Category: Taxation

MIL-OSI: CareCloud Delivers Growth and Strong Cash Flow in Q1 2025, Advances AI and Acquisition Strategy

Source: GlobeNewswire (MIL-OSI)

SOMERSET, N.J., May 06, 2025 (GLOBE NEWSWIRE) — CareCloud, Inc. (Nasdaq: CCLD, CCLDO), a leader in healthcare technology and generative AI solutions, today announced strong financial results for the three months ended March 31, 2025. CareCloud’s strategic execution, AI-driven innovation, and disciplined financial management have fueled a transformational turnaround, positioning the Company for sustained profitability and long-term growth. Management will discuss these results and the Company’s 2025 growth strategies in a live conference call today at 8:30 a.m. ET.

First Quarter 2025 Financial Highlights:

Revenue of $27.6 million, compared to $26.0 million in Q1 2024, an increase of 6% year-over-year
GAAP net income of $1.9 million, compared to a net loss of $241,000 in Q1 2024
Adjusted EBITDA of $5.6 million, compared to $3.7 million in Q1 2024, an increase of 52%
Adjusted net income of $2.3 million, or $0.05 per share
Cash balance of $6.8 million and net working capital of $11.7 million as of March 31, 2025

Recent Strategic Updates

AI Center of Excellence Launched: CareCloud launched its dedicated AI Center of Excellence, onboarding the first wave of over 50 AI professionals and aiming to scale to 500 AI specialists by fourth quarter 2025. The initiative is fully self-funded through operating cash flows.
Series A Preferred Stock Conversion Completed: Successfully converted 3.5 million Series A preferred shares into 26 million common shares, reducing the annual dividend commitment by approximately $7.7 million and strengthening cash flow and the capital structure.
Resumption of Preferred Dividends: Payments of preferred dividends resumed in February 2025.
Acquisition Strategy Reignited: Completed two strategic acquisitions in March and April 2025, with additional acquisition opportunities actively under evaluation.

Management Commentary:

“The launch of our AI Center of Excellence marks a pivotal moment in CareCloud’s evolution,” said A. Hadi Chaudhry, Co-CEO of CareCloud. “By building one of the largest dedicated healthcare AI teams globally, we believe we are creating real-world solutions to automate clinical workflows, optimize revenue cycle management, and improve patient outcomes. This initiative is intended to accelerate our operational efficiency as well as positioning CareCloud at the forefront of intelligent healthcare transformation — driving sustainable profitability and long-term growth for ourselves and the healthcare providers who use our services.”

“After record profits and a successful turnaround in 2024, we are excited to announce continued momentum and strength as we enter 2025,” said Co-CEO Stephen Snyder. “With two recent acquisitions and the launch of our AI Center of Excellence, CareCloud is not just responding to the market shift — we are intending to lead it.”

“We are pleased to announce our fourth consecutive quarter of positive GAAP net income and an increase in revenue and adjusted EBITDA year over year,” said Norman Roth, Interim CFO and Corporate Controller of CareCloud. “We have resumed paying our Preferred Stock dividends monthly out of internally-generated free cash flow, while generating additional profits and cash flow to reinvest for future growth. To date we have declared six months of Preferred Stock dividends.”

Capital

On March 31, 2025, the Company had 984,530 shares of Series A Preferred Stock and 1,511,372 shares of non-convertible Series B Preferred Stock outstanding. As of March 31, 2025, the Series A and B shares both accrued dividends at the rate of 8.75% per annum, based on the $25.00 per share liquidation preference (equivalent to $2.1875 annually per share), and they are redeemable at the Company’s option once the preferred stock dividends are brought current.

2025 Guidance: Poised for Growth

CareCloud is reconfirming its earnings guidance for 2025, expecting:

For the Fiscal Year Ending December 31, 2025 Forward-Looking Guidance
Revenue	$111 – $114 million
Adjusted EBITDA	$26 – $28 million
Net Income Per Share (EPS)	$0.10 – $0.13

The Company continues to anticipate full year 2025 revenue of approximately $111 to $114 million. Revenue guidance is based on management’s expectations regarding revenue from existing clients, organic growth in new client additions and anticipated number of small tuck-in acquisitions.

Adjusted EBITDA is expected to be $26 to $28 million for full year 2025 and reflects improvements from the Company’s cost reduction efforts. EPS is expected to be $0.10 to $0.13 for full year 2025.

Conference Call Information

CareCloud management will host a conference call today at 8:30 a.m. Eastern Time to discuss the first three months of 2025 results. The live webcast of the conference call and related presentation slides can be accessed at ir.carecloud.com/events. An audio-only option is available by dialing 201-389-0920 and referencing “CareCloud First Quarter 2025 Results Conference Call.” Investors who opt for audio-only will need to download the related slides at ir.carecloud.com/events.

A replay of the conference call and related presentation slides will be available approximately three hours after conclusion of the call at the same link. An audio-only option can also be accessed by dialing 412-317-6671 and providing the access code 13753440.

Use of Non-GAAP Financial Measures

In our earnings releases, prepared remarks, conference calls, slide presentations, and webcasts, we use and discuss non-GAAP financial measures, as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investor Relations section of our web site at ir.carecloud.com.

Forward-Looking Statements

This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “forecasts,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions.

These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, manage and keep our information systems secure and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

About CareCloud

CareCloud (Nasdaq: CCLD, CCLDO) brings disciplined innovation and generative AI solutions to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), artificial intelligence (AI), business intelligence (BI), patient experience management (PXM) and digital health, at carecloud.com.

Follow CareCloud on LinkedIn, X and Facebook.

For additional information, please visit our website at carecloud.com. To listen to video presentations by CareCloud’s management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com.

SOURCE CareCloud

Company Contact:
Norman Roth
Interim Chief Financial Officer and Corporate Controller
CareCloud, Inc.
nroth@carecloud.com

Investor Contact:
Stephen Snyder
Co-Chief Executive Officer
CareCloud, Inc.
ir@carecloud.com

CARECLOUD, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands, except share and per share amounts)

		March 31,			December 31,
		2025			2024
		(Unaudited)
ASSETS
Current assets:
Cash	$	6,805		$	5,145
Accounts receivable – net		13,887			12,774
Contract asset		4,457			4,334
Inventory		609			574
Current assets – related party		16			16
Prepaid expenses and other current assets		2,843			1,957
Total current assets		28,617			24,800
Property and equipment – net		5,323			5,290
Operating lease right-of-use assets		3,097			3,133
Intangible assets – net		16,877			18,698
Goodwill		19,186			19,186
Other assets		456			507
TOTAL ASSETS	$	73,556		$	71,614
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,951		$	4,565
Accrued compensation		2,865			1,817
Accrued expenses		5,002			4,951
Operating lease liability (current portion)		1,355			1,287
Deferred revenue (current portion)		1,297			1,212
Notes payable (current portion)		133			310
Contingent consideration (current portion)		47			–
Dividend payable		1,299			5,438
Total current liabilities		16,949			19,580
Notes payable		23			26
Contingent consideration		60			–
Operating lease liability		1,776			1,847
Deferred revenue		571			387
Total liabilities		19,379			21,840
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Preferred stock, $0.001 par value – authorized 7,000,000 shares. Series A, issued and outstanding 984,530 and 4,526,231 shares at March 31, 2025 and December 31, 2024, respectively. Series B, issued and outstanding 1,511,372 shares at March 31, 2025 and December 31, 2024.		2			6
Common stock, $0.001 par value – authorized 85,000,000 shares. Issued 43,061,928 and 16,997,035 shares at March 31, 2025 and December 31, 2024, respectively. Outstanding 42,321,129 and 16,256,236 shares at March 31, 2025 and December 31, 2024, respectively		43			17
Additional paid-in capital		123,537			121,046
Accumulated deficit		(64,682	)		(66,630	)
Accumulated other comprehensive loss		(4,061	)		(4,003	)
Less: 740,799 common shares held in treasury, at cost at March 31, 2025 and December 31, 2024		(662	)		(662	)
Total shareholders’ equity		54,177			49,774
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	73,556		$	71,614

CARECLOUD, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024
($ in thousands, except share and per share amounts)
	Three Months Ended
	March 31,
	2025			2024*
NET REVENUE	$	27,632		$	25,962
OPERATING EXPENSES:
Direct operating costs		15,464			15,177
Selling and marketing		1,131			1,770
General and administrative		4,332			3,721
Research and development		1,235			913
Depreciation and amortization		3,337			3,930
Restructuring costs		114			322
Total operating expenses		25,613			25,833
OPERATING INCOME		2,019			129
OTHER:
Interest income		42			27
Interest expense		(58	)		(365	)
Other (expense) income – net		(14	)		7
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES		1,989			(202	)
Income tax provision		41			39
NET INCOME (LOSS)	$	1,948		$	(241	)

Preferred stock dividend		2,811			1,312
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(863	)	$	(1,553	)

Net loss per common share: basic and diluted	$	(0.04	)	$	(0.10	)
Weighted-average common shares used to compute basic and diluted loss per share		23,813,943			16,014,309

* Restated to include the preferred stock dividends earned, but not declared, during the three months ended March 31, 2024.

CARECLOUD, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024
($ in thousands)

		2025			2024
OPERATING ACTIVITIES:
Net income (loss)	$	1,948		$	(241	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		3,407			4,020
Lease amortization		480			509
Deferred revenue		269			58
Provision for expected credit losses		70			37
Foreign exchange gain		(1	)		(11	)
Interest accretion		107			168
Stock-based compensation expense (benefit)		108			(708	)
Changes in operating assets and liabilities:
Accounts receivable		(1,183	)		(111	)
Contract asset		(105	)		(361	)
Inventory		(35	)		(15	)
Other assets		(908	)		–
Accounts payable and other liabilities		956			721
Net cash provided by operating activities		5,113			4,066
INVESTING ACTIVITIES:
Purchases of property and equipment		(624	)		(298	)
Capitalized software and other intangible assets		(846	)		(1,570	)
Initial payment for acquisition		(40	)		–
Net cash used in investing activities		(1,510	)		(1,868	)
FINANCING ACTIVITIES:
Preferred stock dividends paid		(1,730	)		–
Settlement of tax withholding obligations on stock issued to employees		(21	)		(151	)
Repayments of notes payable		(181	)		(223	)
Repayment of line of credit		–			(1,000	)
Net cash used in financing activities		(1,932	)		(1,374	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(11	)		(17	)
NET INCREASE IN CASH		1,660			807
CASH – Beginning of the period		5,145			3,331
CASH – End of the period	$	6,805		$	4,138
SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES:
Conversion of preferred stock and accrued dividends to common stock	$	2,435		$	–
Dividends declared, not paid	$	1,299		$	5
Purchase of prepaid insurance with assumption of note	$	–		$	96
Reclass of deposits for property and equipment placed in service	$	–		$	296
SUPPLEMENTAL INFORMATION – Cash paid during the period for:
Income taxes	$	15		$	6
Interest	$	18		$	295

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP MEASURES

The following is a reconciliation of the non-GAAP financial measures used by us to describe our financial results determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). An explanation of these measures is also included below under the heading “Explanation of Non-GAAP Financial Measures.”

While management believes that these non-GAAP financial measures provide useful supplemental information to investors regarding the underlying performance of our business operations, investors are reminded to consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies, and management may utilize other measures to illustrate performance in the future. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP.

Adjusted EBITDA to GAAP Net Income (Loss)

Set forth below is a reconciliation of our “adjusted EBITDA” to our GAAP net income (loss).

	Three Months Ended March 31,
	2025		2024
	($ in thousands)
Net revenue	$	27,632	$	25,962

GAAP net income (loss)		1,948		(241	)

Provision for income taxes		41		39
Net interest expense		16		338
Foreign exchange loss (gain) / other expense		19		(5	)
Stock-based compensation expense (benefit)		108		(708	)
Depreciation and amortization		3,337		3,930
Transaction and integration costs		12		12
Restructuring costs		114		322
Adjusted EBITDA	$	5,595	$	3,687

Non-GAAP Adjusted Operating Income to GAAP Operating Income

Set forth below is a reconciliation of our non-GAAP “adjusted operating income” and non-GAAP “adjusted operating margin” to our GAAP operating income and GAAP operating margin.

	Three Months Ended March 31,
	2025			2024
	($ in thousands)
Net revenue	$	27,632		$	25,962

GAAP net income (loss)		1,948			(241	)
Provision for income taxes		41			39
Net interest expense		16			338
Other expense (income) – net		14			(7	)
GAAP operating income		2,019			129
GAAP operating margin		7.3	%		0.5	%

Stock-based compensation expense (benefit)		108			(708	)
Amortization of purchased intangible assets		89			840
Transaction and integration costs		12			12
Restructuring costs		114			322
Non-GAAP adjusted operating income	$	2,342		$	595
Non-GAAP adjusted operating margin		8.5	%		2.3	%

Non-GAAP Adjusted Net Income to GAAP Net Income (Loss)

Set forth below is a reconciliation of our non-GAAP “adjusted net income” and non-GAAP “adjusted net income per share” to our GAAP net income (loss) and GAAP net loss per share.

	Three Months Ended March 31,
	2025		2024
	($ in thousands)
GAAP net income (loss)	$	1,948	$	(241	)

Foreign exchange loss (gain) / other expense		19		(5	)
Stock-based compensation expense (benefit)		108		(708	)
Amortization of purchased intangible assets		89		840
Transaction and integration costs		12		12
Restructuring costs		114		322
Non-GAAP adjusted net income	$	2,290	$	220

End-of-period common shares		42,321,129		16,118,492

Non-GAAP adjusted net income per share	$	0.05	$	0.01

For purposes of determining non-GAAP adjusted net income per share, we used the number of common shares outstanding as of March 31, 2025 and 2024.

	Three Months Ended March 31,
	2025			2024
GAAP net loss attributable to common shareholders, per share	$	(0.04	)	$	(0.10	)
Impact of preferred stock dividend		0.09			0.08
Net income (loss) per end-of-period share		0.05			(0.02	)

Foreign exchange loss (gain) / other expense		0.00			0.00
Stock-based compensation expense (benefit)		0.00			(0.04	)
Amortization of purchased intangible assets		0.00			0.05
Transaction and integration costs		0.00			0.00
Restructuring costs		0.00			0.02
Non-GAAP adjusted earnings per share	$	0.05		$	0.01

Net cash provided by operating activities to free cash flow

Set forth below is a reconciliation of our non-GAAP “free cash flow” to our GAAP net cash provided by operating activities.

	Three Months Ended March 31,
	2025			2024
	($ in thousands)
Net cash provided by operating activities	$	5,113		$	4,066

Purchases of property and equipment		(624	)		(298	)
Capitalized software and other intangible assets		(846	)		(1,570	)
Free cash flow	$	3,643		$	2,198

Net cash used in investing activities ¹	$	(1,510	)	$	(1,868	)
Net cash used in financing activities	$	(1,932	)	$	(1,374	)

¹ Net cash used in investing activities includes purchases of property and equipment and capitalized software and other intangible assets, which are also included in our computation of free cash flow.

Explanation of Non-GAAP Financial Measures

We report our financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, management believes that, in order to properly understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in frequency and impact on continuing operations. Management also uses results of operations before such items to evaluate the operating performance of CareCloud and compare it against past periods, make operating decisions, and serve as a basis for strategic planning. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts. Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.

Management uses adjusted EBITDA, adjusted operating income, adjusted operating margin, and non-GAAP adjusted net income to provide an understanding of aspects of operating results before the impact of investing and financing charges and income taxes. Adjusted EBITDA may be useful to an investor in evaluating our operating performance and liquidity because this measure excludes non-cash expenses as well as expenses pertaining to investing or financing transactions. Management defines “adjusted EBITDA” as the sum of GAAP net income (loss) before provision for income taxes, net interest expense, foreign exchange loss (gain) / other expense, stock-based compensation expense (benefit), depreciation and amortization, transaction and integration costs, and restructuring costs.

Management defines “non-GAAP adjusted operating income” as the sum of GAAP operating income before stock-based compensation expense (benefit), amortization of purchased intangible assets, transaction and integration costs, and restructuring costs, and “non-GAAP adjusted operating margin” as non-GAAP adjusted operating income divided by net revenue.

Management defines “non-GAAP adjusted net income” as the sum of GAAP net income (loss) before foreign exchange loss (gain) / other expense, stock-based compensation expense (benefit), amortization of purchased intangible assets, transaction and integration costs, and restructuring costs, and “non-GAAP adjusted net income per share” as non-GAAP adjusted net income divided by common shares outstanding at the end of the period.

Management defines “free cash flow” as the sum of net cash provided by operating activities less cash used for purchases of property and equipment and cash used to develop capitalized software and other intangible assets.

Management considers all of these non-GAAP financial measures to be important indicators of our operational strength and performance of our business and a good measure of our historical operating trends, in particular the extent to which ongoing operations impact our overall financial performance.

In addition to items routinely excluded from non-GAAP EBITDA, management excludes or adjusts each of the items identified below from the applicable non-GAAP financial measure referenced above for the reasons set forth with respect to that excluded item:

Foreign exchange loss (gain) / other expense. Other expense is excluded because foreign currency gains and losses and other non-operating expenses are expenditures that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expense is partially outside of our control. Foreign currency gains and losses are based on global market factors which are unrelated to our performance during the period in which the gains and losses are recorded.

Stock-based compensation expense (benefit). Stock-based compensation expense (benefit) is excluded because this is primarily a non-cash expenditure that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expenditure is partially outside of our control because it is based on factors such as stock price, volatility, and interest rates, which may be unrelated to our performance during the period in which the expenses are incurred. Stock-based compensation expense includes cash-settled awards based on changes in the stock price.

Amortization of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are recorded.

Transaction costs. Transaction costs are upfront costs related to acquisitions and related transactions, such as brokerage fees, pre-acquisition accounting costs and legal fees, and other upfront costs related to specific transactions. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.

Integration costs. Integration costs are severance payments for certain employees relating to our acquisitions and exit costs related to terminating leases and other contractual agreements. Accordingly, management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.

Restructuring costs. Restructuring costs primarily consist of severance and separation costs associated with the optimization of the Company’s operations and profitability improvements. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.

Free cash flow. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company’s financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net operating results as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, the Company’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our condensed consolidated statements of cash flows.

MIL-OSI: Cipher Mining Provides First Quarter 2025 Business Update

Source: GlobeNewswire (MIL-OSI)

First Quarter 2025 Revenue of $49m, up 16% quarter over quarter

Signed term sheet with Fortress Credit Advisors to serve as the JV financing partner at Barber Lake

Nearing completion of 150 MW Phase I infrastructure at Black Pearl

First Quarter 2025 GAAP Net Loss of $39m, and Non-GAAP Adjusted Earnings of $6m

NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) — Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today announced its first quarter 2025 financial results, with an update on its operations and business strategy.

“The first quarter was marked by disciplined execution and steady progress as we advanced our 2025 expansion plans,” said Tyler Page, CEO. “Notably, we’re thrilled to have partnered with Fortress, a best-in-class financing partner, to develop a next-generation data center at Barber Lake. Fortress will not only bring extensive experience in data center development, but also a strong network of relationships with hyperscalers that complements our active discussions.”

Over the quarter, Cipher also made substantial progress on expanding its mining footprint, with rig deployment at Black Pearl anticipated ahead of schedule.

Mr. Page added, “We are nearing completion of the Black Pearl Data Center’s Phase I core and shell, and all four substation transformers are now onsite. Given the accelerated progress and expected energization in May, we’ve decided to immediately deploy rigs from inventory at the newly constructed site while we await the arrival of new machines expected later this summer. This strategic decision will bring approximately 2.5 exahashes per second online one quarter earlier than anticipated through the efficient use of idle assets at no additional capital expenditure to the company.”

This redeployment will bring Cipher to ~16.0 EH/s by the end of the second quarter, with expectations to scale to ~23.1 EH/s by the end of the third quarter, as the Company continues to monitor the tariff landscape and new rig delivery schedules come into focus.

“Cipher’s strong treasury management, disciplined approach to growth, and site flexibility continue to give me confidence in our ability to navigate a dynamic market environment and drive long-term success,” said Mr. Page.

Finance and Operations Highlights

Completed first full quarter of operations with the upgraded Odessa fleet, which increased Cipher’s total self-mining hashrate to ~13.5 EH/s
Signed term sheet with Fortress Credit Advisors LLC to serve as the JV financing partner at Barber Lake
Infrastructure at Black Pearl Phase I nearing completion, with energization expected ahead of schedule
Continued HPC tenant momentum at Barber Lake site with multiple tenants under NDA and performing due diligence
Pipeline of 2.8 GW of site capacity
Q1 2025 net loss of $39 million, or $0.11 per diluted share, and adjusted earnings of $6 million, or $0.02 per diluted share

Business Update Call and Webcast

The live webcast and a webcast replay of the conference call can be accessed from the investor relations section of Cipher’s website at https://investors.ciphermining.com/. To access this conference call by telephone, register here to receive dial-in numbers and a unique PIN to join the call.

About Cipher

Cipher is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction and as a hosting partner to the world’s largest HPC companies. To learn more about Cipher, please visit https://www.ciphermining.com/.

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, such as, statements about the Company’s beliefs and expectations regarding its future results of operations and financial position, its planned business model and strategy, its bitcoin mining and HPC data center development, timing and likelihood of success, capacity, functionality and timing of operation of data centers, expectations regarding the operations of data centers, potential strategic initiatives, such as joint ventures and partnerships, and management plans and objectives, are forward-looking statements and should be evaluated as such. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and its management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, Cipher’s evolving business model and strategy and efforts it may make to modify aspects of its business model or engage in various strategic initiatives, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Cipher’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission (“SEC”) on February 25, 2025, and in Cipher’s subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Website Disclosure

The company maintains a dedicated investor website at https://investors.ciphermining.com/investors (“Investors’ Website”). Financial and other important information regarding the Company is routinely posted on and accessible through the Investors Website. Cipher uses its Investors’ Website as a distribution channel of material information about the Company, including through press releases, investor presentations, reports and notices of upcoming events. Cipher intends to utilize its Investors’ Website as a channel of distribution to reach public investors and as a means of disclosing material non-public information for complying with disclosure obligations under Regulation FD. In addition, you may sign up to automatically receive email alerts and other information about the Company by visiting the “Email Alerts” option under the Investors Resources section of Cipher’s Investors’ Website and submitting your email address.

Non-GAAP Financial Measures

This press release includes supplemental financial measures for Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per share – diluted, in each case that exclude the impact of (i) the non-cash change in fair value of derivative asset, (ii) share-based compensation expense, (iii) depreciation and amortization, (iv) deferred income tax expense, (v) nonrecurring gains and losses and (vi) the non-cash change in fair value of warrant liability. These supplemental financial measures are not measurements of financial performance under accounting principles generally accepted in the United Stated (“GAAP”) and, as a result, these supplemental financial measures may not be comparable to similarly titled measures of other companies. Management uses these non-GAAP financial measures internally to help understand, manage, and evaluate our business performance and to help make operating decisions. We believe the use of these non-GAAP financial measures can also facilitate comparison of our operating results to those of our competitors by excluding certain items that vary in our industry based on company policy.

Non-GAAP financial measures are subject to material limitations as they are not in accordance with, or a substitute for, measurements prepared in accordance with GAAP. For example, we expect that share-based compensation expense, which is excluded from the non-GAAP financial measure, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers and directors. Similarly, we expect that depreciation and amortization will continue to be a recurring expense over the term of the useful life of the related assets. Our non-GAAP financial measures are not meant to be considered in isolation and should be read only in conjunction with our condensed consolidated financial statements included elsewhere in this press release, which have been prepared in accordance with GAAP. We rely primarily on such condensed consolidated financial statements to understand, manage and evaluate our business performance and use the non-GAAP financial measures only supplementally.

Contacts:
Investor Contact:
Courtney Knight
Head of Investor Relations at Cipher Mining
Courtney.knight@ciphermining.com

Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.com

CIPHER MINING INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except for share and per share amounts) (unaudited)
	March 31, 2025			December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	23,173		$	5,585
Accounts receivable		758			596
Receivables, related party		300			2,090
Prepaid expenses and other current assets		2,970			3,387
Bitcoin		52,024			92,651
Receivable for bitcoin collateral		32,497			32,248
Derivative asset		42,835			31,648
Total current assets		154,557			168,205
Restricted cash		14,392			14,392
Property and equipment, net		477,972			480,865
Deposits on equipment		122,502			38,872
Intangible assets, net		9,043			8,881
Investment in equity investees		48,499			53,908
Derivative asset		50,165			54,022
Operating lease right-of-use asset		12,192			12,561
Security deposits		19,776			19,782
Other noncurrent assets		4,694			3,958
Total assets	$	913,792		$	855,446
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	29,879		$	22,699
Accrued expenses and other current liabilities		66,300			69,824
Finance lease liability, current portion		3,903			3,798
Operating lease liability, current portion		3,200			3,127
Short-term borrowings		35,459			32,330
Total current liabilities		138,741			131,778
Asset retirement obligations		20,801			20,282
Finance lease liability		6,315			7,331
Operating lease liability		9,506			9,833
Deferred tax liability		3,634			4,269
Total liabilities		178,997			173,493
Commitments and contingencies (Note 13)
Stockholders’ equity
Preferred stock, $0.001 par value; 10,000,000 shares authorized, none issued and outstanding as of March 31, 2025, and December 31, 2024		–			–
Common stock, $0.001 par value, 500,000,000 shares authorized, 371,313,598 and 361,432,449 shares issued as of March 31, 2025 and December 31, 2024, respectively, and 370,857,699 and 350,783,817 shares outstanding as of March 31, 2025, and December 31, 2024, respectively		371			361
Additional paid-in capital		954,812			863,015
Accumulated deficit		(220,387	)		(181,412	)
Treasury stock, at par, 455,899 and 10,648,632 shares at March 31, 2025 and December 31, 2024, respectively		(1	)		(11	)
Total stockholders’ equity		734,795			681,953
Total liabilities and stockholders’ equity	$	913,792		$	855,446

CIPHER MINING INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except for share and per share amounts) (unaudited)
	Three Months Ended March 31,
		2025			2024
Revenue – bitcoin mining	$	48,959		$	48,137
Costs and operating (expenses) income
Cost of revenue		(14,894	)		(14,820	)
Compensation and benefits		(14,303	)		(13,036	)
General and administrative		(8,951	)		(6,077	)
Depreciation and amortization		(43,467	)		(17,244	)
Change in fair value of derivative asset		7,330			7,359
Power sales		991			1,173
Equity in income (losses) of equity investees		(5,292	)		738
Unrealized (losses) gains on fair value of bitcoin		(20,178	)		40,556
Realized gains on sale of bitcoin		12,196			–
Other gains		(479	)		–
Total costs and operating expenses		(87,047	)		(1,351	)
Operating (loss) income		(38,088	)		46,786
Other income (expense)
Interest income		190			786
Interest expense		(777	)		(400	)
Change in fair value of warrant liability		–			250
Other expense		(156	)		(1,958	)
Total other expense		(743	)		(1,322	)
(Loss) income before taxes		(38,831	)		45,464
Current income tax expense		(779	)		(386	)
Deferred income tax benefit (expense)		635			(5,178	)
Total income tax expense		(144	)		(5,564	)
Net (loss) income	$	(38,975	)	$	39,900
(Loss) income per share – basic and diluted	$	(0.11	)	$	0.13
Weighted average shares outstanding – basic		360,514,620			296,641,499
Weighted average shares outstanding – diluted		360,514,620			304,397,979

Non-GAAP Financial Measures

The following are reconciliations of our Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per share – diluted, in each case excluding the impact of (i) the non-cash change in fair value of derivative asset, (ii) share-based compensation expense, (iii) depreciation and amortization, (iv) deferred income tax expense, (v) nonrecurring gains and losses and (vi) the non-cash change in fair value of warrant liability, to the most directly comparable GAAP measures for the periods indicated (in thousands, except for per share amounts):

	Three Months Ended March 31,
		2025			2024
Reconciliation of Adjusted Earnings:
Net (loss) income	$	(38,975	)	$	39,900
Change in fair value of derivative asset		(7,330	)		(7,359	)
Share-based compensation expense		9,132			8,317
Depreciation and amortization		43,467			17,244
Deferred income tax (benefit) expense		(635	)		5,178
Other losses – nonrecurring		479			–
Change in fair value of warrant liability		–			(250	)
Adjusted (loss) earnings	$	6,138		$	63,030


	Three Months Ended March 31,
		2025			2024
Reconciliation of Adjusted Earnings per share – diluted:
Net (loss) income per share – diluted	$	(0.11	)	$	0.13
Change in fair value of derivative asset per diluted share		(0.02	)		(0.03	)
Share-based compensation expense per diluted share		0.03			0.03
Depreciation and amortization per diluted share		0.12			0.06
Deferred income tax (benefit) expense per diluted share		—			0.02
Other losses – nonrecurring per diluted share		—			—
Change in fair value of warrant liability per diluted share		—			—
Adjusted (loss) earnings per diluted share	$	0.02		$	0.21

MIL-OSI: Datadog Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

First quarter revenue grew 25% year-over-year to $762 million

Robust growth of larger customers, with about 3,770 $100k+ ARR customers, up from about 3,340 a year ago

Announced 2025 DASH user conference, June 10-11, in New York City

NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) — Datadog, Inc. (NASDAQ:DDOG), the monitoring and security platform for cloud applications, today announced financial results for its first quarter ended March 31, 2025.

“Datadog executed solidly in the first quarter, with 25% year-over-year revenue growth, $272 million in operating cash flow, and $244 million in free cash flow,” said Olivier Pomel, co-founder and CEO of Datadog.

Pomel added, “We are innovating rapidly across the Datadog platform, to help customers observe, secure, and act to solve mission-critical business problems in their modern, cloud environments.”

First Quarter 2025 Financial Highlights:

Revenue was $762 million, an increase of 25% year-over-year.
GAAP operating loss was $(12) million; GAAP operating margin was (2)%.
Non-GAAP operating income was $167 million; non-GAAP operating margin was 22%.
GAAP net income per diluted share was $0.07; non-GAAP net income per diluted share was $0.46.
Operating cash flow was $272 million, with free cash flow of $244 million.
Cash, cash equivalents, and marketable securities were $4.4 billion as of March 31, 2025.

First Quarter & Recent Business Highlights:

As of March 31, 2025, we had about 3,770 customers with ARR of $100,000 or more, an increase of 13% from about 3,340 as of March 31, 2024.
Acquired Eppo, a feature flagging and experimentation platform, which will tightly integrate with Datadog’s existing Product Analytics suite.
Released the new report, State of DevSecOps 2025, which found that only a fraction of critical vulnerabilities are truly worth prioritizing.
Acquired Metaplane, an end-to-end data observability platform that provides advanced machine learning-powered monitoring and column-level lineage to prevent, detect and resolve data quality issues across a company’s entire data stack.
Named a Leader in The Forrester Wave™: AIOps Platforms, Q2 2025. Datadog’s AIOps solutions include Bits AI, Watchdog and Event Management.
Highlighted multiple recent product launches at Google Cloud Next, including expanded monitoring capabilities for BigQuery.
Announced plans for a new data center to be located in Australia. The data center instance will be Datadog’s first in Australia and adds to existing locations in North America, Asia, and Europe.
Opened registration for DASH, Datadog’s eighth annual global conference for CIOs, CISOs, developers, SREs, and security and operations professionals, to build and scale the next generation of applications, infrastructure, security, GenAI and teams. The conference will take place June 10-11, 2025 at North Javits Center in New York City.

Second Quarter and Full Year 2025 Outlook:

Based on information as of today, May 6, 2025, Datadog is providing the following guidance:

Second Quarter 2025 Outlook:
- Revenue between $787 million and $791 million.
- Non-GAAP operating income between $148 million and $152 million.
- Non-GAAP net income per share between $0.40 and $0.42, assuming approximately 361 million weighted average diluted shares outstanding.
Full Year 2025 Outlook:
- Revenue between $3.215 billion and $3.235 billion.
- Non-GAAP operating income between $625 million and $645 million.
- Non-GAAP net income per share between $1.67 and $1.71, assuming approximately 362 million weighted average diluted shares outstanding.

Datadog has not reconciled its expectations as to non-GAAP operating income, or as to non-GAAP net income per share, to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation and employer payroll taxes on equity incentive plans. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Datadog’s results computed in accordance with GAAP.

Conference Call Details:

What: Datadog financial results for the first quarter of 2025 and outlook for the second quarter and the full year 2025
When: May 6, 2025 at 8:00 A.M. Eastern Time (5:00 A.M. Pacific Time)
Dial in: To access the call in the U.S., please register here. Callers are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.
Webcast: https://investors.datadoghq.com (live and replay)
Replay: A replay of the call will be archived on the investor relations website

About Datadog

Datadog is the observability and security platform for cloud applications. Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and many other capabilities to provide unified, real-time observability and security for our customers’ entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior, and track key business metrics.

Forward-Looking Statements

This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Datadog’s strategy, product and platform capabilities, the growth in and ability to capitalize on long-term market opportunities including the pace and scope of cloud migration and digital transformation, gross margins and operating margins including with respect to third-party cloud infrastructure hosting costs, sales and marketing, research and development expenses, net interest and other income, cash taxes, investments and capital expenditures, and Datadog’s future financial performance, including its outlook for the second quarter and the full year 2025 and related notes and assumptions. These forward-looking statements are based on Datadog’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Datadog’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to (1) our recent rapid growth may not be indicative of our future growth; (2) our history of operating losses; (3) our limited operating history; (4) our dependence on existing customers purchasing additional subscriptions and products from us and renewing their subscriptions; (5) our ability to attract new customers; (6) our ability to effectively develop and expand our sales and marketing capabilities; (7) risk of a security breach; (8) risk of interruptions or performance problems associated with our products and platform capabilities; (9) our ability to adapt and respond to rapidly changing technology or customer needs; (10) the competitive markets in which we participate; (11) risks associated with successfully managing our growth; and (12) general market, political, economic, and business conditions including concerns about trade policies, tariffs, reduced economic growth and associated decreases in information technology spending. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (SEC), including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 20, 2025. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and other filings and reports that we may file from time to time with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. 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, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.

About Non-GAAP Financial Measures

Datadog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, non-GAAP net income (loss) per basic share, free cash flow and free cash flow margin. Datadog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Datadog’s financial performance. Datadog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. Datadog’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Datadog’s reported financial results.

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

Datadog defines non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) employer payroll taxes on employee stock transactions; (4) amortization of issuance costs; and (5) an assumed provision for income taxes based on our long-term projected tax rate. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in Datadog’s geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate. Datadog defines free cash flow as net cash provided by operating activities, minus capital expenditures and minus capitalized software development costs, if any. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

Management believes these non-GAAP financial measures are useful to investors and others in assessing Datadog’s operating performance due to the following factors:

Stock-based compensation. Datadog utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Amortization of acquired intangibles. Datadog views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of acquired intangibles is an expense that is not typically affected by operations during any particular period.

Employer payroll taxes on employee stock transactions. Datadog excludes employer payroll tax expense on equity incentive plans as these expenses are tied to the exercise or vesting of underlying equity awards and the price of Datadog’s common stock at the time of vesting or exercise. As a result, these taxes may vary in any particular period independent of the financial and operating performance of Datadog’s business.

Amortization of issuance costs. In June 2020 and December 2024, Datadog issued $747.5 million of 0.125% convertible senior notes due 2025 and $1.0 billion of 0% convertible senior notes due 2029, respectively. Debt issuance costs, which reduce the carrying value of the convertible debt instrument, are amortized as interest expense over the term. The expense for the amortization of debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

Additionally, Datadog’s management believes that the non-GAAP financial measure free cash flow is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business. Free cash flow represents net cash provided by operating activities, reduced by capital expenditures and capitalized software development costs, if any. The reduction of capital expenditures and amounts capitalized for software development facilitates comparisons of Datadog’s liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of our liquidity.

Operating Metrics

Datadog’s number of customers with ARR of $100,000 or more is based on the ARR of each customer, as of the last month of the quarter.

We define the number of customers as the number of accounts with a unique account identifier for which we have an active subscription in the period indicated. Users of our free trials or tier are not included in our customer count. A single organization with multiple divisions, segments or subsidiaries is generally counted as a single customer. However, in some cases where they have separate billing terms, we may count separate divisions, segments or subsidiaries as multiple customers.

We define ARR as the annualized revenue run-rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue, or MRR, and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts, additional usage, usage from subscriptions for a committed contractual amount of usage that is delivered as used, and monthly subscriptions. ARR and MRR should be viewed independently of revenue, and do not represent our revenue under GAAP on a monthly or annualized basis, as they are operating metrics that can be impacted by contract start and end dates and renewal rates. ARR and MRR are not intended to be replacements or forecasts of revenue.


