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Category: Politics

  • MIL-OSI USA: Labor Caucus Members Blast First Trump Administration’s First 100 Days, Join Labor Union Leaders to talk about Impacts on Working Families

    Source: United States House of Representatives – Congressman Glenn Ivey – Maryland (4th District)

    Congressman Glenn Ivey, Rep. Debbie Dingell and Rep. Steven Horsford and labor leaders held a press conference in front of the Capitol today.  They talked about the first 100 days of the Trump Administration and its impact on working families. 

    U.S. Rep. Debbie Dingell said:

    “As we mark the first 100 days of the Trump presidency, we are facing an unprecedented attack on the federal workforce. Federal employees do some of the most critical work that, frankly, too many people take for granted. They are nurses, food inspectors, doctors, transportation safety workers, law enforcement officers, scientists, VA workers, and beyond. Their work keeps us safe and keeps our daily lives running smoothly. I’ve heard countless stories from my constituents who are frustrated and scared of being a federal employee right now. An attack on workers’ rights anywhere is an attack on workers’ rights everywhere. That’s why we are standing in strong solidarity with federal employees and will not stop fighting to protect workers’ rights.”

    U.S. Rep. Steven Horsford said:

    “One hundred days into this presidency, working Nevadans can’t afford this president’s economic chaos. Tourism is buckling with consumer confidence at a 50-year low and international travel down 20 percent – at the same time, we’re being tariff-taxed on everything from food to lumber to toilet paper. Serving billionaires at the expense of working people is the opposite of leadership, which is exactly why Trump’s presidency is failing.”

    U.S. Rep. Glenn Ivey said:

    “President Trump said he would support working people.  Instead, he’s spent 100 days finding new ways to lower wages and make workplaces less safe.  He’s slashed worker safety protections, stripped collective bargaining rights, and crippled the National Labor Relations Board.  Workers deserve better and that’s why my colleagues in the Labor Caucus and I are fighting back.”

    Democracy Forward President Skye Perryman said:

    “Our nation’s civil servants are the backbone of our democracy – and they’re under attack for doing their jobs.  Democracy Forward is committed to working alongside partners to defend these workers and the public institutions they serve.”

    National Federation of Federal Employees President, Randy Erwin said:

    “President Trump’s first 100 days in office have been a disaster for federal workers and the American people. Hundreds of thousands of dedicated civil servants have been fired or intimidated into resignation, diminishing the critical services that communities across the country depend on every day. It is shameful that the President has celebrated firing veterans and weakening their healthcare, the erosion of public safety, and undermining our national security.”

    American Federation of Government Employees, District 14 National VP Ottis Johnson said:

    “AFGE is proud to stand shoulder to shoulder with the House Labor Caucus to fight for the collective bargaining rights of more than one million federal employees who are being retaliated against for standing up for their rights. We are calling on all members of Congress to stand up for federal workers by cosponsoring the Protect America’s Workforce Act and defeating the GOP leadership’s punitive reconciliation package.”

    International Federation of Professional and Technical Engineers, President Matthew Biggs said:

    “This Administration’s attacks on federal workers, on their civil service protections and union rights, and on their careers and livelihoods hurt all Americans and the services and government functions Americans count on in every part of the country. IFPTE members who work for the Navy, Army Corps of Engineers, NASA, EPA, DOJ, SSA, NOAA, and so many other agencies chose their careers in the federal government because they are invested in and dedicated to the work they do on behalf of the American public. The Trump Administration that keeps finding new and illegal ways to harass, exhaust, and disrespect the federal workforce, but our union and our federal membership is working with labor, legal and civil society partners, and with allies in Congress to protecting our democracy, our nonpartisan merit-based civil service, and our commitment to all Americans.

    Additional Photos of press conference available upon request.

     

    ###

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: PREPARED REMARKS: Sanders Confronts Congress’ Silence on Gaza

    US Senate News:

    Source: United States Senator for Vermont – Bernie Sanders
    WASHINGTON, May 8 – Sen. Bernie Sanders (I-Vt.) today gave remarks on the Senate floor marking 68 days since Israel allowed humanitarian aid into Gaza and calling on the U.S. to end its complicity in the destruction of the Palestinian people.
    Sanders’ remarks, as prepared for delivery, are below and can be watched HERE:  
    M. President, I want to say a few words about an issue that people all over the world are thinking about – are appalled by – but for some strange reason gets very little discussion here in the nation’s capital or in the halls of Congress. And that is the horrific humanitarian disaster that is unfolding in Gaza. 
    Today marks 68 days and counting since ANY humanitarian aid was allowed into Gaza. For more than nine weeks, Israel has blocked all supplies: no food, no water, no medicine, and no fuel. 
    Hundreds of truckloads of lifesaving supplies are waiting to enter Gaza, sitting just across the border, but are denied entry by Israeli authorities. 
    There is no ambiguity here: Netanyahu’s extremist government talks openly about using humanitarian aid as a weapon. Defense Minister Israel Katz said “Israel’s policy is clear: no humanitarian aid will enter Gaza, and blocking this aid is one of the main pressure levers.” 
    M. President, starving children to death as a weapon of war is a clear violation of the Geneva Convention, the Foreign Assistance Act, and basic human decency. Civilized people do not starve children to death. 
    What is going on in Gaza is a war crime, committed openly and in broad daylight, and continuing every single day. 
    M. President, there are 2.2 million people who live in Gaza. Today, these people are trapped. The borders are sealed. And Israel has pushed the population into an ever-smaller area. 
    With Israel having cut off all aid, what we are seeing now is a slow, brutal process of mass starvation and death by the denial of basic necessities. This is methodical, it is intentional, it is the stated policy of the Netanyahu government. 
    Without fuel, there is no ability to pump fresh water, leaving people increasingly desperate, unable to find clean water to drink, wash with, or cook properly. Disease is once again spreading in Gaza. 
    Most of the bakeries in Gaza have now shut down, having run out of fuel and flour. The few remaining community kitchens are also shutting down. Most people are now surviving on scarce canned goods, often a single can of beans or some lentils, shared between a family once a day. 
    The UN reports that more than 2 million people out of a population of 2.2 million face severe food shortages. 
    The starvation hits children hardest. At least 65,000 children now show symptoms of malnutrition, and dozens have already starved to death. 
    Malnutrition rates increased 80 percent in March, the last month for which data is available, after Netanyahu began the siege, but the situation has severely deteriorated since then. 
    UNICEF reported yesterday that “the situation is getting worse every day,” and that they are treating about 10,000 children for severe malnutrition. 
    Without adequate nutrition or access to clean water, many children will die of easily preventable diseases, killed by something as simple as diarrhea. 
    For the tens of thousands of injured people in Gaza, particularly the countless burn victims from Israeli bombing, their wounds cannot heal without adequate food and clean water. Left to fester, infections will kill many who should have survived. 
    With no infant formula, and with malnourished mothers unable to breastfeed, many infants are also at severe risk of death. Those that survive will bear the scars of their suffering for the rest of their lives. 
    And with little medicine available, easily treatable illnesses and chronic diseases like diabetes or heart disease can be a death sentence in Gaza. 
    M. President, what is going on there is not some terrible earthquake, it is not a hurricane, it is not a storm. What is going on in Gaza today is a manmade nightmare. And nothing can justify this. 
    What is happening in Gaza will be a permanent stain on the world’s collective conscience. History will never forget that we allowed this to happen and, for us here in the United States, that we, in fact, enabled this atrocity. 
    There is no doubt that Hamas, a terrorist organization, began this terrible war with its barbaric October 7, 2023, attack on Israel, which killed 1,200 innocent people and took 250 hostages. 
    The International Criminal Court was right to indict Yahya Sinwar and other leaders of Hamas as war criminals for those atrocities. 
    Clearly, Israel had the right to defend itself against Hamas. 
    But Netanyahu’s extremist government has not just waged war against Hamas. Instead, they have waged an all-out barbaric war of annihilation against the Palestinian people. 
    They have intentionally made life unlivable in Gaza.
    Israel, up to now, has killed more than 52,000 people and injured more than 118,000 – 60 percent of whom are women, children, and the elderly. More than 15,000 children have been killed. 
    M. President, Israel’s indiscriminate bombardment has damaged or destroyed two-thirds of all structures in Gaza, including 92 percent of the housing units. Most of the population now is living in tents or other makeshift structures. 
    M. President, the health care system in Gaza has been essentially destroyed. Most of the territory’s hospitals and primary health care facilities have been bombed. 
    Gaza’s civilian infrastructure has been totally devastated, including almost 90 percent of water and sanitation facilities. Most of the roads have been destroyed. 
    Gaza’s education system has been obliterated. Hundreds of schools have been bombed, as has every single one of Gaza’s 12 universities. 
    And there has been no electricity in Gaza for 18 months. 
    M. President, given this reality, nobody should have any doubts that Netanyahu is a war criminal. Just like his counterparts in Hamas, he has a massive amount of innocent blood on his hands.
    And now Netanyahu and his extremist ministers have a new plan: to indefinitely reoccupy all of Gaza, flatten the few buildings that are still standing, and force the entire population of 2.2 million people into a single tiny area, where hired U.S. security contractors will distribute rations to the survivors. 
    Israeli officials are quite open about the goal here: to force Palestinians to leave for other countries “in line with President Trump’s vision for Gaza,” as one Israeli official said this week. 
    Israeli Finance Minister Smotrich said this week that “Gaza will be entirely destroyed,” and that its population will “leave in great numbers.” 
    For many in Netanyahu’s extremist government, this has been the plan all along: it’s called ethnic cleansing. 
    This would be a terrible tragedy, no matter where or why it was happening. But what makes this tragedy so much worse for us in America is that it is our government, the United States government, that is absolutely complicit in creating and sustaining this humanitarian disaster. 
    Last year alone, the United States provided $18 billion in military aid to Israel. This year, the Trump administration has approved $12 billion more in bombs and weapons. 
    And for months, Trump has offered blanket support for Netanyahu. More than that, he has repeatedly said that the United States will actually take over Gaza after the war, that the Palestinians will be pushed out, and that the U.S. will redevelop it into what Trump calls “the Riviera of the Middle East,” a playground for billionaires. 
    M. President, this war has killed or injured more than 170,000 people in Gaza. It has cost American taxpayers well over $20 billion in the last year. And right now, as we speak, thousands of children are starving to death. And the U.S. president is actively encouraging the ethnic cleansing of over 2 million people. 
    Given that reality, one might think that there would be a vigorous discussion right here in the Senate: do we really want to spend billions of taxpayer dollars starving children in Gaza. You tell me why spending billions of dollars to support Netanyahu’s war and starving children in Gaza is a good idea. I’d love to hear it. 
    But, M. President, we are not having that debate. And let me suggest to you why I think we are not having that debate.  
    That is because we have a corrupt campaign finance system that allows AIPAC to set the agenda here in Washington. 
    In the last election cycle, AIPAC’s PAC and Super PAC spent nearly $127 million combined.
    And the fact is that, if you are a member of Congress and you vote against Netanyahu’s war in Gaza, AIPAC is there to punish you with millions of dollars in advertisements to see that you’re defeated. 
    One might think that in a democracy there would be a vigorous debate on an issue of such consequence. But because of our corrupt campaign finance system, people are literally afraid to stand up. If they do, suddenly you will have all kinds of ads coming in to your district to defeat you.
    Sadly, I must confess, that this political corruption works. Many of my colleagues will privately express their horror at Netanyahu’s war crimes, but will do or say very little publicly about it. 
    M. President, history will not forgive our complicity in this nightmare. The time is long overdue for us to end our support for Netanyahu’s destruction of the Palestinian people. We must not put another nickel into Netanyahu’s war machine. We must demand an immediate ceasefire, a surge in humanitarian aid, the release of the hostages, and the rebuilding of Gaza – not for billionaires to enjoy their Riviera there – but rebuilding Gaza for the Palestinian people.

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Reed Rebukes Trump’s Misuse of Military in Immigration Enforcement

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed

    WASHINGTON, DC – Over the past three months, the Trump Administration has surged military personnel to the Southwest Border, Guantanamo Bay, and the U.S. southern coasts. The Administration has spent nearly $500 billion and engaged tens of thousands of troops, Navy warships, armored combat vehicles, and military aircraft in its immigration enforcement operation.

    On Thursday, U.S. Senator Jack Reed (D-RI), Ranking Member of the Senate Armed Services Committee, spoke on the Senate floor to address the unprecedented and likely illegal use of the U.S. military in domestic law enforcement. 

    A video of Senator Reed’s remarks may be viewed here.

    A copy of Senator Reed’s letter to the Department of Defense Office of Inspector General may be viewed here.

    A transcript of Senator Reed’s floor speech follows:

    REED:  Mr. President, I rise to address President Trump’s dangerous and inappropriate use of the U.S. military to carry out his immigration enforcement campaign. 

    Before I discuss the Trump Administration spending nearly half a billion dollars and sending tens of thousands of troops, ships, combat vehicles, and aircraft away from their real missions, I want to make clear that border security is a priority.  I do not support open borders.  And I believe that those who enter the United States and break our laws should be subject to deportation in accordance with the law and due process.  I have voted time and time again for billions of dollars of increased support for border agents, detection technology, and physical barriers where it makes sense. 

    Mr. President, it is no secret that our borders have been under pressure for more than a decade because of a broken immigration system that Congressional Republicans have consistently refused to help fix.  We have considered bipartisan immigration reform bills in 2006, in 2007, in 2013, and in 2024, all of which were shut down by Republicans.  The mess that we have today rests largely on their decision to put political advantage above real progress.

    Now, President Trump is ignoring Congress, ignoring the law, ignoring the Courts, and ignoring the Constitution in order to implement an immigration policy that fails to respect due process, adversely impacts our innovation economy, and to the point of my remarks, degrades our military.  In the name of his anti-immigrant efforts, President Trump is using the U.S. military to conduct operations on American soil that it has neither the training or authority to carry out.  Our troops, who are already stretched thin for time and resources, are now burning time, assets, morale, and readiness for these overblown operations.

    The President has declared an emergency at the border to justify using the military for civilian law enforcement.  This, despite border encounters currently at the lowest level since August of 2020.  Over the past 12 months, since President Biden’s executive actions last June, there has been a continued, significant decrease in unlawful border crossings – including a?more than 60 percent decrease in encounters?from May 2024 to December 2024. 

    In short, all along the Southern Border we have seen a dramatic drop in illegal crossings and migrant encounters, well before President Trump took office.  A national emergency?  It seems not. 

    We already have an entire federal agency to protect our borders and address illegal immigration: the Department of Homeland Security.  DHS includes Customs and Border Protection, Immigration and Customs Enforcement, and other law enforcement groups.  I have voted consistently to give these agencies additional resources to carry out their missions.  But immigration enforcement is not, and must not become, a function of the Department of Defense. 

    Our military has long provided technical and logistical support to DHS at the border, but always and exclusively in a supporting role, drawing a clear line between military law enforcement authorities.  Indeed, since the Reconstruction Era, U.S. presidents have been prohibited from using the military in civilian law enforcement by a law known as the Posse Comitatus Act.  This law has kept the commander-in-chief from wielding the military as a domestic political weapon, and it continues to provide an important check on the President’s ability to use the military domestically against American citizens.

    I understand American citizens asking if it matters which Department enforces immigration, as long as the job gets done.  Well, there are plenty of reasons to be concerned by the President’s current approach, even if one agrees with him politically.

    Most alarmingly, President Trump is taking real steps to militarize immigration enforcement.  Once he uses the military for this reason, it will be easier for him to use it for other purposes.  And given the tenor of his public statements, it is a reasonable fear that he may someday order the use of the armed forces in American cities and against American citizens.

    Indeed, the Brennan Center – a law and public policy institution – recently analyzed President Trump’s military actions at the border and concluded, quote: “Using the military for border enforcement is a slippery slope.  If soldiers are allowed to take on domestic policing roles at the border, it may become easier to justify uses of the military in the U.S. interior in the future.  Our nation’s founders warned against the dangers of an army turned inward, which can all too easily be turned into an instrument of tyranny.”

    Beyond these concerns, there are real, immediate consequences for our troops, which we are seeing right now.

    Readiness

    One of the military’s top priorities is readiness.  America faces real, growing threats from China, Russia, Iran, and other adversaries, and the Department of Defense needs to be laser focused on preparing troops to defend our interests abroad.

    It is difficult to explain the border missions as anything but a distraction from readiness.  We should acknowledge the jobs that our troops are actually doing there.  In the past, up to 2,000 National Guard and Reserve troops would rotate to the border each year to assist DHS and Customs and Border Patrol with basic monitoring, logistics, and warehousing activities.  These missions were designed to be “behind the scenes” logistical support to free up Border Patrol agents from administrative duties and return them back to the field to conduct their core mission of immigration enforcement.

    Today, however, Trump has surged more than 12,000 active-duty troops to the border to carry out a variety of expanded missions that do not look anything like “behind the scenes” administrative support.  For example, one Marine battalion has been stringing miles and miles of barbed wire across the California mountains.  Multiple Army infantry companies are patrolling the Rio Grande riverbank on foot, rifles loaded.  Navy aircrews are flying P-8 Poseidons – the most advanced submarine hunting planes in the world – over the desert.  Two Navy destroyers are loitering off our East and West Coasts, looking for migrant boats in the water.  And at least one Army transportation unit is changing the oil and tires on Border Patrol trucks all day, every day. 

    In addition, the Administration has wasted massive amounts of defense dollars by flying migrants out of the country using military aircraft.  Often, they have had to return them to the United States mainland just days later.  According to U.S. Transportation Command, it costs at least $20,000 per flight hour to use a C-130 and $28,500 per flight hour to use a C-17.  In comparison, contracted ICE flights that regularly transport migrants inside of the U.S. cost only $8,500 per flight hour.  President Trump’s decision to use military aircraft instead of ICE aircraft to shuttle migrants across the globe—to as far away as India—is a gross misuse of taxpayer dollars and servicemembers’ time.

    Just yesterday, we learned that the White House wanted to fly migrants, on military aircraft, to Libya, which is one of the most dangerous, hostile locations on earth.  Human rights groups have called the conditions in Libya’s network of migrant detention centers “horrific” and “deplorable.”  The plan has been cancelled for now, but it is unconscionable for the Trump Administration to consider sending migrants to Libya and endangering our troops in the process.

    Further, the Department of Defense has informed Congress that the current surge in border missions—including troop deployments and military flights—could cost as much as $2 billion by the end of the fiscal year.  Secretary Hegseth has claimed that the border mission is so overwhelming that we will have to withdraw massive numbers of troops from Europe in order to meet the demand.  Incredibly, he has also claimed that the border missions will have “no impact” on our military readiness.

    However, we know that these border missions are harming military readiness.  Last month, when the NORTHCOM commander testified before the Armed Services Committee, I asked how his forces on the border mission are maintaining their required military training.  He testified that his troops are spending 5 days a week supporting Customs and Border Patrol and other agencies, and only 1 day a week training.  In other words, 20 percent – at most – of our servicemembers’ time is being spent training on their critical military tasks.

    In my personal engagements with commanders at all levels, they have made clear that readying their formations requires extensive time and training, as well as stability for families.  Border missions will not build these warfighting requirements.  Border missions will distract from training, drain resources, and undermine readiness.  The Government Accountability Office, or GAO, has assessed previous military support missions to DHS and found them to be detrimental to unit readiness.  Specifically, in its 2021 report, GAO found that, quote, “separating units in order to assign a portion of them to the Southwest Border mission was a consistent trend in degrading readiness ratings.”

    Guantanamo Bay

    In February, President Trump issued an unprecedented order to the Defense Department to begin transporting and detaining migrants at Guantanamo Bay, Cuba.  For decades, the U.S. Naval Station at Guantanamo Bay has housed a facility called the Migrant Operations Center that is used to temporarily house migrants who are saved at sea while traveling in unsafe vessels from Cuba, Haiti, or other nearby nations.  The facility is typically unoccupied and is kept in a low-level operational state until needed and, until February, it was run by private contractors.  The intended use for this center was never to house migrants flown from the United States to Guantanamo Bay. 

    Nonetheless, President Trump ordered the military to expand the Migrant Operations Center to accommodate up to 30,000 migrants who would be brought there from the United States.  Within weeks, approximately 1,000 active-duty troops were sent to Guantanamo to build tents for this massive number of migrants.  However, once built, the tents were found not to meet ICE standards and, to date, they have never been used and are now being dismantled.  The hundreds of troops sent down for the mission have had very little to do in the meantime. 

    Since February, around 500 individuals identified by the Administration as illegal migrants have been flown to Guantanamo Bay, and most have been detained for no more than two weeks.  Rather than being taken to the Migrant Operations Center, about half of these migrants have been held on the other side of the island at the detention facility that was built and used for law of war detainees – such as 9/11 terrorist Khalid Sheikh Mohammed.

    There are currently 15 law of war detainees remaining on Guantanamo Bay.  The facilities housing these detainees have deteriorated significantly in the 20 years since they were built, and the military personnel who guard these individuals also endure the same tough conditions in these dilapidated facilities.   Needless to say, these servicemembers have been stretched thin.  Last fall, it was a significant morale boost for them when the remaining law of war detainees were moved to a “newer” facility.  Naturally, it was a blow to morale when, just one month later, they were ordered back to the older, more decrepit facility to make way for migrants at the newer facility.

    While it is crystal clear that the military is in charge of the law of war detention center at Guantanamo Bay, it is not clear who is legally responsible for the migrants being held there.  Longstanding law dictates that U.S. Immigration and Customs Enforcement maintain “custody and control” of migrants, but in the detention center, the military maintains control.  This leads to questions about who is in charge and accountable.  When I have asked those questions, the answers have often been contradictory.  That’s disturbing.  

    To investigate these issues, I traveled to Guantanamo Bay in March with several colleagues, including Senators Shaheen, Peters, King, and Padilla. We conducted a firsthand examination of the missions underway there and met with military servicemembers, ICE officers, and DHS officials to fully understand the costs and military readiness impacts of these missions.  This trip raised many new questions and concerns. 

    I have grave doubts about the legality of removing migrants from the U.S. to Cuba, a foreign nation, and detaining them there.  There are at least a dozen open cases and court orders impacting the Guantanamo mission.  The detention center has only been used for law of war detainees, and it is reckless to equate migrants with international war criminals. 

    I was outraged by the scale of wastefulness that we found there.  It is obvious that Guantanamo Bay is an illogical location to detain migrants.  The staggering financial cost to fly these migrants out of the United States and detain them at Guantanamo Bay—a mission costing tens of millions of dollars a month—is an insult to American taxpayers.  President Trump could implement his immigration policies for a fraction of the cost by using existing ICE facilities in the U.S., but he is obsessed with the image of using Guantanamo, no matter the cost.

    I am also frustrated that my Senate colleagues and I had to fly to Cuba to get answers to the questions that Defense Secretary Hegseth and Homeland Security Secretary Noem have been ducking for months.  By avoiding questions, they are putting servicemembers and officers on the ground in the position of trying to make sense of contradictory and political orders without any guidance or support from the Pentagon or DHS headquarters.

    Domestic Law Enforcement

    Since coming into office, the Trump Administration has expanded the role of the military in immigration enforcement in other troubling ways.  The movement of migrants from the U.S. to Guantanamo Bay is unprecedented, and the buildup of 12,000 active duty troops at the Southern Border, including the Army’s 10th Mountain Division and 100 armored Stryker combat vehicles, has a huge impact on our military posture.  This is a larger force than we deployed to Afghanistan in 2002 and 2003.

    This Administration has purposely placed many of our military forces into the immigration debate in this country, and I fear it will also place them in legal and ethical risk.

    For example, on March 30th, a military flight traveled from Guantanamo Bay to El Salvador with foreign nationals on board, including seven Venezuelans.  To my understanding, not a single DHS official or civilian was on the flight, meaning that military personnel maintained both custody and control of the migrants, contrary to longstanding DOD policy and practice. 

    Here is an image of that plane unloading in El Salvador.  As you can see, the crew does not include any DHS officials or civilian law enforcement personnel – only uniformed troops, who are physically handing migrants to the Salvadoran police.

    This flight would clearly have been in violation of various immigration laws and policies, recent judicial orders, and the Posse Comitatus Act, as the military carried out a core law enforcement function of deportation without any DHS officials present.  After the fact, the Administration tried to explain itself by saying it used, quote, “counter-terrorism” authorities rather than law enforcement authorities.  I am not aware of any counter-terrorism authorities that would authorize such a flight. 

    Accordingly, last month I sent a letter to the Department of Defense Office of Inspector General asking that office to conduct an inquiry into the incident and any laws or Defense Department policies that may have been violated.  I expect the IG to exercise his independence in carrying out this inquiry, and I am disturbed that the Administration continues to put servicemembers in legal and physical jeopardy through these reckless orders.  Mr. President, I would submit that letter for the record.

    I am also concerned about the Trump Administration’s dubious creation of “National Defense Areas” along the Southern Border in recent weeks.  These National Defense Areas, first designated in New Mexico and later expanded into Texas, were created when the Department of Interior transferred land, including the Roosevelt Reservation—a 60-foot-wide strip along the border—to the Department of Defense.  So now, large swaths of the border are considered military installations.  The Administration has created these zones so that when a migrant crosses the border in those areas, prosecutors can charge them with both entering the U.S. illegally and trespassing on a military installation.  In effect, the National Defense Zones evade the long-standing protections of the Posse Comitatus Act by allowing military forces to act as de facto border police, detaining migrants until they can be transferred to Customs and Border Protection.  In the Administration’s telling, this approach permits military involvement in immigration control without invoking the Insurrection Act of 1807.

    This is both unprecedented and a legal fiction.  As the Brennan Center report found, quote: “No matter how the Trump administration frames these activities… they are civilian law enforcement functions.  He cannot turn them into military operations by misusing the language of war.  These civilian law enforcement activities are not “incidental” — they are the reason for creating the installation.”

    The Administration is also considering using military bases to detain thousands of migrants inside the United States.  Unlike in past emergencies, when military bases near the border were used to hold migrants during large surges, this administration is seeking to use installations deep within the country, including in New Jersey, Indiana, Delaware, California, and Virginia.  One could be forgiven for extrapolating that these bases are being selected to hold round-ups of migrants in major cities. 

    The President is not taking these military actions out of necessity; he is testing the boundaries of our legal system, and, in my view, violating them.  If left unchecked and unchallenged, he will go much, much further in employing the armed forces in to enforce domestic immigration laws, traditionally a civilian law enforcement function.

    For years, Mr. Trump has publicly expressed his desire to use U.S. military personnel for domestic law enforcement.  During the last campaign, he repeatedly claimed that, if elected, he would order the National Guard and active-duty military to carry out mass deportations of undocumented migrants.  He even said that he would deploy the military to conduct local law enforcement in cities, and that troops could shoot shoplifters leaving the scene of a crime.

    Trump’s defenders often say that he is joking or exaggerating when he makes such claims.  But we know these are not idle threats.  In his first 100 days in office, he has declared multiple national emergencies and invoked the Alien Enemies Act of 1798 to deport migrants without due process.  Indeed, he has even unapologetically deported U.S. citizens in violation of the Constitution.  We have all seen the chilling videos of masked and hooded ICE agents arresting civilians on the street – scenes we are accustomed to seeing on the nightly news in countries run by dictators.  The Administration is expanding its operation one step at a time, and President Trump’s deployment of forces to the border, the military deportation flights, and the establishment of National Defense Areas can be interpreted as setting the stage to invoke the Insurrection Act and order the military to carry out domestic law enforcement inside the country. 

    In fact, we have seen this situation before.  In June 2020, then-President Trump, infuriated by protesters in front of the White House and across the country, ordered his staff to prepare to invoke the Insurrection Act to allow him to deploy active-duty military forces to patrol the streets of DC and other cities.  Then-Defense Secretary Mark Esper and Chairman of the Joint Chiefs of Staff Mark Milley talked him out of it, but the President clearly views this as a serious option.

    Beyond the immorality of Trump’s desire to deploy the military domestically, to do so would simply be illegal.  As I mentioned, the doctrine of Posse Comitatus is sacred in our nation to separate the military from direct law enforcement responsibilities. 

    The use of National Guard or active-duty troops should be reserved only to those rare circumstances where civilian law enforcement has collapsed, and state leaders have specifically asked for presidential assistance.  Their deployment should never be at the sole discretion of a President, as Trump has demonstrated that such power begs abuse.

    Ultimately, U.S. military members are trained to engage the enemies of the United States abroad with deadly force, not to arrest migrants on the Southern Border or to deport them from U.S. cities.  The military has a sacred role in our country, but the public’s trust is easily lost, and a pillar of our society is cracked when the commander-in-chief uses the military recklessly. 

    Our constitutional system is fundamentally designed to separate military and civilian roles, reserving police powers for law enforcement agencies, and endowing the military with the superior weaponry and firepower necessary to fight and win the nations’ wars.  When we allow the military to be used in the routine exercise of the police power, the nation teeters on the brink of autocracy and military rule.  One need not be a student of history to see how easily this backsliding can occur.  It is all around us in the world today.

    Trump’s clear intent to use the U.S. military in potentially illegal and certainly inappropriate ways for his own political benefit is antithetical to the spirit of our American democracy. Such power is the hallmark of authoritarians around the world.

    President Trump and Secretary Hegseth must use common sense, follow the law, and immediately cease the military border deployments and deportation flights.  And my colleagues, particularly my colleagues in the majority, should demand the same and hold the Administration accountable for its actions.

    I yield the floor.

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Reed Denounces Trump’s Meme Coin Corruption Scheme & Backs Ban on Presidents, Lawmakers, and Their Families from Issuing Digital Assets

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed

    WASHINGTON, DC – In an effort to crack down on corruption and prevent the swindling of unsuspecting crypto users, U.S. Senator Jack Reed (D-RI) is sounding the alarm about corruption surrounding the Trump family’s cryptocurrency “meme coins” and stablecoins that President Donald Trump and First Lady Melania Trump launched in conjunction with taking office.  This week, Senator Reed helped introduce new legislation to prevent cryptocurrency-related corruption by elected officials at the highest levels of the federal government.

    Reed is teaming up with Senator Jeff Merkley (D-OR) and several colleagues in introducing the End Crypto Corruption Act.  This legislation would ban the President, Vice President, Senior Executive Branch Officials, Members of Congress, and their immediate families from financially benefiting from issuing, endorsing, or sponsoring crypto assets, such as meme coins and stablecoins.

    Just days before his second-term inauguration, President-elect Donald Trump launched the $TRUMP meme coin, which surged over 300 percent within hours of its release, reaching an alleged value of nearly $6 billion.  Two days later, first-lady-in-waiting Melania Trump launched her own coin: $MELANIA.  At least one large U.S. trading venue then began offering $TRUMP for sale to retail investors, when it was trading at $74.  This allowed insiders and early investors to cash out, dump their tokens on the unsuspecting public, cause the price to collapse, and leave retail investors holding the bag.  As a result, the Trump family and their cronies received millions of real dollars, while investors received a crypto coin in free fall.

    Since the $TRUMP coin was launched earlier this year, it has generated more than $320 million in fees for its creators, according to the blockchain analysis firm Chainalysis.  And just moments before Melania Trump publicly announced her cryptocurrency, two dozen digital wallets rapidly purchased large quantities of the token, netting a collective $99.6 million windfall, an investigation by the Financial Times revealed.

    So-called meme coins are a form of digital currency that tend to catch on thanks to viral trends, jokes, or celebrity endorsements. They are usually created to engage a community.  While most meme coins never take off, some do, and the most known, such as Dogecoin, which was started as a parody and touted by Elon Musk, has a supposed value of more than $25 billion.

    When President Trump’s meme coin lost 88 percent of its value earlier this year, the Trump family promoted a private meeting with President Trump for some of the meme coin’s top investors at a VIP dinner on May 22 at Trump National Golf Club followed by a special White House tour. 

    Chainalysis reports that 58 wallets have made over $10 million each from President Donald Trump’s meme coin, totaling $1.1 billion in profits.  Meanwhile, 764,000 wallets of mostly small holders have lost money on $TRUMP, according to the firm.

    Another example of the Trump family’s crypto entanglements is the Emirati venture firm MGX announcing it will use stablecoins issued by World Liberty Financial—the Trump family’s blockchain company—to pay for its recent $2 billion investment into the crypto exchange Binance.  MGX could have made their investments with real U.S. dollars, but instead chose to do so using Trump’s crypto dollar alternative.  According to experts, this deal could net the Trump family $80 million over a year.

    A stablecoin is any cryptocurrency designed to have a relatively stable price, typically through being pegged to a commodity or currency or having its supply regulated by an algorithm.

    The End Crypto Corruption Act directly addresses and curbs the Trump Administration’s ethically dubious actions regarding both meme coins and stablecoins.

    “Currently, people who wish to cultivate influence with the president can enrich him personally by buying cryptocurrency he owns or controls,” said Senator Merkley. “This is a profoundly corrupt scheme. It endangers our national security and erodes public trust in government. Let’s end this corruption immediately.”

    “If Donald Trump wants to become a crypto trader, he can resign and go do it on his own dime.  But the president and members of Congress should not be able to misuse their position of public trust to cash in on brazen pay-to-play money grabs that smack of corruption and should be widely condemned.  Presidents should not have a giant crypto-bribery funnel just sitting out there for foreign entities and favor seekers to transfer them money and get special access or favors in return.  Americans should not grow numb to such corrosive misconduct or tolerate a Grifter-in-Chief,” said Senator Reed.  “This is not a partisan issue, it’s an anti-corruption imperative: Those who wield political power to enrich themselves must be held accountable, whether they are taking a sack full of cash or millions in crypto currency.” 

    Reed has also noted that in order for cryptocurrency to be sustainable, digital asset market participants need investor protections to ensure the marketplace is not rigged and plagued with corruption.  A balanced regulatory framework for digital assets coupled with strong oversight is also essential to ensure investors and capital markets are protected.

    In addition to Merkley and Reed, the End Crypto Corruption Act is cosponsored by U.S. Senators Chuck Schumer (D-NY), Elizabeth Warren (D-MA), Mazie K. Hirono (D-HI), Chris Van Hollen (D-MD), Kirsten Gillibrand (D-NY), Catherine Cortez Masto (D-NV), Bernie Sanders (I-VT), Andy Kim (D-NJ), Angela Alsobrooks (D-MD), Cory Booker (D-NJ), Edward J. Markey (D-MA), Tammy Duckworth (D-IL), Elissa Slotkin (D-MI), Mark Kelly (D-AZ), Lisa Blunt Rochester (D-DE), Ron Wyden (D-OR), and Richard Blumenthal (D-CT).

