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

Source: GlobeNewswire (MIL-OSI)

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

Declared Quarterly Distribution of $0.41 Per Share;

Stable NAV/Strong Credit Quality

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

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

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

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

FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED MARCH 31, 2025:

At March 31, 2025:

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

Operating Results for the Quarter Ended March 31, 2025:

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

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

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

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

Comprehensive Investment Portfolio

Portfolio Activity

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

For the Quarter Ended March 31, 2025 *($mm)*

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

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

Comprehensive Investment Portfolio Composition

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

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

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

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

SLR Investment Corp. Portfolio

Asset Quality

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

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

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

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

Investment Income Contribution by Asset Class

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

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

SLR Senior Lending Program LLC (SSLP)

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

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

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

Investment Income

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

Expenses

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

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

Net Investment Income

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

Net Realized and Unrealized Loss

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

Net Increase in Net Assets Resulting from Operations

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

Capital and Liquidity

Credit Facilities

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

Unsecured Debt

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

Leverage

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

Available Capital

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

Unfunded Commitments

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

Subsequent Events

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

Conference Call and Webcast Information

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

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

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

Assets	March 31, 2025 (unaudited)		December31, 2024
Investments at fair value:
Companies less than 5% owned (cost: $1,015,960 and $1,019,357, respectively)	$	1,021,278		$	1,027,457
Companies 5% to 25% owned (cost: $105,224 and $103,655, respectively)		89,490			89,945
Companies more than 25% owned (cost: $918,904 and $916,554, respectively)		893,631			888,232
Cash		19,931			16,761
Cash equivalents (cost: $447,074 and $397,510, respectively)		447,074			397,510
Dividends receivable		17,423			15,375
Interest receivable		11,645			11,993
Receivable for investments sold		1,336			1,573
Prepaid expenses and other assets		1,164			571
Total assets	$	2,502,972		$	2,449,417
Liabilities
Debt ($1,048,260 and $1,041,093 face amounts, respectively, reported net of unamortized debt issuance costs of $8,848 and $9,399, respectively.	$	1,039,412		$	1,031,694
Payable for investments and cash equivalents purchased		447,074			397,510
Management fee payable		7,513			7,739
Performance-based incentive fee payable		5,523			5,920
Interest payable		6,040			7,836
Administrative services payable		4,084			3,332
Other liabilities and accrued expenses		2,841			2,460
Total liabilities	$	1,512,487		$	1,456,491

Net Assets
Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares
authorized, respectively, and 54,554,634 and 54,554,634 shares issued and
outstanding, respectively	$	546		$	546
Paid-in capital in excess of par		1,117,606			1,117,606
Accumulated distributable net loss		(127,667	)		(125,226	)
Total net assets	$	990,485		$	992,926
Net Asset Value Per Share	$	18.16		$	18.20

SLR INVESTMENT CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts)

	Three months ended
	March 31, 2025			March 31, 2024
INVESTMENT INCOME:
Interest:
Companies less than 5% owned	$	29,174		$	41,004
Companies 5% to 25% owned		1,224			831
Companies more than 25% owned		3,235			3,338
Dividends:
Companies 5% to 25% owned		770			—
Companies more than 25% owned		17,796			12,227
Other income:
Companies less than 5% owned		874			574
Companies more than 25% owned		105			125
Total investment income		53,178			58,099
EXPENSES:
Management fees		7,513			7,882
Performance-based incentive fees		5,526			5,952
Interest and other credit facility expenses		15,840			18,188
Administrative services expense		1,361			1,376
Other general and administrative expenses		835			895
Total expenses		31,075			34,293
Performance-based incentive fees waived		(2	)		(46	)
Net expenses		31,073			34,247
Net investment income	$	22,105		$	23,852
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS:
Net realized gain (loss) on investments and cash equivalents (companies less than 5% owned)	$	(422)		$	135
Net change in unrealized gain (loss) on investments and cash equivalents:
Companies less than 5% owned		(2,780	)		3,484
Companies 5% to 25% owned		(2,027	)		1
Companies more than 25% owned		3,050			399
Net change in unrealized gain (loss) on investments and cash equivalents		(1,757	)		3,884
Net realized and unrealized gain (loss) on investments and cash equivalents		(2,179	)		4,019
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	19,926		$	27,871
EARNINGS PER SHARE	$	0.37		$	0.51

About SLR Investment Corp.

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

Forward-Looking Statements

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

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

The MIL Network –

May 8, 2025

MIL-OSI: Remitly Reports First Quarter 2025 Results Above Outlook and Raises Full Year 2025 Outlook

Source: GlobeNewswire (MIL-OSI)

First quarter send volume up 41% and revenue up 34% year over year
First quarter net income was $11.4 million and Adjusted EBITDA was $58.4 million

SEATTLE, May 07, 2025 (GLOBE NEWSWIRE) — Remitly Global, Inc. (NASDAQ: RELY), a trusted provider of digital financial services that transcend borders, reported results for the first quarter ended March 31, 2025.

“We delivered an outstanding start to the year, significantly exceeding our expectations for the first quarter,” said Matt Oppenheimer, co-founder and Chief Executive Officer, Remitly. “This performance was driven by the deep and growing trust our customers place in us to deliver a fast, reliable, and secure experience. As that trust continues to grow, so does our ability to scale efficiently and profitably. Based on these strong results, we are raising our full year 2025 outlook for both revenue and Adjusted EBITDA.”

First Quarter 2025 Highlights and Key Operating Data
(All comparisons relative to the first quarter of 2024)

Active customers increased to 8.0 million, from 6.2 million, up 29%.
Send volume increased to $16.2 billion, from $11.5 billion, up 41%.
Revenue totaled $361.6 million, compared to $269.1 million, up 34%.
Net income was $11.4 million, compared to a net loss of $21.1 million.
Adjusted EBITDA was $58.4 million, compared to $22.8 million, up 157%.

2025 Financial Outlook
For fiscal year 2025, Remitly currently expects:

Total revenue in the range of $1.574 billion to $1.587 billion, representing a growth rate of 25% to 26% year over year. This outlook reflects an increase from our prior revenue outlook in the range of $1.565 billion to $1.580 billion.
GAAP net income to be positive for 2025 and for Adjusted EBITDA to be in the range of $195 million to $210 million. This outlook reflects an increase from our prior Adjusted EBITDA outlook in the range of $180 million to $200 million.

For the second quarter of 2025, Remitly currently expects:

Total revenue in the range of $383 million to $385 million, representing a growth rate of 25% to 26% year over year.
A GAAP net loss position for the second quarter of 2025 and for Adjusted EBITDA to be in the range of $45 million to $47 million.

As previously announced on February 19, 2025, the Company’s non-GAAP financial measures have been updated to exclude the impact of payroll taxes related to stock-based compensation expense, net. The Company considers this adjustment to improve the usefulness of its non-GAAP financial measures in evaluating underlying operating performance by more completely reflecting the extent of stock-based compensation expense, net, and related impacts. This update has no effect on any of the Company’s previously reported GAAP results for any period. Non-GAAP financial measures for 2024 and 2023 have been recast to reflect this change, and the financial outlook guidance previously provided on February 19, 2025, was in accordance with this updated presentation. See historical non-GAAP reconciliations included below.

Reconciliation of GAAP to Non-GAAP Financial Measures
A reconciliation of accounting principles generally accepted in the United States of America (“GAAP”) to non-GAAP financial measures has been provided in the financial statement tables included in this earnings release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” We have not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP income (loss) before income taxes within this earnings release because we cannot, without unreasonable effort, calculate certain reconciling items with confidence due to the variability, complexity, and limited visibility of the adjusting items that would be excluded from forecasted Adjusted EBITDA. These items include, but are not limited to, income taxes, stock-based compensation expense, and payroll taxes related to stock-based compensation expense, which are directly impacted by unpredictable fluctuations in the market price of our common stock. The variability of these items could have a significant impact on our future GAAP financial results.

Note: All percentage changes described within this press release are calculated using amounts in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”), for which revenue and active customers are presented in thousands and send volume is presented in millions. Rounding differences may occur when individually calculating percentages or totals from rounded amounts included within the press release body as compared to the amounts included within the Company’s SEC filings.

Webcast Information
Remitly will host a webcast at 5:00 p.m. Eastern time on Wednesday, May 7, 2025 to discuss its first quarter 2025 financial results. The live webcast and investor presentation will be accessible on Remitly’s website at https://ir.remitly.com. A webcast replay will be available on our website at https://ir.remitly.com following the live event.

We have used, and intend to continue to use, the Investor Relations section of our website at https://ir.remitly.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

Non-GAAP Financial Measures
Some of the financial information and data contained in this earnings release, such as Adjusted EBITDA and non-GAAP operating expenses, have not been prepared in accordance with GAAP.

We regularly review our key business metrics and non-GAAP financial measures to evaluate our performance, identify trends affecting our business, prepare financial projections, and make strategic decisions. We believe that these key business metrics and non-GAAP financial measures provide meaningful supplemental information for management and investors in assessing our historical and future operating performance. Adjusted EBITDA and non-GAAP operating expenses are key output measures used by our management to evaluate our operating performance, inform future operating plans, and make strategic long-term decisions, including those relating to operating expenses and the allocation of internal resources. Remitly believes that the use of Adjusted EBITDA and non-GAAP operating expenses provides additional tools to assess operational performance and trends in, and in comparing Remitly’s financial measures with, other similar companies, many of which present similar non-GAAP financial measures to investors. Remitly’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Remitly’s financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.

We calculate Adjusted EBITDA as net income (loss) adjusted by (i) interest (income) expense, net, (ii) provision for income taxes, (iii) noncash charges of depreciation and amortization, (iv) other income (expense), net, (v) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, (vi) noncash stock-based compensation expense, net, (vii) payroll taxes related to stock-based compensation expense, net, and (viii) certain integration, restructuring, and other costs. We calculate non-GAAP operating expenses as our GAAP operating expenses adjusted by (i) noncash stock-based compensation expense, net, (ii) payroll taxes related to stock-based compensation expense, net, (iii) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, as well as (iv) certain integration, restructuring, and other costs.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future results of operations and financial position, including our fiscal year and second quarter 2025 financial outlook, including forecasted fiscal year and second quarter 2025 revenue, net income (loss), and Adjusted EBITDA, anticipated future expenses and investments, expectations relating to certain of our key financial and operating metrics, our business strategy and plans, our growth, our position and potential opportunities, and our objectives for future operations. The words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “likely,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including risks and uncertainties related to our expectations regarding our revenue, expenses, and other operating results; our ability to acquire new customers and successfully retain existing customers; our ability to develop new products and services in a timely manner; our ability to achieve or sustain our profitability; our ability to maintain and expand our strategic relationships with third parties; our business plan and our ability to effectively manage our growth; anticipated trends, growth rates, and challenges in our business and in the market segments in which we operate; our ability to attract and retain qualified employees; uncertainties regarding the impact of geopolitical and macroeconomic conditions, including currency fluctuations, inflation, regulatory changes (including as may be related to immigration, fiscal policy, foreign trade, or foreign investment), or regional and global conflicts or related government sanctions; our ability to maintain the security and availability of our solutions; our ability to maintain our money transmission licenses and other regulatory clearances; our ability to maintain and expand international operations; and our expectations regarding anticipated technology needs and developments and our ability to address those needs and developments with our solutions. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results is included in our quarterly report on Form 10-Q for the quarter ended March 31, 2025 to be filed with the SEC, and within our annual report on Form 10-K for the year ended December 31, 2024 filed with the SEC, which are or will be available on our website at https://ir.remitly.com and on the SEC’s website at www.sec.gov. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

About Remitly
Remitly is a trusted provider of digital financial services that transcend borders. With a global footprint spanning more than 170 countries, Remitly’s digitally native, cross-border payments app delights customers with a fast, reliable, and transparent money movement experience. Building on its strong foundation, Remitly is expanding its suite of products to further its vision and transform lives around the world.

Contacts

Media Inquiries:
press@remitly.com

Investor Relations:
Stephen Shulstein
stephens@remitly.com



REMITLY GLOBAL, INC. Condensed Consolidated Statements of Operations (unaudited)

	Three Months Ended March 31,
(in thousands, except share and per share data)		2025			2024
Revenue	$	361,624		$	269,118
Costs and expenses
Transaction expenses⁽¹⁾		121,393			89,881
Customer support and operations⁽¹⁾		22,573			20,119
Marketing⁽¹⁾		73,349			68,014
Technology and development⁽¹⁾		73,851			63,206
General and administrative⁽¹⁾		52,829			44,173
Depreciation and amortization		5,396			3,678
Total costs and expenses		349,391			289,071
Income (loss) from operations		12,233			(19,953	)
Interest income		1,787			2,226
Interest expense		(1,299	)		(769	)
Other income (expense), net		2,221			(1,586	)
Income (loss) before provision for income taxes		14,942			(20,082	)
Provision for income taxes		3,590			998
Net income (loss)	$	11,352		$	(21,080	)
Net income (loss) per share attributable to common stockholders:
Basic	$	0.06		$	(0.11	)
Diluted	$	0.05		$	(0.11	)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic		201,744,601			189,848,799
Diluted		218,414,823			189,848,799

_________________________
⁽¹⁾ Exclusive of depreciation and amortization, shown separately.


REMITLY GLOBAL, INC. Condensed Consolidated Balance Sheets (unaudited)

	March 31,			December 31,
(in thousands)		2025			2024
Assets
Current assets
Cash and cash equivalents	$	493,905		$	368,097
Disbursement prefunding		217,549			288,934
Customer funds receivable, net		213,554			193,965
Prepaid expenses and other current assets		53,710			46,518
Total current assets		978,718			897,514
Property and equipment, net		41,456			31,566
Operating lease right-of-use assets		11,896			13,002
Goodwill		54,940			54,940
Intangible assets, net		8,379			10,463
Other noncurrent assets, net		5,197			5,386
Total assets	$	1,100,586		$	1,012,871
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	38,907		$	16,159
Customer liabilities		192,186			188,984
Short-term debt		2,421			2,468
Accrued expenses and other current liabilities		114,545			116,652
Operating lease liabilities		4,098			4,745
Total current liabilities		352,157			329,008
Operating lease liabilities, noncurrent		14,728			9,073
Other noncurrent liabilities		10,225			9,319
Total liabilities		377,110			347,400
Commitments and contingencies
Stockholders’ equity
Common stock		20			20
Additional paid-in capital		1,240,310			1,195,390
Accumulated other comprehensive income (loss)		75			(1,658	)
Accumulated deficit		(516,929	)		(528,281	)
Total stockholders’ equity		723,476			665,471
Total liabilities and stockholders’ equity	$	1,100,586		$	1,012,871


REMITLY GLOBAL, INC. Condensed Consolidated Statements of Cash Flows (unaudited)

	Three Months Ended March 31,
(in thousands)		2025			2024
Cash flows from operating activities
Net income (loss)	$	11,352		$	(21,080	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		5,396			3,678
Stock-based compensation expense, net		35,792			34,088
Donation of common stock		959			—
Other		(4	)		249
Changes in operating assets and liabilities:
Disbursement prefunding		71,385			(6,194	)
Customer funds receivable		(16,283	)		(59,432	)
Prepaid expenses and other assets		(6,272	)		(10,377	)
Operating lease right-of-use assets		2,041			1,392
Accounts payable		22,182			(22,707	)
Customer liabilities		2,487			14,744
Accrued expenses and other liabilities		(198	)		10,429
Operating lease liabilities		4,066			(1,598	)
Net cash provided by (used in) operating activities		132,903			(56,808	)
Cash flows from investing activities
Purchases of property and equipment, and other		(13,963	)		(945	)
Capitalized internal-use software costs		(2,949	)		(3,369	)
Net cash used in investing activities		(16,912	)		(4,314	)
Cash flows from financing activities
Proceeds from exercise of stock options		2,392			2,483
Proceeds from issuance of common stock in connection with ESPP		5,768			5,004
Proceeds from revolving credit facility borrowings		1,059,000			275,000
Repayments of revolving credit facility borrowings		(1,059,000	)		(255,000	)
Taxes paid related to net share settlement of equity awards		(1,089	)		(1,366	)
Net cash provided by financing activities		7,071			26,121
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash		2,728			(1,099	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		125,790			(36,100	)
Cash, cash equivalents, and restricted cash at beginning of period		369,817			325,029
Cash, cash equivalents, and restricted cash at end of period	$	495,607		$	288,929
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents	$	493,905		$	285,997
Restricted cash included in prepaid expenses and other current assets		632			2,190
Restricted cash included in other noncurrent assets, net		1,070			742
Total cash, cash equivalents, and restricted cash	$	495,607		$	288,929


REMITLY GLOBAL, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)

*Reconciliation of net income (loss) to Adjusted EBITDA:*

	Three Months Ended March 31,
(in thousands)		2025		2024⁽²⁾
Net income (loss)	$	11,352		$	(21,080	)
Add:
Interest income, net		(488	)		(1,457	)
Provision for income taxes		3,590			998
Depreciation and amortization		5,396			3,678
Other (income) expense, net		(2,221	)		1,569
Donation of common stock		959			—
Stock-based compensation expense, net		35,792			34,088
Payroll taxes related to stock-based compensation expense, net		3,140			3,515
Integration, restructuring, and other costs⁽¹⁾		908			1,468
Adjusted EBITDA	$	58,428		$	22,779

_________________________
⁽¹⁾ Integration, restructuring, and other costs for the three months ended March 31, 2025 consisted primarily of non-recurring termination benefits. Integration, restructuring, and other costs for the three months ended March 31, 2024 consisted primarily of $0.8 million in restructuring charges incurred, $0.5 million of non-recurring legal charges, and $0.2 million related to the change in the fair value of the holdback liability associated with the acquisition of Rewire (O.S.G.) Research and Development Ltd.
⁽²⁾ As previously announced on February 19, 2025, the Company’s presentation of Adjusted EBITDA now excludes the impact of payroll taxes related to stock-based compensation expense, net. Prior period Adjusted EBITDA has been recast to reflect this change.

*Reconciliation of operating expenses to non-GAAP operating expenses:*

	Three Months Ended March 31,
(in thousands)		2025	2024⁽¹⁾
Customer support and operations	$	22,573	$	20,119
Excluding: Stock-based compensation expense, net		256		353
Excluding: Payroll taxes related to stock-based compensation expense, net		8		10
Excluding: Integration, restructuring, and other costs		—		758
Non-GAAP customer support and operations	$	22,309	$	18,998

	Three Months Ended March 31,
		2025	2024⁽¹⁾
Marketing	$	73,349	$	68,014
Excluding: Stock-based compensation expense, net		4,127		3,979
Excluding: Payroll taxes related to stock-based compensation expense, net		456		493
Excluding: Integration, restructuring, and other costs		490		—
Non-GAAP marketing	$	68,276	$	63,542

	Three Months Ended March 31,
		2025	2024⁽¹⁾
Technology and development	$	73,851	$	63,206
Excluding: Stock-based compensation expense, net		21,237		19,627
Excluding: Payroll taxes related to stock-based compensation expense, net		1,981		2,012
Non-GAAP technology and development	$	50,633	$	41,567

	Three Months Ended March 31,
		2025	2024⁽¹⁾
General and administrative	$	52,829	$	44,173
Excluding: Stock-based compensation expense, net		10,172		10,129
Excluding: Payroll taxes related to stock-based compensation expense, net		695		1,000
Excluding: Donation of common stock		959		—
Excluding: Integration, restructuring, and other costs		418		710
Non-GAAP general and administrative	$	40,585	$	32,334

_________________________
⁽¹⁾ As previously announced on February 19, 2025, the Company’s presentation of non-GAAP operating expenses now excludes the impact of payroll taxes related to stock-based compensation expense, net. Prior period non-GAAP operating expenses have been recast to reflect this change.

As previously announced on February 19, 2025, the Company’s non-GAAP financial measures have been updated to exclude the impact of payroll taxes related to stock-based compensation expense, net. The below reconciliations show the 2024 and 2023 non-GAAP financial measures under the new presentation, which excludes the impact of payroll taxes related to stock-based compensation expense, net.

