence within the European Semester, for which Parliament called strongly; recalls that under this framework, the Commission assesses risks to upward social convergence in Member States and monitors progress on the implementation of the EPSR on the basis of the Social Scoreboard and of the principles of the Social Convergence Framework; welcomes the fact that the 2025 JER delivers country-specific analysis based on the principles of the Social Convergence Framework; calls on the Commission to further develop innovative quantitative and qualitative analysis tools under this new Framework in order to make optimal use of it in the future cycles of the European Semester;

    41. Welcomes the fact that the first analysis based on the principles of the Social Convergence Framework points to upward convergence in the labour market in 2023[24]; notes with concern that employment outcomes of under-represented groups still need to improve and that risks to upward convergence persist at European level in relation to skills development, ranging from early education to lifelong learning, and the social outcomes of at-risk-of-poverty and social exclusion rates; calls on the Commission to further analyse these risks to upward social convergence in the second stage of the analysis and to discuss with the Member States concerned the measures undertaken or envisaged to address these risks;

    42. Recognises the cost of living crisis, which has increased the burden on households, and the rising cost of housing, which, in conjunction with high energy costs, is contributing to high levels of energy poverty across the EU; calls, therefore, on the Commission and Member States to comprehensively address the root causes of this crisis by prioritising policies that promote economic resilience, social cohesion, and sustainable development;

    43. Warns of the social risks stemming from the crisis in the automotive sector, which is facing unprecedented pressure from both external and internal factors; calls on the Commission to pay attention to this sector and enhance social dialogue and the participation of workers in transition processes; stresses the urgent need for a coordinated EU response via an emergency task force of trade unions and employers to respond to the current crisis;

    44. Calls on the Commission to monitor data on restructuring and its impact on employment, such as by using the European Restructuring Monitor, to facilitate measures in support of restructuring and labour market transitions, and to consider highlighting national measures supporting a socially responsible way of restructuring in the European Semester;

    45. Calls on the Commission to monitor the development of minimum wages in the Member States following the transposition of the Minimum Wage Directive to determine whether the goal of ‘adequacy’ of minimum wages is being achieved;

    46. Is concerned about the Commission’s revision of the Macroeconomic Imbalance Procedure (MIP) Scoreboard, particularly the reduction in employment and social indicators, which are crucial for assessing the social and labour market situation in the Member States; regrets the fact that youth unemployment is no longer considered as a headline indicator, despite its relevance in identifying and addressing specific labour market challenges and in adopting adequate public policies; stresses that social standards indicators should be given greater consideration in the decision-making process; regrets the fact that the Commission did not duly consult Parliament and reminds the Commission of its obligation to closely cooperate with Parliament, the Council and social partners before drawing up the MIP scoreboard and the set of macroeconomic and macro-financial indicators for Member States; stresses that the implementation of the principles of the EPSR must be part of the MIP scoreboard;

    47. Considers that territorial and social cohesion are essential components of the competitiveness agenda, and legislation such as the European Instrument for Temporary Support to Mitigate Unemployment Risks in an Emergency (SURE) remain a positive example to inspire future EU initiatives;

    48. Considers that the Commission and the Member States should ensure that fiscal policies under the European Semester support investments aligned with the EPSR, particularly in areas such as decent and affordable housing, quality healthcare, education, and social protection systems, as these are critical for social cohesion and long-term economic sustainability and to address the challenges identified through social indicators;

    49. Stresses the need to address key challenges identified in the Social Scoreboard as ‘critical’ and ‘to watch’, including children at risk of poverty or social exclusion, the gender employment gap, housing cost overburden, childcare, and long-term care the disability employment gap, the impact of social transfers on reducing poverty, and basic digital skills[25];

    50. Stresses the negative impacts that the cost of living crisis has had on persons with disabilities;

    51. Urges the Member States to consider robust policies that ensure fair wages and improve working conditions, particularly for low-income and precarious workers;

    52. Calls on the Member States to strengthen social safety nets to provide adequate support to those whose income from employment is insufficient to meet basic living costs;

    53. Stresses the need for timely and harmonised data on social policies to improve evidence-based policymaking and targeted social investments; calls for improvements to be made to the Social Scoreboard in order to cover the 20 EPSR principles with the introduction of relevant indicators reflecting trends and causes of inequality, such as quality employment, wealth distribution, access to public services, adequate pensions, the homelessness rate, mental health and unemployment; recalls that the at-risk-of-poverty-or-social-exclusion (AROPE) indicator fails to reveal the causes of complex inequality; calls on the Commission and the Member States to develop a European data collection framework on social services to monitor the investment in and coverage of social services;

    54. Instructs its President to forward this resolution to the Council and the Commission.

    MIL OSI Europe News

  • MIL-OSI Asia-Pac: Government launches Aadhaar Good Governance portal to streamline approval process for Aadhaar authentication requests

    Source: Government of India

    Government launches Aadhaar Good Governance portal to streamline approval process for Aadhaar authentication requests

    New Aadhaar Governance Portal to Enhance Ease of Living, Make Services More People-Friendly, and Improve Citizen-Centric Access to Services

    New Rule Enables Seamless Aadhaar Authentication for Public Interest Services by Both Government and Private Entities

    Posted On: 27 FEB 2025 8:33PM by PIB Delhi

    The Ministry of Electronics and Information Technology (MeitY) today launched Aadhaar Good Governance portal to streamline approval process for Aadhaar authentication requests. This is in sync with an effort to make Aadhaar more people-friendly, enable ease of living, and enable better access to services for people.

    The Aadhaar Good Governance portal was launched by Shri S. Krishnan, Secretary, MeitY in the presence of Shri Bhuvnesh Kumar, CEO UIDAI, Shri Inder Pal Singh Sethi Director General of NIC, Shri Manish Bhardwaj, DDG UIDAI,  Shri Amod Kumar, DDG UIDAI and other senior officials from MeitY, UIDAI and NIC.