    Non-profits such as Democracy Defenders Action and Public Citizen have endorsed the End Crypto Corruption Act.

    “The cryptocurrency industry is desperately in need of regulation—but not at the expense of allowing it to become an effective tool for corruption,” said Virginia Canter, Anticorruption and Ethics Chief Counsel and Director at Democracy Defenders Action. “It’s critical that we prevent public officials like the President and members of Congress from offering volatile and novel assets that create an unacceptable conflict of interest risk. By prohibiting these officials from issuing digital assets —and including similar language in all cryptocurrency legislation—Congress will demonstrate that their focus, and the focus of all public servants, remains squarely on the needs and interests of the nation, not on the profits they can make from encouraging others to speculate in the highly volatile digital marketplace.”

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: May 8th, 2025 Heinrich Presses Agriculture Secretary on DOGE’s Targeting of Silver City Dispatch Center, USDA Canceling Contracts that Help Local Farmers, Schools, & Kids

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich

    WASHINGTON – U.S. Senator Martin Heinrich (D-N.M.), Member of the Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, pressed U.S. Department of Agriculture (USDA) Secretary Brooke Rollins on proposed cuts in President Trump’s Fiscal Year 2026 (FY26) Preliminary Budget Request, which slashes critical investments that benefit New Mexico families to fund massive tax handouts for billionaires like Elon Musk.

    Specifically, Heinrich questioned Secretary Rollins on DOGE targeting the Silver City Dispatch Center as the Iron Fire burns, USDA canceling contracts that help local farmers sell fresh produce to food banks and schools, and the status of programs that feed starving children around the world with American-grown food through the Food for Peace program.

    VIDEO: U.S. Senator Martin Heinrich (D-N.M.) questions USDA Secretary Brooke Rollins on President Trump’s proposed budget cuts, which slash critical investments that benefit New Mexico families to fund massive tax handouts for billionaires like Elon Musk, May 6, 2025.

    On DOGE Targeting the Silver City Dispatch Center:

    Heinrich began his questioning, “Secretary, the Iron Fire is currently burning in the Gila National Forest, and you and I have talked about the Silver City Dispatch Center, which is in charge of coordinating the response between air assets and front-line firefighters in the Southwest. It is still among the dispatch centers that DOGE is seeking to close. And in our conversations, you assured me that you would seek to keep this dispatch center open, that you would designate it mission critical. Talk to me about what you are doing to make good on that promise.”

    Rollins responded, “Yeah, we have been in conversation with GSA on that, Senator, and certainly, as we have many hands working across the Trump Administration to deliver on our promise for a more effective and efficient government. We agree that this is important, and especially as wildfire season is heating up, ensuring that we are operationally ready at every turn in your state and in other states that are highly affected by that, so we remain focused on that, and if you hear something different, please call me.”

    On Trump’s USDA Canceling Contracts that Help Local Farmers Sell Fresh Produce to Schools and Feed Students:

    Heinrich began by highlighting that the local food purchasing assistance and local food for school programs are,“two of the best examples of using American-grown produce to produce healthier outcomes in our students. To me, that is making America healthy again. You’ve canceled both of those contracts, even though those contracts were signed and farmers had bought supplies for planting based on those contracts.

    Heinrich continued by asking, “What would you say to both the producers and the schools who made financial decisions based on those commitments?”

    Rollins responded, “The first thing I’ll say is, could you send me specific information on that? Because that would be really helpful. We’ve talked a lot in broad strokes, but if I can see the details in New Mexico, you still have a million and a half dollars of the last tranche left out of 6 million.”

    Heinrich pressed Rollins, “The people I’m hearing from are literally the schools and the producers who were impacted, the growers.”

    Rollins responded, “Yeah, I would love to get more details on that and what that looks like again, as a COVID-era program. The other side of this, and I want to make sure you’ve got plenty of time to ask your other questions. But the other side of this, as far as the local nutritious farms, et cetera. I mean, I think that’s a massive push. I think it’s important we remain prioritized on that. But again, the $400 million a day we spend at USDA on nutrition, just on nutrition, I believe sincerely, that we’ll be able to check a lot of those boxes without continuing a program that was supposed to end at the end of COVID and that, in fact, most states still have a lot of money left in the bank. They haven’t been able to spend it.”

    On Trump Threatening the Food for Peace Program:

    Heinrich asked: “My colleague from Kansas mentioned Food for Peace and McGovern-Dole. These programs have provided life-saving American-grown food to people around the world. I have literally met with mothers and children who relied on American food aid for their survival. So I appreciate that you’ve had initial discussions with Secretary Rubio about these programs, but what I saw two weeks ago with several of my Republican colleagues on the ground at a refugee camp were kids who were on fractional rations who didn’t have enough calories per day to thrive. So what are we doing to fill the gap between the historic commitment of those programs and whatever that, you know, replaces them in the meantime, when the impact is kids who are not getting enough to eat?”

    Rollins responded: “And you’re talking specifically on the International Programs, yes, that, that’s, that’s a great conversation. We continue to talk about it. The President has been very clear that we have to ensure that our kids here in America that are hungry, that we’re serving, obviously, they are the priority. It doesn’t mean that we don’t care about or want to move out American farmers’ produce, and we should in commodities across the world, but really focusing here in America first, but secondly, understanding how effective these programs are, which I talked a little bit about with the back and forth with Senator Baldwin. I think it may have been Senator Murray, but how important and effective those are, where we’re spending the money, how it’s being spent, and what that looks like.”

    Heinrich pushed Rollins, “You’ll get a lot of support from this Committee to, to go after overhead, excess overhead, I think we have to check too many boxes, and there are a lot of entities that have gotten good at running those contracts because they can check those boxes. But what we saw on the ground was kids who had malaria and other diseases because they simply didn’t have enough food to eat, because commitments we made were not being made good on.”

    Rollins responded: “Well, I would love more details on that that would help me understand and in fact, where it was y’all went, and then my commitment to you is to study that, and in my, you know, my heart is with what you’re saying. But again, we are putting American first, understanding how we’re feeding our children. And we haven’t had a MAHA discussion yet, but if we do, we can talk a little bit more about that is important. But also understanding that, again, the mission and the intention of these programs are always good. It is how we are effectuating them and putting them into play and really looking at that closely.”

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI United Kingdom: FCDO statement on DPRK ballistic missile launches: 8 May

    Source: United Kingdom – Executive Government & Departments

    Government response

    FCDO statement on DPRK ballistic missile launches: 8 May

    The FCDO has released a statement following ballistic missile launches by the Democratic People’s Republic of Korea (DPRK) on 8 May.

    An FCDO spokesperson said:

    DPRK’s ballistic missile launches on 8 May are another breach of multiple UN Security Council resolutions (UNSCRs). Unlawful ballistic missile launches continue to destabilise the peace and security of the Korean Peninsula. 

    The UK strongly urges the DPRK to stop such provocations and return to dialogue.

    Media enquiries

    Email newsdesk@fcdo.gov.uk

    Telephone 020 7008 3100

    Contact the FCDO Communication Team via email (monitored 24 hours a day) in the first instance, and we will respond as soon as possible.

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    Updates to this page

    Published 8 May 2025

    MIL OSI United Kingdom –

    May 9, 2025
  • MIL-OSI USA: Latta Statement on Election of Pope Leo XIV

    Source: United States House of Representatives – Congressman Bob Latta (R-Bowling Green Ohio)

    Latta Statement on Election of Pope Leo XIV

    Today, Congressman Bob Latta (OH-5) released the following statement upon the election of Pope Leo XIV:

    “Today, I congratulate the election of Pope Leo XIV, the first American Pope and fellow native of the Midwest. This is a moment of unity and hope for the Church.

    “Marcia and I offer our prayers for a successful and peaceful papacy to Pope Leo XIV as he leads the Catholic church.”

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Dingell, Cline Introduce Bipartisan Bill to Support Bird Conservation in Urban Areas

    Source: United States House of Representatives – Congresswoman Debbie Dingell (12th District of Michigan)

    Representatives Debbie Dingell (D-MI) and Ben Cline (R-VA) today reintroduced the bipartisan Local Communities & Bird Habitat Stewardship Act to establish a federal grant program to support conservation of birds and habitats in urban areas.

    “Birds play an important role in our ecosystems and our everyday lives, and we all have an opportunity and a responsibility to make our communities safer places for birds and people to live together,” Dingell said. “Unfortunately, we have lost nearly 3 billion birds in the last 50 years, and we need to take serious action to address this crisis. The Local Communities & Bird Habitat Stewardship Act will provide federal funding to cities, community organizations, and other groups doing important work to restore bird habitat, and most importantly, educate communities about the small steps we can all take to protect bird populations for generations to come.” 

    “Birds play an important role in our environment, and responsible conservation efforts can help preserve migratory patterns and reduce the risk of avian illnesses,” Cline said. “These efforts should be led locally by individuals and municipalities who understand the needs of their communities. As we codify existing partnerships through the U.S. Fish and Wildlife Service, we must ensure that any federal support remains targeted, transparent, and accountable to the taxpayer.”

    In North America, one in four breeding birds has been lost since 1970. The widespread loss and degradation of habitat is the biggest driver of bird population decline. Restoring bird habitat in urban areas can make a significant difference in conserving bird populations.

    The Local Communities & Bird Habitat Stewardship Act would make $1,000,000 available annually through a competitive grant program to eligible entities, including Tribal, State, or municipal agencies, nongovernmental organizations, community groups, and academic institutions, to promote urban bird conservation. Specifically, the grant program aims to:

    • protect, restore, or enhance urban habitats for birds, including through the control of invasive species and the restoration of native plant species;
    • reduce urban hazards to birds; and
    • educate and engage communities in scientific activities involving the monitoring of birds and the habitats of such birds in urban areas

    The bill is endorsed by the National Audubon Society, the National Wildlife Federation, the American Bird Conservancy, and Ducks Unlimited.

    “Every spring, billions of birds migrate across the United States, sometimes as many as 500 million in a single night. For them to safely complete their journeys, our communities must not only offer safe passage but also provide critical places to rest, nest, and feed along the way,” said Felice Stadler, vice president of government affairs at the National Audubon Society. “With bird populations down 30 percent since 1970, it’s essential that legislation like the Local Communities & Bird Habitat Stewardship Act becomes law and give communities the tools we need to create healthy bird habitat in our neighborhoods. Thank you to Reps. Dingell and Cline for your leadership and commitment to protecting our nation’s birds. We look forward to seeing this important bill move forward in Congress.”

    “As wildlife habitats shrink across the country, it is increasingly important to protect and expand existing habitat and ensure safe passage for birds,” said Abby Tinsley, vice president for conservation policy at the National Wildlife Federation. “For migrating birds, rural and urban parks and greenways offer places to feed and rest on their journeys, and many species rely on them year-round.  This bill will empower communities to conserve and restore these essential habitats, benefitting the birds and people who share these spaces. We are grateful to Representatives Dingell and Cline for their leadership.”

    “Thriving communities include birds,” said Steve Holmer, vice president of policy at American Bird Conservancy. “Thanks to Representatives Debbie Dingell and Ben Cline for introducing the Local Communities & Bird Habitat Stewardship Act, which will improve bird habitat, reduced hazards to birds, and engage communities in bird conservation. As birds face unprecedented declines and bird watching participation grows, conserving birds is more important now than ever before.”

    “Waterfowl and other birds are important to ecosystems in both rural and urban areas,” said Kellis Moss, Ducks Unlimited Managing Director of Federal Affairs. “The Local Communities & Bird Habitat Stewardship Act will help cities and local organizations invest in habitats that benefit the long-term conservation of bird populations. We thank Rep. Dingell and Rep. Cline for their leadership on this issue.”

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Rep. Moore Statement on Election of Pope Leo XIV

    Source: United States House of Representatives – Representative Riley Moore (WV-02)

    Washington, D.C. – Congressman Riley M. Moore, a Roman Catholic, issued the following statement after the election of Pope Leo XIV:

    “Habemus papam & Deo gratias — an American has been elected to the chair of St. Peter!

    “I pray the Lord blesses the Holy Father with the great wisdom and unyielding courage necessary to preach the Gospel of Jesus Christ and Him crucified.

    “Here’s to many years of good health for Pope Leo XIV as he shepherds our universal church as the Vicar of Christ.”

    ###

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Salinas, Bacon, Beyer Launch Bipartisan Mental Health Caucus For The 119th Congress

    Source: United States House of Representatives – Representative Don Beyer (D-VA)

    Today, U.S. Representative Andrea Salinas (D-OR) joined her fellow Co-Chairs of the Bipartisan Mental Health Caucus – including Reps. Don Bacon (R-NE) and Donald Beyer (D-VA) – at a press conference to officially launch the Caucus for the 119th Congress. The Members, standing side-by-side with representatives from leading mental health advocacy organizations, delivered remarks about the state of mental health and addiction in America and the potential for bipartisan progress on this issue. Rep. Tony Gonzales (R-TX) also serves as Caucus Co-Chair along with Reps. Salinas, Bacon, and Beyer.

    Click here to watch a recording and here for usable photos from today’s press conference

    “Mental health is an issue where bipartisan consensus is still possible. I remain very hopeful. We’ve seen how these problems have affected our own families, neighborhoods, and communities – and we all share a similar goal: Putting an end to the mental health and addiction crisis once and for all,” said Rep. Salinas. “I am optimistic and excited about the road ahead. Because we have partners, parents, providers and yes – even politicians – who want to see change and are ready to roll up our sleeves and get to work on commonsense solutions.

    “We do have a mental health crisis in our country, and I think it’s pretty clear to all of us that we have underfunded mental health care,” said. Rep. Bacon. “I look forward to working with our Co-Chairs and all of you to improve our mental health capabilities in this country. We know the problem. That means we can find the solution.”

    “We want this to be the largest Caucus on the Hill. We should have every Democrat and every Republican in it because every family, if you look just hard enough, you’ll find that they’re dealing with some kind of mental health concern… and I think we all agree that the health system is failing,” said Rep. Beyer. “We do a very poor job at dealing with serious mental illness in this country. That’s why I’m so grateful that my colleagues [Reps. Salinas, Bacon, and Gonzales], and the many, many other Democrats and Republicans who have signed up to be part of this [Caucus], have come together with our mental health professionals and our industry leaders to really try to make a difference.”

    Several mental health professionals and advocates also spoke at the press conference, including Theresa Miskimen Rivera, M.D., President-Elect of the American Psychiatry Association (APA), Michael Linskey, Director of Congressional Affairs at the National Alliance on Mental Illness (NAMI), Laurel Stine, Executive Vice President and Chief Advocacy and Policy Officer at the American Foundation for Suicide Prevention (AFSP), and Tim Clement, Vice President of Federal Government Affairs at Mental Health America (MHA).

    Chaired by Reps. Salinas, Bacon, Beyer, and Gonzales, the Bipartisan Mental Health Caucus serves as a bipartisan forum where Members of Congress and their staff can work together to raise awareness and find solutions to the mental and behavioral health crisis in America. A full list of Caucus Members can be found here.

    To receive updates and learn more about the Bipartisan Mental Health Caucus, you can visit the Caucus’ website or follow the Caucus on Bluesky, X, Facebook, and Instagram.

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Wasserman Schultz, Soto, Salazar Introduce Bipartisan Legislation to Designate Venezuela for Temporary Protected Status

    Source: United States House of Representatives – Representative Debbie Wasserman Schultz (FL-23)

    “It is simply wrong to subject law-abiding Venezuelan families to a criminal, murderous regime that openly and flagrantly violates human rights,” said Wasserman Schultz. “TPS recipients are not criminals—they are here legally and nobody with a criminal record is eligible for protection. I’m proud to join this bipartisan effort to prevent Venezuelan families in my district from being unjustly torn apart while we continue to fight for a free and prosperous Venezuela under democratic leadership.”

    Washington, DC – Today, Florida Reps. Debbie Wasserman Schultz (D-FL-25), Darren Soto (D-FL-09), María Elvira Salazar (R-FL-27) introduced the bipartisan Venezuela TPS Act of 2025, legislation designating Venezuela for Temporary Protected Status. This comes after U.S. Secretary of Homeland Security Kristi Noem announced the termination of Venezuela’s TPS extension by the Biden Administration, affecting more than half a million Venezuelans who currently hold protected status.

    “It is simply wrong to subject law-abiding Venezuelan families to a criminal, murderous regime that openly and flagrantly violates human rights,” said Wasserman Schultz. “TPS recipients are not criminals—they are here legally and nobody with a criminal record is eligible for protection. I’m proud to join this bipartisan effort to prevent Venezuelan families in my district from being unjustly torn apart while we continue to fight for a free and prosperous Venezuela under democratic leadership.”

    “We are concerned by the Trump Administration’s actions to strip Venezuelans of Temporary Protected Status, parole, and other critical protections during a time of major instability in their country. In Central Florida, thousands of Venezuelans have fled political violence and joined family members already living in the United States, contributing to our economy, and working hard to help our community grow,” said Soto. “It is insulting to turn our backs on this group. Now more than ever, we need to come together to protect our community from unjust treatment and unconstitutional deportations.”

    “The oppression of the Maduro regime and the total failure of socialism of the 21st century has created dangerous conditions in Venezuela and a constant threat of political persecution,” said Salazar. “That’s why I am proud to co-lead the Venezuela TPS Act of 2025— to ensure law-abiding Venezuelans currently in the United States can stay here until conditions improve and they are not forcibly returned to a brutal dictatorship. I will continue fighting for a free and prosperous Venezuela, led by its legitimate President Edmundo Gonzalez and the Iron Lady Maria Corina Machado.”

    The Venezuela TPS Act of 2025 automatically designates Venezuela for TPS for an initial period of 18 months, with the option of renewal. Under TPS, Venezuelans would be shielded from deportation and granted work authorization, allowing individuals to pay taxes and contribute to their communities. The Act also provides for individuals to travel abroad for emergencies and extenuating circumstances.

    Political instability, endemic corruption, and repression under Nicolás Maduro’s authoritarian regime has led to massive food and medicine shortages, with millions living in poverty and suffering from food insecurity. Venezuela’s economy has contracted by more than 80% since 2014, which is more than twice the magnitude of the Great Depression in the United States. Due to the ongoing crisis in Venezuela, Venezuelans have consistently been the leading nationality requesting asylum in the United States since 2016. As of June 2023, United Nations agencies believe that over 7.3 million Venezuelans have fled the country, many of whom have resettled in neighboring countries like Colombia and Brazil. 

    Venezuelan nationals will be eligible for TPS if they:

    ·    Have been continuously physically present in the United States since the date of the bill’s enactment;

    ·    Are admissible to the United States; and

    ·    Register for TPS in a manner established by the U.S. Secretary of Homeland Security.

    For the full text of the bill, click here. 

    ####

    Wasserman Schultz, Soto, Salazar Presentan Proyecto de Ley Bipartidista Para Designar a Venezuela al Estatus de Protección Temporal

    La Ley de TPS para Venezuela del 2025 protegería a más de medio millón de ciudadanos venezolanos que actualmente tienen estatus protegido

    Washington, DC – Hoy, representantes de la Florida Debbie Wasserman Schultz (D-FL-25) Darren Soto (D-FL-09), y María Elvira Salazar (R-FL-27) presentaron la Ley de TPS para Venezuela del 2025, un proyecto de ley bipartidista que designaría a Venezuela al Estatus de Protección Temporal (TPS, por sus). Este proyecto de ley se produjo después de que la secretaria de Seguridad Nacional de los Estados Unidos, Kristi Noem, anuncio la terminación de la extensión del TPS para Venezuela por parte de la Administración Biden, que afecta a más de medio millón de ciudadanos que actualmente tienen estatus protegido.

    “Es simplemente un error someter a las familias venezolanas respetuosas de la ley a un régimen criminal y asesino que viola abierta y flagrantemente los derechos humanos,” dijo la congresista Wasserman Schultz. “Los beneficiarios del TPS no son criminales, están aquí legalmente y nadie con antecedentes penales es elegible para la protección. Estoy orgullosa de unirme a este esfuerzo bipartidista para evitar que las familias venezolanas en mi distrito sean injustamente separadas mientras continuamos luchando por una Venezuela libre y próspera bajo un liderazgo democrático.”

    “Estamos preocupados por las acciones de la Administración Trump para sacarle a los venezolanos los beneficios del Estatus de Protección Temporal, la libertad condicional y otras protecciones críticas durante un momento de gran inestabilidad en su país. En Florida Central, miles de venezolanos han huido de la violencia política y se han unido a sus familiares que actualmente viven en los Estados Unidos—contribuyendo a la economía y trabajando arduamente para ayudar a que nuestra comunidad crezca,” dijo el congresista Darren Soto. “Darle la espalda a este grupo es un gran insulto. Ahora más que nunca, necesitamos unirnos para proteger a nuestra comunidad contra trato injusto y las deportaciones inconstitucionales.”

    “La opresión del régimen de Maduro y el fracaso total del socialismo del siglo XXI ha creado condiciones peligrosas en Venezuela y una amenaza constante de persecución política,” dijo la congresista Salazar. “Es por eso que me enorgullece coliderar la Ley de TPS para Venezuela del 2025, para garantizar que los venezolanos respetuosos de la ley que actualmente se encuentran en los Estados Unidos puedan permanecer aquí hasta que las condiciones mejoren y no sean devueltos a la fuerza a una dictadura brutal. Seguiré luchando por una Venezuela libre y próspera, liderada por su legítimo presidente Edmundo González y la Dama de Hierro María Corina Machado.”

    La Ley de TPS para Venezuela del 2025 automáticamente designaría a Venezuela para TPS por un período inicial de 18 meses, con opción de renovación. Bajo el TPS, los venezolanos estarían protegidos contra la deportación y se les otorgaría autorización de trabajo, permitiéndoles a los beneficiarios pagar impuestos y contribuir a sus comunidades. El proyecto de ley también prevé que los beneficiarios viajen al extranjero por situaciones de emergencia y circunstancias atenuantes.

    La inestabilidad política, la corrupción endémica y la represión bajo el régimen autoritario de NicolásMaduro han provocado una escasez masiva de alimentos y medicamentos, con millones de personasviviendo en la pobreza y sufriendo inseguridad alimentaria. 

    La economía de Venezuela se ha contraídoen más del 80% desde el 2014, más del doble de la magnitud de la Gran Depresión en los EstadosUnidos. Debido a la crisis en Venezuela, los venezolanos han sido consistentemente la principalnacionalidad que solicita 

    asilo en los Estados Unidos desde el 2016. Hasta junio del 2023, las agenciasde las Naciones Unidas creen que más de 7,3 millones de venezolanos han huido del país, muchos delos cuales se han reasentado en países vecinos como Colombia y Brasil.

    Los ciudadanos venezolanos serán elegibles para el TPS bajo estas condiciones: 

    ·    Haber estado físicamente presente continuamente en los Estados Unidos desde la fecha de promulgación del proyecto de ley; 

    ·    Ser admisibles a los Estados Unidos; y 

    ·    Registrarse para el TPS de la manera establecida por el/la secretario/a de Seguridad Nacional de los Estados Unidos.

    Para ver el texto completo del proyecto de ley, haga clic aquí.  

    ####

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Statement on the Agency’s Settlement with Ripple Labs, Inc.

    Source: Securities and Exchange Commission

    In December of 2020, under then-Chairman Jay Clayton, the SEC sued Ripple Labs, Inc. for failing to register its crypto tokens as required under the U.S. securities laws.[1] We alleged that Ripple and its leaders raised capital to finance their business through the sales of XRP in unregistered securities offerings, depriving investors of information material to their investments. On the parties’ cross-motions for summary judgment, the court found that Ripple’s institutional sales of XRP constituted an unregistered offer and sale of investment contracts in violation of Section 5 of the Securities Act of 1933, but that other secondary offers and sales did not. The court ordered that Ripple be permanently restrained and enjoined from future violations of Section 5 and ordered it to pay a civil penalty of over $125 million.[2] Both parties appealed the ruling.

    Today, the Commission announced a settlement, which calls for the return to Ripple of over $75 million currently being held in escrow, and to vacate the court-issued injunction requiring Ripple to obey the law.[3]

    This settlement, alongside the programmatic disassembly of the SEC’s crypto enforcement program, does a tremendous disservice to the investing public and undermines the court’s role in interpreting our securities laws.

    This is not a settlement I can support.

    First, the settlement undermines the court’s order. It razes the civil penalty ruling as well as the court-imposed injunction. The agreement states that neither the SEC nor Ripple will seek to vacate or amend any part of the district court’s summary judgement ruling. If, however, Ripple decides tomorrow to sell unregistered XRP tokens to institutional investors—in plain defiance of the court’s order[4]—this Commission will do absolutely nothing about it. There will be no enforcement of the law. The hundreds of hours spent by the court in this matter will be rendered meaningless. And the court’s decision will be effectively vacated.

    Second, the settlement undermines the SEC and its enforcement program. It subverts the clear and honest application of the facts to the law, a cornerstone of any effective law enforcement program. This settlement is part of a broader, programmatic shift to dismiss our registration cases in the crypto context.[5] In remodeling our legal stance in this area, we have pointed to a new “regulatory path,” that the agency will purportedly pursue based on the work of the SEC’s Crypto Task Force.[6] But, even if the Crypto Task Force re-writes registration rules for crypto securities in the future, that does not somehow alter the rules that were in place at the time that Ripple violated them. Further, we have no hint of what those future rules might look like or how long it will take to put them in place—if ever. So, we are today accepting a diluted settlement, that erases the investor protections we already won, based on a non-existent framework that may or may not come to fruition potentially years from now, on the basis that the current framework in place—of applying the facts to the law—was not industry or innovation-friendly. This creates a regulatory vacuum with no end in sight. That does not an Enforcement program make.

    In the meantime, the settlement joins a line of dismissals that collectively erode the credibility of our lawyers in court who are being asked to take legal positions today contrary to the ones taken just months ago. And it stands in defiant contravention of the doctrine of regularity of government affairs.[7]

    Third, the settlement is not in the best interests of the investors and markets that our agency is tasked with serving and protecting. It creates more questions than answers. Does the resolution suggest to the market that we agree with the court’s ruling? What is the legal effect of the ruling in place? How can we ensure that investors get the information that they need and to which they are entitled under the law?

    At bottom, I have full confidence in the arguments our agency made to the Second Circuit on appeal, and equal confidence in the talent of SEC attorneys who advanced those arguments. That motivates my dissent today. Our agency is, I fear, worried that the appellate court would issue a sound ruling that agreed with the legal arguments already laid out by the Commission. That would undermine the agency’s new apparent mission of dismantling our crypto enforcement program and eroding investor protections. For these reasons, I cannot support our settlement. I urge the courts to take a long hard look at the Commission’s attempt to claw back the meritorious claims it previously made, and gut its own enforcement program from the inside out.


    [2] Securities & Exchange Commission v. Ripple Labs, Inc. 20-cv-10832, Dkt. No. 974 (Aug. 8, 2024).

    [4] Securities & Exchange Commission v. Ripple Labs, Inc., 682 F.Supp.3d 308, 324-328 (July 13, 2023 S.D.N.Y).

    [5] See, e.g., https://www.foxbusiness.com/video/6369673063112 (Mar. 6, 2025) (then-Acting Chairman Uyeda announcing that the Commission will be closing crypto asset registration investigations); SEC Announces Dismissal of Civil Enforcement Action Against Coinbase, Rel. No. 2025-47 (Feb. 27, 2025); SEC Obtains Final Judgment Against Wireless Network Creator for Misrepresentations Concerning Network Users, Lit. Rel. No. 26291 (Apr. 24, 2025) (settling Securities Act Section 17(a)(2) charges, and noting “The SEC dismissed with prejudice other claims alleged in the complaint” – i.e., registration claims. “The Commission’s decision to exercise its discretion and dismiss such claims rests on its judgment that the dismissal will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry, not any assessment of the merits of the claims alleged in the action.”); SEC Announces Dismissal of Civil Enforcement Action Against Dragonchain, Inc., Dragonchain Foundation, The Dragon Company, and John Joseph Roets, Lit. Rel. No. 26299 (Apr. 30, 2025); SEC Announces Dismissal of Civil Enforcement Action Against Ian Balina, Lit. Rel. No. 26302 (May 2, 2025). These dismissals were made despite favorable caselaw developed in some of these cases. See Securities & Exchange Commission v. Coinbase Inc., 726 F.Supp.3d 260 (Mar. 27, 2024 S.D.N.Y.); Securities & Exchange Commission v. Balina, 2024 WL 2332965 (May 22, 2024 W.D. Tex.).

    [7] 32 C.F.R. 724.211 (“There is a presumption of regularity in the conduct of government affairs.”).

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Gov. Kemp Signs Legislation Delivering Hurricane Helene Relief and Supporting Georgia Agriculture and Forestry

    Source: US State of Georgia

    ATLANTA – Governor Brian P. Kemp, joined by First Lady Marty Kemp, Agriculture Commissioner Tyler Harper, Georgia Forestry Commission Director Johnny Sabo, constitutional officers, and members of the Georgia General Assembly, signed three pieces of legislation that provides support for Georgia’s agriculture and forestry industry and delivers promised relief to farmers and timber producers impacted by Hurricane Helene.

    “Our farmers and foresters are tough people,” said Governor Brian Kemp. “Their commitment to moving forward after all they’ve faced is an inspiration to us all. There is still more work to be done, but I’m proud to sign these bills and deliver on our promises to the men and women who are the backbone of our state. I’m also grateful for the dedicated efforts of all of our partners in the General Assembly whose steadfast leadership and determination helped make today possible.”

    HB 223, a priority of Governor Brian Kemp, championed by Lieutenant Governor Burt Jones, Speaker Jon Burns, Commissioner Tyler Harper, Representative Chuck Efstration, and Committee Chairmen Shaw Blackmon, Chuck Hufstetler, Matt Hatchett, Blake Tillery, sponsored by Representative James Burchett, carried in the Senate by Senator Russ Goodman, exempts federal crop loss payments and disaster payments from state income tax, establishes a reforestation tax credit to help timber producers recover from the storm and encourage them to replant their crop, allows local governments to temporarily suspend their collection of harvest tax on timber producers to assist them in cleanup efforts, and provides a temporary addition to the Georgia Agricultural Tax Exemption (GATE) for building materials to repair and rebuild poultry houses, livestock facilities, greenhouses, and other agricultural structures.

    In addition to HB 223 Governor Kemp signed the following pieces of legislation:

    SB 201, sponsored by Senator Larry Walker and carried in the House by Representative Leesa Hagan, provides increased protection for consumers when entering into contracts with contractors following natural disasters. 

    HB 143, sponsored by Representative Robert Dickey, carried in the Senate by Senator Sam Watson, and championed by the Georgia Environmental Protection Division, shifts the burden of agricultural water metering equipment installation and maintenance from farmers back to the state.

    Governor Kemp extends his appreciation to all of those whose diligent work and efforts led to him being able to sign these bills today.

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Celebrating NY FFA’s 100th Anniversary

    Source: US State of New York

    [embedded content]

    [embedded content]

    New York State Agriculture Commissioner Richard A. Ball said, “There’s a long list of things that make The Great New York State Fair the best in the nation, but its continued focus on agriculture is what truly sets it apart, and its deep partnership with FFA has been a huge part of that. I can’t think of a better way to celebrate this powerful program’s centennial than by breaking ground on a new building that will help introduce a whole new generation of young people to the value of our industry and inspire them to pursue meaningful careers in agriculture. I want to thank our Governor, our partners across the state, and of course our very own NY FFA who share this vision and make it a priority – because of their work, I know the future of agriculture is bright.”

    New York State Office of General Services Commissioner Jeanette Moy said, “Agriculture is a major driver of New York’s economy, providing a source of fresh food and income to people across our state. OGS is proud to partner with the State Department of Agriculture and Markets in the construction of a 4,000-square-foot building at the Great New York State Fairgrounds. This new facility will further demonstrate Governor Hochul, Commissioner Ball, and our support for New York State’s farmers and FFA’s efforts to prepare its members for careers in all sectors of the agricultural industry. As FFA marks 100 years of its annual convention here, there’s no better opportunity for us to break ground on this new space.”

    New York State FFA Director Juleah Tolosky said, “For 100 years, New York FFA has empowered students to lead, serve, and grow in agriculture and beyond. This new building at the Fairgrounds is more than a structure — it’s a symbol of what happens when we invest in young people and believe in their potential. We’re grateful to Governor Hochul and Commissioner Ball and our partners across the state for supporting a vision that honors our past while building a stronger future for agricultural education.”

    Dean of Cornell University’s College of Agriculture and Life Sciences Benjamin Houlton said, “The FFA is one of the most important organizations of America’s agricultural leadership—past, present and future. The historic celebration of the organization’s success reflects the commitment of many generations of farmers, agribusiness innovators and natural resources professionals to serve the foundation of society with the food they produce. At CALS, we are so grateful for our state partners’ unyielding support and proud to see a growing number of FFA students join us in shaping the future of agriculture—whether through a CALS or SUNY college degree, technical training or direct-to-career paths. There has never been a more exciting time for agriculture, and this generation of agriculture innovators will ensure that the country is in a strong position for continued prosperity.”

    New York State Fair Director Julie LaFave said, “The Great New York State Fair is a tradition rooted in agriculture, and our work with the New York State FFA has been the driving force behind keeping this tradition alive. Here at the Fair, these incredible students showcase their projects, participate in competitions, and teach tens of thousands of Fairgoers what New York agriculture is all about. We’re thrilled to help this remarkable organization celebrate its 100th anniversary by investing in a new building right here at the Fair that will help spotlight their work and introduce more young people to the importance of this industry. I congratulate FFA on their centennial, and thank Governor Hochul, a 4-H kid who knows firsthand the value of ag education, for her support of this critical investment.”

    Supporting agricultural education is essential to developing a generation of leaders who understand where our food comes from and value the hard work of our farmers.

    Governor Kathy Hochul

    New York State Agriculture Commissioner Richard A. Ball said, “There’s a long list of things that make The Great New York State Fair the best in the nation, but its continued focus on agriculture is what truly sets it apart, and its deep partnership with FFA has been a huge part of that. I can’t think of a better way to celebrate this powerful program’s centennial than by breaking ground on a new building that will help introduce a whole new generation of young people to the value of our industry and inspire them to pursue meaningful careers in agriculture. I want to thank our Governor, our partners across the state, and of course our very own NY FFA who share this vision and make it a priority – because of their work, I know the future of agriculture is bright.”