Datadog, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data; unaudited)

	Three Months Ended March 31,
		2025			2024
Revenue	$	761,553		$	611,253
Cost of revenue ^(1)(2)(3)		157,628			110,098
Gross profit		603,925			501,155
Operating expenses:
Research and development ⁽¹⁾⁽³⁾		341,061			269,988
Sales and marketing ^(1)(2)(3)		214,291			173,881
General and administrative ⁽¹⁾⁽³⁾		60,993			45,290
Total operating expenses		616,345			489,159
Operating (loss) income		(12,420	)		11,996
Other income:
Interest expense ⁽⁴⁾		(2,963	)		(1,374	)
Interest income and other income, net		47,179			35,563
Other income, net		44,216			34,189
Income before provision for income taxes		31,796			46,185
Provision for income taxes		7,154			3,554
Net income	$	24,642		$	42,631
Net income per share – basic	$	0.07		$	0.13
Net income per share – diluted	$	0.07		$	0.12
Weighted average shares used in calculating net income per share:
Basic		343,097			331,806
Diluted		363,078			355,979

(1) Includes stock-based compensation expense as follows:
Cost of revenue	$	6,651	$	5,527
Research and development		105,735		88,413
Sales and marketing		34,125		28,531
General and administrative		17,754		12,562
Total	$	164,265	$	135,033

(2) Includes amortization of acquired intangibles as follows:
Cost of revenue	$	894	$	2,027
Sales and marketing		203		205
Total	$	1,097	$	2,232

(3) Includes employer payroll taxes on employee stock transactions as follows:
Cost of revenue	$	186	$	192
Research and development		9,582		10,819
Sales and marketing		1,570		2,153
General and administrative		2,225		2,057
Total	$	13,563	$	15,221

(4) Includes amortization of issuance costs as follows:
Interest expense	$	1,819	$	850
Total	$	1,819	$	850

Datadog, Inc.
Condensed Consolidated Balance Sheets
(In thousands; unaudited)

	March 31, 2025		December 31, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,079,854	$	1,246,983
Marketable securities		3,369,820		2,942,076
Accounts receivable, net of allowance for credit losses of $17,707 and $16,302 as of March 31, 2025 and December 31, 2024, respectively		490,172		598,919
Deferred contract costs, current		58,832		56,095
Prepaid expenses and other current assets		77,660		67,042
Total current assets		5,076,338		4,911,115
Property and equipment, net		249,916		226,970
Operating lease assets		203,074		172,512
Goodwill		361,738		360,381
Intangible assets, net		2,626		3,711
Deferred contract costs, non-current		90,501		86,573
Other assets		26,188		24,077
TOTAL ASSETS	$	6,010,381	$	5,785,339
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	98,442	$	107,731
Accrued expenses and other current liabilities		138,238		127,136
Operating lease liabilities, current		34,228		31,970
Convertible senior notes, net, current		634,780		634,023
Deferred revenue, current		949,135		961,853
Total current liabilities		1,854,823		1,862,713
Operating lease liabilities, non-current		227,974		196,905
Convertible senior notes, net, non-current		980,314		979,282
Deferred revenue, non-current		21,560		22,693
Other liabilities		9,036		9,383
Total liabilities		3,093,707		3,070,976
STOCKHOLDERS’ EQUITY:
Common stock		3		3
Additional paid-in capital		2,860,643		2,689,013
Accumulated other comprehensive income (loss)		1,338		(4,701	)
Retained earnings		54,690		30,048
Total stockholders’ equity		2,916,674		2,714,363
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	6,010,381	$	5,785,339

Datadog, Inc.
Condensed Consolidated Statements of Cash Flow
(In thousands; unaudited)

	Three Months Ended March 31,
		2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	24,642		$	42,631
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		11,255			12,895
Accretion of discounts on marketable securities		(10,370	)		(14,126	)
Amortization of issuance costs		1,819			850
Amortization of deferred contract costs		14,853			11,844
Stock-based compensation, net of amounts capitalized		164,265			135,033
Non-cash lease expense		8,389			6,810
Allowance for credit losses on accounts receivable		4,520			2,732
(Gain) loss on disposal of property and equipment		(145	)		43
Changes in operating assets and liabilities:
Accounts receivable, net		104,227			55,490
Deferred contract costs		(21,519	)		(12,636	)
Prepaid expenses and other current assets		(10,263	)		(14,075	)
Other assets		(1,217	)		2,614
Accounts payable		(10,712	)		(17,122	)
Accrued expenses and other liabilities		5,648			(7,433	)
Deferred revenue		(13,851	)		6,720
Net cash provided by operating activities		271,541			212,270
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities		(970,302	)		(637,351	)
Maturities of marketable securities		555,938			401,666
Proceeds from sale of marketable securities		(76	)		—
Purchases of property and equipment		(8,748	)		(14,158	)
Capitalized software development costs		(18,402	)		(11,365	)
Cash paid for acquisition of businesses; net of cash acquired		(1,818	)		—
Net cash used in investing activities		(443,408	)		(261,208	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		1,673			2,191
Repayments of 2025 Convertible Senior Notes		(20	)		—
Net cash provided by financing activities		1,653			2,191

Effect of exchange rate changes on cash and cash equivalents		3,085			(1,374	)

NET DECREASE IN CASH AND CASH EQUIVALENTS		(167,129	)		(48,121	)
CASH AND CASH EQUIVALENTS—Beginning of period		1,246,983			330,339
CASH AND CASH EQUIVALENTS—End of period	$	1,079,854		$	282,218

Datadog, Inc.
Reconciliation from GAAP to Non-GAAP Results
(In thousands, except per share data; unaudited)

	Three Months Ended March 31,
		2025			2024
Reconciliation of gross profit and gross margin
GAAP gross profit	$	603,925		$	501,155
Plus: Stock-based compensation expense		6,651			5,527
Plus: Amortization of acquired intangibles		894			2,027
Plus: Employer payroll taxes on employee stock transactions		186			192
Non-GAAP gross profit	$	611,656		$	508,901
GAAP gross margin		79	%		82	%
Non-GAAP gross margin		80	%		83	%

Reconciliation of operating expenses
GAAP research and development	$	341,061		$	269,988
Less: Stock-based compensation expense		(105,735	)		(88,413	)
Less: Employer payroll taxes on employee stock transactions		(9,582	)		(10,819	)
Non-GAAP research and development	$	225,744		$	170,756

GAAP sales and marketing	$	214,291		$	173,881
Less: Stock-based compensation expense		(34,125	)		(28,531	)
Less: Amortization of acquired intangibles		(203	)		(205	)
Less: Employer payroll taxes on employee stock transactions		(1,570	)		(2,153	)
Non-GAAP sales and marketing	$	178,393		$	142,992

GAAP general and administrative	$	60,993		$	45,290
Less: Stock-based compensation expense		(17,754	)		(12,562	)
Less: Employer payroll taxes on employee stock transactions		(2,225	)		(2,057	)
Non-GAAP general and administrative	$	41,014		$	30,671

Reconciliation of operating (loss) income and operating margin
GAAP operating (loss) income	$	(12,420	)	$	11,996
Plus: Stock-based compensation expense		164,265			135,033
Plus: Amortization of acquired intangibles		1,097			2,232
Plus: Employer payroll taxes on employee stock transactions		13,563			15,221
Non-GAAP operating income	$	166,505		$	164,482
GAAP operating margin		(2	)%		2	%
Non-GAAP operating margin		22	%		27	%

Datadog, Inc.
Reconciliation from GAAP to Non-GAAP Results
(In thousands, except per share data; unaudited)

	Three Months Ended March 31,
		2025		2024
Reconciliation of net income (loss)
GAAP net income (loss)	$	24,642	$	42,631
Plus: Stock-based compensation expense		164,265		135,033
Plus: Amortization of acquired intangibles		1,097		2,232
Plus: Employer payroll taxes on employee stock transactions		13,563		15,221
Plus: Amortization of issuance costs		1,819		850
Non-GAAP net income before non-GAAP tax adjustments	$	205,386	$	195,967
Income tax effects and adjustments ⁽¹⁾		37,479		38,345
Non-GAAP net income after non-GAAP tax adjustments	$	167,907	$	157,622
Net income per share before non-GAAP tax adjustments – basic	$	0.60	$	0.59
Net income per share before non-GAAP tax adjustments – diluted	$	0.57	$	0.55

Net income per share after non-GAAP tax adjustments – basic	$	0.49	$	0.48
Net income per share after non-GAAP tax adjustments – diluted	$	0.46	$	0.44

Shares used in non-GAAP net income per share calculations:
Basic		343,097		331,806
Diluted		363,078		355,979
___________________
1) Non-GAAP financial information for the periods shown are adjusted for an assumed provision for income taxes based on our long-term projected tax rate of 21%. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.

Datadog, Inc.
Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow
(In thousands; unaudited)

	Three Months Ended March 31,
		2025			2024
Net cash provided by operating activities	$	271,541		$	212,270
Less: Purchases of property and equipment		(8,748	)		(14,158	)
Less: Capitalized software development costs		(18,402	)		(11,365	)
Free cash flow	$	244,391		$	186,747
Free cash flow margin		32	%		31	%

Contact Information
Yuka Broderick
Datadog Investor Relations
IR@datadoghq.com

Dan Haggerty
Datadog Public Relations
Press@datadoghq.com

Datadog is a registered trademark of Datadog, Inc.
All product and company names herein may be trademarks of their registered owners.

MIL-OSI: Willis Lease Finance Corporation Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Delivers Pre-Tax Income of $25.3 Million and Record Quarterly Revenue of $157.7 Million

Declares Second Quarter 2025 Dividend of $0.25 Per Share

COCONUT CREEK, Fla., May 06, 2025 (GLOBE NEWSWIRE) — Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”), the leading lessor of commercial aircraft engines and global provider of aviation services, today announced its financial results for the first quarter ended March 31, 2025. The Company also announced a quarterly dividend of $0.25 per share, payable on May 22, 2025, to shareholders of record as of the close of business on May 12, 2025.

First Quarter 2025 Highlights (All metrics compared to first quarter 2024, except where noted)

Total, record, quarterly revenues of $157.7 million, an increase of 32.5%
Solid quarterly pre-tax income of $25.3 million
Lease rent revenue of $67.7 million, an increase of 28.1%
Maintenance reserve revenue of $54.9 million, an increase of 25.0%
Spare parts and equipment sales of $18.2 million, compared to $3.3 million
Portfolio utilization increased to 86.4% at quarter end, compared to 76.7% at year end 2024

For the three months ended March 31, 2025, total revenue was $157.7 million, up 32.5% as compared to $119.1 million for the same period in 2024. For the first quarter of 2025, core lease rent and maintenance reserve revenues were $122.6 million in the aggregate, up 27% as compared to $96.8 million for the same period in 2024. The growth was predominantly driven by core, recurring lease and maintenance revenues associated with the continued strength of the aviation marketplace, as airlines leverage the Company’s leasing, parts and maintenance capabilities to avoid protracted, expensive engine shop visits.

“WLFC’s strong first quarter 2025 financial results reflect the strength in our business model, which enables us to provide advanced and efficient solutions to airlines,” said Austin C. Willis, Chief Executive Officer of WLFC. “While concerns over tariffs have created market volatility, we remain confident in the drivers of our business. The cost of new engines continues to drive operators towards leasing, and our maintenance capabilities and programs provide value and certainty for cost conscious airlines.”

First Quarter 2025 Operating Results

Maintenance reserve revenue for the quarter ended March 31, 2025, was $54.9 million, compared to $43.9 million for the quarter ended March 31, 2024, reflecting the increased size of the Company’s lease portfolio and leases on short-term lease conditions.

Engines on lease with “non-reimbursable” usage fees generated $45.3 million of short-term maintenance revenues for the quarter ended March 31, 2025, compared to $37.6 million for the quarter ended March 31, 2024.

During the first quarter of 2025, the Company recognized $9.6 million of long-term maintenance revenue, compared to $6.3 million for the quarter ended March 31, 2024. Long-term maintenance revenue is recognized at the end of a lease period as the related maintenance reserve liability is released from the balance sheet.

Spare parts and equipment sales increased to $18.2 million for the quarter ended March 31, 2025, compared to $3.3 million for the quarter ended March 31, 2024. The year-over-year increase in spare parts sales reflects the heightened demand for surplus material as operators extend the lives of their current generation engine portfolios. The increase was influenced by a discrete $7.0 million sale. Equipment sales for the three months ended March 31, 2025, were $2.2 million for the sale of one engine. There were no equipment sales for the three months ended March 31, 2024.

For the quarter ended March 31, 2025, the gain on sale of leased equipment was $4.4 million, reflecting the sale of seven engines, one airframe, and other parts and equipment from the lease portfolio. During the three months ended March 31, 2024, the Company sold eight engines and other parts and equipment for a net gain of $9.2 million.

General and administrative expenses were influenced by an $11.4 million increase in consultant-related fees predominantly related to the Company’s sustainable aviation fuel project. As the project is in its early design stage, we have expensed the related costs, which is in line with accounting principles generally accepted in the United States (“GAAP”).

The book value of lease assets owned either directly or through WLFC’s joint ventures, inclusive of the Company’s equipment held for operating lease, maintenance rights, notes receivable, and investments in sales-type leases was $3,219.9 million as of March 31, 2025.

Balance Sheet

As of March 31, 2025, the Company’s lease portfolio was $2,819.5 million, consisting of $2,597.8 million of equipment held in its operating lease portfolio, $179.3 million of notes receivable, $25.2 million of maintenance rights, and $17.3 million of investments in sales-type leases, which represented 347 engines, 15 aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2024, the Company’s lease portfolio was $2,872.3 million, consisting of $2,635.9 million of equipment held in its operating lease portfolio, $183.6 million of notes receivable, $31.1 million of maintenance rights, and $21.6 million of investments in sales-type leases, which represented 354 engines, 16 aircraft, one marine vessel and other leased parts and equipment.

Conference Call

WLFC will hold a conference call today at 10:00 a.m. Eastern Daylight Time to discuss its first quarter 2025 results. To participate in the conference call or webcast, please use the following dial-in numbers or visit the webcast link.

U.S. and Canada: +1 (800) 289-0459
International: +1 (646) 828-8082
Conference ID: 578662
https://event.webcasts.com/starthere.jsp?ei=1716437&tp_key=f56060bee8

A replay of the conference call will be available two hours after the completion of the conference call. To access the replay, please visit our website at www.wlfc.global under the Investor Relations section for details.

About Willis Lease Finance Corporation

Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services.

Forward-Looking Statements

Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Any forward-looking statement made by the Company is based only on information currently available to the Company and speaks only as of the date on which it is made. We undertake no obligation to update them, except as may be required by law. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and pandemics; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing reports filed with the Securities and Exchange Commission.


Contact:	Scott B. Flaherty
	Executive Vice President & Chief Financial Officer
	561.413.0112

Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)

	Three months ended March 31,
		2025		2024	% Change
REVENUE
Lease rent revenue	$	67,739	$	52,881		28.1	%
Maintenance reserve revenue		54,859		43,870		25.0	%
Spare parts and equipment sales		18,240		3,288		454.7	%
Interest revenue		3,934		2,269		73.4	%
Gain on sale of leased equipment		4,437		9,201		(51.8)	%
Gain on sale of financial assets		378		—	nm
Maintenance services revenue		5,586		5,227		6.9	%
Other revenue		2,559		2,347		9.0	%
Total revenue		157,732		119,083		32.5	%

EXPENSES
Depreciation and amortization expense		25,024		22,486		11.3	%
Cost of spare parts and equipment sales		15,323		2,705		466.5	%
Cost of maintenance services		5,329		5,574		(4.4)	%
Write-down of equipment		2,109		261		708.0	%
General and administrative		47,720		29,581		61.3	%
Technical expense		6,230		8,255		(24.5)	%
Net finance costs:
Interest expense		32,094		23,003		39.5	%
Total net finance costs		32,094		23,003		39.5	%
Total expenses		133,829		91,865		45.7	%

Income from operations		23,903		27,218		(12.2)	%
Income from joint ventures		1,351		2,674		(49.5)	%
Income before income taxes		25,254		29,892		(15.5)	%
Income tax expense		8,385		9,023		(7.1)	%
Net income		16,869		20,869		(19.2)	%
Preferred stock dividends		1,323		900		47.0	%
Accretion of preferred stock issuance costs		70		12		483.3	%
Net income attributable to common shareholders	$	15,476	$	19,957		(22.5)	%

Basic weighted average income per common share	$	2.34	$	3.12
Diluted weighted average income per common share	$	2.21	$	3.00

Basic weighted average common shares outstanding		6,606		6,387
Diluted weighted average common shares outstanding		7,000		6,659

Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)

	March 31, 2025		December 31, 2024
ASSETS
Cash and cash equivalents	$	32,356	$	9,110
Restricted cash		116,737		123,392
Equipment held for operating lease, less accumulated depreciation		2,597,792		2,635,910
Maintenance rights		25,167		31,134
Equipment held for sale		19,125		12,269
Receivables, net		41,504		38,291
Spare parts inventory		67,318		72,150
Investments		65,210		62,670
Property, equipment & furnishings, less accumulated depreciation		54,342		48,061
Intangible assets, net		1,601		2,929
Notes receivable, net		179,283		183,629
Investments in sales-type leases, net		17,271		21,606
Other assets		56,927		56,045
Total assets	$	3,274,633	$	3,297,196

LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses	$	56,855	$	75,983
Deferred income taxes		191,297		185,049
Debt obligations		2,231,593		2,264,552
Maintenance reserves		104,452		97,817
Security deposits		24,090		23,424
Unearned revenue		37,666		37,911
Total liabilities		2,645,953		2,684,736

Redeemable preferred stock ($0.01 par value)		63,192		63,122

Shareholders’ equity:
Common stock ($0.01 par value)		74		72
Paid-in capital in excess of par		57,967		50,928
Retained earnings		505,083		491,439
Accumulated other comprehensive income, net of tax		2,364		6,899
Total shareholders’ equity		565,488		549,338
Total liabilities, redeemable preferred stock and shareholders’ equity	$	3,274,633	$	3,297,196

MIL-OSI: ARRAY Technologies, Inc. Reports Financial Results for the First Quarter 2025

Source: GlobeNewswire (MIL-OSI)

2025 First Quarter Highlights

Revenue of $302.4 million
Gross Margin of 25.3%
Adjusted gross margin⁽¹⁾ of 26.5%
Net income to common shareholders of $2.3 million
Adjusted EBITDA⁽¹⁾ of $40.6 million
Net income per basic and diluted share of $0.02
Adjusted net income per diluted share⁽¹⁾ of $0.13
Total executed contracts and awarded orders at March 31, 2025 were $2.0 billion
Successfully amended and extended our Revolving Credit Facility⁽²⁾

ALBUQUERQUE, N.M., May 06, 2025 (GLOBE NEWSWIRE) — ARRAY Technologies, Inc. (NASDAQ: ARRY) (“ARRAY” or the “Company”), a leading global provider of solar tracking technology products, systems and services, today announced financial results for its first quarter ended March 31, 2025.

“ARRAY is off to a great start for 2025 with first quarter high double digits revenue growth compared with the first quarter of 2024, and achieving the second largest quarter of volume shipped since 2023, indicating solid market share recovery and the strength of our execution capabilities. We are now able to provide customers with quotes for our 100% domestic content trackers under Table I of the Inflation Reduction Act (“IRA”), an important milestone for ARRAY, reflecting our continued commitment to supply chain resilience and ability to minimize effects of geopolitical uncertainty, including tariffs. With electricity demand increasing and utility-scale solar being the lowest cost and fastest-growing energy source, domestic customers are expressing greater interest in Volume Commitment Agreements, and we are well positioned to help our customers deploy projects quickly and efficiently. We have a strong orderbook with 18% sequential growth in contracting for the quarter, gaining meaningful traction with Independent Power Producers across Europe, the Middle East and Asia, where we are seeing strong contracting momentum,” said Chief Executive Officer, Kevin G. Hostetler.

Mr. Hostetler continued, “Amidst global economic uncertainty related to tariffs, and potential changes to the IRA, we are confident in our ability to navigate changes in the utility-scale solar landscape. As we look forward to building on a strong first quarter, we have flexibility with the strength of our available liquidity, no near-term refinancing requirements, robust operational capabilities and an agile team. We maintain our full year 2025 guidance and remain focused on long-term value creation, deepening customer partnerships, and demonstrating consistent product leadership.”

Full Year 2025 Guidance

For the year ending December 31, 2025, the Company maintains guidance:

Revenue to be in the range of $1.05 billion to $1.15 billion
Adjusted EBITDA⁽³⁾⁽⁴⁾ to be in the range of $180 million to $200 million
Adjusted net income per share⁽³⁾⁽⁴⁾ to be in the range of $0.60 to $0.70

⁽¹⁾ A reconciliation of the most comparable GAAP measure to its Non-GAAP measure is included below.

⁽²⁾ Matures October 2028 or July 2027 if Term Loan under the Credit Agreement remains outstanding as of July 2027.

⁽³⁾ Guidance includes benefits related to the Inflation Reduction Act Section 45X Advanced Manufacturing Production Credit for torque tube and structural fastener manufacturing.

⁽⁴⁾ A reconciliation of projected Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income per share, which are forward-looking measures that are not prepared in accordance with GAAP, to the most directly comparable GAAP financial measures, is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized. The GAAP measures may include the impact of such items as non-cash share-based compensation, revaluation of the fair-value of our contingent consideration, and the tax effect of such items, in addition to other items we have historically excluded from Adjusted EBITDA and Adjusted net income per share. We expect to continue to exclude these items in future disclosures of these non-GAAP measures and may also exclude other similar items that may arise in the future (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments are inherently unpredictable as to if or when they may occur. As such, for our 2025 guidance, we have not included estimates for these items and are unable to address the probable significance of the unavailable information, which could be material to future results.

Supplemental Presentation and Conference Call Information

ARRAY has posted a supplemental presentation to its website, which will be discussed during the conference call hosted by management today (May 6, 2025) at 8:00 a.m. (ET). The conference call can be accessed live over the phone by dialing (877)869-3847 (domestic) or (201)689-8261 (international) and entering the passcode 13752974, or via webcast of the live conference call by logging onto the Investor Relations section of the Company’s website at http://ir.arraytechinc.com. A telephonic replay will be available approximately three hours after the call by dialing (877)660-6853 (domestic), or (201)612-7415 (international), with the passcode 13752974. The replay will be available until 11:59 p.m. (ET) on May 20, 2025. The online replay will be available for 30 days on the same website, immediately following the call.

About ARRAY Technologies, Inc.

ARRAY Technologies, Inc. (NASDAQ: ARRY) is a leading global provider of solar tracking technology to utility-scale and distributed generation customers, who construct, develop, and operate solar PV sites. With solutions engineered to withstand the harshest weather conditions, ARRAY’s high-quality solar trackers, software platforms and field services combine to maximize energy production and deliver value to our customers for the entire lifecycle of a project. Founded and headquartered in the United States, ARRAY is rooted in manufacturing and driven by technology – relying on its domestic manufacturing, diversified global supply chain, and customer-centric approach to design, deliver, commission, train, and support solar energy deployment around the world. For more news and information on ARRAY, please visit arraytechinc.com.

Investor Relations Contact:

H. Keith Jennings
505-437-0010
investors@arraytechinc.com

Media Contact:

Nicole Stewart
505-589-8257

Forward-Looking Statements

This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing and investment plans, competitive position, industry and regulatory environment, including potential regulatory reform related to energy credits, uncertainty relating the implementation of tariffs and changes in trade policy, ability to provide 100% domestic content trackers, expectations regarding the macroeconomic environment and geopolitical developments, including the effects of tariffs, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” “designed to” or similar expressions and the negatives of those terms.

Array’s actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of certain risks, uncertainties and other factors, including without limitation: changes in the cost and availability of raw materials as a result of tariffs and other geopolitical uncertainty, changes in growth or rate of growth in demand for solar energy projects; competitive pressures within our industry; factors affecting viability and demand for solar energy, including but not limited to, the retail price of electricity, availability of in-demand components like high voltage breakers, various policies related to the permitting and interconnection costs of solar plants, and the availability of incentives for solar energy and solar energy production systems, which makes it difficult to predict our future prospects; competition from conventional and renewable energy sources; a loss of one or more of our significant customers, their inability to perform under their contracts, or their default in payment; a drop in the price of electricity derived from the utility grid or from alternative energy sources; fluctuations in our results of operations across fiscal periods, which could make our future performance difficult to predict and could cause our results of operations for a particular period to fall below expectations; any increase in interest rates, or a reduction in the availability of tax equity or project debt capital in the global financial markets, which could make it difficult for customers to finance the cost of a solar energy system; existing electric utility industry policies and regulations, and any subsequent changes or new related policies and regulations, may present technical, regulatory and economic barriers to the purchase and use of solar energy systems, which may significantly reduce demand for our products or harm our ability to compete; the interruption of the flow of materials from international vendors, which could disrupt our supply chain, including as a result of the imposition of new and/or additional duties, tariffs and other charges or restrictions on imports and exports; changes in the global trade environment, including the imposition of import tariffs or other import restrictions; geopolitical, macroeconomic and other market conditions unrelated to our operating performance including but not limited interest rates; our ability to convert our orders in backlog into revenue; the reduction, elimination or expiration, or our failure to optimize the benefits of government incentives for, or regulations mandating the use of, renewable energy and solar energy, particularly in relation to our competitors; failure to, or incurrence of significant costs in order to, obtain, maintain, protect, defend or enforce, our intellectual property and other proprietary right; delays in construction projects and any failure to manage our inventory; significant changes in the cost of raw materials; disruptions to transportation and logistics, including increases in shipping costs; defects or performance problems in our products, which could result in loss of customers, reputational damage and decreased revenue; delays, disruptions or quality control problems in our product development operations; our ability to retain our key personnel or failure to attract additional qualified personnel; additional business, financial, regulatory and competitive risks due to our continued planned expansion into new markets; cybersecurity or other data incidents, including unauthorized disclosure of personal or sensitive data or theft of confidential information; a failure to maintain an effective system of integrated internal controls over financial reporting; our substantial indebtedness, risks related to actual or threatened public health epidemics, pandemics, outbreaks or crises; changes to laws and regulations, including changes to tax laws and regulations, that are applied adversely to us or our customers, including our ability to optimize those changes brought about by the passage of the IRA or any repeal thereof; and the other risks and uncertainties described in more detail in the Company’s most recent Annual Report on Form 10-K and other documents on file with the SEC, each of which can be found on our website, www.arraytechinc.com.

Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this report. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Non-GAAP Financial Information

This press release includes certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA, Adjusted net income, Adjusted net income per share, Adjusted general and administrative expense and Free cash flow.

We define Adjusted gross profit as gross profit plus (i) amortization of developed technology and (ii) other costs if applicable. We define Adjusted gross margin as Adjusted gross profit as a percentage of revenue. We define Adjusted EBITDA as net income (loss) to common shareholders plus (i) other expense, net, (ii) foreign currency (gain) loss, net, (iii) preferred dividends and accretion, (iv) interest expense, (v) income tax expense (benefit), (vi) depreciation expense, (vii) amortization of intangibles, (viii) amortization of developed technology, (ix) equity-based compensation, (x) change in fair value of contingent consideration, (xi) certain legal expenses, and (xii) other costs. We define Adjusted net income as net income (loss) to common shareholders plus (i) amortization of intangibles, (ii) amortization of developed technology, (iii) amortization of debt discount and issuance costs (iv) Series A preferred stock accretion, (v) equity-based compensation, (vi) change in fair value of contingent consideration, (vii) certain legal expenses, (viii) other costs, and (ix) income tax (benefit) expense adjustments. We define Adjusted general and administrative expense as general and administrative expense less (i) equity based compensation, (ii) certain legal expenses, and (iii) other costs. We define Free cash flow as Cash provided by (used in) operating activities less purchase of property, plant and equipment.

A detailed reconciliation between GAAP results and results excluding special items (“non-GAAP”) is included within this press release. We calculate net income (loss) per share as net income (loss) to common shareholders divided by the basic and diluted weighted average number of shares outstanding for the applicable period and we define Adjusted net income per share as Adjusted net income (as detailed above) divided by the basic and diluted weighted average number of shares outstanding for the applicable period.

We believe that these non-GAAP financial measures are provided to enhance the reader’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing the Company’s performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies.

Among other limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect income tax expense or benefit; and other companies in our industry may calculate Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income differently than we do, which limits their usefulness as comparative measures. Because of these limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP.

We compensate for these limitations by relying primarily on our GAAP results and using Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income on a supplemental basis.

You should review the reconciliation of gross profit to Adjusted gross profit and net income (loss) to Adjusted EBITDA and Adjusted net income below and not rely on any single financial measure to evaluate our business.

Array Technologies, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands, except per share and share amounts)

	March 31, 2025			December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	348,324		$	362,992
Restricted cash		1,169			1,149
Accounts receivable, net of allowance of $6,601 and $4,848, respectively		282,575			275,838
Inventories, net		186,875			200,818
Prepaid expenses and other		157,348			157,927
Total current assets		976,291			998,724

Property, plant and equipment, net		28,740			26,222
Goodwill		164,221			160,189
Other intangible assets, net		176,347			181,409
Deferred income tax assets		16,049			17,754
Other assets		64,110			41,701
Total assets	$	1,425,758		$	1,425,999

LIABILITIES, REDEEMABLE PERPETUAL PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	153,781		$	172,368
Accrued expenses and other		77,576			91,183
Accrued warranty reserve		2,045			2,063
Income tax payable		8,734			5,227
Deferred revenue		120,225			119,775
Current portion of contingent consideration		2,528			1,193
Current portion of debt		34,472			30,714
Other current liabilities		9,132			15,291
Total current liabilities		408,493			437,814

Deferred income tax liabilities		21,634			21,398
Contingent consideration, net of current portion		5,179			7,868
Other long-term liabilities		17,311			18,684
Long-term warranty		5,021			4,830
Long-term debt, net of current portion		644,520			646,570
Total liabilities		1,102,158			1,137,164

Commitments and contingencies (Note 11)

Series A Redeemable Perpetual Preferred Stock of $0.001 par value; 500,000 authorized; 468,122 and 460,920 shares issued as of March 31, 2025 and December 31, 2024, respectively; liquidation preference of $493.1 million at both dates		421,374			406,931

Stockholders’ equity
Preferred stock of $0.001 par value – 4,500,000 shares authorized; none issued at respective dates		—			—
Common stock of $0.001 par value – 1,000,000,000 shares authorized; 152,512,805 and 151,951,652 shares issued at respective dates		151			151
Additional paid-in capital		286,079			297,780
Accumulated deficit		(353,878	)		(370,624	)
Accumulated other comprehensive income		(30,126	)		(45,403	)
Total stockholders’ equity		(97,774	)		(118,096	)
Total liabilities, redeemable perpetual preferred stock and stockholders’ equity	$	1,425,758		$	1,425,999

Array Technologies, Inc. Condensed Consolidated Statements of Operations (unaudited) (in thousands, except per share amounts)

	Three Months Ended March 31,
		2025			2024
Revenue	$	302,363		$	153,403
Cost of revenue
Cost of product and service revenue		222,296			94,674
Amortization of developed technology		3,639			3,639
Total cost of revenue		225,935			98,313
Gross profit		76,428			55,090

Operating expenses
General and administrative		43,945			37,784
Change in fair value of contingent consideration		(150	)		(735	)
Depreciation and amortization		5,349			9,627
Total operating expenses		49,144			46,676

Income from operations		27,284			8,414

Other expense, net		23			814
Interest income		3,319			3,680
Foreign currency gain (loss), net		689			(499	)
Interest expense		(8,035	)		(8,940	)
Total other expense, net		(4,004	)		(4,945	)

Income before income tax expense		23,280			3,469
Income tax expense		6,534			1,304
Net income		16,746			2,165
Preferred dividends and accretion		14,443			13,502
Net income (loss) to common shareholders	$	2,303		$	(11,337	)

Income (loss) per common share
Basic	$	0.02		$	(0.07	)
Diluted	$	0.02		$	(0.07	)
Weighted average number of common shares outstanding
Basic		152,076			151,351
Diluted		152,783			151,351

Array Technologies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) (in thousands)

	Three Months Ended March 31,
		2025			2024
Operating activities
Net income	$	16,746		$	2,165
Adjustments to reconcile net income to cash provided by operating activities:
Provision for bad debts		1,671			896
Deferred tax expense (benefit)		1,024			(13	)
Depreciation and amortization		5,932			10,125
Amortization of developed technology		3,639			3,639
Amortization of debt discount and issuance costs		1,506			1,553
Equity-based compensation		2,798			3,926
Change in fair value of contingent consideration		(150	)		(735	)
Warranty provision		1,720			(1,138	)
Inventory reserve		839			600
Changes in working capital, net		(48,784	)		26,484
Net cash provided by (used in) operating activities		(13,059	)		47,502
Investing activities
Purchase of property, plant and equipment		(2,352	)		(2,396	)
Retirement/disposal of property, plant and equipment		—			10
Net cash used in investing activities		(2,352	)		(2,386	)
Financing activities
Proceeds from issuance of other debt		7,862			2,283
Principal payments on other debt		(7,294	)		(3,781	)
Principal payments on term loan facility		(1,075	)		(1,070	)
Contingent consideration payments		(1,204	)		(1,427	)
Other financing		(14	)		(580	)
Net cash used in financing activities		(1,725	)		(4,575	)
Effect of exchange rate changes on cash and cash equivalent balances		2,488			(2,001	)
Net change in cash and cash equivalents and restricted cash		(14,648	)		38,540
Cash and cash equivalents, and restricted cash beginning of period		364,141			249,080
Cash and cash equivalents and restricted cash, end of period	$	349,493		$	287,620

Array Technologies, Inc. Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense and Free Cash Flow Reconciliation (unaudited) (in thousands, except per share amounts)
The following table reconciles Gross profit to Adjusted gross profit:
	Three Months Ended March 31,
	2025		2024
Revenue	302,363		153,403
Cost of revenue	225,935		98,313
Gross profit	76,428		55,090
Gross margin	25.3	%	35.9	%

Amortization of developed technology	3,639		3,639
Adjusted gross profit	80,067		58,729
Adjusted gross margin	26.5	%	38.3	%

The following table reconciles net income (loss) to Adjusted EBITDA:

	Three Months Ended March 31,
		2025			2024
Net income	$	16,746		$	2,165
Preferred dividends and accretion		14,443			13,502
Net income (loss) to common shareholders	$	2,303		$	(11,337	)
Other expense, net		(3,342	)		(4,494	)
Foreign currency gain (loss), net		(689	)		499
Preferred dividends and accretion		14,443			13,502
Interest expense		8,035			8,940
Income tax expense (benefit)		6,534			1,304
Depreciation expense		1,043			883
Amortization of intangibles		4,889			9,254
Amortization of developed technology		3,639			3,639
Equity-based compensation		2,798			4,020
Change in fair value of contingent consideration		(150	)		(735	)
Certain legal expenses^(a)		1,083			730
Other costs^(b)		—			42
Adjusted EBITDA	$	40,586		$	26,247

^(a) Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

^(b) For the three months ended March 31, 2024, other costs represent costs related to Capped-Call treatment evaluation for prior year.

Array Technologies, Inc. Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense and Free Cash Flow Reconciliation (unaudited) (in thousands, except per share amounts)
The following table reconciles net income (loss) to Adjusted net income:
	Three Months Ended March 31,
		2025			2024
Net income	$	16,746		$	2,165
Preferred dividends and accretion		14,443			13,502
Net income (loss) to common shareholders	$	2,303		$	(11,337	)
Amortization of Intangibles		4,889			9,254
Amortization of developed technology		3,639			3,639
Amortization of debt discount and issuance costs		1,393			1,552
Series A Pref stock accretion		7,241			6,665
Equity based compensation		2,798			4,020
Change in fair value of contingent consideration		(150	)		(735	)
Certain legal expenses ^(a)		1,083			730
Other costs^(b)		—			42
Income tax expense of adjustments^(c)		(3,474	)		(4,852	)
Adjusted net income	$	19,722		$	8,978

Income (loss) per common share
Basic	$	0.02		$	(0.07	)
Diluted	$	0.02		$	(0.07	)
Weighted average number of common shares outstanding
Basic		152,076			151,351
Diluted		152,783			151,351

Adjusted net income per common share
Basic	$	0.13		$	0.06
Diluted	$	0.13		$	0.06
Weighted average number of common shares outstanding
Basic		152,076			151,351
Diluted		152,783			152,243

^(a) Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

^(b) For the three months ended March 31, 2024, other costs represent costs related to Capped-Call treatment evaluation for prior year.

^(c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.

Array Technologies, Inc. Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense and Free Cash Flow Reconciliation (unaudited) (in thousands, except per share amounts)
The following table reconciles General and administrative expense to Adjusted general and administrative expense:
	Three Months Ended March 31,
	2025		2024
General and administrative expense	43,945		37,784
Equity based compensation	(2,798	)	(4,020	)
Certain legal expenses^(a)	(1,083	)	(730	)
Other costs^(b)	—		(42	)
Adjusted general and administrative expense	40,064		32,992

^(a) Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

^(b) For the three months ended March 31, 2024, other costs represent costs related to Capped-Call treatment evaluation for prior year.

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

	Three Months Ended March 31,
	2025		2024
Net cash provided by (used in) operating activities	(13,059	)	47,502
Purchase of property, plant and equipment	(2,352	)	(2,396	)
Free cash flow	(15,411	)	45,106

MIL-OSI: Enlight Renewable Energy Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

All of the amounts disclosed in this press release are in U.S. dollars unless otherwise noted

TEL AVIV, Israel, May 06, 2025 (GLOBE NEWSWIRE) — Enlight Renewable Energy Ltd. (NASDAQ: ENLT, TASE: ENLT) today reported financial results for the first quarter of 2025 ending March 31, 2025. Registration links for the Company’s earnings English and Hebrew conference call and webcasts can be found at the end of this earnings release.

Financial Highlights

3 months ending March 31, 2025

Revenues and income of $130m, up 39% year over year
Adjusted EBITDA¹ of $132m, up 84% year over year
Net income of $102m, up 316% year over year
Cash flow from operations of $44m, up 24% year over year

	For the three months ended
($ millions)	31/03/2025	31/03/2024	% change
Revenues and Income	130	94	39%
Net Income	102	24	316%
Adjusted EBITDA	132	72	84%
Cash Flow from Operating Activities	44	35	24%

________________________
_{¹ The Company is unable to provide a reconciliation of Adjusted EBITDA to Net Income on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted. Please refer to the reconciliation table in Appendix 2}

In January 2025, the Company announced the sale of 44% of the Sunlight cluster of renewable energy projects in Israel for a consideration of $52m at a valuation of $119m, and deconsolidated the cluster from its balance sheet. The transaction added $42m to Adjusted EBITDA (actual consideration received less the book value of the associated assets) and $80m to net profit in the 1Q25 results.
A detailed analysis of financial results appears below

Impact of U.S. Tariffs on the Company’s Operations

Enlight’s procurement strategy has effectively mitigated significant exposure to increased U.S. import tariffs. The agreements and good relationships we have with our supply chain partners allow for a significant distribution of the impact of tariffs.