    Enhance Ease of Living and Service Accessibility

    The online platform (http://swik.meity.gov.in) comes into effect, after Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Amendment Rules, 2025 under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 was notified in late January 2025. This amendment has been done to help improve transparency and inclusivity in the decision-making process.

    Aadhaar is considered as the most trusted digital ID in the world. In the past decade, more than a billion Indians have expressed their trust in Aadhaar by using it to authenticate themselves over 100 billion times. Expansion of the scope of Aadhaar authentication, as envisaged in the amendment, will further improve ease of living and facilitate hassle-free access to newer services of their choice.

    Shri Krishnan, Secretary, MeitY  highlighted that with the launch of this platform and continuous improvement of other processes and systems around it, we hope to expedite the process of adding more use cases in the domain of good governance and ease of living.

    Shri Bhuvnesh Kumar, CEO UIDAI underlined how Aadhaar is facilitating the growth of India’s digital economy. He said Aadhaar is an enabler of good governance, and resident centricity is the focus of UIDAI. The Aadhaar good governance portal has been developed to facilitate ease of submission and approval proposals by entities in accordance with the prescribed rules.

    Seamless Authentication for Public Interest Services

    The amendment enables both government and non-government entities to avail Aadhaar authentication service for providing various services in the public interest for related specific purposes like enablement of innovation, spread of knowledge, promoting ease of living of residents and enabling better access to services for them. This will help both the service providers as well as the service seekers to have trusted transactions.

    The fresh amendment enables Aadhaar number holders to avail hassle free services from several sectors including hospitality, healthcare, credit rating bureau, e-commerce players, educational institutions and aggregator service providers. Service providers too will find it helpful for a range of things including staff attendance, customer onboarding, e-KYC verification, exam registrations etc.

     

    Portal to Offer Step-by-Step Guide for Authentication Requests

    The portal shall work as a resource rich guide, and offer detailed SOP for authentication seeking entities on how to apply and how to onboard for Aadhaar authentication.

    Face Authentication may also be integrated in the customer facing apps of private entities, which will enable anytime anywhere, authentication.

    As part of its commitment to make Aadhaar people-friendly and enable ease of living and better access to services for citizens, the Ministry had proposed rules to enable Aadhaar authentication by entities other than Government Ministries and Departments. The proposed amendments were posted on the Ministry website and comments were invited from the stakeholders and the general public during April and May 2023.

    ****

    Dharmendra Tewari/Shatrunjay Kumar

    (Release ID: 2106755) Visitor Counter : 15

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: A high-level European Union delegation, led by Ms Ekaterina Zaharieva, currently on India visit, today called on Union Minister for Science and Technology, Dr. Jitendra Singh and discussed primarily the StartUp and innovation collaborations

    Source: Government of India

    A high-level European Union delegation, led by Ms Ekaterina Zaharieva, currently on India visit, today called on Union Minister for Science and Technology, Dr. Jitendra Singh and discussed primarily the StartUp and innovation collaborations

    The meeting between Ekaterina, who is the European Union Commissioner for Startups, Research and Innovation and the Indian Minister marks a significant milestone in India-EU cooperation in the field of science and technology

    Recalls the long-standing and growing cooperation between India and the European Union (EU) in the field of science and technology

    “Prime Minister Narendra Modi Instrumental in Making India a hub of hub of cutting-edge research, fostering innovation, and driving transformative initiatives across various scientific domains” says Dr. Singh

    Highlights AI, Quantum Mission, healthcare, Ocean Polar along with other areas with potential of India -EU collaboration

    Posted On: 27 FEB 2025 8:27PM by PIB Delhi

    A high-level European Union delegation, led by Ms Ekaterina Zaharieva, currently on India visit, today called on Union Minister of State (Independent Charge) for Science and Technology, Dr. Jitendra Singh and discussed primarily the StartUp and innovation collaborations.

    The meeting between Ekaterina, who is the European Union Commissioner for Startups, Research and Innovation and the Indian Minister marks a significant milestone in India-EU cooperation in the field of science and technology.

    The Science and Technology Minister emphasized the longstanding partnership between India and the European Union, which dates back to the signing of the India-EU Science and Technology Agreement in 2001, renewed in 2015 and 2020, and set to be renewed once again for the period 2025-2030.

    Dr. Jitendra Singh credited Prime Minister Narendra Modi for his visionary leadership and unwavering support, which has played a pivotal role in India’s remarkable leap in science and technology. He noted that PM Modi has been instrumental in steering the country towards becoming a hub of cutting-edge research, fostering innovation, and driving transformative initiatives across various scientific domains.

    During the discussions, Dr. Jitendra Singh highlighted several key areas where India and the EU can collaborate further to drive innovation and sustainable development.

    These areas include:

    Water Resource Management

    Clean Energy & Smart Grids

    Artificial Intelligence (AI), Data & Robotics

    Healthcare (including Vaccine Development and Pandemic Preparedness)

    Climate Change & Polar Research

    The Minister stressed that collaboration in these areas would harness the strengths of both India and Europe, with an emphasis on increasing synergy and sharing knowledge and resources.