    New York State Office of General Services Commissioner Jeanette Moy said, “Agriculture is a major driver of New York’s economy, providing a source of fresh food and income to people across our state. OGS is proud to partner with the State Department of Agriculture and Markets in the construction of a 4,000-square-foot building at the Great New York State Fairgrounds. This new facility will further demonstrate Governor Hochul, Commissioner Ball, and our support for New York State’s farmers and FFA’s efforts to prepare its members for careers in all sectors of the agricultural industry. As FFA marks 100 years of its annual convention here, there’s no better opportunity for us to break ground on this new space.”

    New York State FFA Director Juleah Tolosky said, “For 100 years, New York FFA has empowered students to lead, serve, and grow in agriculture and beyond. This new building at the Fairgrounds is more than a structure — it’s a symbol of what happens when we invest in young people and believe in their potential. We’re grateful to Governor Hochul and Commissioner Ball and our partners across the state for supporting a vision that honors our past while building a stronger future for agricultural education.”

    Dean of Cornell University’s College of Agriculture and Life Sciences Benjamin Houlton said, “The FFA is one of the most important organizations of America’s agricultural leadership—past, present and future. The historic celebration of the organization’s success reflects the commitment of many generations of farmers, agribusiness innovators and natural resources professionals to serve the foundation of society with the food they produce. At CALS, we are so grateful for our state partners’ unyielding support and proud to see a growing number of FFA students join us in shaping the future of agriculture—whether through a CALS or SUNY college degree, technical training or direct-to-career paths. There has never been a more exciting time for agriculture, and this generation of agriculture innovators will ensure that the country is in a strong position for continued prosperity.”

    New York State Fair Director Julie LaFave said, “The Great New York State Fair is a tradition rooted in agriculture, and our work with the New York State FFA has been the driving force behind keeping this tradition alive. Here at the Fair, these incredible students showcase their projects, participate in competitions, and teach tens of thousands of Fairgoers what New York agriculture is all about. We’re thrilled to help this remarkable organization celebrate its 100th anniversary by investing in a new building right here at the Fair that will help spotlight their work and introduce more young people to the importance of this industry. I congratulate FFA on their centennial, and thank Governor Hochul, a 4-H kid who knows firsthand the value of ag education, for her support of this critical investment.”

    Agricultural Education in New York State
    New York State continues to prioritize investments in agricultural education to support workforce development and ensure that agriculture remains a viable industry in New York State. In 2024, Governor Hochul increased support for the FFA by $250,000 for a total of $1.25 million and dedicated $500,000 to support the New York Agriculture in the Classroom program and $500,000 for the New York Association of Agricultural Educators to increase the number of certified agricultural educators in the state. In addition, $250,000 was included in support of Urban Agricultural Education and $50,000 for the MANRRS program.

    Additionally in 2024, the Governor convened the first ever youth agriculture leadership conference. Following the conference, the Governor announced the establishment of a Blue-Ribbon Panel to Advance Agriculture Education, which will bring together food and agriculture industry stakeholders, educational institutions, and educators to chart a course for strengthening agriculture education and supporting the multi-faceted needs of the workforce.

    The State’s efforts are paying off, with the number of agricultural teachers growing to 424 in 2025. Alongside this growth in teachers, the number of FFA charters and members has also increased. With 224 chapters established in 52 of New York’s 62 counties, there are now over 13,000 FFA members in New York State, an increase from 9,300 in 2022. In 2016, the State Agriculture Commissioner challenged the FFA to increase its number of charters across the State by 100; the FFA reached that goal in time for its 100th anniversary this year, an exciting benchmark as it celebrates its centennial and looks forward to the next hundred years.

    In addition, there are currently five MANRRS collegiate chapters statewide, up from just two in 2022, and one junior chapter at John Bowne High School in New York City. Today, there is also a 4-H program in all 62 counties in New York State, providing educational opportunities to young people interested in agriculture in every corner of the State. Together, these programs help meet the growing demand for agricultural education across New York.

    Embedded Flickr Album

    State Senator Michelle Hinchey said, “New York is the fastest-growing FFA state in the country, and for 100 years, this incredible program has been the bedrock of outstanding student leadership in our state, helping students find their strengths, find ways to serve their communities, and become leaders in every sector of the agriculture industry and beyond it. Congratulations to New York FFA on its centennial—the future of New York looks exceptionally bright with such dedicated young leaders at the forefront.”

    State Senator Rachel May said, “The longevity of New York’s FFA program underscores its significance to agriculture in our state. For 100 years, this program has been educating the next generation of farmers, ensuring that our vital agricultural sector remains strong. The history of the New York State Fair is closely linked to the FFA program, so it’s only appropriate that it has a dedicated building on the fairgrounds, showcasing its significance to our state. Thank you, Governor Hochul, for recognizing the importance of the FFA program with this new facility and support for New York State agriculture.”

    Assemblymember Donna Lupardo said, “FFA is one of the premier youth leadership development organizations in our country. Members have gone on to successful careers as farmers, chemists, government officials, business leaders, teachers, and more. The hands-on experience this organization provides is invaluable, and with the new FFA Building at the State Fairgrounds, they will have the opportunity to showcase their work in an impressive new facility. Congratulations to the FFA on their centennial.”

    Assemblymember Al Stirpe said, “I would like to congratulate the New York FFA for this historic milestone, marking a century of inspiring the agricultural leaders of tomorrow. As a stronghold for Northeastern agriculture, New York thrives thanks to organizations like FFA that help students realize their potential in the agricultural classroom and beyond. I look forward to the construction of the new FFA building, as well as the growth of their now 224 chapters across the state.”

    Assemblymember Bill Magnarelli said, “The New York State Fair and New York State FFA have a long and storied history going back 100 years together. I applaud the work that organizations like New York State FFA and 4-H do in providing quality agricultural education to future generations to continue New York State’s long tradition of farming.”

    About New York State FFA
    Administered by Cornell University, the New York State FFA Association is a youth organization that helps middle and high school students become leaders in a variety of career fields, including agriculture. NY FFA develops premier leadership, personal growth and career success through activities and opportunities nationwide. Learn more about NY FFA at www.nysffa.org.

    About the New York State Fair
    Founded in 1841, The Great New York State Fair showcases the best of New York agriculture, provides top-quality entertainment, and is a key piece of the State’s CNY Rising strategy of growing the Central New York economy through tourism. It is the oldest fair in the United States and is consistently recognized as being among the top five state fairs in the nation.

    The New York State Fairgrounds is a 375-acre exhibit and entertainment complex that operates all year. Audiences are encouraged to learn more about The Great New York State Fair online, browse photos on Flickr, and follow the fun on Facebook, X, formerly known as Twitter, and Instagram.

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Delivering Real Results for Colorado: Gov. Polis Signs Landmark Housing Bill Into Law, Celebrates Actions for Coloradans on Education, Housing, Public Safety

    Source: US State of Colorado

    DENVER – Today, Governor Polis marked the end of the successful 2025 legislative session with House Speaker McCluskie, Senate President Coleman, House Majority Leader Duran, Senate Majority Leader Rodriguez and Lt. Governor Primavera and then signed SB25-002 – Regional Building Codes for Factory-Built Structures to break down barriers to modular housing and discussed the successful 2025 legislative session. 

    “We are delivering real results for hardworking Coloradans, and during this session, we took major actions that will create more housing Coloradans can afford, support students and educators, cut through government red tape, and improve safety across our state. It’s fitting that I’m signing the modular housing bill, a law that will create more housing options that Coloradans can afford, to kick off the next 30 days of bill signings. We know our work is far from over, and I will continue looking for new opportunities to make life better for all Coloradans,” said Governor Jared Polis. 

    During his 2025 State of the State address, the Governor outlined key priorities for the legislative session that would build on Colorado’s work to break down barriers to housing, improve public safety in Colorado communities, and invest in students and educators. These successful legislative priorities resulted in new laws that will help reduce costs and strengthen Colorado communities. 

    MORE HOUSING NOW: 

    IMPROVING PUBLIC SAFETY: 

    • SB25-310 – Proposition 130 Implementation: This law supports funding for local law enforcement agencies to help recruit peace officers by providing financial reimbursements and tuition assistance for initial and continuing education and training for peace officers, as well as pay incentives and bonuses. The bill also provides funding to ensure that the families of fallen officers get the support they need after losing their loved one in the line of duty.
    • HB25-1062 Penalty for Theft of Firearm: This legislation cracks down on gun theft by reclassifying firearm theft as a class 6 felony regardless of the value of the firearm stolen.
    • HB25-1171 – Possession of Weapon by Previous Offender Crimes: This legislation adds first-degree motor vehicle theft to the list of criminal offenses that would make an individual ineligible to possess a firearm.
    • SB25-281 – Increase Penalties Careless Driving: adjusts penalties for persons convicted of careless driving, making each individual seriously injured or killed in a careless driving event a separate violation and clarifies that careless driving resulting in serious bodily injury or death is an included crime for the purposes of the “Victim Rights Act”.
    • Budget to Make Colorado Safer: Governor Polis continues working to make Colorado safer for everyone and by signing this year’s budget, Colorado continues investing in preventing and addressing crime. This includes:
      • Youth Crime Prevention: Helping to prevent at-risk youth from entering the criminal justice system through increased funding for prevention services.
      • Community Corrections Capacity: The budget also provides $2.4 million to invest in community corrections placement, increasing capacity.
      • Supporting Crime Victims: Additionally, this budget implements Colorado’s Proposition KK, designating $30.0M in spending authority to crime victims’ services, $8 million for mental health services, and $1 million for school safety. $15 million ongoing for critical public safety communication infrastructure, supporting over 1,000 local, regional, state, tribal, and federal public safety entities.
      • Funding for CBI’s Colorado Gangs Database: The Colorado Gangs database (CoG) is an application that stores gang information such as gang names, gang members, gang contacts, and is used by law enforcement as an investigative tool. It allows law enforcement the ability to add and change any information about the gangs, tracking gangs, and gang members that they contact during patrol or other investigative efforts conducted by law enforcement. This information is also queryable in the Colorado Crime Information Center (CCIC), which provides law enforcement with the most accurate information possible.
    • HB25-1146 – Juvenile Detention Bed Cap: This legislation allows judicial districts to utilize more juvenile detention beds to ensure that individuals deemed high-risk do not re-enter communities before receiving the rehabilitative services they need. 

    FULLY FUND SCHOOLS AND SUPPORT COLORADO’S WORKFORCE: 

    • HB25-1320 – School Finance Act: This legislation implements Colorado’s student-focused school finance formula without bringing back the budget stabilization factor. It also increases per-pupil funding again to $11,864, an increase from FY24-25 of $412 per student, or an average of $9,000 per classroom.
    • SB25-315 – Postsecondary & Workforce Readiness Programs: This legislation realigns Postsecondary and Workforce Readiness administration and funding to ensure all students have the opportunity to graduate high school with postsecondary credit, an industry-recognized credential, or work-based learning experience.
    • HB25-1278 – Education Accountability System: This legislation modernizes Colorado’s K-12 accountability system for the first time since 2009 to better measure student outcomes, including the creation of a new sub-indicator to support postsecondary and workforce readiness before graduation.
    • HB25-1192 – Financial Literacy Graduation Requirement: This legislation ensures that every student takes a course incorporating all financial literacy standards before they graduate high school, as well as practice filling out financial aid forms so that they are equipped with the know-how to plan for and secure their financial futures.
    • HB25-1038 – Postsecondary Credit Transfer Website: This law will support students by providing more information about how their credits earned through prior learning, concurrent and dual enrollment, and GT Pathways courses will transfer to each Colorado public institution. By allowing students to evaluate and compare the value of their transfer credits across institutions and programs, students can save money and more successfully plan their educational journeys. 

    DRIVING COLORADO’S ECONOMY: 

    FREE STATE OF COLORADO: 

    BOLD CLIMATE GOALS AND IMPROVING AIR QUALITY: 

    • HB25-1267 – Support for Statewide Energy Strategies: This legislation builds on our EV success by empowering the Division of Oil and Public Safety to adopt retail EV charging rules to promote consistency and provide for a more seamless EV charging experience.
    • HB25-1269 Building Decarbonization Measures: This law will make it simpler for buildings to comply with statewide standards by complying with a local standard and will help achieve the administration’s 2030 carbon emission reduction targets. 

    ###

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Attorney General Alan Wilson achieves key legislative win as House passes bill to speed up investigations into child sexual abuse materialRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – Attorney General Alan Wilson announced a major victory today in the fight to protect South Carolina’s children. The House has officially passed Senate Bill 74, the Administrative Subpoena Bill, a top legislative priority this cycle for the Attorney General’s Office and a critical tool in the mission to stop child predators in their tracks. 

     

    “This is a HUGE WIN not only for our office but for South Carolina’s children and families,” said Attorney General Wilson. “S.74 cuts through red tape and empowers our Internet Crimes Against Children (ICAC) Taskforce to move swiftly to issue administrative subpoenas in child sexual exploitation cases, dramatically reducing the time it takes to find child predators and protect children actively being harmed.” 

     

    The passage of this bill would not have been possible without the support of our state legislators. “I want to personally thank the members of the South Carolina House and Senate for recognizing the urgency of this issue and getting it done. Your support is saving lives,” Attorney General Wilson said. 

     

    We also extend deep gratitude to our law enforcement partners across the state. Their relentless work, day in and day out, helped drive this effort forward. Their endorsement of this bill underscores its critical importance in bringing child predators to justice faster and more effectively. 

     

    Charleston County Sheriff Carl Ritchie said, “I am pleased to have offered support of this bill and happy to see it is headed to the Governor’s desk. This bill is instrumental in effectively and without delay prosecuting individuals committing internet crimes against children. I appreciate the leadership of Attorney General Alan Wilson and the work of our legislature to get this bill passed.” 

     

    Lexington County Sheriff Jay Koon said, “The partnership between local law enforcement and the Internet Crimes Against Children task force is invaluable when it comes to investigating and arresting criminals who prey on our children. Allowing the Attorney General to sign administrative subpoenas will speed up our ability to catch these criminals and hold them accountable. This bill is critical to protect children and get predators off the street quicker. Thank you to Attorney General Wilson for leading the charge and Senator Hembree and Representative Travis Moore for pushing this important legislation.” 

     

    The bill now heads to Governor Henry McMaster’s desk for his signature to be signed into law. 

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI USA: Attorney General Alan Wilson announces new and additional State Grand Jury charges alleging public corruption by former Williamsburg Co. Supervisor Tiffany CooksRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson announced today the return of a sixteen-count indictment by the South Carolina State Grand Jury alleging new and additional counts of public corruption against former elected Williamsburg County Supervisor Tiffany Teonta Cooks. Cooks and Williamsburg County Sheriff Stephen Renard Gardner were also indicted by the State Jury in March for various corruption offenses, and Sheriff Gardner was then suspended by order of Governor McMaster.

    The State Grand Jury issued an indictment of Tiffany Cooks for the following offenses:

         2025-GS-47-11 (Williamsburg County)

    • Count 1: Official Misconduct in Office, Common Law: 0-10 Years
    • Count 2: Offering Anything of Value to Influence Action of Public Official or Employee, Ethics Act Violation, § 8-13-705: 0-10 years and/or $0-$10,000
    • Count 3: Embezzlement of Public Funds, Value $10K or More, § 16-13-210: 0-10 years and a fine in the discretion of the court
    • Count 4: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 5: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 6: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 7: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 8: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 9: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 10: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 11: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 12: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 13: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 14: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 15: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500
    • Count 16: Acceptance of Rebates or Extra Compensation, § 16-9-230: 3 mos – 5 years and $100 – $500

    The new indictments generally allege that former Supervisor Cooks “obtain[ed] personal profit and benefit to herself by having government funds, above and beyond her legitimate salary, improperly paid to her in part by having the money routed to her through payments in addition to her salary for alleged participation in ‘community projects.’”  The indictments also generally allege that Cooks “improperly offer[ed] and g[a]ve thousands of dollars of government funds to herself and other officials and employees of Williamsburg County beyond their legitimate salaries through additional pay for alleged participation in ‘community projects,’ with the intent of influencing the discharge of their official duties, for their aid, assistance, collusion with, and allowance of fraud on Williamsburg County government, and to induce them to perform acts and fail to perform acts in violation of their official duties.”

    Former Supervisor Cooks had previously been indicted in March for the following offenses:

         2025-GS-47-05 (Williamsburg County)

    • Count 1: Criminal Conspiracy, § 16-7-410: 0 – 5 years and/or fine of up to $5000
    • Count 3: Misconduct in Office, Common Law: 0-10 years
    • Count 5: Offering Anything of Value to Influence Action of Public Official Ethics Act Violation, § 8-13-705: 0-10 years and/or $0-$10,000
    • Count 6: Embezzlement, § 16-13-210: 0-10 years and a fine in the discretion of the court
    • Count 9: Money Laundering, Value $20,000 but Less Than $100,000, § 16-9-230: 0-10 years

    The March indictments generally alleged that former Supervisor Cooks conspired a “scheme to improperly pay thousands of dollars of government funds to Gardner, and avoid taxes or withholdings on the amounts paid, by routing the government money to Gardner under the guise of checks written to a third party.” The March indictments also alleged that Sheriff Gardner “secretly obtain[ed]” and Cooks “secretly provide[d] personal profit and benefit to Stephen Renard Gardner by having government funds, above and beyond Gardner’s legitimate salary, improperly paid to him.”

    The cases were investigated by the South Carolina State Grand Jury, which functions in partnership with the South Carolina Law Enforcement Division and the South Carolina Attorney General’s State Grand Jury Section. The cases will be prosecuted by the Chief Attorney of the State Grand Jury Section Senior Assistant Deputy Attorney General S. Creighton Waters, Assistant Attorney General Savanna Goude, and Assistant Attorney General Walt Whitmire.

    Attorney General Wilson stressed that all defendants are presumed innocent unless and until they are proven guilty in a court of law.

    MIL OSI USA News –

    May 9, 2025
  • MIL-OSI Security: Man Sentenced to 50 Years in Prison for Participating in Violent Kidnappings in the Chicago Suburbs

    Source: Office of United States Attorneys

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

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

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

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

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

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

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

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

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

    MIL Security OSI –

    May 9, 2025
  • MIL-OSI Security: Man Accused of Concealing Death of Disabled Veteran for Years to Reap Financial Benefits

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

    ST. LOUIS – A convicted felon from Salem, Missouri was indicted on Wednesday and accused of concealing the death of his uncle, a U.S. Army veteran with quadraplegia, for at least five years so that he could steal at least $650,000 of his disability benefits.

    Brian K. Ditch, 44, is now facing four felony counts of wire fraud, four counts of aggravated identity theft, two counts of theft of government property and one count of being a felon in possession of a firearm.

    The indictment alleges that Ditch was solely responsible for his uncle’s care beginning in 2008, and kept his uncle locked in his garage and under his control so he could fraudulently obtain his government benefits. Instead of properly caring for his uncle, Ditch trapped him in the garage for over 24 hours at a time, forcing his uncle “to sit in his own urine and feces without the ability to eat or drink,” the indictment says. After his uncle’s death around 2019, Ditch concealed his death and the body so that he could continue to receive the money, the indictment says. It says Ditch told relatives that he had moved his uncle into a nursing home.

    His uncle received $9,559 per month in Disability Compensation benefits from the U.S. Department of Veterans Affairs (VA), the indictment says. The VA would not have continued to pay had they known Ditch’s uncle was dead, the indictment says. Ditch’s uncle also received a total of $235,210 in Social Security Disability Insurance benefits and Retirement Insurance benefits from the Social Security Administration since 2008.

    Ditch used the money to buy exotic reptiles, fund lavish vacations and enrich himself, the indictment says. Salem police officers found the uncle’s partially frozen body in a trash can in March, as well as three shotguns, the indictment says. As a convicted felon, Ditch is barred from possessing firearms.

    Ditch is expected to plead not guilty in U.S. District Court in St. Louis Friday.

    Charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.

    “The Department of Veterans Affairs Office of Inspector General is committed to holding accountable anyone who exploits veterans or steals their VA benefits,” said Special Agent in Charge Gregory Billingsley with the VA OIG’s Central Field Office. “VA’s programs and services are established to justly compensate deserving veterans and the VA OIG will bring to justice those who would defraud these programs.”

    The Salem Police Department, the Department of Veterans Affairs Office of Inspector General, the Social Security Administration Office of Inspector General and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.

    MIL Security OSI –

    May 9, 2025
  • MIL-OSI: PDF Solutions® Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., May 08, 2025 (GLOBE NEWSWIRE) — PDF Solutions, Inc. (Nasdaq: PDFS), a leading provider of comprehensive data solutions for the semiconductor and electronics ecosystem, today announced financial results for its first quarter ended March 31, 2025.

    Financial Highlights of First Quarter 2025

    • Quarterly total revenues of $47.8 million, up 16% over last year’s comparable quarter
    • Quarterly analytics revenue of $42.5 million, up 10% over last year’s comparable quarter
    • GAAP gross margin of 73% and non-GAAP gross margin of 77%
    • GAAP diluted loss per share of ($0.08) and non-GAAP diluted earnings per share of $0.21
    • Backlog of $226.7 million as of March 31, 2025
    • Completed acquisition of SecureWise LLC, a widely-used, secure, remote connectivity solution in the semiconductor manufacturing equipment industry, during the first quarter of 2025, financed using a combination of new bank debt of $70.0 million and cash on hand

    Total revenues for the first quarter of 2025 were $47.8 million, compared to $50.1 million for the fourth quarter of 2024 and $41.3 million for the first quarter of 2024. Analytics revenue for the first quarter of 2025 was $42.5 million, compared to $47.9 million for the fourth quarter of 2024 and $38.5 million for the first quarter of 2024. Integrated Yield Ramp revenue for the first quarter of 2025 was $5.3 million, compared to $2.2 million for the fourth quarter of 2024 and $2.8 million for the first quarter of 2024.

    GAAP gross margin for the first quarter of 2025 was 73%, compared to 68% for the fourth quarter of 2024 and 67% for the first quarter of 2024.

    Non-GAAP gross margin for the first quarter of 2025 was 77%, compared to 72% for the fourth quarter of 2024 and 72% for the first quarter of 2024.

    On a GAAP basis, net loss for the first quarter of 2025 was $3.0 million, or ($0.08) per diluted share, compared to net income of $0.5 million, or $0.01 per diluted share, for the fourth quarter of 2024, and net loss of $0.4 million, or ($0.01) per diluted share, for the first quarter of 2024.

    Non-GAAP net income for the first quarter of 2025 was $8.1 million, or $0.21 per diluted share, compared to non-GAAP net income of $9.9 million, or $0.25 per diluted share, for the fourth quarter of 2024, and non-GAAP net income of $5.7 million, or $0.15 per diluted share, for the first quarter of 2024.

    Financial Outlook

    “The first quarter of 2025 saw strong customer activity and platform development, driven by AI-driven digitization. Sapience Manufacturing Hub saw record bookings, and we acquired secureWISE to enhance supply chain collaboration. Our platform – spanning analytics, AI/Model Ops, enterprise connectivity, and supply chain tools – empowers customers to handle today’s complex manufacturing and testing environments and data requirements. With a strong portfolio and momentum, we reaffirm our 21-23% annual revenue growth prior guidance range for this year,” said John Kibarian, CEO and President.

    Conference Call

    As previously announced, PDF Solutions will discuss these results on a live conference call beginning at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time today. To participate on the live call, analysts and investors should pre-register at: https://register-conf.media-server.com/register/BI6d53831ac55c4a1ab7f4514ab0ec41ca. Registrants will receive dial-in information and a unique passcode to access the call. We encourage participants to dial into the call ten minutes ahead of the scheduled time. The teleconference will also be webcast simultaneously on the Company’s website at https://ir.pdf.com/webcasts. A replay of the conference call webcast will be available after the call on the Company’s investor relations website. A copy of this press release, including the disclosure and reconciliation of certain non-GAAP financial measures to the comparable GAAP measures, which non-GAAP measures may be used periodically by PDF Solutions’ management when discussing financial results with investors and analysts, will also be available on PDF Solutions’ website at http://www.pdf.com/press-releases following the date of this release.

    First Quarter 2025 Financial Commentary Available Online

    A Management Report reviewing the Company’s first quarter 2025 financial results will be furnished to the Securities and Exchange Commission on Form 8-K and published on the Company’s website at http://ir.pdf.com/financial-reports. Analysts and investors are encouraged to review this commentary prior to participating in the conference call.

    Information Regarding Use of Non-GAAP Financial Measures

    In addition to providing results that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”), PDF Solutions also provides certain non-GAAP financial measures. Non-GAAP gross profit and margin exclude stock-based compensation expense and the amortization of acquired technology under costs of revenues. Non-GAAP net income excludes stock-based compensation expense, amortization of acquired technology under costs of revenues, amortization of other acquired intangible assets, amortization of debt issuance costs and the effects of certain non-recurring items, such as expenses for certain legal proceedings, non-recurring legal, finance, integration and other costs, loss on damaged equipment in-transit, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets and reconciling items. These non-GAAP financial measures are used by management internally to measure the Company’s profitability and performance. PDF Solutions’ management believes that these non-GAAP measures provide useful supplemental information to investors regarding the Company’s ongoing operations in light of the fact that none of these categories of expense and income has a current effect on the future uses of cash (with the exception of expenses related to certain legal proceedings and non-recurring legal, finance, integration and other costs) nor do they impact the generation of current or future revenues. These non-GAAP results should not be considered an alternative to, or a substitute for, GAAP financial information, and may differ from similarly titled non-GAAP measures used by other companies. In particular, these non-GAAP financial measures are not a substitute for GAAP measures of income or loss as a measure of performance, or to cash flows from operating, investing and financing activities as a measure of liquidity. Since management uses these non-GAAP financial measures internally to measure profitability and performance, PDF Solutions has included these non-GAAP measures to give investors an opportunity to see the Company’s financial results as viewed by management. A reconciliation of the comparable GAAP financial measures to the non-GAAP financial measures is provided at the end of the Company’s condensed consolidated financial statements presented below.

    About PDF Solutions

    PDF Solutions (Nasdaq: PDFS) provides comprehensive data solutions designed to empower organizations across the semiconductor and electronics industry ecosystems to improve the yield and quality of their products and operational efficiency for increased profitability. The Company’s products and services are used by Fortune 500 companies across the semiconductor ecosystem to achieve smart manufacturing goals by connecting and controlling equipment, collecting data generated during manufacturing and test operations, and performing advanced analytics and machine learning to enable profitable, high-volume manufacturing.

    Founded in 1991, PDF Solutions is headquartered in Santa Clara, California, with operations across North America, Europe, and Asia. The Company (directly or through one or more subsidiaries) is an active member of SEMI, INEMI, TPCA, IPC, the OPC Foundation, and DMDII. For the latest news and information about PDF Solutions or to find office locations, visit https://www.pdf.com/.

    PDF Solutions and the PDF Solutions logo are trademarks or registered trademarks of PDF Solutions, Inc. or its subsidiaries.

    Forward-Looking Statements

    This press release and the planned conference call include forward-looking statements regarding the Company’s future expected business performance and financial results, including expectations about total revenue growth for 2025 and other statements identified by words such as “could,” “expects,” “intends,” “may,” “plans,” “potential,” “should,” “will,” “would,” or similar expressions and the negatives of those terms, that are subject to future events and circumstances. Other than statements of historical fact, all statements contained in this press release and the planned conference call are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those expressed in these forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: the effectiveness of the Company’s business and technology strategies; current semiconductor industry trends and competition; rates of adoption of the Company’s solutions by new and existing customers; project milestones or delays and performance criteria achieved; cost and schedule of new product development and investments in research and development; the continuing impact of macroeconomic conditions, including inflation, changing interest rates and tariffs, the evolving trade regulatory environment and geopolitical tensions, and other trends impacting the semiconductor industry, the Company’s customers, operations, and supply and demand for its products; supply chain disruptions; the success of the Company’s strategic growth opportunities and partnerships; recent and future acquisitions, strategic alliances and relationships and the Company’s ability to successfully integrate acquired businesses and technologies; whether the Company can successfully convert backlog into revenue; customers’ production volumes under contracts that provide Gainshare; the sufficiency of the Company’s cash resources and anticipated funds from operations; the Company’s ability to obtain additional financing if needed and its ability to use support and updates for certain open-source software; and other risks and uncertainties discussed in PDF Solutions’ periodic public filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and any amendments to such reports. All forward-looking statements made in this press release and the conference call are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.

    PDF SOLUTIONS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    (In thousands)

                 
           March 31,    December 31, 
        2025      2024
                 
    ASSETS            
    Current assets:            
    Cash and cash equivalents   $ 43,734     $ 90,594  
    Short-term investments     10,415       24,291  
    Accounts receivable, net     63,676       73,649  
    Prepaid expenses and other current assets     22,800       17,445  
    Total current assets     140,625       205,979  
    Property and equipment, net     56,564       48,465  
    Operating lease right-of-use assets, net     3,661       4,029  
    Goodwill     96,645       14,953  
    Intangible assets, net     58,357       12,307  
    Deferred tax assets, net     215       43  
    Other non-current assets     33,905       29,513  
    Total assets   $ 389,972     $ 315,289  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Current liabilities:            
    Accounts payable   $ 9,394     $ 8,255  
    Accrued compensation and related benefits     10,902       16,855  
    Accrued and other current liabilities     13,037       8,752  
    Operating lease liabilities ‒ current portion     1,591       1,675  
    Deferred revenues ‒ current portion     27,131       25,005  
    Current portion of long-term debt, net     2,240       —  
    Total current liabilities     64,295       60,542  
    Long-term income taxes     2,932       2,915  
    Non-current operating lease liabilities     3,154       3,504  
    Long-term debt, net     66,416       —  
    Other non-current liabilities     4,195       2,291  
    Total liabilities     140,992       69,252  
                 
    Stockholders’ equity:            
    Common stock and additional paid-in capital     511,751       502,908  
    Treasury stock, at cost     (162,672 )     (159,352 )
    Accumulated deficit     (97,020 )     (93,988 )
    Accumulated other comprehensive loss     (3,079 )     (3,531 )
    Total stockholders’ equity     248,980       246,037  
    Total liabilities and stockholders’ equity   $ 389,972     $ 315,289  

    PDF SOLUTIONS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
    (In thousands, except per share amounts)

                       
        Three months ended
        March 31,    December 31,    March 31, 
           2025 (1)      2024       2024
                     
    Revenues:                  
    Analytics   $ 42,471     $ 47,926     $ 38,463  
    Integrated yield ramp     5,307       2,159       2,847  
    Total revenues     47,778       50,085       41,310  
                       
    Costs and Expenses:                  
    Costs of revenues     12,955       15,901       13,529  
    Research and development     14,628       14,417       12,984  
    Selling, general, and administrative     23,372       19,073       16,498  
    Amortization of acquired intangible assets     378       182       259  
    Income (loss) from operations     (3,555 )     512       (1,960 )
    Interest expense     (311 )     —       —  
    Other income (expense), net     870       962       1,692  
    Income before income tax expense     (2,996 )     1,474       (268 )
    Income tax expense     (36 )     (935 )     (125 )
    Net income (loss)   $ (3,032 )   $ 539     $ (393 )
                       
    Net income (loss) per share:                  
    Basic   $ (0.08 )   $ 0.01     $ (0.01 )
    Diluted   $ (0.08 )   $ 0.01     $ (0.01 )
                       
    Weighted average common shares used to calculate net income (loss) per share:                  
    Basic     39,088       38,783       38,500  
    Diluted     39,088       39,104       38,500  
     

    (1) Analytics Revenue includes revenue from SecureWise LLC, a wholly owned subsidiary we acquired in March 2025.


    PDF SOLUTIONS, INC.

    RECONCILIATION OF GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN (UNAUDITED)
    (In thousands)

                         
        Three months ended  
        March 31,    December 31,    March 31,   
           2025   2024   2024  
                       
    GAAP                    
    Total revenues   $ 47,778   $ 50,085   $ 41,310  
    Costs of revenues     12,955     15,901     13,529  
    GAAP gross profit   $ 34,823   $ 34,184   $ 27,781  
    GAAP gross margin     73 %   68 %   67 %
                         
    Non-GAAP                    
    GAAP gross profit   $ 34,823   $ 34,184   $ 27,781  
    Adjustments to reconcile GAAP to non-GAAP gross margin:                    
    Stock-based compensation expense     1,342     1,336     1,200  
    Amortization of acquired technology     678     583     584  
    Non-GAAP gross profit   $ 36,843   $ 36,103   $ 29,565  
    Non-GAAP gross margin     77 %   72 %   72 %

    PDF SOLUTIONS, INC.
    RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (UNAUDITED)
    (In thousands, except per share amounts)

                       
        Three months ended
        March 31,    December 31,    March 31, 
        2025    2024   2024 
                     
    GAAP net income (loss)    $ (3,032 )   $ 539   $ (393 )
    Adjustments to reconcile GAAP net income (loss) to non-GAAP net income:                  
    Stock-based compensation expense     6,596       6,507     6,110  
    Amortization of acquired technology under costs of revenues     678       583     584  
    Amortization of other acquired intangible assets     378       182     259  
    Expenses for certain legal proceedings (1)     115       69     —  
    Non-recurring legal, finance, integration and other costs     4,345       940     —  
    Loss on damaged equipment in-transit     —       663     —  
    Amortization of debt issuance costs     5       —     —  
    Tax impact of valuation allowance for deferred tax assets and reconciling items (2)     (970 )     375     (813 )
    Non-GAAP net income   $ 8,115     $ 9,858   $ 5,747  
                       
    GAAP net income (loss) per diluted share   $ (0.08 )   $ 0.01   $ (0.01 )
    Non-GAAP net income per diluted share   $ 0.21     $ 0.25   $ 0.15  
                       
    Weighted average common shares used in GAAP net income (loss) per diluted share calculation     39,088       39,104     38,500  
    Weighted average common shares used in non-GAAP net income per diluted share calculation     39,285       39,104     39,053  

    (1) Represents legal costs and expenses related to certain litigation and an arbitration proceeding, which are expected to continue until these matters are resolved.