Costs

Solar panels for projects under construction are either domestically constructed or sourced from outside China and carry no tariff exposure
80% of battery capacity for projects under construction is supplied by Tesla, a supplier with high levels of domestic U.S. manufacturing

Revenues

Negotiations for PPA price adjustments are now underway to account for higher tariff-related construction costs

“Enlight showed strong financial results for 1Q25, including 84% growth in Adjusted EBITDA and a 316% rise in net profit,” said Gilad Yavetz, CEO of Enlight Renewable Energy.

“The introduction of U.S. tariffs underscores how Enlight’s diversified procurement strategy in this market over the past two years has proven itself, effectively shielding us from cost increases. As a result, our U.S. projects now under construction, with total capex of $1.7bn, have no solar panel exposure under the current tariff policy. Selecting Tesla as our primary storage supplier further strengthens this position – its substantial levels of U.S. manufacturing offer greater tariff protection than other battery suppliers.

“Securing $1.8bn in financing over recent months marks a significant milestone, and was achieved through three financial closings, a sale of a stake in the Sunlight cluster to institutional investors, and a successful bond issuance. This funding will enable the launch of our aggressive plan to begin construction on 4.7 FGW of capacity in 2025. Combined with our existing operating portfolio, these projects represent 90% of the capacity required to reach an annual revenue and income run rate of $1.4bn by 2027.”

Portfolio Review

Enlight’s total portfolio is comprised of 19.2 GW of generation capacity and 49.8 GWh storage (33.4 FGW²)
Of this, the Mature portfolio component (including operating projects, projects under construction or pre-construction) contains 6.1 GW generation capacity and 8.8 GWh of storage (8.6 FGW)
Within the Mature portfolio component, the operating component has 2.5 GW of generation capacity and 1.9 GWh of storage (3.0 FGW)

The full composition of the portfolio appears in the following table:

Component	Status	FGW²		Annual revenues & income run rate ($m)
Operating	Commercial operation	3.0			~500³
Under Construction	Under construction	1.8			~305
Pre-Construction	0-12 months to start of construction	3.8			~615
Total Mature Portfolio	Mature	8.6	1,420~
Advanced Development	13-24 months to start of construction	7	–
Development	2+ years to start of construction	17.8	–
Total Portfolio		33.4	–

________________________
_{² FGW (Factored GW) is a consolidated metric combining generation and storage capacity into a uniform figure based on the ratio of construction costs. The company’s current weighted average construction cost ratio is 3.5 GWh of storage per 1 GW of generation: FGW = GW + GWh / 3.5}
_{³ Based on the midpoint of 2025 guidance.}

Operating component of the portfolio: 3 FGW
- The operational portfolio totals 3 GW of capacity is spread over three regions: 44% of the capacity is located in 7 European countries, 29% is located in Israel, and 27% in the U.S.
- 81% of the operational capacity sells electricity under PPA agreements, with 29% of the power sold under inflation-linked PPAs.
- The operational portfolio generates annualized revenues and income of approximately $500 million.
Under Construction component of the portfolio: 1.8 FGW
- Consists of three projects in the U.S. with a total capacity of 1.4 FGW; the Gecama Solar project in Spain with a capacity of 0.3 FGW; the solar and storage cluster in Israel; and the addition of storage capacity at project Bjornberget in Sweden. Approximately half of the cluster is expected to reach COD in 2025, with the rest expected to commission in 2026.
- Projects under construction are expected to contribute $305m to the annual revenues and income run rate during their first full year of operation
Pre-construction component of the portfolio: 3.8 FGW
- Two mega projects in the U.S., Snowflake and CO Bar, with a combined capacity of 2.6 FGW will begin construction in 2025 and are expected to contribute $455m to revenues and income on an annualized basis.
- Nardo, a stand alone storage project in Italy with a capacity of 0.25 FGW, is expected to begin construction in 2H25. The Pre-construction portion of the Mature portfolio includes additional projects in Israel, Hungary, and the US with a combined capacity of 0.9 FGW.
- Pre-construction projects are expected to contribute $615m in revenues and income in their first full year of operations.
  The under construction and pre-construction projects are expected to reach COD by the end of 2027, which is expected to boost operating capacity to 8.6 FGW and the annualized revenue and income run rate to $1.4bn.

Advanced Development component of the portfolio component: 7 FGW
- 5.7 FGW in the U.S., with 100% of the capacity having passed completion of the System Impact Study, the most important study of the grid connection process, significantly de-risking the portfolio.
- The U.S. pipeline includes several mega-projects, including the 1.4 FGW Cedar Island facility in Oregon and the 1.1 FGW Blackwater project in Virginia.
- The U.S. portfolio includes several follow-ons to Mature projects, such as Atrisco 2 (0.7 FGW), the energy storage expansion at CO-Bar (0.9 FGW), and Snowflake B (1.3 FGW).
- These projects reflect the Company’s “Connect and Expand” strategy, leveraging existing grid infrastructure with the development of new ones, thereby reducing construction costs and project risks while improving project returns.
- 0.7 FGW in Europe, focused on Italy, Spain, and Croatia.
- 0.6 FGW in MENA, focused on solar and storage projects and stand alone storage facilities, including approximately 0.4 FGW that won availability tariffs as part of the Israel Electricity Authority’s first high voltage storage availability tariff tender.
Development component of the portfolio: 17.8 FGW
- 12 FGW in the U.S. with broad geographic presence, including the PJM, WECC, SPP and MISO regions. The storage portion of the US portfolio has grown by 5.6 FGW to reflect greater demand for energy storage in this region.
- 3 FGW in Europe, focused on Italy, Spain, Croatia and entry into stand-alone storage operations in Poland.
- 2.8 FGW in MENA, focused on solar combined storage projects and stand-alone storage facilities.

Mature Portfolio Components Expected to Generate Annualized Revenues and Income of ~$1.4bn⁴^,⁵

________________________
_{⁴ Projection based on 2025 guidance, adding on total revenues and income (sales of electricity and tax benefits) of under construction and pre-construction projects}
_{⁵ The company’s revenues from tax benefits are estimated at approximately 20-24% of the total revenue run rate for December 2025; approximately 22-26% of the total revenue run rate for December 2026, and approximately 26-30% of the total revenue run rate for December 2027}

Financing Activities

During the quarter, the Company secured $1bn in financial closings for the Country Acres and Quail Ranch projects, representing 830 FMW of combined capacity.
Along with the financial close on the 560 FMW Roadrunner project in December 2024, the financing for the second wave of U.S. projects in now complete, with a total of $1.5bn raised.
Raising $245m through the sale of Series G and H bonds to finance the Company’s growth.
Sale of 44% of the Sunlight cluster for $52m cash at a valuation of $119m, generating Adjusted EBITDA of $42m (actual consideration received less associated book value of assets) and a pre-tax profit of $97m.
As of the balance sheet date, the Company maintained $350m of revolving credit facilities, of which none have been drawn.

2025 Guidance

Construction and commissioning

Expected commissioning of 0.9 FGW of capacity, which is expected to add approximately $148-152m to annualized revenues and income and $129-133m annualized EBITDA, starting in 2026.
Starting construction on 2.9 FGW of capacity, which is expected to add approximately $487-495m in annualized revenues and income and approximately $428-436m in annualized EBITDA gradually through 2026-2027.

Financial guidance

Total revenues and income⁶ for 2025 are expected to range between $490m and $510m. Of the projected revenues and income, 38% are expected to be denominated in ILS, 35% in EUR, and 27% in USD.
Adjusted EBITDA⁷ for 2025 is expected to range between $360m and $380m.
Approximately 90% of the electricity volumes expected to be generated in 2025 will be sold at fixed prices through PPAs or hedges.

________________________
_{⁶ Total revenues and income include revenues from the sale of electricity along with income from tax benefits from US projects amounting to $60m-80m.}
_{⁷ EBITDA is a non-IFRS financial measure. The Company is unable to provide a reconciliation of EBITDA to Net Income on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted. Please refer to the reconciliation table in Appendix 2.}

Financial Results Analysis

Revenues & Income by Segment
($ millions)	For the three months ended
Segment	31/03/2025	31/03/2024	% change
MENA	42,867	28,474	51%
Europe	51,384	59,160	(13%)
U.S.	34,789	4,495	674%
Other	829	1,532	(46%)
Total Revenues & Income	129,869	93,661	39%

Revenues & Income

In the first quarter of 2025, the Company’s total revenues and income increased to $130m, up from $94m last year, a growth rate of 39% year over year. This was composed of revenues from the sale of electricity, which rose 21% to $110m compared to $90m in the same period of 2024, as well as recognition of $20m in income from tax benefits, up 516% compared to $3m in 1Q24.

The Company benefited from the revenues and income contribution of newly operational projects. Since the first quarter of last year, 576 MW and 1,526 MWh of new projects were connected to the grid and began selling electricity, including seven of the Israel Solar and Storage Cluster units in Israel, Atrisco in the U.S, Pupin in Serbia, and Tapolca in Hungary. The most important increases in revenue from the sale of electricity originated at Atrisco, which added $13m, followed by the Israel Solar and Storage Cluster, with $11m, while Pupin contributed $6m. In total, new projects contributed $30m to revenues from the sale of electricity.

Offsetting this growth, the amount of electricity generated at our wind projects operating in Europe was lower compared to the same period last year mainly due to weaker wind volumes. In addition, generation at project Bjornberget in Sweden this quarter fell compared to last year due to a blade malfunction experienced at one of the site’s turbines. This prompted a complete shutdown of the wind farm, which is now in the process of gradually resuming operations. The Company recognized compensation of $4m from Bjornberget’s operating contractor in lieu of the lost revenues, which is recorded in other income.

Revenues and income were distributed between MENA, Europe, and the US, with 34% denominated in Israeli Shekel, 39% in Euros, and 27% denominated in US Dollars.

Net Income

In the first quarter of 2025, the Company’s net income amounted to $102m compared to $24m last year, an increase of 316% year over year. This increase stems from the $28m increase in revenues and income and $80m profit from the partial sale of the Sunlight cluster. This was offset by higher total operating expenses of $17m and net financial expenses of $10m (all after tax).

Adjusted EBITDA⁸

The Company’s Adjusted EBITDA grew by 84% to $132m in the first quarter of 2025, compared to $72m for the same period in 2024. Of this increase, $36m was driven by the factors described in the Revenues and Income section. The partial sale of the Sunlight cluster contributed $42m, representing the actual consideration received less the book value of the associated assets. Offsetting this growth was an increase of $11m in COGS linked to the addition of new projects, and an increase of $4m in operating expenses. Adjusting for the effects of this transaction, 1Q25 Adjusted EBITDA grew by 25% year-on-year to $90m.

________________________
_{⁸ Adjusted EBITDA is a non-IFRS measure. Please see the appendix of this presentation for a reconciliation to Net Income}

Conference Call Information

Enlight plans to hold its First Quarter 2025 Conference Call and Webcasts on Tuesday, May 6, 2025 to review its financial results and business outlook in both English and Hebrew. Management will deliver prepared remarks followed by a question-and-answer session. Participants can join by dial-in or webcast:

Upon registering, you will be emailed a dial-in number, direct passcode and unique PIN.

The press release with the financial results as well as the investor presentation materials will be accessible from the Company’s website prior to the conference call. Approximately one hour after completion of the live call, an archived version of the webcast will be available on the Company’s investor relations website at https://enlightenergy.co.il/info/investors/.

Supplemental Financial and Other Information

We intend to announce material information to the public through the Enlight investor relations website at https://enlightenergy.co.il/info/investors, SEC filings, press releases, public conference calls, and public webcasts. We use these channels to communicate with our investors, customers, and the public about our company, our offerings, and other issues. As such, we encourage investors, the media, and others to follow the channels listed above, and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page of our website.

Non-IFRS Financial Measures

This release presents Adjusted EBITDA, a financial metric, which is provided as a complement to the results provided in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). A reconciliation of the non-IFRS financial information to the most directly comparable IFRS financial measure is provided in the accompanying tables found at the end of this release.

We define Adjusted EBITDA as net income (loss) plus depreciation and amortization, share based compensation, finance expenses, taxes on income and share in losses of equity accounted investees and minus finance income and non-recurring portions of other income, net. For the purposes of calculating Adjusted EBITDA, compensation for inadequate performance of goods and services procured by the Company are included in other income, net. Compensation for inadequate performance of goods and services reflects the profits the Company would have generated under regular operating conditions and is therefore included in Adjusted EBITDA. With respect to gains (losses) from asset disposals, as part of Enlight’s strategy to accelerate growth and reduce the need for equity financing, the Company sells parts of or the entirety of selected renewable project assets from time to time, and therefore includes realized gains or losses from these asset disposals in Adjusted EBITDA. In the case of partial assets disposals, Adjusted EBITDA includes only the actual consideration less the book value of the assets sold. Our management believes Adjusted EBITDA is indicative of operational performance and ongoing profitability and uses Adjusted EBITDA to evaluate the operating performance and for planning and forecasting purposes.

Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under IFRS. There are a number of limitations related to the use of non-IFRS financial measures versus comparable financial measures determined under IFRS. For example, other companies in our industry may calculate the non-IFRS financial measures that we use differently or may use other measures to evaluate their performance. All of these limitations could reduce the usefulness of our non-IFRS financial measures as analytical tools. Investors are encouraged to review the related IFRS financial measure, Net Income, and the reconciliations of Adjusted EBITDA provided below to Net Income and to not rely on any single financial measure to evaluate our business.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the Company’s business strategy and plans, capabilities of the Company’s project portfolio and achievement of operational objectives, market opportunity, utility demand and potential growth, discussions with commercial counterparties and financing sources, pricing trends for materials, progress of Company projects, including anticipated timing of related approvals and project completion and anticipated production delays, the Company’s future financial results, expected impact from various regulatory developments and anticipated trade sanctions, expectations regarding wind production, electricity prices and windfall taxes, and Revenues and Income and Adjusted EBITDA guidance, the expected timing of completion of our ongoing projects, and the Company’s anticipated cash requirements and financing plans , are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” “forecasts,” “aims” or the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our ability to site suitable land for, and otherwise source, renewable energy projects and to successfully develop and convert them into Operational Projects; availability of, and access to, interconnection facilities and transmission systems; our ability to obtain and maintain governmental and other regulatory approvals and permits, including environmental approvals and permits; construction delays, operational delays and supply chain disruptions leading to increased cost of materials required for the construction of our projects, as well as cost overruns and delays related to disputes with contractors; disruptions in trade caused by political, social or economic instability in regions where our components and materials are made; our suppliers’ ability and willingness to perform both existing and future obligations; competition from traditional and renewable energy companies in developing renewable energy projects; potential slowed demand for renewable energy projects and our ability to enter into new offtake contracts on acceptable terms and prices as current offtake contracts expire; offtakers’ ability to terminate contracts or seek other remedies resulting from failure of our projects to meet development, operational or performance benchmarks; exposure to market prices in some of our offtake contracts; various technical and operational challenges leading to unplanned outages, reduced output, interconnection or termination issues; the dependence of our production and revenue on suitable meteorological and environmental conditions, and our ability to accurately predict such conditions; our ability to enforce warranties provided by our counterparties in the event that our projects do not perform as expected; government curtailment, energy price caps and other government actions that restrict or reduce the profitability of renewable energy production; electricity price volatility, unusual weather conditions (including the effects of climate change, could adversely affect wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission system constraints and the possibility that we may not have adequate insurance to cover losses as a result of such hazards; our dependence on certain operational projects for a substantial portion of our cash flows; our ability to continue to grow our portfolio of projects through successful acquisitions; changes and advances in technology that impair or eliminate the competitive advantage of our projects or upsets the expectations underlying investments in our technologies; our ability to effectively anticipate and manage cost inflation, interest rate risk, currency exchange fluctuations and other macroeconomic conditions that impact our business; our ability to retain and attract key personnel; our ability to manage legal and regulatory compliance and litigation risk across our global corporate structure; our ability to protect our business from, and manage the impact of, cyber-attacks, disruptions and security incidents, as well as acts of terrorism or war; changes to existing renewable energy industry policies and regulations that present technical, regulatory and economic barriers to renewable energy projects; the reduction, elimination or expiration of government incentives or benefits for, or regulations mandating the use of, renewable energy; our ability to effectively manage the global expansion of the scale of our business operations; our ability to perform to expectations in our new line of business involving the construction of PV systems for municipalities in Israel; our ability to effectively manage our supply chain and comply with applicable regulations with respect to international trade relations, the impact of tariffs on the cost of construction and our ability to mitigate such impact, sanctions, export controls and anti-bribery and anti-corruption laws; our ability to effectively comply with Environmental Health and Safety and other laws and regulations and receive and maintain all necessary licenses, permits and authorizations; our performance of various obligations under the terms of our indebtedness (and the indebtedness of our subsidiaries that we guarantee) and our ability to continue to secure project financing on attractive terms for our projects; limitations on our management rights and operational flexibility due to our use of tax equity arrangements; potential claims and disagreements with partners, investors and other counterparties that could reduce our right to cash flows generated by our projects; our ability to comply with increasingly complex tax laws of various jurisdictions in which we currently operate as well as the tax laws in jurisdictions in which we intend to operate in the future; the unknown effect of the dual listing of our ordinary shares on the price of our ordinary shares; various risks related to our incorporation and location in Israel, including the ongoing war in Israel, where our headquarters and some of our wind energy and solar energy projects are located; the costs and requirements of being a public company, including the diversion of management’s attention with respect to such requirements; certain provisions in our Articles of Association and certain applicable regulations that may delay or prevent a change of control; and other risk factors set forth in the section titled “Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”), as may be updated in our other documents filed with or furnished to the SEC.

These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

About Enlight

Founded in 2008, Enlight develops, finances, constructs, owns, and operates utility-scale renewable energy projects. Enlight operates across the three largest renewable segments today: solar, wind and energy storage. A global platform, Enlight operates in the United States, Israel and 10 European countries. Enlight has been traded on the Tel Aviv Stock Exchange since 2010 (TASE: ENLT) and completed its U.S. IPO (Nasdaq: ENLT) in 2023.

Company Contacts

Yonah Weisz
Director IR
investors@enlightenergy.co.il

Erica Mannion or Mike Funari
Sapphire Investor Relations, LLC
+1 617 542 6180
investors@enlightenergy.co.il

Appendix 1 – Financial information

Consolidated Statements of Income
	For the three months ended at March 31
	2025	*2024()**
	USD in	USD in
	Thousands	Thousands

Revenues	109,758	90,397
Tax benefits	20,111	3,264
Total revenues and income	129,869	93,661

Cost of sales (**)	(26,638)	(15,436)
Depreciation and amortization	(33,789)	(25,604)
General and administrative expenses	(11,846)	(8,859)
Development expenses	(2,564)	(2,418)
Total operating expenses	(74,837)	(52,317)
Gains from projects disposals	97,262	27
Other income (expenses), net	(1,105)	1,517
Operating profit	151,189	42,888

Finance income	6,695	8,065
Finance expenses	(30,203)	(19,493)
Total finance expenses, net	(23,508)	(11,428)

Profit before tax and equity loss	127,681	31,460
Share of losses of equity accounted investees	(1,227)	(144)
Profit before income taxes	126,454	31,316
Taxes on income	(24,651)	(6,831)
Profit for the period	101,803	24,485

Profit for the period attributed to:
Owners of the Company	94,458	16,763
Non-controlling interests	7,345	7,722
	101,803	24,485
Earnings per ordinary share (in USD) with a par value of
NIS 0.1, attributable to owners of the parent Company:
Basic earnings per share	0.80	0.14
Diluted earnings per share	0.75	0.14
Weighted average of share capital used in the
calculation of earnings:
Basic per share	118,783,541	117,963,310
Diluted per share	125,316,177	122,889,909

(*) The Consolidated Statements of Income have been adjusted to present comparable information for the previous period. For additional details please see Appendix 8.
(**) Excluding depreciation and amortization.

Consolidated Statements of Financial Position as of

	March 31	December 31
	2025	2024
	USD in	USD in
	Thousands	Thousands
Assets

Current assets
Cash and cash equivalents	449,530	387,427
Restricted cash	82,692	87,539
Trade receivables	73,125	50,692
Other receivables	71,475	99,651
Other financial assets	405	975
Assets of disposal groups classified as held for sale	–	81,661
Total current assets	677,227	707,945

Non-current assets
Restricted cash	59,964	60,802
Other long-term receivables	62,092	61,045
Deferred costs in respect of projects	392,119	357,358
Deferred borrowing costs	61	276
Loans to investee entities	32,329	18,112
Investments in equity accounted investees	49,303	–
Fixed assets, net	3,961,021	3,699,192
Intangible assets, net	293,035	291,442
Deferred taxes assets	8,023	10,744
Right-of-use asset, net	210,739	210,941
Financial assets at fair value through profit or loss	74,555	69,216
Other financial assets	63,903	59,812
Total non-current assets	5,207,144	4,838,940

Total assets	5,884,371	5,546,885

Consolidated Statements of Financial Position as of (Cont.)

	March 31	December 31
	2025	2024
	USD in	USD in
	Thousands	Thousands
Liabilities and equity

Current liabilities
Credit and current maturities of loans from banks and other financial institutions	207,662	212,246
Trade payables	167,765	161,991
Other payables	101,928	107,825
Current maturities of debentures	23,049	44,962
Current maturities of lease liability	10,192	10,240
Other financial liabilities	5,777	8,141
Liabilities of disposal groups classified as held for sale	–	46,635
Total current liabilities	516,373	592,040

Non-current liabilities
Debentures	549,517	433,994
Other financial liabilities	118,891	107,865
Convertible debentures	232,536	133,056
Loans from banks and other financial institutions	2,024,315	1,996,137
Loans from non-controlling interests	79,081	75,598
Financial liabilities through profit or loss	25,985	25,844
Deferred taxes liabilities	62,310	41,792
Employee benefits	1,092	1,215
Lease liability	209,958	211,941
Deferred income related to tax equity	387,943	403,384
Asset retirement obligation	85,141	83,085
Total non-current liabilities	3,776,769	3,513,911

Total liabilities	4,293,142	4,105,951

Equity
Ordinary share capital	3,323	3,308
Share premium	1,028,528	1,028,532
Capital reserves	49,890	25,273
Proceeds on account of convertible options	25,083	15,494
Accumulated profit	202,377	107,919
Equity attributable to shareholders of the Company	1,309,201	1,180,526
Non-controlling interests	282,028	260,408
Total equity	1,591,229	1,440,934
Total liabilities and equity	5,884,371	5,546,885

Consolidated Statements of Cash Flows

	For the three months ended at March 31
	2025	2024
	USD in	USD in
	Thousands	Thousands

Cash flows for operating activities
Profit for the period	101,803	24,485

Income and expenses not associated with cash flows:
Depreciation and amortization	33,789	25,604
Finance expenses, net	22,388	11,486
Share-based compensation	1,710	3,117
Taxes on income	24,651	6,831
Tax benefits	(20,111)	(3,264)
Other income (expenses), net	1,105	(134)
Company’s share in losses of investee partnerships	1,227	144
Gains from projects disposals	(97,262)	(27)
	(32,503)	43,757

Changes in assets and liabilities items:
Change in other receivables	(856)	(2,142)
Change in trade receivables	(20,376)	(16,909)
Change in other payables	8,604	(539)
Change in trade payables	7,802	71
	(4,826)	(19,519)

Interest receipts	2,512	2,928
Interest paid	(22,298)	(15,624)
Income Tax paid	(1,075)	(798)

Net cash from operating activities	43,613	35,229

Cash flows for investing activities
Sale (Acquisition) of consolidated entities, net	36,223	(1,388)
Changes in restricted cash and bank deposits, net	8,176	(4,988)
Purchase, development, and construction in respect of projects	(255,862)	(199,733)
Loans provided and Investment in investees	(7,430)	(11,284)
Repayments of loans from investees	30,815	–
Payments on account of acquisition of consolidated entity	(7,447)	(10,851)
Purchase of financial assets measured at fair value through profit or loss, net	(3,040)	(8,409)
Net cash used in investing activities	(198,565)	(236,653)

Consolidated Statements of Cash Flows (Cont.)
	For the three months ended at March 31
	2025	2024
	USD in	USD in
	Thousands	Thousands

Cash flows from financing activities
Receipt of loans from banks and other financial institutions	143,578	71,371
Repayment of loans from banks and other financial institutions	(108,922)	(10,448)
Issuance of debentures	125,838	–
Issuance of convertible debentures	114,685	–
Repayment of debentures	(21,994)	(1,284)
Dividends and distributions by subsidiaries to non-controlling interests	–	(108)
Deferred borrowing costs	(35,199)	(2,682)
Repayment of loans from non-controlling interests	–	(955)
Increase in holding rights of consolidated entity	(1,392)	–
Exercise of share options	11	–
Repayment of lease liability	(4,058)	(3,671)
Proceeds from investment in entities by non-controlling interest	7,732	152

Net cash from financing activities	220,279	52,375

Increase (Decrease) in cash and cash equivalents	65,327	(149,049)

Balance of cash and cash equivalents at beginning of period	387,427	403,805

Effect of exchange rate fluctuations on cash and cash equivalents	(3,224)	(4,905)

Cash and cash equivalents at end of period	449,530	249,851

Information related to Segmental Reporting

	For the three months ended at March 31, 2025
	MENA()**	Europe()**	USA	Total reportable segments	Others	Total
	USD in thousands
Revenues	42,867	51,384	14,678	108,929	829	109,758
Tax benefits	–	–	20,111	20,111	–	20,111
Total revenues and income	42,867	51,384	34,789	129,040	829	129,869

Segment adjusted EBITDA	68,017	44,663	30,549	143,229	81	143,310

Reconciliations of unallocated amounts:
Headquarter costs (*)						(11,701)
Intersegment profit						106
Gains from projects disposals						54,973
Depreciation and amortization and share-based compensation						(35,499)
Operating profit						151,189
Finance income						6,695
Finance expenses						(30,203)
Share in the losses of equity accounted investees						(1,227)
Profit before income taxes						126,454

(*) Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation).

(**) Due to the Company’s organizational restructuring, the Chief Operation Decision Maker (CODM) now reviews the group’s results by segmenting them into three business units: MENA (Middle East and North Africa), Europe, and the US. Consequently, the Central/Eastern Europe and Western Europe segments have been consolidated into the “Europe” segment, the Israel segment has been incorporated into the MENA segment, and the Management and Construction segment has been excluded. The comparative figures for the three months ended March 31, 2024, have been updated accordingly.

Information related to Segmental Reporting

	For the three months ended at March 31, 2024
	MENA	Europe	USA	Total reportable segments	Others	Total
	USD in thousands
Revenues	28,474	59,160	1,231	88,865	1,532	90,397
Tax benefits	–	–	3,264	3,264	–	3,264
Total revenues and income	28,474	59,160	4,495	92,129	1,532	93,661

Segment adjusted EBITDA	24,528	50,707	3,122	78,357	668	79,025

Reconciliations of unallocated amounts:
Headquarter costs (*)						(7,606)
Intersegment profit						190
Depreciation and amortization and share-based compensation						(28,721)
Operating profit						42,888
Finance income						8,065
Finance expenses						(19,493)
Share in the losses of equity accounted investees						(144)
Profit before income taxes						31,316

(*) Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation).

Appendix 2 – Reconciliations between Net Income to Adjusted EBITDA


($ thousands)	For the three months ended at
	March 31, 2025	March 31, 2024
Net Income	101,803	24,485
Depreciation and amortization	33,789	25,604
Share based compensation	1,710	3,117
Finance income	(6,695)	(8,065)
Finance expenses	30,203	19,493
Gains from projects disposals (*)	(54,973)	–
Share of losses of equity accounted investees	1,227	144
Taxes on income	24,651	6,831
Adjusted EBITDA	131,715	71,609

* Profit from revaluation linked to partial sale of asset.

Appendix 3 – Debentures Covenants

Debentures Covenants

As of March 31, 2025, the Company was in compliance with all of its financial covenants under the indenture for the Series C, D, F, G and H Debentures, based on having achieved the following in its consolidated financial results:

Minimum equity

The company’s equity shall be maintained at no less than NIS 375 million so long as debentures F remain outstanding, NIS 1,250 million so long as debentures C and D remain outstanding, and USD 600 million so long as debentures G and H remain outstanding.

As of March 31, 2025, the company’s equity amounted to NIS 5,916 million (USD 1,591 million).

Net financial debt to net CAP

The ratio of standalone net financial debt to net CAP shall not exceed 70% for two consecutive financial periods so long as debentures F remain outstanding and shall not exceed 65% for two consecutive financial periods so long as debentures C, D, G and H remain outstanding.

As of March 31, 2025, the net financial debt to net CAP ratio, as defined above, stands at 36%.

Net financial debt to EBITDA

So long as debentures F remain outstanding, standalone financial debt shall not exceed NIS 10 million, and the consolidated financial debt to EBITDA ratio shall not exceed 18 for more than two consecutive financial periods.

For as long as debentures C and D remain outstanding, the consolidated financial debt to EBITDA ratio shall not exceed 15 for more than two consecutive financial periods.

For as long as debentures G and H remain outstanding, the consolidated financial debt to EBITDA ratio shall not exceed 17 for more than two consecutive financial periods.

As of March 31, 2025, the net financial debt to EBITDA ratio, as defined above, stands at 8.

Equity to balance sheet

The standalone equity to total balance sheet ratio shall be maintained at no less than 20% ,25% and 28%, respectively, for two consecutive financial periods for as long as debentures F, debentures C and D and debentures G and H remain outstanding.

As of March 31, 2025, the equity to balance sheet ratio, as defined above, stands at 55%.

An infographic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/94346603-d361-4e84-aabc-62db3e22c10c

MIL-OSI: Carlos Scarpero Helps Veterans with Bad Credit Unlock the Door to Homeownership with VA Loans

Source: GlobeNewswire (MIL-OSI)

Dayton, Ohio, May 06, 2025 (GLOBE NEWSWIRE) — Veterans facing credit challenges now have a powerful ally in the mortgage process. Carlos Scarpero, a trusted mortgage broker based in Dayton, Ohio, is offering expert guidance to help veterans secure VA home loans, even with poor credit.

Carlos Scarpero, a mortgage broker with Edge Home Finance

In his newly published article, “How to Get a VA Home Loan with Bad Credit,” Scarpero outlines practical steps for veterans to qualify for home financing using their VA benefits, dispelling common myths about credit score requirements and loan eligibility.

“Many veterans assume bad credit disqualifies them from homeownership,” says Scarpero. “That’s simply not true. With the right guidance and a little planning, it’s possible to buy a home—even with less-than-perfect credit.”

Key Insights from the Guide:
No Minimum Credit Score Set by the VA
The VA doesn’t require a minimum credit score for home loans. However, individual lenders often set their own thresholds, commonly around 580 to 620.

Lender Flexibility Exists
Some lenders may consider applicants with scores as low as 500, especially if other financial strengths, such as stable income or savings, are present.

Manual Underwriting as an Option
For borrowers with unique financial circumstances or limited credit history, manual underwriting allows lenders to evaluate alternative data like rent and utility payment history.

Handling Collections and Financial Setbacks
Scarpero details how medical collections, child support, credit card debt, and IRS obligations are treated during the VA loan process—and how to address them effectively.

Post-Bankruptcy and Foreclosure Recovery
Veterans with a history of bankruptcy or foreclosure may still qualify for a VA loan, often with shorter waiting periods compared to other mortgage options.

About Carlos Scarpero

Carlos Scarpero is a licensed mortgage broker with Edge Home Finance, specializing in VA and non-traditional home loans. With over a decade of experience and a passion for helping veterans achieve homeownership, he serves clients throughout Ohio, including Dayton, Cincinnati, and Columbus.

Scarpero’s approach is built on transparency, education, and tailored solutions—especially for those who may feel left behind by traditional lenders.

To read the full guide or get started with a VA loan, visit:
www.scarpero.com/how-to-get-a-va-home-loan-with-bad-credit

MIL-OSI United Nations: 6 May 2025 Departmental update Working together to make asthma a global health priority

Source: World Health Organisation

To mark World Asthma Day 2025, the Global Asthma Network (GAN) launches the Global Asthma Report 2025: Patient Stories, a compelling collection of stories from people living with asthma around the world. The report shines a spotlight on the daily challenges individuals face – from delayed diagnoses to unaffordable or unavailable inhaled medicines – as well as the life-changing benefits of timely and effective treatment.

More than 250 million people worldwide are living with asthma – a significant global health burden. This year’s World Asthma Day theme, “Make inhaled treatments accessible for all,” reinforces the urgency of ensuring universal access to affordable, quality-assured asthma medicines. Despite decades of evidence showing that inhaled treatments — including bronchodilators and inhaled corticosteroids — reduce symptoms, improve quality of life, and prevent deaths, access remains inadequate in many low- and middle-income countries.

Asthma inhalers are included in the WHO Model List of Essential Medicines, are core medicines in the WHO package of essential noncommunicable disease (NCD) interventions for primary health care, and are included in the WHO “Best Buys” for NCDs.

The Forum of International Respiratory Societies (FIRS) is launching a campaign to raise awareness of these gaps and is calling on Heads of State and global health leaders to invest in solutions that make inhaled treatments available to everyone who needs them.

The upcoming fourth United Nations High-Level Meeting on NCDs, to be held in September 2025, offers a pivotal moment for Heads of State and Government, UN partners, Ministers of Health, civil society and donors to strengthen existing commitments to reduce premature mortality from NCDs by one third by 2030.

“By prioritizing equitable access to medicines and strengthening primary healthcare systems, countries can not only meet global NCD targets but also enjoy significant economic and social returns,” said José Luis Castro, WHO Director General’s Special Envoy for Chronic Respiratory Diseases. “Improved asthma care leads to better health outcomes, enhanced education performance, and increased participation in the labour market.”

WHO continues to lead global efforts to address chronic respiratory diseases. Through its Global Alliance against Chronic Respiratory Diseases (GARD), WHO works with partners such as FIRS, GAN and the Global Initiative for Asthma (GINA), to strengthen global advocacy and technical support for countries.

“The work of our longstanding, valued partners is vital,” said Dr Sarah Rylance, technical lead for chronic respiratory diseases at WHO. “Together, we are amplifying critical evidence-based messages and driving progress to ensure that every person with asthma – no matter where they live – can breathe freely.”

WHO is currently updating the guidance on the diagnosis and management of asthma in primary care. Up-to-date, evidence-based global recommendations are essential to support countries to prioritise effective asthma treatment within their national health system planning and policy development.

MIL OSI United Nations News –

MIL-OSI United Kingdom: SNP urged to back Green action on property-hoarding tax avoiders

Source: Scottish Greens

06 May 2025 Finance

Homes are too important to be treated as toys for millionaires.

The Scottish Government has been urged to back Green plans to crack down on property-hoarding tax avoiders which are due to be voted on today in Parliament.

The proposals, which will be presented by Scottish Green MSP Ross Greer, would end the tax break currently enjoyed by two types of companies infamous for buying up and hoarding property – Open-ended Investment Companies and Residential Property Holding Companies.

Mr Greer’s amendments to the Housing (Scotland) Bill would see both company types lose their exemption from paying Land and Buildings Transaction Tax when buying property.

Greer will also propose an additional charge for overseas buyers to crack down on property speculators based in tax havens buying up homes and properties across Scotland.

These efforts come after a report earlier this year found that the UK had become the world’s top destination for overseas property investment firms.

Mr Greer said:

“Everyone agrees that Scotland is in a housing emergency, but the Government still allows these companies to buy up properties without paying the tax that anyone else would when buying a home.

“This is one of the many factors which make it so hard for young people to get their first home in particular. They would need to pay tax, but the companies they could be bidding against do not, so can make a higher offer.

“These companies are financial leeches only interested in making a profit, even if it means buying up properties and leaving them empty for months or even years at a time.

“Scotland can be a society where everyone has a warm, safe and affordable place to call home, but that won’t happen for as long as so much of the market is tilted in favour of tax avoiders and the ultra-wealthy.

“People have had enough of the international super rich and dodgy businesses treating Scottish homes like cash cows. My proposals would force them to either pay their fair share, or make way and free up more homes for people and families who really need them.”

MIL OSI United Kingdom –

MIL-OSI: International Petroleum Corporation Announces First Quarter 2025 Financial and Operational Results

Source: GlobeNewswire (MIL-OSI)

TORONTO, May 06, 2025 (GLOBE NEWSWIRE) — William Lundin, IPC’s President and Chief Executive Officer, comments: “We are pleased to announce another strong quarter of operational and financial performance for Q1 2025. IPC achieved an average net daily production during the quarter of 44,400 barrels of oil equivalent per day (boepd). Our results during the quarter were in line with the 2025 guidance announced at our Capital Markets Day in February as we continue to execute according to plan across our operations in Canada, Malaysia and France. Notably, the transformational Blackrod Phase 1 development project in Canada has progressed substantially during the quarter and forecast first oil is maintained with the original project sanction guidance for late 2026. We also continued with purchases of IPC common shares under the normal course issuer bid, having completed approximately 60% of the current 2024/2025 program between December 2024 to March 2025.”