    Dr. Singh underscored India’s commitment to advancing joint research initiatives with the EU, particularly during the period from 2020 to 2024. He referred to ongoing projects such as:

    Department of Science and Technology (DST): Projects on Water, Energy, AI, Data, and Robotics

    Department of Biotechnology (DBT): Collaborative work on Water Resources and Vaccine Development

    Ministry of Earth Sciences (MoES): Joint research on Climate Change and Polar Research

    The Minister emphasized India’s substantial contribution to these projects, amounting to €20.92 million. He also named several noteworthy achievements and projects, including:

    Geospatial Mapping of Point/Non-Point Pollution Sources (SPRING)

    PAVITRA GANGA: Demonstration of novel wastewater treatment technologies at Kanpur and Barapullah, New Delhi

    ENDFLU: Development of an improved influenza vaccine (Myn002) for better protection against drifted influenza strains

    BRIC-THSTI: Development of domestic influenza vaccine testing capacity through the ENDFLU and INCENTIVE projects

    PRESCRIP-TEC: HPV awareness and screening initiatives

    RUTI®: Phase 1 trials of Anti-TB vaccine

    The Minister of Earth Sciences, Dr. Singh, further emphasized the importance of international collaboration in addressing oceanic and climatic challenges. Key areas of research include:Ocean warming, deoxygenation, and acidification;Polar climate studies;Ocean forecasting.

    Dr. Jitendra Singh stressed the need for global cooperation to address these threats and ensure the health of the planet’s ecosystems.

    Looking ahead, Dr. Singh outlined several promising areas for future India-EU collaboration:

    Quantum Research: India’s emerging Quantum R&D capabilities combined with the EU’s advanced quantum hardware can lead to breakthroughs in secure communication and computing.

    Bioeconomy: India’s first-of-its-kind Bioeconomy (BioE3) policy, along with the EU’s expertise, can foster growth in the sector.

    Green Hydrogen: India’s scaling renewable hydrogen projects, paired with the EU’s leadership in electrolysis technology, can drive transformational change in energy.

    Battery Technology & Blue Economy: Exploring innovations in energy storage and sustainable use of ocean resources.

    High-Performance Computing: Enhancing computational capabilities for scientific and industrial applications.

    Dr. Singh also highlighted India’s commitment to tackling climate change through clean energy collaboration, particularly in offshore wind and solar projects. This, he said, would help meet the ambitious climate targets set by both India and the EU.

    The S&T Minister pointed out that India’s National AI Mission, backed by substantial funding, will be a key area for collaboration between India and the EU. He emphasized the potential for both regions to lead in AI safety and security, ensuring the development of AI in a sustainable, equitable, and inclusive manner.

    In the health sector, Dr. Singh identified several key areas where India and the EU can collaborate:Infectious and Non-Infectious Diseases; Novel Therapeutics, Biologicals, and Early Diagnostics; Drug Repurposing; AI in Healthcare Antimicrobial Resistance (AMR); One Health Approach.

    He stressed that the partnership between India and Europe could extend to these critical health challenges, which have global implications.

    From the Directorate-General for Research and Innovation, Mr. Marc Lemaître, Director-General; Ms. Nienke Buisman, Head of Unit, Innovation, Prosperity, and International Cooperation; and from the Cabinet of the Commissioner, Ms. Sophie Alexandrova, Deputy Head of Cabinet, along with Mr. Ivan Dimov, Member of Cabinet; Mr. Pierrick Fillon-Ashida, First Counsellor & Head of the Research & Innovation Section; Dr. Vivek Dham, Policy Officer, Research & Innovation Section, EU Delegation to India, were part of the delegation.

    Dr. Jitendra Singh concluded the discussions by reiterating India’s deep commitment to strengthening its partnership with the European Union in science and technology. He expressed confidence that the shared vision for collaboration in key sectors will create a pathway to solving global challenges and advancing mutual interests.

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    NKR/PSM

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  • MIL-OSI Asia-Pac: National Science Day to be celebrated with theme ‘Empowering Indian Youth for Global Leadership in Science & Innovation for Viksit Bharat’

    Source: Government of India

    Posted On: 27 FEB 2025 8:26PM by PIB Delhi

    Union Minister of State (Independent Charge) Science & Technology; Minister of State (Independent Charge) Earth Sciences; MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh will grace the National Science Day (NSD) 2025 celebration at Vigyan Bhawan on February 28, 2025.

    The theme of the programme this year is “Empowering Indian Youth for Global Leadership in Science & Innovation for Viksit Bharat”. The theme has been inspired by the emphasis of Hon’ble Prime Minister Shri Narendra Modi on the power of the youth to innovate and bring about transformations and his dream of Viksit Bharat through global leadership in S&T.

    Two National Science Day lectures will be also delivered on the theme by Shri Shashi S. Vempati, Co-Founder AI4India & Former CEO Prasar Bharati and Prof. Sanjay Behari, Director, Sree Chitra Tirunal Institute for Medical Sciences and Technology, Kerala.

    NSD is celebrated every year on February 28 to commemorate the discovery of the ‘Raman Effect.’ The Government of India designated February 28 as National Science Day (NSD) in 1986. On this day, Sir C.V. Raman announced the discovery of the ‘Raman Effect’ for which he was awarded the Nobel Prize in 1930. On this occasion, theme-based science communication activities are carried out all over the country.

    Its celebrations are targeted to increase public appreciation of the scientific issues involved, bring scientific awareness in the country and to encourage curiosity and understanding about science and entice young people to pursue science. Many institutions organize open house sessions for their laboratories and appraise students about career opportunities available in the respective research laboratories/institutions.

    National Council for Science & Technology Communication (NCSTC), Department of Science and Technology (DST) acts as a nodal agency to support, catalyse and coordinate the celebration of the National Science Day throughout the country in scientific institutions, research laboratories and autonomous scientific institutions associated with the Department of Science and Technology. NCSTC also supports various programmes like lectures, quizzes, open house sessions across the country through State S&T Councils & Departments.