In future periods, the Company expects to exclude the impact of payroll taxes related to stock-based compensation expense, net, from the Company’s non-GAAP financial measures and will not include the 2024 and 2023 recast reconciliations for this update in future filings.

*Reconciliation of net income (loss) to Adjusted EBITDA (New Presentation):*

	Three Months Ended																								Years Ended December 31,
(in thousands)	Q1 2023			Q2 2023			Q3 2023			Q4 2023			Q1 2024			Q2 2024			Q3 2024			Q4 2024				2023			2024
Net income (loss)	$	(28,314	)	$	(18,850	)	$	(35,655	)	$	(35,021	)	$	(21,080	)	$	(12,091	)	$	1,917		$	(5,724	)	$	(117,840	)	$	(36,978	)
Add:
Interest income, net		(1,635	)		(776	)		(1,223	)		(1,461	)		(1,457	)		(1,197	)		(1,305	)		(877	)		(5,095	)		(4,836	)
Provision (benefit) for income taxes		370			(143	)		258			5,417			998			3,290			1,850			589			5,902			6,727
Depreciation and amortization		3,029			3,187			3,418			3,484			3,678			3,907			4,655			5,814			13,118			18,054
Other (income) expense, net		1,505			1,482			(376	)		(8	)		1,569			(5,962	)		(2,274	)		2,273			2,603			(4,394	)
Donation of common stock		—			—			4,600			—			—			—			2,587			—			4,600			2,587
Stock-based compensation expense, net		29,234			35,200			36,573			35,960			34,088			37,157			39,278			41,614			136,967			152,137
Payroll taxes related to stock-based compensation expense, net		1,901			1,432			1,355			1,058			3,515			1,144			733			1,047			5,746			6,439
Acquisition, integration, restructuring, and other costs		1,173			316			2,901			(193	)		1,468			—			—			—			4,197			1,468
Adjusted EBITDA	$	7,263		$	21,848		$	11,851		$	9,236		$	22,779		$	26,248		$	47,441		$	44,736		$	50,198		$	141,204

*Reconciliation of operating expenses to non-GAAP operating expenses (New Presentation):*

	Three Months Ended																	Years Ended December 31,
(in thousands)	Q1 2023		Q2 2023		Q3 2023		Q4 2023			Q1 2024		Q2 2024		Q3 2024		Q4 2024			2023		2024
Customer support and operations	$	19,931	$	21,483	$	21,190	$	19,917		$	20,119	$	19,999	$	21,792	$	22,008	$	82,521	$	83,918
Excluding: Stock-based compensation expense, net		205		419		386		394			353		259		278		268		1,404		1,158
Excluding: Payroll taxes related to stock-based compensation		31		14		15		11			10		4		5		3		71		22
Excluding: Acquisition, integration, restructuring, and other costs		—		—		739		—			758		—		—		—		739		758
Non-GAAP customer support and operations	$	19,695	$	21,050	$	20,050	$	19,512		$	18,998	$	19,736	$	21,509	$	21,737	$	80,307	$	81,980

	Three Months Ended																	Years Ended December 31,
	Q1 2023		Q2 2023		Q3 2023		Q4 2023			Q1 2024		Q2 2024		Q3 2024		Q4 2024			2023		2024
Marketing	$	44,123	$	53,600	$	61,351	$	75,343		$	68,014	$	77,056	$	74,792	$	83,937	$	234,417	$	303,799
Excluding: Stock-based compensation expense, net		2,983		4,727		4,525		3,930			3,979		4,521		4,514		4,595		16,165		17,609
Excluding: Payroll taxes related to stock-based compensation		186		229		217		157			493		236		179		352		789		1,260
Non-GAAP marketing	$	40,954	$	48,644	$	56,609	$	71,256		$	63,542	$	72,299	$	70,099	$	78,990	$	217,463	$	284,930

	Three Months Ended																	Years Ended December 31,
	Q1 2023		Q2 2023		Q3 2023		Q4 2023			Q1 2024		Q2 2024		Q3 2024		Q4 2024			2023		2024
Technology and development	$	49,376	$	54,309	$	57,014	$	59,240		$	63,206	$	67,554	$	68,446	$	70,611	$	219,939	$	269,817
Excluding: Stock-based compensation expense, net		16,631		18,588		19,828		19,920			19,627		20,354		21,873		22,527		74,967		84,381
Excluding: Payroll taxes related to stock-based compensation		1,010		745		651		532			2,012		620		351		428		2,938		3,411
Excluding: Acquisition, integration, restructuring, and other costs		—		—		524		700			—		—		—		—		1,224		—
Non-GAAP technology and development	$	31,735	$	34,976	$	36,011	$	38,088		$	41,567	$	46,580	$	46,222	$	47,656	$	140,810	$	182,025

	Three Months Ended																	Years Ended December 31,
	Q1 2023		Q2 2023		Q3 2023		Q4 2023			Q1 2024		Q2 2024		Q3 2024		Q4 2024			2023		2024
General and administrative	$	41,408	$	39,490	$	49,817	$	48,657		$	44,173	$	45,889	$	50,920	$	54,875	$	179,372	$	195,857
Excluding: Stock-based compensation expense, net		9,415		11,466		11,834		11,716			10,129		12,023		12,613		14,224		44,431		48,989
Excluding: Payroll taxes related to stock-based compensation		674		444		472		358			1,000		284		198		264		1,948		1,746
Excluding: Donation of common stock		—		—		4,600		—			—		—		2,587		—		4,600		2,587
Excluding: Acquisition, integration, restructuring, and other costs		1,173		316		1,638		(893	)		710		—		—		—		2,234		710
Non-GAAP general and administrative	$	30,146	$	27,264	$	31,273	$	37,476		$	32,334	$	33,582	$	35,522	$	40,387	$	126,159	$	141,825

The MIL Network –

May 8, 2025

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

Source: GlobeNewswire (MIL-OSI)

Headlines

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

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

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

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2025			2024			2025			2024
GAAP revenue ⁽⁴⁾	$	78.0		$	67.8		$	128.9		$	206.2
GAAP gross margin		77.1	%		69.2	%		72.3	%		77.1	%
GAAP total operating expenses ⁽³⁾	$	42.8		$	311.3		$	92.8		$	364.7
Non-GAAP total operating expenses	$	34.1		$	50.0		$	68.2		$	94.4
GAAP net income (loss) ⁽³⁾	$	21.7		$	(278.0	)	$	(2.6	)	$	(254.1	)
Adjusted EBITDA	$	29.5		$	(0.3	)	$	30.8		$	70.1
Free cash flow	$	13.1		$	(0.8	)	$	21.0		$	(4.5	)
GAAP net income (loss) per share – diluted ⁽³⁾	$	0.46		$	(6.66	)	$	(0.06	)	$	(6.13	)

(1) As previously disclosed, for the six months ended March 31, 2024, revenue includes the non-cash revenue associated with the Toyota “Legacy” contract and related impacts totaling $86.6M. (2) Please refer to the “Discussion of Non-GAAP Financial Measures” and “Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures” included elsewhere in this release for more information regarding our use of non-GAAP financial measures. (3) As previously disclosed, for the six months ended March 31, 2024, operating expenses include a Goodwill impairment charge of $252M. (4) Q2FY25 and Q2FY24 revenue include $21.5 million and $10.4 million of revenue from fixed license contracts, respectively.

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

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

Key Performance Indicator¹	Q2FY25
Percent of worldwide auto production with Cerence Technology (trailing twelve months (“TTM”))	51	%
Change in number of Cerence connected cars shipped (TTM over prior year TTM)²	10	%
Change in Adjusted Total Billings (TTM over prior year TTM)³	0	%

(1) Please refer to the “Key Performance Indicators” section included elsewhere in this release for more information regarding the definitions and our use of key performance indicators. (2) Based on IHS Markit data, global auto production decreased 1%, calculated TTM over prior year TTM. (3) Adjusted Total Billings excludes professional services and prepay contracts and is adjusted for prepay consumption. Change in Adjusted Total Billings is calculated TTM over prior year TTM.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2025			2024			2025			2024
GAAP revenue	$	78,010		$	67,825		$	128,906		$	206,160

GAAP gross profit	$	60,181		$	46,943		$	93,253		$	158,943
GAAP gross margin		77.1	%		69.2	%		72.3	%		77.1	%

GAAP total operating expenses	$	42,829		$	311,326		$	92,834		$	364,746
Stock-based compensation		5,374			4,079			9,692			11,818
Amortization of intangible assets		536			555			1,090			1,203
Restructuring and other costs, net		2,832			4,551			13,894			5,256
Goodwill impairment		–			252,096			–			252,096
Non-GAAP total operating expenses	$	34,087		$	50,045		$	68,158		$	94,373

GAAP net income (loss)	$	21,656		$	(277,976	)	$	(2,632	)	$	(254,119	)
Stock-based compensation*		5,931			4,745			10,739			13,125
Amortization of intangible assets		536			555			1,090			1,203
Restructuring and other costs, net*		2,832			4,551			13,894			5,256
Goodwill impairment		–			252,096			–			252,096
Depreciation		2,812			2,143			4,703			4,181
Total other expense, net		1,299			1,946			2,983			2,328
(Benefit from) provision for income taxes		(5,603	)		11,647			68			45,988
Adjusted EBITDA	$	29,463		$	(293	)	$	30,845		$	70,058

GAAP net cash provided by (used in) operating activities	$	15,466		$	1,044		$	24,720		$	(1,771	)
Capital expenditures		(2,343	)		(1,845	)		(3,703	)		(2,776	)
Free cash flow	$	13,123		$	(801	)	$	21,017		$	(4,547	)
* – $3.0 million in stock-based compensation is included in Restructuring and other costs, net for the six months ended March 31, 2025.

The MIL Network –

May 8, 2025

MIL-OSI: Open Lending Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

AUSTIN, Texas, May 07, 2025 (GLOBE NEWSWIRE) — Open Lending Corporation (Nasdaq: LPRO) (the “Company” or “Open Lending”), an industry trailblazer in lending enablement and risk analytics solutions for financial institutions, today reported financial results for its first quarter ended March 31, 2025.

“I believe in Open Lending’s business model, our value proposition to our customers, and the team’s ability to execute on our plan going forward,” said Jessica Buss, Chief Executive Officer of Open Lending. “We are honored to continue serving over 400 lender customers and their communities and have taken actions in an effort to further enhance our customers’ experience. We believe that we have seen promising early results as we implement new ways to demonstrate how we enhance lender profitability.

“We have introduced new loan measures and refined pricing in an effort to help reduce volatility in the expected profit share revenue of our future certified loans as compared to our historic vintages. Additionally, our board of directors has authorized a $25 million share repurchase program. We have a clear plan, a dedicated team, a consistent base of customers and partners, and a strong balance sheet, and we believe that we are well-positioned to generate value for all Open Lending stakeholders.”

Three Months Ended March 31, 2025 Highlights

The Company facilitated 27,638 certified loans during the first quarter of 2025, compared to 28,189 certified loans in the first quarter of 2024.
Total revenue was $24.4 million during the first quarter of 2025, compared to $30.7 million in the first quarter of 2024.
- The decrease in total revenue during the period includes a $7.4 million decrease in estimated profit share revenue associated with new originations, primarily driven by lower unit economics per certified loan.
- In addition, the first quarter of 2025 was impacted by a $0.9 million reduction in estimated profit share revenues related to business in historic vintages as compared to a $1.1 million reduction in the first quarter of 2024.
Gross profit was $18.3 million during the first quarter of 2025, compared to $25.0 million in the first quarter of 2024.
Net income was $0.6 million during the first quarter of 2025, compared to $5.1 million in the first quarter of 2024.
Adjusted EBITDA was $5.7 million during the first quarter of 2025, compared to $12.5 million in the first quarter of 2024.

Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure is provided in the financial table included at the end of this press release. An explanation of this measure and how it is calculated is also included under the heading “Non-GAAP Financial Measures.”

Second Quarter 2025 Outlook
For the second quarter of 2025, the Company currently expects total certified loans to be between 25,500 and 27,500.

The guidance provided includes forward-looking statements within the meaning of U.S. securities laws. See “Forward-Looking Statements” below.

Open Lending will host a conference call to discuss the first quarter 2025 financial results on May 7, 2025 at 5:00 pm ET. The conference call will be webcast live from the Company’s investor relations website at https://investors.openlending.com/ under the “Events” section. The conference call can also be accessed live over the phone by dialing (800) 445-7795, or for international callers (785) 424-1699. An archive of the webcast will be available at the same location on the website shortly after the call has concluded.

Share Repurchase Program
On May 1, 2025, the Board of Directors authorized share repurchases under a share repurchase program (the “Share Repurchase Program”) allowing the Company to repurchase up to $25.0 million of the Company’s outstanding common stock until May 1, 2026. Repurchases may be made at management’s discretion from time to time in the open market. The Share Repurchase Program may be suspended, amended, or discontinued at any time.

About Open Lending
Open Lending (Nasdaq: LPRO) provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders throughout the United States. For over 20 years, we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit www.openlending.com.

Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements related to the Company’s new loan measures, lender profitability, volatility, the Share Repurchase Program, market trends, consumer behavior and demand for automotive loans, as well as future financial performance under the heading “Second Quarter 2025 Outlook” above. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the Company’s control. These forward-looking statements are subject to a number of risks and uncertainties, including general economic, market, political and business conditions; applicable taxes, inflation, tariffs, supply chain disruptions including global hostilities and responses thereto, interest rates and the regulatory environment; the outcome of judicial proceedings to which Open Lending may become a party; and other risks discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. Subsequent events and developments may cause the Company’s assessments to change, but, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Non-GAAP Financial Measures
The non-GAAP financial measures included in this press release are financial information that has not been prepared in accordance with GAAP. The Company uses Adjusted EBITDA and Adjusted EBITDA margin internally in analyzing our financial results and believes these measures are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. The Company believes that the use of non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.

The Company believes these measures provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. In addition, these measures provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain non-cash items and certain non-recurring variable charges. Adjusted EBITDA is defined as GAAP net income (loss) excluding interest expense, income tax expense, depreciation and amortization expense, and share-based compensation expense. Adjusted EBITDA margin is defined as Adjusted EBITDA expressed as a percentage of total revenue.

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

Investor Relations Contact:
InvestorRelations@openlending.com


OPEN LENDING CORPORATION
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)

	March 31, 2025			December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	236,226		$	243,164
Restricted cash		10,621			10,760
Accounts receivable, net		5,550			5,055
Current contract assets, net		18,643			9,973
Income tax receivable		3,568			3,558
Other current assets		3,179			3,215
Total current assets		277,787			275,725
Property and equipment, net		650			729
Capitalized software development costs, net		5,398			5,386
Operating lease right-of-use assets, net		3,680			3,878
Contract assets		11,202			5,094
Other assets		5,506			5,556
Total assets	$	304,223		$	296,368
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	352		$	953
Accrued expenses		7,598			5,166
Current portion of debt		7,500			7,500
Third-party claims administration liability		10,660			10,797
Current portion of excess profit share receipts		17,445			19,346
Other current liabilities		1,143			3,490
Total current liabilities		44,698			47,252
Long-term debt, net of deferred financing costs		130,429			132,217
Operating lease liabilities		3,061			3,273
Excess profit share receipts		39,111			28,210
Other liabilities		7,095			7,329
Total liabilities		224,394			218,281
Stockholders’ equity
Preferred stock, $0.01 par value; 10,000,000 shares authorized and none issued and outstanding		—			—
Common stock, $0.01 par value; 550,000,000 shares authorized, 128,198,185 shares issued and 119,782,899 shares outstanding as of March 31, 2025 and 128,198,185 shares issued and 119,350,001 shares outstanding as of December 31, 2024		1,282			1,282
Additional paid-in capital		497,884			502,664
Accumulated deficit		(328,142	)		(328,759	)
Treasury stock at cost, 8,415,286 shares at March 31, 2025 and 8,848,184 shares at December 31, 2024		(91,195	)		(97,100	)
Total stockholders’ equity		79,829			78,087
Total liabilities and stockholders’ equity	$	304,223		$	296,368

OPEN LENDING CORPORATION
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)

	Three Months Ended March 31,
		2025			2024
Revenue
Program fees	$	15,210		$	14,309
Profit share		6,730			13,882
Claims administration and other service fees		2,453			2,554
Total revenue		24,393			30,745
Cost of services		6,084			5,750
Gross profit		18,309			24,995
Operating expenses
General and administrative		10,898			11,979
Selling and marketing		4,382			4,214
Research and development		2,267			1,479
Total operating expenses		17,547			17,672
Operating income		762			7,323
Interest expense		(2,589	)		(2,770	)
Interest income		2,500			2,971
Income before income taxes		673			7,524
Income tax expense		56			2,437
Net income	$	617		$	5,087
Net income per common share
Basic	$	0.01		$	0.04
Diluted	$	0.01		$	0.04
Weighted average common shares outstanding
Basic		119,451			118,926
Diluted		119,629			119,416

OPEN LENDING CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

	Three Months Ended March 31,
		2025			2024
Cash flows from operating activities
Net income	$	617		$	5,087
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Share-based compensation		1,846			1,854
Depreciation and amortization		544			372
Amortization of debt issuance costs		103			107
Non-cash operating lease cost		198			162
Deferred income taxes		—			2,154
Other		144			41
Changes in operating assets & liabilities:
Accounts receivable, net		(495	)		(1,135	)
Contract assets, net		(14,778	)		(2,614	)
Excess profit share receipts		9,000			—
Other current and non-current assets		70			188
Accounts payable		(600	)		66
Accrued expenses		2,454			(189	)
Income tax receivable, net		39			3,358
Operating lease liabilities		(185	)		(152	)
Third-party claims administration liability		(137	)		1,662
Other current and non-current liabilities		(2,658	)		45
Net cash provided by (used in) operating activities		(3,838	)		11,006
Cash flows from investing activities
Purchase of property and equipment		(45	)		—
Capitalized software development costs		(561	)		(642	)
Net cash used in investing activities		(606	)		(642	)
Cash flows from financing activities
Payments on term loans		(1,875	)		(938	)
Shares withheld for taxes related to restricted stock units		(758	)		(1,021	)
Net cash used in financing activities		(2,633	)		(1,959	)
Net change in cash and cash equivalents and restricted cash		(7,077	)		8,405
Cash and cash equivalents and restricted cash at the beginning of the period		253,924			246,669
Cash and cash equivalents and restricted cash at the end of the period	$	246,847		$	255,074
Supplemental disclosure of cash flow information:
Interest paid	$	2,489		$	3,541
Income tax paid (refunded), net		16			(3,075	)

OPEN LENDING CORPORATION
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except margin data)

	Three Months Ended March 31,
		2025			2024
Net income	$	617		$	5,087
Non-GAAP adjustments:
Interest expense		2,589			2,770
Income tax expense		56			2,437
Depreciation and amortization expense		544			372
Share-based compensation		1,846			1,854
Total adjustments		5,035			7,433
Adjusted EBITDA	$	5,652		$	12,520
Total revenue	$	24,393		$	30,745
Adjusted EBITDA margin		23	%		41	%

The MIL Network –

May 8, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

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

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

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

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


ALTO INGREDIENTS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data)

	Three Months Ended March 31,
		2025			2024
Net sales	$	226,540		$	240,629
Cost of goods sold		228,347			243,029
Gross loss		(1,807	)		(2,400	)
Selling, general and administrative expenses		(7,190	)		(7,932	)
Loss from operations		(8,997	)		(10,332	)
Interest expense, net		(2,729	)		(1,634	)
Other income, net		47			241
Loss before provision for income taxes		(11,679	)		(11,725	)
Provision for income taxes		—			—
Net loss	$	(11,679	)	$	(11,725	)
Preferred stock dividends	$	(312	)	$	(315	)
Net loss attributable to common stockholders	$	(11,991	)	$	(12,040	)
Net loss per share, basic and diluted	$	(0.16	)	$	(0.17	)
Weighted-average shares outstanding, basic and diluted		73,836			72,766