Q1 2025 Business Highlights

Average net production of approximately 44,400 boepd for the first quarter of 2025, within the guidance range for the period (52% heavy crude oil, 15% light and medium crude oil and 33% natural gas).⁽¹⁾
Continued progressing Phase 1 development activity as well as future phase resource maturation works at the Blackrod asset.
At Onion Lake Thermal, all four planned production infill wells and the final Pad L well pair have been successfully drilled.
3.9 million IPC common shares purchased and cancelled during Q1 2025 and continuing with target to complete the full 2024/2025 NCIB this year.

Q1 2025 Financial Highlights

Operating costs per boe of USD 17.3 for Q1 2025, in line with guidance.⁽³⁾
Operating cash flow (OCF) generation of MUSD 75 for Q1 2025, in line with guidance.⁽³⁾
Capital and decommissioning expenditures of MUSD 99 for Q1 2025, in line with guidance.
Free cash flow (FCF) generation for Q1 2025 amounted to MUSD -43 (MUSD 37 pre-Blackrod capital expenditure).⁽³⁾
Gross cash of MUSD 140 and net debt of MUSD 314 as at March 31, 2025.⁽³⁾
Net result of MUSD 16 for Q1 2025.

Reserves and Resources

Total 2P reserves as at December 31, 2024 of 493 MMboe, with a reserve life index (RLI) of 31 years.⁽¹⁾⁽²⁾
Contingent resources (best estimate, unrisked) as at December 31, 2024 of 1,107 MMboe.⁽¹⁾⁽²⁾
2P reserves net asset value (NAV) as at December 31, 2024 of MUSD 3,083 (10% discount rate).⁽¹⁾⁽²⁾

2025 Annual Guidance

Full year 2025 average net production guidance range forecast maintained at 43,000 to 45,000 boepd.⁽¹⁾
Full year 2025 operating costs guidance range forecast maintained at USD 18 to 19 per boe.⁽³⁾
Full year 2025 OCF revised guidance estimated at between MUSD 240 and 270 (assuming Brent USD 60 to 75 per barrel for the remainder of 2025) from previous guidance of between MUSD 210 and 280 (assuming Brent USD 65 to 85 per barrel).⁽³⁾⁽⁴⁾
Full year 2025 capital and decommissioning expenditures guidance forecast maintained at MUSD 320.
Full year 2025 FCF revised guidance estimated at between MUSD -135 and -110 (assuming Brent USD 60 to 75 per barrel for the remainder of 2025) from previous guidance of between MUSD -150 and -80 (assuming Brent USD 65 to 85 per barrel), after taking into account MUSD 230 of forecast full year 2025 capital expenditures relating to the Blackrod asset.⁽³⁾⁽⁴⁾

	Three months ended March 31
USD Thousands	2025	2024
Revenue	178,492	206,419
Gross profit	44,149	55,184
Net result	16,231	33,719
Operating cash flow⁽³⁾	74,790	89,301
Free cash flow⁽³⁾	(43,172)	(43,311)
EBITDA⁽³⁾	70,946	87,020
Net cash/(debt)⁽³⁾	(314,255)	(60,572)

During the first quarter of 2025, oil prices were relatively stable, with Brent prices averaging just below USD 76 per barrel. Following the quarter, commodity prices pulled back with spot Brent rates falling to USD 60 per barrel in April 2025. The physical crude market remained tight throughout the first quarter, prompting OPEC and the OPEC+ group to increase supply ahead of expectations. The timing of the supply increases coincided with the United States proposing harsh tariffs to countries deemed in a trade surplus of US goods. These two events have impacted future crude supply and demand outlooks, in turn weighing on spot and future oil benchmark prices. Despite the poor market sentiment, global inventories remain below the 5-year average, high geopolitical tensions persist, non-OPEC 2025 oil production (namely, in the US) is unlikely to grow at current prices, and US Federal Reserve Bank rate cuts are likely to occur in the near future. IPC prudently supplemented downside protection measures at the beginning of the first quarter of 2025 through financial swap hedging arrangements which in total represent nearly 40% of our forecast 2025 oil production at around USD 76 and USD 71 per barrel for Dated Brent and West Texas Intermediate (WTI), respectively, for the remainder of 2025.

In Canada, WTI to Western Canadian Select (WCS) crude price differentials during the first quarter of 2025 averaged just under USD 13 per barrel, with spot differentials decreasing to around USD 9 per barrel in April 2025. The Western Canadian Sedimentary Basin (WCSB) petroleum producers have greatly benefited from the TMX pipeline expansion with differentials tightening to levels not seen since 2020. There are currently no tariffs on Canadian crude exports to the United States, which remain covered by the US Mexico Canada free trade agreement. IPC has hedged the WTI/WCS differential for approximately 50% of our forecast 2025 Canadian oil production at USD 14 per barrel for 2025.

Natural gas markets in Canada for the first quarter of 2025 remained weak, given the softer than average winter weather conditions and high natural gas storage levels. The average AECO gas price was CAD 2.1 per Mcf for the first quarter of 2025. The forward strip implies improved pricing for Canadian gas benchmark prices, driven by the pending startup of the West Coast LNG Canada project later this year. Approximately 50% of our net long exposure is hedged at CAD 2.4 per Mcf to end October 2025, dropping to around 15% for November and December at CAD 2.6 per mcf.

First Quarter 2025 Highlights and Full Year 2025 Guidance

During the first quarter of 2025, our portfolio delivered average net production of 44,400 boepd, in line with guidance. Operational performance from our producing assets was strong to start the year as high facility and well uptimes were achieved. Drilling activity commenced in the first quarter of 2025 at Onion Lake Thermal, which aims to sustain production levels at the asset for 2025. In Malaysia, drilling and well maintenance works are planned to start in the second quarter of 2025, in line with plan. We maintain the full year 2025 average net production guidance range of 43,000 to 45,000 boepd.⁽¹⁾

Our operating costs per boe for the first quarter of 2025 was USD 17.3, in line with guidance. Full year 2025 operating expenditure guidance of USD 18.0 to 19.0 per boe remains unchanged.⁽³⁾

Operating cash flow (OCF) generation for the first quarter of 2025 was MUSD 75. Full year 2025 OCF guidance is tightened to MUSD 240 to 270 (assuming Brent USD 60 to 75 per barrel for the remainder of 2025).⁽³⁾⁽⁴⁾

Capital and decommissioning expenditure for the first quarter of 2025 was MUSD 99 in line with guidance. Full year 2025 capital and decommissioning expenditure of MUSD 320 is maintained.

Free cash flow (FCF) generation was MUSD -43 (MUSD 37 pre-Blackrod capital expenditure) during the first quarter of 2025. Full year 2025 FCF guidance is tightened to MUSD -135 to -110 (assuming Brent USD 60 to 75 per barrel for the remainder of 2025) after taking into account MUSD 320 of forecast full year 2025 capital expenditures (including MUSD 230 relating to the Blackrod asset).⁽³⁾⁽⁴⁾

As at March 31, 2025, IPC’s net debt position was MUSD 314, from a net debt position of MUSD 209 as at December 31, 2024, mainly driven by the funding of forecast capital expenditures and the continuing share repurchase program (NCIB). Gross cash on the balance sheet as at March 31, 2025 amounts to MUSD 140 and IPC has access to an undrawn Canadian credit facility of greater than 130 MUSD. The access to liquidity supports IPC to follow through on its key strategic objectives of enhancing stakeholder value through organic growth, stakeholder returns, and pursuing value adding M&A.⁽³⁾

Blackrod

During the first quarter of 2025, IPC continued to advance the Phase 1 development of the Blackrod asset. Growth capital expenditure to first oil is maintained at MUSD 850. First oil of the Phase 1 development is estimated to be in late 2026, with forecast net production of 30,000 boepd by 2028. IPC forecasts capital expenditure in 2025 at the Blackrod asset of MUSD 230, of which MUSD 77 was invested in the Phase 1 development project during Q1 2025. Since the transformational organic growth project was sanctioned in early 2023, MUSD 669, or approximately 80% of the total multi-year project capital budget, has been incurred.⁽¹⁾

Project activities for the multi-year Blackrod Phase 1 development have progressed according to plan. Engineering, procurement and fabrication is substantially complete with greater than 90% of all facility modules delivered to site. Equipment installation, piping inter-connects, electrical and instrumentation are the key areas of focus for construction at the Central Processing Facility (CPF) and well pad facilities.

Resource maturation drilling for future phase expansion considerations took place during Q1 2025. Commercial operational readiness planning has ramped up in line with our progressive turnover strategy to ensure a seamless transition from build to start-up. IPC intends to fund the remaining Blackrod capital expenditure with forecast cash flow generated by its operations, cash on hand and drawing under the existing Canadian credit facility if needed.⁽³⁾

Stakeholder Returns: Normal Course Issuer Bid

In Q4 2024, IPC announced the renewal of the NCIB, with the ability to repurchase up to approximately 7.5 million common shares over the period of December 5, 2024 to December 4, 2025. Under the 2024/2025 NCIB, IPC repurchased and cancelled approximately 0.8 million common shares in December 2024, 3.7 million common shares during Q1 2025, and a further 0.2 million common shares purchased under other exemptions in Canada. The average price of common shares purchased under the 2024/2025 NCIB during Q1 2025 was SEK 146 / CAD 20 per share.

As at March 31, 2025, IPC had a total of 115,176,514 common shares issued and outstanding and IPC held no common shares in treasury. As at April 30, 2025, IPC had a total of 114,248,119 common shares issued and outstanding and IPC held no common shares in treasury.

Notwithstanding the final major capital investment year at Blackrod in 2025, IPC had purchased and cancelled 73% of the maximum 7.5 million common shares allowed under the 2024/2025 NCIB by the end of April 2025 and intends to purchase and cancel the remaining 2.0 million common shares under that program in 2025. This would result in the cancellation of 6.2% of common shares outstanding as at the beginning of December 2024. IPC continues to believe that reducing the number of shares outstanding in combination with investing in long-life production growth at the Blackrod project will prove to be a winning formula for our stakeholders.

Environmental, Social and Governance (ESG) Performance

During the first quarter of 2025, IPC recorded no material safety or environmental incidents.

As previously announced, IPC targets a reduction of our net GHG emissions intensity by the end of 2025 to 50% of IPC’s 2019 baseline and IPC remains on track to achieve this reduction. IPC has also made a commitment to maintain 2025 levels of 20 kg CO₂/boe through to the end of 2028.⁽⁵⁾

Notes:

	(1)	See “Supplemental Information regarding Product Types” in “Reserves and Resources Advisory” below. See also the annual information form for the year ended December 31, 2024 (AIF) available on IPC’s website at www.international-petroleum.com and under IPC’s profile on SEDAR+ at www.sedarplus.ca.
	(2)	See “Reserves and Resources Advisory“ below. Further information with respect to IPC’s reserves, contingent resources and estimates of future net revenue, including assumptions relating to the calculation of net present value (NPV), are described in the AIF. NAV is calculated as NPV less net debt of USD 209 million as at December 31, 2024.
	(3)	Non-IFRS measures, see “Non-IFRS Measures” below and in the MD&A.
	(4)	OCF and FCF forecasts at Brent USD 60 and 70 per barrel assume Brent to WTI differential of USD 3 and 5 per barrel, respectively, and WTI to WCS differential of USD 10 and 15 per barrel, respectively, for the remainder of 2025. OCF and FCF forecasts assume gas price on average of CAD 2.25 per Mcf for the remainder of 2025.
	(5)	Emissions intensity is the ratio between oil and gas production and the associated carbon emissions, and net emissions intensity reflects gross emissions less operational emission reductions and carbon offsets.

International Petroleum Corp. (IPC) is an international oil and gas exploration and production company with a high quality portfolio of assets located in Canada, Malaysia and France, providing a solid foundation for organic and inorganic growth. IPC is a member of the Lundin Group of Companies. IPC is incorporated in Canada and IPC’s shares are listed on the Toronto Stock Exchange (TSX) and the Nasdaq Stockholm exchange under the symbol “IPCO”.

For further information, please contact:

Rebecca Gordon SVP Corporate Planning and Investor Relations rebecca.gordon@international-petroleum.com Tel: +41 22 595 10 50	Or	Robert Eriksson Media Manager reriksson@rive6.ch Tel: +46 701 11 26 15

This information is information that International Petroleum Corporation is required to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07:30 CEST on May 6, 2025. The Corporation’s unaudited interim condensed consolidated financial statements (Financial Statements) and management’s discussion and analysis (MD&A) for the three months ended March 31, 2025 have been filed on SEDAR+ (www.sedarplus.ca) and are also available on the Corporation’s website (www.international-petroleum.com).

Forward-Looking Statements
This press release contains statements and information which constitute “forward-looking statements” or “forward-looking information” (within the meaning of applicable securities legislation). Such statements and information (together, “forward-looking statements”) relate to future events, including the Corporation’s future performance, business prospects or opportunities. Actual results may differ materially from those expressed or implied by forward-looking statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Forward-looking statements speak only as of the date of this press release, unless otherwise indicated. IPC does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.

All statements other than statements of historical fact may be forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, forecasts, guidance, budgets, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “forecast”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “budget” and similar expressions) are not statements of historical fact and may be “forward-looking statements”.

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

2025 production ranges (including total daily average production), production composition, cash flows, operating costs and capital and decommissioning expenditure estimates;
Estimates of future production, cash flows, operating costs and capital expenditures that are based on IPC’s current business plans and assumptions regarding the business environment, which are subject to change;
IPC’s financial and operational flexibility to navigate the Corporation through periods of volatile commodity prices;
The ability to fully fund future expenditures from cash flows and current borrowing capacity;
IPC’s intention and ability to continue to implement its strategies to build long-term shareholder value;
The ability of IPC’s portfolio of assets to provide a solid foundation for organic and inorganic growth;
The continued facility uptime and reservoir performance in IPC’s areas of operation;
Development of the Blackrod project in Canada, including estimates of resource volumes, future production, timing, regulatory approvals, third party commercial arrangements, breakeven oil prices and net present values;
Current and future production performance, operations and development potential of the Onion Lake Thermal, Suffield, Brooks, Ferguson and Mooney operations, including the timing and success of future oil and gas drilling and optimization programs;
The potential improvement in the Canadian oil egress situation and IPC’s ability to benefit from any such improvements;
The ability to maintain current and forecast production in France and Malaysia;
The intention and ability of IPC to acquire further Common Shares under the NCIB, including the timing of any such purchases;
The return of value to IPC’s shareholders as a result of the NCIB;
IPC’s ability to implement its greenhouse gas (GHG) emissions intensity and climate strategies and to achieve its net GHG emissions intensity reduction targets;
IPC’s ability to implement projects to reduce net emissions intensity, including potential carbon capture and storage;
Estimates of reserves and contingent resources;
The ability to generate free cash flows and use that cash to repay debt;
IPC’s continued access to its existing credit facilities, including current financial headroom, on terms acceptable to the Corporation;
IPC’s ability to identify and complete future acquisitions;
Expectations regarding the oil and gas industry in Canada, Malaysia and France, including assumptions regarding future royalty rates, regulatory approvals, legislative changes, tariffs, and ongoing projects and their expected completion; and
Future drilling and other exploration and development activities.

Statements relating to “reserves” and “contingent resources” are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and that the reserves and resources can be profitably produced in the future. Ultimate recovery of reserves or resources is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

The forward-looking statements are based on certain key expectations and assumptions made by IPC, including expectations and assumptions concerning: the potential impact of tariffs implemented in 2025 by the U.S. and Canadian governments and that other than the tariffs that have been implemented, neither the U.S. nor Canada (i) increases the rate or scope of such tariffs, or imposes new tariffs, on the import of goods from one country to the other, including on oil and natural gas, and/or (ii) imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas; prevailing commodity prices and currency exchange rates; applicable royalty rates and tax laws; interest rates; future well production rates and reserve and contingent resource volumes; operating costs; our ability to maintain our existing credit ratings; our ability to achieve our performance targets; the timing of receipt of regulatory approvals; the performance of existing wells; the success obtained in drilling new wells; anticipated timing and results of capital expenditures; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the successful completion of acquisitions and dispositions and that we will be able to implement our standards, controls, procedures and policies in respect of any acquisitions and realize the expected synergies on the anticipated timeline or at all; the benefits of acquisitions; the state of the economy and the exploration and production business in the jurisdictions in which IPC operates and globally; the availability and cost of financing, labour and services; our intention to complete share repurchases under our normal course issuer bid program, including the funding of such share repurchases, existing and future market conditions, including with respect to the price of our common shares, and compliance with respect to applicable limitations under securities laws and regulations and stock exchange policies; and the ability to market crude oil, natural gas and natural gas liquids successfully.

Although IPC believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because IPC can give no assurances that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.

These include, but are not limited to: general global economic, market and business conditions; the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to reserves, resources, production, revenues, costs and expenses; health, safety and environmental risks; commodity price fluctuations; interest rate and exchange rate fluctuations; marketing and transportation; loss of markets; environmental and climate-related risks; competition; innovation and cybersecurity risks related to our systems, including our costs of addressing or mitigating such risks; the ability to attract, engage and retain skilled employees; incorrect assessment of the value of acquisitions; failure to complete or realize the anticipated benefits of acquisitions or dispositions; the ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; geopolitical conflicts, including the war between Ukraine and Russia and the conflict in the Middle East, and their potential impact on, among other things, global market conditions; political or economic developments, including, without limitation, the risk that (i) one or both of the U.S. and Canadian governments increases the rate or scope of tariffs implemented in 2025, or imposes new tariffs on the import of goods from one country to the other, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed by the U.S. on other countries and responses thereto could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Corporation; and changes in legislation, including but not limited to tax laws, royalties, environmental and abandonment regulations. Readers are cautioned that the foregoing list of factors is not exhaustive.

Additional information on these and other factors that could affect IPC, or its operations or financial results, are included in the MD&A (See “Risk Factors”, “Cautionary Statement Regarding Forward-Looking Information” and “Reserves and Resources Advisory”), the Corporation’s Annual Information Form (AIF) for the year ended December 31, 2024, (See “Cautionary Statement Regarding Forward-Looking Information”, “Reserves and Resources Advisory” and “Risk Factors”) and other reports on file with applicable securities regulatory authorities, including previous financial reports, management’s discussion and analysis and material change reports, which may be accessed through the SEDAR+ website (www.sedarplus.ca) or IPC’s website (www.international-petroleum.com).

Management of IPC approved the production, operating costs, operating cash flow, capital and decommissioning expenditures and free cash flow guidance and estimates contained herein as of the date of this press release. The purpose of these guidance and estimates is to assist readers in understanding IPC’s expected and targeted financial results, and this information may not be appropriate for other purposes.

Estimated production and FCF generation are based on IPC’s current business plans over the periods of 2025 to 2029 and 2030 to 2034, less net debt of USD 209 million as at December 31, 2024, with assumptions based on the reports of IPC’s independent reserves evaluators, and including certain corporate adjustments relating to estimated general and administration costs and hedging, and excluding shareholder distributions and financing costs. Assumptions include average net production of approximately 57 Mboepd over the period of 2025 to 2029, average net production of approximately 63 Mboepd over the period of 2030 to 2034, average Brent oil prices of USD 75 to 95 per bbl escalating by 2% per year, and average Brent to Western Canadian Select differentials and average gas prices as estimated by IPC’s independent reserves evaluator and as further described in the AIF. IPC’s current business plans and assumptions, and the business environment, are subject to change. Actual results may differ materially from forward-looking estimates and forecasts.

Non-IFRS Measures
References are made in this press release to “operating cash flow” (OCF), “free cash flow” (FCF), “Earnings Before Interest, Tax, Depreciation and Amortization” (EBITDA), “operating costs” and “net debt”/”net cash”, which are not generally accepted accounting measures under International Financial Reporting Standards (IFRS) and do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with similar measures presented by other public companies. Non-IFRS measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.

The definition of each non-IFRS measure is presented in IPC’s MD&A (See “Non-IFRS Measures” therein).

Operating cash flow
The following table sets out how operating cash flow is calculated from figures shown in the Financial Statements:

	Three months ended March 31
USD Thousands	2025	2024
Revenue	178,492	206,419
Production costs and net sales of diluent to third party ¹	(103,188)	(115,745)
Current tax	(514)	(1,373)
Operating cash flow	74,790	89,301

¹Includes net sales of diluent to third party amounting to USD 191 thousand for the first quarter of 2025.

Free cash flow
The following table sets out how free cash flow is calculated from figures shown in the Financial Statements:

	Three months ended March 31
USD Thousands	2025	2024
Operating cash flow – see above	74,790	89,301
Capital expenditures	(98,886)	(125,256)
Abandonment and farm-in expenditures¹	(321)	(122)
General, administration and depreciation expenses before depreciation²	(4,358)	(3,653)
Cash financial items³	(14,397)	(3,581)
Free cash flow	(43,172)	(43,311)

¹ See note 16 to the Financial Statements
² Depreciation is not specifically disclosed in the Financial Statements
³ See notes 4 and 5 to the Financial Statements

EBITDA
The following table sets out the reconciliation from net result from the consolidated statement of operations to EBITDA:

	Three months ended March 31
USD Thousands	2025	2024
Net result	16,231	33,719
Net financial items	18,855	9,770
Income tax	4,679	7,746
Depletion and decommissioning costs	29,016	33,153
Depreciation of other tangible fixed assets	1,917	2,262
Exploration and business development costs	31	75
Sale of assets ¹	(94)	–
Depreciation included in general, administration and depreciation expenses ²	311	295
EBITDA	70,946	87,020

¹ Sale of assets is included under “Other income/(expense)” but not specifically disclosed in the Financial Statements
² Item is not shown in the Financial Statements

Operating costs
The following table sets out how operating costs is calculated:

	Three months ended March 31
USD Thousands	2025	2024
Production costs	103,379	115,745
Cost of blending	(37,726)	(45,206)
Change in inventory position	3,500	5,277
Operating costs	69,153	75,816

Net cash/(debt)
The following table sets out how net cash / (debt) is calculated from figures shown in the Financial Statements:

USD Thousands	March 31, 2025	December 31, 2024
Bank loans	(4,449)	(5,121)
Bonds¹	(450,000)	(450,000)
Cash and cash equivalents	140,194	246,593
Net cash/(debt)	(314,255)	(208,528)

¹ The bond amount represents the redeemable value at maturity (February 2027).

Reserves and Resources Advisory
This press release contains references to estimates of gross and net reserves and resources attributed to the Corporation’s oil and gas assets. For additional information with respect to such reserves and resources, refer to “Reserves and Resources Advisory” in the MD&A. Light, medium and heavy crude oil reserves/resources disclosed in this press release include solution gas and other by-products. Also see “Supplemental Information regarding Product Types” below.

Reserve estimates, contingent resource estimates and estimates of future net revenue in respect of IPC’s oil and gas assets in Canada are effective as of December 31, 2024, and are included in the reports prepared by Sproule Associates Limited (Sproule), an independent qualified reserves evaluator, in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (the COGE Handbook) and using Sproule’s December 31, 2024 price forecasts.

Reserve estimates, contingent resource estimates and estimates of future net revenue in respect of IPC’s oil and gas assets in France and Malaysia are effective as of December 31, 2024, and are included in the report prepared by ERC Equipoise Ltd. (ERCE), an independent qualified reserves auditor, in accordance with NI 51-101 and the COGE Handbook, and using Sproule’s December 31, 2024 price forecasts.

The price forecasts used in the Sproule and ERCE reports are available on the website of Sproule (sproule.com) and are contained in the AIF. These price forecasts are as at December 31, 2024 and may not be reflective of current and future forecast commodity prices.

The reserve life index (RLI) is calculated by dividing the 2P reserves of 493 MMboe as at December 31, 2024 by the mid-point of the 2025 CMD production guidance of 43,000 to 45,000 boepd.

IPC uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). A BOE conversion ratio of 6:1 is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a 6:1 conversion basis may be misleading as an indication of value.

Supplemental Information regarding Product Types

The following table is intended to provide supplemental information about the product type composition of IPC’s net average daily production figures provided in this press release:


	Heavy Crude Oil (Mbopd)	Light and Medium Crude Oil (Mbopd)	Conventional Natural Gas (per day)	Total (Mboepd)
Three months ended
March 31, 2025	23.2	6.5	88.2 MMcf (14.7 Mboe)	44.4
March 31, 2024	24.9	7.9	96.0 MMcf (16.0 Mboe)	48.8
Year ended
December 31, 2024	23.9	7.7	95.1 MMcf (15.8 Mboe)	47.4

This press release also makes reference to IPC’s forecast total average daily production of 43,000 to 45,000 boepd for 2025. IPC estimates that approximately 52% of that production will be comprised of heavy oil, approximately 15% will be comprised of light and medium crude oil and approximately 33% will be comprised of conventional natural gas.

Currency
All dollar amounts in this press release are expressed in United States dollars, except where otherwise noted. References herein to USD mean United States dollars and to MUSD mean millions of United States dollars. References herein to CAD mean Canadian dollars.

MIL-OSI: Report for the three months ended 31 March 2025

Source: GlobeNewswire (MIL-OSI)

Highlights

Power generation amounted to 251 GWh for the first quarter 2025, being at the lower end of the outlook range, mainly as a result of weather impact and production curtailments related to the provision of ancillary services, for which the Company receives compensation.
Reached the ready-to-permit milestone and launched a sales process for a 98 MW solar project in Germany.
Reached the ready-to-permit milestone on a second solar and battery project in the UK, bringing the total volume of ready-to-permit projects to 2.5 GW, with the sales process awaiting the conclusion of the ongoing grid connections reform.

Consolidated financials

Cash flows from operating activities amounted to MEUR 0.6.

Proportionate financials

Achieved electricity price amounted to EUR 40 per MWh, which resulted in a proportionate EBITDA of MEUR 0.4.
Proportionate net debt of MEUR 68.6, with significant liquidity headroom available through the MEUR 170 revolving credit facility.

Financial Summary

Orrön Energy owns renewables assets directly and through joint ventures and associated companies and is presenting proportionate financials in addition to the consolidated financial reporting under IFRS to show the net ownership and related results of these assets. The purpose of the proportionate reporting is to give an enhanced insight into the Company’s operational and financial results.

Financial performance	Q1
MEUR	2025	2024
Revenue	9.3	12.3
EBITDA	– 0.9	3.1
Operating profit (EBIT)	– 5.2	– 1.0
Net result	– 4.0	– 2.6
Earnings per share – EUR	– 0.01	– 0.01
Earnings per share diluted – EUR	– 0.01	– 0.01
Alternative performance measures
Proportionate financials¹
Power generation (GWh)	251	274
Average price achieved per MWh – EUR	40	49
Operating expenses per MWh – EUR	20	15
Revenue	10.1	13.5
EBITDA	0.4	5.1
Operating profit (EBIT)	– 4.9	–
¹ Proportionate financials represent Orrön Energy’s proportionate ownership (net) of assets and related financial results, including joint ventures. For more details see section Key Financial Data in the Q1 Report 2025.

Comment from Daniel Fitzgerald, CEO of Orrön Energy
“Our greenfield platform is now well established after two years of investment, recruitment and project delivery. We have launched our first sales process in Germany for a 98 MW agri-PV project, and have around 2.5 GW of solar and battery projects in the UK at the ready-to-permit stage awaiting a final resolution from the ongoing grid connections reform. Over the course of 2025 and 2026, we expect to start monetising the first of these projects and I look forward to seeing the results of the hard work and dedication of the teams creating these opportunities. Our UK projects are amongst some of the largest solar projects in the country to date, and will make a significant contribution to the UK government’s ambition to reach net zero through renewable investment and decarbonisation of the power systems. The UK grid connections reform is still underway, and we expect to receive feedback during the fall of 2025, after which we expect to resume our sales process. It is unfortunate that the reform was launched mid-way through our sales process, and although we will see a delay, the value and interest from investors remains strong, as does the UK government’s support for projects such as ours. We expect to share more details on the outcome of the ongoing reform and our progress later this year.

Our proportionate power generation in the first quarter amounted to 251 GWh, which was at the lower end of our outlook range, primarily due to weather conditions and curtailments linked to the ancillary services provided at our MLK windfarm. We are actively working to qualify additional sites for ancillary services, where we receive compensation when activated. This, alongside voluntary curtailments during periods of low electricity pricing, forms part of a broader set of measures we introduced last year to optimise our revenues and mitigate the ongoing volatility in power markets. Nordic electricity markets remain challenging with low prices and high volatility, and we are seeing that impact not only in our business, but across the sector with very few new renewable energy projects sanctioned.

Financially resilient
We remain in a strong financial position, with MEUR 100 of liquidity headroom, and have the ability to manage the pace of our investments as markets evolve. Proportionate revenues and other income for the quarter amounted to MEUR 10.2, and proportionate EBITDA was MEUR 0.4, reflecting the impact of electricity prices during the quarter. Project sales from our greenfield portfolio are expected to commence during the course of this year which should lead to a positive impact on our financial results and EBITDA. Our cost base will further reduce following the conclusion of the Sudan trial in the second quarter of 2026, strengthening our financial position going forward. Electricity prices are set to remain volatile, and future revenues from power sales will remain subject to the underlying Nordic electricity prices, which have been at sustained low levels for the last quarters. I expect to see this improve in the medium term given the lack of new power generation being built, especially in Sweden.

Looking ahead
The Company is continuing to deliver in line with our strategy to build a portfolio of producing assets and a pipeline of large-scale greenfield projects. We are making good progress on all fronts with optimisation and consolidation in our producing asset base and continued maturation in our project pipeline. We are supported by a highly skilled and committed team in the Nordics, and a dynamic development team driving our greenfield growth in the UK, Germany and France.

The long-term outlook for renewable energy remains robust, underpinned by strong policy support, increasing electrification, and growing demand for low-carbon solutions across Europe. As we are investing in onshore technologies with the lowest breakeven price, I am confident that our portfolio is well positioned to deliver long-term value in this space and provide a much-needed new supply of low-cost energy to society. European electricity prices, especially in Germany and the UK, remain at elevated levels, well above the breakeven cost for new renewable projects to be sanctioned, which stands our greenfield portfolio in good shape for delivering long-term returns.

I would like to once again thank our shareholders for your continued support, and look forward to further updates during 2025.”

Webcast
Listen to Daniel Fitzgerald, CEO and Espen Hennie, CFO commenting on the report and presenting the latest developments in Orrön Energy and its future growth strategy at a webcast today at 14.00 CEST. The presentation will be followed by a question-and-answer session.

Follow the presentation live on the below webcast link:
https://orron-energy.events.inderes.com/q1-report-2025

For further information, please contact:

Robert Eriksson
Corporate Affairs and Investor Relations
Tel: +46 701 11 26 15
robert.eriksson@orron.com

Jenny Sandström
Communications Lead
Tel: +41 79 431 63 68
jenny.sandstrom@orron.com

Orrön Energy is an independent, publicly listed (Nasdaq Stockholm: “ORRON”) renewable energy company within the Lundin Group of Companies. Orrön Energy’s core portfolio consists of high quality, cash flow generating assets in the Nordics, coupled with greenfield growth opportunities in the Nordics, the UK, Germany, and France. With financial capacity to fund further growth and acquisitions, and backed by a major shareholder, management and Board with a proven track record of investing into, leading and growing highly successful businesses, Orrön Energy is in a unique position to create shareholder value through the energy transition.

Forward-looking statements
Statements in this press release relating to any future status or circumstances, including statements regarding future performance, growth and other trend projections, are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as “anticipate”, “believe”, “expect”, “intend”, “plan”, “seek”, “will”, “would” or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that could occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to several factors, many of which are outside the company’s control. Any forward-looking statements in this press release speak only as of the date on which the statements are made and the company has no obligation (and undertakes no obligation) to update or revise any of them, whether as a result of new information, future events or otherwise.

Attachment

Orrön Energy Q1 Report 2025 English

https://trifork.zoom.us/j/96719631909?pwd=sI6nAeNybYebaVXxyFn3Wp8tpU5BOL.1#success

MIL-OSI: 26/2025・Trifork Group: Interim report for the quarter ending 31 March 2025

Source: GlobeNewswire (MIL-OSI)

Trifork Group AG
Company announcement no. 26/2025
Schindellegi, Switzerland – 6 May 2025
Interim Financial Report for the first quarter ending 31 March 2025

Trifork Group reports revenue growth of 14.1% and EBITDA growth of 29.4% in Q1 2025

CEO Jørn Larsen comments on the first quarter:
“Q1 showed good progress toward our strategic ambition of becoming a more product- and solutions-led business. To support this direction, we revamped Trifork.com in Q1 to highlight our full range of products and platforms, and I invite you to explore our current offering. AI continues to break new ground, and we now discuss AI with most of our customers in one form or another. Our platforms Corax and AI Assist are seeing strong interest as they bring significant value to our customers very fast, in a very flexible, scalable, and secure way without customers needing to employ large data science teams.

In Q1, we began to see the impact of several larger deals initiated in 2024. In Denmark, the good trend from Q4 continued in Q1, with the activities in the public sector increasing the most. The US business doubled its revenue and became the second-largest in the Group in Q1, proving that our IP-anchored strategy, executed in close collaboration with our Labs companies and global tech partners, can unlock new avenues of growth in revenue and profits.

We have now completed most of the organizational changes announced last year and have identified cost-saving measures expected to deliver annual savings of EUR 10 million based on 2024 activity levels. For the remainder of 2025, we will continue to focus on further optimization and cost-efficiency across the Group, and I am encouraged by the strong and constructive cost savings efforts of our entire organization.”

First quarter 2025

Trifork Group
- In Q1 2025, Trifork Group revenue amounted to EURm 57.5, a net increase of 14.1% from Q1 2024, the combined result of an organic growth of 10.8% and an inorganic growth of 3.5%. In the quarter, Trifork had EURm 4.2 more revenue from hardware and third-party licenses compared to Q1 2024. Excluding these revenues, Group revenue growth was 5.9% in Q1 2025.
- Trifork Group adjusted EBITDA amounted to EURm 6.9, corresponding to growth of 29.4% compared to Q1 2024. The margin was 11.9% (Q1 2024: 10.5%). No special items were recorded.
- Trifork Group EBIT amounted to EURm 2.8, corresponding to growth of 95.5% compared to Q1 2024. The margin was 4.9% (Q1 2024: 2.8%).
Trifork Segment
- In Q1 2025, adjusted EBITDA in the Trifork Segment amounted to EURm 7.4 (Q1 2024: EURm 5.8), corresponding to growth of 26.3%. The margin was 12.8% (Q1 2024: 11.6%).
- Sub-segments
  - Inspire revenue increased by 25.0% to EURm 0.7 and realized an adjusted EBITDA of EURm -0.8 (Q1 2024: EURm -1.0).
  - Build revenue declined by -1.2% to EURm 38.3 and realized an adjusted EBITDA margin of 15.2% (Q1 2024: 15.7%).
  - Run revenue increased by 68.5% to EURm 18.5. Adjusted for hardware and third-party licenses, revenue growth was 33.9%. The adjusted EBITDA margin was 15.0% (Q1 2024: 13.1%).
Trifork Labs
- In Q1 2025, fair value adjustment of Trifork Labs investments was EURm -0.1 (Q1 2024: EURm 2.0).
- At 31 March 2025, the book value of active Labs investments amounted to EURm 82.7 (31 March 2024: EURm 73.4).

The financial outlook for full-year 2025 provided on 28 February is maintained:

Revenue is expected to be in the range of EURm 215-225, equal to 4.4-9.3% total growth
Organic revenue growth is expected in the range of 2.9-7.8%
Adjusted EBITDA in Trifork Segment is expected in the range of EURm 32.0-37.0
EBIT in Trifork Group is expected to be in the range of EURm 14.5-19.5.

The guidance does not include potential effects from new acquisitions or divestments.

Main events in the first quarter of 2025

Inspire
Q1 is seasonally a quarter with low conference activity. With more than 2 million views in Q1, the online GOTO universe have reached 83 million video views in total. At the end of the quarter, we had 1.1 million video subscribers. We are continuously sharpening our planning of events and have optimized our cost structure. Our business development efforts are anchored in technology partnerships, where workshop and conference presentations are central to the efforts. We hosted multiple events, including our Observability day in Copenhagen, and attended NVIDIA GTC together with Lenovo, who also co-attended an industrial conference in Germany with us. We held multiple events focusing on SAP.
Build
Build revenue accounted for 66.6% of Group revenue in Q1 and declined by 1.2% compared to the same quarter last year. We spent the quarter focusing our Build activities closer to our own product offerings so that focus is more on implementation, integration, and customization of these and building individual extensions on top. Generally, corporates continued to take a cautious approach to IT spending in light of the global economic and geopolitical uncertainty, but our business development efforts made up for some of the private market weakness. Our public sector customer base primarily consists of Danish engagements. Danish public revenue grew 23.4% in Q1 compared to the same quarter last year and accounted for 47% of revenue in Denmark. In Q1, we announced new engagements with SBSYS (41 municipalities and two regions) and Aalborg University, and a new partnership with Cognizant focused on testing-as-a-service for implementation with KOMBIT (all Danish municipalities).
Run
Run revenue accounted for 32.2% of Group revenue in Q1 and increased by 68.5% in Q1 compared to the same quarter last year (33.9% growth excluding revenues from third-party licenses and hardware, which can be volatile on a quarterly basis). In Q1, we revamped our website Trifork.com to increase focus on our products and platforms, which are central to our growth strategy and which provide more stability to our revenues as the licenses are sold on a recurring basis. Our Cloud Operations business has built a good pipeline supported by our Contain product offering, and it seems that the interest in cloud hosting in our Danish data centers increased in Q1. This was driven by both public and private customers. Our managed services security business continues to be in discussion with potential strategic partners to accelerate growth and market share, and we look forward to updating the market on the progress. Any potential deconsolidation is not included in the current financial guidance for the year. Overall, revenue within Hosting and Security operations increased by 23.2% in Q1.