    (2) The difference between the GAAP and non-GAAP income tax provisions is primarily due to the valuation allowance on a GAAP basis and non-GAAP adjustments. For example, on a GAAP basis, the Company does not receive a deferred tax benefit for foreign tax credits or research and development credits after the valuation allowance. The Company’s non-GAAP tax rate and resulting non-GAAP tax expense is not calculated with a full U.S. federal or state valuation allowance due to the Company’s cumulative non-GAAP income and management’s conclusion that it is more likely than not to utilize its net deferred tax assets (DTAs). Each reporting period, management evaluates the need for a valuation allowance and may place a valuation allowance against its U.S. net DTAs on a non-GAAP basis if it concludes it is more likely than not that it will not be able to utilize some or all of its U.S. DTAs on a non-GAAP basis.

         
    Company Contacts:  
    Adnan Raza   Sonia Segovia
    Chief Financial Officer   Investor Relations
    Tel: (408) 516-0237   Tel: (408) 938-6491
    Email: adnan.raza@pdf.com   Email: sonia.segovia@pdf.com

    The MIL Network –

    May 9, 2025
  • MIL-OSI: Prospect Capital Announces Financial Results for Fiscal March 2025 Quarter

    Source: GlobeNewswire (MIL-OSI)

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

    FINANCIAL RESULTS

    All amounts in $000’s except
    per share amounts (on weighted average
    basis for period numbers)
    Quarter Ended
    March 31, 2025
    Quarter Ended
    December 31, 2024
    Quarter Ended
    March 31, 2024
           
    Net Investment Income (“NII”) $83,489 $86,431 $94,375
    NII per Common Share $0.19 $0.20 $0.23
    Interest as % of Total Investment Income 93.3% 91.0% 91.0%
           
    Net Income (Loss) Applicable to Common Shareholders $(171,331) $(30,993) $113,891
    Net Income (Loss) per Common Share $(0.39) $(0.07) $0.27
           
    Distributions to Common Shareholders $59,966 $65,554 $74,685
    Distributions per Common Share $0.135 $0.15 $0.18
    Cumulative Paid and Declared Distributions to Common Shareholders(1) $4,527,079 $4,445,060 $4,263,149
    Cumulative Paid and Declared Distributions per Common Share(1) $21.57 $21.39 $21.00
    Multiple of Net Asset Value (“NAV”) per Common Share(1) 3.0x 2.7x 2.3x
           
    Total Assets $6,996,312 $7,234,855 $7,905,794
    Total Liabilities $2,118,522 $2,164,305 $2,603,811
    Preferred Stock $1,632,426 $1,630,514 $1,559,764
    Net Asset Value (“NAV”) to Common Shareholders $3,245,364 $3,440,036 $3,742,219
    NAV per Common Share $7.25 $7.84 $8.99
           
    Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments $1,716,035 $1,879,738 $1,101,604
           
    Net of Cash Debt to Total Assets 28.7% 28.1% 31.2%
    Net of Cash Debt to Equity Ratio(2) 40.8% 39.8% 46.2%
    Net of Cash Asset Coverage of Debt Ratio(2) 345% 351% 316%
           
    Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity 87.5% 91.9% 77.7%
    Unsecured and Non-Recourse Debt as % of Total Debt 100.0% 100.0% 100.0%
    (1) Declared dividends are through the August 2025 distribution. May through August 2025 distributions are estimated based on shares outstanding as of 5/7/2025.
    (2) Including our preferred stock as equity.
       

    CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION

    Prospect is declaring distributions to common shareholders as follows:

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

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

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

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

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

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

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

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

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

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

    PORTFOLIO UPDATE AND INVESTMENT ACTIVITY

    All amounts in $000’s except
    per unit amounts
    As of
    March 31, 2025
    As of
    December 31, 2024
    As of
    March 31, 2024
           
    Total Investments (at fair value) $6,901,364 $7,132,928 $7,806,712
    Number of Portfolio Companies 114 114 122
    Number of Industries 33 33 36
           
    First Lien Debt 65.5% 64.9% 59.0%
    Second Lien Debt 10.5% 10.2% 14.6%
    Subordinated Structured Notes 4.2% 5.8% 7.3%
    Unsecured Debt 0.1% 0.1% 0.1%
    Equity Investments 19.7% 19.0% 19.0%
    Mix of Investments with Underlying Collateral Security 80.2% 80.9% 80.9%
           
    Annualized Current Yield – All Investments 9.2% 9.1% 9.7%
    Annualized Current Yield – Performing Interest Bearing Investments 11.5% 11.2% 12.1%
           
    Non-Accrual Loans as % of Total Assets (1) 0.6% 0.4% 0.4%
           
    Middle-Market Loan Portfolio Company Weighted Average EBITDA(2) $97,732 $101,418 $107,796
    Middle-Market Loan Portfolio Company Weighted Average Net Leverage Ratio(2) 5.6x 5.6x 5.1x
    (1) Calculated at fair value.
    (2) For additional disclosure see “Middle-Market Loan Portfolio Company Weighted Average EBITDA and Net Leverage” at the end of the release.
       

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

    All amounts in $000’s Quarter Ended Quarter Ended Quarter Ended
    June 30, 2025
    (to date)
    March 31, 2025 December 31, 2024
           
    Total Originations $65,577 $196,144 $134,956
           
    Middle-Market Lending 75.5% 81.0% 67.7%
    Middle-Market Lending / Buyouts —% 4.9% 14.5%
    Real Estate 21.3% 14.1% 17.8%
    Subordinated Structured Notes —% —% —%
           
    Total Repayments and Sales $20,348 $191,656 $383,363
           
    Originations, Net of Repayments and Sales $45,229 $4,488 $(248,407)
           

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

    CAPITAL AND LIQUIDITY

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

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

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

      As of As of
    All amounts in $000’s March 31, 2025 December 31, 2024
    Net of Cash Debt to Total Assets Ratio 28.7% 28.1%
    Net of Cash Debt to Equity Ratio(1) 40.8% 39.8%
    % of Interest-Bearing Assets at Floating Rates 77.5% 79.8%
    Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity 87.5% 91.9%
         
    Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments $1,716,035 $1,879,738
         
    Unencumbered Assets $4,440,135 $4,763,601
    % of Total Assets 63.5% 65.8%
    (1) Including our preferred stock as equity.
       

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

    All amounts in $000’s Principal Coupon Maturity
    Debt Issuances      
    Prospect Capital InterNotes® $2,366 7.00% – 7.50% March 2028 – April 2030
    Total Debt Issuances $2,366    
           
    Debt Repurchases/Repayments      
    Prospect Capital InterNotes® $3,302 2.50% – 5.50% February 2025 – March 2052
    2026 Notes $33,325 3.706% January 2026
    2025 Notes $156,168 6.375% March 2025
    Total Debt Repurchases/Repayments $192,795    
           
    Net Debt Repurchases/Repayments $(190,429)    

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

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

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

    DIVIDEND REINVESTMENT PLAN

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

    Shares held with a broker or financial institution

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

    Shares registered directly with our transfer agent

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

    EARNINGS CONFERENCE CALL

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

     
    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
    (in thousands, except share and per share data)
     
      March 31, 2025
      June 30, 2024
      (Unaudited)   (Audited)
    Assets              
    Investments at fair value:              
    Control investments (amortized cost of $3,339,028 and $3,280,415, respectively) $ 3,702,161     $ 3,872,575  
    Affiliate investments (amortized cost of $11,735 and $11,594, respectively)   22,693       18,069  
    Non-control/non-affiliate investments (amortized cost of $3,604,248 and $4,155,165, respectively)   3,176,510       3,827,599  
    Total investments at fair value (amortized cost of $6,955,011 and $7,447,174, respectively)   6,901,364       7,718,243  
    Cash and cash equivalents (restricted cash of $2,300 and $3,974, respectively)   54,498       85,872  
    Receivables for:              
    Interest, net   16,176       26,936  
    Other   1,910       1,091  
    Deferred financing costs on Revolving Credit Facility   20,018       22,975  
    Prepaid expenses   1,576       1,162  
    Due from broker   715       734  
    Due from Affiliate   55       79  
    Total Assets    6,996,312       7,857,092  
    Liabilities               
    Revolving Credit Facility   459,963       794,796  
    Public Notes (less unamortized discount and debt issuance costs of $8,841 and $12,433, respectively)   934,106       987,567  
    Prospect Capital InterNotes® (less unamortized debt issuance costs of $8,975 and $7,999, respectively)    633,923       496,029  
    Convertible Notes (less unamortized debt issuance costs of $0 and $649, respectively)   —       155,519  
    Due to Prospect Capital Management   39,781       58,624  
    Interest payable   21,709       21,294  
    Dividends payable   20,460       25,804  
    Accrued expenses   3,674       3,591  
    Due to Prospect Administration   2,809       5,433  
    Due to broker   1,748       10,272  
    Other liabilities   349       242  
    Total Liabilities    2,118,522       2,559,171  
    Commitments and Contingencies              
    Preferred Stock, par value $0.001 per share (847,900,000 and 647,900,000 shares of preferred stock authorized, with 80,000,000 and 80,000,000 as Series A1, 80,000,000 and 80,000,000 as Series M1, 80,000,000 and 80,000,000 as Series M2, 20,000,000 and 20,000,000 as Series AA1, 20,000,000 and 20,000,000 as Series MM1, 1,000,000 and 1,000,000 as Series A2, 6,900,000 and 6,900,000 as Series A, 80,000,000 and 80,000,000 as Series A3, 80,000,000 and 80,000,000 as Series M3, 90,000,000 and 80,000,000 as Series A4, 90,000,000 and 80,000,000 as Series M4, 20,000,000 and 20,000,000 as Series AA2, 20,000,000 and 20,000,000 as Series MM2, 90,000,000 and 0 as Series A5, and 90,000,000 and 0 as Series M5, each as of March 31, 2025 and June 30, 2024; 27,423,137 and 28,932,457 Series A1 shares issued and outstanding, 1,226,738 and 1,788,851 Series M1 shares issued and outstanding, 0 and 0 Series M2 shares issued and outstanding, 0 and 0 Series AA1 shares issued and outstanding, 0 and 0 Series MM1 shares issued and outstanding, 163,000 and 164,000 Series A2 shares issued and outstanding, 5,251,157 and 5,251,157 Series A shares issued and outstanding, 24,283,306 and 24,810,648 Series A3 shares issued and outstanding, 2,321,362 and 3,351,101 Series M3 shares issued and outstanding, 2,208,613 and 1,401,747 Series M4 shares issued and outstanding, 6,982,590 and 3,766,166 Series A4 issued and outstanding, 0 and 0 Series AA2 shares issued and outstanding, 0 and 0 Series MM2 shares issued and outstanding, 1,029,762 and 0 Series A5 issued and outstanding, and 193,289 and 0 Series M5 issued and outstanding as of March 31, 2025 and June 30, 2024, respectively) at carrying value plus cumulative accrued and unpaid dividends   1,632,426       1,586,188  
    Net Assets Applicable to Common Shares $ 3,245,364     $ 3,711,733  
    Components of Net Assets Applicable to Common Shares and Net Assets, respectively              
    Common stock, par value $0.001 per share (1,152,100,000 and 1,352,100,000 common shares authorized; 447,344,378 and 424,846,963 issued and outstanding, respectively)   447       425  
    Paid-in capital in excess of par   4,304,253       4,208,607  
    Distributions in excess of earnings   (1,059,336 )     (497,299 )
    Net Assets Applicable to Common Shares $ 3,245,364     $ 3,711,733  
    Net Asset Value Per Common Share $ 7.25     $ 8.74  
                           
    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except share and per share data)
    (Unaudited)
                           
       Three Months Ended
    March 31,
       
       Nine Months Ended
    March 31,
       
        2025     2024     2025     2024
    Investment Income                              
    Interest income (excluding payment-in-kind (“PIK”) interest income):                              
    Control investments $ 60,584     $ 47,295     $ 170,352     $ 138,111  
    Non-control/non-affiliate investments   75,874       97,665       257,943       309,770  
    Structured credit securities   3,272       4,748       11,505       30,317  
    Total interest income (excluding PIK interest income)   139,730       149,708       439,800       478,198  
    PIK interest income:                              
    Control investments   8,915       21,210       42,509       72,161  
    Non-control/non-affiliate investments   10,611       13,014       30,360       30,651  
    Total PIK Interest Income   19,526       34,224       72,869       102,812  
    Total interest income   159,256       183,932       512,669       581,010  
    Dividend income:                              
    Control investments   4,387       510       8,774       737  
    Affiliate investments   —       —       141       1,307  
    Non-control/non-affiliate investments   3,366       1,469       8,209       4,334  
    Total dividend income   7,753       1,979       17,124       6,378  
    Other income:                              
    Control investments   416       14,192       15,799       55,553  
    Non-control/non-affiliate investments   3,291       2,112       6,898       6,461  
    Total other income   3,707       16,304       22,697       62,014  
    Total Investment Income   170,716       202,215       552,490       649,402  
    Operating Expenses                              
    Base management fee   35,578       39,218       111,253       117,594  
    Income incentive fee   4,207       17,390       33,519       61,332  
    Interest and credit facility expenses   36,151       39,841       113,890       120,478  
    Allocation of overhead from Prospect Administration   5,318       5,708       16,734       20,073  
    Audit, compliance and tax related fees   583       583       2,383       2,079  
    Directors’ fees   150       150       450       416  
    Other general and administrative expenses   5,240       4,950       14,464       10,516  
    Total Operating Expenses   87,227       107,840       292,693       332,488  
    Net Investment Income   83,489       94,375       259,797       316,914  
    Net Realized and Net Change in Unrealized Gains (Losses) from Investments                              
    Net realized gains (losses)                              
    Control investments   4       1,186       6,374       1,039  
    Non-control/non-affiliate investments   (63,184 )     (70,949 )     (216,577 )     (278,168 )
    Net realized gains (losses)   (63,180 )     (69,763 )     (210,203 )     (277,129 )
    Net change in unrealized gains (losses)                              
    Control investments   (73,292 )     125,827       (217,121 )     8,592  
    Affiliate investments   2,481       (487 )     4,483       2,101  
    Non-control/non-affiliate investments   (90,058 )     (5,523 )     (112,078 )     183,012  
    Net change in unrealized gains (losses)   (160,869 )     119,817       (324,716 )     193,705  
    Net Realized and Net Change in Unrealized Gains (Losses) from Investments   (224,049 )     50,054       (534,919 )     (83,424 )
    Net realized gains (losses) on extinguishment of debt   644       (68 )     1,128       (212 )
    Net Increase (Decrease) in Net Assets Resulting from Operations   (139,916 )     144,361       (273,994 )     233,278  
    Preferred Stock dividends   (26,698 )     (24,812 )     (80,083 )     (72,033 )
    Net gain (loss) on redemptions of Preferred Stock   (1,586 )     (925 )     (188 )     (46 )
    Gain (loss) on Accretion to Redemption Value of Preferred Stock   (3,131 )     (4,733 )     (13,128 )     (4,733 )
    Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders $ (171,331 )   $ 113,891     $ (367,393 )   $ 156,466  
     
    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    ROLLFORWARD OF NET ASSET VALUE PER COMMON SHARE
    (in actual dollars)
     
      Three Months Ended
    March 31,
      Nine Months Ended
    March 31,
     
        2025     2024     2025     2024  
    Per Share Data                                
    Net asset value per common share at beginning of period $ 7.84     $ 8.92     $ 8.74     $ 9.24    
    Net investment income(1)   0.19       0.23       0.60       0.77    
    Net realized and change in unrealized gains (losses)(1)   (0.51 )     0.11       (1.25 )     (0.22 )  
    Net increase (decrease) from operations   (0.33 ) (7)   0.34       (0.66 ) (7)   0.56   (7)
    Distributions of net investment income to preferred stockholders   (0.06 ) (4)   (0.06 ) (3)   (0.18 ) (4)   (0.18 ) (3)
    Distributions of capital gains to preferred stockholders   —   (4)   —   (3)   —   (4)   —   (3)
    Total distributions to preferred stockholders   (0.06 )     (0.06 )     (0.18 )     (0.18 )  
    Net increase (decrease) from operations applicable to common stockholders   (0.39 )     0.27   (7)   (0.84 )     0.38    
    Distributions of net investment income to common stockholders   (0.14 ) (4)   (0.18 ) (3)   (0.47 ) (4)   (0.52 ) (3)
    Return of capital to common stockholders   —   (4)   —   (3)   —   (4)   (0.02 ) (3)(6)
    Total distributions to common stockholders   (0.14 )     (0.18 )     (0.47 )     (0.54 )  
    Common stock transactions(2)   (0.08 )     (0.03 )     (0.21 )     (0.09 )  
    Net asset value per common share at end of period $ 7.25   (7) $ 8.99   (7) $ 7.25   (7) $ 8.99    
    (1) Per share data amount is based on the basic weighted average number of common shares outstanding for the year/period presented (except for dividends to stockholders which is based on actual rate per share). Realized gains (losses) is inclusive of net realized losses (gains) on investments, realized losses (gains) from extinguishment of debt and realized gains (losses) from the repurchases and redemptions of preferred stock.
    (2) Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our common stock dividend reinvestment plan, common shares issued to acquire investments, common shares repurchased below net asset value pursuant to our Repurchase Program, and common shares issued pursuant to the Holder Optional Conversion of our 5.50% Preferred Stock and 6.50% Preferred Stock.
    (3) Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2024.
    (4) Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2025.
    (5) Diluted net decrease from operations applicable to common stockholders was $0.39 for the three months ended March 31, 2025. Diluted net increase from operations applicable to common stockholders was $0.20 for the three months ended March 31, 2024. Diluted net decrease from operations applicable to common stockholders was $0.84 for the nine months ended March 31, 2025. Diluted net increase from operations applicable to common stockholders was $0.33 for the nine months ended March 31, 2024.
    (6) The amounts reflected for the respective fiscal periods were updated based on tax information received subsequent to our Form 10-K filing for the year ended June 30, 2023 and our Form 10-Q filing for March 31, 2024. Certain reclassifications have been made in the presentation of prior period amounts.
    (7) Does not foot due to rounding.
       

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

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

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

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

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

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

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

    PRIMARY ORIGINATION STRATEGIES

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

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

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

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

    About Prospect Capital Corporation

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

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

    Caution Concerning Forward-Looking Statements

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

    For additional information, contact:

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

    The MIL Network –

    May 9, 2025
  • MIL-OSI: Definitive Healthcare Reports Financial Results for First Quarter Fiscal Year 2025

    Source: GlobeNewswire (MIL-OSI)

    FRAMINGHAM, Mass., May 08, 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 ended March 31, 2025. 

    First Quarter 2025 Financial Highlights:

    • Revenue was $59.2 million, a decrease of 7% from $63.5 million in Q1 2024. 
    • Net Loss, inclusive of goodwill impairment charges of $176.5 million, was $(155.1) million, or (262)% of revenue, compared to $(12.7) million or (20)% of revenue in Q1 2024.  
    • Adjusted Net Income was $7.0 million, compared to $13.0 million in Q1 2024.   
    • Adjusted EBITDA was $14.7 million, or 25% of revenue, compared to $20.0 million, or 32% of revenue in Q1 2024.  
    • Cash Flow from Operations was $26.1 million in the quarter.
    • Unlevered Free Cash Flow was $22.9 million in the quarter.

    “We delivered first quarter results above the high end of our guidance for both revenue and earnings, reflecting solid new logo momentum across markets, and our continued focus on operational efficiency,” said Kevin Coop, CEO of Definitive Healthcare. “Even with rising macroeconomic uncertainty, we remain firmly on track to meet our full-year financial targets.”

    Recent Business and Operating Highlights: 

    Customer Wins

    In the first quarter, Definitive Healthcare continued to win new logos and expansion opportunities 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 California-based medical device company, focused on continuous patient monitoring, recently selected our Carevoyance platform to equip their sales team with the insights and data they need to identify high-value targets, including ambulatory surgery centers and hospitals.
    • A regional health system in the Southern US recently selected our Populi platform to support new service line expansions, physician recruitment, and telemedicine growth opportunities, along with competitive intelligence and insights on technology adoption.
    • A leading office supply company recently returned to Definitive Healthcare after switching to a competitor in 2023. The decision was driven by our comprehensive data on hospitals, health systems, and post-acute care organizations, our robust affiliations and hierarchy insights that were critical for their enterprise sales team, and our ability to easily integrate with Salesforce.com.
    • As we expand our focus on digital marketing activation partnerships, we recently signed two leading healthcare advertising agencies. Both agencies are currently ramping, and we expect to see momentum continuing to build in the second half of 2025.

    Business Outlook 

    Based on information as of May 8, 2025, the Company is issuing the following financial guidance.  

    Second Quarter 2025:  

    • Revenue is expected to be in the range of $58.5 – $60.0 million. 
    • Adjusted Operating Income is expected to be in the range of $12.0 – $13.0 million. 
    • Adjusted EBITDA is expected to be in the range of $15.0 – $16.0 million, and 25 – 27% adjusted EBITDA margin. 
    • Adjusted Net Income is expected to be $6.5 – $7.5 million. 
    • Adjusted Net Income Per Diluted Share is expected to be $0.04 to $0.05 per share on approximately 147.9 million weighted-average shares outstanding. 

    Full Year 2025:  

    • Revenue is expected to be in the range of $234.0 – $240.0 million, raising the bottom end of our prior range by $4.0 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 $0.20 – $0.23 per share on approximately 148.8 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 May 8, 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 June 7, 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 tariffs, sanctions, trade barriers, recessions, fluctuating 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 Quarterly Report on Form 10-Q for the three months ended March 31, 2025 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 (income), net, and loss on partial extinguishment of debt, 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.
    Condensed Consolidated Balance Sheets
    (in thousands, except number of shares and par value; unaudited)
             
        March 31, 2025   December 31, 2024
    Assets        
    Current assets:        
    Cash and cash equivalents   $ 106,099     $ 105,378  
    Short-term investments     94,574       184,786  
    Accounts receivable, net     42,923       53,232  
    Prepaid expenses and other assets     16,173       13,040  
    Deferred contract costs     13,673       13,736  
    Total current assets     273,442       370,172  
    Property and equipment, net     9,483       3,791  
    Operating lease right-of-use assets, net     6,982       7,521  
    Other assets     2,991       2,300  
    Deferred contract costs     14,299       14,389  
    Intangible assets, net     284,708       297,933  
    Goodwill     216,752       393,283  
    Total assets   $ 808,657     $ 1,089,389  
    Liabilities and Equity        
    Current liabilities:        
    Accounts payable     8,218       10,763  
    Accrued expenses and other liabilities     26,963       40,896  
    Deferred revenue     109,724       93,344  
    Term loan     8,750       13,750  
    Operating lease liabilities     2,422       2,408  
    Total current liabilities     156,077       161,161  
    Long term liabilities:        
    Deferred revenue     2,790       32  
    Term loan     162,385       229,368  
    Operating lease liabilities     7,051       7,586  
    Tax receivable agreements liability     23,124       49,511  
    Deferred tax liabilities     13,912       25,088  
    Other liabilities     7,413       9,449  
    Total liabilities     372,752       482,195  
             
    Equity:        
    Class A Common Stock, par value $0.001, 600,000,000 shares authorized, 109,646,157 and 113,953,554 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively     110       114  
    Class B Common Stock, par value $0.00001, 65,000,000 shares authorized, 38,997,184 and 38,995,217 shares issued and outstanding, respectively, at March 31, 2025, and 39,439,198 and 39,375,806 shares issued and outstanding, respectively, at December 31, 2024     —       —  
    Additional paid-in capital     1,071,732       1,085,445  
    Accumulated other comprehensive deficit     (1,264 )     (610 )
    Accumulated deficit     (747,802 )     (640,574 )
    Noncontrolling interests     113,129       162,819  
    Total equity     435,905       607,194  
    Total liabilities and equity   $ 808,657     $ 1,089,389  
             
     
    Definitive Healthcare Corp.
    Condensed Consolidated Statements of Operations
    (in thousands, except share amounts and per share data; unaudited)
               
        Three Months Ended March 31,  
        2025   2024  
    Revenue   $ 59,191     $ 63,480    
    Cost of revenue:          
    Cost of revenue exclusive of amortization (1)     10,141       9,736    
    Amortization     5,290       3,362    
    Gross profit     43,760       50,382    
    Operating expenses:          
    Sales and marketing (1)     20,653       21,760    
    Product development (1)     9,301       10,132    
    General and administrative (1)     12,269       16,883    
    Depreciation and amortization     8,527       9,322    
    Transaction, integration, and restructuring expenses     1,265       8,534    
    Goodwill impairment     176,531       –    
    Total operating expenses     228,546       66,631    
    Loss from operations     (184,786 )     (16,249 )  
    Other (expense) income, net          
    Interest (expense) income, net     (381 )     111    
    Other income, net     19,188       2,640    
    Total other income, net     18,807       2,751    
    Net loss before income taxes     (165,979 )     (13,498 )  
    Benefit from income taxes     10,886       780    
    Net loss     (155,093 )     (12,718 )  
    Less: Net loss attributable to noncontrolling interests     (47,865 )     (3,200 )  
    Net loss attributable to Definitive Healthcare Corp.   $ (107,228 )   $ (9,518 )  
    Net loss per share of Class A Common Stock:          
    Basic and diluted   $ (0.95 )   $ (0.08 )  
    Weighted average Class A Common Stock outstanding:          
    Basic and diluted     112,782,505       117,433,520    
               
               
    (1) Amounts include equity-based compensation expense as follows:          
        Three Months Ended March 31,  
        2025   2024  
    Cost of revenue   $ 160     $ 271    
    Sales and marketing     1,179       2,271    
    Product development     1,739       2,761    
    General and administrative     4,241       10,279    
    Total equity-based compensation expense   $ 7,319     $ 15,582    
               
       
    Definitive Healthcare Corp.  
    Condensed Consolidated Statements of Cash Flows  
    (in thousands; unaudited)  
               
        Three Months Ended March 31,  
        2025   2024  
    Cash flows provided by (used in) operating activities:          
    Net loss   $ (155,093 )   $ (12,718 )  
    Adjustments to reconcile net loss to net cash provided by operating activities:          
    Depreciation and amortization     591       554    
    Amortization of intangible assets     13,226       12,130    
    Amortization of deferred contract costs     3,947       3,692    
    Equity-based compensation     7,319       15,582    
    Amortization of debt issuance costs     126       176    
    (Benefit from) provision for doubtful accounts receivable     (142 )     211    
    Loss on partial extinguishment of debt     507       —    
    Non-cash restructuring charges     192       —    
    Goodwill impairment charges     176,531       —    
    Tax receivable agreement remeasurement     (20,664 )     (2,267 )  
    Changes in fair value of contingent consideration     (690 )     270    
    Deferred income taxes     (11,007 )     (847 )  
    Changes in operating assets and liabilities:          
    Accounts receivable     10,351       2,999    
    Prepaid expenses and other assets     (5,683 )     (1,399 )  
    Deferred contract costs     (3,794 )     (2,699 )  
    Contingent consideration     —       (602 )  
    Accounts payable, accrued expenses, and other liabilities     (8,745 )     (8,231 )  
    Deferred revenue     19,094       9,738    
    Net cash provided by operating activities     26,066       16,589    
    Cash flows (used in) provided by investing activities:          
    Purchases of property, equipment, and other assets     (7,706 )     (266 )  
    Purchases of short-term investments     (12,000 )     (83,826 )  
    Maturities of short-term investments     103,251       73,588    
    Cash paid for acquisitions, net of cash acquired     —       (13,530 )  
    Net cash provided by (used in) investing activities     83,545       (24,034 )  
    Cash flows used in financing activities:          
    Repayments of term loan     (246,250 )     (3,438 )  
    Proceeds from term loan     175,000       —    
    Payments of debt issuance costs     (1,660 )     —    
    Taxes paid related to net share settlement of equity awards     (1,874 )     (5,806 )  
    Repurchases of Class A Common Stock     (21,155 )     —    
    Payments of contingent consideration     —       (1,000 )  
    Payments under tax receivable agreement     (13,767 )     (6,950 )  
    Net cash used in financing activities     (109,706 )     (17,194 )  
    Net decrease in cash and cash equivalents     (95 )     (24,639 )  
    Effect of exchange rate changes on cash and cash equivalents     816       (343 )  
    Cash and cash equivalents, beginning of period     105,378       130,976    
    Cash and cash equivalents, end of period   $ 106,099     $ 105,994    
    Supplemental cash flow disclosures:          
    Cash paid during the period for:          
    Interest   $ 2,242     $ 3,642    
    Income taxes   $ 32     $ —    
    Acquisitions:          
    Net assets acquired, net of cash acquired   $ —     $ 13,675    
    Working capital adjustment receivable     —       (145 )  
    Net cash paid for acquisitions   $ —     $ 13,530    
    Supplemental disclosure of non-cash investing activities:          
    Capital expenditures included in accounts payable and accrued expenses and other liabilities   $ 5,393     $ —    
               
             
    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 March 31,  
       2025    2024  
    Net cash provided by operating activities $ 26,066     $ 16,589    
    Purchases of property, equipment, and other assets   (7,706 )     (266 )  
    Interest paid in cash   2,242       3,642    
    Transaction, integration, and restructuring expenses paid in cash (a)   1,763       8,264    
    Earnout payment (b)   —       602    
    Other non-core items (c)   560       (528 )  
    Unlevered Free Cash Flow $ 22,925     $ 28,303    
             
    (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.
    (b) Earnout payment represents final settlement of contingent consideration included in cash flow from operations.  
    (c) Non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and 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 share and per share amounts; unaudited)
             
      Three Months Ended March 31,  
       2025    2024  
    Net loss $ (155,093 )   $ (12,718 )  
    Add: Income tax benefit   (10,886 )     (780 )  
    Add: Interest expense (income), net   381       (111 )  
    Add: Loss on partial extinguishment from debt   507       —    
    Add: Other income, net   (19,695 )     (2,640 )  
    Loss from operations   (184,786 )     (16,249 )  
    Add: Amortization of intangible assets acquired through business combinations   11,089       11,211    
    Add: Equity-based compensation   7,319       15,582    
    Add: Transaction, integration, and restructuring expenses   1,265       8,534    
    Add: Goodwill impairment charge   176,531       —    
    Add: Other non-core items   560       (528 )  
    Adjusted Operating Income   11,978       18,550    
    Less: Interest (expense) income, net   (381 )     111    
    Less: Recurring income tax benefit   352       780    
    Less: Foreign currency (loss) gain   (969 )     373    
    Less: Tax impacts of adjustments to net loss   (4,008 )     (6,772 )  
    Adjusted Net Income $ 6,972     $ 13,042    
    Shares for Adjusted Net Income Per Diluted Share (a)   151,800,030       156,634,698    
    Adjusted Net Income Per Share $ 0.05     $ 0.08    
             
    (a) 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 162,079,150 and 164,977,953 as of March 31, 2025 and 2024, respectively.
             
    Reconciliation of GAAP Gross Profit and Margin to Adjusted Gross Profit and Margin
    (in thousands, except percentages; unaudited)
                     
        Three Months Ended March 31,
         2025    2024
    (in thousands)   Amount   % of Revenue   Amount   % of Revenue
    Reported gross profit and margin   $ 43,760   74 %   $ 50,382   79 %
    Amortization of intangible assets acquired through business combinations     3,153   5 %     2,443   4 %
    Equity compensation costs     160   0 %     271   0 %
    Adjusted gross profit and margin   $ 47,073   80 %   $ 53,096   84 %
                     
    Reconciliation of GAAP Net Loss and Margin to Adjusted EBITDA and Margin
    (in thousands, except percentages; unaudited)
                     
      Three Months Ended March 31,  
      2025   2024  
      Amount   % of Revenue   Amount   % of Revenue  
    Net loss and margin $ (155,093 )     (262 )%   $ (12,718 )   (20 )%  
    Interest expense (income), net   381       1 %     (111 )   (0 )%  
    Benefit from income taxes   (10,886 )     (18 )%     (780 )   (1 )%  
    Loss on partial extinguishment of debt   507       1 %     —     0 %  
    Depreciation & amortization   13,817       23 %     12,684     20 %  
    EBITDA and margin   (151,274 )     (256 )%     (925 )   (1 )%  
    Other income, net (a)   (19,695 )     (33 )%     (2,640 )   (4 )%  
    Equity-based compensation (b)   7,319       12 %     15,582     25 %  
    Transaction, integration, and restructuring expenses (c)   1,265       2 %     8,534     13 %  
    Goodwill impairment (d)   176,531       298 %     —     0 %  
    Other non-core items (e)   560       1 %     (528 )   (1 )%  
    Adjusted EBITDA and margin $ 14,706       25 %   $ 20,023     32 %  
                     
    (a) Primarily represents foreign exchange and Tax Receivable Agreement liability remeasurement 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 as well as impairment and restructuring charges related to office closures, relocations, and consolidations.
                     
      Three Months Ended March 31,          
    (in thousands) 2025   2024          
    Merger and acquisition due diligence and transaction costs $ 1,178     $ 609            
    Integration costs   557       434            
    Fair value adjustment for contingent consideration   (690 )     270            
    Restructuring charges for severance and other separation costs   28       7,221            
    Office closure and relocation restructuring charges and impairments   192       —            
    Total transaction, integration and restructuring expenses $ 1,265     $ 8,534            
                     
    (d) Goodwill impairment represents non-cash, pre-tax, goodwill impairment charges. We experienced declines in our market capitalization as a result of a sustained decrease in our stock price, which represented a triggering event requiring our management to perform a quantitative goodwill impairment test as of the end of the first quarter of 2025. As a result of the impairment test conducted, we determined that the fair value of our single reporting unit was lower than its carrying value and, accordingly, recorded the impairment charge.
     
    (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 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-recurring items.
                                   
                     
      Three Months Ended March 31,          
    (in thousands) 2025   2024          
    Non-core legal and regulatory $ 53     $ (865 )          
    Consulting and severance costs for strategic transition initiatives   168       330            
    Other non-core expenses   339       7            
    Total other non-core items $ 560     $ (528 )          
                     

    The MIL Network –

    May 9, 2025
  • MIL-OSI: Synaptics Reports Third Quarter Fiscal 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Quarterly revenues increased 12% year-over-year, driven by a 43% growth in Core IoT product sales

    Q3’25 Financial Results

    • Revenue of $266.6 million
    • GAAP gross margin of 43.4%
    • Non-GAAP gross margin of 53.5%
    • GAAP loss per share of $0.56
    • Non-GAAP diluted earnings per share of $0.90
    • Repurchased approximately 546,000 shares for $37.9 million

    SAN JOSE, Calif., May 08, 2025 (GLOBE NEWSWIRE) — Synaptics Incorporated (Nasdaq: SYNA) today reported financial results for its third quarter of fiscal 2025 ended March 29, 2025.