ALTO INGREDIENTS, INC. CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except par value)

ASSETS		March 31, 2025			December 31, 2024
Current Assets:
Cash and cash equivalents	$	26,778	$	35,469
Restricted cash		393		742
Accounts receivable, net		65,461		58,217
Inventories		50,609		49,914
Derivative instruments		4,071		3,313
Other current assets		6,149		5,463
Total current assets		153,461		153,118
Property and equipment, net		212,624		214,742
Other Assets:
Right of use operating lease assets, net		19,416		20,553
Intangible assets, net		8,142		4,509
Other assets		8,566		8,516
Total other assets		36,124		33,578
Total Assets	$	402,209	$	401,438


ALTO INGREDIENTS, INC. CONSOLIDATED BALANCE SHEETS (CONTINUED) (unaudited, in thousands, except par value)

LIABILITIES AND STOCKHOLDERS’ EQUITY		March 31, 2025				December 31, 2024
Current Liabilities:
Accounts payable	$	17,029		$	20,369
Accrued liabilities		23,819			24,214
Current portion – operating leases		4,968			4,851
Derivative instruments		301			1,177
Other current liabilities		6,999			7,193
Total current liabilities		53,116			57,804

Long-term debt		110,664			92,904
Operating leases, net of current portion		15,641			16,913
Other liabilities		8,868			8,754
Total Liabilities		188,289			176,375

Stockholders’ Equity:
Preferred stock, $0.001 par value; 10,000 shares authorized; Series A: no shares issued and outstanding as of March 31, 2025 and December 31, 2024 Series B: 927 shares issued and outstanding as of March 31, 2025 and December 31, 2024		1			1
Common stock, $0.001 par value; 300,000 shares authorized; 76,497 and 76,565 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		77			77
Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of March 31, 2025 and December 31, 2024		—			—
Additional paid-in capital		1,045,024			1,044,176
Accumulated other comprehensive income		4,975			4,975
Accumulated deficit		(836,157	)		(824,166		)
Total Stockholders’ Equity		213,920			225,063
Total Liabilities and Stockholders’ Equity	$	402,209		$	401,438

Reconciliation of Adjusted EBITDA to Net Loss	Three Months Ended March 31,
(in thousands) (unaudited)		2025			2024
Net loss	$	(11,679	)	$	(11,725	)
Adjustments:
Interest expense		2,729			1,634
Interest income		(84	)		(175	)
Unrealized derivatives gains		(1,634	)		(3,190	)
Acquisition-related expense		—			675
Depreciation and amortization expense		6,266			5,728
Total adjustments		7,277			4,672
Adjusted EBITDA	$	(4,402	)	$	(7,053	)

Segment Financials (in thousands) (unaudited)		Three Months Ended March 31,
		2025			2024
*Net sales*
Pekin Campus production, recorded as gross:
Alcohol sales	$	107,234		$	108,350
Essential ingredient sales		44,618			46,709
Intersegment sales		297			321
Total Pekin Campus sales		152,149			155,380
Marketing and distribution:
Alcohol sales, gross	$	48,997		$	54,431
Alcohol sales, net		61			34
Intersegment sales		2,506			2,752
Total marketing and distribution sales		51,564			57,217

Western production, recorded as gross:
Alcohol sales	$	16,194		$	20,231
Essential ingredient sales		7,808			7,826
Intersegment sales		264			—
Total Western production sales		24,266			28,057

Corporate and other		1,628			3,048
Intersegment eliminations		(3,067	)		(3,073		)
Net sales as reported	$	226,540		$	240,629

*Cost of goods sold:*
Pekin Campus production	$	155,222		$	151,112
Marketing and distribution		47,650			53,685
Western production		25,524			36,517
Corporate and other		1,681			2,794
Intersegment eliminations		(1,730	)		(1,079	)
Cost of goods sold as reported	$	228,347		$	243,029

*Gross profit (loss):*
Pekin Campus production	$	(3,073	)	$	4,268
Marketing and distribution		3,914			3,532
Western production		(1,258	)		(8,460	)
Corporate and other		(53	)		254
Intersegment eliminations		(1,337	)		(1,994	)
Gross loss as reported	$	(1,807	)	$	(2,400	)

Sales and Operating Metrics (unaudited) (in thousands) (unaudited)	Three Months Ended March 31,
		2025		2024
Alcohol Sales (gallons in millions)
Pekin Campus renewable fuel gallons sold		32.6		31.8
Western production renewable fuel gallons sold		8.3		11.2
Third party renewable fuel gallons sold		24.4		29.7
Total renewable fuel gallons sold		65.3		72.7
Specialty alcohol gallons sold		24.3		26.3
Total gallons sold		89.6		99.0

Sales Price per Gallon
Pekin Campus	$	1.90	$	1.90
Western production	$	1.95	$	1.80
Marketing and distribution	$	2.01	$	1.83
Average sales price per gallon	$	1.93	$	1.86

Alcohol Production (gallons in millions)
Pekin Campus		54.3		53.6
Western production		8.3		9.7
Total		62.6		63.3

Corn Cost per Bushel
Pekin Campus	$	4.65	$	4.73
Western production	$	5.95	$	5.89
Total	$	4.81	$	4.92

Average Market Metrics
PLATTS Ethanol price per gallon	$	1.71		$	1.56
CME Corn cost per bushel	$	4.72		$	4.35
Board corn crush per gallons (1)	$	0.02		$	0.01

Essential Ingredients Sold (thousand tons)
Pekin Campus:
Distillers grains		90.7			87.7
CO2		45.3			39.1
Corn wet feed		34.5			25.6
Corn dry feed		23.8			18.9
Corn oil and germ		19.6			17.8
Corn meal		9.4			8.3
Syrup and other		8.2			9.5
Yeast		6.4			5.7
Total Pekin Campus essential ingredients sold		237.9			212.6

Western production:
Distillers grains		58.1			71.8
CO2		12.6			13.3
Syrup and other		0.8			14.2
Corn oil		1.4			1.5
Total Western production essential ingredients sold		72.9			100.8

Total Essential Ingredients Sold		310.8			313.4


Essential ingredients return % (2)
Pekin Campus return		48.0	%		52.1	%
Western production return		49.0	%		39.3	%
Consolidated total return		48.2	%		49.8	%

________________

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

The MIL Network –

May 8, 2025

MIL-OSI: Fortinet Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Highlights

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

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

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

Financial Highlights for the First Quarter of 2025

Revenue: Total revenue was $1.54 billion for the first quarter of 2025, an increase of 13.8% compared to $1.35 billion for the same quarter of 2024.

Product Revenue: Product revenue was $459.1 million for the first quarter of 2025, an increase of 12.3% compared to $408.9 million for the same quarter of 2024.

Service Revenue: Service revenue was $1.08 billion for the first quarter of 2025, an increase of 14.4% compared to $944.4 million for the same quarter of 2024.

Billings¹: Total billings were $1.60 billion for the first quarter of 2025, an increase of 13.5% compared to $1.41 billion for the same quarter of 2024.

Remaining performance obligations: Remaining performance obligations were $6.49 billion as of March 31, 2025, an increase of 11.7% compared to $5.81 billion as of March 31, 2024. We expect to recognize approximately $3.38 billion as revenue over the next 12 months, an increase of 15.4% compared to $2.93 billion as of March 31, 2024.

Unified SASE ARR²: Unified SASE ARR was $1.15 billion as of March 31, 2025, an increase of 25.7% compared to $914.7 million as of March 31, 2024.

Security Operations ARR²: Security Operations ARR was $434.5 million as of March 31, 2025, an increase of 30.3% compared to $333.5 million as of March 31, 2024.

GAAP Operating Income and Margin: GAAP operating income was $453.8 million for the first quarter of 2025, representing a GAAP operating margin of 29.5%. GAAP operating income was $321.2 million for the same quarter of 2024, representing a GAAP operating margin of 23.7%.

Non-GAAP Operating Income and Margin¹: Non-GAAP operating income was $526.2 million for the first quarter of 2025, representing a non-GAAP operating margin of 34.2%. Non-GAAP operating income was $386.1 million for the same quarter of 2024, representing a non-GAAP operating margin of 28.5%.

GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $433.4 million for the first quarter of 2025, compared to GAAP net income of $299.3 million for the same quarter of 2024. GAAP diluted net income per share was $0.56 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.39 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.

Non-GAAP Net Income and Diluted Net Income Per Share¹: Non-GAAP net income was $452.3 million for the first quarter of 2025, compared to non-GAAP net income of $333.9 million for the same quarter of 2024. Non-GAAP diluted net income per share was $0.58 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to $0.43 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.

Cash Flow: Cash flow from operations was $863.3 million for the first quarter of 2025, compared to $830.4 million for the same quarter of 2024. Cash flow from operations for the first quarter of 2025 includes $14.0 million proceeds from an intellectual property matter.

Free Cash Flow¹: Free cash flow was $782.8 million for the first quarter of 2025, compared to $608.5 million for the same quarter of 2024.

Guidance

For the second quarter of 2025, Fortinet currently expects:

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

For the fiscal year 2025, Fortinet currently expects:

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

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

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

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

Conference Call Details

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

Second Quarter 2025 Conference Participation Schedule:

J.P. Morgan Global Technology, Media and Communications Conference
May 13, 2025

Bank of America Global Technology Conference
June 3, 2025

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

About Fortinet (www.fortinet.com)

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

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

FTNT-F

Forward-Looking Statements

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

Non-GAAP Financial Measures

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

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

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

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

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

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

FORTINET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in millions)

	March 31, 2025			December 31, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	3,596.6		$	2,875.9
Short-term investments		1,183.9			1,190.6
Accounts receivable—net		1,174.0			1,463.4
Inventory		362.7			315.5
Prepaid expenses and other current assets		125.4			126.1
Total current assets		6,442.6			5,971.5
LONG-TERM INVESTMENTS		35.2			—
PROPERTY AND EQUIPMENT—NET		1,403.8			1,349.5
DEFERRED CONTRACT COSTS		636.2			622.9
DEFERRED TAX ASSETS		1,411.6			1,335.6
GOODWILL AND OTHER INTANGIBLE ASSETS—NET		357.4			350.4
OTHER ASSETS		120.2			133.2
TOTAL ASSETS	$	10,407.0		$	9,763.1
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	224.5		$	190.9
Accrued liabilities		415.0			337.9
Accrued payroll and compensation		250.2			255.7
Current portion of long-term debt		498.7			—
Deferred revenue		3,339.4			3,276.2
Total current liabilities		4,727.8			4,060.7
DEFERRED REVENUE		3,079.0			3,084.7
LONG-TERM DEBT		496.2			994.3
OTHER LIABILITIES		141.1			129.6
Total liabilities		8,444.1			8,269.3
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock		0.8			0.8
Additional paid-in capital		1,668.7			1,636.2
Accumulated other comprehensive loss		(22.9	)		(26.1	)
Retained earnings (accumulated deficit)		316.3			(117.1	)
Total stockholders’ equity		1,962.9			1,493.8
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	10,407.0		$	9,763.1

FORTINET, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited, in millions, except per share amounts)

	Three Months Ended
	March 31, 2025			March 31, 2024
REVENUE:
Product	$	459.1		$	408.9
Service		1,080.6			944.4
Total revenue		1,539.7			1,353.3
COST OF REVENUE:
Product		149.9			182.8
Service		143.2			121.9
Total cost of revenue		293.1			304.7
GROSS PROFIT:
Product		309.2			226.1
Service		937.4			822.5
Total gross profit		1,246.6			1,048.6
OPERATING EXPENSES:
Research and development		198.6			173.0
Sales and marketing		542.7			501.1
General and administrative		57.8			54.4
Gain on intellectual property matters		(6.3	)		(1.1	)
Total operating expenses		792.8			727.4
OPERATING INCOME		453.8			321.2
INTEREST INCOME		44.3			32.2
INTEREST EXPENSE		(4.9	)		(5.1	)
OTHER INCOME (EXPENSE)—NET		26.1			(2.9	)
INCOME BEFORE INCOME TAXES AND GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS		519.3			345.4
PROVISION FOR INCOME TAXES		96.5			39.5
GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS		10.6			(6.6	)
NET INCOME	$	433.4		$	299.3
Net income per share:
Basic	$	0.56		$	0.39
Diluted	$	0.56		$	0.39
Weighted-average shares outstanding:
Basic		768.3			762.4
Diluted		776.8			770.5

FORTINET, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions)

	Three Months Ended
	March 31, 2025			March 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	433.4		$	299.3
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation		66.1			62.3
Amortization of deferred contract costs		78.0			72.0
Depreciation and amortization		35.8			28.6
Amortization of investment discounts		(10.3	)		(12.2	)
Other		(35.5	)		9.9
Changes in operating assets and liabilities, net of impact of business combinations:
Accounts receivable—net		303.9			405.6
Inventory		(34.1	)		36.5
Prepaid expenses and other current assets		3.4			(0.1	)
Deferred contract costs		(91.3	)		(66.5	)
Deferred tax assets		(30.0	)		(73.9	)
Other assets		1.5			(6.2	)
Accounts payable		24.6			(61.6	)
Accrued liabilities		63.7			105.0
Accrued payroll and compensation		(8.2	)		(27.4	)
Deferred revenue		57.0			54.8
Other liabilities		5.3			4.3
Net cash provided by operating activities		863.3			830.4
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments		(503.0	)		(436.1	)
Sales of investments		2.8			—
Maturities of investments		466.9			393.4
Purchases of property and equipment		(66.5	)		(221.9	)
Payments made in connection with business combinations, net of cash acquired		(11.2	)		(5.7	)
Other		0.2			—
Net cash used in investing activities		(110.8	)		(270.3	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		20.2			13.4
Taxes paid related to net share settlement of equity awards		(52.9	)		(42.9	)
Other		—			(0.8	)
Net cash used in financing activities		(32.7	)		(30.3	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		0.9			(1.4	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		720.7			528.4
CASH AND CASH EQUIVALENTS—Beginning of period		2,875.9			1,397.9
CASH AND CASH EQUIVALENTS—End of period	$	3,596.6		$	1,926.3

Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (Unaudited, in millions, except per share amounts)

Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income and diluted net income per share

	Three Months Ended
	March 31, 2025			March 31, 2024
Reconciliation of non-GAAP operating income:
GAAP operating income	$	453.8		$	321.2
GAAP operating margin		29.5	%		23.7	%
Add back:
Stock‐based compensation		66.9			63.0
Amortization of acquired intangible assets		11.8			3.0
Gain on intellectual property matters		(6.3	)		(1.1	)
Non‐GAAP operating income	$	526.2		$	386.1
Non‐GAAP operating margin		34.2	%		28.5	%

Reconciliation of non-GAAP net income:
GAAP net income	$	433.4		$	299.3
Add back:
Stock‐based compensation		66.9			63.0
Amortization of acquired intangible assets		11.8			3.0
Gain on intellectual property matters		(6.3	)		(1.1	)
Gain on bargain purchase ^(a)		(39.9	)		—
Tax adjustment ^(b)		(2.8	)		(30.3	)
Gain from equity method investment ^(c)		(10.8	)		—
Non-GAAP net income	$	452.3		$	333.9



























Non-GAAP net income per share, diluted













Non-GAAP net income	$	452.3		$	333.9













Non-GAAP shares used in diluted net income per share calculations		776.8			770.5













Non-GAAP net income per share, diluted	$	0.58		$	0.43



























Reconciliation of non-GAAP net income per share, diluted













GAAP net income per share, diluted	$	0.56		$	0.39













Add back:













Non-GAAP adjustments to net income per share		0.02			0.04













Non-GAAP net income per share, diluted	$	0.58		$	0.43



























(a) To exclude a $39.9 million gain on bargain purchase related to our acquisition of Linksys Holdings, Inc. (“Linksys”) in the three months ended March 31, 2025.
(b) Non-GAAP financial information is adjusted to an effective tax rate of 18% and 17% in the three months ended March 31, 2025 and 2024, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
(c) To exclude a $10.8 million gain from equity method investment in Linksys resulted from our acquisition of Linksys in the three months ended March 31, 2025.

Reconciliation of net cash provided by operating activities to free cash flow

	Three Months Ended
	March 31, 2025			March 31, 2024
Net cash provided by operating activities	$	863.3		$	830.4
Less: Purchases of property and equipment		(66.5	)		(221.9	)
Less: Proceeds from intellectual property matter		(14.0	)		—
Free cash flow	$	782.8		$	608.5
Net cash used in investing activities	$	(110.8	)	$	(270.3	)
Net cash used in financing activities	$	(32.7	)	$	(30.3	)

Reconciliation of total revenue to total billings

	Three Months Ended
	March 31, 2025		March 31, 2024
Total revenue	$	1,539.7	$	1,353.3
Add: Change in deferred revenue		57.5		54.9
Less: Deferred revenue balance acquired in business acquisitions		—		(1.0	)
Total billings	$	1,597.2	$	1,407.2

Investor Contact:	Media Contact:

Aaron Ovadia Fortinet, Inc. 408-235-7700 investors@fortinet.com	Michelle Zimmermann Fortinet, Inc. 408-235-7700 pr@fortinet.com

The MIL Network –

May 8, 2025

MIL-OSI Russia: Steering through the Fog: The Art and Science of Monetary Policy in Emerging Markets

Source: IMF – News in Russian

(As prepared for delivery)

May 7, 2025

Good afternoon. It is a pleasure to be with you here at this critical juncture for the global economy. Since early April, the US effective tariff rate has increased to levels last seen over a hundred years ago, and the uncertainty surrounding trade policy and geopolitics has surged.

The economic effects of these developments are expected to be sizeable. Our World Economic Outlook ‘reference scenario’ projects that tariffs will reduce both global and emerging market (EM) output growth by roughly 0.5 percentage points relative to our forecast prior to the April tariffs. Countries imposing high tariffs, or those that are heavily dependent on trade with those countries, will be hit the hardest. But no country is likely to emerge unscathed: we have downgraded our forecasts for 127 countries that account for 86 percent of global GDP.

The impact on inflation is more varied. For countries facing higher tariffs on their exports, the tariffs are expected to mainly operate as a negative demand shock and exert mild downward pressure on inflation. For countries imposing much higher tariffs, notably the United States, the tariffs will likely act more as an adverse supply shock, boosting inflation while lowering growth.

There are several reasons why economic outcomes could be much worse than our WEO reference scenario. As of now financial conditions have not tightened much, including in emerging markets, and many EM currencies have remained surprisingly resilient against the dollar. If, however, trade policy discussions do not yield lower tariffs soon, financial conditions could tighten abruptly, with major effects on capital flows to EMs. Knightian uncertainty abounds as the global economic order transforms. How should central banks in emerging markets steer through this fog? I will address this question in today’s lecture.

EM central banks have developed much stronger monetary policy frameworks since the late 1990s, often in the context of adopting inflation targeting. They have benefited from major improvements in governance, with clear mandates focused on price stability. Their operational independence has also increased substantially — both de jure and de facto — and they have strengthened their public accountability, as well as transparency. These advancements were invaluable in helping them respond quickly both to COVID and to the subsequent inflation surge, raising interest rates sharply in the latter case to contain inflation and keep inflation expectations anchored.

Even so, significant differences remain between EMs and AEs, especially regarding the strength of the exchange rate channel and the degree to which global factors influence monetary transmission. Several features deserve particular attention:

Transmission of policy actions and shocks differs in EMs

First, monetary policy transmission appears noticeably weaker in EMs than in AEs, and dependent both on global financial conditions and on the reliance of EM banks on external financing. In advanced economies, an easing of policy rates quickly translates into lower market rates — which is what matters for the borrowing decisions of households and firms — and this boosts the economy.