Trifork Labs
No new investments or exits were completed in Trifork Labs in Q1. Activities in the quarter primarily included reviewing investment proposals from new or existing investors in individual Labs companies in relation to upcoming financing rounds, including the announced EURm 11.5 financing round in Dawn Health led by existing investors Chr. Augustinus Fabrikker and the Export and Investment Fund of Denmark (EIFO). We see this as a testament to continued strong belief in the company’s potential after showing significant progress with large pharma partners such as Merck and Novartis. The investment is aimed at supporting Dawn Health’s strategy to deliver its platform and product suite through a SaaS model, while continuing to invest in further offerings within the Dawn Product Suite.

Results presentation
Trifork will host a results presentation and Q&A session with CEO Jørn Larsen and CFO Kristian Wulf-Andersen today, 6 May 2025 at 11:00 CEST in a live webcast that can be accessed via the following link, or via the investor website:

A recording will be made available on our investor website. More information can be found at https://investor.trifork.com/events/.

Investor & Media contact
Frederik Svanholm, Group Investment Director
frsv@trifork.com, +41 79 357 7317

About Trifork Group
Trifork is a pioneering and global technology partner, empowering enterprise and public sector customers with innovative digital solutions. With 1,215 professionals across 71 business units in 16 countries, Trifork specializes in designing, building, and operating advanced software across sectors such as public administration, healthcare, manufacturing, logistics, energy, financial services, retail, and real estate. The Group’s R&D arm, Trifork Labs, drives innovation by investing in and developing synergistic, high-potential technology companies. Trifork also owns GOTO, which inspires the global tech community through conferences and an online video channel with over 1.1 million subscribers and 83 million views. Trifork Group AG is publicly listed on Nasdaq Copenhagen. Learn more at trifork.com.

Attachments

MIL-OSI USA: News 05/5/2025 Blackburn Praises Commerce Committee’s Passage of Her Bills to Protect Consumers in the Online Ticket Marketplace and Enhance 9-1-1 Emergency Response System

US Senate News:

Source: United States Senator Marsha Blackburn (R-Tenn)
WASHINGTON, D.C. – U.S. Senator Marsha Blackburn (R-Tenn.) released the following statement after her bipartisan Mitigating Automated Internet Networks for (MAIN) Event Ticketing Act to strengthen consumer protections in the online ticket marketplace and Enhancing First Response Act to update the classification of 9-1-1 dispatchers passed out of the Senate Commerce Committee:
“Fans shouldn’t have to fight bots and scammers when trying to buy tickets online, and I’m thrilled the Commerce Committee has moved the MAIN Event Ticketing Act one step closer to becoming law so we can protect consumers in the online ticket marketplace. The Commerce Committee also passed my bipartisan Enhancing First Response Act, which would make important updates to our 9-1-1 emergency reporting system and prevent service disruptions,” said Senator Blackburn.
MAIN EVENT TICKETING ACT
In 2016, President Obama signed Senator Blackburn’s legislation, the Better Online Ticket Sales (BOTS) Act, into law, which prohibits ticket scalpers from using software to purchase high volumes of tickets.
Creating reporting requirements whereby online ticket sellers must report successful bot attacks to the Federal Trade Commission (FTC);
Requiring the FTC to share consumer complaints submitted through their website to state attorneys general;
Enacting data security requirements for online ticket sellers and requires the sharing of information between the FTC and law enforcement; and
Requiring a report to Congress on BOTS enforcement.
The MAIN Event Ticketing Act is co-sponsored by U.S. Senator Ben Ray Luján (D-N.M.).
Click here for bill text.
ENHANCING FIRST RESPONSE ACT
The Enhancing First Response Act would:
Update the classification of 9-1-1 dispatchers in the Standard Occupational Classification (SOC) from clerical workers to protective service workers to better reflect life-saving work performed by them each day;
Require the Federal Communications Commission (FCC) to hold an annual hearing and issue a report after major natural disasters on 9-1-1 unreachability and make recommendations to improve the resiliency of 9-1-1 systems to prevent future service disruptions;
Require the FCC to study unreported 9-1-1 outages and develop recommendations to improve outage reporting and communication between mobile carriers experiencing network outages and 9-1-1 centers.
The Enhancing First Response Act is sponsored by U.S. Senator Amy Klobuchar (D-Minn.).
Click here for bill text.
RELATED

MIL-OSI New Zealand: Local environment prioritised, thanks to targeted rate

Source: Secondary teachers question rationale for changes to relationship education guidelines

A targeted rate that protects and restores Auckland’s environment is delivering beyond its investment, thanks to the support of partners and volunteers.

Auckland Council’s environmental services team delivers natural environment and climate outcomes Auckland-wide, through a programme that delivers great value at community level.

At April’s Revenue, Expenditure and Value Committee, chaired by Deputy Mayor Desley Simpson, the division’s financial performance review highlighted its multi-pronged approach.

“Protecting our unique natural environment requires ongoing management of pressures, such as pest plants and animals. Through the targeted rate, it receives dedicated investment so, ultimately, we have an Auckland we are proud to call home,” says Cr Simpson.

“The environmental programme is delivering great results region-wide and in our local communities too, thanks to key partnerships, co-funding, new tools to lift productivity and volunteers.

“The natural environment programme is 97 per cent rates funded, which is around $43 per year per ratepayer through the Natural Environment Targeted Rate (NETR) and some general rates.

“That investment delivers good value for money,” says Simpson. “In some cases, it delivers a quantifiable $6 return for every $1 invested.”

How we’re investing for the natural environment

NETR and general rates funding delivers and supports a range of environmental activity, including community-led initiatives across all Auckland Council wards.

Auckland Council environmental services general manager Samantha Hill says environmental protection and restoration is a long-term game and the focus is on delivering on commitments that will have enduring future impact.

“We are here to protect, improve and minimise risks to the natural environment and we can’t do this alone. It is important to recognise and acknowledge the tireless commitment and support from our partners and communities,” says Ms Hill.

“The NETR-funded work has enabled a wide range of community-led action and youth involvement. At the same time, key partnerships and regularly assessing opportunities to improve, such as new technologies and tools, means we continue to deliver value for money.”

Rates funding helps contract specialist environmental services; enables partnerships with investors to deliver even greater value; and helps activate community-led conservation, including around $2 million per year in contestable grants.

Community grants, technical advice and training is funded by both the NETR and general rates, helping deliver proactive action at local level but also added value.

For example, the Community Coordination and Facilitation Grant saw $1 million in funding shared across 36 local community groups in 2024 – ultimately resulting in over 276,000 volunteer hours and third-party funding on projects benefiting the natural environment.

It also delivered a $6.10 return for each $1 of grant funding invested.

Environmental services work closely with local boards to design and deliver locally driven initiatives, supporting over 110 local board projects worth $4 million in 2023-2024.

Additional strategic partnerships with business, mana whenua, central government, community and private investors, and other groups, are also adding value to the programme.

For example, over $2 million has been sourced so far from central government and private investors for the first phase of the Kawau Island multi-species pest eradication project. Private sector business and philanthropic funding has also been secured for other projects.

Detailed information on NETR-funded activity delivered in each local board can be found on this PDF [7.77MB].

To find out more about Auckland Council’s environmental programme, visit www.aucklandcouncil.govt.nz/environment

What the Natural Environment Targeted Rate (NETR) delivers

The current priorities:

upgrade and re-open tracks in the Waitākere Ranges in accordance with the Waitākere Ranges Regional Park 2019-2024 Track Reopening Programme
control possums across the region, in high priority sites
adequate control of pest plants for 66 per cent of significant ecological sites within council parks by 2028
work in partnership to achieve pest mammal eradications on Kawau, Aotea and Waiheke islands
protect regionally threatened species and high priority ecosystems
support community-led action through the provision of advice, grants and tools
deliver in partnership with mana whenua
implement a comprehensive Pest Free Warrant programme to reduce pest spread to islands by the full range of high-risk businesses.

What’s been achieved to date:

thirty-three tracks upgraded in the Waitākere Ranges
Hūnua Ranges Regional Park remains free of kauri dieback disease
Hūnua and Waitakere Ranges regional parks are kept free of feral deer and goats
30 per cent of rural mainland Auckland has possum populations maintained at/below target densities for biodiversity protection (at June 2024)
Kōkako populations in the Hūnua Ranges have increased from 106 pairs in 2018 to 259 in 2024, as a result of possum and predator control
regional conservation status assessments have been completed for freshwater fish, birds, reptiles, amphibians, bats and vascular plants
51 per cent of priority native habitats in regional parks have pest plants being effectively controlled towards, or managed below, target densities for biodiversity protection (at June 2024)
partnerships are underway with Ngāti Manuhiri, Department of Conservation, Predator Free 2050 Ltd, Ministry for Primary Industries and the Kawau community to eradicate possums and wallabies on Kawau Island
the council is also partnering with Ngāti Rehua Ngātiwai ki Aotea to eradicate rats, cats and pest plants on Aotea. Alongside Te Korowai o Waiheke, the council is supporting the eradication of stoats and the trialling of rat eradication on Waiheke Island
around 800 scheduled and unscheduled vehicle and passenger ferry sailings are inspected for pests each year. As a result, all Hauraki Gulf Islands where non-native predators such as rats and stoats have been eradicated remain free of these pests.

MIL OSI New Zealand News –

MIL-OSI New Zealand: Local environment prioritised thanks to targeted rate

Source: Secondary teachers question rationale for changes to relationship education guidelines

A targeted rate that protects and restores Auckland’s environment is delivering beyond its investment, thanks to the support of partners and volunteers.

Auckland Council’s environmental services team delivers natural environment and climate outcomes Auckland-wide, through a programme that delivers great value at community level.

At April’s Revenue, Expenditure and Value Committee, chaired by Deputy Mayor Desley Simpson, the division’s financial performance review highlighted its multi-pronged approach.

“Protecting our unique natural environment requires ongoing management of pressures, such as pest plants and animals. Through the targeted rate, it receives dedicated investment so, ultimately, we have an Auckland we are proud to call home,” says Cr Simpson.

“The environmental programme is delivering great results region-wide and in our local communities too, thanks to key partnerships, co-funding, new tools to lift productivity and volunteers.

“The natural environment programme is 97 per cent rates funded, which is around $43 per year per ratepayer through the Natural Environment Targeted Rate (NETR) and some general rates.

“That investment delivers good value for money,” says Cr Simpson. “In some cases, it delivers a quantifiable $6 return for every $1 invested.”

How we’re investing for the natural environment
NETR and general rates funding delivers and supports a range of environmental activity, including community-led initiatives across all Auckland Council wards.

Auckland Council environmental services general manager Samantha Hill says environmental protection and restoration is a long-term game and the focus is on delivering on commitments that will have enduring future impact.

“We are here to protect, improve and minimise risks to the natural environment and we can’t do this alone. It is important to recognise and acknowledge the tireless commitment and support from our partners and communities,” says Ms Hill.

“The NETR-funded work has enabled a wide range of community-led action and youth involvement. At the same time, key partnerships and regularly assessing opportunities to improve, such as new technologies and tools, means we continue to deliver value for money.”

Rates funding helps contract specialist environmental services; enables partnerships with investors to deliver even greater value; and helps activate community-led conservation, including around $2 million per year in contestable grants.

Community grants, technical advice and training is funded by both the NETR and general rates, helping deliver proactive action at local level but also added value.

For example, the Community Coordination and Facilitation Grant saw $1 million in funding shared across 36 local community groups in 2024 – ultimately resulting in over 276,000 volunteer hours and third-party funding on projects benefiting the natural environment.

It also delivered a $6.10 return for each $1 of grant funding invested.

Environmental services work closely with local boards to design and deliver locally driven initiatives, supporting over 110 local board projects worth $4 million in 2023-2024.

Additional strategic partnerships with business, mana whenua, central government, community and private investors, and other groups, are also adding value to the programme.

Over $2 million has been sourced so far from central government and private investors for the first phase of the Kawau Island multi-species pest eradication project. Private sector business and philanthropic funding has also been secured for other projects.

Detailed information on NETR-funded activity delivered in each local board can be found here.

To find out more about Auckland Council’s environmental programme, visit www.aucklandcouncil.govt.nz/environment

What the Natural Environment Targeted Rate (NETR) delivers

The current priorities:

upgrade and re-open tracks in the Waitākere Ranges in accordance with the Waitākere Ranges Regional Park 2019-2024 Track Reopening Programme
control possums across the region, in high priority sites
adequate control of pest plants for 66 per cent of significant ecological sites within council parks by 2028
work in partnership to achieve pest mammal eradications on Kawau, Aotea and Waiheke islands
protect regionally threatened species and high priority ecosystems
support community-led action through the provision of advice, grants and tools
deliver in partnership with mana whenua
implement a comprehensive Pest Free Warrant programme to reduce pest spread to islands by the full range of high-risk businesses.

What’s been achieved to date:

thirty-three tracks upgraded in the Waitākere Ranges

Hūnua Ranges Regional Park remains free of kauri dieback disease
Hūnua and Waitakere Ranges regional parks are kept free of feral deer and goats
30 per cent of rural mainland Auckland has possum populations maintained at/below target densities for biodiversity protection (at June 2024)
Kōkako populations in the Hūnua Ranges have increased from 106 pairs in 2018 to 259 in 2024, as a result of possum and predator control
regional conservation status assessments have been completed for freshwater fish, birds, reptiles, amphibians, bats and vascular plants
51 per cent of priority native habitats in regional parks have pest plants being effectively controlled towards, or managed below, target densities for biodiversity protection (at June 2024)
partnerships are underway with Ngāti Manuhiri, Department of Conservation, Predator Free 2050 Ltd, Ministry for Primary Industries and the Kawau community to eradicate possums and wallabies on Kawau Island
the council is also partnering with Ngāti Rehua Ngātiwai ki Aotea to eradicate rats, cats and pest plants on Aotea. Alongside Te Korowai o Waiheke, the council is supporting the eradication of stoats and the trialling of rat eradication on Waiheke Island.
around 800 scheduled and unscheduled vehicle and passenger ferry sailings are inspected for pests each year. As a result, all Hauraki Gulf Islands where non-native predators such as rats and stoats have been eradicated remain free of these pests.

MIL OSI New Zealand News –

MIL-OSI USA: 100 Days of Secretary Noem: Making America Safe Again

Source: US Federal Emergency Management Agency

Headline: 100 Days of Secretary Noem: Making America Safe Again

lass=”text-align-center”>“I will continue fighting every day alongside President Donald Trump to secure our border and keep American communities safe

This is just the beginning of the Golden Age of America

” – Secretary of Homeland Security Kristi Noem
WASHINGTON – In her first 100 days on the job, Secretary Kristi Noem returned the Department of Homeland Security (DHS) to its core mission of securing the homeland

Under Secretary Noem’s strong leadership, DHS is hard at work securing our borders, arresting and removing criminal aliens, safeguarding the U

S

cyber infrastructure, protecting America’s leaders, deterring terrorism, and keeping America safe

Below are just some of Secretary Noem’s accomplishments from her 100 Days:
Thanks to President Trump and Secretary Noem, we have the most secure border in American history

Daily border encounters have plunged 95% since President Trump and Secretary Noem took office

Migrants are turning BACK before they even reach our border— migration through Panama’s Darien Gap is down 99

99%

Secretary Noem launched a multimillion-dollar nationwide and international ad campaign, urging illegal aliens to leave the U

S

voluntarily or face deportation with no chance of return and warning criminals to stay out

The data shows the world is hearing our message

Secretary Noem and Secretary Kennedy have reunited nearly 5,000 unaccompanied children with a safe relative or guardian

Secretary Noem is finishing the border wall

DHS already has 85 miles of new construction either planned or under construction

United States (U

S

) Customs and Border Protection (CBP) and the U

S

Coast Guard (USCG) have seized nearly 232,000 pounds of fentanyl and other illicit drugs—stopping them from ever reaching American communities

Secretary Noem is fulfilling President Trump’s promise to carry out mass deportations—starting with the worst of the worst

Secretary Noem unleashed the U

S

Immigration Customs and Enforcement (ICE) to target the worst of the worst, 75% of their arrests are criminal illegal aliens with convictions or pending charges

Secretary Noem rode with ICE agents on an operation in New York City that resulted in the arrest of a Tren de Aragua ringleader

The Secretary went on a successful operation in Northern Virginia that got MS-13 gang members, 18th Street gang members, and perpetrators of sexual crimes off our streets

Additionally, Secretary Noem went on an ICE operation in Phoenix that resulted in the arrest of human traffickers, drug smugglers, and 18th Street gang members

DHS has secured 598 signed agreements with state and local partnerships under 287(g)

Last week, the first 287(g) enforcement operation coordinated with state and federal law enforcement—Operation Tidal Wave—resulted in 1,120 arrests across Florida

Secretary Noem deputized the Texas National Guard, Drug Enforcement Administration (DEA), Bureau of Prisons, U

S

Marshals, the Bureau of Alcohol, Tobacco, Firearms and Explosives, members of the State Department and the Internal Revenue Service (IRS) to help with immigration operations

Under Secretary Noem’s leadership, DHS has arrested over 168,000 illegal aliens in 2025 alone, including more than 600 members of Tren de Aragua

To fulfill President Trump’s promise to carry out mass deportations, DHS and Department of Defense (DOD) are detaining some of the most dangerous illegal aliens, including violent criminals and members of terrorist gangs, at Guantanamo Bay

Secretary Noem was the first Cabinet Secretary to visit Guantanamo Bay and see the facilities where the worst of the worst are being held

At President Trump’s direction, DHS deported nearly 300 Tren de Aragua and MS-13 terrorists to the Terrorism Confinement Center (CECOT) Prison in El Salvador, where they no longer pose a threat to the American people

While in El Salvador, Secretary Noem signed a Memorandum of Cooperation to update the Security Alliance for Fugitive Enforcement (SAFE) between the U

S

and El Salvador

This agreement ensures fugitives’ criminal records are shared between America and El Salvador, so that criminals are not inadvertently released into American communities

While in Colombia, Secretary Noem signed a Statement of Intent for Biometric Cooperation

This agreement facilitates the sharing of biometric data between our nations to better identify and prevent criminals and terrorists from our crossing borders

Biometric data sharing has already led to over 1,700 deportations and 1,000 arrests

President Trump ended the CBP One app that allowed more than one million aliens to illegally enter the U

S

Secretary Noem replaced this disastrous program with the CBP Home app, which has a new self-deportation reporting feature for aliens illegally in the country

So far, thousands of illegal aliens have used the app to self-deport

The Trump Administration is enforcing the Alien Registration Act which requires aliens to register with the federal government

If illegal aliens fail to comply, they face fines and imprisonment

Deportations have already exceeded 152,000—this is just the beginning

Under Secretary Noem’s leadership, DHS partnered with the Government of Uzbekistan to successfully deport over 100 illegal aliens from Uzbekistan, Kazakhstan, and Kyrgyzstan

This operation, in which Uzbekistan fully funded the deportation of their own nationals, underscores the deep security cooperation between our nations and sets a standard for U

S

alliances

President Trump and Secretary Noem are putting the safety of Americans first and delivering justice for victims of illegal aliens and drug cartels

Under the Secretary’s leadership, DHS is enforcing President Trump’s first major piece of legislation, the Laken Riley Act

This law mandates the federal detention of illegal aliens who are accused of theft, burglary, assaulting a law enforcement officer, or any crime resulting in death or serious bodily injury

President Trump designated international drug cartels and other criminal gangs, such as MS-13 and Tren de Aragua, as Foreign Terrorist Organizations

This enables a whole-of-government approach to dismantle their drug and human trafficking operations

The days of unchecked cartel and gang violence are over

Following the Secretary’s meeting with the Honduran Minister of Foreign Affairs, the Trump Administration extradited Eswin Mejia, an illegal alien arrested for killing 21-year-old Sarah Root in a drunk driving crash, from Honduras

President Trump and Secretary Noem reopened the Victims of Immigration Crime Engagement (VOICE) office, which was shuttered by the Biden Administration

President Trump and Secretary Noem are standing up for the victims of illegal alien crime and ensuring they have access to much needed resources and support they deserve

Secretary Noem has met with Angel families—including Alexis Nungaray, Sabine Durden-Coulter, Tammy Nobles, Maureen Maloney, and Agnes Gibboney—to hear their tragic stories and offer support from the Trump Administration

President Trump and Secretary Noem are restoring integrity and common sense to our legal immigration system

DHS has returned the Temporary Protected Status immigration program to its original status: temporary

No longer will this program be abused and exploited by illegal aliens

Secretary Noem rescinded the previous administration’s extension of Venezuelan, Haitian, and Afghan TPS

President Trump is returning common sense to our legal immigration system and national security by revoking visas of terrorist sympathizers

Those who glorify and support terrorists who kill Americans are not welcome in the U

S

Some examples include:

ICE arrested Mahmoud Khalil, a former Columbia University graduate student who led activities aligned with Hamas and passed out pro-Hamas propaganda flyers

Dr

Rasha Alawieh was deported after she admitted to attending the funeral of Hassan Nasrallah, a brutal terrorist who led Hezbollah and was responsible for killing hundreds of Americans

ICE arrested Badar Khan Suri, a Georgetown foreign exchange student whose father-in-law is a senior advisor to Hamas

To keep America safe, DHS is now conducting enhanced vetting of visa applicants, including monitoring foreign aliens’ social media accounts to identify any support for terrorist organizations

Under President Trump, Secretary Noem refocused DHS to its core mission of protecting the American homeland and eliminating government waste

Secretary Noem has empowered our brave men and women in ICE, Border Patrol, and the Coast Guard to use common sense to do their jobs effectively

DHS ensured a safe and secure Super Bowl for the more than 100,000 fans celebrating in New Orleans

Secretary Noem is embracing the Department of Government Efficiency (DOGE) efforts to make sweeping cuts that eliminate government waste, return DHS to its core mission of protecting the homeland, and fulfill the Founders vision of returning power to the states

The USCG eliminated an ineffective information technology (IT) program, saving nearly $33 million, and is now focusing resources where they’re most needed to protect our homeland

The Trump Administration stopped aliens on the Terror Watchlist from receiving Medicaid benefits

Secretary Noem stopped the construction of a new Cybersecurity and Infrastructure Security Agency headquarters building that was going to cost American taxpayers more than half a billion dollars

Secretary Noem ended the Building Resilient Infrastructure and Communities (BRIC) FEMA grant program that was wasteful and ineffective

This resulted in nearly a billion dollars being directed to the Disaster Relief Fund

To stop policies that were magnets for illegal immigration, DHS froze all funding to non-governmental organizations that facilitate illegal immigration and announced a partnership with the U

S

Department of Housing and Urban Development to ensure taxpayer dollars do not go to housing illegal aliens

Secretary Noem ended collective bargaining for the Transportation Security Administration’s (TSA) Transportation Security Officers, which constrained TSA’s chief mission to safeguard our transportation systems and keep Americans safe

Bottom Line: Secretary Noem will continue fighting alongside President Trump every day to secure our border and keep American communities safe

This is just the beginning of a new Golden Age of America

MIL-OSI New Zealand: Funding, payments and learner fees – Youth Guarantee

Source:

For the full requirements, see the Youth Guarantee funding conditions for the relevant year.
Funding mechanism
The Minister responsible for tertiary education issues the YG funding mechanism. The funding mechanism outlines the general form and essential components of the fund. It provides the mandate for the Tertiary Education Commission (TEC) to allocate the funding and what the funding can be used for, and details how we administer the fund.
Funding is agreed through a tertiary education organisation’s (TEO’s) Investment Plan. For more information see Plan guidance and toolkit.
A TEO that receives YG funding is required to:

The overall amount of YG funding available is set through the Government’s annual budget process. We determine the appropriate amount of YG funding for a TEO through the annual investment process and in-year additional funding requests (if available).
Funding allocation and payments
Funding allocations, including any amendments, are available through the My Allocations and Payments app on Ngā Kete.
YG funding is paid in equal monthly instalments.
After each Single Data Return (SDR) submission we pay (and recover) Youth Guarantee Exceptional Circumstances Travel Assistance funding.
For the calculation of indicative allocations see the methodology from the relevant year. The most recent information is at the top.
For more details regarding your specific allocation, please contact customerservice@tec.govt.nz or your Relationship Manager.
Funding rates
There are two funding rates for all YG provision – the trades and non-trades rates per EFTS.
The trades funding rate applies to trades provision at Levels 2 and 3 on the New Zealand Qualifications and Credentials Framework (NZQCF).
The non-trades rate applies to all other provision at Levels 1 to 3 on the NZQCF.
This page provides information on the YG funding rates.
Funding wash-ups
For the calculation of funding wash-ups see the methodology and technical specifications from the relevant year.
Premium allocation
We will allocate the 50% funding premium for the Level 1 and 2 programmes in your Level 1 and 2 commitment
We will allocate the YG premium based on your Level 1 and 2 commitments in your YG Mix of Provision (MoP).
We will calculate your final delivery against your total YG allocation, including the Level 1 and 2 premium and recovery if you were overpaid.
We will adjust your premium allocation, if required, due to other significant Plan changes
Significant Plan changes during the year may affect the amount of Level 1 and 2 premium required, for example if we have agreed a change in the total allocated, or there is a change in the distribution of your commitments within the allocation. If necessary, we will recalculate and adjust your premium allocation.
We will carefully review your submitted MoP to ensure we allocate the correct amount
We will monitor closely to ensure you allocate accurately as agreed with TEC in your MoP. This includes any changes agreed within the year. We will only accept and approve the MoP if the commitment is within the MoP tolerance (tolerance value identified in MoP instructions tab), and the distribution of the funding is in line with what was agreed and approved by the TEC. MoPs must be submitted in a timely matter.
We will take into account previous delivery patterns, and any specific agreements you have with us regarding changes to your MoP.
Wellbeing and pathways support subsidy
The wellbeing and pathways support subsidy is intended to fund a range of services tailored to the needs of individual learners. This may include:

career planning and advice
specific cultural and learning support that is easy for the learner to access
an orientation programme that informs learners about access to financial assistance
extra-curricular activities
regular activities with other YG learners
building workplace connections, and/or

From 2023, TEOs are expected to work with learners and their whānau to develop a pathway plan to map “where to from here”. The plan should support each learner’s needs to move to further study and/or employment. For more information on what should be included in the pathway plan refer to the YG funding conditions
We will allocate the wellbeing and pathways support allocation based on your total EFTS commitment in your MoP
We will calculate and pay the subsidy separately to your other YG funding.
We will not recover any of the subsidy where under-delivery occurs.
We will pay the subsidy on all eligible Flexible Funding over-delivery (up to 102% of your allocation) based on your December SDR reporting.
We will adjust your wellbeing and pathways support allocation, if required, due to other significant Plan changes
Significant Plan changes during the year may affect the amount of wellbeing and pathways support allocation you are entitled to, for example if we have agreed a change in the total allocated. If necessary, we will recalculate and adjust your wellbeing and pathways support allocation.
Travel assistance funding
For the full travel assistance funding requirements, see the Youth Guarantee funding conditions for the relevant year.
Travel assistance funding must only be used to pay for the actual cost of transport. We expect TEOs to take an “actual and reasonable” approach to the reimbursement of learner travel costs. This means if a learner uses:

public transport, the reimbursement of the student must be based on the appropriate concession rate, or
private transport, where suitable public transport is not available, a reasonable reimbursement rate should be established by the TEO on a case-by-case basis.

If the TEO supplies the transport, the cost of the travel must not exceed 80 cents per kilometre travelled.
Travel assistance funding that is paid directly to a learner must only be used to cover or reimburse costs associated with travel to and from the YG course.
Records
The TEO must keep records of all learner travel expenses and TEO reimbursements to learners.
If the TEO supplies transport to learners, it must keep records of travel expenses. All travel records are to be made available to us on request. Records must include:

a daily travel logbook that sets out the kilometres travelled in relation to each learner, and
the source of funding for each learner’s enrolment at the TEO (for example, whether the learner is enrolled in a YG funded programme or otherwise).

Inland Revenue
If the TEO supplies transport, the TEO must keep records of travel expenses in line with Inland Revenue requirements.
There may be tax implications in the way that travel reimbursements are administered. Contact Inland Revenue directly for further information.
When reimbursing learners for travel, in general, TEOs are not able to claim GST input tax on this cost because the payments are made to individuals who are not registered for GST. GST input tax can only be claimed if the TEO has incurred the cost itself and can produce a GST invoice in support of the claim.
Travel subsidy
The travel assistance subsidy is expected to adequately meet the costs associated with normal learner travel needs.
As the travel subsidy is allocated per EFTS, the TEO may cross-subsidise by using more than the per EFTS rate for some learners (ie, where they have particularly high travel expenses), and less than the per EFTS rate for others (where they do not require the full amount).
The TEO must reimburse each learner within a reasonable time after they have incurred the cost.
Exceptional Circumstances Transport Assistance funding
Exceptional Circumstances Transport Assistance (ECTA) funding is to provide additional transport assistance to learners who live in relatively isolated areas who may have higher transport needs.
For the full exceptional circumstances transport assistance funding requirements, see the Youth Guarantee funding conditions for the relevant year.
ECTA funding is based on EFTS delivered, and the rural isolation of the site where the delivery took place. The rural isolation of TEOs’ delivery sites uses a classification system developed by Statistics New Zealand.
Based on the urban/rural classification we provide a “top-up” payment per YG EFTS at each delivery site as reported in each SDR submission.
Funding calculation
Disaggregated courses must add up to the total credit value of the qualification, but unlike Delivery Qualification (DQ) funding, Youth Guarantee is not funded at the course level.
For a trades programme at Levels 2 and 3 the funding calculation is: trades rate per EFTS x programme EFTS value. Trades programmes include NCEA where at least 50% of the courses are classified under Delivery at Levels 7 (degree) and above on the NZQCF delivery classification codes – alphabetic and numeric – as C1, L1, or P1.
For a non-trades programmes the funding calculation is: non-trades rate per EFTS x programme EFTS value. Non-trade programmes include NCEA where less than 50% of the courses are classified as trades courses.
Specifically, we calculate a TEO’s consumed funding using:

the number of valid domestic student enrolments, measured by equivalent full-time students (EFTS), and
the programmes, and their component courses, in which a valid domestic student is enrolled.

To calculate a TEO’s consumed Youth Guarantee funding, we use the following elements:

the metric (EFTS value)
delivery classification
funding category (trades/non-trades, which may also depend on level on the NZQCF), and
funding rate.

Example only (rates may differ depending on year):

Step

Funding calculation

Example

1

Assign the programme an EFTS value

A TEO’s NZ2104 New Zealand Certificate in Food and Beverage (Level 3) obtained through half a year of academic year study has a value of 0.5 EFTS.
Note: We use 120 credits per EFTS for all programmes in STEO.

2

Assign the programme a funding rate

This is determined in conjunction with us. The rate will be trade or non-trade, depending on whether the majority of course EFTS are trades or non-trades.

3

Disaggregate the programme into courses
Calculate the EFTS factor of each course (Note: We use 120 credits per EFTS for all courses in STEO)
Classify the courses

The programme is disaggregated into three courses.
Each course has an EFTS factor of 0.1667 EFTS.
The subject matter of these courses is classified as #22 (Trades) in the Delivery Classification Guide.

4

Apply the funding category

Refer to Funding category (CATEGORY) under information about courses:
The funding category alphabetic code is used to determine the category of the course as P (Trades #22).
The funding category numeric code is used to determine the category of the course as 1 (non-degree course with no research requirement, including certificates and diplomas).

5

Apply funding rates

The funding rate for provision towards a trade programme, including transport subsidy, is $14,981 per EFTS, plus $2,000 per EFTS wellbeing and pathways support subsidy.

6

Multiply the funding rate by the number of valid enrolments

For 10 students on each of the 3 courses, each course attracts Youth Guarantee funding of $28,307.33 (excl. GST) calculated as (0.1667 x $14,981 x 10 = $24,973.33) + (0.1667 x $2,000 x 10 = $3,334.00).
This means the programme attracts $84,921.99 funding if 10 students enrol in each of the 3 programme courses.
Note: From 2023, for Level 1 and 2 programmes, we pay a 50% premium in addition to each EFTS reported in your Single Data Return (SDR). This is to acknowledge our YG definition of an EFTS being 80 credits for Level 1 and 2 programme delivery.

Calculating funding for Level 1 and 2 provision
From 2023 onwards, we recognise that 80 credits is a full-time, full-year workload for a learner enrolled in a Level 1 or 2 Youth Guarantee programme (or programmes) (one EFTS).
As a result TEOs will receive 50% more funding for delivery of EFTS towards Level 1 and 2 programmes.
The amount paid will be determined by the volume of Levels 1–3 course enrolment EFTS that lead towards Level 1 and 2 Youth Guarantee qualifications, as reported in the SDR.
We will fund up to 120 credits worth of delivery per learner in a calendar year.
You must not enrol a learner in more than:

1.5 EFTS (120 credits) for programmes leading to Level 1 and/or 2 Youth Guarantee qualifications; and
1.0 EFTS (120 credits) for programmes leading to Level 3 Youth Guarantee qualifications.

We will continue to fund up to 120 credits worth of delivery per learner in a calendar year.

Student’s 2023 enrolments

Credits

2023 EFTS

Credits ‘funded’

Definition

Delivered

Reported in the SDR

Funded (includes premium payment)

New Zealand Certificate in Foundation Skills (Level 2)

60

80 credits

0.7500

0.5000

0.7500*

60

New Zealand Certificate in Apiculture (Level 3)

65

120 credits

0.5417

65

Total

125

N/A

1.2917

1.0417

1.2917

125

* 0.500 Level 2 EFTS reported in the SDR plus the 50% premium = 0.750 Level 2 EFTS funded.
Re-enrolling a Youth Guarantee student
Where a YG learner requires further study to complete their programme, their study can only be to complete courses that they have not yet passed. This can include content not yet studied or content studied and assessed, but requiring a re-sit.
Note: A learner who turns 25 years old while enrolled is not eligible to re-enrol.
For example:
A TEO enrols a learner in all courses linked to a 60-credit (0.5 EFTS) Level 3 programme. The sum of the course EFTS factors is 0.5 EFTS.
The learner passes/achieves 30 credits from the 60-credit course enrolments. The TEO is funded 0.5 EFTS, for the 60 credits of courses the learner was enrolled in.
The TEO re-enrols the learner in a second period of study for the remaining 30 credits not yet achieved. The TEO is funded 0.25 EFTS for the 30 credits of courses the learner was re-enrolled in.
The learner successfully completes the courses and is awarded the qualification.
The learner will have received 0.75 EFTS worth of provision (90 credits), and the TEO will be funded for 0.75 EFTS delivery (0.5 + 0.25 EFTS) (assuming funding conditions are met for each course enrolment).
Note: The TEO will report 0.25 EFTS (30 credits) unsuccessful course completions, and 0.5 EFTS (60 credits) successful course completions.
Calculating EFTS remaining vs consumed
To determine the exact value of the EFTS remaining for a returning learner, the following formula should be used:

Qual EFTS value – (credits completed/total qual credits x qual EFTS value) = remaining EFTS

For example:
0.5 – (30/60 x 0.5)
= 0.5 – 0.25
= 0.25 remaining EFTS

Notes:
You will need to ensure that when a learner needs more time to complete their programme, other learners are enrolled to ensure you deliver fully on your Mix of Provision (MoP) EFTS commitment and consume all funding for the year.
Consider a learner’s course re-enrolments before you enrol them in a further programme. Where a learner does not complete a course successfully and you re-enrol them and claim funding, the learner is consuming additional EFTS towards their entitlements.
Flexible funding
We fund eligible TEOs for eligible Youth Guarantee provision above the amount the TEO has been approved to deliver. This is to provide TEOs with flexibility to meet additional learner demand.
For further information about flexible funding, please see the Youth Guarantee funding conditions for the relevant year.
Flexible funding:

is payable for provision towards qualifications that we have agreed to fund in your Mix of Provision (MoP)
does not mean we have changed your approved funding allocation, and
is subject to the conditions that we have imposed on your funding.

The external evaluation and review (EER) category referred to in the funding conditions will be the highest published EER category for the TEO during the funding year to which flexible funding is being applied.
Flexible funding is calculated using the December Single Data Return (SDR). Payments are made in March of the following year.
Suspending or revoking funding
Under clause 16 of Schedule 18 of the Education and Training Act 2020 (the Act), we may suspend or revoke some or all funding given under section 425 of the Act if we are satisfied on reasonable grounds that:

when measured against performance indicators, the TEO has not achieved, or is not achieving, an outcome anticipated in its Investment Plan for a tertiary education programme or activity in relation to which funding has been given under section 425 of the Act, or
the TEO has not complied, or is not complying, with a condition on which funding has been given under section 425 of the Act, or
the TEO has not provided, or is not providing, adequate and timely information required by the TEC or Ministry of Education under section 425 of the Act.

If a TEO has its funding approval revoked in accordance with clause 16 of Schedule 18 of the Act, the unspent portion of funding is repayable to us on demand (see the Youth Guarantee funding conditions for the relevant year). We may offset the amount against any funding payable to the TEO.
Subcontracting
Subcontracting refers to a situation in which a TEO uses TEC funding to pay another organisation to deliver teaching or assessment on its behalf. This excludes:

teaching and learning activities contracted to individuals or organisations that are not TEOs (for example, an employee on a fixed-term contract, an honorary staff member, or a contract for teaching and learning services with a subject-matter expert for part of the programme such as for First Aid provision)
research activities or postgraduate research supervision, and
learning that occurs within vocational placements such a workplace placement or practicum.