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    NKR/PSM

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  • MIL-OSI Asia-Pac: PM chairs a High-Level Meeting to review Ayush sector

    Source: Government of India (2)

    PM chairs a High-Level Meeting to review Ayush sector

    PM undertakes comprehensive review of the Ayush sector and emphasizes the need for strategic interventions to harness its full potential

    PM discusses increasing acceptance of Ayush worldwide and its potential to drive sustainable development

    PM reiterates government’s commitment to strengthen the Ayush sector through policy support, research, and innovation

    PM emphasises the need to promote holistic and integrated health and standard protocols on Yoga, Naturopathy and Pharmacy Sector

    Posted On: 27 FEB 2025 8:14PM by PIB Delhi

    Prime Minister Shri Narendra Modi chaired a high-level meeting at 7 Lok Kalyan Marg to review the Ayush sector, underscoring its vital role in holistic wellbeing and healthcare, preserving traditional knowledge, and contributing to the nation’s wellness ecosystem.

    Since the creation of the Ministry of Ayush in 2014, Prime Minister has envisioned a clear roadmap for its growth, recognizing its vast potential. In a comprehensive review of the sector’s progress, the Prime Minister emphasized the need for strategic interventions to harness its full potential. The review focused on streamlining initiatives, optimizing resources, and charting a visionary path to elevate Ayush’s global presence.

    During the review, the Prime Minister emphasized the sector’s significant contributions, including its role in promoting preventive healthcare, boosting rural economies through medicinal plant cultivation, and enhancing India’s global standing as a leader in traditional medicine. He highlighted the sector’s resilience and growth, noting its increasing acceptance worldwide and its potential to drive sustainable development and employment generation.

    Prime Minister reiterated that the government is committed to strengthening the Ayush sector through policy support, research, and innovation. He also emphasised the need to promote holistic and integrated health and standard protocols on Yoga, Naturopathy and Pharmacy Sector.

    Prime Minister emphasized that transparency must remain the bedrock of all operations within the Government across sectors. He directed all stakeholders to uphold the highest standards of integrity, ensuring that their work is guided solely by the rule of law and for the public good.

    The Ayush sector has rapidly evolved into a driving force in India’s healthcare landscape, achieving significant milestones in education, research, public health, international collaboration, trade, digitalization, and global expansion. Through the efforts of the government, the sector has witnessed several key achievements, about which the Prime Minister was briefed during the meeting.

    • Ayush sector demonstrated exponential economic growth, with the manufacturing market size surging from USD 2.85 billion in 2014 to USD 23 billion in 2023.

    •India has established itself as a global leader in evidence-based traditional medicine, with the Ayush Research Portal now hosting over 43,000 studies. 

    • Research publications in the last 10 years exceed the publications of the previous 60 years.

    • Ayush Visa to further boost medical tourism, attracting international patients seeking holistic healthcare solutions.

    • The Ayush sector has witnessed significant breakthroughs through collaborations with premier institutions at national and international levels.

    • The strengthening of infrastructure and a renewed focus on the integration of artificial intelligence under Ayush Grid.

    • Digital technologies to be leveraged for promotion of Yoga.

    • iGot platform to host more holistic Y-Break Yoga like content

    • Establishing the WHO Global Traditional Medicine Centre in Jamnagar, Gujarat is a landmark achievement, reinforcing India’s leadership in traditional medicine. 

    • Inclusion of traditional medicine in the World Health Organization’s International Classification of Diseases (ICD)-11.

    • National Ayush Mission has been pivotal in expanding the sector’s infrastructure and accessibility.

    •  More than 24.52 Cr people participated in 2024, International Day of Yoga (IDY) which has now become a global phenomenon.

    • 10th Year of International Day of Yoga (IDY) 2025 to be a significant milestone with more participation of people across the globe.

    The meeting was attended by Union Health Minister Shri Jagat Prakash Nadda, Minister of State (IC), Ministry of Ayush and Minister of State, Ministry of Health & Family Welfare, Shri Prataprao Jadhav, Principal Secretary to PM Dr. P. K. Mishra, Principal Secretary-2 to PM Shri Shaktikanta Das, Advisor to PM Shri Amit Khare and senior officials.

     

    ***

    MJPS/ST

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  • MIL-OSI Asia-Pac: Chief Minister of Maharashtra and Union Minister of State for Power and New & Renewable Energy addressed the 2nd meeting of Group of Ministers on viability of distribution utilities.

    Source: Government of India (2)

    Chief Minister of Maharashtra and Union Minister of State for Power and New & Renewable Energy addressed the 2nd meeting of Group of Ministers on viability of distribution utilities.

    Renewable Energy as panacea for increasing supply and reducing cost of power

    Inflation-indexed and cost-reflective power tariffs need of the hour.

    Need for Regulatory Reforms for Power Distribution.

    Posted On: 27 FEB 2025 7:57PM by PIB Delhi

    The 2nd meeting of Group of Ministers (GoM), constituted for addressing issues related to viability of electricity distribution utilities, was held in Mumbai today in the presence of Shri Devendra Fadnavis, Hon’ble Chief Minister of Maharashtra, also holding the portfolio of Energy Ministry in the State, and Shri Shripad Yesso Naik, Hon’ble Union Minister of State for Power and New & Renewable Energy as Chairman of the GoM.

    Thiru V Senthil Balaji, Hon’ble Minister of Electricity, Tamil Nadu, Dr. Somendra Tomar, Hon’ble Minister of State for Energy, Uttar Pradesh, and Smt. Meghana Sakore Bordikar, Hon’ble Minister of State for Energy, Maharashtra attended the meeting. Shri Gottipati Ravikumar, Hon’ble Minister of Energy, Andhra Pradesh and Shri Heeralal Nagar, Hon’ble Minister of State for Energy, Rajasthan attended the meeting through video-conference. The meeting was also attended by officials from Central Government, State Governments and Power Utilities of member States, Power Finance Corporation (PFC) Ltd and REC Ltd.