    Net revenue for the third quarter of fiscal 2025 was $266.6 million. GAAP net loss for the third quarter of fiscal 2025 was $21.8 million, or a loss of $0.56 per basic share. Non-GAAP net income for the third quarter of fiscal 2025 was $35.3 million, or $0.90 per diluted share.

    “We delivered another solid quarter, with revenues increasing by over 12 percent year-over-year, marking our fourth consecutive quarter of year-over-year growth. This momentum was driven by our Core IoT products, which grew 43% year-over-year in the third quarter and accounted for 25% of total sales. Our strategic initiatives in the IoT market continue to gain traction.  During the quarter, we launched several new products including Wi-Fi 7 solutions, broad markets devices, and next-generation Touch controllers that strengthen our portfolio and position the company for long-term growth,” said Ken Rizvi, Synaptics’ Interim CEO and Chief Financial Officer.

    Business Outlook
    Ken Rizvi added, “We remain focused on executing to our technology roadmap and growth initiatives, while staying agile and disciplined as we navigate the current macroeconomic and trade environment. Our balance sheet is strong and we generated over $74 million in cash flow from operations in the third quarter demonstrating the underlying strength in our business. Looking ahead, our fourth quarter guidance reflects improving demand trends, with expectations of both sequential and year-over-year revenue growth. We remain focused on delivering long-term value for our stockholders, customers, and employees.”

    The fourth quarter fiscal 2025 outlook information provided below is based on the company’s current estimates and is not a guarantee of future performance. These statements are forward-looking and actual results may differ materially. Refer to the “Cautionary Statement Regarding Forward-Looking Statements” section below for information on the factors that could cause the Company’s actual results to differ materially from these forward-looking statements.

    For the fourth quarter of fiscal 2025, the company expects:

           
      GAAP Non-GAAP Adjustment Non-GAAP
           
    Revenue $280M ± $15M N/A N/A
           
    Gross Margin* 42.5 percent ± 2.0 percent $30M ± $1M 53.5 percent ± 1.0 percent
           
    Operating Expense** $150M ± $4M $47M ± $2M $103M ± $2M
           
    Earnings (loss) per share*** ($0.68) ± $0.30 $1.68 ± $0.10 $1.00 ± $0.20
           

    * Projected Non-GAAP gross margin excludes $28.0 to $30.0 million acquisition and integration-related costs and $1.0 million share-based compensation.

    ** Projected Non-GAAP operating expense excludes $39.0 to $40.0 million in share-based compensation costs, and $6.0 to $9.0 million acquisition and integration related costs.

    *** Projected Non-GAAP earnings (loss) per share excludes $1.03 to $1.05 in share-based compensation costs, $0.94 to $0.98 acquisition and integration related costs, and ($0.30) to ($0.34) other non-cash and Non-GAAP tax adjustments.

    Earnings Call and Supplementary Materials
    The Synaptics third quarter fiscal 2025 teleconference and webcast is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET), on Thursday, May 8, 2025, during which the company may discuss forward-looking information.

    Speaker:

    • Ken Rizvi, Interim CEO and Chief Financial Officer

    To participate on the live call, analysts and investors should pre-register at Synaptics Q3 FY2025 Earnings Call Registration.
    https://register-conf.media-server.com/register/BI116ee59c921049ac96b9faa761d08c9c.

    Supplementary slides, a copy of the prepared remarks, and a live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the company’s website at https://investor.synaptics.com/.

    About Synaptics Incorporated:
    Synaptics (Nasdaq: SYNA) is driving innovation in AI at the Edge, bringing AI closer to end users and transforming how we engage with intelligent connected devices, whether at home, at work, or on the move. As a go-to partner for forward-thinking product innovators, Synaptics powers the future with its cutting-edge Synaptics Astra™ AI-Native embedded compute, Veros™ wireless connectivity, and multimodal sensing solutions. We’re making the digital experience smarter, faster, more intuitive, secure, and seamless. From touch, display, and biometrics to AI-driven wireless connectivity, video, vision, audio, speech, and security processing, Synaptics is a force behind the next generation of technology enhancing how we live, work, and play. Follow Synaptics on LinkedIn, X and Facebook, or visit synaptics.com.

    Use of Non-GAAP Financial Information
    In evaluating its business, Synaptics considers and uses Non-GAAP Net Income, which we define as net income excluding share-based compensation, acquisition-related costs, and certain other non-cash or recurring and non-recurring items the company does not believe are indicative of its core operating performance, as a supplemental measure of operating performance. Non-GAAP Net Income is not a measurement of the company’s financial performance under GAAP and should not be considered as an alternative to GAAP Net Income. The company presents Non-GAAP Net Income because it considers it an important supplemental measure of its performance since it facilitates operating performance comparisons from period to period by eliminating potential differences in net income caused by the existence and timing of share-based compensation charges, acquisition and integration-related costs, restructuring costs, and certain other non-cash or recurring and non-recurring items. Non-GAAP Net Income has limitations as an analytical tool and should not be considered in isolation or as a substitute for the company’s GAAP Net Income. The principal limitations of this measure are that it does not reflect the company’s actual expenses and may thus have the effect of inflating its net income and net income per share as compared to its operating results reported under GAAP. In addition, the company presents components of Non-GAAP Net Income, such as Non-GAAP Gross Margin, Non-GAAP operating expenses and Non-GAAP operating margin, for similar reasons.

    As presented in the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” tables that follow, Non-GAAP Net Income and each of the other Non-GAAP financial measures excludes one or more of the following items:

    Acquisition and integration-related costs
    Acquisition and integration-related costs primarily consist of:

    • amortization of purchased intangibles, which include acquired intangibles such as developed technology, customer relationships, trademarks, backlog, licensed technology, patents, and in-process technology when post-acquisition development is determined to be substantively complete;
    • inventory fair value adjustments affecting the carrying value of inventory acquired in an acquisition;
    • transitory post-acquisition incentive programs negotiated in connection with an acquired business or designed to encourage post-acquisition retention of key employees; and
    • legal and consulting costs directly associated with acquisitions, potential acquisitions and refinancing costs, including non-recurring acquisition related costs and services.

    These acquisition and integration-related costs are not factored into the company’s evaluation of its ongoing business operating performance or potential acquisitions, as they are not considered as part of the company’s principal operations. Further, the amount of these costs can vary significantly from period to period based on the terms of an earn-out arrangement, revisions to assumptions that went into developing the estimate of the contingent consideration associated with an earn-out arrangement, the size and timing of an acquisition, the lives assigned to the acquired intangible assets, and the maturity of the business acquired. Excluding acquisition related costs from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability and potential earnings volatility associated with purchase accounting and acquisition-related items.

    Share-based compensation
    Share-based compensation expense relates to employee equity award programs and the vesting of the underlying awards, which includes stock options, deferred stock units, market stock units, performance stock units, phantom stock units and the employee stock purchase plan. Share-based compensation settled with stock, which includes stock options, deferred stock units, market stock units, performance stock units and the employee stock purchase plan, is a non-cash expense, while share-based compensation settled with cash, which includes phantom stock units, is a cash expense. Settlement of all employee equity award programs, whether settled with cash or stock, varies in amount from period to period and is dependent on market forces that are often beyond the company’s control. As a result, the company excludes share-based compensation from its internal operating forecasts and models. The company believes that Non-GAAP measures reflecting adjustments for share-based compensation provide investors with a basis to compare the company’s principal operating performance against the performance of peer companies without the variability created by share-based compensation resulting from the variety of equity-linked compensatory awards used by other companies and the varying methodologies and assumptions used.

    Intangible asset impairment charge
    Intangible asset impairment charge represents the excess carrying value of an indefinite-lived asset over its fair value. The intangible asset impairment charge is a non-cash charge. The company excludes intangible asset impairment charge from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures, reflecting adjustments for intangible asset impairment charge, provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by the intangible asset impairment charge.

    Restructuring costs
    Restructuring costs are costs incurred to address cost structure inefficiencies of acquired or existing business operations and consist primarily of employee termination, asset disposal and office closure costs, including the reversal of such costs. As a result, the company excludes restructuring costs from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures reflecting adjustments for restructuring costs provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by restructuring costs designed to address cost structure inefficiencies of acquired or existing business operations.

    Site remediation accrual
    Site remediation accrual represents an update to the estimated future costs associated with the ongoing planning and remediation of a site contamination project from an acquisition. As we evaluate progress on our ongoing remediation effort and as we work with governmental organizations to update our remediation plan to meet the evolving guidelines, we estimate costs associated with plan revisions to determine if our liability has changed. Excluding the site remediation accrual from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with the site remediation accrual.

    Legal settlement accruals and other
    Legal settlement accruals and other represent our estimated cost of settling legal claims and any obligations to indemnify a counterparty against third party claims that are unusual or infrequent. As a result, the company will exclude these settlement charges from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that non-GAAP measures reflecting an adjustment for settlement charges provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by unusual or infrequent settlement accruals designed to address non-recurring or non-routine costs.

    Loss on early extinguishment of debt
    Loss on extinguishment of debt represents a non-cash item based on the difference in the carrying value of the debt and the fair value of the debt when extinguished. Loss on early extinguishment of debt is excluded from Non-GAAP results as it is non-cash. Excluding loss on early extinguishment of debt from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with loss on early extinguishment of debt.

    Other non-cash items
    Other non-cash items include non-cash amortization of debt discount and issuance costs. These items are excluded from Non-GAAP results as they are non-cash. Excluding other non-cash items from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with other non-cash items.

    Non-GAAP tax adjustments
    The company forecasts its long-term Non-GAAP tax rate in order to provide investors with improved long-term modeling accuracy and consistency across financial reporting periods by eliminating the effects of certain items in our Non-GAAP net income and Non-GAAP net income per share, including the type and amount of share-based compensation, the taxation of post-acquisition intercompany intellectual property cross-licensing or transfer transactions, and the impact of other acquisition items that may or may not be tax deductible. The company intends to evaluate its long-term Non-GAAP tax rate annually for significant events, including material tax law changes in the major tax jurisdictions in which the company operates, corporate organizational changes related to acquisitions or tax planning opportunities, and substantive changes in our geographic earnings mix.

    Cautionary Statement Regarding Forward-Looking Statements

    This press release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements related to the company’s current expectations and projections relating to its financial condition, results of operations, including the company’s financial guidance for fourth quarter fiscal 2025, plans, objectives, future performance and business, including the expected benefits from the transaction with Broadcom. Such forward-looking statements may include words such as “expect,” “anticipate,” “intend,” “believe,” “estimate,” “plan,” “target,” “strategy,” “continue,” “may,” “commit,” “will,” “should,” variations of such words, or other words and terms of similar meaning. All forward-looking statements are based upon the company’s current expectations or various assumptions. The company’s expectations and assumptions are expressed in good faith, and the company believes there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including risks related to  macroeconomic uncertainties in the U.S. and globally, including trade tensions, tariffs, supply chain disruptions, and inflation, which may adversely affect our products and those of our customers and suppliers; risks related to the company’s dependence on its solutions for the Core IoT and Enterprise and Automotive product applications market for a substantial portion of its revenue; the volatility of the company’s net revenue from its solutions for Core IoT and Enterprise and Automotive product applications; the company’s dependence on one or more large customers; the company’s exposure to industry downturns and cyclicality in its target markets; the company’s ability to successfully offer product solutions for new markets; the company’s expectations regarding technology and strategic investments and the anticipated timing or benefits thereof; the company’s ability to execute on its cost reduction initiatives and to achieve expected synergies and expense reductions; the company’s ability to maintain and build relationships with its customers; the company’s dependence on third parties to maintain satisfactory manufacturing yields and deliverable schedule; the company’s indemnification obligations for any third party claims;  risks related to global and geopolitical tensions, regional instabilities and hostilities (including the conflict in the Middle East), economic volatility, and regulatory changes, including tariff increases, any of which may lead to reduced customer demand, supply chain disruptions, and increased costs, which could require operational adjustments such as reductions in force, adversely affecting our business and results of operations; risks related to the company’s ability to recruit and retain key personnel, particularly during a CEO transition period; the company’s ability to realize anticipated benefits from the transaction with Broadcom, the company’s ability to grow sales and expand into the serviceable wireless market as expected; risks related to our ability to deliver expected financial or strategic benefits from investing in growth while simultaneously returning capital to shareholders through share repurchases; and other risks as identified in the “Risk Factors,” “Management’ Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of the company’s most recent Annual Report on Form 10-K and the company’s most recent Quarterly Report on Form 10-Q; and other risks as identified from time to time in the company’s Securities and Exchange Commission reports. For any forward-looking statements contained in this press release, the company claims ​the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and the company assumes no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

    Synaptics and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners.

    For more information, please contact:
    Munjal Shah
    Head of Investor Relations
    +1-408-518-7639
    munjal.shah@synaptics.com

     
    SYNAPTICS INCORPORATED
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In millions)
    (Unaudited)
     
      March 2025   June 2024
    ASSETS      
    Current Assets:      
    Cash and cash equivalents $ 360.4     $ 876.9  
    Short-term investments   61.0       —  
    Accounts receivable, net   132.0       142.4  
    Inventories, net   132.9       114.0  
    Prepaid expenses and other current assets   26.3       29.0  
    Total current assets   712.6       1,162.3  
    Property and equipment, net   71.0       75.5  
    Goodwill   872.3       816.4  
    Acquired intangibles, net   296.3       288.4  
    Deferred tax assets   389.0       345.6  
    Other non-current assets   213.1       136.8  
    Total assets $ 2,554.3     $ 2,825.0  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current Liabilities:      
    Accounts payable $ 90.0     $ 87.5  
    Accrued compensation   46.7       27.4  
    Other accrued liabilities   110.8       156.3  
    Current portion of long-term debt   —       6.0  
    Total current liabilities   247.5       277.2  
    Long-term debt   834.2       966.9  
    Other long-term liabilities   85.6       114.1  
    Total liabilities   1,167.3       1,358.2  
    Stockholders’ Equity:      
    Common stock and additional paid-in capital   1,183.2       1,107.1  
    Treasury stock   (990.8 )     (878.0 )
    Retained earnings   1,194.6       1,237.7  
    Total stockholders’ equity   1,387.0       1,466.8  
    Total liabilities and stockholders’ equity $ 2,554.3     $ 2,825.0  
                   
    SYNAPTICS INCORPORATED
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (In millions, except per share data)
    (Unaudited)
     
      Three Months Ended   Nine Months Ended
      March   March
        2025       2024       2025       2024  
    Net revenue $ 266.6     $ 237.3     $ 791.5     $ 712.0  
    Cost of revenue   150.8       127.0       432.6       385.6  
    Gross margin   115.8       110.3       358.9       326.4  
    Operating expenses:              
    Research and development   88.6       83.4       253.2       251.9  
    Selling, general, and administrative   34.7       40.5       134.2       122.5  
    Acquired intangibles amortization (1)   4.5       4.0       12.1       13.4  
    Intangible asset impairment charges (2)   13.8       —       13.8       —  
    Restructuring costs (3)   0.5       (0.2 )     15.5       9.1  
    Total operating expenses   142.1       127.7       428.8       396.9  
    Operating loss   (26.3 )     (17.4 )     (69.9 )     (70.5 )
    Interest and other expense, net   (1.1 )     (5.9 )     (11.3 )     (17.4 )
    Loss on early extinguishment of debt   —       —       (6.5 )     —  
    Loss before benefit from income taxes   (27.4 )     (23.3 )     (87.7 )     (87.9 )
    Benefit from income taxes   (5.6 )     (5.2 )     (44.6 )     (5.2 )
    Net loss $ (21.8 )   $ (18.1 )   $ (43.1 )   $ (82.7 )
    Net loss per share:              
    Basic $ (0.56 )   $ (0.46 )   $ (1.09 )   $ (2.12 )
    Diluted $ (0.56 )   $ (0.46 )   $ (1.09 )   $ (2.12 )
    Shares used in computing net loss per share:              
    Basic   39.0       39.3       39.5       39.1  
    Diluted   39.0       39.3       39.5       39.1  
     
    (1) These acquisition related costs consist primarily of amortization associated with certain acquired intangible assets.

    (2) Intangible asset impairment charges represent the excess carrying value of certain indefinite-lived asset over its fair value.

    (3) Restructuring costs primarily include severance related costs associated with operational restructurings.

     
    SYNAPTICS INCORPORATED
    Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
    (In millions, except per share data)
    (Unaudited)
     
      Three Months Ended   Nine Months Ended
      March   March
        2025       2024       2025       2024  
    GAAP gross margin $ 115.8     $ 110.3     $ 358.9     $ 326.4  
    Acquisition and integration related costs   26.6       14.3       68.2       46.5  
    Share-based compensation   0.3       1.0       (2.1 )     3.2  
    Non-GAAP gross margin $ 142.7     $ 125.6     $ 425.0     $ 376.1  
    GAAP gross margin – percentage of revenue   43.4 %     46.5 %     45.3 %     45.8 %
    Acquisition and integration related costs – percentage of revenue   10.0 %     6.0 %     8.6 %     6.5 %
    Share-based compensation – percentage of revenue   0.1 %     0.4 %     (0.2 %)     0.5 %
    Non-GAAP gross margin – percentage of revenue   53.5 %     52.9 %     53.7 %     52.8 %
    GAAP research and development expense $ 88.6     $ 83.4     $ 253.2     $ 251.9  
    Share-based compensation   (18.5 )     (15.0 )     (48.6 )     (45.7 )
    Non-GAAP research and development expense $ 70.1     $ 68.4     $ 204.6     $ 206.2  
    GAAP selling, general, and administrative expense $ 34.7     $ 40.5     $ 134.2       122.5  
    Share-based compensation   (1.1 )     (13.9 )     (35.2 )     (43.4 )
    Acquisition and integration related costs   (1.7 )     —       (6.4 )     —  
    Site remediation accrual   —       —       —       (1.6 )
    Legal settlement accruals and other   (0.8 )     —       (3.0 )     —  
    Non-GAAP selling, general, and administrative expense $ 31.1     $ 26.6     $ 89.6     $ 77.5  
    GAAP operating loss $ (26.3 )   $ (17.4 )   $ (69.9 )   $ (70.5 )
    Acquisition and integration related costs   32.8       18.3       86.7       59.9  
    Share-based compensation   19.9       29.9       81.7       92.3  
    Legal settlement accruals and other   0.8       —       3.0       —  
    Restructuring costs   0.5       (0.2 )     15.5       9.1  
    Intangible asset impairment   13.8       —       13.8       —  
    Site remediation accrual   —       —       —       1.6  
    Non-GAAP operating income $ 41.5     $ 30.6     $ 130.8     $ 92.4  
    GAAP net loss $ (21.8 )   $ (18.1 )   $ (43.1 )   $ (82.7 )
    Acquisition and integration related costs   32.8       18.3       86.7       59.9  
    Share-based compensation   19.9       29.9       81.7       92.3  
    Restructuring costs   0.5       (0.2 )     15.5       9.1  
    Intangible asset impairment   13.8       —       13.8       —  
    Site remediation accrual   —       —       —       1.6  
    Legal settlement accruals and other   0.8       —       3.0       —  
    Loss on early extinguishment of debt   —       —       6.5       —  
    Other non-cash items   0.7       0.6       1.9       1.9  
    Non-GAAP tax adjustments   (11.4 )     (9.5 )     (61.6 )     (18.3 )
    Non-GAAP net income $ 35.3     $ 21.0     $ 104.4     $ 63.8  
    GAAP net loss per share $ (0.56 )   $ (0.46 )   $ (1.09 )   $ (2.12 )
    Acquisition and integration related costs   0.84       0.47       2.19       1.53  
    Share-based compensation   0.51       0.76       2.07       2.36  
    Restructuring costs   0.01       (0.01 )     0.39       0.23  
    Intangible asset impairment   0.35       —       0.35       —  
    Site remediation accrual   —       —       —       0.04  
    Legal settlement accruals and other   0.02       —       0.08       —  
    Loss on early extinguishment of debt   —       —       0.16       —  
    Other non-cash items   0.02       0.02       0.05       0.05  
    Non-GAAP tax adjustments   (0.29 )     (0.24 )     (1.56 )     (0.47 )
    Share adjustment   —       (0.01 )     (0.02 )     —  
    Non-GAAP net income per share – diluted $ 0.90     $ 0.53     $ 2.62     $ 1.62  
                                   
    SYNAPTICS INCORPORATED
    CONDENSED CONSOLIDATED CASH FLOWS
    (In millions)
    (Unaudited)
     
      Nine Months Ended
      March 2025
        2025       2024  
    Net loss $ (43.1 )   $ (82.7 )
    Non-cash operating items   161.0       176.8  
    Changes in working capital   (33.1 )     (23.2 )
    Net cash provided by operating activities   84.8       70.9  
           
    Acquisition of business, net of cash and cash equivalents acquired   (198.8 )     —  
    Purchase of intangible assets   (10.0 )     (13.5 )
    Purchases of short-term investments   (61.0 )     (16.6 )
    Advance payment on intangible assets   —       (116.5 )
    Net proceeds from maturities and sales of short-term investments and other   —       26.0  
    Purchases of property and equipment   (19.2 )     (26.1 )
    Net cash used in investing activities   (289.0 )     (146.7 )
           
    Proceeds from issuance of convertible senior notes, net of issuance costs   439.5       —  
    Payment of debt issuance costs on convertible senior notes and revolving credit facility   (4.4 )     —  
    Payments for capped call transactions related to the convertible senior notes   (49.9 )     —  
    Repurchases of common stock, excluding excise taxes   (112.3 )     —  
    Equity compensation, net   (3.3 )     (17.8 )
    Repayment of debt   (583.5 )     (6.0 )
    Other   0.9       3.4  
    Net cash used in financing activities   (313.0 )     (20.4 )
    Effect of exchange rate changes on cash and cash equivalents   0.7       (0.4 )
    Net decrease in cash and cash equivalents   (516.5 )     (96.6 )
    Cash and cash equivalents, beginning of period   876.9       924.7  
    Cash and cash equivalents, end of period $ 360.4     $ 828.1  
                   

    The MIL Network –

    May 9, 2025
  • MIL-OSI: Lantronix Reports Results for Third Quarter of Fiscal 2025

    Source: GlobeNewswire (MIL-OSI)

    • Third Quarter Net Revenue of $28.5 Million
    • Third Quarter GAAP EPS of ($0.10)
    • Third Quarter Non-GAAP EPS of $0.03

    IRVINE, Calif., May 08, 2025 (GLOBE NEWSWIRE) — Lantronix Inc. (NASDAQ: LTRX), a global leader of compute and connectivity for the Internet of Things (IoT) solutions enabling Artificial Intelligence (AI) Edge Intelligence, today reported results for its third quarter of fiscal 2025.

    Despite a complex macroeconomic environment, Lantronix delivered revenue within guidance and continued executing its long-term strategy toward becoming a leader in intelligent edge computing.

    Lantronix continued its leadership in AI edge intelligence and industrial connectivity through several key initiatives in the last quarter. The company enabled Teledyne/FLIR’s AI-driven drone thermal camera, validating the performance and reliability of its Open-Q™ platform in mission-critical edge vision systems. Further expanding its AI-capable compute portfolio, Lantronix launched the Open-Q™ 8550CS SoM, built on Qualcomm’s advanced QCS8550 processor, which delivers premium AI/ML performance and is designed for next-generation industrial and robotics applications.

     Q3 FY2025 Financial Results

    • Net Revenue: $28.5 million, in range of $27.0 million to $31.0 million guidance
    • GAAP EPS: ($0.10), compared to ($0.01) in Q3 FY2024 and ($0.06) in Q2 FY2025
    • Non-GAAP EPS: $0.03, compared to $0.11 in Q3 FY2024 and $0.04 in Q2 FY2025

    “We’re positioning Lantronix to lead the next wave of industrial and enterprise transformation at the edge,” said Saleel Awsare, president and CEO of Lantronix. “This quarter reflects continued investment in high-growth areas — from AI-enabled gateways to 5G connectivity — while advancing our innovation roadmap, global partnerships and talent base.”

    Q4 FY2025 Business Outlook

    Lantronix expects the following results for the fourth fiscal quarter ending June 30, 2025:

    • Revenue: $26.5 million to $30.5 million
    • Non-GAAP EPS: $0.00 to $0.02

    Conference Call and Webcast

    Management will host an investor conference call and audio webcast on Thursday, May 8, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss its results for the third quarter of fiscal 2025 that ended March 31, 2025. To access the live conference call, investors should dial 1-844-802-2442 (U.S.) or 1-412-317-5135 (international) and indicate they are participating in the Lantronix fiscal 2025 third-quarter call.

    Investors can access a conference call replay starting at approximately 8:00 p.m. Pacific Time on May 8, 2025, on the Lantronix website. A telephonic replay will also be available through May 15, 2025, by dialing 1-877-344-7529 (US) or 1-412-317-0088 (international) or Canada Toll-Free 855-669-9658 and entering passcode 3110521.

    About Lantronix

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

    For more information, visit the Lantronix website.

    Discussion of Non-GAAP Financial Measures

    Lantronix believes that the presentation of non-GAAP financial information, when presented in conjunction with the corresponding GAAP measures, provides important supplemental information to management and investors regarding financial and business trends relating to the company’s financial condition and results of operations. Management uses the aforementioned non-GAAP measures to monitor and evaluate ongoing operating results and trends to gain an understanding of our comparative operating performance. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations of the non-GAAP financial measures to the financial measures calculated in accordance with GAAP should be carefully evaluated. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

    Non-GAAP net loss consists of net loss excluding (i) share-based compensation and the employer portion of withholding taxes on stock grants, (ii) depreciation and amortization, (iii) interest income (expense), (iv) other income (expense), (v) income tax provision (benefit), (vi) restructuring, severance and related charges, (vii) acquisition related costs, (viii) impairment of long-lived assets, (ix) amortization of purchased intangibles, (x) amortization of manufacturing profit in acquired inventory, (xi) fair value remeasurement of earnout consideration, and (xii) loss on extinguishment of debt.

    Non-GAAP EPS is calculated by dividing non-GAAP net loss by non-GAAP weighted-average shares outstanding (diluted). For purposes of calculating non-GAAP EPS, the calculation of GAAP weighted-average shares outstanding (diluted) is adjusted to exclude share-based compensation, which for GAAP purposes is treated as proceeds assumed to be used to repurchase shares under the GAAP treasury stock method.

    Guidance on earnings per share growth is provided only on a non-GAAP basis due to the inherent difficulty of forecasting the timing or amount of certain items that have been excluded from the forward-looking non-GAAP measures, and a reconciliation to the comparable GAAP guidance has not been provided because certain factors that are materially significant to Lantronix’s ability to estimate the excluded items are not accessible or estimable on a forward-looking basis without unreasonable effort.

    Forward-Looking Statements

    This news release contains forward-looking statements, including statements concerning our revenue and earnings expectations for the fourth fiscal quarter of 2025, our positioning to capitalize on the next wave of industrial and enterprise transformation using edge computing, and our expectations regarding high-growth market areas. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. We have based our forward-looking statements on our current expectations and projections about trends affecting our business and industry and other future events. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Forward-looking statements are subject to substantial risks and uncertainties that could cause our results or experiences, or 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 news release. Other factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to: the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to changes in U.S. trade policy, including recently increased or future tariffs, a pandemic or similar outbreak, wars and recent conflicts in Europe, Asia and the Middle East, hostilities in the Red Sea, or other causes; our ability to successfully convert our backlog and current demand;  the impact of a pandemic or similar outbreak on our business, employees, customers, supply and distribution chains and the global economy; our ability to successfully implement our acquisition strategy or integrate acquired companies; uncertainty as to the future profitability of acquired businesses, and delays in the realization of, or the failure to realize, any accretion from acquisition transactions; acquiring, managing and integrating new operations, businesses or assets, and the associated diversion of management attention or other related costs or difficulties; our ability to continue to generate revenue from products sold into mature markets; our ability to develop, market, and sell new products; our ability to succeed with our new software offerings; our use of AI may result in reputational, competitive or financial harm and liability; fluctuations in our revenue due to the project-based timing of orders from certain customers; unpredictable timing of our revenues due to the lengthy sales cycle for our products and services and potential delays in customer completion of projects; our ability to accurately forecast future demand for our products; delays in qualifying revisions of existing products; constraints or delays in the supply of, or quality control issues with, certain materials or components; difficulties associated with the delivery, quality or cost of our products from our contract manufacturers or suppliers; risks related to the outsourcing of manufacturing and international operations; difficulties associated with our distributors or resellers; intense competition in our industry and resultant downward price pressure; rises in inventory levels and inventory obsolescence; undetected software or hardware errors or defects in our products; cybersecurity risks; our ability to obtain appropriate industry certifications or approvals from governmental regulatory bodies; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to protect patents and other proprietary rights and avoid infringement of others’ proprietary technology rights; issues relating to the stability of our financial and banking institutions and relationships; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; the impact of rising interest rates; our ability to attract and retain qualified management; and any additional factors included in our Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on Sept. 9, 2024, including in the section entitled “Risk Factors” in Item 1A of Part I of that report; in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025, expected to be filed with the SEC on or about May 9, 2025 including in the section entitled “Risk Factors” in Item 1A of Part II of such report; and in our other public filings with the SEC. In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

    ©2025 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark. Other trademarks and trade names are those of their respective owners.

    Lantronix Analyst and Investor Contact:        

    investors@lantronix.com

    LANTRONIX, INC.
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
           
      March 31,
      June 30,
      2025   2024
    Assets      
    Current assets:      
    Cash and cash equivalents $ 19,999     $ 26,237  
    Accounts receivable, net   23,648       31,279  
    Inventories, net   28,151       27,698  
    Contract manufacturers’ receivables   1,637       1,401  
    Prepaid expenses and other current assets   3,029       2,335  
    Total current assets   76,464       88,950  
    Property and equipment, net   2,768       4,016  
    Goodwill   31,089       27,824  
    Intangible assets, net   4,310       5,251  
    Lease right-of-use assets   8,974       9,567  
    Other assets   584       600  
    Total assets $ 124,189     $ 136,208  
           
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 11,005     $ 10,347  
    Accrued payroll and related expenses   3,905       5,836  
    Current portion of long-term debt, net   3,063       3,002  
    Other current liabilities   10,594       10,971  
    Total current liabilities   28,567       30,156  
    Long-term debt, net   9,458       13,219  
    Other non-current liabilities   10,694       11,478  
    Total liabilities   48,719       54,853  
           
    Commitments and contingencies      
           
    Stockholders’ equity:      
    Common stock   4       4  
    Additional paid-in capital   306,858       304,001  
    Accumulated deficit   (231,763 )     (223,021 )
    Accumulated other comprehensive income   371       371  
    Total stockholders’ equity   75,470       81,355  
    Total liabilities and stockholders’ equity $ 124,189     $ 136,208  
           
    LANTRONIX, INC.  
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
                                           
                                           
      Three Months Ended   Nine Months Ended
      March 31,
      December 31,
      March 31,
      March 31,
      2025
      2024
      2024
      2025
      2024
    Net revenue $ 28,500     $ 31,161     $ 41,183     $ 94,084     $ 111,252  
    Cost of revenue   16,097       17,877       24,679       53,922       65,620  
    Gross profit   12,403       13,284       16,504       40,162       45,632  
    Operating expenses:                                      
    Selling, general and administrative   8,959       8,811       9,753       27,237       29,147  
    Research and development   4,463       4,984       5,186       14,403       15,017  
    Restructuring, severance and related charges   1,581       193       350       2,674       900  
    Acquisition-related costs   100       208       –       337       –  
    Fair value remeasurement of earnout consideration   –       –       –       –       (9 )
    Amortization of intangible assets   879       1,248       1,310       3,378       4,004  
    Total operating expenses   15,982       15,444       16,599       48,029       49,059  
    Loss from operations   (3,579 )     (2,160 )     (95 )     (7,867 )     (3,427 )
    Interest expense, net   (159 )     (126 )     (171 )     (404 )     (741 )
    Other income (loss), net   (19 )     8       2       (48 )     (2 )
    Loss before income taxes   (3,757 )     (2,278 )     (264 )     (8,319 )     (4,170 )
    Provision for income taxes   111       94       159       423       732  
    Net loss $ (3,868 )   $ (2,372 )   $ (423 )   $ (8,742 )   $ (4,902 )
    Net loss per share – basic and diluted $ (0.10 )   $ (0.06 )   $ (0.01 )   $ (0.23 )   $ (0.13 )
    Weighted-average common shares – basic and diluted   38,820       38,631       37,509       38,493       37,283  
                                           
    LANTRONIX, INC.
    UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS
    (In thousands, except per share data)
                       
      Three Months Ended    Nine Months Ended
      March 31,   December 31,
      March 31,    March 31, 
       2025     2024     2024     2025     2024 
                       
    GAAP net loss $ (3,868 )   $ (2,372 )   $ (423 )   $ (8,742 )   $ (4,902 )
    Non-GAAP adjustments:                  
    Cost of revenue:                  
    Share-based compensation   34       48       66       146       171  
    Employer portion of withholding taxes on stock grants   –       2       1       7       6  
    Amortization of manufacturing profit in acquired inventory   44       –       190       44       696  
    Depreciation and amortization   101       114       144       338       339  
    Total adjustments to cost of revenue   179       164       401       535       1,212  
    Selling, general and administrative:                  
    Share-based compensation   1,159       1,044       1,337       3,329       4,238  
    Employer portion of withholding taxes on stock grants   13       20       21       111       68  
    Depreciation and amortization   345       348       352       1,044       1,024  
    Total adjustments to selling, general and administrative   1,517       1,412       1,710       4,484       5,330  
    Research and development:                  
    Share-based compensation   324       421       469       1,155       1,381  
    Employer portion of withholding taxes on stock grants   4       2       9       25       27  
    Depreciation and amortization   56       111       76       236       236  
    Total adjustments to research and development   384       534       554       1,416       1,644  
    Restructuring, severance and related charges   1,581       193       350       2,674       900  
    Acquisition related costs   100       208       –       337       –  
    Fair value remeasurement of earnout consideration   –       –       –       –       (9 )
    Amortization of purchased intangible assets   879       1,248       1,310       3,378       4,004  
    Litigation settlement cost   –       158       –       198       –  
    Total non-GAAP adjustments to operating expenses   4,461       3,753       3,924       12,487       11,869  
    Interest expense, net   159       126       171       404       741  
    Other (income) expense, net   19       (8 )     (2 )     48       2  
    Provision for income taxes   111       94       159       423       732  
    Total non-GAAP adjustments   4,929       4,129       4,653       13,897       14,556  
    Non-GAAP net income $ 1,061     $ 1,757     $ 4,230     $ 5,155     $ 9,654  
                       
                       
    Non-GAAP net income per share – diluted $ 0.03     $ 0.04     $ 0.11     $ 0.13     $ 0.25  
                       
    Denominator for GAAP net income (loss) per share – diluted   38,820       38,631       37,509       38,493       37,283  
    Non-GAAP adjustment   1,300       953       1,674       1,034       1,021  
    Denominator for non-GAAP net income per share – diluted   40,120       39,584       39,183       39,527       38,304  
                       
    GAAP cost of revenue $ 16,097     $ 17,877     $ 24,679     $ 53,922     $ 65,620  
    Non-GAAP adjustments to cost of revenue   (179 )     (164 )     (401 )     (535 )     (1,212 )
    Non-GAAP cost of revenue   15,918       17,713       24,278       53,387       64,408  
    Non-GAAP gross profit $ 12,582     $ 13,448     $ 16,905     $ 40,697     $ 46,844  
    Non-GAAP gross margin   44.1 %     43.2 %     41.0 %     43.3 %     42.1 %
                       
    LANTRONIX, INC.
    UNAUDITED NET REVENUES BY PRODUCT LINE AND REGION
    (In thousands)
                       
      Three Months Ended   Nine Months Ended
      March 31,
    2025
      December 31,
    2024
      March 31,
    2024
      March 31,
    2025
      March 31,
    2024
    Embedded IoT Solutions $ 11,990   $ 10,784   $ 12,452   $ 36,161   $ 35,589
    IoT System Solutions   14,730     18,592     26,789     52,081     68,847
    Software & Services   1,780     1,785     1,942     5,842     6,816
      $ 28,500   $ 31,161   $ 41,183   $ 94,084   $ 111,252
                       
                       
      Three Months Ended   Nine Months Ended
      March 31,
    2025
      December 31,
    2024
      March 31,
    2024
      March 31,
    2025
      March 31,
    2024
    Americas $ 16,497   $ 16,386   $ 17,543   $ 50,303   $ 61,077
    EMEA   6,048     9,036     18,354     25,568     37,831
    Asia Pacific Japan   5,955     5,739     5,286     18,213     12,344
      $ 28,500   $ 31,161   $ 41,183   $ 94,084   $ 111,252
                       

    The MIL Network –

    May 9, 2025
  • MIL-OSI: CEA Industries Inc. Provides Update on Fat Panda Acquisition 

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

    Fat Panda Preliminary 2024 Financial Highlights (Unaudited)

    • Revenue of CAD $38.5 million (USD $28.5 million) increased 14% from CAD $33.8 million (USD $25.4 million) in fiscal 2023
    • Gross Margins of 39% in fiscal 2024 compared to 46% in fiscal 2023
    • Operating Expenses improved 11% to CAD $13.4 million (USD $9.9 million) in fiscal 2024 from CAD $15.1 million (USD $11.3 million) in fiscal 2023
    • Net Income of CAD $1.2 million (USD $0.9 million), an increase of 126% from CAD $0.5 million (USD $0.4 million) in fiscal 2023 after accounting for one time ownership distributions
    • Adjusted EBITDA (before ownership distributions) of CAD $8.0 million (USD $5.9 million), reflecting a 16% year-over-year improvement from CAD $6.8 million (USD $5.1 million) in fiscal 2023

    “With the acquisition nearing completion, we are thrilled for this transformative step in our strategic evolution as a public company,” said Tony McDonald, Chairman and CEO of CEA Industries. “As a market-leading vape retailer and manufacturer, Fat Panda offers an extensive network of retail locations and dominant market share in central Canada. Their vertically integrated operations, robust e-commerce presence, and experienced management create a compelling opportunity. Further, this transaction positions us strategically to capitalize on the fastest-growing segment of the nicotine market, enhancing our competitive advantages. With Fat Panda’s proven track record of resilience, scalability, and double-digit growth, we are confident that combining their solid foundation with CEA’s resources will drive accretive growth and deliver meaningful long-term value to our shareholders.”