A TEO must not subcontract delivery of any YG funded programme without the prior written approval of NZQA and without prior written consent from us.
Note: To gain approval, you must demonstrate how the subcontracting arrangement would benefit the YG programme.
If we approve a subcontract arrangement
Subcontracting can be agreed in two ways
If we approve a subcontract arrangement, the subcontracting can be agreed to within a TEO’s Investment Plan (Plan). The subcontracting specified in the Plan will be permitted for the period of the Plan. If the Plan expires then approval will need to be obtained from us again.
Subcontracting can also be agreed outside of a Plan. Again, the subcontracting specified will be permitted for the period agreed with us.
At any time, TEOs can contact us to discuss proposed subcontracting.
Subcontracting TEO obligations
As specified in section 425 of the Education and Training Act 2020, it is a condition of a TEO receiving funding under section 425 that the TEO will supply to us, from time to time as required by us, and in a form specified by us, any financial, statistical, or other information that we require the TEO to supply.
Therefore, at any time, we can request information regarding subcontracted activities from the TEO (that has subcontracted another party to carry out the activities).
In addition, a TEO that has subcontracted another party to carry out its activities:

must comply with any conditions imposed by us within a consent to subcontract; and
must ensure that the subcontracted party does not further subcontract any functions; and
will be accountable to us for the use of the YG funding, including in respect to legislative and funding condition requirements.

Student Allowance and Student Loan Scheme payments
A programme must be approved for TEC funding before a learner can access the Student Allowance and Student Loan Schemes. YG learners are only eligible for some aspects of the Student Loan Scheme. For further information on eligibility visit StudyLink.
Programmes delivered full-time
We will only approve a YG funded programmes for learner access to Student Allowance Student Loan Schemes if the programme:

is delivered full-time
runs for a minimum of 12 weeks, and
has an EFTS value of at least 0.3.

A full-time YG programme must be made up of at least 0.5 EFTS, comprising one or more qualifications. Where there is recognition of prior learning (RPL) for some of the programme, the learner’s individual programme following RPL must be at least 0.5 EFTS.
Programmes delivered part-time
A programme of less than 0.3 EFTS is classified as part-time regardless of the number of weeks over which it is delivered. A part-time programme is not eligible for learner access to the Student Allowance Scheme.
For a YG funded part-time programme leading to a qualification, we will only approve learner access to the Student Loan Scheme if the programme meets one of the following criteria:

it runs for 32 weeks or more and has an EFTS value of at least 0.3 EFTS, or
it runs for fewer than 32 weeks with an EFTS value of between 0.25 and 0.3 EFTS.

Loan entry threshold
The loan entry threshold (LET) is used to identify the minimum EFTS value required for a learner’s individual study programme to be deemed full-time. This affects learner eligibility for the Student Allowance and Student Loan Schemes. A programme that is not deemed to be full-time (ie, not approved for access to the Student Allowance and Student Loan Schemes) can nevertheless be funded through YG.
The LET is determined by matching a range of gross weeks to a range of EFTS values. A gross week is the total length of enrolment in a programme, including holiday weeks.
The table below shows this relationship. Programmes of less than 0.3 EFTS may still be eligible for learner access to the Student Loan Scheme.

Loan entry threshold table

Length of enrolment(Gross weeks)

Loan entry threshold(EFTS)

12

0.3

13

0.3

14

0.3

15

0.3

16

0.4

17

0.4

18

0.4

19

0.4

20

0.5

21

0.525

22

0.55

23

0.575

24

0.6

25

0.625

26

0.65

27

0.675

28

0.7

29

0.725

30

0.75

31

0.775

32–52

0.8

53 or more

1.0

Student allowances – paid practical work
Learners that undertake paid practical work as part of their course of study are not entitled to any student allowance payments for the week(s) they undertake that work. It is important that you discuss this with your learners.
For more information on student allowance entitlements and paid practical work please see StudyLink.

MIL OSI New Zealand News –

MIL-OSI USA: Sens. Scott, Cantwell Reintroduce Aviation Workforce Development Act

US Senate News:

Source: United States Senator for South Carolina Tim Scott
WASHINGTON — U.S. Senators Tim Scott (R-S.C.) and Maria Cantwell (D-Wash.) reintroduced the Aviation Workforce Development Act. This legislation amends the Internal Revenue Code to make expenses for education at FAA-certified flight andaviation maintenance programs eligible for 529 plan funds. 529 plans are valuable tools for saving for education, offering tax-free growth and allowing withdrawals for qualified expenses like tuition, room and board, and school supplies. The Aviation Workforce Development Act allows students pursuing FAA-certified flight and aviation maintenance programs to now use their 529 plan funds to cover these educational costs. As record numbers of air travelers visit South Carolina each year, this legislation will open doors for aspiring pilots and aviation maintenance technicians by ensuring they can play a vital role in the state’s aviation workforce.
In addition to Senators Scott and Cantwell, this bill is cosponsored by U.S. Senator Raphael Warnock (R-Ga.). Representative Mike Collins (R-Ga.) introduced companion legislation in the U.S. House of Representatives.
“This bill provides a commonsense solution to tackling workforce shortages in the aviation industry and offering more flexibility for parents investing in 529 accounts,” said Senator Scott. “By streamlining workforce development in aviation and expanding the use of 529 funds, it strengthens the aviation sector and provides parents greater freedom to invest in their children’s future.”
“Families use 529 plans to save for their children’s future education. But we know that our next generation of workers need options beyond traditional four-year college degrees, such as apprenticeships, trade schools, and more,” Senator Cantwell said. “By allowing 529 plans to cover FAA-certified commercial pilot and aviation maintenance courses, this bill helps remove cost barriers for students considering a career path in Washington state’s thriving aviation industry.”
“I’ve worked tirelessly in the Senate to secure federal investments for aviation workforce programs. The Aviation Workforce Development Act builds on my efforts to create educational pipelines that welcome Georgians from every zip code into this critical industry,” said Senator Warnock. “This is a bipartisan and bicameral bill for a reason—these are commonsense solutions to address needs throughout our aviation industry, and I’m proud to work alongside Senators Scott and Cantwell in this effort.”
The Aviation Workforce Development Act is endorsed by Airlines for America, Air Line Pilots Association, Delta Air Lines, Aerospace Industries Association, Atlas Air Worldwide, National Air Carrier Association, NetJets Association of Shared Aircraft Pilots, Aircraft Mechanics Fraternal Association, Aeronautical Repair Station Association, Aviation Technician Education Council, and National Business Aviation Association.
Background:
According to a recent Pilot and Technician Outlook report from Boeing, the 20-year outlook for aviation personnel includes 602,000 new pilots and 610,000 new maintenance technicians.
According to ATP, that nation’s largest flight school, it costs just over $96,000 a year to become a pilot with no previous experience and just over $75,000 if you start with a private pilot certificate.
According to BLS, the median annual wage for commercial pilots was $99,640 in 2021 and the median wage for aircraft mechanics and service technicians was $65,380.
Meanwhile, 529 plans generally do not include coverage of commercial pilot or aviation maintenance programs unless they are part of an “eligible educational institution.”
Eligible institutions are colleges, universities, trade schools, or other post-secondary educational institutions that are eligible to participate in a student aid program run by ED.

MIL-OSI Security: Midwest City Woman Pleads Guilty to Defrauding Property Management Company

Source: Office of United States Attorneys

OKLAHOMA CITY – SHERRIE BILLINGS, 53, of Midwest City, has pleaded guilty to wire fraud and making and subscribing a false tax return, announced U.S. Attorney Robert J. Troester.

According to public record, in January 2017, Billings worked as a regional property manager for Manhattan Management Company, LLC (“MMC”), out of New York. MMC owned four apartment complexes in Oklahoma City. Her duties included maintaining daily upkeep, maintenance, and inspections of the properties, and she had access to an MMC bank account and credit card for such maintenance. Court documents allege that from January 2017 through July 2022, Billings defrauded MMC by issuing unauthorized checks from MMC’s bank account and utilizing the company credit card, both for her own personal use. During this time period, Billings issued approximately 385 unauthorized checks, illegally withdrawing approximately $1,660,238.00 from MMC’s account. To conceal her scheme, Billings manufactured fraudulent payment vouchers to legitimate vendors and emailed the fraudulent vouchers to MMC’s bookkeeper to be added to the company ledger. Billings also used the MMC credit card for personal expenses, which defrauded the company out of approximately $49,798.00. Public record further alleges that on April 14, 2022, Billings filled out a federal income tax return form on which she reported income that was substantially lower than the actual income she received as a result of the criminal behavior described above.

On April 2, 2025, Billings was charged by Information with wire fraud and making and subscribing a false tax return. On May 2, 2025, Billings pleaded guilty to the two-count Information, and admitted she knowingly devised a scheme to defraud MMC, and that she knowingly filed a federal income tax return form on which she reported an income amount she knew was substantially lower than what she received for the year.

At sentencing, Billings faces up to 20 years in federal prison for the wire fraud charge and up to three years in prison for the tax charge, as well as a fine of up to $250,000 per count.

This case is the result of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Charles Brown is prosecuting the case.

Reference is made to public filings for additional information.

MIL Security OSI –

MIL-OSI USA News: Fact Sheet: President Donald J. Trump Announces Actions to Reduce Regulatory Barriers to Domestic Pharmaceutical Manufacturing

Source: The White House

PROMOTING AMERICAN-MADE PRESCRIPTION DRUGS: Today, President Donald J. Trump signed an Executive Order to facilitate the restoration of a robust domestic manufacturing base for prescription drugs, including key ingredients and materials necessary to manufacture prescription drugs.

The Order directs the U.S. Food and Drug Administration (FDA) to reduce the amount of time it takes to approve domestic pharmaceutical manufacturing plants by eliminating duplicative and unnecessary requirements, streamlining reviews, and working with domestic manufacturers to provide early support before facilities come online.
- The Order directs the FDA to increase fees for and inspections of foreign manufacturing plants.
- President Trump is directing the FDA to improve enforcement of active pharmaceutical ingredient source reporting by foreign drug producers and consider publicly displaying a list of facilities that do not comply.
The Order directs the Environmental Protection Agency (EPA) to accelerate the construction of facilities designed to manufacture prescription drugs, active pharmaceutical ingredients, and other necessary raw materials.
The Order ensures that federal agencies issuing permits for a domestic pharmaceutical manufacturing facility designate a single point-of-contact to coordinate permit applications with interagency support from the White House Office of Management and Budget (OMB) to ensure an efficient and coordinated process.

UNLEASHING PROSPERITY AND PROTECTING NATIONAL SECURITY THROUGH PERMITTING REFORM: President Trump is clearing bureaucratic obstacles to critical domestic pharmaceutical manufacturing in order to usher in America’s new Golden Age by ensuring access to the medicines Americans need.

Critical barriers and gaps still exist in establishing a domestic, resilient, and affordable pharmaceutical supply chain for American patients.
- New construction must navigate myriad Federal, State, and local requirements ranging from building standards and zoning restrictions to environmental protocols that together diminish the certainty needed to generate investment for large manufacturing projects.
Estimates suggest that building new manufacturing capacity for pharmaceuticals and critical inputs may take as long as five to ten years, which is unacceptable from a national-security standpoint.
This Order will speed up timelines for building domestic pharmaceutical manufacturing site by reducing regulatory barriers to construction.

DELIVERING ON PROMISES TO PUT AMERICA FIRST: President Trump is delivering on his promise to once again put America first by ensuring the FDA prioritizes American manufacturing facilities over foreign facilities.

President Trump: “We don’t want to be buying our pharmaceuticals from other countries because if we’re in a war, we’re in a problem, we want to be able to make our own.”
President Trump: “As we invest in the future, we will permanently bring our medical supply chains back home. We will produce our medical supplies, pharmaceuticals, and treatments right here in the United States.”
This Order builds on actions from President Trump’s first term to re-shore production of essential medicines and cut down our reliance on foreign producers.

MIL-OSI USA: Affordability Actions in the FY26 Budget to Benefit Families

Source: US State of New York

arlier today, Governor Kathy Hochul visited Kamil and Karolina Kolodziejczyk — parents of two children — on Long Island to discuss her affordability agenda in the Fiscal Year 2026 Executive Budget. The Governor highlighted her efforts to increase the child tax credit, expand child care access, issue New York State’s first-ever inflation refund checks, deliver a tax cut for middle-class and low-income New Yorkers, and provide free breakfast and lunch for every K-12 student in New York — all efforts to put more money back in families’ pockets.

B-ROLL of the Governor meeting the Kolodziejczyk family is available to stream on Youtube here and TV quality video is available here (h.264, mp4).

VIDEO: The Governor’s conversation with the Kolodziejczyk family is available to stream on YouTube here and TV quality video is available here (h.264, mp4).

AUDIO: The Governor’s conversation with the Kolodziejczyk family is available in audio form here.

A rush transcript of the Governor’s conversation with the Kolodziejczyk family is available below:

Governor Hochul: But I just want to talk to you about some of the stresses that families are feeling now and — you’ve got the two little ones, 5-year-old and a 3-year-old.

Kamil Kolodziejczyk: Yep. 3-year-old and a 5-year-old.

Governor Hochul: And I know a 3-year-old. I have got a 3-year-old granddaughter now. She just had her birthday, so I know this age very well and I’m a mom, so it’s great to see this. But, what’s it like? I mean, you worry about grocery shopping and what’s it like when you have to go to the counter it all adds up? Are you seeing any — what’s it like?

Kamil Kolodziejczyk: Oh yeah. Everything got so expensive in a few years. This one was born five years ago, and that’s when COVID happened and lost the job, laid off and it got tough.

Governor Hochul: How long were you laid off when COVID hit?

Kamil Kolodziejczyk: I got laid off and I went and opened my own business with a chance and business, you know, going into HVAC.

Governor Hochul: That was ambitious. How’s that going for you?

Kamil Kolodziejczyk: It’s going well. It’s going well. Now especially in this weather; it got really, really warm lately, so people call — we’re doing installation service. When my second son was born, my wife had to take a week from work and stay-at-home because daycare got really expensive and the needs for the kids and everything.

Governor Hochul: Same thing happened to me — when I had my job, my son was born and then child care was not really available. I just couldn’t find much child care and it was very expensive. And so, I just ended up staying home too. So we went from having two incomes — my husband was working for the government and we went and eliminated my income — and that was when I would go to the newspapers, and cut out the coupons, and go to the big-box stores and just, yeah; you load up the big cart, and buy the diapers in bulk, and paper towels, and toilet, detergent, dishwashing liquid.

Karolina Kolodziejczyk: Costco is my favorite.

Governor Hochul: Costco. There a BJ’s. Or just even going to Walmart, but even those prices are going up, right?

Kamil Kolodziejczyk: Yeah. I go get the water for a week or something. It’s $100, $20 and it goes in price. Water, drinks — pull up the cart and so, definitely the prices went up, you know?

Governor Hochul: So you got hit with COVID —

Kamil Kolodziejczyk: Yeah.

Governor Hochul: — lost your job, came back to work, inflation hits you..

Kamil Kolodziejczyk: Inflation — the rate for the house, it’s over 6 percent.

Governor Hochul: Yeah, yeah.

Kamil Kolodziejczyk: So the payment —

Governor Hochul: Interest rates were going up when you bought your house and then you have property taxes.

Kamil Kolodziejczyk: Taxes up. Yeah.

Governor Hochul: Also, especially important here on Long Island is the state and local tax deduction — and back in 2017, that was eliminated by the president who’s in office now; that was a big tax increase for New Yorkers. New Yorkers right now are sending $12 billion because of losing the state and local tax reduction. So you’re not able to deduct all your taxes, are you?

Kamil Kolodziejczyk: No, we’re over —

Governor Hochul: You’re over the limit. So that’s money that you know you should have back in your pocket, not sending to the federal government. And that’s something that’s really a problem. So, have you ever had to make decisions about what not to buy? Like you want to do some —

Karolina Kolodziejczyk: I do want — like some of the little things for the children and even clothes for them, like do I need that?

Kamil Kolodziejczyk: Thank God we got two boys. So one after another saving too.

Governor Hochul: They’re always outgrowing their clothes, aren’t they?

Karolina Kolodziejczyk: Yeah. It’s like every year, the whole — everything new for him, so. Thank God, Benjamin. But if it’s still not ripped, he could use it.

Kamil Kolodziejczyk: They’re boys, you know? They’re (inaudible).

Governor Hochul: They’re rough on clothes, boys, aren’t they? I know that, I know that. We used to get clothes at used clothing stores and put it on layaway. You can’t buy it right when you want to buy it so you put it aside and have to come get it later. So, you know, that’s hard. It’s hard.

Karolina Kolodziejczyk: It is hard, and like I said, I do cook at home so getting the groceries, everything we need — it’s a lot.

Kamil Kolodziejczyk: Obviously the vehicles, you got to get bigger because you got car seats with little kids.

Governor Hochul: That’s right.

Kamil Kolodziejczyk: If you had three kids, you got a problem because what are you going to do with it? You can’t put the three car seats in the back of the vehicle. Having a bigger family, you can’t even think of nowadays.

Governor Hochul: Are you going to have a bigger family?

Kamil Kolodziejczyk: No, it’s — you know.

[Laughter]

Governor Hochul: I didn’t want to pry.

Kamil Kolodziejczyk: People that consider a bigger family, they have got to think twice, you know?

Governor Hochul: Yeah, they do. Cost of child care, in some cases, is as much as a first year of college education in a public university or college. Right? I mean, it’s so much — such a big chunk out of family’s lives and so, we’re very focused on that. You know, everything you’re talking about is not unique to you, and a lot of it is out of your control — pandemic, and inflation, and now tariffs are making all the products that even go into the less expensive stores like Walmart or Target; those products are coming from China and there’s now additional costs on them because of the tariffs. So it’s just all adding up. And, I know you feel it, right?

Kamil Kolodziejczyk: Yeah, a hundred percent. Can of all the awful things that we wish —

Karolina Kolodziejczyk: It’s going up.

Governor Hochul: Yeah. And the bills, utility bills and everything. Well, we’re focused on that in government to put you on my Budget. I just wrapped it up and I think it’ll be done another day officially — I’ve been done with my priorities for a little while. I really wanted to figure out a way to put money back in people’s pockets, and it’s people like you — I’ve been thinking about that. Again, none of this you asked for; you came here in search of the American Dream all the way from Poland — that joy of home ownership, which is becoming too rare for people, especially here in Long Island because it’s so expensive. You’re raising your boys here and that’s all good, but sometimes it all feels like it just comes crashing down.

Kamil Kolodziejczyk: Yeah, every month, the first, you’ve got to pay the mortgage, there’s a tax bill comes in, there’s insurance, repairs around the house. So, yeah, it’s definitely —

Governor Hochul: So my goal is to put more money back in your pockets. I talked about my priorities back when I announced my Budget. I said, “Your family is my fight,” as your executive — families that I’m thinking about. So we have found a way, working with the Legislature, to first of all have a middle class tax cut, which will benefit about 80 percent of people on Long Island. About 1.3 million will be able to get part of this tax cut. We also are looking at families like yours, and we just talked about how expensive they are, they outgrow everything. So for families with four-year-olds or under, we’ll give a $1,000 direct rebate to you, and for the kids that are over four, $500.

Kamil Kolodziejczyk: Wow, that’s great.

Governor Hochul: Sound good?

Kamil Kolodziejczyk: Yeah, we could definitely use it. Definitely use it.

Governor Hochul: What would you do with that?

Kamil Kolodziejczyk: Oh, definitely we are going to spend it on first needs — stuff that is needed for the kids. And the summer is coming so we, obviously you want to spend some time with the kids. So maybe that will let us take some time off and maybe go spend more time with the kids doing a little bit, out of trouble.

Governor Hochul: That’s not all. We have the inflation rebate. What does that mean? Because you paid so much more over the last few years because everything was higher, we collected more at the state level because of the sales tax. Right? So sales tax — we collected more so we had this surplus there, which some would say we should spend on other things, or some would say we should just stash away. And I said, “No, this is not our money. It belongs to you because you had to pay more. You didn’t ask for that.” And so, the money we accumulated there we were able to give a family like yours an additional $400.

Kamil Kolodziejczyk: Wow.

Governor Hochul: So $400 there, and in school districts where they don’t cover the school lunches and breakfast, we’re going to pay for that so children that are struggling and their parents don’t have the money to cover it, they won’t feel a stigma. The kids that have to get it subsidized will be able to get it covered. That’s about $1,600 a year that you can either pay for the school lunch with that, or you can — you won’t have to pay this, it’s free — or you can just not have to make the sandwiches anymore. You won’t have to buy the peanut butter and jelly and all those things that are part of your shopping basket that you don’t have to buy now, and all the little snacks. So when your kids are both school aged, that’ll be $3,200 that you don’t have to spend right there

Kamil Kolodziejczyk: That’s great. That’s big.

Governor Hochul: And then a tax rate — the largest middle class tax rate decrease in 70 years. So we’re going to work cutting middle class taxes, the direct rebates, the Child Tax Credit, covering school lunches and breakfasts, and we have calculated, for a family like yours, it should add up to about $5,000 back in your pockets. So that’s the whole goal of my Budget. Was public safety, keeping everybody safe, but also realizing —

Kamil Kolodziejczyk: There’s a middle class that needs help.

Governor Hochul: There’s a middle class that needs help, and we get that, and we want you to keep being successful and not have all these stresses that you have. I can’t take them away from you, but maybe just help a little bit. Right?

Kamil Kolodziejczyk: Of course.

Karolina Kolodziejczyk: I really appreciate it.

Governor Hochul: Anything else you need me to know as I head back to Albany and finish up our work?

Kamil Kolodziejczyk: No, we really appreciated that you remember about the middle class because there’s so many of us around here, not only us, but there’re people that really need that help.

Governor Hochul: Yeah, people come here, especially our immigrants, people who are living here because you want to contribute and have a better life and build a business and expand that. When I come back someday you’re going to have a big business, lots of employees working all over Long Island.

Kamil Kolodziejczyk: Hopefully. Hopefully.

Governor Hochul: Well, Kamil and Karolina, it has been a pleasure just to just catch up with you a little bit, and this is a great reminder to me of why we do what we do and reminds me who we’re fighting for.

Kamil Kolodziejczyk: Thank you. We appreciate that you remembered and took your time to come and visit us.

MIL-OSI: $40M in Rewards. $3.7M Liquidity. Cedar Is Launching on Solana!

Source: GlobeNewswire (MIL-OSI)

London, UK, May 05, 2025 (GLOBE NEWSWIRE) — One of the most anticipated launches on Solana in 2025 is here, and it’s not a game, not a meme, and not a hype-only token. It’s Cedar — and if you’ve been in crypto for more than a minute, you may already have heard about what’s coming.

The evolution of two Binance Smart Chain tokens, including the largest community-driven rewards token in history — distributing a staggering $40 million in BUSD directly to holders. No inflated APRs. No liquidity traps. Just real stablecoin-based income paid out on-chain.

Now Cedar is reborn — and it’s making its most important move yet: a fully revamped launch on Solana, designed for transparency, decentralization, and actual, tangible value for the people who hold it.

Cedar’s Triple Rewards Engine

As Cedar makes its move to Solana, it brings with it a uniquely structured system of three powerful ways for holders to earn real rewards — not just hype, but actual, on-chain value.

Liquidity Fee Sharing
Instead of LP fees going into the pockets of anonymous founders or early backers, Cedar flips the model. Their massive $3.7 million SOL-backed liquidity pool is designed to support deep, stable trading — and it’s the holders who benefit from the fee revenue, not some hidden team wallet.
Pre-Funded Community Treasury
Cedar’s DAO already controls a nearly $1 million rewards fund, set aside to directly benefit the community. This isn’t a future roadmap promise — it’s real, existing capital, ready to be deployed as part of Cedar’s long-term reward plan.
Ecosystem Revenue (Powered by Atlas Wallet)
Cedar’s first major utility, Atlas Wallet, has been in the works for over 2.5 years — and it’s almost ready to go live.
This isn’t a prototype; it’s a security-audited, user-tested, and fully developed product:

Audited by Kudelski Security (who audited Phantom Wallet) and by Certik, one of crypto’s top audit firms
Put through a full beta cycle with real users over a 12 month period.

Atlas is aiming high — toward the MetaMask and Phantom tier of wallets, where monthly revenues can hit $25 million or more. But what sets Cedar apart is this: profits from Atlas won’t go to a private company — they’ll flow back to the Cedar community. If you hold the token, you share in the upside.

A Project with Proven Loyalty and Leadership

Cedar is governed by an 11-member DAO, consisting of long-time project veterans — the same people who helped it distribute millions in stablecoin rewards in 2021. Unlike many new projects with mysterious teams, Cedar is built by people with a track record and a name in the community.

Solana has seen many launches. Cedar may be the first that combines real liquidity, real rewards, and real products into a fully decentralized offering with zero fluff.

Stay Ahead of the Curve:

About Cedar DAO

Cedar DAO is a decentralized finance project focused on delivering stable, community-powered rewards. Originally launched in 2021 on Binance Smart Chain, Cedar distributed $40 million in stablecoin-based payouts to users before preparing its next chapter. Now launching on Solana with $3.7M in $SOL liquidity and $1M in DAO-held rewards, Cedar brings real utility via Atlas Wallet — a premium, audited product that shares revenue with its holders. Built by a long-standing team and governed entirely by its community, Cedar is redefining what it means to launch on Solana.

Website | X | Telegram | Discord

About Atlas Wallet

Atlas Wallet is a secure, all-in-one crypto wallet built for today’s multi-chain world. Designed to support both everyday users and advanced crypto investors, Atlas provides seamless access to top networks including Solana, Ethereum, BSC, PulseChain, Bitcoin, Cardano, Avalanche, Polygon, and Cronos. Whether you’re managing tokens, exploring DeFi, or storing assets long-term, Atlas brings best-in-class usability and security to every corner of the blockchain. It’s the only wallet most users will ever need — and the backbone of Cedar’s product-driven ecosystem.

Website | X

Cedar DAO

Committee
press(at)cedardao.com
https://www.cedardao.com

Disclaimer: The information provided in this release is not investment advice, financial advice, or trading advice. It is recommended that you practice due diligence (including consultation with a professional financial advisor) before investing or trading securities and cryptocurrency.

MIL-OSI: Archrock Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

HOUSTON, May 05, 2025 (GLOBE NEWSWIRE) — Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today reported results for the first quarter 2025.

First Quarter 2025 and Recent Highlights

Revenue for the first quarter of 2025 was $347.2 million compared to $268.5 million in the first quarter of 2024.
Net income for the first quarter of 2025 was $70.9 million and EPS was $0.40, compared to $40.5 million and $0.26, respectively, in the first quarter of 2024.
Adjusted net income (a non-GAAP measure defined below) for the first quarter of 2025 was $74.5 million and adjusted EPS (a non-GAAP measure defined below) was $0.42, compared to $40.5 million and $0.26, respectively, in the first quarter of 2024.
Adjusted EBITDA (a non-GAAP measure defined below) for the first quarter of 2025 was $197.8 million compared to $131.0 million in the first quarter of 2024.
Announced acquisition of Natural Gas Compression Systems, Inc. (“NGCSI”) and NGCSE, Inc. (“NGCSE”) (collectively “NGCS”), which closed on May 1, 2025.
Declared a quarterly dividend of $0.19 per common share for the first quarter of 2025, approximately 15% higher compared to the first quarter of 2024, resulting in dividend coverage of 3.9x.
Raised full-year 2025 Adjusted EBITDA guidance to a range of $790 to $830 million.

Management Commentary and Outlook

“Our outstanding first quarter results were driven by solid execution and our operational transformation from prior and ongoing investments in our high-quality asset base and innovative processes and technology,” said Brad Childers, Archrock’s President and Chief Executive Officer. “We maintained record equipment utilization and, excluding asset sales, grew our operating fleet by over 70,000 horsepower. In addition, we delivered outstanding profitability in both business segments and maintained our sector-leading balance sheet, including a leverage ratio of 3.2x.

“Our excellent underlying business performance and financial strength have positioned us to participate in value-creating industry consolidation. The integration of Total Operations and Production Services is progressing as planned and during the first quarter, we also announced the strategic acquisition of NGCS. The addition of complementary, large horsepower and electric compression assets further enhances our earnings power and position as a premier provider of natural gas compression services.

“We believe our production-oriented business, high-graded operation and outstanding financial position provide us with differentiated cash flow stability. These factors, combined with our robust and committed backlog, give us good visibility into our outlook this coming year, even in the face of macroeconomic uncertainty.

“We are committed to our prudent and returns-based capital allocation approach. Our cash available for dividend coverage remains over 3.0x, we’ve repurchased approximately 977,000 shares totaling $22.7 million during 2025 and the Board of Directors approved an increase in the Company’s share repurchase program by an additional $50 million. We believe the growth in global natural gas demand continues to support infrastructure investment in the U.S., but we are prepared to take decisive action should production growth decelerate,” concluded Childers.

First Quarter 2025 Financial Results

Archrock’s first quarter 2025 net income of $70.9 million included transaction-related costs totaling $3.9 million, a non-cash long-lived and other asset impairment of $1.0 million, and restructuring charges of $0.7 million. Archrock’s first quarter 2024 net income of $40.5 million included a non-cash long-lived and other asset impairment of $2.6 million.

Adjusted EBITDA for the first quarter of 2025 and 2024 included $7.3 million and $2.4 million, respectively, in net gains related to the sale of compression and other assets.

Contract Operations

For the first quarter of 2025, contract operations segment revenue totaled $300.4 million, an increase of 35% compared to $223.1 million in the first quarter of 2024. Adjusted gross margin for the first quarter of 2025 was $210.6 million, up 45% from $145.3 million in the first quarter of 2024. Adjusted gross margin percentage for the first quarter of 2025 was 70%, compared to 65% in the first quarter of 2024. Total operating horsepower at the end of the first quarter of 2025 was 4.3 million, compared to 3.6 million at the end of the first quarter of 2024. Utilization at the end of the first quarter of 2025 was 96%, compared to 95% at the end of the first quarter of 2024.

Aftermarket Services

For the first quarter of 2025, aftermarket services segment revenue totaled $46.8 million, compared to $45.4 million in the first quarter of 2024. Adjusted gross margin for the first quarter of 2025 was $11.5 million, compared to $10.4 million in the first quarter of 2024. Adjusted gross margin percentage for the first quarter of 2025 was 25%, compared to 23% for the first quarter of 2024.

Balance Sheet

Long-term debt was $2.3 billion and our available liquidity totaled $589.9 million at March 31, 2025. Our leverage ratio was 3.2x as of both March 31, 2025 and 2024.

Shareholder Returns

Quarterly Dividend

Our Board of Directors recently declared a quarterly dividend of $0.19 per share of common stock, or $0.76 per share on an annualized basis. Dividend coverage in the first quarter of 2025 was 3.9x. The first quarter 2025 dividend will be paid on May 13, 2025 to stockholders of record at the close of business on May 6, 2025.

Share Repurchase Program

Year to date through May 1, 2025, Archrock repurchased 977,218 common shares at an average price of $23.22 per share, for an aggregate of approximately $22.7 million. Since April 2023, the Company has repurchased 2,460,418 common shares at an average price of $18.24 per share for an aggregate of $44.9 million.

The Board of Directors approved an increase in the Company’s share repurchase program by an additional $50 million through April 27, 2026, resulting in available capacity of $65.2 million as of May 1, 2025.

Updated 2025 Annual Guidance

Archrock is providing revised guidance for the full year 2025. The full-year 2025 guidance below incorporates eight months of the financial impact of the NGCS acquisition that closed on May 1, 2025.

(in thousands, except percentages, per share amounts, and ratios)

	Full Year 2025 Guidance
	Low			High
Net income^{(1) (2)}	$	245,000		$	285,000
Adjusted EBITDA⁽³⁾		790,000			830,000
Cash available for dividend⁽^{4) (5)}		480,000			495,000

Segment
Contract operations revenue	$	1,260,000		$	1,290,000
Contract operations adjusted gross margin percentage		69	%		71	%
Aftermarket services revenue	$	190,000		$	210,000
Aftermarket services adjusted gross margin percentage		22	%		24	%

Selling, general and administrative	$	149,000		$	144,000

Capital expenditures
Growth capital expenditures	$	330,000		$	370,000
Maintenance capital expenditures		110,000			120,000
Other capital expenditures		35,000			50,000

_______________⁽¹⁾2025 annual guidance for net income includes $1.0 million of long-lived and other asset impairment as of March 31, 2025, but does not include the impact of any such future costs, because due to its nature, it cannot be accurately forecasted. Long-lived and other asset impairment does not impact adjusted EBITDA or cash available for dividend, however it is a reconciling item between these measures and net income. Long-lived and other asset impairment for the years 2024 and 2023 was $10.7 million and $12.0 million, respectively.
⁽²⁾Reflects an estimate of expenses incurred related to the acquisitions of Total Operations and Production Services, LLC (“TOPS”) and NGCS.
⁽³⁾Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.
⁽⁴⁾Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.
⁽⁵⁾A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate cash provided by operating activities, including changes in assets and liabilities, are not estimable at this time. Changes in assets and liabilities were $(25.8) million and $(28.0) million for the years 2024 and 2023, respectively.

Summary Metrics
(in thousands, except percentages, per share amounts and ratios)

	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Net income	$	70,850		$	59,758		$	40,532
Adjusted net income ⁽¹⁾	$	74,484		$	61,533		$	40,532
Adjusted EBITDA ⁽¹⁾	$	197,845		$	183,844		$	131,024

Contract operations revenue	$	300,397		$	286,466		$	223,051
Contract operations adjusted gross margin	$	210,598		$	200,245		$	145,308
Contract operations adjusted gross margin percentage		70	%		70	%		65	%

Aftermarket services revenue	$	46,766		$	39,950		$	45,437
Aftermarket services adjusted gross margin	$	11,509		$	9,054		$	10,437
Aftermarket services adjusted gross margin percentage		25	%		23	%		23	%

Selling, general, and administrative	$	37,207		$	42,234		$	31,665

Net cash provided by operating activities	$	115,628		$	124,338		$	137,702
Cash available for dividend⁽¹⁾	$	132,247		$	118,089		$	82,026
Cash available for dividend coverage ⁽²⁾		3.9	x		3.5	x		3.2	x

Adjusted free cash flow ⁽¹⁾	$	(48,403	)	$	68,945		$	51,779
Adjusted free cash flow after dividend ⁽¹⁾	$	(82,588	)	$	38,255		$	25,779

Total available horsepower (at period end) ⁽³⁾		4,461			4,401			3,780
Total operating horsepower (at period end) ⁽⁴⁾		4,283			4,227			3,593
Horsepower utilization spot (at period end) ⁽⁵⁾		96	%		96	%		95	%

_______________⁽¹⁾Management believes adjusted net income, adjusted EBITDA, cash available for dividend, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.
⁽²⁾Defined as cash available for dividend divided by dividends declared for the period.
⁽³⁾Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us.
⁽⁴⁾Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue.
⁽⁵⁾Defined as total available horsepower divided by total operating horsepower at period end.

Conference Call Details

Archrock will host a conference call on May 6, 2025, to discuss first quarter 2025 financial results. The call will begin at 10:30 a.m. Eastern Time.

To listen to the call via a live webcast, please visit Archrock’s website at www.archrock.com. The call will also be available by dialing 1 (800) 715-9871 in the United States or 1 (646) 307-1963 for international calls. The access code is 4749623.

A replay of the webcast will be available on Archrock’s website for 90 days following the event.

Adjusted net income, a non-GAAP measure, is defined as net income (loss) excluding restructuring charges and transaction-related costs adjusted for income taxes. A reconciliation of net income to adjusted net income, the most directly comparable GAAP measure, and a reconciliation of basic and diluted earnings per common share to adjusted earnings per share, the most directly comparable GAAP measure, appear below.

Adjusted EBITDA, a non-GAAP measure, is defined as net income (loss) excluding interest expense, income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items. A reconciliation of net income to adjusted EBITDA, the most directly comparable GAAP measure, and a reconciliation of our full year 2025 net income to adjusted EBITDA guidance appear below.

Adjusted gross margin, a non-GAAP measure, is defined as revenue less cost of sales, exclusive of depreciation and amortization. Adjusted gross margin percentage, a non-GAAP measure, is defined as adjusted gross margin divided by revenue. A reconciliation of net income to adjusted gross margin, the most directly comparable GAAP measure, and a reconciliation of gross margin to adjusted gross margin and adjusted gross margin percentage appear below.

Cash available for dividend, a non-GAAP measure, is defined as net income (loss) excluding interest expense, income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items, less maintenance capital expenditures, other capital expenditures, cash taxes and cash interest expense. Reconciliations of net income to cash available for dividend and net income to net cash provided by operating activities, the most directly comparable GAAP measures, and a reconciliation of our full year 2025 net income to cash available for dividend guidance appear below.

Adjusted free cash flow, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash provided by (used in) investing activities. A reconciliation of net cash provided by operating activities to adjusted free cash flow, the most directly comparable GAAP measure, appears below.

Adjusted free cash flow after dividend, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash provided by (used in) investing activities less dividends paid to stockholders. A reconciliation of net cash provided by operating activities to adjusted free cash flow after dividend, the most directly comparable GAAP measure, appears below.

About Archrock

Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how Archrock embodies its purpose, WE POWER A CLEANER AMERICA, visit www.archrock.com.

Forward–Looking Statements

All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Archrock. Forward-looking information includes, but is not limited to statements regarding: guidance or estimates related to Archrock’s results of operations or of financial condition; fundamentals of Archrock’s industry, including the attractiveness of returns and valuation, stability of cash flows, demand dynamics and overall outlook, and Archrock’s ability to realize the benefits thereof; Archrock’s expectations regarding future economic, geopolitical and market conditions and trends; Archrock’s operational and financial strategies, including planned growth, coverage and leverage reduction strategies, Archrock’s ability to successfully effect those strategies, and the expected results therefrom; Archrock’s financial and operational outlook; demand and growth opportunities for Archrock’s services; structural and process improvement initiatives, the expected timing thereof, Archrock’s ability to successfully effect those initiatives and the expected results therefrom; the operational and financial synergies provided by Archrock’s size; statements regarding Archrock’s dividend policy; the expected benefits of the TOPS Acquisition, including its expected accretion and the expected impact on Archrock’s leverage ratio; and plans and objectives of management for future operations.