    In his opening remarks, Union Minister of State welcomed Energy Ministers from the member States and thanked Chief Minister, Maharashtra, for hosting the meeting. He highlighted the discussions held in the first meeting of the GoM and the collective efforts required from the members for improvement in power Distribution sector. He highlighted about 4 key parameters and their relevance to improving viability of distribution utilities viz. Aggregate Technical and Commercial (AT&C) Loss, Gap between Average Cost of Supply and Average Revenue Realised (ACS-ARR Gap), Accumulated Losses and Outstanding debts.

    Union Minister expressed that every 1% increase of AT&C loss results in monetary losses for utilities in upwards of Rs. 10,000 Cr. He stressed upon the need for leveraging renewable energy (RE) for reducing cost of power in line with the initiatives taken by Maharashtra and Rajasthan. He highlighted about various short, medium and long term strategies to supplement the efforts towards viability of power distribution sector. He mentioned about the use of advanced technologies such as Artificial Intelligence for demand forecasting and power purchase optimisation, establishing mechanism for timely payment of Government dues, sharing best practices amongst DISCOMs, development of renewable energy, energy storage and expediting works under Revamped Distribution Sector Scheme (RDSS), as the key interventions.

    In his address Chief Minister of Maharashtra thanked Union Minister of State for having the 2nd meeting of the Group of Ministers in Mumbai. He commended that the measures taken by the Government of India will have far reaching impact on making country’s distribution sector stronger and healthier. He highlighted about the energy distribution across different consumer categories in the State. He emphasised on the need for expeditious growth of renewable sources of energy couple with energy storage solutions so as to meet the future challenges of energy transition and growing power demand.

    He further highlighted the efforts made by the State towards RE deployment under Mukhyamantri Saur Krishi Vahini Yojana facilitating day time power supply to farmers thereby reducing cost of power and reducing subsidy burden of the State. He mentioned that the State is expeditiously working towards solarization of all the Agricultural load feeders.

    He assured for improvement in AT&C loss figures of the State in the coming years. He mentioned about progress made by the State under the RDSS. He highlighted the importance of Resource Adequacy plan, use of AI tools etc. He requested support of Government of India (GoI) for early release of Gross Budgetary Support (GBS) under RDSS, reintroduction of schemes like UDAY (Ujjwal DISCOM Assurance Yojana), lowering interest rates on loans charged by REC Ltd. and Power Finance Corporation (PFC) Ltd., and waiver or reduction in their prepayment charges. He urged for having regulatory relaxations for allowing surplus of DISCOMs towards infrastructure development and reducing debt burden before passing it on further.

    Joint Secretary (Distribution), Ministry of Power made a presentation highlighting status of key financial and operational parameters of member States.

    The contours of the Action plan identifying the ways to reduce the outstanding debts and losses of the Distribution Utilities and the means to bring them into profits, were discussed in detail.

    State of Gujarat, as a special invitee, shared the best practices adopted and their journey toward making their DISCOMs profitable.

    The member States actively participated in the meeting and presented the overview of State DISCOMs. They gave valuable suggestions for improving the financial condition of DISCOMs. State of Maharashtra, Tamilnadu, Uttar Pradesh, Andhra Pradesh, and Rajasthan, made presentations covering status, reforms undertaken, best practices and way forward for the GoM.

    PRAYAS group made a presentation highlighting reforms that may be undertaken for having a financially viable distribution sector.

    The Group of Ministers reiterated its commitment and expressed resolve to take necessary measures for improving the financial viability of DISCOMs.

    In his closing remarks, Hon’ble Union Minister of State mentioned that the inputs/ suggestions provided by the States would be helpful in shaping the policies and further course of action and urged the member States to work upon the action points that have emerged during the meeting.

    It was also unanimously decided to have 3rd meeting of GoM in Uttar Pradesh in the month of March.

    *****

    JN / SK 

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  • MIL-OSI Asia-Pac: Exclusive Masterclass Series for Filmmakers & Animators: Ministry of Information & Broadcasting Partners with Leading Creative Studio

    Source: Government of India

    Exclusive Masterclass Series for Filmmakers & Animators: Ministry of Information & Broadcasting Partners with Leading Creative Studio

    Animation Filmmakers Competition (AFC): A Gateway to Global Recognition, Mentorship & Funding Opportunities

    Leading Industry Experts Host Exclusive Masterclasses for Filmmakers & Animators

    Posted On: 27 FEB 2025 6:29PM by PIB Mumbai

    Mumbai, 27th February 2025

    The Ministry of Information & Broadcasting (MIB) and Dancing Atoms (a creative studio based in LA & India) are bringing a special masterclass series as part of the World Audio Visual & Entertainment Summit (WAVES) – Animation Filmmakers Competition (AFC). Winners will get an opportunity to gain global recognition, mentorship from top professionals, and opportunities for funding & distribution.

    AFC is open to independent creators, students, and studios to showcase their animated short films. This series features top industry experts sharing insights on screenplay writing, film design, producing, storytelling, animation, and international markets.

    Masterclass Schedule & Details of Upcoming Sessions:

    1. March 3 – Producing Blockbuster Films
      Speaker: Shobu Yarlagadda (Producer, Baahubali series)

    March 4 – Producing for Global Audiences
    Speaker: Guneet Monga (Oscar-winning Producer)

    March 5 (TBC) – Character Animation & World-Building
    Speaker: Arnau Olle Lopez (Animation Expert)

    March 6 – Storytelling Across Mediums
    Speaker: Anu Singh Choudhary (Screenwriter & Journalist)

    Earlier, two masterclass sessions were conducted on 26th and 27th February. On February 26, Farrukh Dhondy, writer and screenplay expert, led a session on Screenwriting & Trailers, offering insights into storytelling, screenwriting, and the business of writing. On February 27, Rupali Gatti, a production designer and visual artist, conducted a session on Film Design & Visual Development, providing practical insights into crafting immersive visual worlds for animation and live-action projects.