By contrast, my research with Sebnem Kalemli-Özcan and Pierre De Leo (De Leo, Gopinath and Kalemli-Özcan, 2024) shows that when EM central banks loosen policy, the transmission to short-term market rates depends critically on what happens to global financial conditions. If global financial conditions tighten enough – as often follows a surprise tightening in US monetary policy – then domestic market rates may even rise when the EM central bank lowers policy rates. The implicit rise in the risk spread facing borrowers clearly blunts the effectiveness of monetary policy and makes it harder for EMs to cushion the effects of shocks. This is particularly relevant at the current juncture where trade shocks could play out as negative demand shocks in many EMs, calling for looser monetary policy. At the same time, they could play out as negative supply shocks in the US and call for tighter US monetary policy.

The changing mix of EM external financing also raises new vulnerabilities. EMs have become more dependent on external financing from foreign nonbank financial institutions, including insurance companies and investment funds, with their share of external portfolio financing growing to about 40 percent. While nonbanks help diversify emerging market funding sources and reduce borrowing costs, these types of capital flows are also very sensitive to the global financial cycle.[1] At times of financial stress, investment funds—such as exchange traded funds and open-end mutual funds in particular—are more susceptible to investors withdrawing their money, which in turn causes investment funds to withdraw from the riskiest markets. Consequently, the volume and speed of exit of capital flows have increased over time, as was evident at the start of Covid-19.

This sensitivity of EMs to global stress may also increase given that crypto assets are playing a larger role in cross-border financial intermediation and payments, often spurred by the desire to achieve cost-efficiencies, but also to circumvent capital flow restrictions in some cases. In most EMs, crypto asset use doesn’t yet appear high enough to present imminent systemic risks. Even so, crypto assets are growing rapidly in many EMs, and overall usage has become a noticeable share of GDP in some EMs with high inflation and lower macroeconomic stability. For example, Cerutti, Chen and Hengge (2024) find that several EMs in Latin America and Eastern Europe fall in the upper quartile of countries in terms of the magnitude of their bitcoin inflows as a share of GDP, with monthly inflows in the range of 0.1 to 0.8% of GDP. Focusing on a wider set of crypto assets, Cardozo, Fernández, Jiang and Rojas (2024) find that cross-border crypto outflows have reached as much as a quarter of gross portfolio outflows in Brazil.

Use of crypto requires a careful understanding of the risks. Crypto may increase capital flow volatility and exacerbate financial stress, including by allowing investors to easily shift their deposits out of domestic banks into foreign exchange-denominated stablecoins. If crypto flows grow large enough, such disintermediation from the banking system and associated capital outflows could cause financial conditions to tighten and the exchange rate to weaken, and potentially spur a significant economic downturn.

Weaker policy credibility complicates monetary policy trade-offs

A second difference between AEs and EMs is the relatively weaker credibility of EM monetary policy to deliver low inflation. While EMs have improved their frameworks substantially, inflation expectations still tend to be less well-anchored than in AEs. Consequently, there is a higher passthrough of cost shocks to inflation, as they feed through much more into inflation expectations as well as through other channels such as wage indexation. Oil price shocks tend to impact core inflation more than twice as strongly in a sample of emerging market economies, relative to advanced ones.[2] This high passthrough makes dealing with external shocks particularly difficult for EM central banks, as second-round effects could be sizeable, including from ongoing shocks to trade policy that could disrupt supply chains and raise input costs.

Inflation expectations also tend to be more sensitive to fiscal policy and debt in EMs. This likely reflects increased risks of fiscal dominance and political interference in central bank decisions, which can undermine the public’s confidence in the central bank’s ability to fight inflation. A surprise increase in government debt tends to boost medium-term expected inflation in EMs significantly, while having little effect in advanced economies.[3]

Exchange rates have a much larger imprint on price and financial stability

A third critical distinction between EMs and AEs is that the exchange rate has a much larger imprint on price and financial stability in EMs. While passthrough of exchange rate changes to inflation has declined considerably for many EMs, it remains significantly higher than in advanced economies. A 10 percent depreciation of EM currencies against the dollar causes EM price levels to rise by about 2 percent, several times larger than in advanced economies.[4]

The presence of foreign exchange mismatches increases the financial stability risks from exchange rate depreciation. While many EMs have reduced FX mismatches – or lowered the risk through the development of derivatives markets that allow for better hedging — reliance on dollar funding within the financial system remains an important source of fragility for some EMs. This weakens monetary transmission, as lowering interest rates causes the balance sheets of corporates with unhedged FX liabilities to deteriorate and financial conditions to tighten, which offsets some of the stimulus from easing. EMs that have shifted to relying more on local currency financing also can experience sharp increases in currency premia and local borrowing costs when foreign investors exit these shallow markets. This makes it harder for EMs to deal with an environment of bigger external shocks: even if a tariff abroad would look like a demand shock from the standpoint of an AE economy, the exchange rate depreciation it induces raises risk spreads and makes it harder for the EM central bank to cushion the impact on the economy.

Steering through the fog: How should policy respond?

Having outlined some of the unique challenges emerging market central banks face in the current global context, I will next lay out some broad principles that can help steer through the fog. EMs clearly will differ in how they respond to the shocks and the uncertainty depending on their cyclical conditions and on structural features such as the extent of their exposure to trade and financial disruptions.

This said, and despite the fog, EM central banks should respond forcefully to upside inflation risks if they materialize to ensure that high inflation does not get embedded into inflation expectations. While I’ve noted that we see the current configuration of tariffs as likely to be slightly disinflationary for many EMs in our reference scenario, there is a significant risk that inflationary pressures could emerge — from supply chain disruptions and higher input cost pressures in a fragmenting world or from exchange rate depreciations.

Given the high passthrough of both exchange rate changes and cost shocks to inflation in EMs, a major risk is large and persistent second round effects, especially if inflation has been running persistently above target and the fiscal position is weak. History has shown that once inflation becomes embedded in expectations—often through wage and price indexation mechanisms—it becomes significantly more difficult to reverse. If the risk materializes, timely and firm action is critical to keep inflation expectations anchored and reassure the public of the central bank’s unwavering commitment to sound monetary policy and price stability.

Foreign exchange intervention should be used prudently

Second, in a more turbulent external environment, foreign exchange intervention (FXI) can help address disorderly market conditions that undermine financial stability. The Fund’s Integrated Policy Framework is helpful in identifying conditions when it may be possible to improve tradeoffs facing central banks using FXI and other tools (IMF, 2023; Basu, Boz, Gopinath, Roch and Unsal, 2023).

Notably, central banks can reduce exchange rate pressures by selling FX during episodes of capital flight when FX markets are shallow, allowing central banks not to have to hike policy rates sharply. This can improve macroeconomic outcomes as well as lower financial stability risks.

However, it is important that FXI is not used to reduce exchange rate volatility per se, or to target a particular level of the exchange rate, as such misuse could easily weaken confidence in the central bank’s commitment to stabilizing inflation. Moreover, given the finite level of reserves, the bar for FXI should be high to ensure that FX liquidity can be provided when it is really needed. As of now financial conditions have tightened in an orderly manner, which means that when it comes to FXI the advice is to keep the powder dry.

Build financial and fiscal resilience

Third, efforts to build financial resilience through strengthening prudential policies are also desirable. As I have emphasized, EM financial systems remain quite exposed to geopolitical shocks and face growing risks from heightened external finance from foreign nonbanks and potentially crypto. Prudential policies can help them build adequate buffers as well as reduce vulnerabilities arising from high leverage, volatile capital flows, and FX mismatches. On the crypto side, it will be important to develop comprehensive legal, regulatory and supervisory frameworks for crypto assets, including through cooperative global efforts given their cross-border nature (IMF, 2023b). The authorities should also ensure that capital flow management measures, when appropriate, remain effective and not undermined by the use of crypto. And EMs should continue to strengthen macroeconomic frameworks to reduce the risk of currency and asset substitution into crypto assets (often called “cryptoization”).

Fiscal policy also plays a critical role in helping ensure macroeconomic stability. Uncertainty shocks have much bigger effects on sovereign spreads when EM debt servicing costs are relatively high. Ensuring that tax and spending policies adjust to keep debt on a sustainable path helps provide buffers to respond to downturns and lowers financial stability risks.

Improve central bank communication, governance, and policy strategy

Lastly, there is a high premium on further strengthening policy frameworks to continue building resilience in a more shock-prone environment.

Clarity of communication has become more critical than ever. Effective communication about the central bank’s reaction function –in qualitative terms – is likely to be useful in helping better anchor inflation expectations and thus improve tradeoffs.

Improved governance – including to strengthen central bank independence – can increase public confidence that the central bank will have latitude to achieve its objectives. Central banks will inevitably make mistakes—no forecast is perfect. But what must be clear is that any deviation from target is the result of uncertainty, not political interference.

EM central banks, as for their AE counterparts, must also adapt their policy strategies to focus more on the distribution of outcomes rather than the modal outlook, and to take more account of risk management considerations. Monetary policy must navigate a world shaped by a multiplicity of shocks—some persistent, some temporary, and some with offsetting effects on inflation where it is difficult to assess the net impact.

Accordingly, many central banks should continue to take steps to revise their frameworks to move away from excessive reliance on central forecasts. This can be facilitated by increasing use of scenario analysis in decision-making.

Conclusion

To conclude, EMs have made major strides in improving their monetary policy frameworks, and this has enabled several of them to respond effectively to unprecedented shocks like the pandemic. They are now being tested again as the global economic order is reset and Knightian uncertainty prevails. This uncertainty does not, however, imply gradualism in all matters. If inflation pressures rise, EM central banks will need to respond quickly using policy rates to prevent higher inflation from getting entrenched as they did during COVID. We must recognize that the road ahead may have many unforeseen turns, which calls for further strengthening financial and fiscal resilience and navigating with monetary policy clarity, credibility, and discipline.

References

Baba, C., and J. Lee. 2022. “Second-round effects of oil price shocks – implications for Europe’s inflation outlook”. IMF Working Paper no. 2022/173.

Basu, S.S., Boz, E., Gopinath, G., Roch, F., and F.D. Unsal. 2023. “Integrated monetary and financial policies for small open economies”. IMF Working Paper no. 2023/161.

Brandão-Marques, L., Casiraghi, M., Gelos, G., Harrison, O., and G. Kamber. 2024. “Is high debt constraining monetary policy? Evidence from inflation expectations”. Journal of International Money and Finance 149(C).

Brandão-Marques, L., Górnicka, L., and G. Kamber. 2023. “Exchange rate fluctuations in advanced and emerging economies: Same shocks, different outcomes”, in Shocks and Capital Flows, edited by Gaston Gelos and Ratna Sahay, IMF.

Cardozo, P., Fernández, A., Jiang, J., and F.D. Rojas. 2024. “On cross-border crypto flows: Measurement, drivers, and policy implications“. IMF Working Paper no. 2024/261.

Cerutti, E.M., Chen, J., and M. Hengge. 2024. “A primer on Bitcoin cross-border flows: Measurement and drivers“. IMF Working Paper no. 2024/85.

Chari, A. 2023. “Global risk, non-bank financial intermediation, and emerging market vulnerabilities”. Annual Review of Economics 15: 549-572.

De Leo, P., Gopinath, G., and S. Kalemli-Özcan. 2024. “Monetary policy and the short-rate disconnect in emerging economies”. NBER Working Paper no. 30458.

IMF. 2023. “Integrated Policy Framework – Principles for use of foreign exchange interventions”. IMF Policy Paper no. 2023/061.

IMF. 2023b. “Elements of effective policies for crypto assets”. IMF Policy Paper no. 2023/004.

https://www.imf.org/en/News/Articles/2025/05/07/sp050725-science-of-monetary-policy-in-emerging-markets-gita-gopinath

MIL OSI

MIL OSI Russia News –

May 8, 2025

MIL-OSI Canada: CleanBC review launched to strengthen climate action, results for people

Source: Government of Canada regional news

Merran Smith

Merran Smith is president of New Economy Canada, bringing decades of leadership and partnership with industry, government and community to create economic solutions to society’s most pressing challenges. She is broadly recognized as an advocate and national thought leader in advancing Canada’s clean economy, with career highlights including founding Clean Energy Canada and her leadership in the landmark Great Bear Rainforest agreement.

Smith was a board member of BC Hydro, and co-chair of B.C.’s Climate Solutions Council, which advised the B.C. government on CleanBC. She has won numerous awards for her leadership in the clean economy, including most recently the King Charles III’s Coronation Medal awarded to a diverse group of individuals who have made significant contributions to British Columbia.

Dan Woynillowicz

Dan Woynillowicz is an accomplished leader focused on the development and implementation of effective energy and climate policies. As principal of Polaris Strategy + Insight, he blends policy expertise with an understanding of technology innovation and market transformation to help clients navigate the energy transition. He is a volunteer adviser to Urban Climate Solutions and the Clean Economy Fund, and from 2020-25 served as board chair of the B.C. Centre for Innovation and Clean Energy (CICE).

Woynillowicz also served as an external expert adviser to the BC Hydro Task Force, which positioned BC Hydro to meet the province’s fast-growing demand for clean electricity. He is frequently called to testify before regulatory and legislative bodies, quoted in media, and regularly publishes commentary in Canada’s leading publications.

MIL OSI Canada News –

May 8, 2025

MIL-OSI USA: As Big Tech Fights Antitrust Enforcement in the Courts, Warner, Colleagues Reintroduce Bipartisan Legislation to Encourage Competition in Social Media

US Senate News:

Source: United States Senator for Commonwealth of Virginia Mark R Warner
WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, reintroduced the Augmenting Compatibility and Competition by Enabling Service Switching (ACCESS) Act, legislation that would encourage market-based competition between major social media platforms by requiring the largest companies make user data portable – and their services interoperable – with other platforms, and to allow users to designate a trusted third-party service to manage their privacy and account settings.
“As social media and online platforms continue to become a larger part of our society, we’ve seen a handful of companies completely dominate the marketplace, giving consumers no real option to shift platforms without losing years’ worth of data and interactions,” Sen. Warner said. “By making it easier for social media users to easily move their data or to continue to communicate with their friends after switching platforms, startups will be able to compete on equal terms with the biggest social media companies. Interoperability and portability are powerful tools to promote innovative new companies and limit anti-competitive behaviors. This legislation will create long-overdue requirements that will boost competition and give consumers more power.”
Joining Warner in introducing the legislation are Sens. Josh Hawley (R-MO) and Richard Blumenthal (D-CT).
Online platforms have become vital to our economic and social fabric, but network effects and consumer lock-in have solidified a select number of companies’ dominance in the digital market and enhanced their control over consumer data, even as the social media landscape continues to change by the day and platforms’ user experiences become more and more unpredictable. The ACCESS Act would increase market competition, encourage innovation, and increase consumer choice by requiring large communications platforms (products or services with over 100 million monthly active users in the U.S.) to:
Make their services interoperable with competing communications platforms.
Permit users to easily port their personal data in a structured, commonly used and machine-readable format.
Allow users to delegate trusted custodial services, which are required to act in a user’s best interests through a strong duty of care, with the task of managing their account settings, content, and online interactions.
Sen. Warner first introduced the ACCESS Act in 2019 and, as a former tech entrepreneur, has been one of Congress’s leading voices calling for accountability in Big Tech. He has introduced several pieces of legislation aimed at addressing these issues, including the SAFE TECH Act, which would reform Section 230 and allow social media companies to be held accountable for enabling cyber-stalking, online harassment, and discrimination on social media platforms; the Honest Ads Act, which would require online political advertisements to adhere to the same disclaimer requirements as TV, radio, and print ads; and legislation requiring that the prominent social media platform TikTok divest from China-owned parent company ByteDance. Sen. Warner continues to advocate for the sale of the app to a company not beholden to a U.S. adversary.
Full text of the ACCESS Act is available here.

MIL OSI USA News –

May 8, 2025

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

US Senate News:

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

MIL OSI USA News –

May 8, 2025

MIL-OSI Global: No matter who the next pope is, US Catholics stand ‘at a crossroads’ − a sociologist explains

Source: The Conversation – USA – By Maureen K. Day, Research Fellow, Center for Religion and Civic Culture, University of Southern California

Parishioners attend a memorial Mass in honor of Pope Francis at the Cathedral of Our Lady of the Angels in Los Angeles on April 21, 2025. Patrick T. Fallon/AFP via Getty Images

More than 130 cardinals entered the Sistine Chapel on May 7, 2025. With the announcement “Extra omnes” – “all out” – the doors have been closed and the cardinals sequestered to elect the next leader of the Catholic Church. They will vote, confer, pray and vote again until a candidate acquires the two-thirds majority needed to become pope.

Ten of the men voting this week are from the United States. The Conversation U.S. asked Maureen Day, a researcher at the University of Southern California who has written several books about the contemporary church, to explain what Catholicism looks like in the U.S. at this high-stakes moment.

How is Catholic identity and practice in the U.S. changing, compared with a generation ago?

In 1987, the year of the first American Catholic Laity survey, nearly half of American Catholics said that faith was “the most” or “among the most” important parts of their life. Now, only 37% say the same.

Others are leaving the Catholic Church completely. The General Social Survey, a national survey conducted every year or two since the 1970s, asks people about the faith they grew up with, as well as their present religious identity. According to our analysis of its data, in 1973 only 10% of Americans who grew up Catholic had changed religions, and another 7% had left religion altogether. By 2018, each of those percentages had increased to 18%.

A Pew Research Center study conducted in 2024 found that for every American who converts to Catholicism, another 8.4 leave. The only reason that Catholicism is able to maintain a relatively steady share of the U.S. population – about 20% – is due to the high percentage of immigrants and migrants who are Catholic.

So my co-authors and I chose the title of our 2025 book, “Catholicism at a Crossroads,” quite intentionally. The church has been facing a variety of challenges for decades, both nationally and across the globe. It’s not just about disaffiliation, but also issues such as the sexual abuse crises and bishops’ decreasing influence on lay Catholics’ personal decisions.

The Rev. Athanasius Abanulo celebrates Mass in Lanett, Ala., in 2021. Many international clergy, like Abanulo, are helping to ease a shortage of priests in the U.S.
AP Photo/Jessie Wardarski

In response, church leaders have mostly offered minor adjustments, such as encouraging parishes to become more family- or young adult-friendly. They have not yet made larger shifts that could substantially alter some of those trend lines.

Some of your work focuses on what you call ‘cultural Catholics’ − defined as Catholics who attend Mass less than once per month. How would you describe cultural Catholicism in the U.S. today?

A big concern of Catholic leaders right now is decreasing Mass attendance, as weekly Mass is an important precept of the Catholic Church. Sunday Mass is a place for Catholics to participate in the sacraments, strengthen their faith and build relationships with other Catholics.

One of the things Catholic leaders tend to attribute this drop in attendance to is a broader trend of secularism. There might be some merit to this, but it can’t be the whole story. In our analysis of General Social Survey data, for example, the percentage of Protestant Christians who say they attend worship services weekly was 35% in 1950 and 40% in 2023. Among Catholics, however, weekly Mass attendance has declined from 63% to 30% in these same years.

“Cultural Catholics” who say they attend Mass “a few times a year” or “seldom or never” account for 53% of U.S. Catholics. Many of them demonstrate strong ties to Catholic teachings in other ways. For example, around 70% to 80% of cultural Catholics say that it is “essential” or “somewhat essential” to Catholicism to help the poor, have a devotion to Mary and practice daily prayer.

There are findings that can lend themselves to either a “glass half empty” or “glass half full” interpretation. For instance, it might be heartening to Catholic leaders to know that 62% of cultural Catholics say it is important that future generations of their family are Catholic – although this is much lower than the 89% among those who attend Mass frequently.

Sister Maris Stella Vaughan teaches a religion class at St. John Paul II Catholic School in Phoenix, Ariz., in 2020.
AP Photo/Dario Lopez-Mills

And when these cultural Catholics imagine future generations of their family being Catholic, what does that mean? Perhaps it entails simply a few milestones, like receiving baptism, First Communion and possibly Confirmation – the three sacraments that initiate a person into the Catholic faith. The way many cultural Catholics are loosely tethered to the church, without much involvement in parish life, is a great concern for many Catholic leaders.

What main challenges do you see for the American church under the next pope?