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

    Acquisition Disclaimers

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

    About CEA Industries Inc.

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

    Forward Looking Statements

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

    Non-GAAP Financial Measures

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

    Investor Contact:

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

    The MIL Network –

    May 9, 2025
  • MIL-OSI: IBEX Reports Record Quarterly Revenue and EPS, Returns to Double-Digit Growth, Raises Fiscal Year Guidance

    Source: GlobeNewswire (MIL-OSI)

    • Quarterly revenue grew 11% versus prior year quarter – highest growth in ten quarters
    • Adjusted EPS of $0.82 – an increase of 18% to prior year quarter
    • Makes strategic entry into India – launching with leading healthcare client
    • Board authorizes a new $15 million share repurchase plan

    WASHINGTON, May 08, 2025 (GLOBE NEWSWIRE) — IBEX Limited (“ibex”), a leading provider in global business process outsourcing and end-to-end customer engagement technology solutions, today announced financial results for its third fiscal quarter ended March 31, 2025.

      Three months ended March 31, 2025   Nine months ended March 31, 2025
    ($ millions, except per share amounts)   2025       2024     Change     2025       2024     Change
    Revenue $ 140,736     $ 126,795       11.0 %   $ 411,135     $ 384,038       7.1 %
    Net income $ 10,469     $ 10,310       1.5 %   $ 27,268     $ 23,810       14.5 %
    Net income margin   7.4 %     8.1 %     (70) bps       6.6 %     6.2 %     40 bps  
    Adjusted net income (1) $ 11,787     $ 12,558       (6.1)%     $ 30,434     $ 28,156       8.1 %
    Adjusted net income margin (1)   8.4 %     9.9 %     (150) bps       7.4 %     7.3 %     10 bps  
    Adjusted EBITDA (1) $ 19,380     $ 19,204       0.9 %   $ 51,505     $ 47,239       9.0 %
    Adjusted EBITDA margin (1)   13.8 %     15.1 %     (130) bps       12.5 %     12.3 %     20 bps  
    Earnings per share – diluted (2) $ 0.73     $ 0.57       27.5 %   $ 1.70     $ 1.29       31.9 %
    Adjusted earnings per share – diluted (1,2) $ 0.82     $ 0.70       17.9 %   $ 1.90     $ 1.53       24.4 %
                           
    (1)See accompanying Exhibits for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
    (2)The current period percentages are calculated based on exact amounts, and therefore may not recalculate exactly using rounded numbers as presented.
     

    “Marking the continuation of a strong first half for fiscal year 2025, I am proud to report yet another quarter of record financial results,” said Bob Dechant, ibex CEO. “Ibex returned to double-digit top-line revenue growth with 11%, our highest rate in ten quarters. Our growth continues to be driven by outstanding performance within our embedded base clients, new client wins, and our ability to drive innovative AI solutions across our clients. I am excited to report that our new logo team performed extremely well with four signature wins in the quarter for a total of 12 year to date. Importantly, we achieved a major strategic milestone in the quarter with the seamless launch for a leading Healthcare company in our newest location, India. Operating in this key location has been a strategic priority for our company and further enhances our client delivery options.”

    “With the strength and trajectory of our business, we are raising guidance for both revenue and adjusted EBITDA, as well as announcing a newly authorized share repurchase plan, reflecting the board of directors’ and management’s confidence in ibex,” added Dechant.

    Third Quarter Financial Performance
    Revenue

    • Revenue of $140.7 million, an increase of 11.0% from $126.8 million in the prior year quarter. Growth was driven in our top three verticals; HealthTech (+20.0%), Travel, Transportation and Logistics (+18.7%), and Retail & E-commerce (+14.6%), along with growth in the digital acquisition business.

    Net Income and Earnings Per Share

    • Net income increased slightly to $10.5 million compared to $10.3 million in the prior year quarter. Net income was favorably impacted by an increase in gross margin as a result of the impact of revenue growth particularly in our higher margin offshore regions, offset by increases in selling, general, and administrative, interest, and income tax expenses.
    • Diluted earnings per share increased to $0.73 compared to $0.57 in the prior year quarter. Earnings per share benefited from diluted shares outstanding declining to 14.4 million compared to 18.0 million in the prior year quarter as a result of our share repurchase activities.
    • Net income margin decreased to 7.4% compared to 8.1% in the prior year quarter.
    • Non-GAAP adjusted net income decreased to $11.8 million compared to $12.6 million in the prior year quarter (see Exhibit 1 for reconciliation).
    • Non-GAAP adjusted diluted earnings per share increased to $0.82 compared to $0.70 in the prior year quarter (see Exhibit 1 for reconciliation).

    Adjusted EBITDA

    • Adjusted EBITDA increased to $19.4 million compared to $19.2 million in the prior year quarter (see Exhibit 2 for reconciliation).
    • Adjusted EBITDA margin decreased to 13.8% compared to 15.1% in the prior year quarter (see Exhibit 2 for reconciliation). This decrease was primarily driven by increases in selling, general, and administrative expenses including costs associated with our expansion into India.

    Cash Flow and Balance Sheet

    • Capital expenditures were $5.3 million compared to $1.7 million in the prior year quarter. The planned increase in capital expenditures during this quarter was driven by capacity expansion to meet growing demand in our offshore and nearshore regions.
    • Cash flow from operating activities was $8.8 million compared to $11.4 million in the prior year quarter. Free cash flow was $3.6 million compared to $9.7 million in the prior year quarter (see Exhibit 3 for reconciliation). Improvement in days sales outstanding in the quarter to 77 days was offset by the planned increased capital expenditures to fund growth and investments for expansion into India.
    • Net debt was $7.6 million, an improvement of $6.1 million compared to net debt of $13.7 million as of December 31, 2024. This reflects the impact of our $70 million TRGI share repurchase when compared to our net cash position of $61.2 million as of June 30, 2024 (see Exhibit 4 for reconciliation).

    “We achieved outstanding top and strong bottom line third quarter results. We delivered a multi-year high top-line performance with 11% revenue growth, over 7% fiscal year to date, with 19% growth in our highest margin offshore regions. Our adjusted EPS of $0.82, was up 18% over the prior year quarter, and was a record for our business. The continued expansion of our embedded client base and new client wins over the last year drove these excellent results,” said Taylor Greenwald, CFO of ibex.

    “The upward trend in our results over the last few quarters not only enable strategic investments in our growing AI capabilities and sales resources, but also our in-quarter entry into the India market. Importantly, these results instill continued confidence in the execution of our strategy, enabling us to again raise our fiscal year guidance, commence the newly authorized share repurchase plan, and continue to return value to shareholders.”

    Raised Fiscal Year 2025 Guidance

    • Revenue is expected to be in the range of $540 to $545 million versus a previous range of $525 to $535 million.
    • Adjusted EBITDA is expected to be in the range of $68 to $70 million versus a previous range of $68 to $69 million.
    • Capital expenditures are expected to remain in the range of $15 to $20 million.

    Share Repurchase Plan
    The board of directors (the “Board”) has authorized a share repurchase plan to commence May 12, 2025 under which the Company may repurchase up to $15 million of its shares over the next 12 months (the “Share Repurchase Plan”).

    The Company’s proposed repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations. The actual timing, number, and dollar amount of repurchase transactions will be subject to Rule 10b-18 and/or Rule 10b5-1 under the Securities Exchange Act of 1934.

    The Board will review the Share Repurchase Plan periodically and may authorize adjustment of its terms and size or suspend or discontinue the plan. The Company expects to fund the repurchases under this plan with its existing cash balance.

    The Share Repurchase Plan does not obligate the Company to acquire any particular amount of common shares, and the plan may be suspended or discontinued at any time at the Company’s discretion.

    Conference Call and Webcast Information
    IBEX Limited will host a conference call and live webcast to discuss its third quarter of fiscal year 2025 financial results at 4:30 p.m. Eastern Time today, May 8, 2025. We will also post to this section of our website the earning slides, which will accompany our conference call and live webcast, and encourage you to review the information that we make available on our website.

    Live and archived webcasts can be accessed at: https://investors.ibex.co/.

    Financial Information
    This announcement does not contain sufficient information to constitute an interim financial report as defined in Financial Accounting Standards ASC 270, “Interim Reporting.” The financial information in this press release has not been audited.

    Non-GAAP Financial Measures
    We present non-GAAP financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. We also use these measures internally to establish forecasts, budgets and operational goals to manage and monitor our business, as well as evaluate our underlying historical performance, as we believe that these non-GAAP financial measures provide a more helpful depiction of our performance of the business by encompassing only relevant and manageable events, enabling us to evaluate and plan more effectively for the future. The non-GAAP financial measures may not be comparable to other similarly titled measures of other companies, have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of our operating results as reported in accordance with accounting principles generally accepted in the United States (“GAAP”). Non-GAAP financial measures and ratios are not measurements of our performance, financial condition or liquidity under GAAP and should not be considered as alternatives to operating profit or net income / (loss) or as alternatives to cash flow from operating, investing or financing activities for the period, or any other performance measures, derived in accordance with GAAP.

    ibex is not providing a quantitative reconciliation of forward-looking non-GAAP adjusted EBITDA to the most directly comparable GAAP measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, non-recurring expenses, foreign currency gains and losses, and share-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period.

    About ibex
    ibex helps the world’s preeminent brands more effectively engage their customers with services ranging from customer support, technical support, inbound/outbound sales, business intelligence and analytics, digital demand generation, and CX surveys and feedback analytics.

    Forward Looking Statements
    In addition to historical information, this press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to attract new business and retain key clients; our profitability based on our utilization, pricing and managing costs; the potential for our clients or potential clients to consolidate; our clients deciding to enter into or further expand their insourcing activities and current trends toward outsourcing services may reverse; general economic uncertainty in global markets and unfavorable economic conditions, including inflation, rising interest rates, recession, foreign exchange fluctuations and supply-chain issues; our ability to manage our international operations, particularly in the Philippines, Jamaica, Pakistan and Nicaragua; natural events, health epidemics, global geopolitical conditions, including developing or ongoing conflicts, widespread civil unrest, terrorist attacks and other attacks of violence involving any of the countries in which we or our clients operate; our ability to anticipate, develop and implement information technology solutions that keep pace with evolving industry standards and changing client demands, including the effective adoption of Artificial Intelligence into our offerings; our ability to recruit, engage, motivate, manage and retain our global workforce; our ability to comply with applicable laws and regulations, including those regarding privacy, data protection and information security, employment and anti-corruption; the effect of cyberattacks or cybersecurity vulnerabilities on our information technology systems; our ability to realize the anticipated strategic and financial benefits of our relationship with Amazon; the impact of tax matters, including new legislation and actions by taxing authorities; and other factors discussed in the “Risk Factors” described in our periodic reports filed with the U.S. Securities and Exchange Commission (“SEC”), including our annual reports on Form 10-K, quarterly reports on Form 10-Q, and past filings on Form 20-F, and any other risk factors we include in subsequent filings with the SEC. Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

    IR Contact:  Michael Darwal, EVP, Investor Relations, ibex, michael.darwal@ibex.co
    Media Contact:  Daniel Burris, VP, Marketing and Communication, ibex, daniel.burris@ibex.co

     
    IBEX LIMITED AND SUBSIDIARIES
    Consolidated Balance Sheets
    (Unaudited)
    (in thousands)
     
      March 31,
    2025
      June 30,
    2024
    Assets      
    Current assets      
    Cash and cash equivalents $ 12,977     $ 62,720  
    Accounts receivable, net   120,035       98,366  
    Prepaid expenses   8,103       7,712  
    Due from related parties   50       192  
    Tax advances and receivables   4,976       9,080  
    Other current assets   2,523       1,888  
    Total current assets   148,664       179,958  
           
    Non-current assets      
    Property and equipment, net   30,481       29,862  
    Operating lease assets   65,726       59,145  
    Goodwill   11,832       11,832  
    Deferred tax asset, net   5,994       4,285  
    Other non-current assets   12,034       8,822  
    Total non-current assets   126,067       113,946  
    Total assets $ 274,731     $ 293,904  
           
    Liabilities and stockholders’ equity      
    Current liabilities      
    Accounts payable and accrued liabilities $ 18,430     $ 16,719  
    Accrued payroll and employee-related liabilities   29,653       30,674  
    Current deferred revenue   6,019       4,749  
    Current operating lease liabilities   14,225       12,051  
    Current debt   19,862       660  
    Due to related parties   —       60  
    Income taxes payable   821       6,083  
    Total current liabilities   89,010       70,996  
           
    Non-current liabilities      
    Non-current deferred revenue   1,060       1,128  
    Non-current operating lease liabilities   56,944       53,441  
    Long-term debt   735       867  
    Other non-current liabilities   2,801       1,673  
    Total non-current liabilities   61,540       57,109  
    Total liabilities   150,550       128,105  
           
    Stockholders’ equity      
    Common Stock   1       2  
    Additional paid-in capital   216,184       210,200  
    Treasury stock   (101,658 )     (25,367 )
    Accumulated other comprehensive loss   (6,491 )     (7,913 )
    Retained earnings / (deficit)   16,145       (11,123 )
    Total stockholders’ equity   124,181       165,799  
    Total liabilities and stockholders’ equity $ 274,731     $ 293,904  
                   
    IBEX LIMITED AND SUBSIDIARIES
    Consolidated Statements of Comprehensive Income
    (Unaudited)
    (in thousands, except per share data)
     
      Three Months Ended March 31,   Nine Months Ended March 31,
        2025       2024       2025       2024  
    Revenue $ 140,736     $ 126,795     $ 411,135     $ 384,038  
                   
    Cost of services (exclusive of depreciation and amortization presented separately below)   96,017       87,083       284,820       271,163  
    Selling, general and administrative   27,061       23,565       78,982       71,462  
    Depreciation and amortization   4,329       4,865       12,984       14,853  
    Total operating expenses   127,407       115,513       376,786       357,478  
    Income from operations   13,329       11,282       34,349       26,560  
                   
    Interest income   32       431       926       1,529  
    Interest expense   (404 )     (124 )     (1,186 )     (339 )
    Income before income taxes   12,957       11,589       34,089       27,750  
                   
    Provision for income tax expense   (2,488 )     (1,279 )     (6,821 )     (3,940 )
    Net income $ 10,469     $ 10,310     $ 27,268     $ 23,810  
                   
    Other comprehensive income              
    Foreign currency translation adjustments $ 374     $ (288 )   $ 851     $ (310 )
    Unrealized gain / (loss) on cash flow hedging instruments, net of tax   385       (131 )     571       70  
    Total other comprehensive income / (loss)   759       (419 )     1,422       (240 )
    Total comprehensive income $ 11,228     $ 9,891     $ 28,690     $ 23,570  
                   
    Net income per share              
    Basic $ 0.79     $ 0.59     $ 1.80     $ 1.33  
    Diluted $ 0.73     $ 0.57     $ 1.70     $ 1.29  
                   
    Weighted average common shares outstanding              
    Basic   13,264       17,468       15,109       17,880  
    Diluted   14,404       18,036       16,135       18,458  
                                   
    IBEX LIMITED AND SUBSIDIARIES
    Consolidated Statements of Cash Flows
    (Unaudited)
    (in thousands)
     
      Three Months Ended March 31,   Nine Months Ended March 31,
        2025       2024       2025       2024  
    CASH FLOWS FROM OPERATING ACTIVITIES              
    Net income $ 10,469     $ 10,310     $ 27,268     $ 23,810  
    Adjustments to reconcile net income to net cash provided by operating activities:              
    Depreciation and amortization   4,329       4,865       12,984       14,853  
    Noncash lease expense   3,611       3,386       10,020       9,908  
    Warrant contra revenue   —       299       —       893  
    Deferred income tax   (942 )     290       (1,709 )     586  
    Share-based compensation expense   1,601       466       3,506       2,741  
    Allowance of expected credit losses   105       56       428       62  
    Impairment losses   —       1,257       —       1,257  
    Change in assets and liabilities:              
    Decrease / (increase) in accounts receivable   455       1,395       (22,050 )     (16,941 )
    Decrease / (increase) in prepaid expenses and other current assets   1,405       (3,158 )     392       (5,350 )
    Increase in accounts payable and accrued liabilities   (6,120 )     (2,880 )     (3,042 )     (2,336 )
    (Decrease) / increase in deferred revenue   (1,262 )     (1,399 )     1,203       (1,098 )
    Decrease in operating lease liabilities   (4,823 )     (3,456 )     (11,269 )     (9,907 )
    Net cash inflow from operating activities   8,828       11,431       17,731       18,478  
                   
    CASH FLOWS FROM INVESTING ACTIVITIES              
    Purchase of property and equipment   (5,267 )     (1,691 )     (13,216 )     (6,635 )
    Net cash outflow from investing activities   (5,267 )     (1,691 )     (13,216 )     (6,635 )
                   
    CASH FLOWS FROM FINANCING ACTIVITIES              
    Proceeds from line of credit   60,150       57       69,310       153  
    Repayments of line of credit   (48,550 )     (57 )     (50,210 )     (205 )
    Proceeds from the exercise of options   2,809       351       3,534       362  
    Principal payments on finance leases   (286 )     (138 )     (639 )     (342 )
    Purchase of treasury shares   (25,052 )     (8,277 )     (76,421 )     (18,551 )
    Net cash outflow from financing activities   (10,929 )     (8,064 )     (54,426 )     (18,583 )
    Effects of exchange rate difference on cash and cash equivalents   139       (27 )     168       (24 )
    Net (decrease) / increase in cash and cash equivalents   (7,229 )     1,649       (49,743 )     (6,764 )
    Cash and cash equivalents, beginning   20,206       49,016       62,720       57,429  
    Cash and cash equivalents, ending $ 12,977     $ 50,665     $ 12,977     $ 50,665  
                   
    IBEX LIMITED AND SUBSIDIARIES
    Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
                   

    EXHIBIT 1: Adjusted net income, adjusted net income margin, and adjusted earnings per share

    We define adjusted net income as net income before the effect of the following items: severance costs, impairment losses, warrant contra revenue, foreign currency gain / loss, and share-based compensation expense, net of the tax impact of such adjustments. We define adjusted net income margin as adjusted net income divided by revenue. We define adjusted earnings per share as adjusted net income divided by weighted average diluted shares outstanding.

    The following table provides a reconciliation of net income to adjusted net income, net income margin to adjusted net income margin, and diluted earnings per share to adjusted earnings per share for the periods presented:

      Three Months Ended March 31,
      Nine Months Ended March 31,
    ($000s, except per share amounts)   2025       2024       2025       2024  
    Net income $ 10,469     $ 10,310     $ 27,268     $ 23,810  
    Net income margin   7.4 %     8.1 %     6.6 %     6.2 %
                   
    Severance costs   —       1,506       —       1,506  
    Impairment losses   —       1,257       —       1,257  
    Warrant contra revenue   —       299       —       893  
    Foreign currency loss / (gain)   121       (471 )     666       (571 )
    Share-based compensation expense   1,601       466       3,506       2,741  
    Total adjustments $ 1,722     $ 3,057     $ 4,172     $ 5,826  
    Tax impact of adjustments1   (404 )     (809 )     (1,006 )     (1,480 )
    Adjusted net income $ 11,787     $ 12,558     $ 30,434     $ 28,156  
    Adjusted net income margin   8.4 %     9.9 %     7.4 %     7.3 %
                   
    Diluted earnings per share $ 0.73     $ 0.57     $ 1.70     $ 1.29  
    Per share impact of adjustments to net income   0.09       0.12       0.20       0.24  
    Adjusted earnings per share $ 0.82     $ 0.70     $ 1.90     $ 1.53  
                   
    Weighted average diluted shares outstanding   14,404       18,036       16,135       18,458  
                   

    _______________
    1The tax impact of each adjustment is calculated using the effective tax rate in the relevant jurisdictions.

    EXHIBIT 2:  EBITDA, adjusted EBITDA, and adjusted EBITDA margin

    EBITDA is a non-GAAP profitability measure that represents net income before the effect of the following items: interest expense, income tax expense, and depreciation and amortization. Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before the effect of the following items: severance costs, impairment losses, interest income, warrant contra revenue, foreign currency gain / loss, and share-based compensation expense. Adjusted EBITDA margin is a non-GAAP profitability measure that represents adjusted EBITDA divided by revenue.

    The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA and net income margin to adjusted EBITDA margin for the periods presented:

      Three Months Ended March 31, Nine Months Ended March 31,
    ($000s)   2025       2024       2025       2024  
    Net income $ 10,469     $ 10,310     $ 27,268     $ 23,810  
    Net income margin   7.4 %     8.1 %     6.6 %     6.2 %
                   
    Interest expense   404       124       1,186       339  
    Income tax expense   2,488       1,279       6,821       3,940  
    Depreciation and amortization   4,329       4,865       12,984       14,853  
    EBITDA $ 17,690     $ 16,578     $ 48,259     $ 42,942  
    Severance costs   —       1,506       —       1,506  
    Impairment losses   —       1,257       —       1,257  
    Interest income   (32 )     (431 )     (926 )     (1,529 )
    Warrant contra revenue   —       299       —       893  
    Foreign currency loss / (gain)   121       (471 )     666       (571 )
    Share-based compensation expense   1,601       466       3,506       2,741  
    Adjusted EBITDA $ 19,380     $ 19,204     $ 51,505     $ 47,239  
                   
    Adjusted EBITDA margin   13.8 %     15.1 %     12.5 %     12.3 %
                   

    EXHIBIT 3: Free cash flow

    We define free cash flow as net cash provided by operating activities less capital expenditures.

      Three Months Ended March 31, Nine Months Ended March 31,
    ($000s)   2025       2024       2025       2024  
    Net cash provided by operating activities $ 8,828     $ 11,431     $ 17,731     $ 18,478  
    Less: capital expenditures   5,267       1,691       13,216       6,635  
    Free cash flow $ 3,561     $ 9,740     $ 4,515     $ 11,843  
                                   

    EXHIBIT 4: Net (debt) / cash

    We define net (debt) / cash as total cash and cash equivalents less debt.

      March 31,   June 30,
    ($000s)   2025       2024  
    Cash and cash equivalents $ 12,977     $ 62,720  
           
    Debt      
    Current $ 19,862     $ 660  
    Non-current   735       867  
    Total debt $ 20,597     $ 1,527  
    Net (debt) / cash $ (7,620 )   $ 61,193  
                   

    The MIL Network –

    May 9, 2025
  • MIL-OSI: Fidus Investment Corporation Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Board of Directors Declared Total Dividends of $0.54 per Share for Second Quarter 2025

    Base Dividend of $0.43 and Supplemental Dividend of $0.11 Per Share

    EVANSTON, Ill., May 08, 2025 (GLOBE NEWSWIRE) — Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the first quarter ended March 31, 2025.

    First Quarter 2025 Financial Highlights

    • Total investment income of $36.5 million
    • Net investment income of $18.2 million, or $0.53 per share
    • Adjusted net investment income of $18.5 million, or $0.54 per share(1)
    • Invested $115.6 million in debt and equity securities, including seven new portfolio companies
    • Received proceeds from repayments and realizations of $57.3 million
    • Paid total dividends of $0.54 per share: regular quarterly dividend of $0.43 and a supplemental dividend of $0.11 per share on March 27, 2025
    • Net asset value (“NAV”) of $677.9 million, or $19.39 per share, as of March 31, 2025
    • Estimated spillover income (or taxable income in excess of distributions) as of March 31, 2025 of $47.4 million, or $1.36 per share

    Management Commentary

    “We continued to build our portfolio of debt and equity investments in a methodical and disciplined manner during the first quarter by investing in high quality businesses with defensive characteristics and resilient business models that generate high levels of cash flow to service debt and support growth. We also monetized two equity investments for a net realized gain of $11.5 million, or $0.33 per share, which contributed to the increase in NAV,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation. “Our portfolio remains well diversified and healthy overall, and constructed to generate attractive risk-adjusted returns over time for the benefit of our shareholders.”

    (1)   Supplemental information regarding adjusted net investment income:

    On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment adviser provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.

    First Quarter 2025 Financial Results

    The following table provides a summary of our operating results for the three months ended March 31, 2025, as compared to the same period in 2024 (dollars in thousands, except per share data):

                             
        Three Months Ended
    March 31,
                 
        2025     2024     $ Change     % Change  
    Interest income   $ 30,319     $ 28,138     $ 2,181       7.8 %
    Payment-in-kind interest income     2,248       2,049       199       9.7 %
    Dividend income     1,231       397       834       210.1 %
    Fee income     2,127       2,359       (232 )     (9.8 %)
    Interest on idle funds     571       1,708       (1,137 )     (66.6 %)
    Total investment income   $ 36,496     $ 34,651     $ 1,845       5.3 %
                             
    Net investment income   $ 18,222     $ 17,627     $ 595       3.4 %
    Net investment income per share   $ 0.53     $ 0.57     $ (0.04 )     (7.0 %)
                             
    Adjusted net investment income (1)   $ 18,509     $ 18,126     $ 383       2.1 %
    Adjusted net investment income per share (1)   $ 0.54     $ 0.59     $ (0.05 )     (8.5 %)
                             
    Net increase (decrease) in net assets resulting from operations   $ 19,658     $ 20,123     $ (465 )     (2.3 %)
    Net increase (decrease) in net assets resulting from operations per share   $ 0.58     $ 0.65     $ (0.07 )     (10.8 %)
                                     

    The $1.8 million increase in total investment income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily attributable to (i) a $2.4 million increase in total interest income (which includes payment-in-kind interest income) resulting from an increase in average debt investment balances outstanding, partially offset by a decrease in weighted average yield on debt investment balances outstanding, (ii) a $0.8 million increase in dividend income due to an increase in distributions received from equity investments, partially offset by (iii) a $0.2 million decrease in fee income resulting from a decrease in amendment and management services fees and (iv) a $1.2 million decrease in interest on idle funds resulting from a decrease in average cash balances.

    For the three months ended March 31, 2025, total expenses, including the base management fee waiver and income tax provision, were $18.3 million, an increase of $1.3 million, or 7.3% from the $17.0 million of total expenses, including the base management fee waiver and income tax provision, for the three months ended March 31, 2024. The increase was primarily attributable to (i) a $0.8 million increase in interest and financing expenses due to an increase in average borrowings outstanding and weighted average interest rates of our debt outstanding, (ii) a $0.6 million net increase in base management fee, including the base management fee waiver, due to higher average total assets, (iii) a $0.1 million increase in the income incentive fee, partially offset by (iv) a $0.2 million decrease in the accrued capital gains incentive fee.

    Net investment income increased by $0.6 million, or 3.4%, to $18.2 million during the three months ended March 31, 2025 as compared to the same period in 2024, as a result of the $1.8 million increase in total investment income and the $1.3 million increase in total expenses, including base management fee waiver and income tax provision. Adjusted net investment income,(1) which excludes the capital gains incentive fee accrual, was $0.54 per share compared to $0.59 per share in the prior year.

    For the three months ended March 31, 2025, the total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, was $11.5 million, as compared to total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, of $1.8 million for the same period in 2024.

    Portfolio and Investment Activities

    As of March 31, 2025, the fair value of our investment portfolio totaled $1.2 billion and consisted of 92 active portfolio companies and four portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 100.5% of the related cost basis as of March 31, 2025. As of March 31, 2025, the debt investments of 52 portfolio companies bore interest at a variable rate, which represented $740.3 million, or 72.8%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of March 31, 2025, our average active portfolio company investment at amortized cost was $12.5 million, which excludes investments in four portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 13.2% as of March 31, 2025. The weighted average yield was computed using the effective interest rates for debt investments at cost as of March 31, 2025, including the accretion of original issue discounts and loan origination fees, but excluding investments on non-accrual status and investments recorded as a secured borrowing.

    First quarter 2025 investment activity included the following new portfolio company investments:

    • AMOpportunities, Inc., a healthcare training platform providing tech-enabled clinical rotation development and management services for schools, providers, and health systems. Fidus invested $10.0 million in first lien debt and $0.7 million in preferred equity.
    • Customer Expressions Corp. (dba Case IQ), a provider of SaaS-based Governance, Risk and Compliance (GRC) solutions to mid-size and large enterprises. Fidus invested $15.0 million in first lien debt and $0.8 million in common equity.
    • Fraser Steel LLC, a designer and manufacturer of steel tubular parts and assemblies for OEM customers used in a wide range of applications. Fidus invested $14.0 million in first lien debt, $0.1 million in preferred equity, $0.5 million in common equity, and made additional commitments up to $2.0 million in a revolving loan.
    • Info Tech Operating, LLC (dba infotech), a software solutions provider for the infrastructure construction industry. Fidus invested $13.5 million in first lien debt.
    • Mayesh Wholesale Florist, LLC, a leading U.S. wholesaler of premium, fresh cut flowers. Fidus invested $10.5 million in first lien debt, $0.5 million in preferred equity, and made additional commitments up to $2.0 million in first lien debt.
    • Onsight Industries, LLC, a leading provider of customized signs & displays, mailbox solutions, and site furnishings for the home builder and land developer industries. Fidus invested $9.1 million in first lien debt and $0.4 million in common equity.
    • PayEntry Financial Services, Inc. (dba Payentry), a leading provider of payroll processing and other complementary HR services (e.g., insurance, 401K, benefits, HCM solutions) to SMBs. Fidus invested $5.6 million in second lien debt, $0.8 million in preferred equity, and made additional commitments up to $6.0 million in second lien debt.

    Liquidity and Capital Resources

    As of March 31, 2025, we had $67.5 million in cash and cash equivalents and $140.0 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). For the three months ended March 31, 2025, we received net proceeds of $20.7 million from the equity at-the-market program (the “ATM Program”) and received net proceeds from the issuance of the March 2030 Notes (as defined below) of $96.9 million. As of March 31, 2025, we had SBA debentures outstanding of $182.0 million, $125.0 million outstanding of our 4.75% notes due January 2026 (the “January 2026 Notes”), $125.0 million outstanding of our 3.50% notes due November 2026 (the “November 2026 Notes”), and $100.0 million outstanding of our 6.75% March 2030 Notes (the “March 2030 Notes” and together with the January 2026 Notes and the November 2026 Notes, the “Notes”). As of March 31, 2025, the weighted average interest rate on total debt outstanding was 4.8%.