    Networking and Project Submissions

    WAVES also encourages Indian creators to submit their projects to Waves Bazar, a global marketplace showcasing India’s finest creative talent. This initiative connects Indian content with international buyers, fostering networking, collaboration, and global opportunities. For more details, contact waves@dancingatoms.com

    About WAVES

    The first World Audio Visual & Entertainment Summit (WAVES), a milestone event for the Media & Entertainment (M&E) sector, will be hosted by the Government of India in Mumbai, Maharashtra, from May 1 to 4, 2025.

    Whether you’re an industry professional, investor, creator, or innovator, the Summit offers the ultimate global platform to connect, collaborate, innovate and contribute to the M&E landscape.

    WAVES is set to magnify India’s creative strength, amplifying its position as a hub for content creation, intellectual property, and technological innovation. Industries and sectors in focus include Broadcasting, Print Media, Television, Radio, Films, Animation, Visual Effects, Gaming, Comics, Sound and Music, Advertising, Digital Media, Social Media Platforms, Generative AI, Augmented Reality (AR), Virtual Reality (VR), and Extended Reality (XR).

    Have questions? Find answers here  

    Come, Sail with us! Register for WAVES now (Coming soon!).

    Dhanlaxmi/Preeti

    Follow us on social media: @PIBMumbai     /PIBMumbai     /pibmumbai   pibmumbai[at]gmail[dot]com   /PIBMumbai     /pibmumbai

     

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  • MIL-OSI Asia-Pac: Ministry of Mines will Launch the 1st Tranche of Auction of Exploration License Soon: Union Minister G Kishan Reddy

    Source: Government of India

    Ministry of Mines will Launch the 1st Tranche of Auction of Exploration License Soon: Union Minister G Kishan Reddy

    Jammu & Kashmir, Kerala and Assam will join the Mineral Auction Regime Soon: Mines Minister

    Posted On: 27 FEB 2025 6:25PM by PIB Delhi

    The Ministry of Mines will launch the 1st Tranche auction of Exploration License blocks in March 2025, said Union Minister of Coal and Mines Shri G Kishan Reddy today. Speaking at a press conference held in New Delhi, minister informed that the provision of grant of Exploration License for critical and deep-seated minerals through auction was made through an amendment in the MMDR Act in 2023. Shri Reddy also said that Assam, Jammu & Kashmir and Kerala will also join the mineral auction regime soon, expanding the mineral auction map of India to 17 states. The Union Minister highlighted several key achievements and upcoming initiatives aimed at strengthening the mining ecosystem in the country.

    Expanding Exploration Activities

    • Geological Survey of India (GSI): GSI undertook 438 exploration projects in field season 2024-25, including 195 critical mineral projects, a significant increase from 360 projects (including 127 critical mineral projects) of the previous field season, 2023-24. Advanced technologies such as heliborne geophysical surveys, AI/ML tools, and drone technologies have been deployed to accelerate data acquisition and mineral discovery. In the field season 2025-26, GSI have taken up 450 exploration projects, including 227 critical mineral projects.
    • Mineral Exploration Corporation Limited (MECL): Exploratory drilling by MECL increased by 35%, significantly enhancing operational efficiency. Additionally, 33 geological reports were handed over in 2024, strengthening the National Mineral Inventory.
    • National Mineral Exploration Trust (NMET): 146 exploration and procurement projects worth ₹712 crore were approved during 1st January 2024 to 31st January 2025. Innovative schemes, including partial reimbursement of exploration expenses and funding for private exploration agencies, have been introduced to boost mineral exploration.

    Enhancing Private Sector Participation & Policy Reforms

    • 12 new Notified Private Exploration Agencies (NPEAs) were added in 2024, bringing the total to 28, further encouraging private sector participation.
    • Guidelines for exploration in border areas were relaxed, removing restrictions beyond 20 km from the border and streamlining the process within 20 km in coordination with the Ministry of Defence.

    Strengthening Technology & Data-Driven Decision Making

    • The Geological Survey of India is setting up an AI-enabled Data Processing Centre in Bengaluru to enhance mineral targeting through AI/ML. Complementing this, the Ministry of Mines organized the Mineral Exploration Hackathon in July 2024 to promote emerging technologies for geophysical data analysis and integrating multiple exploration datasets.
    • Mining Tenement System (MTS): A dedicated module for average sale price based on real-time price data was launched on 22nd January, 2024. Further, two new modules – Final Mine Closure Plan module and Exploration License/ Composite License/ Prospecting License module of MTS were launch

    Strategic Initiatives for Critical Minerals

    • The National Critical Mineral Mission (NCMM) was approved with an expenditure of ₹16,300 crore and an expected investment of ₹18,000 crore, focusing on areas including domestic production, recycling, overseas acquisitions, and R&D.
    • A new Tailings Policy will be introduced to recover critical minerals such as Gallium, Tellurium, and Selenium from the overburden dumps & tailings ensuring resource optimization.

    Expanding the Mining Sector Across States

    • Since 2024, 335 mineral blocks have been put up for auction, with 106 successfully auctioned. First-time auctions were conducted in Telangana, Bihar, and Arunachal Pradesh, expanding India’s mineral auction landscape to 14 states. Assam has also notified blocks for auction, with Jammu & Kashmir and Kerala expected to join soon.
    • A dedicated Project Management Unit (PMU) has been set up to expedite the operationalization of auctioned mines, ensuring smoother execution and faster mineral production. The dedicated PMU with 4 professionals in Delhi and 8 in different States will support expediting operationalization of mineral blocks by monitoring progress, identifying bottlenecks, and facilitating coordination among various stakeholders.