I would argue that the American church’s biggest challenge is how to heal the factionalism within itself.

On the one hand, there is a great deal of common ground among the most active Catholics, even with the diversity still found here. According to our analysis, 20% of Catholics are “high commitment”: those who say they attend Mass weekly, are unlikely to leave the faith, and that the church is very important to them. These Catholics are more likely to depart from their political party’s position on an issue if it does not align with Catholic teachings. For example, high-commitment Catholic Republicans are much more likely to support the bishops’ position on making the immigration process easier for families. High-commitment Catholic Democrats, meanwhile, are more likely to be against abortion than are their moderate- or low-commitment counterparts.

In other words, these high-commitment Catholics tend to be less polarized and could find common cause with one another.

Catholics pray during Mass at Benedictine College on Dec. 3, 2023, in Atchison, Kan.
AP Photo/Charlie Riedel

However, there are more extreme pockets – such as those who called into question the legitimacy of Francis’ papacy – that are more militant about their vision of Catholicism. While these Catholics are few in number, they are very vocal. There are fringe groups that mobilized to try to change the direction of the Catholic Church after Francis’ papacy, which they saw as a series of liberal reforms.

Within more mainstream Catholicism, there are divides over styles of worship, with media attention on some young Americans flocking to more conservative or traditional parishes. However, sociologist Tim Clydesdale and religion scholar Kathleen Garces-Foley found that young adult Catholics are split: While some are attracted to churches with pastors who demonstrate “orthodoxy,” a similar number prefer “openness.”

What do you wish more people understood about Catholicism in the U.S.?

I think the “missing piece” for many is the incredible diversity of U.S. Catholicism, from race and ethnicity to politics and practice. Many Americans tend to associate the religion with one or two issues, such as abortion and same-sex marriage, and assume that Catholics are fairly monolithic, both in their demographics and their politics.

Catholics themselves can also forget – or never learn – that their small slice of Catholicism is not the whole of Catholicism.

Recognizing and elevating what unites this vast family of Catholics, both personally and collectively, is going to be critical as the church moves forward.

The work mentioned in this article was funded largely by the Louisville Institute. Her previous research has received funding from many sources, including the United States Conference of Catholic Bishops.

– ref. No matter who the next pope is, US Catholics stand ‘at a crossroads’ − a sociologist explains – https://theconversation.com/no-matter-who-the-next-pope-is-us-catholics-stand-at-a-crossroads-a-sociologist-explains-255177

MIL OSI – Global Reports –

May 8, 2025

MIL-OSI USA: Reps. Vasquez and Zinke Launch Bipartisan Public Lands Caucus to Champion Conservation and Access

Source: US Representative Gabe Vasquez’s (NM-02)

WASHINGTON, D.C. – Today, U.S. Representatives Gabe Vasquez (D-NM-02) and Ryan Zinke (R-MT-01) announced the launch of the bipartisan Public Lands Caucus, a bipartisan congressional coalition focused on conserving America’s public lands and expanding access for all Americans. The caucus will build upon the trusted working relationship between Vasquez and Zinke, forged over the past two years, partnering on conservation legislation, along with the momentum of a new Congress and a new generation of Western lawmakers to bring a new voice to the conversation around public lands.

The Public Lands Caucus is founded on the belief that public lands are “for the benefit and enjoyment of the people.” It will bring lawmakers from both sides of the aisle to advance practical, consensus-driven public lands policy that conserves natural resources while supporting recreation, local economies, and public access. Caucus members are committed to bridging ideological divides and advancing pragmatic solutions to protect and manage public lands.

WATCH: Public Lands Caucus Press Conference

“Public lands are where I learned to fish, hunt, and connect with my family and culture—and those experiences shaped who I am,” said Rep. Gabe Vasquez (D-NM-02). “These lands don’t belong to one party or one group of people; they belong to all of us. The Public Lands Caucus is about protecting that birthright—bringing Democrats and Republicans together to preserve access, defend conservation, and invest in the outdoor economy that powers rural communities like mine in southern New Mexico. This is personal for me, and I’m proud to lead this bipartisan effort to keep our public lands in public hands.”

“I follow the Theodore Roosevelt motto that public lands are ‘for the benefit and enjoyment of the people,’ and that means making sure we both conserve and manage those lands to ensure public access for the next generation,” said Rep. Ryan Zinke (R-MT-02). “Public lands aren’t red or blue issues, it’s red white and blue. The bipartisan Public Lands Caucus brings together lawmakers who don’t agree on much, but we agree on and are ready to work together to promote policies that advance conservation and public access. I look forward to working with Co-Chair Vasquez, the vice chairs, and all the members of this caucus so future generations can enjoy the same opportunities to hunt, hike, fish, make a living and enjoy our uniquely American heritage.”

“We should be focusing on expanding public access to federal lands, not auctioning them off. And we should be investing in our National Parks System and National Wildlife Refuges, not making it harder for Americans to visit these special places,” said Rep. Debbie Dingell (D-MI-06). I’m proud to be Vice-Chair of the bipartisan Public Lands Caucus because conservation has historically been, and should continue to be, a priority regardless of party. I look forward to working with my colleagues on both sides of the aisle to protect our precious natural resources, federal lands, and beloved species.”

“Idahoans live in Idaho because we love our public lands,” said Rep. Mike Simpson (R-ID-02). “This trend is common across the West, where public lands are a part of our daily lives. As a lifelong Idahoan and Chairman of the House Interior and Environment Appropriations Subcommittee, I remain committed to preserving access to our public lands and defending our way of life. Being named Vice Chair of the Public Lands Caucus is an honor, and I look forward to working with my colleagues to ensure future generations can enjoy the same benefits that we do today. I’m thankful to Rep. Zinke for his leadership here.”

“As someone born and raised in the Coachella Valley, I know how sacred our public lands are. Places like Joshua Tree and the new Chuckwalla National Monument are more than landscapes—they’re part of our identity, history, and culture,” said Rep. Raul Ruiz (D-CA-25) Conserving public lands means protecting cultural heritage, preserving critical ecosystems, and expanding access to nature’s healing power, especially for underserved communities. I’ll continue fighting to ensure every family—no matter where they live—can experience the beauty, health, and enjoyment that public lands offer.”

“Public land access is integral to Montana,” said Rep. Troy Downing (R-MT-02). “Montanans rely on the Treasure State’s more than 30 million acres of public lands to hunt, fish, recreate, graze their livestock, and so much more. I applaud Co-Chairs Zinke and Vasquez for their efforts and look forward to working with my colleagues to find common sense solutions that preserve my constituents’ access to this fundamentally American resource.”

“As a representative of Coastal Virginia, I know how vital our public lands and waters are to our economy, our culture, and our quality of life – from supporting tourism and outdoor recreation to sustaining jobs and protecting natural habitats,” said Rep. Jen Kiggans (R-VA-02). “I’m proud to join the bipartisan Public Lands Caucus to bring a balanced, commonsense approach to protecting these resources. From our shorelines to our forests, we must ensure that future generations can enjoy and benefit from healthy and accessible public lands across the country for years to come.”

Caucus Leadership

Co-Chairs

Rep. Gabe Vasquez (D-NM-02)
Rep. Ryan Zinke (R-MT-01)

Vice Chairs

Rep. Debbie Dingell (D-MI-06)
Rep. Mike Simpson (R-ID-02)

Members Include

Rep. Raul Ruiz (D-CA-25)
Rep. Chuck Edwards (R-NC-11)
Rep Joe Neguse (D-CO-02)
Rep. Jen Kiggans (R-VA-02)
Rep. Emily Randall (D-WA-06)
Rep. Troy Downing (R-MT-01)
Rep. Steven Horsford (D-NV-04)
Rep. Dan Newhouse (R-WA-04)
Rep. Susie Lee (D-NV-03)
Rep. Juan Ciscomani (R-AZ-06)

Organizational Support

“On both sides of the aisle, Americans cherish our public lands,” said Joel Pedersen, president and CEO of the Theodore Roosevelt Conservation Partnership. “From the Northern Rockies of Montana to the Gila Mountains of New Mexico, these lands and waters provide invaluable opportunities to millions of hunters and anglers. We join our nation’s sportsmen and women in thanking Representatives Zinke and Vasquez for their leadership in forming the bipartisan Public Lands Caucus which will continue to advance America’s outdoor legacy.”

Whitney Potter Schwartz, Senior Vice President, Outdoor Recreation Roundtable: “The creation of the Public Lands Caucus is a significant and welcome step forward in protecting and expanding access to our public lands and waters that power America’s $1.2 trillion outdoor recreation economy and enrich the lives of millions of Americans. Keeping public lands public is a business imperative. There couldn’t be a more important time to stand up for America’s best return on investment and keep public land selloff out of reconciliation. ORR thanks Representatives Gabe Vasquez and Ryan Zinke for their leadership and all the bipartisan members of the Caucus who have come together to champion public lands access, stewardship, and infrastructure investments. We look forward to working with the Caucus to ensure that public lands remain public and continue to be a foundation for outdoor experiences, local economies, and healthy communities for generations to come.”

Phil Ingrassia, President of the national RV Dealers Association (RVDA): “Public lands are essential to the emotional and economic well-being of our nation. RVDA applauds the creation of the Public Lands Caucus and its commitment to enhancing access and expanding the infrastructure that supports millions of Americans who enjoy these shared spaces.”

Julie Sutton, Senior Director Government Affairs, VF Corporation: VF Corporationand our portfolio of iconic outdoor brands applaud Representatives Ryan Zinke (R-MT) and Gabe Vasquez (D-NM) for their bipartisan leadership in establishing the Public Lands Caucus. This caucus has an opportunity to improve management of public lands, protect and conserve our natural resources and maintain access for everyone to enjoy the outdoors. We thank you for your commitment to our public lands.

Myke Bybee, Senior Director of Federal Relations, Trust for Public Land: “Trust for Public Land strongly commends Representatives Ryan Zinke (R-MT) and Gabe Vasquez (D-NM) for their bipartisan leadership in launching the Public Lands Caucus and introducing legislation — The Public Lands in Public Hands Act — which affirms the importance of our shared national landscapes. With Congress and the Administration considering proposals to sell off federal land, and as Americans visit public lands in record numbers—to hike, hunt, and connect with nature—their leadership could not come at a more critical time.”

Jenn Dice, President & CEO, PeopleForBikes: “Public lands are an important part of the American experience and critical to the outdoor recreation economy, including the bicycle industry. We applaud the leaders of the Public Lands Caucus who are committed to protecting, managing, and staffing our most treasured natural spaces that are a source of our national pride.”

Caryn Short, America Outdoors: “America Outdoors applauds Representatives Vasquez and Zinke for their leadership in launching the bipartisan Public Lands Caucus. Continued access to our public lands is vital to the health of the outfitting industry, rural economies, and the millions of Americans who rely on these landscapes for connection, livelihood, and adventure.”

Rachel Franchina, Executive Director, Society of Outdoor Recreation Professionals: “Public lands are part of the shared national identify of Americans. They are treasured places – both close to home and in iconic protected areas – for people to spend time with family and friends, recharge themselves and reconnect with nature. The Society of Outdoor Recreation Professionals supports Representatives Ryan Zinke (R-MT) and Gabe Vasquez (D-NM)’s Bipartisan Public Lands Caucus. High-quality experiences on public lands are something the vast majority of American value and their commitment to ensuring access to our shared heritage is more important now than ever.”

Mary Ellen Sprenkel, President & CEO, The Corps Network: “Americans love our public lands. Hundreds of millions of people visit our national parks, forests, and grasslands every year, helping drive local economies. The Corps Network proudly represents 150 Corps programs across the country that work with resource management agencies on critical maintenance projects that keep our public lands safe and open for all to enjoy. Through service on public lands, thousands of Corps participants every year gain invaluable work experience for the modern workforce. We appreciate the goal of the Public Lands Caucus to ensure Americans have access to the Great Outdoors.”

Julie M. Broadway, President, American Horse Council & American Horse Council Foundation: “According to American Horse Council’s latest economic impact study, 39 million U.S. households include a horse enthusiast, with recreational trail riders representing the largest segment of the equine industry — underscoring the critical need for access to public lands. Federal data supports this: the Bureau of Land Management estimates three million annual horseback riding visitors, along with 46,000 participating in pack use; the U.S. Forest Service cites 206,000 horseback riders, and the National Park Service reports 1.6 million. Conserving public lands, supporting local economies, and ensuring access for all Americans is essential to the equine community, and we strongly applaud the creation of this congressional caucus as a step toward protecting these shared resources.”

Dan Mahoney, Government Affairs Manager, American Prairie: “American Prairie applauds Representatives Ryan Zinke and Gabe Vasquez for launching this bipartisan caucus to protect our country’s public lands. These lands are a cherished piece of America’s heritage, and one that American Prairie is committed to conserving and expanding access to in Montana. This new caucus’s dedication to the same is worth celebrating and so are the members of Congress leading the way to do so.”

Jordan Schreiber, Director of Government Relations, The Wilderness Society: “The Wilderness Society celebrates this bipartisan caucus’s commitment to protecting public lands and access to them, which starts with keeping them in public hands. We look forward to working with members to ensure that any future efforts to sell off these national treasures to the highest bidder are defeated.”

Tom Cors, Senior Director of Legislative Affairs, The Nature Conservancy: “Public lands need to be kept in public hands. They are not just picturesque selfie backdrops. People across America depend on them for jobs, to recharge their internal batteries, and to clean our water and air. Also, wildlife depend on them for food and shelter. Through this caucus, Representatives Ryan Zinke and Gabe Vasquez are ensuring our public lands will last forever, giving life to us all.”

David Feinman, Vice President of Government Affairs, Conservation Lands Foundation: “Conservation Lands Foundation applauds Representatives Gabe Vasquez and Ryan Zinke for working across the aisle to launch the bipartisan Public Lands Caucus, which will hold Congress accountable to protect access to America’s public lands and ensure they remain in public hands. Our nation’s public lands contain remarkable and irreplaceable ecological, historical and cultural resources that reflect thousands of years of human connection to lands and waters, and we look forward to the Public Lands Caucus reflecting the overwhelming bipartisan support across America for keeping public lands in public hands.”

Maite Arce, President and CEO, Hispanic Access Foundation: “Hispanic Access Foundation applauds the launch of the bipartisan Public Lands Caucus and the leadership of Representatives Vasquez and Zinke. Public lands are essential to our way of life—they support local economies, provide space for recreation and reflection, and contribute to the health and well-being of communities across the country. This caucus is an important step toward protecting these treasured places and ensuring they remain accessible and well-managed for future generations.”

Chris Wood, President and CEO, Trout Unlimited: “Public lands are the backyard of the little guy, demonstrating our commitment to leaving the world a better place for our children than the one we inherited from our parents. On behalf of Trout Unlimited members across the nation, I thank Congressmen Zinke and Vasquez and the members of the newly minted bipartisan Public Lands Caucus for their leadership upholding our legacy of public lands. Preventing large-scale transfer or sale of federal public lands helps to maintain access to some of the best places to fish and hunt on the planet. We look forward to working with the caucus to keep it that way.”

Athan Manuel, Director of Sierra Club’s Lands Protection Program: “Our public lands are part of what makes this country great. They preserve critical habitat, provide our communities with clean air and water, and exploring these places has been a rite of passage for countless generations of Americans. It is more critical than ever that these treasured landscapes remain in the hands of we the people. The Public Lands Caucus will play an important – and bipartisan – role in ensuring Congress does its part to keep it that way.”

Tom Kiernan, CEO, American Rivers: Public lands are the source of clean drinking water for millions of Americans. The rivers that flow across our national parks, forests, and rangelands provide recreation and awesome scenic beauty to our country. We are excited to continue working with Congress to support the protection of these lands and rivers on behalf of all Americans. Thank you to Representatives Vasquez and Zinke for launching this caucus.

Joel Pedersen, President and CEO, Theodore Roosevelt Conservation Partnership: “On both sides of the aisle, Americans cherish our public lands. From the Northern Rockies of Montana to the Gila Mountains of New Mexico, these lands and waters provide invaluable opportunities to millions of hunters and anglers. We join our nation’s sportsmen and women in thanking Representatives Zinke and Vasquez for their leadership in forming the bipartisan Public Lands Caucus which will continue to advance America’s outdoor legacy.”

Lesli Allison, Chief Executive Officer, Western Landowners Alliance: “The Western Landowners Alliance applauds the formation of the bipartisan Public Lands Caucus to protect our public lands and thanks Representatives Vazquez and Zinke for their leadership on this issue. Care for our public lands is a priority across party lines and fence lines in the West. Western Landowners Alliance members steward tens of millions of acres of private and public land, and recognize the challenges facing federal land management and budgets. We are also acutely aware of the nation’s real housing deficit. But disposal of federal land is not a practical solution to either problem.”

Paul Hendricks, Executive Director, The Conservation Alliance: “Conservation has been supported by folks from both political parties and nearly all demographics for generations – America’s best and most durable public lands protections have come from members of Congress working together across party lines. Yet many of those places are now at risk of losing those protections, which would be detrimental to our nation’s economy. Safeguarding nature creates jobs, supports local economies as well as the $1.2 trillion outdoor recreation economy, and ensures these benefits exist for future generations. The Conservation Alliance and our 200 business members are excited to see the launch of the Public Lands Caucus and thank Representative Vasquez and Representative Zinke for taking the lead.”

Devin O’Dea, Western Policy & Conservation Manager, Backcountry Hunters & Anglers: “Backcountry Hunters & Anglers strongly supports the creation of the Public Lands Caucus and thanks Representatives Vasquez and Zinke for bringing together a bipartisan force to defend against ongoing threats to sell or transfer our wild public lands. Our public lands define who we are as Americans — places where anyone, regardless of background, can hunt, fish, camp or explore. The Public Lands Caucus is a crucial step in ensuring our wild public lands, waters, and wildlife endure.”

Ariel Wiegard, Vice President of Government Affairs, Pheasants Forever and Quail Forever: “America’s upland hunters and grassland advocates applaud today’s launch of the bipartisan Public Lands Caucus, and we stand ready to work with Reps. Vasquez, Zinke, and the other Caucus members to advance public land conservation policies, increase and improve habitat and access, and energize and engage the upland conservation community. America’s grassland and sagebrush shrub-steppe ecosystems are among the most at-risk environments in the world, resulting in the decline of our most cherished grassland species and fewer places to hunt on high-quality habitat—we are confident this Caucus will help ensure our treasured public lands deliver the promise of more wildlife and more hunters, alongside other natural resource and quality of life benefits, to the American people.”

Jason Burckhalter, Co-CEO, National Wild Turkey Federation: “The NWTF extends deep gratitude to Congressmen Vasquez and Zinke for their leadership in founding the bipartisan Public Lands Caucus. This crucial effort bolsters the unique American public trust, ensuring our public lands—vital habitats for wildlife, cornerstones of our hunting heritage, and cherished spaces for outdoor recreation—remain a shared resource, held in trust for all citizens, preserving their accessibility and stewardship for future generations.”

Louis Geltman, Vice President for Policy and Government Relations, Outdoor Alliance: “Outdoor Alliance is grateful to Representatives Gabe Vasquez and Ryan Zinke for their leadership in creating the Public Lands Caucus. Public lands need champions, and we look forward to working with members of the caucus to protect public lands and waters and outdoor recreation experiences. Outdoor recreation is a bipartisan value and benefits the millions of Americans who get outside each year. We look forward to building momentum for the caucus’s work to support outdoor recreation, public lands and waters, and conservation.”

Caroline Gleich, professional athlete, advocate and former candidate for U.S. in Utah: “As someone who has spent my life exploring and advocating for public lands, I’m thrilled to support the launch of the Public Lands Caucus. These lands are more than lines on a map—they’re where we connect with nature, with each other, and with something larger than ourselves. I applaud Representative Vasquez for his leadership in creating a space in Congress to prioritize conservation, recreation, and access for all. At a time when public lands are under threat from extractive industries and political indifference, this caucus sends a clear message: our lands are not for sale. They belong to the people—and we’re here to protect them.”