    Second Quarter 2025 Dividends Totaling $0.54 Per Share Declared

    On May 5, 2025, our board of directors declared a base dividend of $0.43 per share and a supplemental dividend of $0.11 per share for the second quarter. The dividends will be payable on June 25, 2025, to stockholders of record as of June 13, 2025.

    When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under GAAP due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2025 taxable income, as well as the tax attributes for 2025 dividends, will be made after the close of the 2025 tax year. The final tax attributes for 2025 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.

    Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.

    Subsequent Events

    On April 15, 2025, we invested $5.0 million in first lien debt, $0.4 million in preferred equity, $0.4 million in common equity, and committed up to $4.0 million in a revolving loan to Laboratory Testing, LLC, a provider of material testing and calibration services, primarily to the Aerospace & Defense end market.

    On April 23, 2025, we exited our debt investments in Elements Brands, LLC. We received payment in full of $3.7 million on our first lien debt, which includes fees.

    On May 5, 2025, we issued an additional $10.0 million in SBA debentures, which will bear interest at a fixed interim interest rate of 5.163% until the pooling date in September 2025.

    First Quarter 2025 Financial Results Conference Call

    Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, May 9, 2025. To participate in the conference call, please dial (844) 808-7136 approximately 10 minutes prior to the call. International callers should dial (412) 317-0534. Please ask to be joined into the Fidus Investment Corporation call.

    A live webcast of the conference call will be available at http://investor.fdus.com/news-events/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.

    ABOUT FIDUS INVESTMENT CORPORATION

    Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.

    Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007 and was licensed by the U.S. Small Business Administration as a Small Business Investment Company (SBIC).

    FORWARD-LOOKING STATEMENTS

    This press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain, including, but not limited to, statements about the future performance and financial condition of the Company, the prospects of our existing and prospective portfolio companies, the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives, and the timing, form and amount of any distributions or supplemental dividends in the future. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, such as changes in the financial and lending markets, the impact of the general economy (including an economic downturn or recession), the impact of interest rate volatility and the impact of elevated levels of inflation on the Company’s portfolio companies and the industries in which it invests, and the uncertainty relating to the general economy (including the uncertainty with respect to new tariffs and trade policies); accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors related to changes in the markets in which the Company invests, changes in the financial, capital, and lending markets, and other factors described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.

     
    FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Assets and Liabilities
    (in thousands, except shares and per share data)
                     
        March 31,     December 31,  
        2025     2024  
    ASSETS                
    Investments, at fair value:                
    Control investments (cost: $6,832 and $6,832, respectively)   $ —     $ —  
    Affiliate investments (cost: $52,611 and $56,679, respectively)     91,066       102,024  
    Non-control/non-affiliate investments (cost: $1,089,409 and $1,011,646, respectively)     1,063,342       988,482  
    Total investments, at fair value (cost: $1,148,852 and $1,075,157, respectively)     1,154,408       1,090,506  
    Cash and cash equivalents     67,478       57,159  
    Interest receivable     18,404       15,119  
    Proceeds receivable from stock offering     701       —  
    Prepaid expenses and other assets     991       1,328  
    Total assets   $ 1,241,982     $ 1,164,112  
    LIABILITIES                
    SBA debentures, net of deferred financing costs   $ 175,870     $ 168,899  
    Notes, net of deferred financing costs     345,557       248,362  
    Borrowings under Credit Facility, net of deferred financing costs     (948 )     43,954  
    Secured borrowings     13,601       13,674  
    Accrued interest and fees payable     3,573       5,784  
    Base management fee payable, net of base management fee waiver – due to affiliate     4,863       4,805  
    Income incentive fee payable – due to affiliate     4,594       4,477  
    Capital gains incentive fee payable – due to affiliate     14,990       14,703  
    Administration fee payable and other, net – due to affiliate     295       919  
    Taxes payable     325       1,850  
    Accounts payable and other liabilities     1,332       1,019  
    Total liabilities   $ 564,052     $ 508,446  
    Commitments and contingencies                
    NET ASSETS                
    Common stock, $0.001 par value (100,000,000 shares authorized, 34,970,709 and 33,914,652 shares                
    issued and outstanding at March 31, 2025 and December 31, 2024, respectively)   $ 35     $ 34  
    Additional paid-in capital     588,519       567,159  
    Total distributable earnings     89,376       88,473  
    Total net assets     677,930       655,666  
    Total liabilities and net assets   $ 1,241,982     $ 1,164,112  
    Net asset value per common share   $ 19.39     $ 19.33  
     
    FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Operations (unaudited)
    (in thousands, except shares and per share data)
     
        Three Months Ended  
        March 31,  
        2025     2024  
    Investment Income:            
    Interest income            
    Control investments   $ —     $ —  
    Affiliate investments     1,094       869  
    Non-control/non-affiliate investments     29,225       27,269  
    Total interest income     30,319       28,138  
    Payment-in-kind interest income            
    Control investments     —       —  
    Affiliate investments     —       —  
    Non-control/non-affiliate investments     2,248       2,049  
    Total payment-in-kind interest income     2,248       2,049  
    Dividend income            
    Control investments     —       —  
    Affiliate investments     886       348  
    Non-control/non-affiliate investments     345       49  
    Total dividend income     1,231       397  
    Fee income            
    Control investments     —       —  
    Affiliate investments     8       5  
    Non-control/non-affiliate investments     2,119       2,354  
    Total fee income     2,127       2,359  
    Interest on idle funds     571       1,708  
    Total investment income     36,496       34,651  
    Expenses:            
    Interest and financing expenses     6,773       6,012  
    Base management fee     4,922       4,432  
    Incentive fee – income     4,594       4,467  
    Incentive fee (reversal) – capital gains     287       499  
    Administrative service expenses     602       537  
    Professional fees     948       937  
    Other general and administrative expenses     206       229  
    Total expenses before base management fee waiver     18,332       17,113  
    Base management fee waiver     (59 )     (69 )
    Total expenses, net of base management fee waiver     18,273       17,044  
    Net investment income before income taxes     18,223       17,607  
    Income tax provision (benefit)     1       (20 )
    Net investment income     18,222       17,627  
    Net realized and unrealized gains (losses) on investments:            
    Net realized gains (losses):            
    Control investments     —       —  
    Affiliate investments     10,066       —  
    Non-control/non-affiliate investments     3,264       1,743  
    Total net realized gain (loss) on investments     13,330       1,743  
    Income tax (provision) benefit from realized gains on investments     (1,850 )     56  
    Net change in unrealized appreciation (depreciation):            
    Control investments     —       —  
    Affiliate investments     (6,890 )     (3,236 )
    Non-control/non-affiliate investments     (2,903 )     4,454  
    Total net change in unrealized appreciation (depreciation) on investments     (9,793 )     1,218  
    Net gain (loss) on investments     1,687       3,017  
    Realized losses on extinguishment of debt     (251 )     (521 )
    Net increase (decrease) in net assets resulting from operations   $ 19,658     $ 20,123  
    Per common share data:            
    Net investment income per share-basic and diluted   $ 0.53     $ 0.57  
    Net increase in net assets resulting from operations per share — basic and diluted   $ 0.58     $ 0.65  
    Dividends declared per share   $ 0.54     $ 0.65  
    Weighted average number of shares outstanding — basic and diluted     34,077,720       30,776,758  
    Schedule 1

    Supplemental Information Regarding Adjusted Net Investment Income

     

    On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three months ended March 31, 2025 and 2024.

        ($ in thousands)  
        Three Months Ended  
        March 31,  
        (unaudited)  
        2025     2024  
    Net investment income   $ 18,222     $ 17,627  
    Capital gains incentive fee expense (reversal)     287       499  
    Adjusted net investment income (1)   $ 18,509     $ 18,126  
        (Per share)  
        Three Months Ended  
        March 31,  
        (unaudited)  
        2025     2024  
    Net investment income   $ 0.53     $ 0.57  
    Capital gains incentive fee expense (reversal)     0.01       0.02  
    Adjusted net investment income (1)   $ 0.54     $ 0.59  
    (1) Adjusted net investment income per share amounts are calculated as adjusted net investment income divided by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here.
    Company Contact: Investor Relations Contact:
    Shelby E. Sherard Jody Burfening
    Chief Financial Officer Alliance Advisors IR
    (847) 859-3940 (212) 838-3777
    ssherard@fidusinv.com jburfening@allianceadvisors.com

    The MIL Network –

    May 9, 2025
  • MIL-OSI: EverCommerce Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    DENVER, May 08, 2025 (GLOBE NEWSWIRE) — EverCommerce Inc. (“EverCommerce” or the “Company”) (NASDAQ: EVCM), a leading service commerce platform, today announced financial results for the quarter ended March 31, 2025.

    First Quarter 2025 Financial Highlights

    • Revenue from continuing operations of $142.3 million, an increase of 3.2% compared to $137.9 million for the quarter ended March 31, 2024. Pro Forma Revenue, which excludes fitness, increased 7.4% to 142.3 million, compared to $132.4 million for the quarter ended March 31, 2024.
    • Subscription and transaction fees revenue from continuing operations of $137.8 million, an increase of 3.3% compared to $133.4 million for the quarter ended March 31, 2024. Pro Forma subscription and transaction fees revenue, which excludes fitness, increased 7.6% to $137.8 million, compared to $128.1 million for the quarter ended March 31, 2024.
    • Net income from continuing operations was $0.9 million, or $0.01 per basic and diluted share, for the quarter ended March 31, 2025, compared to net loss from continuing operations of $16.0 million, or $(0.09) per basic and diluted share, for the quarter ended March 31, 2024.
    • Adjusted EBITDA from continuing operations was $44.9 million for the quarter ended March 31, 2025, compared to $38.7 million for the quarter ended March 31, 2024.

    “EverCommerce’s first quarter results exceeded the top end of our guidance range for both Revenue and Adjusted EBITDA, driven by strong execution and continued active cost management,” said Eric Remer, EverCommerce’s Founder and CEO. “We continue to make solid progress with implementing our transformation and optimization initiatives, which include strategic investments in high margin areas of business such as payments monetization as well as artificial intelligence.”

    A reconciliation of GAAP to Non-GAAP measures has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures and Key Performance Metrics.”

    Share Repurchases

    On May 1, 2025, our Board of Directors approved a $50.0 million increase in the previously announced stock repurchase authorization and extended the authorization through December 31, 2026. The total authorization since the repurchase program began allows for the purchase up to $250.0 million in shares of the Company’s common stock.

    The Company repurchased and retired 1.1 million shares of common stock for approximately $11.2 million during the three months ended March 31, 2025. As of March 31, 2025, $21.6 million remained available under the Repurchase Program.

    Repurchases under the program may be made from time to time in the open market at prevailing market prices or in negotiated transactions off the market. Open market repurchases will be structured to occur within the pricing and volume requirements of Rule 10b-18. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the Company to acquire any particular amount of common stock and the program may be extended, modified, suspended or discontinued at any time at the Company’s discretion. The Company expects to fund repurchases with cash on hand.

    Business Outlook

    Based on information as of today, May 8, 2025, the Company is issuing the following financial guidance for the second quarter 2025 and full year 2025 from continuing operations, which excludes discontinued operations related to our marketing technology solutions.

    Second Quarter 2025:

    • Revenue is expected to be in the range of $144.5 million to $147.5 million.
    • Adjusted EBITDA is expected to be in the range of $39.5 million to $41.5 million.

    Full Year 2025:

    • Revenue is expected to be in the range of $581million to $601 million.
    • Adjusted EBITDA is expected to be in the range of $167.5 million to $175.5 million.

    A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure, is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to certain charges excluded from this non-GAAP measure; in particular, the measures and efforts of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. It is important to note that these charges could be material to EverCommerce’s results computed in accordance with GAAP.

    Conference Call Information

    EverCommerce’s management team will hold a conference call to discuss our first quarter 2025 results and outlook today, May 8, 2025, at 5:00 p.m. ET. Please visit the “Investor Relations” page of the Company’s website (https://investors.evercomerce.com) for both telephonic and webcast access to this call as well as a copy of the presentation materials used on the call. An archive replay will be available following the conclusion of the call.

    Investor Contact
    Brad Korch
    SVP and Head of Investor Relations
    720-796-7664
    IR@evercommerce.com

    Media Contact
    Jeanne Trogan
    VP of Communications
    737-465-2897
    Press@evercommerce.com

    About EverCommerce

    EverCommerce (Nasdaq: EVCM) is a leading service commerce platform, providing vertically-tailored, integrated SaaS solutions that help more than 740,000 global service-based businesses accelerate growth, streamline operations, and increase retention. Its modern digital and mobile applications create predictable, informed, and convenient experiences between customers and their service professionals. With its EverPro, EverHealth, and EverWell brands specializing in Home, Health, and Wellness service industries, EverCommerce provides end-to-end business management software, embedded payment acceptance, marketing technology, and customer experience applications. Learn more at EverCommerce.com.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding our future operations and financial results, cost savings initiatives, implementation of our transformation and optimization initiatives, any strategic alternatives involving our marketing technology solutions including an anticipated sale in 2025, our market opportunity, future stock repurchases, our potential for growth and our strategy. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, our limited operating history and evolving business; our recent growth rates may not be sustainable or indicative of future growth; we have experienced net losses in the past and we may not achieve profitability in the future; we may continue to experience significant quarterly and annual fluctuations in our operating results due to a number of factors, which makes our future operating results difficult to predict; in order to support the growth of our business and our acquisition strategy, we may need to incur additional indebtedness or seek capital through new equity or debt financings; we may not be able to continue to expand our share of our existing vertical markets or expand into new vertical markets; we face intense competition in each of the industries in which we operate; the industries in which we operate are rapidly evolving and the market for technology-enabled services that empower SMBs is relatively immature and unproven; we are subject to economic and political risk, the business cycles of our clients and changes in the overall level of consumer and commercial spending, which could negatively impact our business, financial condition and results of operations; we are dependent on payment card networks, such as Visa and MasterCard, and payment processors, such as Worldpay and PayPal, and if we fail to comply with the applicable requirements of our payment networks or our payment processors, they can seek to fine us, suspend us or terminate our agreements and/or terminate our registrations through our bank sponsors; the inability to keep pace with rapid developments and changes in the electronic payments market or are unable to introduce, develop and market new and enhanced versions of our software solutions; real or perceived errors, failures or bugs in our solutions; unauthorized disclosure, destruction or modification of data, disruption of our software or services or cyber breaches; our use of artificial intelligence technologies and evolving regulatory framework governing the use of such technologies; our estimated total addressable market is subject to inherent challenges and uncertainties; failure to effectively develop and expand our sales and marketing capabilities; impairment in the value of our goodwill or intangible assets; our information technology systems and our third-party providers’ information technology systems, including Worldpay, PayPal and other payment processing partners, may fail or our third-party providers may discontinue providing their services or technology generally or to us specifically; our ability to improve our margin, in particular within Marketing Technology Solutions; the impact of a future pandemic, epidemic or outbreak of an infectious disease could impact, our business, financial condition and results of operations, as well as the business or operations of third parties with whom we conduct business; our success in achieving our objectives through acquisitions, divestitures or other strategic transactions; our revenues and profits generated through acquisitions may be less than anticipated, and we may fail to uncover all liabilities of acquisition targets; risks related to scrutiny on environmental sustainability and social initiatives; our ability to adequately protect or enforce our intellectual property and other proprietary rights; risk of patent, trademark and other intellectual property infringement claims; risks related to governmental regulation and other legal obligations, particularly related to privacy, data protection and information security, and our actual or perceived failure to comply with such obligations; risks related to our sponsor stockholders agreement and qualifying as a “controlled company” under the rules of The Nasdaq Stock Market; as well as the other factors described in our Annual Report on Form 10-K for the year ended December 31, 2024 and updated by our other filings with the SEC. These factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

    Non-GAAP Financial Measures and Key Performance Metrics

    EverCommerce has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). EverCommerce uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing EverCommerce’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures. Unless otherwise indicated, all non-GAAP financial measures are presented on the basis of continuing operations only.

    Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with EverCommerce’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of EverCommerce’s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

    Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, Pro Forma Subscription and Transaction Fees Revenue Growth Rate. Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate are key performance measures that our management uses to assess our consolidated operating performance from continuing operations over time. Management also uses these metrics for planning and forecasting purposes.

    Our year-over-year Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate are calculated as though all acquisitions and divestitures completed as of the end of the latest period were completed as of the first day of the prior year period presented. In calculating Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate, we add the revenue from acquisitions for the reporting periods prior to the date of acquisition (including estimated purchase accounting adjustments) and exclude revenue from divestitures for the reporting periods prior to the date of divestiture, and then, calculate our revenue growth rate between the two reported periods. As a result, these metrics include pro forma revenue from businesses acquired and excludes revenue from businesses divested of during the period, including revenue generated during periods when we did not yet own the acquired businesses and excludes revenue prior to the divestiture of the business. In including such pre-acquisition revenue and excluding pre-divestiture revenue, these metrics allow us to measure the underlying revenue growth of our business as it stands as of the end of the respective period, which we believe provides insight into our then-current operations. Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate do not represent organic revenue generated by our business as it stood at the beginning of the respective period. Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rates, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate are not necessarily indicative of either future results of operations or actual results that might have been achieved had the acquisitions and divestitures been consummated on the first day of the prior year period presented. We believe that these metrics are useful to investors in analyzing our financial and operational performance period over period and evaluating the growth of our business, normalizing for the impact of acquisitions and divestitures. These metrics are particularly useful to management due to the number of acquired entities.

    Adjusted Gross Profit. Adjusted Gross Profit is a key performance measure that our management uses to assess our operational performance, as it represents the results of revenues and direct costs, which are key components of our operations. We believe that this non-GAAP financial measure is useful to investors and other interested parties in analyzing our financial performance because it reflects the gross profitability of our operations, and excludes the indirect costs associated with our sales and marketing, product development, general and administrative activities, and depreciation and amortization, and the impact of our financing methods and income taxes.

    Gross profit is calculated as total revenues less cost of revenues (exclusive of depreciation and amortization), amortization of developed technology, amortization of capitalized software and depreciation expense (allocated to cost of revenues). We calculate Adjusted Gross Profit as gross profit adjusted to exclude depreciation and amortization allocated to cost of revenues. Adjusted Gross Profit should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other GAAP measures of income (loss) or profitability.

    Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA and Adjusted EBITDA margin are key performance measures that our management uses to assess our financial performance and is also used for internal planning and forecasting purposes. We believe that these non-GAAP financial measures are useful to investors and other interested parties in analyzing our financial performance because they provide a comparable overview of our operations across historical periods. In addition, we believe that providing Adjusted EBITDA, together with a reconciliation of net income (loss) to Adjusted EBITDA, helps investors make comparisons between our company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation.

    Adjusted EBITDA and Adjusted EBITDA margin are used by our management team as additional measures of our performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of Adjusted EBITDA and Adjusted EBITDA margin help our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of net income (loss) or income (loss) from continuing operations. In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees. Our Management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies.

    We calculate Adjusted EBITDA as net loss adjusted to exclude interest and other expense, net, income tax expense (benefit), depreciation and amortization, other amortization, stock-based compensation, and transaction-related and other non-recurring or unusual costs. Other amortization includes amortization for capitalized contract acquisition costs. Transaction-related costs are specific deal-related costs such as legal fees, financial and tax due diligence, consulting and escrow fees. Other non-recurring or unusual costs are expenses such as impairment charges, (gains) losses from divestitures, system implementation costs, executive separation costs, severance expense related to planned restructuring activities, and costs associated with integration and transformational improvements. Transaction-related and other non-recurring or unusual costs are excluded as they are not representative of our underlying operating performance. Adjusted EBITDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other GAAP measures of income (loss).

    EverCommerce Inc.
    Condensed Consolidated Balance Sheets
    (in thousands, except per share and share amounts)
    (unaudited)
           
      March 31,   December 31,
      2025   2024
           
    Assets      
    Current assets:      
    Cash and cash equivalents $ 148,408     $ 135,782  
    Accounts receivable, net of allowance for expected credit losses of $2.1 million and $2.3 million at March 31, 2025 and December 31, 2024, respectively   32,356       31,090  
    Contract assets   11,115       12,839  
    Assets held for sale   46,435       11,422  
    Prepaid expenses and other current assets   30,231       27,181  
    Total current assets   268,545       218,314  
    Property and equipment, net   5,907       6,129  
    Capitalized software, net   43,573       41,595  
    Other non-current assets   34,912       36,127  
    Non-current assets held for sale   —       44,779  
    Intangible assets, net   197,477       211,172  
    Goodwill   863,686       863,152  
    Total assets   1,414,100       1,421,268  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 7,533     $ 6,599  
    Accrued expenses and other   54,832       50,840  
    Deferred revenue   22,122       22,107  
    Customer deposits   11,857       11,382  
    Current maturities of long-term debt   5,500       5,500  
    Liabilities held for sale   15,626       14,298  
    Total current liabilities   117,470       110,726  
    Long-term debt, net of current maturities and deferred financing costs   521,364       522,442  
    Other non-current liabilities   35,697       36,301  
    Non-current liabilities held for sale   —       973  
    Total liabilities   674,531       670,442  
    Commitments and contingencies      
    Stockholders’ equity:      
    Preferred stock, $0.00001 par value, 50,000,000 shares authorized and no shares issued or outstanding as of March 31, 2025 and December 31, 2024   —       —  
    Common stock, $0.00001 par value, 2,000,000,000 shares authorized and 183,034,613 and 183,725,236 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively   2       2  
    Accumulated other comprehensive loss   (13,841 )     (14,318 )
    Additional paid-in capital   1,422,185       1,426,206  
    Accumulated deficit   (668,777 )     (661,064 )
    Total stockholders’ equity   739,569       750,826  
    Total liabilities and stockholders’ equity $ 1,414,100     $ 1,421,268  
                   
    EverCommerce Inc.
    Condensed Consolidated Statements of Operations and Comprehensive Loss
    (in thousands, except per share and share amounts)
    (unaudited)
       
      Three months ended
    March 31,
      2025   2024
           
    Revenues:      
    Subscription and transaction fees $ 137,779     $ 133,382  
    Other   4,494       4,470  
    Total revenues   142,273       137,852  
    Operating expenses:      
    Cost of revenues (exclusive of depreciation and amortization presented separately below)   31,188       31,501  
    Sales and marketing   28,783       27,564  
    Product development   19,963       19,306  
    General and administrative   31,281       31,641  
    Depreciation and amortization   16,768       20,904  
    Loss on held for sale and impairments   85       11,232  
    Total operating expenses   128,068       142,148  
    Operating income (loss)   14,205       (4,296 )
    Interest and other expense, net   (12,759 )     (5,791 )
    Net income (loss) from continuing operations before income tax expense   1,446       (10,087 )
    Income tax expense   (512 )     (5,923 )
    Net income (loss) from continuing operations   934       (16,010 )
    Loss from discontinued operations, net of income tax   (8,647 )     (314 )
    Net loss   (7,713 )     (16,324 )
    Other comprehensive loss:      
    Foreign currency translation gain (loss), net   477       (3,535 )
    Comprehensive loss $ (7,236 )   $ (19,859 )
           
    Basic net income (loss) per share attributable to common stockholders:      
    Continuing operations $ 0.01     $ (0.09 )
    Discontinued operations   (0.05 )     —  
    Total $ (0.04 )   $ (0.09 )
           
    Diluted net income (loss) per share attributable to common stockholders:      
    Continuing operations $ 0.01     $ (0.09 )
    Discontinued operations   (0.05 )     —  
    Total $ (0.04 )   $ (0.09 )
           
    Weighted-average shares of common stock outstanding used in computing net income (loss) per share:      
    Basic   183,467,698       186,635,095  
    Diluted   185,222,240       186,635,095  
                   
    EverCommerce Inc.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
       
      Three months ended
    March 31,
      2025   2024
           
    Cash flows provided by operating activities:      
    Net loss $ (7,713 )   $ (16,324 )
    Adjustments to reconcile net loss to net cash provided by operating activities:      
    Depreciation and amortization   17,959       22,951  
    Stock-based compensation expense   6,940       5,576  
    Deferred taxes   (335 )     5,316  
    Amortization of deferred financing costs and non-cash interest   396       410  
    Loss on held for sale and impairments   9,518       11,231  
    Bad debt expense   832       1,010  
    Loss (gain) on interest rate swap valuation adjustments   3,856       (4,824 )
    Other non-cash items   1,270       216  
    Changes in operating assets and liabilities:      
    Accounts receivable, net   (3,123 )     (4,485 )
    Prepaid expenses and other current assets   (1,621 )     (3,087 )
    Other non-current assets   (340 )     93  
    Accounts payable   455       (233 )
    Accrued expenses and other   3,973       (6,094 )
    Deferred revenue   1,616       2,401  
    Other non-current liabilities   (3,005 )     (860 )
    Net cash provided by operating activities   30,678       13,297  
    Cash flows used in investing activities:      
    Purchases of property and equipment   (493 )     (402 )
    Capitalization of software costs   (5,065 )     (4,432 )
    Proceeds from disposition of fitness solutions, net of transaction costs, cash and restricted cash   (85 )     1,228  
    Net cash used in investing activities   (5,643 )     (3,606 )
    Cash flows used in financing activities:      
    Payments on long-term debt   (1,375 )     (1,375 )
    Exercise of stock options   1,385       1,072  
    Employee taxes paid for RSU withholdings   (1,182 )     —  
    Repurchase and retirement of common stock   (11,095 )     (12,068 )
    Net cash used in financing activities   (12,267 )     (12,371 )
    Effect of foreign currency exchange rate changes on cash   (142 )     (593 )
    Net increase (decrease) in cash, cash equivalents and restricted cash, including cash and restricted cash classified as held for sale   12,626       (3,273 )
    Cash, cash equivalents and restricted cash, including cash and restricted cash classified as held for sale:      
    Beginning of period   135,782       96,179  
    End of period $ 148,408     $ 92,906  
           
    Supplemental disclosures of cash flow information:   ​  
    Cash paid for interest $ 9,088     $ 11,095  
    Cash paid for income taxes $ 2,531     $ 1,654  
                   
    EverCommerce Inc.
    Non-GAAP Financial Measures and Key Performance Metrics
    (unaudited)
       
      Three months ended
    March 31,
      2025
      2024
      (in thousands)
           
    Pro Forma Revenue:      
    Revenue $ 142,273     $ 137,852  
    Plus acquisition revenue / less disposition revenue (1)   —       (5,403 )
    Pro Forma Revenue $ 142,273     $ 132,449  
     (1) Acquisition revenue includes the estimated revenue associated with Kickserv prior to the August 10, 2023 acquisition date while the disposition revenue adjustment excludes revenue associated with fitness solutions (see the Pro Forma Revenue and Pro Forma Revenue Growth Rate definition under Non-GAAP financial measures and Key Performance Metrics).
       
      Three months ended
    March 31,
      2025
      2024
      (in thousands)
           
    Pro Forma Subscription and Transaction Fees Revenue:      
    Subscription and transaction fees revenue $ 137,779     $ 133,382  
    Plus acquisition revenue / less disposition revenue (1)   —       (5,325 )
    Pro Forma Subscription and Transaction Fees Revenue $ 137,779     $ 128,057  
    (1) Acquisition revenue includes the estimated revenue associated with Kickserv prior to the August 10, 2023 acquisition date while the disposition revenue adjustment excludes revenue associated with fitness solutions (see the Pro Forma Subscription and Transaction Revenue and Pro Forma Subscription and Transaction Revenue Growth Rate definition under Non-GAAP financial measures and Key Performance Metrics).
       
      Three months ended
    March 31,
      2025
      2024
      (in thousands)
           
    Reconciliation from Gross Profit to Adjusted Gross Profit:      
    Gross profit from continuing operations $ 106,433     $ 100,884  
    Depreciation and amortization   4,652       5,467  
    Adjusted gross profit from continuing operations $ 111,085     $ 106,351  
                   
      Three months ended
    March 31,
      2025
      2024
      (in thousands)
           
    Reconciliation from Net loss to Adjusted EBITDA:      
    Net income (loss) from continuing operations $ 934     $ (16,010 )
    Adjusted to exclude the following:      
    Interest and other expense, net   12,759       5,791  
    Income tax expense   512       5,923  
    Depreciation and amortization   16,768       20,904  
    Other amortization   1,482       1,311  
    Stock-based compensation expense   6,755       5,410  
    Transaction-related and other non-recurring or unusual costs   5,735       15,321  
    Adjusted EBITDA from continuing operations $ 44,945     $ 38,650  
                   

    The MIL Network –

    May 9, 2025
  • MIL-OSI: American Coastal Insurance Corporation Reports Financial Results for its First Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    Company to Host Quarterly Conference Call at 5:00 P.M. ET on May 8, 2025

    The information in this press release should be read in conjunction with an earnings presentation that is available on the Company’s website at investors.amcoastal.com/Presentations.

    ST. PETERSBURG, Fla., May 08, 2025 (GLOBE NEWSWIRE) — American Coastal Insurance Corporation (Nasdaq: ACIC) (“ACIC” or the “Company”), a property and casualty insurance holding company, today reported its financial results for the first quarter ended March 31, 2025.

       
    ($ in thousands, except for per share data) Three Months Ended
    March 31,
        2025       2024     Change
    Gross premiums written $ 197,852     $ 184,601     7.2   %
    Gross premiums earned   162,101       160,270     1.1    
    Net premiums earned   68,272       62,631     9.0    
    Total revenue   72,202       66,598     8.4    
    Income from continuing operations, net of tax   19,711       23,709     (16.9 )  
    Income (loss) from discontinued operations, net of tax   1,637       (110 )   NM
    Consolidated net income $ 21,348     $ 23,599     (9.5 )  
               
    Net income available to ACIC stockholders per diluted share          
    Continuing Operations $ 0.40     $ 0.48     (16.7 ) %
    Discontinued Operations   0.03       —     100.0   %
    Total $ 0.43     $ 0.48     (10.4 ) %
               
    Reconciliation of net income to core income:          
    Plus: Non-cash amortization of intangible assets $ 609     $ 812     (25.0 ) %
    Less: Income (loss) from discontinued operations, net of tax   1,637       (110 )   NM
    Less: Net realized gains on investment portfolio   1,382       —     100.0   %
    Less: Unrealized losses on equity securities   (1,963 )     (50 )   NM
    Less: Net tax impact(1)   250       181     38.1    
    Core income(2)   20,651       24,390     (15.3 )  
    Core income per diluted share(2) $ 0.42     $ 0.50     (16.0 ) %
               
    Book value per share $ 5.40     $ 4.27     26.5   %

    NM = Not Meaningful
    (1) In order to reconcile net income to the core income measures, the Company included the tax impact of all adjustments using the 21% federal corporate tax rate.
    (2) Core income and core income per diluted share, both of which are measures that are not based on generally accepted accounting principles (“GAAP”), are reconciled above to net income and net income per diluted share, respectively, the most directly comparable GAAP measures. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.

    Comments from Chief Executive Officer, B. Bradford Martz:

    “We achieved our target combined ratio of 65% and delivered a return on equity over 30% in the first quarter of 2025.  Strong account retention and selective new business production combined with our strategy to retain more of our business resulted in net premiums earned increasing 9% and net loss and loss adjustment expenses decreasing slightly compared to the same period last year. The Company remains focused on disciplined underwriting to support sustainable profitability and value creation for our shareholders throughout the cycle.”

    Return on Equity and Core Return on Equity

    The calculations of the Company’s return on equity and core return on equity are shown below.

       
    ($ in thousands) Three Months Ended
    March 31,
        2025       2024  
    Income from continuing operations, net of tax $ 19,711     $ 23,709  
    Return on equity based on GAAP income from continuing operations, net of tax(1)   32.7 %     68.0 %
           
    Income (loss) from discontinued operations, net of tax $ 1,637     $ (110 )
    Return on equity based on GAAP income (loss) from discontinued operations, net of tax(1)   2.7 %   (0.3 )%
           
    Consolidated net income $ 21,348     $ 23,599  
    Return on equity based on GAAP net income(1)   35.4 %     67.7 %
           
    Core income $ 20,651     $ 24,390  
    Core return on equity(1)(2)   34.2 %     70.0 %

    (1) Return on equity for the three months ended March 31, 2025 and 2024 is calculated on an annualized basis by dividing the net income or core income for the period by the average stockholders’ equity for the trailing twelve months.
    (2) Core return on equity, a measure that is not based on GAAP, is calculated based on core income, which is reconciled on the first page of this press release to net income, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.

    Combined Ratio and Underlying Ratio

    The calculations of the Company’s combined ratio and underlying combined ratio are shown below.

       
    ($ in thousands) Three Months Ended
    March 31,
      2025   2024   Change
    Consolidated              
    Loss ratio, net(1) 16.7 %   19.9 %   (3.2 ) pts
    Expense ratio, net(2) 48.3 %   33.3 %   15.0   pts
    Combined ratio (CR)(3) 65.0 %   53.2 %   11.8   pts
    Effect of current year catastrophe losses on CR — %   0.3 %   (0.3 ) pts
    Effect of prior year (favorable) unfavorable development on CR (3.2 )%   — %   (3.2 ) pts
    Underlying combined ratio(4) 68.2 %   52.9 %   15.3   pts

    (1)  Loss ratio, net is calculated as losses and loss adjustment expenses (“LAE”), net of losses ceded to reinsurers, relative to net premiums earned.
    (2)  Expense ratio, net is calculated as the sum of all operating expenses, less interest expense relative to net premiums earned.
    (3)  Combined ratio is the sum of the loss ratio, net and expense ratio, net.
    (4) Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.

    Combined Ratio Analysis

    The calculations of the Company’s loss ratios and underlying loss ratios are shown below.

       
    ($ in thousands) Three Months Ended
    March 31,
      2025       2024     Change
    Loss and LAE $ 11,389     $ 12,474     $ (1,085 )  
    % of Gross earned premiums   7.0 %     7.8 %     (0.8 ) pts
    % of Net earned premiums   16.7 %     19.9 %     (3.2 ) pts
    Less:          
    Current year catastrophe losses $ —     $ 211     $ (211 )  
    Prior year reserve (favorable) unfavorable development   (2,194 )     24       (2,218 )  
    Underlying loss and LAE(1) $ 13,583     $ 12,239     $ 1,344    
    % of Gross earned premiums   8.4 %     7.6 %     0.8   pts
    % of Net earned premiums   19.9 %     19.6 %     0.3   pts

    (1) Underlying loss and LAE is a non-GAAP financial measure and is reconciled above to loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section, below.