    Sustainable Mining & State-Level Performance Index

    • A State Mining Index will be introduced in 2025 to evaluate states on parameters such as regulatory environment, technical expertise, and sustainability practices. The State Mining Index is expected to be released in the 2nd quarter of 2025.
    • The National Mining Ministers’ Conference, held in Bhubaneswar in January 2025, facilitated discussions on auction performance, regulatory frameworks, and state best practices.

    Commemorating 175 Years of GSI

    • A year-long celebration from March 2025 to March 2026 will mark the 175th anniversary of the Geological Survey of India, featuring international and national seminars, outreach programs, and cultural events.

    The Ministry of Mines remains committed to fostering a robust and sustainable mining sector through continuous innovation, policy reforms, and collaborative engagement with industry stakeholders. These initiatives are set to enhance India’s mineral security, boost economic growth, and position the country as a global leader in mineral exploration and mining.

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    Shuhaib T

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  • MIL-OSI Asia-Pac: India’s Gaming Revolution Goes Global: 20 finalists of Bharat Tech Triumph Program Season 3 to participate in WAVES Summit

    Source: Government of India

    India’s Gaming Revolution Goes Global: 20 finalists of Bharat Tech Triumph Program Season 3 to participate in WAVES Summit

    Groundbreaking Games and Indigenous Gaming IPs to be Presented before a Global Audience of Investors, Publishers and Industry Pioneers during May 1-4, 2025

    Posted On: 27 FEB 2025 6:19PM by PIB Mumbai

    : Mumbai, 27 February 2025

     

    Twenty winning game developers were declared at the end of the Grand Finale of third edition of Bharat Tech Triumph Program (BTTP) on Wednesday (February 26, 2025). The winners will now represent India at GDC 2025 (March 17-21, San Francisco), Start-Up Mahakumbh (April 3-5, India), and the World Audio Visual Entertainment Summit (WAVES) (May 1-4, India), showcasing their groundbreaking games and indigenous gaming IPs to a global audience of investors, publishers, and industry pioneers.

    BTTP is organized in collaboration with the Ministry of Information & Broadcasting (MIB), Government of India, and the Department for Promotion of Industry and Internal Trade (DPIIT), under Ministry of Commerce and Industry, Government of India, for championing India’s game development talent. It is a flagship initiative of Interactive Entertainment and Innovation Council (IEIC) and WinZO Games.

    The Tech Triumph Program’s Third Edition: A Gateway to Global and National Recognition

    Over three Editions, BTTP has witnessed participation from over 1500 of India’s best game developers and students, making it the definitive platform for fostering innovation and entrepreneurship for Made in India for the World technology & IP. This Edition is the most expansive yet, both in terms of participation and in unlocking market access and export opportunities. With an unprecedented pan-India reach, Edition 3 of the BTTP drew diverse participation from over 1000 gaming studios, indie developers, students from top IIT & IIMs, and tech startups across PC, mobile, console, and immersive platforms. For more information, visit www.thetechtriumph.com

    Winning games for Season 3 were evaluated by a jury of stalwarts from India’s top investors and business people, including Dr. Mukesh Aghi (CEO and President, US-India Strategic Partnership Forum), Padma Shri Prashanth Prakash (Founding Partner, Accel Partners), and Archana Jahagirdar (Founder and Managing Partner, Rukam Capital), Shri Sanjiv, Joint Secretary, DPIIT, and Rajesh Raju, Managing Director, Kalaari Capital.

    Find the list of winners from Tech Triumph Program (Bharat Edition) Season 3 here.

    India’s gaming sector is at an inflection point for innovation, growth, and export of technology and IP.

    The growing footprint of the BTTP comes at a critical juncture in the Indian gaming industry, which is witnessing exponential growth. As per a US-India Strategic Partnership Forum (USISPF) report, the Indian gaming opportunity currently stands at ~ USD 4 bn and is poised to breach the market size of USD 60 billion by 2034. BTTP is a direct response to this opportunity, designed to position India as a global leader in interactive entertainment, gaming technology, and indigenous IP creation. The initiative is aligned with Prime Minister Shri Narendra Modi’s vision of “Create in India for the World”, reinforcing his call for Indian creators to seize opportunities in gaming, AVGC (Animation, Visual effects, Gaming, and Comics), and digital storytelling. A programmatic intervention such as BTTP exemplifies the PM’s vision, aspirations, and talent of Indian game developers, and the potential to become a USD 60 billion global gaming market. It is the assimilation of the sector’s collective aspirations.

    The Joint Secretary, Ministry of Information and Broadcasting, Shri C Senthil Rajan said, “India’s AVGC-XR sector, currently employing around 2.6 lakh professionals, is set to expand significantly, with projections estimating a workforce of 23 lakh by 2032. Indian gaming professionals are already contributing to some of the most successful global titles, strengthening India’s reputation as a hub for creativity and technological innovation”. He further informed that the Ministry of Information & Broadcasting (MIB), which is playing a crucial role in shaping the future of India’s AVGC sector, has recognized its potential to drive economic growth and job creation and has launched strategic initiatives like the WAVES and the National Center of Excellence of AVGC-XR, which aims to position India as a global AVGC powerhouse. Through programs like the Create in India Challenge and the Tech Triumph Program, WAVES fosters collaboration between industry and academia, encourages original content creation, and facilitates international partnerships, he added.

    About WAVES 2025:

    The first World Audio Visual & Entertainment Summit (WAVES), a milestone event for the Media & Entertainment (M&E) sector, will be hosted by the Government of India in Mumbai, Maharashtra, from May 1 to 4, 2025.

    Whether you’re an industry professional, investor, creator, or innovator, the Summit offers the ultimate global platform to connect, collaborate, innovate and contribute to the M&E landscape.