While Archrock believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: inability to achieve the expected benefits of the NGCS acquisition and difficulties in integrating NGCS; risks of acquisitions or mergers, including the NGCS acquisition, to reduce our ability to make distributions to our common stockholders; risks related to macroeconomic conditions, including an increase in inflation and trade tensions; pandemics and other public health crises; ongoing international conflicts and tensions; risks related to our operations; competitive pressures; risks of acquisitions to reduce our ability to make distributions to our common stockholders; inability to make acquisitions on economically acceptable terms; uncertainty to pay dividends in the future; risks related to a substantial amount of debt and our debt agreements; inability to access the capital and credit markets or borrow on affordable terms to obtain additional capital; inability to fund purchases of additional compression equipment; vulnerability to interest rate increases; erosion of the financial condition of our customers; risks related to the loss of our most significant customers; uncertainty of the renewals for our contract operations service agreements; risks related to losing management or operational personnel; dependence on particular suppliers and vulnerability to product shortages and price increases; information technology and cybersecurity risks; tax-related risks; legal and regulatory risks, including climate-related and environmental, social and governance risks.

These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock’s Annual Report on Form 10-K for the year ended December 31, 2024, Archrock’s Quarterly Reports on Form 10-Q and those set forth from time to time in Archrock’s filings with the Securities and Exchange Commission, which are available at www.archrock.com. Except as required by law, Archrock expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

SOURCE: Archrock, Inc.

For information, contact:

Megan Repine
VP of Investor Relations
281-836-8360
investor.relations@archrock.com

Archrock, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share amounts)

	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Revenue:
Contract operations	$	300,397		$	286,466		$	223,051
Aftermarket services		46,766			39,950			45,437
Total revenue		347,163			326,416			268,488

Cost of sales, exclusive of depreciation and amortization
Contract operations		89,799			86,221			77,743
Aftermarket services		35,257			30,896			35,000
Total cost of sales, exclusive of depreciation and amortization		125,056			117,117			112,743

Selling, general and administrative		37,207			42,234			31,665
Depreciation and amortization		57,620			58,129			42,835
Long-lived and other asset impairment		972			1,203			2,568
Restructuring charges		665			—			—
Interest expense		37,741			38,238			27,334
Transaction-related costs		3,935			2,247			—
Gain on sale of assets, net		(7,335	)		(12,712	)		(2,381	)
Other (income) expense, net		(684	)		1,598			139
Income before income taxes		91,986			78,362			53,585
Provision for income taxes		21,136			18,604			13,053
Net income	$	70,850		$	59,758		$	40,532

Basic and diluted net income per common share ⁽¹⁾	$	0.40		$	0.34		$	0.26

Weighted-average common shares outstanding:
Basic		174,014			173,451			154,187
Diluted		174,371			173,848			154,501

_______________
⁽¹⁾Basic and diluted net income per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted net income per common share.

Archrock, Inc. Unaudited Supplemental Information (in thousands, except percentages, per share amounts and ratios)

	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Revenue:
Contract operations	$	300,397		$	286,466		$	223,051
Aftermarket services		46,766			39,950			45,437
Total revenue	$	347,163		$	326,416		$	268,488

Adjusted gross margin:
Contract operations	$	210,598		$	200,245		$	145,308
Aftermarket services		11,509			9,054			10,437
Total adjusted gross margin ⁽¹⁾	$	222,107		$	209,299		$	155,745

Adjusted gross margin percentage:
Contract operations		70	%		70	%		65	%
Aftermarket services		25	%		23	%		23	%
Total adjusted gross margin percentage ⁽¹⁾		64	%		64	%		58	%

Selling, general and administrative	$	37,207		$	42,234		$	31,665
% of revenue		11	%		13	%		12	%

Adjusted EBITDA ⁽¹⁾	$	197,845		$	183,844		$	131,024
% of revenue		57	%		56	%		49	%

Capital expenditures	$	168,140		$	97,988		$	99,755
Proceeds from sale of property, plant and equipment and other assets		(2,904	)		(43,387	)		(13,844	)
Net capital expenditures	$	165,236		$	54,601		$	85,911

Total available horsepower (at period end) ⁽²⁾		4,461			4,401			3,780
Total operating horsepower (at period end) ⁽³⁾		4,283			4,227			3,593
Average operating horsepower		4,254			4,205			3,606
Horsepower utilization:
Spot (at period end) ⁽⁴⁾		96	%		96	%		95	%
Average ⁽⁴⁾		96	%		95	%		96	%

Dividend declared for the period per share	$	0.190		$	0.190		$	0.165
Dividend declared for the period to all stockholders	$	33,758		$	33,487		$	25,978
Cash available for dividend coverage ⁽⁵⁾		3.9	x		3.5	x		3.2	x

Adjusted free cash flow ⁽¹⁾	$	(48,403	)	$	68,945		$	51,779
Adjusted free cash flow after dividend ⁽¹⁾	$	(82,588	)	$	38,255		$	25,779

_______________⁽¹⁾Management believes adjusted gross margin, adjusted EBITDA, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.
⁽²⁾Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us.
⁽³⁾Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue.
⁽⁴⁾Defined as total available horsepower divided by total operating horsepower at period end (spot) or over time (average).
⁽⁵⁾Defined as cash available for dividend divided by dividends declared for the period.

	March 31,		December 31,		March 31,
	2025		2024		2024
Balance Sheet
Long-term debt ⁽¹⁾	$	2,297,767	$	2,198,376	$	1,566,566
Total equity		1,349,983		1,323,531		882,080

_______________
⁽¹⁾Carrying values are shown net of unamortized premium and deferred financing costs.

Archrock, Inc. Unaudited Supplemental Information Reconciliation of Net Income to Adjusted Net Income and Earnings Per Share to Adjusted Earnings Per Share (in thousands, except per share amounts)

	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Net income	$	70,850		$	59,758		$	40,532
Restructuring charges		665			—			—
Transaction-related costs		3,935			2,247			—
Tax effect of adjustments ⁽¹⁾		(966	)		(472	)		—
Adjusted net income ⁽²⁾	$	74,484		$	61,533		$	40,532

Weighted-average common shares outstanding used in diluted earnings per common share		174,371			173,451			154,401

Basic and diluted earnings per common share ⁽³⁾	$	0.40		$	0.34		$	0.26
Restructuring charges per share		0.00			—			—
Transaction-related costs per share		0.03			0.01			—
Tax effect of adjustments per share		(0.01	)		(0.00	)		—
Adjusted earnings per share ⁽²⁾	$	0.42		$	0.35		$	0.26

_______________
⁽¹⁾Represents tax effect of restructuring charges and transaction-related costs based on statutory tax rate.
⁽²⁾Management believes adjusted net income and adjusted earnings per share provides useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review our current period operating performance, comparability measure and performance measure for period-to-period comparisons without burdened earnings and earnings per share for non-recurring transactional costs.
⁽³⁾Basic and diluted net income per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted net income per common share.

Archrock, Inc. Unaudited Supplemental Information Reconciliation of Net Income to Adjusted EBITDA and Adjusted Gross Margin (in thousands)

	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Net income	$	70,850		$	59,758		$	40,532
Depreciation and amortization		57,620			58,129			42,835
Long-lived and other asset impairment		972			1,203			2,568
Unrealized change in fair value of investment in unconsolidated affiliate		—			1,484			—
Restructuring charges		665			—			—
Interest expense		37,741			38,238			27,334
Transaction-related costs		3,935			2,247			—
Stock-based compensation expense		4,027			3,431			3,964
Amortization of capitalized implementation costs		762			750			738
Indemnification expense, net		137			—			—
Provision for income taxes		21,136			18,604			13,053
Adjusted EBITDA ⁽¹⁾		197,845			183,844			131,024
Selling, general and administrative		37,207			42,234			31,665
Stock-based compensation expense		(4,027	)		(3,431	)		(3,964	)
Amortization of capitalized implementation costs		(762	)		(750	)		(738	)
Gain on sale of assets, net		(7,335	)		(12,712	)		(2,381	)
Other (income) expense, net		(684	)		1,598			139
Adjusted gross margin ⁽¹⁾	$	222,107		$	209,299		$	155,745

_______________
⁽¹⁾Management believes adjusted EBITDA and adjusted gross margin provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

Archrock, Inc. Unaudited Supplemental Information Reconciliation of Total Revenue to Adjusted Gross Margin and Adjusted Gross Margin Percentage (in thousands)

	Three Months Ended
	March 31,					December 31,					March 31,
	2025					2024					2024
Total revenues	$	347,163				$	326,416				$	268,488
Cost of sales, exclusive of depreciation and amortization		(125,056	)				(117,117	)				(112,743	)
Depreciation and amortization		(57,620	)				(58,129	)				(42,835	)
Gross margin and gross margin percentage		164,487		47	%		151,170		46	%		112,910		42	%
Depreciation and amortization		57,620					58,129					42,835
Adjusted gross margin and adjusted gross margin percentage ⁽¹⁾	$	222,107		64	%	$	209,299		64	%	$	155,745		58	%

_______________
⁽¹⁾Management believes adjusted gross margin and adjusted gross margin percentage provide useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

Archrock, Inc. Unaudited Supplemental Information Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend (in thousands)

	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Net income	$	70,850		$	59,758		$	40,532
Depreciation and amortization		57,620			58,129			42,835
Long-lived and other asset impairment		972			1,203			2,568
Unrealized change in fair value of investment in unconsolidated affiliate		—			1,484			—
Restructuring charges		665			—			—
Interest expense		37,741			38,238			27,334
Transaction-related costs		3,935			2,247			—
Stock-based compensation expense		4,027			3,431			3,964
Amortization of capitalized implementation costs		762			750			738
Indemnification expense, net		137			—			—
Provision for income taxes		21,136			18,604			13,053
Adjusted EBITDA ⁽¹⁾		197,845			183,844			131,024
Less: Maintenance capital expenditures		(22,753	)		(21,623	)		(19,525	)
Less: Other capital expenditures		(6,019	)		(7,023	)		(2,920	)
Less: Cash tax (payment) refund		(92	)		134			89
Less: Cash interest expense		(36,734	)		(37,243	)		(26,642	)
Cash available for dividend ⁽²⁾	$	132,247		$	118,089		$	82,026

_______________⁽¹⁾Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.
⁽²⁾Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.

Archrock, Inc. Unaudited Supplemental Information Reconciliation of Net Cash Provided by Operating Activities to Cash Available for Dividend (in thousands)

	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Net cash provided by operating activities	$	115,628		$	124,338		$	137,702
Inventory write-downs		(188	)		18			(199	)
Provision for credit losses		(156	)		(286	)		75
Gain on sale of assets, net		7,335			12,712			2,381
Current income tax provision		1,182			997			593
Cash tax (payment) refund		(92	)		134			89
Amortization of operating lease ROU assets		(1,204	)		(1,063	)		(947	)
Amortization of contract costs		(5,889	)		(6,106	)		(5,768	)
Deferred revenue recognized in earnings		3,746			5,294			2,859
Indemnification expense, net		137			—			—
Cash restructuring charges		665			—			—
Cash transaction-related costs		3,935			2,247			—
Time-based cash or equity settled units settled as equity		(1,756	)		—			—
Changes in assets and liabilities		37,676			8,450			(32,314	)
Maintenance capital expenditures		(22,753	)		(21,623	)		(19,525	)
Other capital expenditures		(6,019	)		(7,023	)		(2,920	)
Cash available for dividend ⁽¹⁾	$	132,247		$	118,089		$	82,026

_______________
⁽¹⁾Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.

Archrock, Inc. Unaudited Supplemental Information Reconciliation of Net Cash Provided By Operating Activities to Adjusted Free Cash Flow and Adjusted Free Cash Flow After Dividend (in thousands)

	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Net cash provided by operating activities	$	115,628		$	124,338		$	137,702
Net cash used in investing activities		(164,031	)		(55,393	)		(85,923	)
Adjusted free cash flow ⁽¹⁾		(48,403	)		68,945			51,779
Dividends paid to stockholders		(34,185	)		(30,690	)		(26,000	)
Adjusted free cash flow after dividend ⁽¹⁾	$	(82,588	)	$	38,255		$	25,779

_______________
⁽¹⁾Management believes adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

Archrock, Inc. Unaudited Supplemental Information Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend Guidance (in thousands)

	Annual Guidance Range
	2025
	Low			High
Net income ⁽¹⁾	$	245,000		$	285,000
Interest expense		165,000			165,000
Provision for income taxes		98,000			98,000
Depreciation and amortization		248,000			248,000
Stock-based compensation expense		18,000			18,000
Long-lived and other asset impairment		1,000			1,000
Amortization of capitalized implementation costs		4,000			4,000
Transaction-related costs ⁽²⁾		10,000			10,000
Restructuring charges		1,000			1,000
Adjusted EBITDA ⁽³⁾		790,000			830,000
Less: Maintenance capital expenditures		(110,000	)		(120,000	)
Less: Other capital expenditures		(35,000	)		(50,000	)
Less: Cash tax expense		(5,000	)		(5,000	)
Less: Cash interest expense		(160,000	)		(160,000	)
Cash available for dividend ⁽⁴⁾⁽⁵⁾	$	480,000		$	495,000

_______________⁽¹⁾2025 annual guidance for net income includes $1.0 million of long-lived and other asset impairment as of March 31, 2025, but does not include the impact of any such future costs, because due to its nature, it cannot be accurately forecasted. Long-lived and other asset impairment does not impact Adjusted EBITDA or cash available for dividend, however it is a reconciling item between these measures and net income. Long-lived and other asset impairment for the years 2024 and 2023 was $10.7 million and $12.0 million, respectively.
⁽²⁾Reflects an estimate of expenses to be incurred related to the TOPS and NGCS acquisitions.
⁽³⁾Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.
⁽⁴⁾Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.
⁽⁵⁾A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate cash provided by operating activities, including changes in assets and liabilities, are not estimable at this time. Changes in assets and liabilities were $(25.8) million and $(28.0) million for the years 2024 and 2023, respectively.

MIL-OSI: SiriusPoint reports tenth consecutive quarter of underwriting profits and strong net income of $58m

Source: GlobeNewswire (MIL-OSI)

HAMILTON, Bermuda, May 05, 2025 (GLOBE NEWSWIRE) — SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE:SPNT) today announced results for its first quarter ended March 31, 2025

Combined ratio of 95.4% in the first quarter for Core business with underwriting income of $29 million
Net premiums written growth of 20%, outpacing gross premiums written growth of 12% in the quarter for Core business, with strong growth from Insurance & Services
First quarter return on equity of 12.9%, within 12-15% ‘across the cycle’ return on equity target range
$59 million net impact from California Wildfires in the quarter, below guided range from the fourth quarter
Book value per diluted common share (ex. AOCI) of $15.15, up 3.5% in the quarter. Balance sheet remains strong with Q1’25 BSCR estimate at 227%
During the quarter, AM Best and Fitch affirmed our ratings and revised our outlook to Positive from Stable

Scott Egan, Chief Executive Officer, said: “2025 has got off to a strong start. Our aim to deliver stable and consistent earnings can be seen with our first quarter return on equity of 12.9%, well within our 12-15% target range as our diverse portfolio performed well against the backdrop of elevated natural catastrophe losses.

Our growth momentum continues, with Core gross premiums written growing by 12% in the quarter, while net premiums written increased at a faster pace of 20%, as we seek to retain a greater proportion of our increasingly profitable book. The Core underwriting result saw improvements across multiple fronts, with the attritional loss ratio, acquisition cost ratio, and underwriting expense ratios all decreasing and contributing to a 3.0 point reduction in total across these areas.

Our earnings per share of $0.49 was flat to prior year despite lower net income, demonstrating the significant accretion benefits now being derived from the previously announced share repurchases. Our strong earnings resulted in an increase to book value of 5% in the quarter.

Our focus will be to maintain this momentum and continue to deliver and improve throughout 2025. We are pleased to see our outlook move to Positive from Stable this year for both AM Best and Fitch. These are important proof points of our progress.”

First Quarter 2025 Highlights

Net income attributable to SiriusPoint common shareholders of $57.6 million, or $0.49 per diluted common share
Core income of $47.4 million, including underwriting income of $28.5 million, Core combined ratio of 95.4%
Core net services fee income of $19.0 million, with service margin of 30.6%
Net investment income of $71.2 million and total investment result of $70.9 million
Book value per diluted common share increased $0.77 per share, or 5.3%, from December 31, 2024 to $15.37
Annualized return on average common equity of 12.9%

Key Financial Metrics

The following table shows certain key financial metrics for the three months ended March 31, 2025 and 2024:

		2025			2024
	($ in millions, except for per share data and ratios)
Combined ratio		91.4	%		84.9	%
Core underwriting income (1)	$	28.5		$	44.3
Core net services income (1)	$	18.9		$	18.1
Core income (1)	$	47.4		$	62.4
Core combined ratio (1)		95.4	%		91.4	%
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders		12.9	%		15.4	%
Book value per common share (2)	$	15.73		$	14.92
Book value per diluted common share (2)	$	15.37		$	14.60
Book value per diluted common share ex. AOCI (1) (2)	$	15.15		$	14.64
Tangible book value per diluted common share (1) (2)	$	14.21		$	13.42

(1)

Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See definitions in “Non-GAAP Financial Measures” and reconciliations in “Segment Reporting.” Book value per diluted common share ex. AOCI and tangible book value per diluted common share are non-GAAP financial measures. See definition and reconciliation in “Non-GAAP Financial Measures.”

(2)

Prior year comparatives represent amounts as of December 31, 2024.

First Quarter 2025 Summary

Consolidated underwriting income for the three months ended March 31, 2025 was $54.1 million compared to $89.6 million for the three months ended March 31, 2024. The decrease was primarily driven by increased catastrophe losses from the California wildfires, partially offset by increased favorable development in Property, mainly from reserve releases relating to prior year’s catastrophe events, and in A&H, due to lower than expected reported attritional losses.

Reportable Segments

The determination of our reportable segments is based on the manner in which management monitors the performance of our operations, which consist of two reportable segments – Reinsurance and Insurance & Services.

Collectively, the sum of our two segments, Reinsurance and Insurance & Services, constitute our “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See reconciliations in “Segment Reporting”. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.

Core Premium Volume

Gross premiums written increased by $109.2 million, or 12.4%, to $989.9 million for the three months ended March 31, 2025 compared to $880.7 million for the three months ended March 31, 2024. Net premiums earned increased by $108.0 million, or 20.9%, to $625.8 million for the three months ended March 31, 2025 compared to $517.8 million for the three months ended March 31, 2024. The increases in premium volume were primarily driven by our Insurance & Services segment, including growth across A&H, expansion of Surety within our Other Specialties business line and continued strategic organic and new program growth in our international business.

Core Results

Core results for the three months ended March 31, 2025 included income of $47.4 million compared to $62.4 million for the three months ended March 31, 2024. Income for the three months ended March 31, 2025 consists of underwriting income of $28.5 million (95.4% combined ratio) and net services income of $18.9 million, compared to underwriting income of $44.3 million (91.4% combined ratio) and net services income of $18.1 million for the three months ended March 31, 2024. The decrease in net underwriting results was primarily driven by increased catastrophe losses, partially offset by increased favorable development and lower attritional losses.

Catastrophe losses for the three months ended March 31, 2025 were $67.9 million, or 10.9 percentage points on the combined ratio, primarily from the California wildfires, compared to minimal losses for the three months ended March 31, 2024. Losses incurred included $34.3 million of favorable prior year loss reserve development for the three months ended March 31, 2025 primarily driven by favorable development in Property, mainly from reserve releases relating to prior year’s catastrophe events, as well as favorable development in A&H, due to lower than expected reported attritional losses, compared to $8.0 million for the three months ended March 31, 2024 driven by decreased ultimate losses in the Credit reinsurance portfolio.

Net services income remained stable for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Service margin, which is calculated as Net service fee income as a percentage of services revenues, increased to 30.6% for the three months ended March 31, 2025 from 30.1% for the three months ended March 31, 2024.

Reinsurance Segment

Reinsurance gross premiums written were $354.8 million for the three months ended March 31, 2025, an decrease of $1.6 million, or 0.4%, compared to the three months ended March 31, 2024, primarily driven by reduced premiums written in Casualty reflecting underwriting actions to improve profitability, partially offset by increased reinstatement premiums of $8.9 million related to our Property Catastrophe business.

Reinsurance generated underwriting income of $8.4 million (97.1% combined ratio) for the three months ended March 31, 2025, compared to underwriting income of $39.9 million (84.2% combined ratio) for the three months ended March 31, 2024. The decrease in net underwriting results was primarily driven by increased catastrophe losses of $63.1 million, or 21.8 percentage points on the combined ratio, primarily from the California wildfires, compared to minimal losses for the three months ended March 31, 2024. This was partially offset by increased favorable prior year loss reserve development of $31.8 million for the three months ended March 31, 2025 primarily driven by favorable development in Property, mainly from reserve releases relating to prior year’s catastrophe events, compared to $10.3 million for the three months ended March 31, 2024 primarily driven by decreased ultimate losses in the Credit reinsurance portfolio.

Insurance & Services Segment

Insurance & Services gross premiums written were $635.1 million for the three months ended March 31, 2025, an increase of $110.8 million, or 21.1%, compared to the three months ended March 31, 2024, primarily driven by growth across A&H, expansion of Surety within our Other Specialties business line and continued strategic organic and new program growth in our international business.

Insurance & Services generated segment income of $39.0 million for the three months ended March 31, 2025, compared to $22.5 million for the three months ended March 31, 2024. Segment income for the three months ended March 31, 2025 consists of underwriting income of $20.1 million (94.0% combined ratio) and net services income of $18.9 million, compared to underwriting income of $4.4 million (98.4% combined ratio) and net services income of $18.1 million for the three months ended March 31, 2024. The improvement in underwriting results was primarily driven by our decreased loss ratio mainly from lower attritional losses, as well as net favorable prior year loss reserve development of $2.5 million for the three months ended March 31, 2025, mainly in A&H, compared to net adverse prior year loss reserve development of $2.3 million for the three months ended March 31, 2024.

Investments

Net investment income and net realized and unrealized investment gains (losses) for the three months ended March 31, 2025 and 2024 were mainly driven by interest income of $63.4 million and $76.9 million, respectively, on our debt securities and short-term investments. The decrease is driven by a lower asset base as of March 31, 2025 after executing various share repurchase transactions in 2024 and 2025.

Webcast Details

The Company will hold a webcast to discuss its first quarter 2025 results at 8:30 a.m. Eastern Time on May 6, 2025. The webcast of the conference call will be available over the Internet from the Company’s website at www.siriuspt.com under the “Investor Relations” section. Participants should follow the instructions provided on the website to download and install any necessary audio applications. The conference call will be available by dialing 1-877-451-6152 (domestic) or 1-201-389-0879 (international). Participants should ask for the SiriusPoint Ltd. first quarter 2025 earnings call.

The online replay will be available on the Company’s website immediately following the call at www.siriuspt.com under the “Investor Relations” section.

Safe Harbor Statement Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “believes,” “intends,” “seeks,” “anticipates,” “aims,” “plans,” “targets,” “estimates,” “expects,” “assumes,” “continues,” “guidance,” “should,” “could,” “will,” “may” and the negative of these or similar terms and phrases. Specific forward-looking statements in this press release include, but are not limited to, statements regarding the trend of our performance as compared to the previous guidance, the current insurtech market trends, our ability to generate shareholder value, and whether we will continue to have momentum in our business in the future. Actual events, results and outcomes may differ materially from the Company’s expectations due to a variety of known and unknown risks, uncertainties and other factors. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: our ability to execute on our strategic transformation, including re-underwriting to reduce volatility and improve underwriting performance, de-risking our investment portfolio, and transforming our business; the impact of unpredictable catastrophic events, including uncertainties with respect to current and future COVID-19 losses across many classes of insurance business and the amount of insurance losses that may ultimately be ceded to the reinsurance market, supply chain issues, labor shortages and related increased costs, changing interest rates and equity market volatility; inadequacy of loss and loss adjustment expense reserves, the lack of available capital, and periods characterized by excess underwriting capacity and unfavorable premium rates; the performance of financial markets, impact of inflation and interest rates, and foreign currency fluctuations; our ability to compete successfully in the insurance and reinsurance market and the effect of consolidation in the insurance and reinsurance industry; technology breaches or failures, including those resulting from a malicious cyber-attack on us, our business partners or service providers; the effects of global climate change, including wildfires, and increased severity and frequency of weather-related natural disasters and catastrophes and increased coastal flooding in many geographic areas; geopolitical uncertainty, including the ongoing conflicts in Europe and the Middle East and the new presidential administration in the U.S.; global economic uncertainty caused by the imposition and/or announcement of tariffs imposed on the import of certain goods into the U.S. from various countries which may have unpredictable consequences including, but not limited to, inflation or trade wars, potential impact on the Company’s credit and mortgage business and potential increase in credit spread which could impact the Company’s short-term capital and liquidity; our ability to retain key senior management and key employees; a downgrade or withdrawal of our financial ratings; fluctuations in our results of operations; legal restrictions on certain of SiriusPoint’s insurance and reinsurance subsidiaries’ ability to pay dividends and other distributions to SiriusPoint; the outcome of legal and regulatory proceedings and regulatory constraints on our business; reduced returns or losses in SiriusPoint’s investment portfolio; our exposure or potential exposure to corporate income tax in Bermuda and the E.U., U.S. federal income and withholding taxes and our significant deferred tax assets, which could become devalued if we do not generate future taxable income or applicable corporate tax rates are reduced; risks associated with delegating authority to third party managing general agents; future strategic transactions such as acquisitions, dispositions, investments, mergers or joint ventures; and other risks and factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and other subsequent periodic reports filed with the Securities and Exchange Commission.

All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures and Other Financial Metrics

In presenting SiriusPoint’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). SiriusPoint’s management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of SiriusPoint’s financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. Core underwriting income, Core net services income, Core income, and Core combined ratio are non-GAAP financial measures. Management believes it is useful to review Core results as it better reflects how management views the business and reflects the Company’s decision to exit the runoff business. Book value per diluted common share excluding accumulated other comprehensive income (loss) (“AOCI”) and tangible book value per diluted common share, as presented, are non-GAAP financial measures and the most directly comparable U.S. GAAP measure is book value per common share. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates. Management believes the effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP figures are included in the attached financial information in accordance with Regulation G and Item 10(e) of Regulation S-K, as applicable.

About the Company

SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT). We have licenses to write Property & Casualty and Accident & Health insurance and reinsurance globally. Our offering and distribution capabilities are strengthened by a portfolio of strategic partnerships with Managing General Agents and Program Administrators. With approximately $2.7 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Excellent) from AM Best, S&P and Fitch, and A3 from Moody’s. For more information, please visit www.siriuspt.com.

Contacts

Investor Relations
Liam Blackledge – Investor Relations and Strategy Manager
Liam.Blackledge@siriuspt.com
+ 44 203 772 3082

Media
Natalie King – Global Head of Marketing and External Communications
Natalie.King@siriuspt.com
+ 44 770 728 8817


SIRIUSPOINT LTD. CONSOLIDATED BALANCE SHEETS (UNAUDITED) As of March 31, 2025 and December 31, 2024 (expressed in millions of U.S. dollars, except per share and share amounts)

	March 31, 2025		December 31, 2024
Assets
Debt securities, available for sale, at fair value, net of allowance for credit losses of $0.0 (2024 – $1.1) (cost – $4,617.0; 2024 – $5,143.8)	$	4,635.2	$	5,131.0
Debt securities, trading, at fair value (cost – $140.9; 2024 – $187.3)		117.6		162.2
Short-term investments, at fair value (cost – $48.2; 2024 – $95.3)		48.2		95.8
Other long-term investments, at fair value (cost – $437.9; 2024 – $438.2) (includes related party investments at fair value of $220.1 (2024 – $217.2))		317.7		316.5
Total investments		5,118.7		5,705.5
Cash and cash equivalents		740.3		682.0
Restricted cash and cash equivalents		184.9		212.6
Due from brokers		18.8		11.2
Interest and dividends receivable		42.1		44.0
Insurance and reinsurance balances receivable, net		2,240.8		2,054.4
Deferred acquisition costs, net		369.3		327.5
Unearned premiums ceded		514.3		463.9
Loss and loss adjustment expenses recoverable, net		2,335.7		2,315.3
Deferred tax asset		293.3		297.0
Intangible assets		137.9		140.8
Other assets		284.4		270.7
Total assets	$	12,280.5	$	12,524.9
Liabilities
Loss and loss adjustment expense reserves	$	5,762.6	$	5,653.9
Unearned premium reserves		1,816.8		1,639.2
Reinsurance balances payable		1,707.5		1,781.6
Deposit liabilities		15.6		17.4
Deferred gain on retroactive reinsurance		6.6		8.5
Debt		663.5		639.1
Due to brokers		6.6		18.0
Deferred tax liability		94.2		76.2
Share repurchase liability		—		483.0
Other liabilities		180.4		269.2
Total liabilities		10,253.8		10,586.1
Commitments and contingent liabilities
Shareholders’ equity
Series B preference shares (par value $0.10; authorized and issued: 8,000,000)		200.0		200.0
Common shares (issued and outstanding: 116,020,526; 2023 – 116,429,057)		11.6		11.6
Additional paid-in capital		944.7		945.0
Retained earnings		842.5		784.9
Accumulated other comprehensive income (loss), net of tax		26.4		(4.1	)
Shareholders’ equity attributable to SiriusPoint shareholders		2,025.2		1,937.4
Noncontrolling interests		1.5		1.4
Total shareholders’ equity		2,026.7		1,938.8
Total liabilities, noncontrolling interests and shareholders’ equity	$	12,280.5	$	12,524.9


SIRIUSPOINT LTD. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) For the three months ended March 31, 2025 and 2024 (expressed in millions of U.S. dollars, except per share and share amounts)

		2025			2024
Revenues
Net premiums earned	$	626.7		$	593.8
Net investment income		71.2			78.8
Net realized and unrealized investment gains (losses)		(0.3	)		1.0
Net investment income and net realized and unrealized investment gains (losses)		70.9			79.8
Other revenues		29.7			27.8
Loss on settlement and change in fair value of liability-classified capital instruments		—			(15.9	)
Total revenues		727.3			685.5
Expenses
Loss and loss adjustment expenses incurred, net		401.8			317.5
Acquisition costs, net		129.7			144.9
Other underwriting expenses		41.1			41.8
Net corporate and other expenses		60.6			56.0
Intangible asset amortization		2.9			2.9
Interest expense		18.1			20.5
Foreign exchange gains		(2.2	)		(3.7	)
Total expenses		652.0			579.9
Income before income tax expense		75.3			105.6
Income tax expense		(13.3	)		(9.7	)
Net income		62.0			95.9
Net income attributable to noncontrolling interests		(0.4	)		(1.1	)
Net income available to SiriusPoint		61.6			94.8
Dividends on Series B preference shares		(4.0	)		(4.0	)
Net income available to SiriusPoint common shareholders	$	57.6		$	90.8
Earnings per share available to SiriusPoint common shareholders
Basic earnings per share available to SiriusPoint common shareholders	$	0.50		$	0.50
Diluted earnings per share available to SiriusPoint common shareholders	$	0.49		$	0.49
Weighted average number of common shares used in the determination of earnings per share
Basic		115,975,961			168,934,114
Diluted		118,555,166			174,380,963


SIRIUSPOINT LTD. SEGMENT REPORTING

	Three months ended March 31, 2025
	Reinsurance			Insurance & Services			Core			Eliminations ⁽²⁾			Corporate			Segment Measure Reclass			Total
Gross premiums written	$	354.8		$	635.1		$	989.9		$	—		$	(5.2	)	$	—		$	984.7
Net premiums written		268.5			483.5			752.0			—			(9.0	)		—			743.0
Net premiums earned		289.6			336.2			625.8			—			0.9			—			626.7
Loss and loss adjustment expenses incurred, net		195.3			209.9			405.2			(2.0	)		(1.4	)		—			401.8
Acquisition costs, net		67.1			87.3			154.4			(28.0	)		3.3			—			129.7
Other underwriting expenses		18.8			18.9			37.7			—			3.4			—			41.1
Underwriting income (loss)		8.4			20.1			28.5			30.0			(4.4	)		—			54.1
Services revenues		—			62.1			62.1			(30.2	)		—			(31.9	)		—
Services expenses		—			43.1			43.1			—			—			(43.1	)		—
Net services fee income		—			19.0			19.0			(30.2	)		—			11.2			—
Services noncontrolling income		—			(0.1	)		(0.1	)		—			—			0.1			—
Net services income		—			18.9			18.9			(30.2	)		—			11.3			—
Segment income (loss)		8.4			39.0			47.4			(0.2	)		(4.4	)		11.3			54.1
Net investment income														71.2			—			71.2
Net realized and unrealized investment losses														(0.3	)		—			(0.3	)
Other revenues														(2.2	)		31.9			29.7
Net corporate and other expenses														(17.5	)		(43.1	)		(60.6	)
Intangible asset amortization														(2.9	)		—			(2.9	)
Interest expense														(18.1	)		—			(18.1	)
Foreign exchange gains														2.2			—			2.2
Income before income tax expense	$	8.4		$	39.0			47.4			(0.2	)		28.0			0.1			75.3
Income tax expense								—			—			(13.3	)		—			(13.3	)
Net income								47.4			(0.2	)		14.7			0.1			62.0
Net income attributable to noncontrolling interest								—			—			(0.3	)		(0.1	)		(0.4	)
Net income available to SiriusPoint							$	47.4		$	(0.2	)	$	14.4		$	—		$	61.6

Attritional losses	$	164.0		$	207.6		$	371.6		$	(2.0	)	$	(1.5	)	$	—		$	368.1
Catastrophe losses		63.1			4.8			67.9			—			—			—			67.9
Prior year loss reserve development		(31.8	)		(2.5	)		(34.3	)		—			0.1			—			(34.2	)
Loss and loss adjustment expenses incurred, net	$	195.3		$	209.9		$	405.2		$	(2.0	)	$	(1.4	)	$	—		$	401.8

Underwriting Ratios: ⁽¹⁾
Attritional loss ratio		56.6	%		61.7	%		59.3	%											58.8	%
Catastrophe loss ratio		21.8	%		1.4	%		10.9	%											10.8	%
Prior year loss development ratio	(11.0)%			(0.7)%			(5.5)%												(5.5)%
Loss ratio		67.4	%		62.4	%		64.7	%											64.1	%
Acquisition cost ratio		23.2	%		26.0	%		24.7	%											20.7	%
Other underwriting expenses ratio		6.5	%		5.6	%		6.0	%											6.6	%
Combined ratio		97.1	%		94.0	%		95.4	%											91.4	%

(1)	Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)	Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

	Three months ended March 31, 2024
	Reinsurance			Insurance & Services			Core			Eliminations ⁽²⁾			Corporate			Segment Measure Reclass			Total
Gross premiums written	$	356.4		$	524.3		$	880.7		$	—		$	25.9		$	—		$	906.6
Net premiums written		290.1			337.1			627.2			—			12.1			—			639.3
Net premiums earned		253.6			264.2			517.8			—			76.0			—			593.8
Loss and loss adjustment expenses incurred, net		124.6			176.5			301.1			(1.4	)		17.8			—			317.5
Acquisition costs, net		69.8			65.2			135.0			(33.2	)		43.1			—			144.9
Other underwriting expenses		19.3			18.1			37.4			—			4.4			—			41.8
Underwriting income		39.9			4.4			44.3			34.6			10.7			—			89.6
Services revenues		—			65.8			65.8			(37.1	)		—			(28.7	)		—
Services expenses		—			46.0			46.0			—			—			(46.0	)		—
Net services fee income		—			19.8			19.8			(37.1	)		—			17.3			—
Services noncontrolling income		—			(1.7	)		(1.7	)		—			—			1.7			—
Net services income		—			18.1			18.1			(37.1	)		—			19.0			—
Segment income		39.9			22.5			62.4			(2.5	)		10.7			19.0			89.6
Net investment income														78.8			—			78.8
Net realized and unrealized investment gains														1.0			—			1.0
Other revenues														(0.9	)		28.7			27.8
Loss on settlement and change in fair value of liability-classified capital instruments														(15.9	)		—			(15.9	)
Net corporate and other expenses														(10.0	)		(46.0	)		(56.0	)
Intangible asset amortization														(2.9	)		—			(2.9	)
Interest expense														(20.5	)		—			(20.5	)
Foreign exchange gains														3.7			—			3.7
Income before income tax expense	$	39.9		$	22.5			62.4			(2.5	)		44.0			1.7			105.6
Income tax expense								—			—			(9.7	)		—			(9.7	)
Net income								62.4			(2.5	)		34.3			1.7			95.9
Net (income) loss attributable to noncontrolling interest								—			—			0.6			(1.7	)		(1.1	)
Net income available to SiriusPoint							$	62.4		$	(2.5	)	$	34.9		$	—		$	94.8

Attritional losses	$	134.9		$	174.2		$	309.1		$	(1.4	)	$	48.7		$	—		$	356.4
Prior year loss reserve development		(10.3	)		2.3			(8.0	)		—			(30.9	)		—			(38.9	)
Loss and loss adjustment expenses incurred, net	$	124.6		$	176.5		$	301.1		$	(1.4	)	$	17.8		$	—		$	317.5

Underwriting Ratios: ⁽¹⁾
Attritional loss ratio		53.2	%		65.9	%		59.7	%											60.0	%
Prior year loss development ratio	(4.1)%				0.9	%	(1.6)%												(6.5)%
Loss ratio		49.1	%		66.8	%		58.1	%											53.5	%
Acquisition cost ratio		27.5	%		24.7	%		26.1	%											24.4	%
Other underwriting expenses ratio		7.6	%		6.9	%		7.2	%											7.0	%
Combined ratio		84.2	%		98.4	%		91.4	%											84.9	%

(1)	Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)	Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

SIRIUSPOINT LTD.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS & OTHER FINANCIAL MEASURES

Non-GAAP Financial Measures

Core Results

Collectively, the sum of the Company’s two segments, Reinsurance and Insurance & Services, constitute “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.