America Fitzpatrick, Conservation Program Director, League of Conservation Voters: “We applaud the establishment of the bipartisan Public Lands Caucus led by Representatives Vasquez and Zinke. The bipartisan nature of this caucus underscores how public lands unite us. Public lands across the country provide countless recreational, cultural, health, and economic opportunities. Proposals like the dark-of-night amendment to sell-off public lands in Utah and Nevada during last night’s House Natural Resources Committee markup have no place in the Budget Reconciliation process and we look forward to working with the caucus to ensure our lands and waters are protected for generations to come.”

Kellis Moss, Managing Director of Federal Affairs for Ducks Unlimited: “Public lands make hunting, fishing, and other outdoor recreation activities accessible for millions of Americans. Some of our most critical conservation programs, such as NAWCA, invest in habitat on public lands. We’re glad to see Congress prioritize conserving America’s natural places for the next generation of outdoorsmen and women, and we’re happy to support the Public Lands Caucus in this effort.”

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MIL OSI USA News –

May 8, 2025

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

US Senate News:

Source: US Senator for New Mexico Ben Ray Luján

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

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

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

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

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

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

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

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

Specifically, the TEST AI Act would:

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

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

Full text of the bill is available here.

MIL OSI USA News –

May 8, 2025

MIL-OSI Russia: Urgent: China and Russia will jointly defend the results of the victory in World War II, oppose hegemonism and power politics – Xi Jinping

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

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

Moscow, May 7 /Xinhua/ — China and Russia will jointly defend the results of victory in World War II and oppose hegemonism and power politics, Chinese President Xi Jinping said in Moscow on Wednesday.

Xi Jinping made the statement in a written speech published upon his arrival in the Russian capital on a state visit and to attend events marking the 80th anniversary of Victory in the Great Patriotic War.

China and Russia, as important major countries in the world and permanent members of the UN Security Council, will firmly safeguard the international system with the UN as its core and the international order based on international law, adhere to genuine multilateralism, and promote the building of a more just and reasonable global governance system, the Chinese leader said. –0–

MIL OSI Russia News –

May 8, 2025

MIL-OSI USA: Kaptur, Bell, Quigley, Johnson Send Letter Opposing Ed Martin Nomination Over Russian Media Ties

Source: United States House of Representatives – Congresswoman Marcy Kaptur (OH-09)

Washington, DC — Representatives Marcy Kaptur (OH-09), Wesley Bell (MO-01), Mike Quigley (IL-05), and Hank Johnson (GA-04), led a letter to President Trump and Attorney General Pam Bondi raising serious concerns over the potential nomination of Ed Martin to serve as US Attorney for the District of Columbia. Congresswoman Kaptur is the Co-Founder and Co-Chair and Congressman Quigley serves as Democratic Co-Chair of the Congressional Ukraine Caucus, and Congressman Bell is a new member of the Caucus. Additionally, Congressman Johnson is a senior member of the House Judiciary Committee, and Congressman Bell previously served as St. Louis County Prosecuting Attorney, leading Missouri’s largest prosecutor’s office.

The letter cites Martin’s extensive history of appearances on Russian state-funded media outlets RT and Sputnik — over 150 times in recent years — as cause for alarm given the sensitive nature of the role. The lawmakers argue that Martin’s public statements on these platforms, many of which were not disclosed, have often echoed Kremlin propaganda and undermined US national security interests, particularly regarding Russia’s aggression in Ukraine.

“Mr. Martin’s public contributions to Russian-backed platforms are deeply troubling to consider when considering how these views may reflect his stance toward critical issues related to Ukraine and national security. The downplaying of Russian aggression and interference in Ukraine he has espoused on Russian media raises concerns about his ability to uphold U.S. interests, particularly at a time when Russia’s invasion of Ukraine has escalated tensions globally. Additionally, his denying evidence of a Russian military buildup near Ukraine’s borders and suggesting that it was the US, not the Assad Regime, who ‘engineered’ the deadly 2017 Syrian chemical weapons attack. His appearances have included promoting narratives that align with Russian propaganda over US policy positions and our national interests,” said the lawmakers.

“Crucially, Mr. Martin did not fully disclose his extensive involvement with RT and Sputnik as required on his Senate Judiciary Committee questionnaire. This failure in transparency regarding his associations with Russian-backed media outlets calls into question his judgment and commitment to serving the interests of the United States. The US government has consistently recognized RT and Sputnik as propaganda and intelligence tools of the Russian state, and his refusal to disclose his participation raises serious doubts about his loyalty to American values,” continued the lawmakers.

“Given the gravity of these concerns, we urge you to conduct a thorough review of Mr. Martin’s past statements, associations, and overall fitness for the role of US Attorney for the District of Columbia. The appointment of an individual with such questionable allegiances could have serious repercussions for both US foreign policy and the integrity of our legal system,” concluded the lawmakers.

Read the full text of the letter here.

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MIL OSI USA News –

May 8, 2025

MIL-OSI USA: Huizenga Introduces “Made in America Motors Act” to Make Car Interest Tax Deductible

Source: United States House of Representatives – Congressman Bill Huizenga (MI-02)

Today, Congressman Bill Huizenga (R-MI) announced the introduction of H.R. 3191, the Made in America Motors Act. This bill establishes a new federal tax deduction on auto loan interest for American-made cars. The Made in America Motors Act is based on a major policy priority proposed by President Trump in the run up to the 2024 election. Car ownership is essential for many American families, especially those living in rural or suburban areas. The Made in America Motors Act directly lowers the cost of financing a vehicle—often a household’s second-biggest expense after housing. This tax deduction can save taxpayers hundreds of dollars each year, regardless of whether they use the standard deduction or itemize.

“The Made in America Motors Act is a win for American taxpayers, autoworkers, and Michigan,” said Congressman Bill Huizenga. “Making interest on car loans tax deductible was a key campaign promise made by President Trump. The Made in America Motors Act delivers on this promise by giving individuals and families a financial incentive to buy American, which in turn supports good-paying automotive jobs in Michigan and across the nation.”

“As America’s top auto producer, we’re grateful to work with Congressman Huizenga on policies that grow the American auto industry. The Made in America Motors Act will help Americans purchase a car and gain the freedom to move, while supporting American auto workers, “ said Ford Motor Company.

Specifically, the Made in America Motors Act would:

Create a new above-the-line tax deduction of up to $2500 annually for interest paid on auto loans
Make the deduction available to taxpayers, including those who take the standard deduction
Apply only to vehicles with final assembly in the United States

The full text of the Made in America Motors Act is available here.

MIL OSI USA News –

May 8, 2025

MIL-OSI Security: Shooting of 5-Year Old Child and an Adult in 2024 Gets District Man 156 Month Prison Term

Source: Office of United States Attorneys

WASHINGTON – Alante Partlow, 30, of the District, was sentenced today in Superior Court to 13 years in prison for shooting a 5-year-old child and an adult in April 2024, announced U.S. Attorney Edward R. Martin Jr. and Chief Pamela Smith of the Metropolitan Police Department.

Partlow pleaded guilty Oct. 18, 2024, to two counts of aggravated assault while armed and one count of possession of a firearm during a crime of violence. In addition to the prison term, Superior Court Judge Robert Okun ordered five years of supervised release.

According to the government’s evidence, with which Partlow agreed, at approximately 11:20 p.m. on April 23, 2024, the adult victim and a 5-year-old child were walking out of an apartment building in the Fort Totten neighborhood, after the adult had argued with Partlow. Partlow followed the victims outside and then fired multiple shots at the adult victim. The adult tried to shield the child and sustained multiple gunshot wounds. The child also sustained injuries.

In announcing the sentence, U.S. Attorney Martin and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. They also acknowledged the work of Assistant U.S. Attorney Michael Roberts, who prosecuted the case.

This law enforcement activity is part of President Donald J. Trump’s Make DC Safe and Beautiful Executive Order. The Executive Order directs a coordinated federal effort to reduce crime, enhance public safety, and restore pride in the nation’s capital through targeted enforcement, improved policing, and strategic partnerships.

MIL Security OSI –

May 8, 2025

MIL-OSI Canada: Ensuring access to justice for Albertans

Albertans deserve to have access to a fair, accessible and transparent justice system. To strengthen the judiciary and improve access to justice for those involved in civil, criminal and family matters, Alberta’s government has appointed a new assistant chief justice and justice.

“Alberta’s government is keeping its commitment to filling vacancies at the Alberta Court of Justice. We will continue to strengthen the capacity of our courts to ensure Albertans can get timely access to justice. I congratulate Justice Hancock and Clarissa Pearce, and I am confident they will excel in their new roles.”

Mickey Amery, Minister of Justice and Attorney General

The Honourable Justice David G. Hancock, ECA, is appointed assistant chief justice of the Alberta Court of Justice, Edmonton Family and Youth Division, effective today, and Clarissa V. Pearce, KC, will be appointed as a justice of the Alberta Court of Justice, Calgary Criminal Division and Calgary Region, effective May 14.

“Congratulations to Justice Hancock on his appointment to assistant chief justice of Edmonton Family and Youth. His experiences and abilities will serve him well in maintaining access to justice for families in the Edmonton area. Further congratulations to Ms. Pearce on her appointment to the Alberta Court of Justice. She brings a wealth of experience and ability to the court.”

James Hunter, chief justice, Alberta Court of Justice

Since June 2023, Alberta’s government has made 23 judicial appointments including three assistant chief justices and nine new justices in 2024, and one assistant chief justice and two new justices in early 2025. These latest appointments bring that total to 25 appointments in less than two years.

The Honourable Justice David G. Hancock, ECA received his bachelor of laws degree from the University of Alberta in 1979. Justice Hancock has been serving in the Edmonton Family and Youth Division since 2017. He began his career at Matheson & Company and became a partner. A former Premier, deputy premier, government house leader and cabinet minister, Justice Hancock was an elected representative in the Alberta legislature for more than 17 years. Currently, he is a committee board member for the Alberta Law Reform Institute, and – at the Alberta Court of Justice – is a member of the Edmonton Family and Youth Child Protection Committee, the Indigenous Strategies Committee, the Reforming Family Justice Advisory Committee and co-convener of the Reforming Family Justice System.

Clarissa V. Pearce, KC received her bachelor of laws degree from Dalhousie University in 2007 and her master of laws degree from Harvard University in 2010. She started her career as an articled clerk at the Court of Queen’s Bench in Calgary (now Court of King’s Bench), practiced law at Norton Rose Fulbright (formerly Macleod Dixon LLP) until 2016, then was legal counsel at the Provincial Court of Alberta (now Alberta Court of Justice) and is presently executive legal counsel to the chief justice of the Alberta Court of Justice. In 2024, she was a member of the Indigenous Justice System – Knowledge Sharing Symposium Planning Committee for the Canadian Institute for the Administration of Justice and acted as a facilitator and co-master of ceremonies at the symposium when it took place on Tsuut’ina Nation. Currently, she is a board member of the Canadian Child Abuse Association.

Quick facts

Lawyers with at least 10 years at the bar can apply to become a justice with the Alberta Court of Justice.
Lawyers with at least five years at the bar can apply to become a justice of the peace. Justice of the peace appointments are for 10 years.
Applications are reviewed by the Alberta Judicial Council and Alberta Judicial Nominating Committee, and then recommended to the minister of justice and cabinet for appointment.

Related information

Alberta’s government is actively recruiting justices and justices of the peace and encourages qualified lawyers to apply. Qualified lawyers who wish to be considered for appointment can access the application form online.

Related news

Judicial appointments increase Albertans access to justice (April 9, 2025)
Increasing court capacity (Jan. 15, 2025)
Strengthening Alberta’s courts (Dec. 4, 2024)

MIL OSI Canada News –

May 8, 2025

MIL-OSI USA: Attorney General Bonta Announces Fifth Edition of Disability Rights Handbook

Source: US State of California Department of Justice

Tuesday, May 6, 2025

Contact: (916) 210-6000, agpressoffice@doj.ca.gov

Releases updated chapters on access to buildings, telecommunications, benefits and services, service animals, and more

OAKLAND – California Attorney General Rob Bonta today, through the California Department of Justice’s Disability Rights Bureau, announced the release of the fifth edition of “Legal Rights of Persons with Disabilities,” a publication that provides information regarding the rights of people with disabilities in California. This handbook summarizes state and federal laws that protect the rights of individuals with disabilities in many arenas, including in the workplace and in accessing facilities open to the public. The handbook covers disability rights and obligations in a variety of contexts including businesses and places of public accommodation, employment, housing, K-12 education, healthcare, voting, and telecommunications, with chapters released on an ongoing basis since January 2024.

“At California DOJ, we are committed to ensuring that all individuals have access to inclusive and respectful environments free from discrimination, including discrimination based on disability,” said Attorney General Bonta. “Nearly one quarter of adults in California have a disability, and with the latest edition of this handbook, we aim to provide valuable information on disability rights to support accessibility and full participation for all Californians in every aspect of daily life.”

Californians with disabilities face widespread discrimination, segregation, and exclusion in many aspects of everyday life. California’s disability rights laws are designed to provide protection from these harmful practices, but Californians are often unaware of the nature and scope of these complex laws. All chapters of the “Legal Rights of Persons with Disabilities” handbook are available at https://oag.ca.gov/civil/disability-rights including new and updated chapters on:

Introduction to State and Federal Disability Rights Laws: This chapter provides an overview of major California state and federal laws that protect the rights of people with disabilities.

Access to Businesses and Other Public Accommodations for People with Disabilities: This chapter discusses California and federal laws that prohibit disability-based discrimination in business establishments and other public accommodations. It also describes an individual’s options when they have experienced disability-based discrimination in business establishments and other public accommodations.
Access to Healthcare for People with Disabilities: This chapter describes the state and federal laws that protect the rights of people with disabilities to access healthcare services, including hospitals and other facilities, services, insurance plans, and information offered by doctors’ offices and other medical providers. It also describes an individual’s options when they have experienced disability-based discrimination in healthcare services.
Disability Rights in Employment: This chapter discusses major California and federal laws that protect people with disabilities from discrimination, harassment, and retaliation in employment. It also describes an individual’s options when they have experienced discrimination in employment because of their disability.
Disability Rights in Housing: This chapter discusses California and federal laws that protect persons with disabilities from public and private housing discrimination. It also describes options when persons with disabilities have experienced discrimination in housing because of their disability.
Disability Rights in K-12 Education: This chapter discusses the rights of students with disabilities in pre-school, primary, and secondary education under California state and federal law.
Access to Voting for People with Disabilities: This chapter discusses access to polling places and the voting process under federal and state election laws. Additionally, this chapter describes an individual’s options when they have experienced discrimination because of their disability while registering to vote or voting.
Access to Public and Private Buildings and Facilities for People with Disabilities: This chapter provides an overview of state and federal laws that set requirements for physical accessibility of both public and private buildings and facilities. In addition, this chapter provides information regarding options for individuals who have experienced discrimination regarding physical accessibility.
Access to Telecommunications for People with Disabilities: Telecommunications services are services that allow people to communicate through cable, radio, television, satellite, or wire equipment and include a variety of services like telephone and text message services. This chapter details state and federal laws regarding telecommunication services ensuring that people with disabilities have equal access to said service. It also provides information if there are concerns about accessibility of a product or service.
Benefits and Services for People with Disabilities: This chapter highlights state and federal benefits, programs, and services that are designed to assist people with disabilities.
Service Animals: This chapter discusses the rights of people with disabilities to use service animals and emotional support animals under both federal and California laws. This chapter also provides the various complaint options people have when their rights regarding service or emotional support animals have been violated.

Attorney General Bonta is committed to supporting the rights of Californians with disabilities and enforcing state laws that protect people from discrimination. He has supported an update to the Americans with Disabilities Act’s (ADA) Title II regulations concerning accessibility of web information and services of state and local government entities, defended access to housing for persons with disabilities, and recommended revisions to strengthen and protect the rights of students with disabilities under Section 504 of the Rehabilitation Act of 1973. This handbook demonstrates the Attorney General’s ongoing commitment to enforcing these laws and ensuring that all Californians are protected from discrimination.

For more information about the Disability Rights Bureau, visit our webpage at https://oag.ca.gov/civil/disability-rights.

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MIL OSI USA News –

May 8, 2025

MIL-OSI USA: Capito Urges Administration to Expedite Review Process for Critical Broadband Funding

US Senate News:

Source: United States Senator for West Virginia Shelley Moore Capito
WASHINGTON, D.C. – U.S. Senator Shelley Moore Capito (R-W.Va.), a member of the Senate Commerce, Science, and Transportation Committee, sent a letter to U.S. Secretary of Commerce Howard Lutnick asking him to expedite the review and release of updated guidance for the Broadband Equity, Access, and Deployment (BEAD) program and urged that West Virginia not have to redo significant portions of their application.
The BEAD program, which was created through the Infrastructure Investment and Jobs Act (IIJA) that Senator Capito helped craft, is a federal grant program that aims to get all Americans online by funding partnerships between states or territories, communities, and stakeholders to build infrastructure where we need it to and increase adoption of high-speed internet. In June 2023, Senator Capito announced that West Virginia would receive a significant portion of this funding.
“I urge you to expedite not only the review and release of updated guidance, but the program as a whole. West Virginians have waited long enough, and I hope with your leadership they will soon have broadband access and this will be President Trump and your greatest accomplishment for rural America,” Senator Capito wrote.
The full letter can be found HERE or below:
Dear Secretary Lutnick,
As we have discussed, one of my top priorities in the Senate has been to get all of West Virginia connected with quality broadband service. The opportunity to get the more than 100,000 unserved locations in West Virginia broadband access is finally here through the Broadband Equity, Access, and Deployment (BEAD) program. The Biden Administration took years and years and burdened states and internet service providers (ISPs) with unnecessary mandates like labor requirements, climate change provisions, and some cumbersome financial requirements and did not connect a single location through BEAD. You can succeed where the previous administration failed and deliver this service quickly and efficiently to millions of Americans primarily in rural areas.
West Virginia has been allocated $1.2 billion to connect the state. The BEAD statute specifically says it is to be a technology neutral program. Some states may prefer fiber, others fixed wireless, and others satellite. Whatever technology or combination of technologies works best for the state and serves the most people while staying within the allocated funding amount should move forward.
When the BEAD program review was initiated on March 5, my state was 6 weeks away from completing the arduous application process after so many steps including a completed fair project selection process. Removing much of the red-tape from the program in a timely manner, so that my state and all others could move forward even faster, is an ideal outcome.
As we have discussed, I am concerned that West Virginia may be told to move back from the 1-yard line to the 40-yard line after the review concludes. Many of the changes that should be made to the program can be made quickly, but as an example, reopening the subgrantee application process for ISPs could delay connecting rural Americans for another year. I also am concerned that an arbitrary one-size-fits-all cost cap could be imposed for each connection. West Virginia is the Mountain State, so connecting us may be inherently more expensive than most every other state. In addition, certain technologies are not feasible in many areas not only due to our challenging topography but also because 78 percent of the state is forested.
Like you, I am opposed to outlandish costs for a single connection but those decisions should be made with a more tailored approach by the states in consultation with the National Telecommunications and Information Administration. My state is committed to achieving the goals of the program with the utmost efficiency.
I urge you to expedite not only the review and release of updated guidance but the program as a whole. West Virginians have waited long enough, and I hope with your leadership they will soon have broadband access and this will be President Trump and your greatest accomplishment for rural America.
Sincerely,

MIL OSI USA News –

May 8, 2025

MIL-OSI Global: MAGA’s ‘war on empathy’ might not be original, but it is dangerous

Source: The Conversation – Canada – By Michael Cameron, PhD Candidate of English, Dalhousie University

During his most recent appearance on Joe Rogan’s podcast, Elon Musk levelled a critique at empathy, calling it “the fundamental weakness of western civilization.”

If your first instinct is to brush this off as another example of Musk’s awkwardness, we suggest you think again. As journalist Julia Carrie Wong noted in The Guardian in April, Musk’s comments have appeared “amid a growing wave of opposition to empathy from across the American right.”