    The calculations of the Company’s expense ratios are shown below.

       
    ($ in thousands) Three Months Ended
    March 31,
      2025       2024     Change
    Policy acquisition costs $ 23,466     $ 9,595     $ 13,871  
    General and administrative   9,506       11,252       (1,746 )
    Total Operating Expenses $ 32,972     $ 20,847     $ 12,125  
    % of Gross earned premiums   20.3 %     13.0 %     7.3 pts
    % of Net earned premiums   48.3 %     33.3 %     15.0 pts
                           

    Quarter to Date Financial Results

    Net income attributable to the Company for the quarter ended March 31, 2025 was $21.3 million, or $0.43 per diluted share, compared to net income of $23.6 million, or $0.48 per diluted share, for the quarter ended March 31, 2024. Drivers of net income during the first quarter of 2025 included increased gross premiums earned and decreased ceded premiums earned, driving an overall increase in revenues. This increase in revenue was offset by increased policy acquisition costs quarter-over-quarter, partially offset by decreased losses and LAE incurred and general and administrative expenses. During the first quarter of 2025, the Company’s net income attributable to discontinued operations was $1.6 million, compared to a net loss of $110 thousand attributable to discontinued operations during the first quarter of 2024.

    The Company’s total gross written premium increased by $13.3 million, or 7.2%, to $197.9 million for the quarter ended March 31, 2025, from $184.6 million for the quarter ended March 31, 2024. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums are shown in the table below.

     
    ($ in thousands) Three Months Ended March 31,        
      2025   2024   Change $   Change %
    Direct Written and Assumed Premium              
    Direct premium $ 197,902     $ 184,601   $ 13,301     7.2 %
    Assumed premium(1)   (50 )     —     (50 )   100.0  
    Total commercial property gross written premium $ 197,852     $ 184,601   $ 13,251     7.2 %

    (1) Assumed premium written for 2025 primarily included commercial property business assumed from unaffiliated insurers subsequently cancelled.

    Loss and LAE decreased by $1.1 million, or 8.8%, to $11.4 million for the quarter ended March 31, 2025, from $12.5 million for the quarter ended March 31, 2024. Loss and LAE expense as a percentage of net earned premiums decreased 3.2 points to 16.7% for the quarter ended March 31, 2025, compared to 19.9% for the quarter ended March 31, 2024. Excluding catastrophe losses and reserve development, the Company’s gross underlying loss and LAE ratio for the quarter ended March 31, 2025, would have been 8.4%, an increase of 0.8 points from 7.6% for the quarter ended March 31, 2024.

    Policy acquisition costs increased by $13.9 million, or 144.8%, to $23.5 million for the quarter ended March 31, 2025, from $9.6 million for the quarter ended March 31, 2024, primarily due to a decrease in ceding commission income as the result of the Company’s decrease in quota share reinsurance coverage from 40% to 20%, effective June 1, 2024. External management fees also increased as a result of a one percent increase in the management fee agreed to in our contract renewal with AmRisc in 2024 and the increase in direct written premiums shown above.

    General and administrative expenses decreased by $1.8 million, or 15.9%, to $9.5 million for the quarter ended March 31, 2025, from $11.3 million for the quarter ended March 31, 2024, driven by a non-recurring employee retention tax credit refund submitted to the Internal Revenue Service in 2022 and received during the first quarter of 2025. This non-recurring refund was previously disclosed in our Annual Report on Form 10-K, filed on March 10, 2025 as a gain contingency. In addition, external spending for audit, actuarial and legal services decreased quarter-over-quarter.

    Reinsurance Costs as a Percentage of Gross Earned Premium

    Reinsurance costs as a percentage of gross earned premium in the first quarter of 2025 and 2024 were as follows:

         
      2025   2024
    Non-at-Risk (0.3) %   (0.2) %
    Quota Share (16.2) %   (31.5) %
    All Other (41.4) %   (29.3) %
    Total Ceding Ratio (57.9) %   (61.0) %
     

    Ceded premiums earned related to the Company’s catastrophe excess of loss contracts increased year-over-year, driven by a decrease in quota share reinsurance coverage from 40% to 20% effective June 1, 2024, which then required additional excess-of-loss coverage to be purchased by the Company. This decrease in quota share reinsurance coverage lowered the Company’s overall ceding ratio, as replacement excess of loss coverage was more cost effective than the 20% quota share contract that was not renewed.

    Investment Portfolio Highlights

    The Company’s cash, restricted cash and investment holdings increased from $540.8 million at December 31, 2024, to $568.8 million at March 31, 2025. This increase was driven by positive cash flows from operations. The Company’s cash and investment holdings consist of investments in U.S. government and agency securities, corporate debt and investment grade money market instruments. Fixed maturities represented approximately 84.3% of total investments at March 31, 2025, compared to 82.3% of total investments at December 31, 2024. The Company’s fixed maturity investments had a modified duration of 2.0 years at March 31, 2025, compared to 2.2 years at December 31, 2024.

    Book Value Analysis

    Book value per common share increased 10.4% from $4.89 at December 31, 2024, to $5.40 at March 31, 2025. Underlying book value per common share increased 8.8% from $5.21 at December 31, 2024, to $5.67 at March 31, 2025. An increase in the Company’s retained earnings as a result of net income for the quarter ended March 31, 2025, drove the increase in the Company’s book value per share. As shown in the table below, removing the effect of Accumulated Other Comprehensive Income (“AOCI”), caused by capital market conditions, increases the Company’s book value per common share at March 31, 2025.

     
    ($ in thousands, except for share and per share data) March 31, 2025   December 31, 2024
       
    Book Value per Share      
    Numerator:      
    Common stockholders’ equity $ 260,880     $ 235,660  
    Denominator:      
    Total Shares Outstanding   48,308,466       48,204,962  
    Book Value Per Common Share $ 5.40     $ 4.89  
           
    Book Value per Share, Excluding the Impact of AOCI      
    Numerator:      
    Common stockholders’ equity $ 260,880     $ 235,660  
    Less: Accumulated other comprehensive loss   (12,836 )     (15,666 )
    Stockholders’ Equity, excluding AOCI $ 273,716     $ 251,326  
    Denominator:      
    Total Shares Outstanding   48,308,466       48,204,962  
    Underlying Book Value Per Common Share(1) $ 5.67     $ 5.21  

    (1) Underlying book value per common share is a non-GAAP financial measure and is reconciled above to book value per common share, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.

    Conference Call Details

    About American Coastal Insurance Corporation

    American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, and Apartments in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned a Financial Stability Rating of “A”, “Exceptional” from Demotech, and maintains an “A-” insurance financial strength rating with a Stable outlook by Kroll. ACIC maintains a ‘BB+’ issuer rating with a Stable outlook by Kroll.

    Contact Information:
    Alexander Baty
    Vice President, Finance & Investor Relations, American Coastal Insurance Corp.
    investorrelations@amcoastal.com
    (727) 425-8076
     
    Karin Daly
    Investor Relations, Vice President, The Equity Group
    kdaly@equityny.com 
    (212) 836-9623

    Definitions of Non-GAAP Measures

    The Company believes that investors’ understanding of ACIC’s performance is enhanced by the Company’s disclosure of the following non-GAAP measures. The Company’s methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

    Net income (loss) excluding the effects of amortization of intangible assets, income (loss) from discontinued operations, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core income (loss)) is a non-GAAP measure that is computed by adding amortization, net of tax, to net income (loss) and subtracting income (loss) from discontinued operations, net of tax, realized gains (losses) on the Company’s investment portfolio, net of tax, and unrealized gains (losses) on the Company’s equity securities, net of tax, from net income (loss). Amortization expense is related to the amortization of intangible assets acquired, including goodwill, through mergers and, therefore, the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of the Company’s operations. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance. The most directly comparable GAAP measure is net income (loss). The core income (loss) measure should not be considered a substitute for net income (loss) and does not reflect the overall profitability of the Company’s business.

    Core return on equity is a non-GAAP ratio calculated using non-GAAP measures. It is calculated by dividing the core income (loss) for the period by the average stockholders’ equity for the trailing twelve months (or one quarter of such average, in the case of quarterly periods). Core income (loss) is an after-tax non-GAAP measure that is calculated by excluding from net income (loss) the effect of income (loss) from discontinued operations, net of tax, non-cash amortization of intangible assets, including goodwill, unrealized gains or losses on the Company’s equity security investments and net realized gains or losses on the Company’s investment portfolio. In the opinion of the Company’s management, core income (loss), core income (loss) per share and core return on equity are meaningful indicators to investors of the Company’s underwriting and operating results, since the excluded items are not necessarily indicative of operating trends. Internally, the Company’s management uses core income (loss), core income (loss) per share and core return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis. The most directly comparable GAAP measure is return on equity. The core return on equity measure should not be considered a substitute for return on equity and does not reflect the overall profitability of the Company’s business.

    Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio.  The Company believes that this ratio is useful to investors, and it is used by management to highlight the trends in the Company’s business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause the Company’s loss trends to vary significantly between periods as a result of their frequency of occurrence and severity and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance.  The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of the Company’s business.

    Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. The Company uses underlying loss and LAE figures to analyze the Company’s loss trends that may be impacted by current year catastrophe losses and prior year development on the Company’s reserves. As discussed previously, these two items can have a significant impact on the Company’s loss trends in a given period. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance. The most directly comparable GAAP measure is net loss and LAE.  The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of the Company’s business.

    Book value per common share, excluding the impact of accumulated other comprehensive loss (underlying book value per common share), is a non-GAAP measure that is computed by dividing common stockholders’ equity after excluding accumulated other comprehensive income (loss), by total common shares outstanding plus dilutive potential common shares outstanding. The Company uses the trend in book value per common share, excluding the impact of accumulated other comprehensive income (loss), in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes this non-GAAP measure is useful to investors because it eliminates the effect of interest rates that can fluctuate significantly from period to period and are generally driven by economic and financial factors that are not influenced by management. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of accumulated other comprehensive income (loss), should not be considered a substitute for book value per common share and does not reflect the recorded net worth of the Company’s business.

    Discontinued Operations

    On May 9, 2024, the Company entered into the Sale Agreement with Forza Insurance Holdings, LLC (“Forza”) in which ACIC agreed to sell and Forza agreed to acquire 100% of the issued and outstanding stock of the Company’s subsidiary, Interboro Insurance Company (“IIC”). Forza’s application to acquire IIC was approved by the New York Department of Financial Services on February 13, 2025 and closed on April 1, 2025. The Company received cash proceeds totaling approximately $26,500,000 from the sale. We do not anticipate that the gain or loss from the deconsolidation of IIC will be material to the financial statements.

    Forward-Looking Statements

    Statements made in this press release, or on the conference call identified above, and otherwise, that are not historical facts are “forward-looking statements”. The Company believes these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions, or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in, or implied by, the forward-looking statements.  These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” “endeavor,” “project,” “believe,” “plan,” “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. Factors that could cause actual results to differ materially may be found in the Company’s filings with the U.S. Securities and Exchange Commission, in the “Risk Factors” section in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.

     
    Consolidated Statements of Comprehensive Income
    In thousands, except share and per share amounts
      Three Months Ended
      March 31,
        2025       2024  
    REVENUE:      
    Gross premiums written $ 197,852     $ 184,601  
    Change in gross unearned premiums   (35,751 )     (24,331 )
    Gross premiums earned   162,101       160,270  
    Ceded premiums earned   (93,829 )     (97,639 )
    Net premiums earned   68,272       62,631  
    Net investment income   4,511       4,017  
    Net realized investment gains   1,382       —  
    Net unrealized losses on equity securities   (1,963 )     (50 )
    Total revenues $ 72,202     $ 66,598  
    EXPENSES:      
    Losses and loss adjustment expenses   11,389       12,474  
    Policy acquisition costs   23,466       9,595  
    General and administrative expenses   9,506       11,252  
    Interest expense   2,717       2,719  
    Total expenses   47,078       36,040  
    Income before other income   25,124       30,558  
    Other income   1,070       810  
    Income before income taxes   26,194       31,368  
    Provision for income taxes   6,483       7,659  
    Income from continuing operations, net of tax $ 19,711     $ 23,709  
    Income (loss) from discontinued operations, net of tax   1,637       (110 )
    Net income $ 21,348     $ 23,599  
    OTHER COMPREHENSIVE INCOME:      
    Change in net unrealized gains (losses) on investments   4,212       (198 )
    Reclassification adjustment for net realized investment gains   (1,382 )     —  
    Total comprehensive income $ 24,178     $ 23,401  
           
    Weighted average shares outstanding      
    Basic   48,135,231       47,323,356  
    Diluted   49,564,721       48,969,550  
           
    Earnings available to ACIC common stockholders per share      
    Basic      
    Continuing operations $ 0.41     $ 0.50  
    Discontinued operations   0.03       —  
    Total $ 0.44     $ 0.50  
    Diluted      
    Continuing operations $ 0.40     $ 0.48  
    Discontinued operations   0.03       —  
    Total $ 0.43     $ 0.48  
           
    Dividends declared per share $ —     $ —  
     
    Consolidated Balance Sheets
    In thousands, except share amounts
      March 31, 2025   December 31, 2024
    ASSETS      
    Investments, at fair value:      
    Fixed maturities, available-for-sale $ 282,960     $ 281,001  
    Equity securities   29,210       36,794  
    Other investments   23,617       23,623  
    Total investments $ 335,787     $ 341,418  
    Cash and cash equivalents   167,155       137,036  
    Restricted cash   65,885       62,357  
    Accrued investment income   2,990       2,964  
    Property and equipment, net   4,803       5,736  
    Premiums receivable, net   61,749       46,564  
    Reinsurance recoverable on paid and unpaid losses   202,391       263,419  
    Ceded unearned premiums   121,138       160,893  
    Goodwill   59,476       59,476  
    Deferred policy acquisition costs   46,342       40,282  
    Intangible assets, net   5,299       5,908  
    Other assets   12,147       16,816  
    Assets held for sale   74,484       73,243  
    Total Assets $ 1,159,646     $ 1,216,112  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Liabilities:      
    Unpaid losses and loss adjustment expenses $ 256,289     $ 322,087  
    Unearned premiums   321,105       285,354  
    Reinsurance payable on premiums   53,761       83,130  
    Accounts payable and accrued expenses   65,883       86,140  
    Operating lease liability   3,302       3,323  
    Notes payable, net   149,104       149,020  
    Other liabilities   986       1,456  
    Liabilities held for sale   48,336       49,942  
    Total Liabilities $ 898,766     $ 980,452  
    Commitments and contingencies      
    Stockholders’ Equity:      
    Preferred stock, $0.0001 par value; 1,000,000 authorized; none issued or outstanding   —       —  
    Common stock, $0.0001 par value; 100,000,000 shares authorized; 48,520,549 and 48,417,045 issued, respectively; 48,308,466 and 48,204,962 outstanding, respectively   5       5  
    Additional paid-in capital   437,566       436,524  
    Treasury shares, at cost; 212,083 shares   (431 )     (431 )
    Accumulated other comprehensive loss   (12,836 )     (15,666 )
    Retained earnings (deficit)   (163,424 )     (184,772 )
    Total Stockholders’ Equity $ 260,880     $ 235,660  
    Total Liabilities and Stockholders’ Equity $ 1,159,646     $ 1,216,112  

    The MIL Network –

    May 9, 2025
  • MIL-OSI: Sprout Social Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, May 08, 2025 (GLOBE NEWSWIRE) — Sprout Social, Inc. (“Sprout Social”, the “Company”) (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced financial results for its first quarter ended March 31, 2025.

    “Our team delivered strong results in the first quarter, highlighted by 13% revenue growth, a 21% increase in cRPO, and profitability expansion,” said Ryan Barretto, CEO of Sprout Social. “We remain focused on winning in the enterprise, deepening customer adoption, scaling through partnerships, and driving expansion within accounts. With the rapid shift toward social as a primary channel for discovery and engagement, we believe our investments in customer care, AI, and influencer marketing uniquely position us to lead brands through this transformation.”

    First Quarter 2025 Financial Highlights

    Revenue

    • Revenue was $109.3 million, up 13% compared to the first quarter of 2024.
    • Total remaining performance obligations (RPO) of $360.2 million as of March 31, 2025, up 24% year-over-year.
    • Current remaining performance obligations (cRPO) of $255.8 million as of March 31, 2025, up 21% year-over-year.

    Operating Income (Loss)

    • GAAP operating loss was ($11.2) million, compared to ($13.3) million in the first quarter of 2024.
    • Non-GAAP operating income was $12.5 million, compared to $6.0 million in the first quarter of 2024.

    Net Loss

    • GAAP net loss was ($11.2) million, compared to ($13.6) million in the first quarter of 2024.
    • Non-GAAP net income was $12.5 million, compared to $5.7 million in the first quarter of 2024.
    • GAAP net loss per share was ($0.19) based on 57.9 million weighted-average shares of common stock outstanding, compared to ($0.24) based on 56.3 million weighted-average shares of common stock outstanding in the first quarter of 2024.
    • Non-GAAP net income per share was $0.22 based on 57.9 million weighted-average shares of common stock outstanding, compared to $0.10 based on 56.3 million weighted-average shares of common stock outstanding in the first quarter of 2024.

    Cash

    • Cash and equivalents and marketable securities totaled $101.9 million as of March 31, 2025, compared to $90.2 million as of December 31, 2024.
    • Net cash provided by operating activities was $18.1 million, compared to $11.2 million in the first quarter of 2024.
    • Non-GAAP free cash flow was $19.5 million, compared to $11.3 million in the first quarter of 2024.

    See “Use of Non-GAAP Financial Measures” below for definitions of Non-GAAP operating income (loss), Non-GAAP net income (loss), Non-GAAP net income (loss) per share and Non-GAAP free cash flow and the financial tables that accompany this release for reconciliations of our non-GAAP measures to their closest comparable GAAP measures. See “Key Business Metrics” below for how Sprout Social defines RPO, cRPO, the number of customers contributing over $10,000 in ARR and the number of customers contributing over $50,000 in ARR.

    Customer Metrics

    • Grew number of customers contributing over $10,000 in ARR to 9,381 customers as of March 31, 2025, up 6% compared to March 31, 2024.
    • Grew number of customers contributing over $50,000 in ARR to 1,766 customers as of March 31, 2025, up 22% compared to March 31, 2024.

    Recent Customer Highlights

    • During the first quarter, we had the opportunity to grow with new and existing customers like: Palo Alto, NASCAR, Interscope Records, Avis Budget Car Rental, and Axos Bank.

    Recent Business Highlights

    Sprout Social recently:

    • Announced a refreshed, intuitive design along with powerful AI-driven natural language discovery and data analysis capabilities for the Sprout Social Influencer Marketing platform (link)
    • Celebrated 15 years of Sprout empowering brands to drive business-wide impact with social (link)

    Second Quarter and 2025 Financial Outlook

    For the second quarter of 2025, the Company currently expects:

    • Total revenue between $110.4 million and $111.2 million.
    • Non-GAAP operating income between $8.4 million and $9.4 million.
    • Non-GAAP net income per share between $0.14 and $0.16 based on approximately 58.8 million weighted-average shares of common stock outstanding.

    For the full year 2025, the Company currently expects:

    • Total revenue between $448.9 million and $453.9 million.
    • Non-GAAP operating income between $40.7 million and $45.7 million.
    • Non-GAAP net income per share between $0.69 and $0.77 based on approximately 59.1 million weighted-average shares of common stock outstanding.

    The Company’s second quarter and 2025 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

    The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to non-GAAP operating income, or net loss per share, the most directly comparable GAAP measure to non-GAAP net income per share, and similarly cannot provide a reconciliation between its forecasted non-GAAP operating income and non-GAAP net income per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.

    Conference Call Information

    The financial results and business highlights will be discussed on a conference call and webcast scheduled at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) today, May 8, 2025. Online registration for this event conference call can be found at https://registrations.events/direct/Q4I191310. The live webcast of the conference call can be accessed from Sprout Social’s investor relations website at http://investors.sproutsocial.com.

    Following completion of the events, a webcast replay will also be available at http://investors.sproutsocial.com for 12 months.

    About Sprout Social
    Sprout Social is a global leader in social media management and analytics software. Sprout’s unified platform puts powerful social data into the hands of approximately 30,000 brands so they can make strategic decisions that drive business growth and innovation. With a full suite of social media management solutions, Sprout offers comprehensive publishing and engagement functionality, customer care, connected workflows and AI-powered business intelligence. Sprout’s award-winning software operates across all major social media networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “explore,” ”future,” “intend,” “long-term model,” “may,” “medium to longer term goals,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q2 2025 and full year 2025 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others: we may not be able to sustain our revenue and customer growth rate in the future, including due to risks associated with our strategic focus on enterprise customers; price increases have and may continue to negatively impact demand for our products, customer acquisition and retention and reduce the total number of customers or customer additions; our business would be harmed by any significant interruptions, delays or outages in services from our platform, our API providers, or certain social media platforms; if we are unable to attract potential customers through unpaid channels, convert this traffic to free trials or convert free trials to paid subscriptions, our business and results of operations may be adversely affected; we may be unable to successfully enter new markets, manage our international expansion and comply with any applicable international laws and regulations; we may be unable to integrate acquired businesses or technologies successfully or achieve the expected benefits of such acquisitions and investments; unstable market, economic, and political conditions, such as recession risks, effects of inflation, trade tensions, changes in government spending, labor shortages, supply chain issues, high interest rates, and the impacts of current and potential future bank failures and ongoing overseas conflicts, have and could continue to adversely impact our business and that of our existing and prospective customers, which may result in reduced demand for our products; we may not be able to generate sufficient cash to service our indebtedness; covenants in our credit agreement may restrict our operations, and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted; any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business; changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brand; and risks related to ongoing legal proceedings. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 26, 2025 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, to be filed with the SEC as well as any future reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those reports as being heightened as a result of the current and ongoing instability in market, economic, and political conditions. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprout Social at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Sprout Social assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

    Use of Non-GAAP Financial Measures

    We have provided in this press release certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Our management uses these non-GAAP financial measures internally in analyzing our financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

    Non-GAAP gross profit. We define non-GAAP gross profit as GAAP gross profit, excluding stock-based compensation expense, amortization expense associated with the acquired developed technology from our acquisition of Tagger Media, Inc. (the “Tagger acquisition”) and restructuring charges. We believe non-GAAP gross profit provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

    Non-GAAP gross margin. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

    Non-GAAP operating income. We define non-GAAP operating income as GAAP loss from operations, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe non-GAAP operating income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

    Non-GAAP operating margin. We define non-GAAP operating margin as non-GAAP operating income (loss) as a percentage of revenue.

    Non-GAAP net income. We define non-GAAP net income as GAAP net loss, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe non-GAAP net income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

    Non-GAAP net income per share. We define non-GAAP net income per share as GAAP net loss per share attributable to common shareholders, basic and diluted, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe non-GAAP net income per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

    Non-GAAP free cash flow. We define non-GAAP free cash flow as net cash provided by operating activities less expenditures for property and equipment, interest payments on our revolving credit facility and payments related to restructuring charges. Non-GAAP free cash flow does not reflect our future contractual obligations or represent the total increase or decrease in our cash balance for a given period. We believe non-GAAP free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by our core operations that, after expenditures for property and equipment, interest payments on our revolving credit facility and payments related to restructuring charges, is available for strategic initiatives.

    Non-GAAP free cash flow margin. We define non-GAAP free cash flow margin as non-GAAP free cash flow as a percentage of revenue.

    Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses. Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses are defined as sales and marketing expenses, research and development expenses and general and administrative expenses, respectively, less stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe these non-GAAP measures provide our management and investors with insight into day-to-day operating expenses given that these measures eliminate the effect of stock-based compensation, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges.

    Key Business Metrics

    Remaining performance obligations (“RPO”). RPO, or remaining performance obligations, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in future periods.

    Current remaining performance obligations (“cRPO”). cRPO, or current RPO, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months.

    Number of customers contributing more than $10,000 in ARR. We define number of customers contributing more than $10,000 in ARR as those on a paid subscription plan that had more than $10,000 in ARR as of a period end. We view the number of customers that contribute more than $10,000 in ARR as a measure of our ability to scale with our customers and attract larger organizations. We believe this represents potential for future growth, including expanding within our current customer base.

    Number of customers contributing more than $50,000 in ARR. We define number of customers contributing more than $50,000 in ARR as those on a paid subscription plan that had more than $50,000 in ARR as of a period end. We view the number of customers that contribute more than $50,000 in ARR as a measure of our ability to scale with large customers and attract sophisticated organizations. We believe this represents potential for future growth, including expanding within our current customer base.

    While we no longer believe that ARR and number of customers are key performance indicators of Sprout Social’s business, these metrics are necessary for an understanding of how we define number of customers contributing over $10,000 in ARR and number of customers contributing over $50,000 in ARR. For this purpose, we define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last date of the specified period and we define a customer as a unique account, multiple accounts containing a common non-personal email domain, or multiple accounts governed by a single agreement or entity.

    Availability of Information on Sprout Social’s Website and Social Media Profiles

    Investors and others should note that Sprout Social routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Sprout Social Investors website. We also intend to use the social media profiles listed below as a means of disclosing information about us to our customers, investors and the public. While not all of the information that the Company posts to the Sprout Social Investors website or to social media profiles is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Sprout Social to review the information that it shares at the Investors link located at the bottom of the page on www.sproutsocial.com and to regularly follow our social media profiles. Users may automatically receive email alerts and other information about Sprout Social when enrolling an email address by visiting “Email Alerts” in the “Shareholder Services” section of Sprout Social’s Investor website at https://investors.sproutsocial.com/.

    Social Media Profiles:
    www.twitter.com/SproutSocial
    www.twitter.com/SproutSocialIR
    www.facebook.com/SproutSocialInc
    www.linkedin.com/company/sprout-social-inc-/
    www.instagram.com/sproutsocial

    Contact

    Media:
    Layla Revis
    Email: pr@sproutsocial.com
    Phone: (866) 878-3231

    Investors:
    Alex Kurtz
    Twitter: @SproutSocialIR
    Email: investors@sproutsocial.com
    Phone: (312) 528-9166

    Sprout Social, Inc.
    Consolidated Statements of Operations (Unaudited)
    (in thousands, except share and per share data)
           
      Three Months Ended March 31,
        2025       2024  
    Revenue      
    Subscription $ 108,680     $ 95,789  
    Professional services and other   609       995  
    Total revenue   109,289       96,784  
    Cost of revenue(1)      
    Subscription   24,473       22,205  
    Professional services and other   365       223  
    Total cost of revenue   24,838       22,428  
    Gross profit   84,451       74,356  
    Operating expenses      
    Research and development(1)   23,229       23,769  
    Sales and marketing(1)   47,452       44,540  
    General and administrative(1)   24,972       19,334  
    Total operating expenses   95,653       87,643  
    Loss from operations   (11,202 )     (13,287 )
    Interest expense   (514 )     (1,046 )
    Interest income   895       1,035  
    Other expense, net   (168 )     (406 )
    Loss before income taxes   (10,989 )     (13,704 )
    Income tax expense (benefit)   231       (129 )
    Net loss $ (11,220 )   $ (13,575 )
    Net loss per share attributable to common shareholders, basic and diluted $ (0.19 )   $ (0.24 )
    Weighted-average shares outstanding used to compute net loss per share, basic and diluted   57,890,898       56,344,242  
           
    (1) Includes stock-based compensation expense as follows:      
      Three Months Ended March 31,
        2025       2024  
    Cost of revenue $ 746     $ 925  
    Research and development   6,206       5,450  
    Sales and marketing   5,936       7,376  
    General and administrative   6,907       4,315  
    Total stock-based compensation expense $ 19,795     $ 18,066  
    Sprout Social, Inc.
    Consolidated Balance Sheets (Unaudited)
    (in thousands, except share and per share data)
       
      March 31,
    2025
      December 31,
    2024
    Assets      
    Current assets      
    Cash and cash equivalents $ 100,902     $ 86,437  
    Marketable securities   1,000       3,745  
    Accounts receivable, net of allowances of $3,119 and $2,169 at March 31, 2025 and December 31, 2024, respectively   64,783       84,033  
    Deferred Commissions   21,803       20,184  
    Prepaid expenses and other assets   19,057       15,816  
    Total current assets   207,545       210,215  
    Property and equipment, net   10,902       10,951  
    Deferred commissions, net of current portion   52,327       51,653  
    Operating lease, right-of-use asset   10,985       11,326  
    Goodwill   121,315       121,315  
    Intangible assets, net   20,621       21,914  
    Other assets, net   962       967  
    Total assets $ 424,657     $ 428,341  
    Liabilities and Stockholders’ Equity      
    Current liabilities      
    Accounts payable $ 7,260     $ 6,984  
    Deferred revenue   173,952       178,585  
    Operating lease liability   3,504       3,747  
    Accrued wages and payroll related benefits   16,002       20,567  
    Accrued expenses and other   13,378       10,869  
    Total current liabilities   214,096       220,752  
    Revolving credit facility   20,000       25,000  
    Deferred revenue, net of current portion   944       1,101  
    Operating lease liability, net of current portion   13,960       14,543  
    Other non-current liabilities   348       351  
    Total liabilities   249,348       261,747  
           
    Stockholders’ equity      
           
    Class A common stock, par value $0.0001 per share; 1,000,000,000 shares authorized; 54,787,894 and 51,845,950 shares issued and outstanding, respectively, at March 31, 2025; 54,219,684 and 51,277,740 shares issued and outstanding, respectively, at December 31, 2024   4       4  
    Class B common stock, par value $0.0001 per share; 25,000,000 shares authorized; 6,536,301 and 6,329,357 shares issued and outstanding, respectively, at March 31, 2025; 6,687,582 and 6,480,638 shares issued and outstanding, respectively, at December 31, 2024   1       1  
    Additional paid-in capital   578,328       558,391  
    Treasury stock, at cost   (37,422 )     (37,422 )
    Accumulated other comprehensive income   1       3  
    Accumulated deficit   (365,603 )     (354,383 )
    Total stockholders’ equity   175,309       166,594  
    Total liabilities and stockholders’ equity $ 424,657     $ 428,341  
    Sprout Social, Inc.
    Consolidated Statements of Cash Flows (Unaudited)
    (in thousands)
           
      Three Months Ended March 31,
        2025       2024  
    Cash flows from operating activities      
    Net loss $ (11,220 )   $ (13,575 )
    Adjustments to reconcile net loss to net cash provided by operating activities      
    Depreciation and amortization of property, equipment and software   1,225       887  
    Amortization of line of credit issuance costs   52       52  
    Accretion of discount on marketable securities   (7 )     (223 )
    Amortization of acquired intangible assets   1,293       1,570  
    Amortization of deferred commissions   5,283       3,523  
    Amortization of right-of-use operating lease asset   341       436  
    Stock-based compensation expense   19,795       18,066  
    Provision for accounts receivable allowances   1,129       56  
    Changes in operating assets and liabilities, excluding impact from business acquisition      
    Accounts receivable   18,122       13,017  
    Prepaid expenses and other current assets   (3,229 )     (7,670 )
    Deferred commissions   (7,577 )     (6,783 )
    Accounts payable and accrued expenses   (1,487 )     (2,865 )
    Deferred revenue   (4,790 )     5,648  
    Lease liabilities   (826 )     (975 )
    Net cash provided by operating activities   18,104       11,164  
    Cash flows from investing activities      
    Expenditures for property and equipment   (1,357 )     (1,092 )
    Payments for business acquisition, net of cash acquired   –       (1,409 )
    Proceeds from maturity of marketable securities   2,750       22,555  
    Net cash provided by investing activities   1,393       20,054  
    Cash flows from financing activities      
    Repayments of line of credit   (5,000 )     (10,000 )
    Employee taxes paid related to the net share settlement of stock-based awards   –       (1,476 )
    Net cash used in financing activities   (5,000 )     (11,476 )
    Net increase in cash, cash equivalents, and restricted cash   14,497       19,742  
    Cash, cash equivalents, and restricted cash      
    Beginning of period   90,418       53,695  
    End of period $ 104,915     $ 73,437  

    The following schedule reflects our non-GAAP financial measures and reconciles our non-GAAP financial measures to the related GAAP financial measures (in thousands, except per share data):

    Reconciliation of Non-GAAP Financial Measures      
           
      Three Months Ended March 31,
        2025       2024  
    Reconciliation of Non-GAAP gross profit      
    Gross profit $ 84,451     $ 74,356  
    Stock-based compensation expense   746       925  
    Amortization of acquired developed technology   705       705  
    Restructuring charges   416       –  
    Non-GAAP gross profit $ 86,318     $ 75,986  
           
    Reconciliation of Non-GAAP operating income    
    Loss from operations $ (11,202 )   $ (13,287 )
    Stock-based compensation expense   19,795       18,066  
    Amortization of acquired intangible assets   1,213       1,213  
    Restructuring charges   2,731       –  
    Non-GAAP operating income $ 12,537     $ 5,992  
           
    Reconciliation of Non-GAAP net income      
    Net loss $ (11,220 )   $ (13,575 )
    Stock-based compensation expense   19,795       18,066  
    Amortization of acquired intangible assets   1,213       1,213  
    Restructuring charges   2,731       –  
    Non-GAAP net income $ 12,519     $ 5,704  
           
    Reconciliation of Non-GAAP net income per share    
    Net loss per share attributable to common shareholders, basic and diluted $ (0.19 )   $ (0.24 )
    Stock-based compensation expense   0.34       0.32  
    Amortization of acquired intangible assets   0.02       0.02  
    Restructuring charges   0.05       –  
    Non-GAAP net income per share $ 0.22     $ 0.10  
           
    Reconciliation of Non-GAAP free cash flow      
    Net cash provided by operating activities $ 18,104     $ 11,164  
    Expenditures for property and equipment   (1,357 )     (1,092 )
    Interest paid on credit facility   484       1,260  
    Payments related to restructuring charges   2,249       –  
    Non-GAAP free cash flow $ 19,480     $ 11,332  

    The MIL Network –

    May 9, 2025
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