    WAVES is set to magnify India’s creative strength, amplifying its position as a hub for content creation, intellectual property, and technological innovation. Industries and sectors in focus include Broadcasting, Print Media, Television, Radio, Films, Animation, Visual Effects, Gaming, Comics, Sound and Music, Advertising, Digital Media, Social Media Platforms, Generative AI, Augmented Reality (AR), Virtual Reality (VR), and Extended Reality (XR).

    Have questions? Find answers here 

    Come, Sail with us! Register for WAVES now (Coming soon!).

    WAVES 2025/ Nikita Joshi/Sriyanka Chatterjee/Preeti 

     

    Follow us on social media: @PIBMumbai     /PIBMumbai     /pibmumbai   pibmumbai[at]gmail[dot]com   /PIBMumbai     /pibmumbai

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  • MIL-OSI USA: New 4D Brain Map reveals potential early warning signs of multiple sclerosis

    Source: US Department of Health and Human Services – 2

    News Release
    Thursday, February 27, 2025

    NIH study reveals key players underlying disease onset and repair.
    Using an animal model of multiple sclerosis (MS), researchers at the National Institutes of Health (NIH) have created a four-dimensional brain map that reveals how lesions similar to those seen in human MS form. These findings, published in Science, provide a window into the early disease state and could help identify potential targets for MS treatments and brain tissue repair.
    The researchers, led by postdoctoral fellow Jing-Ping Lin, Ph.D., and senior investigator Daniel S. Reich, M.D., Ph.D., both at NIH’s National Institute of Neurological Disorders and Stroke (NINDS), combined repeated MRI imaging with brain-tissue analysis, including gene expression, to track the onset and development of MS-like lesions. They uncovered a new MRI signature that can help detect brain regions at risk for damage weeks before any visible lesions occur. They also identified “microenvironments” within affected brain tissue based on observed patterns of neural function, inflammation, immune and support cell responses, gene expression, and levels of damage and repair.
    “Identifying the early events that occur after inflammation and teasing apart which are reparative versus which are damaging, can potentially help us identify MS disease activity sooner and develop treatments to slow or stop its progression,” said Dr. Reich.   
    MS is caused by the body’s immune system attacking the protective covering of nerve fibers, called myelin. This leads to inflammation, loss of myelin, and formation of “lesions” or “plaques” within the brain tissue. Most of what is known about MS progression has come from analysis of postmortem human brain tissue, usually obtained decades after the initial onset of disease. This means missing early changes that occurred prior to the onset of symptoms.
    To mimic the conditions of the human brain, the researchers opted not to use a mouse model for MS, instead advancing a model that uses the marmoset, a nonhuman primate. Compared to mouse brains, marmoset and human brains have a higher ratio of white matter (the “wires” of the brain) to gray matter (neuronal cell bodies). The marmoset model creates multiple lesions that closely resemble those seen in human MS and that can be tracked in real time using MRI imaging. Because these lesions can be induced experimentally, the model offers a look at the earliest stages of inflammation and immune responses that lead to MS-like demyelination.
    One key player identified was a specific type of astrocyte, one of the support cell types in the brain, that turns on a gene called SERPINE1 or plasminogen activator inhibitor-1 (PAI1). They found SERPINE1-expressing astrocytes in vulnerable brain borders before visible damage occurs, clustering near blood vessels and the fluid-filled ventricles of the brain and signaling future areas of lesion development. These astrocytes also appeared to influence the behavior of other cells near the lesion area, including the ability of immune cells to enter the brain and contribute to inflammation, as well as the precursor cells involved in myelin repair.
    Given that SERPINE1-expressing astrocytes accumulated at the edges of growing lesions, where damage happens but healing also begins, their potential dual role in coordinating signals that could lead to either tissue repair or further damage was an unexpected wrinkle that will require further study. It’s possible that the earliest responses could be a part of a protective mechanism that becomes overwhelmed as the injury progresses. It’s also possible that the same mechanism could itself become disease-causing.    
    “If one imagines a fort under siege, initially the walls might hold off the attack,” said Dr. Reich. “But if those walls are breached, all the defenses inside can be turned against the fort itself.”
    These findings may also have implications for brain injuries beyond what is seen in MS. While there are different types of focal brain injuries, including traumatic brain injury, stroke, inflammation, and infection, there is a finite number of ways the tissue can react to injury. In fact, many of the reactions seen here to inflammation, stress, and tissue damage are likely to be common across injury types, and the brain map created in this study can act as a resource to allow comparisons to be made in a more human-like context.
    The scientific teams are building a new model of a different autoimmune condition affecting brain borders. They are also looking to expand their data set to include aged animals, which could help improve our understanding of progressive MS, a disease state with a significant and unmet therapeutic need.
    This study was supported in part by the Intramural Research Program at the NIH with additional support from the Dr. Miriam and Sheldon G. Adelson Medical Research Foundation and the National Multiple Sclerosis Society.
    About the National Institute of Neurological Disorders and Stroke (NINDS): NINDS is the nation’s leading funder of research on the brain and nervous system. The mission of NINDS is to seek fundamental knowledge about the brain and nervous system and to use that knowledge to reduce the burden of neurological disease.
    About the National Institutes of Health (NIH): NIH, the nation’s medical research agency, includes 27 Institutes and Centers and is a component of the U.S. Department of Health and Human Services. NIH is the primary federal agency conducting and supporting basic, clinical, and translational medical research, and is investigating the causes, treatments, and cures for both common and rare diseases. For more information about NIH and its programs, visit www.nih.gov.
    NIH…Turning Discovery Into Health®

    Article
    Lin J-P et al. 4D marmoset brain map reveals MRI and molecular signatures for onset of multiple sclerosis-like lesions. Science. February 28, 2025. DOI: 10.1126/science.adp6325

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