A diverse coalition of figures have taken up this “war on empathy,” including pastor Joe Rigney, conservative podcaster Allie Beth Stuckey and marketing professor Gad Saad.

Each has coined their own meme-able phrase: “The Sin of Empathy,” “Toxic Empathy” and “Suicidal Empathy,” respectively.

You may find a war on empathy perplexing — even downright dangerous — given that our contemporary global historical moment is one marked by climate-induced migration, rising political authoritarianism and a “relentless opposition” against LGBTQIA+ rights.

Doesn’t this moment call out for more empathy rather than less?

What is empathy anyway?

But first, we need to know what we are talking about.

Some recent criticisms of empathy have been premised on bad definitions. For instance, Albert Mohler, the president of the Southern Baptist Theological Seminary, recently claimed that empathy is “destructive” for immigration policy because “empathy means never having to say no.” This definition is not accurate.

Though a precise definition of empathy still eludes us, empathy is simply the ability to feel what someone else might be feeling. “Imagining yourself in another’s place,” writes neurologist Richard E. Cytowic, “is the basis of empathy.” Coming from a different angle, literary scholar Suzanne Keen defines empathy as “a vicarious, spontaneous sharing of affect” that “can be provoked… even by reading.”

The word “empathy” was coined in 1909. Previously, what we today call “empathy” fell under the name “sympathy.” For instance, writing in the 18th century, Scottish economist and philosopher Adam Smith described sympathy as the imaginative capacity to “enter as it were into [another’s] body, and become in some measure the same person.”

With the discovery of “mirror neurons,” modern neuroscience has in a sense validated Smith’s theories. As neuroscientist Christian Keysers explains: “The mirror system builds a bridge between the minds of two people,” showing that our brains are not only “deeply social” but also “magically connected to each other.”

Put simply, we are hardwired for empathy.

Sympathy and social contagion

In our research, we have explored literary depictions of self-destructive, suicidal and monstrous sympathies. We recognize some parallels between MAGA’s war on empathy and conceptual debates of the past, parallels at times interesting and worrisome.

During his appearance on Rogan’s podcast, Saad criticized Bishop Mariann Edgar Budde’s appeal to Trump for mercy on behalf of undocumented immigrants and those in the LGBTQIA+ community, suggesting it was indicative of the “parasitic idea” of open borders and an example of “suicidal empathy.”

A few months later, Canadian pop-psychologist Jordan Peterson echoed Saad and told Rogan that today’s political left is vulnerable to those who “parasitize empathy.”

This association between empathy and parasitic contagion is not at all new.

As literary scholar Mary Fairclough explains, in the 18th and 19th centuries, sympathy was “understood as a disruptive social phenomenon which functioned to spread disorder and unrest between individuals and even across nations like a ‘contagion.’”

As an example, Fairclough quotes the author Thomas De Quincey, who opined that “many a man has been drawn, by the contagion of sympathy with his own class acting as a mob, into outrages of destruction.”

The writer Mary Shelley literalized this notion of contagious sympathy in her 1826 novel The Last Man, which depicts a (perhaps uncomfortably familiar) plague pandemic. The novel paints sympathy as a method of mass control and societal dissolution just as contagious as the plague.

But unlike De Quincey, Shelley also celebrates sympathy as our most valuable and effective collective resource in times of crisis. This celebration is most notable in the character of Adrian, who devotes his life to “bring[ing] patience, and sympathy, and such aid as art affords, to the bed of disease.’”

The uses and abuses of empathy

Much as Shelley suggests for sympathy, research shows that empathy must be properly channelled so it isn’t used to divide and manipulate.

For example, research shows that empathy is not impartial. People tend to empathize more easily with those who share their racial or social background, and less with those who are perceived as different. In other words, racial prejudices may bias our instinctive empathetic responses.

At the same time, empathy has been linked to problematic practices like racial impersonation and colonial appropriation, where members of dominant groups claim to identify with marginalized people in ways that often reinforce power imbalances rather than dismantle them.

But MAGA’s approach to empathy is less a well-meaning critique than an all-out war and comes at the issues with a far less benevolent set of assumptions and goals. As Wong noted: “We are witnessing the construction of the ideological architecture to excuse violence and suffering on a mass scale.”

Consider what Musk said to Rogan regarding immigration:

“I believe in empathy, like I think you should care about other people, but you need to have empathy for civilization as a whole and not commit to a civilizational suicide.”

This comment is strikingly similar to the idea of “racial suicide” endorsed by eugenicist thinkers in the 19th and early 20th centuries. Racial suicide was a concept rooted in the xenophobic fear that one’s own ethnic population would be replaced by another racialized population that happened to have a higher birth rate.

As the historian Rob Boddice notes, “eugenic morality” was “to be guided by sympathy construed as sympathy for the whole of society” rather than towards individuals. For the eugenicists, this ideology justified extreme measures, such as forced sterilizations and racial segregation. The horrors of eugenics and its influence on the Nazi Holocaust are well documented.

Despite these history lessons, Musk and his ilk, however, seem unperturbed and even enthusiastic about repeating history.

Much can be said about empathy’s potential limitations alongside its many virtues. But while MAGA supporters may have balked at her speech and her call for empathy, we would do well to remember the words of Bishop Budde:

“We should be merciful to the stranger, for we were once strangers in this land.”

The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. MAGA’s ‘war on empathy’ might not be original, but it is dangerous – https://theconversation.com/magas-war-on-empathy-might-not-be-original-but-it-is-dangerous-255300

MIL OSI – Global Reports –

May 8, 2025

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

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

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

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

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

Solving real consumer problems

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

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

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

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

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

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

Manage your money wisely

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

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

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

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

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

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

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

Building a business plan

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

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

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

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

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

Hire the right people for the job

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

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

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

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

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

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

Seek out a knowledgeable mentor

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

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

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

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

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

Passion and persistence are key

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

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

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

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

Make use of resources

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

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

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

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

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

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

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

MIL OSI – Global Reports –

May 8, 2025

MIL-OSI United Kingdom: Join the Open Innovation Team at Civil Service Live 2025

Source: United Kingdom – Executive Government & Departments

News story

Join the Open Innovation Team at Civil Service Live 2025

Explore expert insights, practical policy support and new ideas at our Session Hub

The Open Innovation Team (OIT) is hosting a Session Hub at Civil Service Live 2025, taking place on 8–9 July at ExCeL London.

OIT helps civil servants tackle complex policy challenges by working with leading academics and external experts to generate ideas and analysis for policy. We support departments across the policy cycle – from reviewing evidence and generating ideas to developing policy and evaluating impact.

At our Session Hub, you’ll be able to:

Attend short talks from top academics on priority policy topics, with insights you can apply to your work
Join discussions with experts and colleagues about practical solutions
Speak with OIT colleagues about how we can support your policy goals

Drop by to learn from experts, connect with our team – and discover how we can help you research, deliver and evaluate better policy.

For more information, visit our Civil Service Live page

Sign up to our events mailing list

Published 7 May 2025

MIL OSI United Kingdom –

May 8, 2025

MIL-OSI NGOs: Historic breakthrough: over 40 Nigerian civil society organisations unite to launch climate justice movement

Source: Greenpeace Statement –

Abuja, Nigeria: May 7, 2025 –In a watershed moment for the promotion of environmental justice in Nigeria, more than 40 Civil Society Organisations (CSOs) joined forces to launch the Nigerian Climate Justice Movement (CJM). A declaration was issued at the end of a landmark two-day event held in Abuja. The declaration reinforces the resolve of CSOs in holding corporations accountable for environmental damage and biodiversity destruction while amplifying Africa’s demands in global climate justice debates.

The Climate Justice Movement, spearheaded by Greenpeace Africa, aims to connect isolated climate voices and responses under one umbrella movement to collectively address the disproportionate impact of climate change on the African continent.

Ogunlade Olamide Martins, Associate Director (Climate Change) for Corporate Accountability and Public Participation Africa (CAPPA), one of the signatories, stated: “This declaration represents a turning point for grassroots environmental movements in Nigeria. For too long, our struggles have been fragmented despite facing common threats from extractive industries. By uniting under the Climate Justice Movement, we multiply our collective power and create space for community voices to shape the solutions.”

Sherelee Odayar, Oil and Gas Campaigner at Greenpeace Africa, said: “For decades, oil giants like Shell have extracted billions in profits from Nigerian soil while leaving behind devastated ecosystems and broken communities. Recent media investigations exposing Shell’s negligence in the Niger Delta is an example of the toxicity and selfish, unempathetic profiteering that communities have endured for generations. Through this declaration, we’re sending a clear message: the era of unchecked pollution and corporate impunity is over – it’s time for polluters to pay.”

Cynthia Moyo, Climate and Energy Campaigner at Greenpeace Africa, said: “Nigeria stands at a crossroads in its energy future. As we witness intensifying flooding in the Niger Delta and advancing desertification in the north, it’s clear that climate change requires systemic solutions. This movement isn’t just about cleaning up past damage – it’s about shaping a just transition that centres African realities and protects communities from both climate impacts and false solutions like carbon trading that simply perpetuate exploitation.”

Elizabeth Atieno, Food Security Campaigner at Greenpeace Africa, highlighted the connection between pollution and food security: “Oil spills have contaminated once-fertile soils and fishing grounds across the Niger Delta, creating a food crisis that disproportionately affects women and children. When farmers can’t farm and fisherfolk can’t fish, entire communities face malnutrition and economic devastation. Climate justice is fundamentally about securing the right to food sovereignty in the face of corporate environmental abuses.”

Despite contributing minimally to global greenhouse gas emissions, Africa suffers some of the most severe climate impacts, with warming already exceeding the global average. Between July and October 2024, floods affected 34 states across Nigeria, impacting over 4 million people, with more than 300 lives lost and over 2,854 people injured. Nigeria’s catastrophic 2022 floods killed over 600 people, displacing 1.4 million citizens, and affecting more than 4.4 million across 33 states. The disaster destroyed over 200,000 homes and damaged 676,000 hectares of farmland, worsening food insecurity in a country already facing economic challenges.

Another signatory, Ibrahim Muhammad Shamsuddin, Program Manager at Yanayl Haki Afriqya, added, “The youth of Nigeria are demanding accountability from corporations and policymakers. We refuse to inherit a country where profits routinely take precedence over people and planet, having lived the realities that climate change impacts pose to our communities. This declaration is our pledge to transform environmental advocacy in Nigeria from isolated campaigns into a formidable, unified force that drives positive change towards access to a safe and healthy environment for all, which is a fundamental human right.”

The CJM declaration outlines comprehensive demands, including immediate remediation of oil-polluted sites in the Niger Delta, compensation for communities affected by decades of extraction, ending gas flaring practices, transitioning to renewable energy infrastructure, strengthening regulatory frameworks against corporate environmental abuses and rejection of false solutions like carbon trading.

The coalition brings together diverse organisations working across environmental sectors, including ocean conservation, forest protection, climate advocacy, and community rights. CJM Nigeria is the fourth launch, with successful previous launches in the DRC, Cameroon, and Ghana.

The coalition will now focus on implementing a coordinated action plan, engaging government authorities, and expanding the movement across West Africa.

ENDS

For more information or interview requests, please contact:

Dr. Ignatius Emeka Onyekwere, Media Consultant for CJM Nigeria, [email protected], +234 810 038 5897

Ferdinand Omondi, Communication Manager, Greenpeace Africa, [email protected], +254 722 505 233

Notes to Editors:

About Greenpeace Africa:

Greenpeace Africa is an independent environmental campaigning organisation established in 2008 that operates across the African continent with offices in Senegal, Kenya, the Democratic Republic of Congo, Cameroon and South Africa. As part of the global Greenpeace network, the organisation works to protect and conserve Africa’s natural environment while advocating for peace and environmental justice.

About the Climate Justice Movement

The Climate Justice Movement (CJM) is a pan-African initiative that unites grassroots organisations to address environmental challenges across the continent.

The CJM represents a cornerstone of Greenpeace Africa’s strategy to build people-powered movements that challenge corporate environmental exploitation while elevating local communities as agents of change in environmental decision-making processes.

MIL OSI NGO –

May 8, 2025

MIL-OSI USA: Ranking Member Kaptur Remarks at Fiscal Year 2026 US Department of Energy Budget Hearing

Source: United States House of Representatives – Congresswoman Marcy Kaptur (OH-09)

*** WATCH A FULL RECORDING OF THE HEARING HERE ***

Washington, DC — Today, Congresswoman Marcy Kaptur (OH-09), Ranking Member of the House Appropriations Energy and Water Development and Related Agencies Subcommittee, delivered the following opening remarks at the subcommittee’s fiscal year 2026 budget hearing for the US Department of Energy with Energy Secretary Chris Chris Wright:

Good morning, and thank you all for joining us.

As the Ranking Member of this subcommittee and a lifelong advocate for America’s energy independence in perpetuity, I welcome this opportunity to examine the Department of Energy’s recent actions and to discuss your proposed budget.

Let me begin with a plain truth: The essentials of life are freshwater, food, and energy. The United States cannot afford to shortchange our energy future. US energy independence is essential for our liberty. I served President Jimmy Carter during the turbulent era not so long ago when the US slid into unconscious dependence on global energy supplies. My motto from then until now “never again.”

The Department of Energy is the engine room of our nation’s energy security. It drives innovation. It serves as a critical steward of our nuclear security enterprise, and environmental obligations. We have not always done well there. It powers our economy. It protects our grid. It supports cutting-edge research, and ensures that our people — working families, industrious small and large businesses, farmers, our retirees — all have access to affordable, reliable energy and continuing energy innovation.

And yet, we are confronted with proposals to slash $20 Billion in Department of Energy programs, despite clear and present threats to our energy stability. The Administration’s devastating 74 percent cut to Energy Efficiency and Renewable Energy is not just shortsighted, it is dangerous. Since January, the Department of Energy has suspended critical energy programs, cancelled executed awards and contracts authorized by Congress, severely reduced staffing, including removal of the Inspector General who tries to go after the crooks, and changed contracting policies. The resulting confusion has disrupted communities, businesses, and project developers across our country. This chaotic approach to this critical sector of a strong America and our national security impacts every family, business and community. Already, our people are feeling directly how the pinch feels when rising energy costs impact every American family and business.

Let me be crystal clear. Weakening US energy progress at DOE is a direct threat to America’s energy security and gives our enemies relief. Weakness in advancing America’s energy intelligence leaves us open and exposed to foreign influence. Radical cutbacks weaken our domestic supply chains and delay the very innovations that would shield our economy from global price shocks and hasten enemy targeting. I am shocked by the damage the Administration’s proposals are causing and will continue to cause.

Energy is essential to our way of life and economic growth of all of our communities. The United States is producing more oil than ever before — record-high production levels — something that, in theory, should be bringing gasoline prices down, not bobbing back and forth. But the reality is, American families have not been seeing sustained record-low gas prices. Why? Because we are still tethered to a volatile global energy market dominated by cartels and petroleum dictators. Oil prices declined recently after the OPEC cartel and its allies agreed to a further boost to output. US crude fell 2 percent to $53.13 a barrel, its lowest value since February 2021. Let me be the first Member of Congress to warn you that dependence on foreign crude is not in the national security interests of our nation.

Forty-eight years ago, as our nation’s economy tanked and sank into deep depression due to the first Arab oil embargo, President Carter and our predecessors in Congress created the US Department of Energy. With their vision and steadfast bipartisan commitment over decades, our nation has steadily made progress in attaining domestic energy independence. We cannot take our foot off the accelerator.

Over the last 40 years, America has made remarkable progress through expanding domestic oil and gas production. Ohio knows this well. We have developed cheaper, cleaner energy sources. Competition brings lower prices in energy. Innovations, including biofuels, solar, energy storage, and thermal recovery, are pushing into new energy frontiers of fusion, advanced nuclear, and hydrogen.

Let’s not forget — when Russia invaded Ukraine, it wasn’t just a European crisis. That illegal invasion sent energy prices soaring around the world. The Department of Energy’s swift action to deploy strategic reserves and accelerate clean energy deployment helped soften the blow. But without a fully resourced Department, our ability to respond next time will be severely limited. This posture is dangerous.

American energy independence is about more than geopolitics. Hardworking families in Northwest Ohio and across our country feel these pressures at the pump, see it in their utility bills, and at the checkout counter at the grocery store.

Our nation is approaching 350 million people. We cannot behave as though this is 1950. Undermining the US Department of Energy by severely underfunding advanced energy research risks higher energy costs, increased geopolitical volatility, and weaker national security. That is not a future America should accept.

Mr. Secretary, I would also like to close by raising for your awareness a district-centric issue that holds national implications: two of the five worst commercial nuclear power incidents in our nation’s history occurred in Ohio’s Nuclear North that I represent. That’s 40 percent! These dangerous and ultimately criminally negligent operations represent the worst management of commercial nuclear power in our nation’s history.

Ratepayers in Ohio have for 40 years been the victim of these corrupt commercial nuclear operations — all through the willful federal and state abdication of quality management by the Atomic Energy Commission, the Department of Energy, and the Nuclear Regulatory Commission. Our ratepayers deserve and are due justice — they have been paying for the crimes and slipshod decision. So I ask that you help me from your position to achieve justice for Ohio’s billed ratepayers; the price gouging continues as we meet here today.

As we work on FY 26 appropriations, I will fight to ensure this Energy and Water bill invests in America’s every future, our energy independence, in world-class innovation, and diversifying energy supplies as fundamental to our continuing economic strength. I have a notebook I have prepared for you and your staff outlining what has been going on in Ohio. It is absolutely un-American what has gone on there, and it has gone on for a long time. America’s energy future is in your hands. Everything must be “Made in America,” for America to assure a remarkable history for the generations to come.

Thank you, and I look forward to the discussion ahead.

# # #

MIL OSI USA News –

May 8, 2025

MIL-OSI USA: BRAVO’S “the Real Housewives of Rhode Island” Is Reality!

Source: US State of Rhode Island

Providence, RI — “The Real Housewives of Rhode Island” Set against the shores of the Ocean State, “The Real Housewives” franchise expands into the world of a tight-knit circle of Rhode Islanders who have deep community roots and families that go back generations. With aspirational lives, thriving businesses and tangled family dynamics, these decade-long friendships prove that in a state this small, there’s no escaping your past � or each other.

“The Real Housewives of Rhode Island” is produced by Evolution Media. Lucilla D’Agostino, Joseph Ferraro and Jen McClure-Metz executive produce. Andy Cohen is also an executive producer.

Steven Feinberg, Executive Director of the Rhode Island Film & TV Office, stated, “One of the most popular reality-shows ever to grace television, “The Real Housewives” franchise sparked an avalanche of enthusiasm when word spread that this entertaining series just might land in the Ocean State. Well, good news, folks. “The Real Housewives of Rhode Island” is ready to roll and take the world by storm! Action!”

“We’re excited to welcome ‘The Real Housewives’ and their millions of viewers to Rhode Island,” said Governor Dan McKee. “Our state is home to vibrant communities, amazing food, rich history, and stunning coastal beauty�perfect for the spotlight. This is a great opportunity to support our local economy and bring national attention to all Rhode Island has to offer.”

“From the recent filming of ‘Ella McCay’ to HBO’s ‘The Gilded Age,’ Rhode Island is an incredible backdrop for a wide range of productions. The filming of ‘The Real Housewives of Rhode Island’ is a great way to showcase some of the Ocean State’s world-class dining and hospitality,” said House Speaker K. Joseph Shekarchi. “I am very proud to be a strong supporter of the Rhode Island Film & Television Office, because the arts are a vital part of Rhode Island’s culture and economy. From catering and site usage for filming to increasing tourism, the film and TV industry generates revenue for our local businesses and brings in millions of dollars to our state.”

President of the Senate Valarie J. Lawson said “I am pleased to welcome Bravo’s ‘Real Housewives’ franchise to Rhode Island, and I am excited for the show’s millions of fans to get a glimpse into our state’s rich history, culture, and natural beauty. Thank you to Steve Feinberg and the Rhode Island Film & Television Office for your outstanding work to secure so many productions that generate excitement in our communities while showcasing the Ocean State to audiences around the globe.”

The Rhode Island Film & TV Office is a government agency under the umbrella of the Rhode Island State Council on the Arts (RISCA).

MIL OSI USA News –

May 8, 2025

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

Source: Microsoft

Headline: Congressional testimony: Supporting American leadership in quantum technology

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

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

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

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

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

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

The Quantum Information Revolution

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

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

Why Quantum Matters in the Age of AI

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

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

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

Microsoft’s Leadership in Quantum

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

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

Microsoft’s First-Party Research: The Topological Approach

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

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

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

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

Strategic Collaborations

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

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

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

Winning the Race in Quantum

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

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

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

Advancing Quantum Research

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

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

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

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

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

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

2. Developing & Attracting Quantum Talent

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

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

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

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

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

3. Securing the Quantum Supply Chain

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

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

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

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

Conclusion

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

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

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

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

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

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

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

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

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

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

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

[10] Id.

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

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

[13] Id.

[14] Id.

[15] Id.

[16] Id.

MIL OSI Economics –

May 8, 2025

MIL-OSI Canada: Quadrupling youth beds with CASA Mental Health

Alberta’s government continues to build the Alberta Recovery Model, a continuum of mental health and addiction care that includes prevention, intervention, treatment and recovery. With record-high investment, the model is supporting Albertans of all ages, ensuring children and youth get the mental health care they need to live healthy, fulfilling lives.

Alberta’s government has an established partnership with CASA Mental Health, the province’s second-largest provider of community-based youth mental health services. The organization focuses on youth who are experiencing mental health challenges that are complex but do not require treatment in an acute care setting or psychiatric hospital.

To continue this partnership, Budget 2025 provides $47 million in capital grants to CASA Mental Health to build live-in and day program youth facilities in three new locations: Medicine Hat, Fort McMurray and Calgary. This is part of a capital commitment of $75 million over three years (2023-26), which will also support the relocation of the existing CASA House from Sherwood Park to Edmonton. This capital grant funding will quadruple the number of CASA House beds in Alberta to about 80. Once fully operational, CASA House facilities will treat more than 300 young Albertans every year.

“Investing in youth mental health sets young people up for brighter futures and helps strengthen families and communities across Alberta. The new CASA Houses and our strong partnership with CASA Mental Health will provide the care they need, closer to home.”

Premier Danielle Smith, MLA for Brooks-Medicine Hat

“Through the Alberta Recovery Model, we are continuing to invest in the infrastructure, programs and services that will give Albertans access to the supports they need to live meaningful, fulfilling lives. Our partnership with CASA Mental Health is increasing access to services and bringing supports closer to home.”

Dan Williams, Minister of Mental Health and Addiction

CASA House facilities will provide treatment for youth aged 12-18 who are experiencing complex mental health challenges with both live-in and day programming. This programming supports youth with the development of skills to build stronger relationships, manage conflict, solve problems, maintain positive health and wellness, and transition to a community school setting. Alberta’s government ensures no family needs to pay for these services by fully funding their operation.

“CASA Mental Health is expanding to provide services to children and youth, and hope to the families supporting them, by bridging the gap between home and hospital. We’re pleased to partner with the Alberta government to bring timely mental health care to more children and youth throughout the province.”

Bonnie Blakley, chief executive officer, CASA Mental Health

“We felt welcomed. We were treated with respect. We loved that there was a program for our child and for us. We learned a lot for the first time since our struggles, we felt like we were not alone and that there is hope. We are so thankful for the amazing staff who made our child’s journey easier.”

Parent of CASA House patient

CASA Mental Health is in the final stages of securing land for the Fort McMurray CASA House, with that location and the Calgary CASA House expected to open in 2027.

Targeted completion of the Medicine Hat and Edmonton CASA House facilities is 2029. The existing CASA House in Sherwood Park will continue operating until the new location opens. As a non-profit charity, CASA Mental Health will engage with the community and embark on a fundraising campaign to supplement government’s capital funding commitment.

“CASA House will have a profound impact on the Fort McMurray region. This facility will help children receive quality mental health care close to home. This is another example of Alberta’s government investing in local infrastructure to support families in northern Alberta.”

Brian Jean, MLA for Fort McMurray-Lac La Biche

“As an advocate of mental health care, I’m grateful for this new investment for children and youth facing complex mental health challenges. Too often, parents are left questioning how they can get their children the help they need. This new facility will be an important addition to our community.”

Tany Yao, MLA for Fort McMurray-Wood Buffalo

“Since being elected two years ago, I have worked with community organizations and service providers to connect with each other and make a mental health and addiction system that works for Medicine Hat. A new CASA House in the city will fill a gap I often hear about, which is the need for more access to mental health services tailored specifically to youth.”

Justin Wright, MLA for Cypress-Medicine Hat

Treatment includes individual, group and family therapy, social and life skills training and on-site schooling. Family and caregivers play a vital role in recovery and are actively engaged throughout the treatment process. This includes participation in bi-weekly parent and multi-family group therapy sessions, education and support opportunities and involvement in personalized care and discharge planning.

Youth who stay at a CASA House receive proactive discharge planning, including eight to 12 weeks of follow-up support. The transition team works with families to develop a coordinated plan that may include referrals to community services, school supports and primary care providers.

Alberta’s government is making record investments in mental health services to support Albertans of all ages in their pursuit of wellness and recovery. This includes investing in digital supports like 211 Alberta and Kids Help Phone, supporting school-based initiatives, increasing access to eating disorder treatment for young Albertans and investing in affordable virtual and in-person counselling.

Quick facts

May 7 is National Child and Youth Mental Health Day.
CASA House patients consistently see improvements in symptoms, including:
- Reduction in attention-related symptoms.
- Reduction in substance use.
- Reduction in emotionally related symptoms (anxiety, depression, etc.).
- Improvement in peer relationships.
- Improvement in school attendance and participation.
In 2024-25, CASA Mental Health provided support for almost 11,000 patients and family members.
Albertans experiencing mental health or addiction challenges can call or text 211 Alberta for information on services and supports in their community.

Related information

CASA Mental Health
Alberta Recovery Model

Related news

New school year, new mental health classrooms (Sept. 2024)
Record-breaking expansion of mental health services (May 2024)
Building a future of mental wellness (Jan. 2024)
Expanding mental health treatment for youth (March 2023)

Multimedia

Virtual tour – Sherwood Park CASA House

MIL OSI Canada News –

May 8, 2025

MIL-OSI USA: ICYMI: Senator Coons joins Andy Beshear podcast to talk chickens, faith, and getting started in local government

US Senate News:

Source: United States Senator for Delaware Christopher Coons

WILMINGTON, Del. – In case you missed it, U.S. Senator Chris Coons (D-Del.) joined Kentucky Governor Andy Beshear for an interview on the Andy Beshear Podcast. They discussed Senator Coons’ background and how his faith informs his Democratic values and public service, as well as his work with the bipartisan Senate Chicken Caucus. Senator Coons appeared on the fourth episode of Governor Beshear’s podcast. He is only the second elected official to be interviewed on the show.

You can watch and listen here.

Key excerpts:

On serving in local government

Beshear: So, when you got into politics, you got in at the local level, and local politics is hard. I mean, everybody knows where you live!

CAC: It’s mean, it’s tough. The smaller the yard, the meaner the dog.

Beshear: And so, I’m wondering, how did your experiences there either prepare you for the U.S. Senate, or how different are they?

CAC: Well, so, in between the non-profit work I did and going into local government, I spent eight years for a global manufacturing company that’s headquartered here in Delaware, and I gradually got more involved – more engaged – with the Democratic party here in Delaware and was recruited to run for County Council President, partly because there was a real ethics meltdown going on in county government, and my master’s in divinity school really focused on ethics, and I had worked as an ethics officer – an ethics trainer at the company I worked for. When I was County Council President, I wrote a new ethics code and was involved in a number of public integrity and ethics issues. I represented half a million people, and our county here, New Castle County, is mostly unincorporated, so the county government provides police, fire, paramedics, land use, sewer, zoning, housing, and libraries for about 400,000 people, and it was a very challenging environment, a great learning opportunity. My wife and I had infant twins who were born in ’99, I was elected in 2000, and our youngest child was born in 2001, so as a brand-new County Council President with one staff person representing roughly half a million people…

Beshear: With three kids!

CAC: I had three kids under two years old, and I had two full-time jobs because I was still the in-house lawyer for that manufacturing company. It was crazy. I barely remember the first four years I was elected. But to your point, representing local government in the community where I grew up was both wonderful, because I had a chance to really have an impact on the people I’d grown up with and to have an impact on housing and libraries, paramedic and police response time, and disaster preparedness and all of that stuff—but you know people, and they know you and they know how to get you, and they know your mom, and they know your brother-in-law, you know? They know you. That’s what’s great about local government, and that’s what’s hard about local government.

On faith

Beshear: I know that it hurts you as a Senator who has sworn to uphold the Constitution, but also as a person of faith. So many of the teachings in our Bible seem to be impacted, and impacted negatively, by these actions. You think about the fishes and the loaves and cutting SNAP benefits. You think about the parable, the Good Samaritan, picking up that person who’s different from you and not kicking them while they’re down. So, how do you bring your faith to this job? How does it help you make decisions? And maybe how does it keep you going when things are tough?

CAC: Well, thank you for the question. Because it’s harder—it’s been harder this year than it’s ever been for me. Actually, looking out my window right now, I can see my church, First and Central Presbyterian, here in Wilmington. And I try, I’ve got something on the wall behind me, it’s Micah 6:8, which is one of my favorites, the most concise passages from the Old Testament, and it is a reminder that we are called to do justice, love mercy, and walk humbly with our God. I try to start with humility, to say that everyone I’m interacting with is a child of God, and they may have different understandings or interpretations than I do of what we’re called to do, but if you do justice and love kindness, you’re on the right track. Look, the Bible, the Gospel in particular, is not a political pamphlet. It doesn’t say exactly what we ought to do. It doesn’t say we need more tax cuts, or we need more healthcare, but there are 2,000 specific references to the poor and I think if you look at when Jesus speaks for the very first time, he stands up in his home synagogue and he recites a scripture passage from Isaiah 61—this happens in Luke 4—and where he says, “the spirit of the Lord is upon me, he has anointed me to teach good news to the poor.” If you read that passage, at the very beginning of Jesus’ public ministry, I think it’s hard to reach the conclusion that He doesn’t want us to principally focus on the outcasts, the widowed, the orphans, those in prison, those who are poor, that that is something we are called to do. Look, I represent a million people, not all of them are people of faith, and not all of them are Christians. Folks from many different backgrounds are part of my state and I try to be mindful of the gap between what I believe, and the scripture that I read, and what may be the common interests of the million people I represent. But, Andy, every faith has the Golden Rule, “Do unto others you’d have them do unto you,” and the things we’ve been talking about—addressing the opioid crisis, helping people with affordable housing, responding to natural disasters, and doing it in a way that puts volunteerism and community service first, that strikes me as being right in line with what the Gospels call us to do.

On the Senate Chicken Caucus

Beshear: Amen. We like to typically end with something a little more fun. I read that you founded the Senate Chicken Caucus. Is that accurate?

CAC: Indeed, I did.

Beshear: You’ve got to tell me, what is the Senate Chicken Caucus? Are we talking about hot chicken?

CAC: So, one of my best friends in the Senate was Johnny Isakson of Georgia, just a great man, a great and generous and fun man. We did a lot of traveling and working together and his home state of Georgia is one of the biggest chicken producers in the country, and Sussex County, Delaware, is one of the biggest counties in chicken production in the country, and one of Johnny’s favorite sayings was “life is about friends and future friends, and you don’t have to agree with each other on everything, you just have to agree with each other on one thing.” And so, as we were getting to know each other, we realized that we had chickens in common, that both Delaware and Georgia really cared about growing our chicken exports and so we went to a number of foreign countries together—South Africa, I remember, in particular—where we were trying to promote American chicken exports, and we were trying to grow markets for the fabulous, healthy, tasty protein that we were growing in Georgia and in Delaware in our chicken farms. Southern Delaware is dominated by chicken agriculture. It really is the center of agriculture in Delaware. We have events every year where we always serve chicken, and it’s a great opportunity for me to work across the aisle with Senators from other states—from Arkansas, and Mississippi, and North Carolina, and Georgia, as Johnny was [from]—and focus on what we have in common in the interests of our rural areas and our agricultural sectors. So, that’s the history of the Chicken Caucus and, yes, it is a little funny, but we had a great time doing chicken wing contests and talking about how we could help promote chicken agriculture in the United States and around the world.

MIL OSI USA News –

May 8, 2025

MIL-OSI Global: India-Pakistan strikes: 5 essential reads on decades of rivalry and tensions over Kashmir

Source: The Conversation – Global Perspectives – By Matt Williams, Senior International Editor

Indian paramilitary soldiers patrol a street in Srinagar, Jammu and Kashmir on May 4, 2025. Firdous Nazir/NurPhoto via Getty Images

Indian airstrikes deep into Pakistan and retaliatory shelling across the border have put the subcontinent on edge once again, with many fearing a further escalation between the two nuclear neighbors.

At least 26 people were killed on May 6, 2025, by missiles launched by India, according to Pakistani authorities. India says it targeted “terrorist infrastructure” sites in the operation in response to an attack on April 22 that saw dozens of tourists in Indian-administered Kashmir killed by gunmen.

Pakistan warned it would respond “at a time, place and manner of its choosing.” Meanwhile, shelling by Pakistan across the “line of control” separating the Indian- and Pakistani-controlled parts of Kashmir killed 15 people, India says.

It represents the most serious fighting between the two countries in decades. But Kashmir has long been a source of tension between India and Pakistan, as articles from The Conversation’s archive explain.

1. The roots of the conflict

The dispute over Kashmir, which sits on the northern tip of the Indian subcontinent and borders Pakistan to the west, can be traced back to the partition of India in 1947 and the policies of colonial British rule that preceded it.

As Sumit Ganguly, an expert of Indian politics and foreign policy, explains, the British gave the rulers of nominally autonomous princely states the choice of which country they wanted to join post-partition: Muslim-majority Pakistan or Hindu-majority India. This put Maharaja Hari Singh, the monarch of Jammu and Kashmir, in a tricky position – he was a Hindu ruling over a predominantly Muslim population.

“India, which was created as a secular state, wanted to incorporate Kashmir to demonstrate that a predominantly Muslim region could thrive in a Hindu-majority country committed to secularism. Pakistan, on the other hand, sought Kashmir because of its physical proximity and Muslim majority,” writes Ganguly.

While Singh was still deliberating, a rebellion broke out in Kashmir, with newly independent Pakistan giving the insurgents support. India sent troops in on condition that Singh formally accede to India, and the first of four Indian-Pakistan wars began in 1947. It ended with Pakistan gaining control of a third of the disputed region.

“Neither country has wholly reconciled itself to Kashmir’s status. India claims the state in its entirety, as it became a part of its territory legally. Pakistan, however, has historically held the view that Kashmir was ceded to India by a ruler who did not represent its majority Muslim population. Indeed, this dispute between two nuclear-armed powers remains a potential global flashpoint,” Ganguly adds.

2. More than a border dispute

But to see Kashmir solely through the lens of Indian-Pakistani rivalry would do the complicated conflict a disservice. Often neglected in this reading is the views of many Kashmiris themselves, many of whom would prefer independence.

Chitralekha Zutshi, a professor of history at William & Mary, notes that the desire for autonomy by groups in the region has resulted in numerous independence movements and repeated uprisings.

Fighters from the pro-independence Jammu and Kashmir Liberation Front parade in 1991.
Mushtaq Ali/AFP via Getty Images

Pakistan has supported some of these movements, a fact that India has seized upon to “write off unrest in the Kashmir Valley as a byproduct of its territorial dispute with Pakistan,” Zutshi writes. But in so doing, the grievances of “an entire generation of young Kashmiris” who view India as “an occupying power” have been ignored, the scholar continues.

She concludes: “The Kashmir dispute cannot be resolved bilaterally by India and Pakistan alone – even if the two countries were willing to work together to resolve their differences. This is because the conflict has many sides.”

3. A water war?

Backing up the claim that the views of Kashmiris are often neglected is the fact that the Indus Waters Treaty – a crucial decades-old agreement that allows Pakistan and India to share water use from the region’s rivers – was drawn up largely without the input of Kashmiri people, writes Fazlul Haq, a research scientist at Ohio State University.

Haq, who helps run the university’s Indus Basin Water Project, explains that even before the latest flare-up of violence, a dispute over the treaty was causing tension between India and Pakistan. The problem was that the original treaty, hailed as a success for many years, didn’t take into account the impact of climate change. Melting glaciers have put the long-term sustainability of the treaty at risk, jeopardizing the water supply for more than 300 million people.

Fazlul Haq/Bryan Mark/Byrd Polar and Climate Research Center/Ohio State University, CC BY

“Despite being the primary source of water for the basin, Kashmiris have had no role in negotiations or decision-making under the treaty,” Haq writes. Nor did it provide a mechanism for any regional disputes. “Tensions over hydropower projects in Kashmir were bringing India and Pakistan toward diplomatic deadlock long before the recent attack,” Haq notes.

“The treaty now exists in a state of limbo. While it technically remains in force, India’s formal notice for review has introduced uncertainty, halting key cooperative mechanisms and casting doubt on the treaty’s long-term durability,” Haq writes. Pakistan has said any attempt to disrupt its water supply under the treaty would be considered “an act of war.”

4. On the precipice of a new war?

There have been four full-scale conflicts between India and Pakistan: in 1947, 1965, 1971 and 1999.

But since the turn of the millennium, cross-border skirmishes in Kashmir have largely been contained, in part due to external pressure from the United States and others who fear the economic and regional consequences of a conflict between the nuclear-armed neighbors.

International relations expert Ian Hall, of Griffith University in Australia, writes that the calculus has changed a little. He notes that there is little economic cost to escalation, with “practically no trade between India and Pakistan.”

The main concern for both sides now is “the political cost they would suffer from not taking military action,” Hall adds.

5. The need for a Pakistan-India hotline

During past crises between Pakistan and India, Washington has played an important role in deescalating tensions.

U.S. President Donald Trump’s recent comments that he believes Pakistan and India will “figure it out one way or the other” suggests this is one occasion in which the U.S. may take a back seat.

But as Syed Ali Zia Jaffery at the University of Lahore and Nicholas John Wheeler at the University of Birmingham in the U.K. note, that creates a problem.

“The absence of a trusted confidential line of communication between the leaders of India and Pakistan is a major barrier to empathetic communication. It prevents the two reaching a proper appreciation of shared vulnerabilities that is so critical to crisis de-escalation,” they write.

Their article uses the example of the Cuban missile crisis of 1962 to tout the importance of what the two scholars describe as “empathetic channels of communication.” U.S. President John F. Kennedy and his Soviet counterpart, Nikita Khrushchev, “exchanged a series of letters in which they acknowledged and expressed their shared vulnerability to nuclear war,” Jaffery and Wheeler write. Establishing mutual empathy and a bond of trust were critical to the peaceful resolution of the crisis.

“Such a hotline between the highest levels of Indian and Pakistani diplomacy would be an important step towards preventing these crises from spinning out of control. More crucially, it could play a pivotal role in managing crises when they do occur, offering a vital channel for reassurance and de-escalation,” Jaffery and Wheeler add.

– ref. India-Pakistan strikes: 5 essential reads on decades of rivalry and tensions over Kashmir – https://theconversation.com/india-pakistan-strikes-5-essential-reads-on-decades-of-rivalry-and-tensions-over-kashmir-256157

MIL OSI – Global Reports –

May 8, 2025

Category: Politics

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Written Testimony of Dr. Charles TahanPartner, Microsoft Quantum, Microsoft Corporation

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1. The roots of the conflict

2. More than a border dispute

3. A water war?

4. On the precipice of a new war?

5. The need for a Pakistan-India hotline

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

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