Core underwriting income – calculated by subtracting loss and loss adjustment expenses incurred, net, acquisition costs, net, and other underwriting expenses from net premiums earned.

Core net services income – consists of services revenues which include commissions, brokerage and fee income related to consolidated MGAs, and other revenues, as well as services expenses which include direct expenses related to consolidated MGAs and services noncontrolling income which represent minority ownership interests in consolidated MGAs. Net services income is a key indicator of the profitability of the Company’s services provided.

Core income – consists of two components, core underwriting income and core net services income. Core income is a key measure of our segment performance.

Core combined ratio – calculated by dividing the sum of Core loss and loss adjustment expenses incurred, net, acquisition costs, net and other underwriting expenses by Core net premiums earned. Accident year loss ratio and accident year combined ratio are calculated by excluding prior year loss reserve development to present the impact of current accident year net loss and loss adjustment expenses on the Core loss ratio and Core combined ratio, respectively. Attritional loss ratio excludes catastrophe losses from the accident year loss ratio as they are not predictable as to timing and amount. These ratios are useful indicators of our underwriting profitability.

Book Value Per Diluted Common Share Metrics

Book value per diluted common share excluding AOCI and tangible book value per diluted common share, as presented, are non-GAAP financial measures and the most directly comparable U.S. GAAP measure is book value per common share. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates. Tangible book value per diluted common share excludes intangible assets. Management believes that effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Tangible book value per diluted common share is useful because it provides a more accurate measure of the realizable value of shareholder returns, excluding intangible assets.

The following table sets forth the computation of book value per common share, book value per diluted common share and tangible book value per diluted common share as of March 31, 2025 and December 31, 2024:

	March 31, 2025		December 31, 2024
	($ in millions, except share and per share amounts)
Common shareholders’ equity attributable to SiriusPoint common shareholders	$	1,825.2	$	1,737.4

Accumulated other comprehensive income (loss), net of tax		26.4		(4.1	)
Common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI		1,798.8		1,741.5

Intangible assets		137.9		140.8
Tangible common shareholders’ equity attributable to SiriusPoint common shareholders	$	1,687.3	$	1,596.6

Common shares outstanding		116,020,526		116,429,057
Effect of dilutive stock options, restricted share units and warrants		2,708,756		2,559,359
Book value per diluted common share denominator		118,729,282		118,988,416

Book value per common share	$	15.73	$	14.92
Book value per diluted common share	$	15.37	$	14.60
Book value per diluted common share ex. AOCI	$	15.15	$	14.64
Tangible book value per diluted common share	$	14.21	$	13.42

Other Financial Measures

Annualized Return on Average Common Shareholders’ Equity Attributable to SiriusPoint Common Shareholders

Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing annualized net income available to SiriusPoint common shareholders for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.

Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the three months ended March 31, 2025 and 2024 was calculated as follows:

		2025			2024
	($ in millions)
Net income available to SiriusPoint common shareholders	$	57.6		$	90.8
Common shareholders’ equity attributable to SiriusPoint common shareholders – beginning of period		1,737.4			2,313.9
Common shareholders’ equity attributable to SiriusPoint common shareholders – end of period		1,825.2			2,402.6
Average common shareholders’ equity attributable to SiriusPoint common shareholders	$	1,781.3		$	2,358.3
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders		12.9	%		15.4	%

MIL-Evening Report: We’ve heard the promises. Now it’s up to Labor to deliver its housing, wages and other economic policies

Source: The Conversation (Au and NZ) – By Michelle Cull, Associate Professor of Accounting and Financial Planning, Western Sydney University

With a convincing win for a second term of government, the pressure is now on the new Labor government to deliver the economic policies central to its win.

Prime Minister Anthony Albanese is wary of breaking promises and now has the opportunity to back this up. So, what are the key economic policies affecting everyday Australians that Labor is now set to deliver?

In his victory speech, Albanese said Labor would govern for every Australian “who deserves the security of a roof over their head or dreams of owning their own home”.

First home buyers

Labor has budgeted A$10 billion to help more Australians buy their first home. This involves providing an extra 100,000 new homes. The government plans to work with the states from July to identify where they should be located.

Building these homes is expected to take eight years – so the scheme will not be completed during the government’s second term. It will need to work quickly to ensure many of these homes are built while Labor is still in office.

Helping this is Labor’s policy to increase subsidies to housing apprentices and free TAFE education.

Also assisting first home buyers is the expansion of the 5% deposit Home Guarantee Scheme. This will allow more first home buyers to buy a home with only a 5% deposit without paying Lenders Mortgage Insurance.

The expansion will remove income thresholds and increase eligible property price caps to better reflect the market. Further, more people will be able to apply for the scheme.

The government plans to extend existing and introduce several new policies to help more people buy a home.
Fizkes/Shutterstock

In addition, the government is expanding its Help to Buy Scheme by increasing income and property price caps. This enables those on lower incomes to buy a home with a deposit as small as 2%. The government will pay for up to 40% of the cost on their behalf which will ultimately be paid back over time or when the house is sold.

Both the Help to Buy Scheme and Home Guarantee Scheme are extensions of Labor’s existing policies, so the government should be able to deliver this relatively quickly.

Increasing supply for all

Labor’s housing policies are not limited to first home buyers. To further increase housing supply, Labor plans to invest $54 million to speed up the construction of prefabricated and modular homes covered by a new national certification system.

In addition, a $1.5 billion infrastructure program to speed up the building of roads, sewage and water connections should also help increase supply.

Labor is on track to build 55,000 social and affordable homes through the Housing Australia Future Fund and the Social Housing Accelerator. Labor is also offering Build to Rent tax incentives to increase affordable housing rental supply by up to 80,000 new rental properties.

The government has also promised to work with states and territories to strengthen renters’ rights.

Crisis housing

Labor has also made promises for those needing crisis housing.

For women and children fleeing family and domestic violence and for people experiencing homelessness, there is a $1 billion program to provide more crisis and transitional accommodation. There is also $6.2 million of grants for homelessness support.

Workers’ pay rise

Labor has advocated to the Fair Work Commission for a wage increase above inflation for workers in low-paid jobs, such as cleaners, retail workers and early childhood educators.

With inflation currently at 2.4%, we can expect the minimum wage to rise to at least $24.68 an hour. The Fair Work Commission’s next Annual Wage Review should take place before the end of the financial year, with any changes likely to be effective from July.

Labor has backed an above-inflation wage increase for workers in low paid industries.
Dejan Dunjerski/Shutterstock

These wage increases are in addition to the substantial pay increase for aged care nurses as part of the Fair Work Commission’s Aged Care Work Value Case decision.

Tax cuts

The much-discussed tax cuts, costing $17 billion, will reduce the 16% tax rate to 15% (for income between $18,201 and $45,000) in the 2026–27 financial year, and to 14% in 2027–28 – just in time for the next election.

This will save taxpayers $268 and $536, respectively. These tax cuts will be welcomed by many and are likely to increase the labour participation rate. However, more tax reform may be needed to address bracket creep and improve equity in the tax system.

In addition, Labor has promised an automatic instant tax deduction for work-related expenses for labour income taxpayers.

This will take effect from the 2026–27 financial year to reduce the burden of record-keeping on taxpayers. It was also promoted as a way of “helping Australians keep more of what they earn”.

Medicare levy

While low wages are expected to increase and taxes to decrease, Labor also has plans to increase the low-income thresholds for the Medicare levy by 4.7% for singles, families, and seniors and pensioners from July 1 2024.

This should bring immediate relief to those on lower incomes who will be exempt from paying the Medicare levy or pay a reduced levy when lodging their returns for the 2024–25 financial year.

So, what’s next?

Many of these policy announcements are a step in the right direction – the question lies around their ability to be implemented.

Albanese admitted in his victory speech that he is an optimist and his aim is to ensure nobody is left behind.

Once the election hype settles, Labor will need to prove it is delivering on its promises. And, of course, these policies will ultimately have to be paid for. How Labor approaches this in the longer term will become a talking point for the next election.

Michelle Cull is a member of CPA Australia, the Financial Advice Association Australia and President Elect of the Academy of Financial Services in the United States. Michelle is an academic member of UniSuper’s Consultative Committee. Michelle Cull co-founded the Western Sydney University Tax Clinic which has received funding from the Australian Taxation Office as part of the National Tax Clinic Program. Michelle has previously volunteered as Chair of the Macarthur Advisory Council for the Salvation Army Australia.

– ref. We’ve heard the promises. Now it’s up to Labor to deliver its housing, wages and other economic policies – https://theconversation.com/weve-heard-the-promises-now-its-up-to-labor-to-deliver-its-housing-wages-and-other-economic-policies-255865

MIL OSI Analysis – EveningReport.nz –

MIL-OSI USA: Credit Suisse Services AG Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore Accounts and Admits that Credit Suisse Breached Its Prior Plea Agreement

Source: US Justice – Antitrust Division

Headline: Credit Suisse Services AG Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore Accounts and Admits that Credit Suisse Breached Its Prior Plea Agreement

Credit Suisse Services AG pleaded guilty and was sentenced today to conspiring to hide more than $4 billion from the IRS in at least 475 offshore accounts. The guilty plea by the Swiss corporation is the result of a years-long investigation by U.S. law enforcement to uncover financial fraud and abuse.

MIL-OSI Canada: Check the box, save a life

Source: Government of Canada regional news (2)

Hundreds of Albertans are waiting for life-saving organ or tissue transplants. By making it easier to learn more about donation, Alberta’s government is helping raise awareness and potentially increasing the number of registered donors across the province.

Starting with the 2025 tax year, Alberta’s T1 tax form will include a check box that allows Albertans to ask for more information about organ and tissue donation. Those who check the box will receive an email from the provincial government with details about how donation works in Alberta and how to register their wishes.

“This simple step can help save lives. The more Albertans who register, the more patients and families can hold on to hope for a second chance. We hope this change encourages more Albertans to start the conversation and register their wishes.”
Adriana LaGrange, Minister of Health

This initiative builds on Bill C-210, introduced by former Alberta MLA and member of Parliament Len Webber. The bill, which received royal assent in June 2021, allows provinces to add a donation information check box to federal tax forms. Alberta is following the lead of British Columbia and Ontario. Ontario has seen a 32 per cent increase in registrations since adding the check box.

In addition, organ and tissue donation programming will now fall under Acute Care Alberta, ensuring provincewide coordination and enhancing the efficiency of the donation and transplant system.

Alberta’s government is committed to raising awareness about organ and tissue donation. Albertans can learn more about organ and tissue donation, and register their wishes on the Alberta Organ and Tissue Donation Registry at GiveLifeAlberta.ca.

Quick facts

899,868 Albertans have registered their consent to become an organ and tissue donor as of April 28.
One organ donor can save up to eight lives, while one tissue donor can improve the lives of up to 75 people.
The Human Tissue and Organ Donation Act governs the organ and tissue donation and transplant system in Alberta.
There are strict security measures around the transfer of email addresses from the Canada Revenue Agency to a provincial government.

Related news

Advancing cancer care and organ tissue services (April 8, 2025)
Specialist donor physicians to help save lives (May 9, 2022)
Expanding the organ and tissue registry (July 13, 2020)

MIL OSI Canada News –

MIL-OSI: Diamondback Energy, Inc. Announces First Quarter 2025 Financial and Operating Results

Source: GlobeNewswire (MIL-OSI)

MIDLAND, Texas, May 05, 2025 (GLOBE NEWSWIRE) — Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the first quarter ended March 31, 2025.

FIRST QUARTER 2025 AND RECENT HIGHLIGHTS

Average oil production of 475.9 MBO/d (850.7 MBOE/d)
Net cash provided by operating activities of $2.4 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $2.5 billion
Cash capital expenditures of $942 million
Free Cash Flow (as defined and reconciled below) of $1.5 billion; Adjusted Free Cash Flow (as defined and reconciled below) of $1.6 billion
Declared Q1 2025 base cash dividend of $1.00 per share payable on May 22, 2025; implies a 2.9% annualized yield based on May 2, 2025 closing share price of $136.81
Repurchased 3,656,044 shares of common stock in Q1 2025 for $575 million excluding excise tax (at a weighted average price of $157.15 per share); repurchased 1,965,180 shares of common stock to date in Q2 2025 for $255 million excluding excise tax (at a weighted average price of $129.71 per share)
Total Q1 2025 return of capital of $864 million; represents ~55% of Adjusted Free Cash Flow (as defined and reconciled below) from stock repurchases and the declared Q1 2025 base dividend
As previously announced, closed acquisition of certain subsidiaries of Double Eagle IV Midco, LLC (“Double Eagle”) on April 1st
Closed drop down transaction to Viper Energy, Inc. (“Viper”), a subsidiary of Diamondback, on May 1st

UPDATED 2025 GUIDANCE HIGHLIGHTS

As a result of recent commodity price volatility, Diamondback is reducing activity in order to prioritize free cash flow generation. The Company believes this revised plan enhances capital efficiency and provides flexibility to (i) cut additional capital if prices weaken further or (ii) resume its original 2025 plan if commodity prices strengthen.

Full year oil production of 480 – 495 MBO/d (857 – 900 MBOE/d)
Full year 2025 cash capital expenditures guidance of $3.4 – $3.8 billion
The Company expects to drill 385 – 435 gross (349 – 395 net) wells and complete between 475 – 550 gross (444 – 514 net) wells with an average lateral length of approximately 11,500 feet in 2025
Q2 2025 oil production guidance of 485 – 500 MBO/d (866 – 900 MBOE/d)
Q2 2025 cash capital expenditures guidance of $800 – $900 million
Implies full year 2025 oil production per million dollars of cash capital expenditures (“MBO per $MM of CAPEX”) of 49.4, ~10% better than the Company’s original full year 2025 guidance provided in February 2025

OPERATIONS UPDATE

The tables below provide a summary of operating activity for the first quarter of 2025.

Total Activity (Gross Operated):
	Number of Wells Drilled	Number of Wells Completed
Midland Basin	124	116
Delaware Basin	2	7
Total	126	123

Total Activity (Net Operated):
	Number of Wells Drilled	Number of Wells Completed
Midland Basin	116	112
Delaware Basin	2	7
Total	118	119

During the first quarter of 2025, Diamondback drilled 124 gross wells in the Midland Basin and two gross wells in the Delaware Basin. The Company turned 116 operated wells to production in the Midland Basin and seven gross wells in the Delaware Basin, with an average lateral length of 11,978 feet. Operated completions during the first quarter consisted of 30 Wolfcamp A wells, 28 Lower Spraberry wells, 22 Wolfcamp B wells, 17 Jo Mill wells, eight Middle Spraberry wells, four Dean wells, four Barnett wells, three Third Bone Spring wells, three Wolfcamp D wells, two Second Bone Spring wells and two Upper Spraberry wells.

FINANCIAL UPDATE

Diamondback’s first quarter 2025 net income was $1.4 billion, or $4.83 per diluted share. Adjusted net income (as defined and reconciled below) for the first quarter was $1.3 billion, or $4.54 per diluted share.

First quarter 2025 net cash provided by operating activities was $2.4 billion.

During the first quarter of 2025, Diamondback spent $864 million on operated drilling and completions, $21 million on capital workovers and non-operated drilling and completions and $57 million on infrastructure, environmental and midstream, for total cash capital expenditures of $942 million.

First quarter 2025 Consolidated Adjusted EBITDA (as defined and reconciled below) was $2.9 billion. Adjusted EBITDA net of non-controlling interest (as defined and reconciled below) for the first quarter was $2.8 billion.

Diamondback’s first quarter 2025 Free Cash Flow (as defined and reconciled below) was $1.5 billion. Adjusted Free Cash Flow (as reconciled and defined below) for the first quarter was $1.6 billion.

First quarter 2025 average unhedged realized prices were $70.95 per barrel of oil, $2.11 per Mcf of natural gas and $23.94 per barrel of natural gas liquids (“NGLs”), resulting in a total equivalent unhedged realized price of $47.77 per BOE.

Diamondback’s cash operating costs for the first quarter of 2025 were $10.48 per BOE, including lease operating expenses (“LOE”) of $5.33 per BOE, cash general and administrative (“G&A”) expenses of $0.72 per BOE, production and ad valorem taxes of $2.98 per BOE and gathering, processing and transportation expenses of $1.45 per BOE.

As of March 31, 2025, Diamondback had $1.3 billion in standalone cash and no borrowings outstanding under its revolving credit facility, with approximately $2.5 billion available for future borrowings under the facility and approximately $3.8 billion of total liquidity. As of March 31, 2025, the Company had consolidated total debt of $14.1 billion and consolidated net debt (as defined and reconciled below) of $12.3 billion, up from consolidated total debt of $13.2 billion and consolidated net debt of $13.0 billion as of December 31, 2024.

DIVIDEND DECLARATIONS

Diamondback announced today that the Company’s Board of Directors declared a base cash dividend of $1.00 per common share for the first quarter of 2025 payable on May 22, 2025 to stockholders of record at the close of business on May 15, 2025.

Future base and variable dividends remain subject to review and approval at the discretion of the Company’s Board of Directors.

COMMON STOCK REPURCHASE PROGRAM

During the first quarter of 2025, Diamondback repurchased ~3.7 million shares of common stock at an average share price of $157.15 for a total cost of approximately $575 million, excluding excise tax. To date, Diamondback has repurchased ~30.2 million shares of common stock at an average share price of $137.55 for a total cost of approximately $4.2 billion and has approximately $1.8 billion remaining on its current share buyback authorization. Subject to factors discussed below, Diamondback intends to continue to purchase common stock under the common stock repurchase program opportunistically with cash on hand, free cash flow from operations and proceeds from potential liquidity events such as the sale of assets. This repurchase program has no time limit and may be suspended from time to time, modified, extended or discontinued by the Board at any time. Purchases under the repurchase program may be made from time to time in privately negotiated transactions, or in open market transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and will be subject to market conditions, applicable regulatory and legal requirements and other factors. Any common stock purchased as part of this program will be retired.

FULL YEAR 2025 GUIDANCE

Below is Diamondback’s updated guidance for the full year 2025, which includes second quarter production, cash tax and capital guidance. Given recent weakness in commodity prices, the Company is reducing its activity levels and lowering its capital budget to prioritize free cash generation. Diamondback will continue to closely monitor the macro environment and has flexibility to (i) cut additional capital if prices weaken further or (ii) resume its original 2025 plan if commodity prices strengthen.

	2025 Guidance	2025 Guidance
	Diamondback Energy, Inc.	Viper Energy, Inc.

2025 Net production – MBOE/d	857 – 900 (from 883 – 909)	74.5 – 79.0
2025 Oil production – MBO/d	480 – 495 (from 485 – 498)	41.0 – 43.5
Q2 2025 Oil production – MBO/d (total – MBOE/d)	485 – 500 (866 – 900)	40.0 – 43.0 (72.5 – 78.0)

Unit costs ($/BOE)
Lease operating expenses, including workovers	$5.65 – $6.05 (from $5.90 – $6.30)
G&A
Cash G&A	$0.60 – $0.75	$0.80 – $1.00
Non-cash equity-based compensation	$0.25 – $0.35	$0.10 – $0.20
DD&A	$14.00 – $15.00	$15.50 – $16.50
Interest expense (net of interest income)	$0.40 – $0.65 (from $0.25 – $0.50)	$2.00 – $2.50
Gathering, processing and transportation	$1.40 – $1.60 (from $1.20 – $1.40)

Production and ad valorem taxes (% of revenue)	~7%	~7%
Corporate tax rate (% of pre-tax income)	23%
Cash tax rate (% of pre-tax income)	19% – 22% (from 17% – 20%)	21% – 23%
Q2 2025 Cash taxes ($ – million)⁽¹⁾	$340 – $400	$10 – $15

Capital Budget ($ – million)
Operated drilling and completion	$2,780 – $3,090 (from $3,130 – $3,440)
Capital workovers, non-operated properties and science	$280 – $320
Infrastructure, environmental and midstream⁽²⁾	$340 – $390 (from $390 – $440)
2025 Total capital expenditures	$3,400 – $3,800 (from $3,800 – $4,200)
Q2 2025 Capital expenditures	$800 – $900

Gross horizontal wells drilled (net)	385 – 435 (349 – 395) (from 446 – 471 (406 – 428))
Gross horizontal wells completed (net)	475 – 550 (444 – 514) (from 557 – 592 (526 – 560))
Average lateral length (Ft.)	~11,500′
FY 2025 Midland Basin well costs per lateral foot	$550 – $590 (from $555 – $605)
FY 2025 Delaware Basin well costs per lateral foot	$860 – $910
Midland Basin completed net lateral feet (%)	~95%
Delaware Basin completed net lateral feet (%)	~5%

^⁽¹⁾	Includes approximately $170 million of cash taxes related to the Viper dropdown transaction.
^⁽²⁾	Includes approximately $60 million in estimated midstream capital expenditures for the full year 2025.

CONFERENCE CALL

Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2025 on Tuesday, May 6, 2025 at 8:00 a.m. CT. Access to the webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Diamondback’s website at www.diamondbackenergy.com under the “Investor Relations” section of the site.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the recently completed Endeavor merger, the recently completed Double Eagle acquisition and other acquisitions or divestitures); and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Diamondback are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers, and any resulting trade tensions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial markets; inflationary pressures; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change; those risks described in Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 26, 2025, and those risks disclosed in its subsequent filings on Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this letter or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.


Diamondback Energy, Inc.
Condensed Consolidated Balance Sheets
(unaudited, in millions, except share amounts)

	March 31,			December 31,
	2025			2024
Assets
Current assets:
Cash and cash equivalents ($560 million and $27 million related to Viper)	$	1,816		$	161
Restricted cash		225			3
Accounts receivable:
Joint interest and other, net		257			198
Oil and natural gas sales, net ($146 million and $149 million related to Viper)		1,334			1,387
Inventories		117			116
Derivative instruments		267			168
Prepaid expenses and other current assets		67			77
Total current assets		4,083			2,110
Property and equipment:
Oil and natural gas properties, full cost method of accounting ($22,019 million and $22,666 million excluded from amortization at March 31, 2025 and December 31, 2024, respectively) ($6,097 million and $5,713 million related to Viper and $2,279 million and $2,180 million excluded from amortization related to Viper)		83,727			82,240
Other property, equipment and land		1,452			1,440
Accumulated depletion, depreciation, amortization and impairment ($1,148 million and $1,081 million related to Viper)		(20,283	)		(19,208	)
Property and equipment, net		64,896			64,472
Funds held in escrow		208			1
Equity method investments		383			375
Derivative instruments		61			2
Deferred income taxes, net ($249 million and $185 million related to Viper)		235			173
Other assets		200			159
Total assets	$	70,066		$	67,292
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable – trade	$	124		$	253
Accrued capital expenditures		754			690
Current maturities of debt		914			900
Other accrued liabilities		761			1,020
Revenues and royalties payable		1,575			1,491
Derivative instruments		75			43
Income taxes payable		550			414
Total current liabilities		4,753			4,811
Long-term debt ($822 million and $1,083 million related to Viper)		12,996			12,075
Derivative instruments		93			106
Asset retirement obligations		586			573
Deferred income taxes		9,887			9,826
Other long-term liabilities		8			39
Total liabilities		28,323			27,430
Stockholders’ equity:
Common stock, $0.01 par value; 800,000,000 shares authorized; 287,287,926 and 290,984,373 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		3			3
Additional paid-in capital		33,125			33,501
Retained earnings (accumulated deficit)		5,352			4,238
Accumulated other comprehensive income (loss)		(7	)		(6	)
Total Diamondback Energy, Inc. stockholders’ equity		38,473			37,736
Non-controlling interest		3,270			2,126
Total equity		41,743			39,862
Total liabilities and stockholders’ equity	$	70,066		$	67,292


Diamondback Energy, Inc.
Condensed Consolidated Statements of Operations
(unaudited, $ in millions except per share data, shares in thousands)

	Three Months Ended March 31,
		2025			2024
Revenues:
Oil, natural gas and natural gas liquid sales	$	3,657		$	2,101
Sales of purchased oil		374			116
Other operating income		17			10
Total revenues		4,048			2,227
Costs and expenses:
Lease operating expenses		408			255
Production and ad valorem taxes		228			119
Gathering, processing and transportation		111			77
Purchased oil expense		382			117
Depreciation, depletion, amortization and accretion		1,097			469
General and administrative expenses		73			46
Merger and integration expense		37			12
Other operating expenses		39			14
Total costs and expenses		2,375			1,109
Income (loss) from operations		1,673			1,118
Other income (expense):
Interest expense, net		(40	)		(39	)
Other income (expense), net		27			(3	)
Gain (loss) on derivative instruments, net		226			(48	)
Gain (loss) on extinguishment of debt		—			2
Income (loss) from equity investments, net		8			2
Total other income (expense), net		221			(86	)
Income (loss) before income taxes		1,894			1,032
Provision for (benefit from) income taxes		403			223
Net income (loss)		1,491			809
Net income (loss) attributable to non-controlling interest		86			41
Net income (loss) attributable to Diamondback Energy, Inc.	$	1,405		$	768

Earnings (loss) per common share:
Basic	$	4.83		$	4.28
Diluted	$	4.83		$	4.28
Weighted average common shares outstanding:
Basic		289,612			178,477
Diluted		289,612			178,477


Diamondback Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in millions)

	Three Months Ended March 31,
		2025			2024
Cash flows from operating activities:
Net income (loss)	$	1,491		$	809
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for (benefit from) deferred income taxes		6			52
Depreciation, depletion, amortization and accretion		1,097			469
(Gain) loss on extinguishment of debt		—			(2	)
(Gain) loss on derivative instruments, net		(226	)		48
Cash received (paid) on settlement of derivative instruments		85			(4	)
(Income) loss from equity investment, net		(8	)		(2	)
Equity-based compensation expense		18			14
Other		24			16
Changes in operating assets and liabilities:
Accounts receivable		(6	)		(95	)
Income tax receivable		3			12
Prepaid expenses and other current assets		6			89
Accounts payable and accrued liabilities		(374	)		(110	)
Income taxes payable		135			70
Revenues and royalties payable		84			(35	)
Other		20			3
Net cash provided by (used in) operating activities		2,355			1,334
Cash flows from investing activities:
Additions to oil and natural gas properties		(942	)		(609	)
Property acquisitions		(750	)		(153	)
Proceeds from sale of assets		41			12
Other		(2	)		(1	)
Net cash provided by (used in) investing activities		(1,653	)		(751	)
Cash flows from financing activities:
Proceeds from borrowings under credit facilities		2,277			90
Repayments under credit facilities		(2,538	)		(80	)
Proceeds from senior notes		1,200			—
Repayment of senior notes		—			(25	)
Repurchased shares under buyback program		(575	)		(42	)
Proceeds from partial sale of investment in Viper Energy, Inc.		—			451
Net proceeds from Viper’s issuance of common stock		1,232			—
Dividends paid to stockholders		(290	)		(548	)
Dividends/distributions to non-controlling interest		(95	)		(44	)
Other		(36	)		(71	)
Net cash provided by (used in) financing activities		1,175			(269	)
Net increase (decrease) in cash and cash equivalents		1,877			314
Cash, cash equivalents and restricted cash at beginning of period		164			585
Cash, cash equivalents and restricted cash at end of period	$	2,041		$	899


Diamondback Energy, Inc.
Selected Operating Data
(unaudited)

	Three Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024
Production Data:
Oil (MBbls)		42,835		43,785		24,874
Natural gas (MMcf)		100,578		107,249		50,602
Natural gas liquids (MBbls)		16,961		19,615		8,653
Combined volumes (MBOE)⁽¹⁾		76,559		81,275		41,961

Daily oil volumes (BO/d)		475,944		475,924		273,341
Daily combined volumes (BOE/d)		850,656		883,424		461,110

Average Prices:
Oil ($ per Bbl)	$	70.95	$	69.48	$	75.06
Natural gas ($ per Mcf)	$	2.11	$	0.48	$	0.99
Natural gas liquids ($ per Bbl)	$	23.94	$	19.27	$	21.26
Combined ($ per BOE)	$	47.77	$	42.71	$	50.07

Oil, hedged ($ per Bbl)⁽²⁾	$	70.06	$	68.72	$	74.13
Natural gas, hedged ($ per Mcf)⁽²⁾	$	3.34	$	0.82	$	1.36
Natural gas liquids, hedged ($ per Bbl)⁽²⁾	$	23.94	$	19.27	$	21.26
Average price, hedged ($ per BOE)⁽²⁾	$	48.89	$	42.76	$	49.97

Average Costs per BOE:
Lease operating expenses	$	5.33	$	5.67	$	6.08
Production and ad valorem taxes		2.98		2.77		2.84
Gathering, processing and transportation expense		1.45		1.17		1.84
General and administrative – cash component		0.72		0.69		0.76
Total operating expense – cash	$	10.48	$	10.30	$	11.52

General and administrative – non-cash component	$	0.24	$	0.20	$	0.34
Depreciation, depletion, amortization and accretion	$	14.33	$	14.22	$	11.18
Interest expense, net	$	0.52	$	0.42	$	0.93

(1)	Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
(2)	Hedged prices reflect the effect of our commodity derivative transactions on our average sales prices and include gains and losses on cash settlements for matured commodity derivatives, which we do not designate for hedge accounting. Hedged prices exclude gains or losses resulting from the early settlement of commodity derivative contracts.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as net income (loss) attributable to Diamondback Energy, Inc., plus net income (loss) attributable to non-controlling interest (“net income (loss)”) before non-cash (gain) loss on derivative instruments, net, interest expense, net, depreciation, depletion, amortization and accretion, depreciation and interest expense related to equity method investments, (gain) loss on extinguishment of debt, if any, non-cash equity-based compensation expense, capitalized equity-based compensation expense, merger and integration expenses, other non-cash transactions and provision for (benefit from) income taxes, if any. Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA is useful because the measure allows it to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. The Company adds the items listed above to net income (loss) to determine Adjusted EBITDA because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Further, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. The Company’s computation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts.

The following tables present a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP financial measure of Adjusted EBITDA:

Diamondback Energy, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(unaudited, in millions)

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Net income (loss) attributable to Diamondback Energy, Inc.	$	1,405		$	1,074		$	768
Net income (loss) attributable to non-controlling interest		86			216			41
Net income (loss)		1,491			1,290			809
Non-cash (gain) loss on derivative instruments, net		(141	)		(51	)		44
Interest expense, net		40			34			39
Depreciation, depletion, amortization and accretion		1,097			1,156			469
Depreciation and interest expense related to equity method investments		21			30			23
(Gain) loss on extinguishment of debt		—			—			(2	)
Non-cash equity-based compensation expense		23			24			21
Capitalized equity-based compensation expense		(5	)		(8	)		(7	)
Merger and integration expenses		37			30			12
Other non-cash transactions		(19	)		2			2
Provision for (benefit from) income taxes		403			115			223
Consolidated Adjusted EBITDA		2,947			2,622			1,633
Less: Adjustment for non-controlling interest		146			118			86
Adjusted EBITDA attributable to Diamondback Energy, Inc.	$	2,801		$	2,504		$	1,547

ADJUSTED NET INCOME

Adjusted net income is a non-GAAP financial measure equal to net income (loss) attributable to Diamondback Energy, Inc. plus net income (loss) attributable to non-controlling interest (“net income (loss)”) adjusted for non-cash (gain) loss on derivative instruments, net, (gain) loss on extinguishment of debt, if any, merger and integration expense, other non-cash transactions and related income tax adjustments, if any. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors. Further, in order to allow investors to compare the Company’s performance across periods, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods.

The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP measure of adjusted net income:

Diamondback Energy, Inc.
Adjusted Net Income
(unaudited, $ in millions except per share data, shares in thousands)

	Three Months Ended March 31, 2025
	Amounts			Amounts Per Diluted Share
Net income (loss) attributable to Diamondback Energy, Inc.⁽¹⁾	$	1,405		$	4.83
Net income (loss) attributable to non-controlling interest		86			0.30
Net income (loss)⁽¹⁾		1,491			5.13
Non-cash (gain) loss on derivative instruments, net		(141	)		(0.49	)
Merger and integration expense		37			0.13
Other non-cash transactions		(19	)		(0.07	)
Adjusted net income excluding above items⁽¹⁾		1,368			4.70
Income tax adjustment for above items		26			0.09
Adjusted net income⁽¹⁾		1,394			4.79
Less: Adjusted net income attributable to non-controlling interest		74			0.25
Adjusted net income attributable to Diamondback Energy, Inc.⁽¹⁾	$	1,320		$	4.54

Weighted average common shares outstanding:
Basic					289,612
Diluted					289,612

(1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of common stock and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to Diamondback Energy, Inc, (ii) less the reallocation of $6 million in earnings attributable to participating securities, (iii) divided by diluted weighted average common shares outstanding for the respective periods.

OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES AND FREE CASH FLOW

Operating cash flow before working capital changes, which is a non-GAAP financial measure, represents net cash provided by operating activities as determined under GAAP without regard to changes in operating assets and liabilities. The Company believes operating cash flow before working capital changes is a useful measure of an oil and natural gas company’s ability to generate cash used to fund exploration, development and acquisition activities and service debt or pay dividends. The Company also uses this measure because changes in operating assets and liabilities relate to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. This allows the Company to compare its operating performance with that of other companies without regard to financing methods and capital structure.

Free Cash Flow, which is a non-GAAP financial measure, is cash flow from operating activities before changes in working capital in excess of cash capital expenditures. The Company believes that Free Cash Flow is useful to investors as it provides measures to compare both cash flow from operating activities and additions to oil and natural gas properties across periods on a consistent basis as adjusted for non-recurring tax impacts from divestitures, merger and integration expenses, the early termination of derivative contracts and settlements of treasury locks. These measures should not be considered as an alternative to, or more meaningful than, net cash provided by operating activities as an indicator of operating performance. The Company’s computation of Free Cash Flow may not be comparable to other similarly titled measures of other companies. The Company uses Free Cash Flow to reduce debt, as well as return capital to stockholders as determined by the Board of Directors.

The following tables present a reconciliation of the GAAP financial measure of net cash provided by operating activities to the non-GAAP measure of operating cash flow before working capital changes and to the non-GAAP measure of Free Cash Flow:

Diamondback Energy, Inc.
Operating Cash Flow Before Working Capital Changes and Free Cash Flow
(unaudited, in millions)

	Three Months Ended
	March 31, 2025			December 31, 2024
Net cash provided by operating activities	$	2,355		$	2,341
Less: Changes in cash due to changes in operating assets and liabilities:
Accounts receivable		(6	)		(103	)
Income tax receivable		3			(3	)
Prepaid expenses and other current assets		6			(24	)
Accounts payable and accrued liabilities		(374	)		114
Income taxes payable		135			138
Revenues and royalties payable		84			59
Other		20			(100	)
Total working capital changes		(132	)		81
Operating cash flow before working capital changes		2,487			2,260
Additions to oil and natural gas properties		(942	)		(933	)
Total Cash CAPEX		(942	)		(933	)
Free Cash Flow		1,545			1,327
Merger and integration expenses		37			30
Treasury locks		1			—
Adjusted Free Cash Flow	$	1,583		$	1,357

NET DEBT

The Company defines the non-GAAP measure of net debt as total debt (excluding debt issuance costs, discounts, premiums and unamortized basis adjustments) less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company’s leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt.

Diamondback Energy, Inc.
Net Debt
(unaudited, in millions)

	March 31, 2025			Net Q1 Principal Borrowings/(Repayments)			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(in millions)
Diamondback Energy, Inc.⁽¹⁾	$	13,269		$	1,200		$	12,069		$	12,284		$	11,169		$	5,669
Viper Energy, Inc.⁽¹⁾		830			(261	)		1,091			830			1,007			1,103
Total debt		14,099		$	939			13,160			13,114			12,176			6,772
Cash and cash equivalents		(1,816	)					(161	)		(370	)		(6,908	)		(896	)
Net debt	$	12,283					$	12,999		$	12,744		$	5,268		$	5,876

(1)	Excludes debt issuance costs, discounts, premiums and unamortized basis adjustments.

DERIVATIVES

As of May 2, 2025, the Company had the following outstanding consolidated derivative contracts, including derivative contracts at Viper Energy, Inc. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent pricing and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. When aggregating multiple contracts, the weighted average contract price is disclosed.

	Crude Oil (Bbls/day, $/Bbl)
	Q2 2025		Q3 2025		Q4 2025		Q1 2026
Long Puts – Crude Brent Oil		50,000		36,000		21,000		4,000
Long Put Price ($/Bbl)		$58.30		$56.39		$55.00		$55.00
Deferred Premium ($/Bbl)		$-1.50		$-1.50		$-1.47		$-1.45
Long Puts – WTI (Magellan East Houston)		96,000		102,000		65,000		15,000
Long Put Price ($/Bbl)		$55.10		$54.75		$54.62		$55.00
Deferred Premium ($/Bbl)		$-1.59		$-1.61		$-1.63		$-1.66
Long Puts – WTI (Cushing)		152,000		146,000		86,000		25,000
Long Put Price ($/Bbl)		$55.53		$54.40		$53.98		$55.00
Deferred Premium ($/Bbl)		$-1.59		$-1.55		$-1.55		$-1.32
Basis Swaps – WTI (Midland)		71,000		76,000		76,000		—
Basis Swaps – WTI (Midland)		$1.05		$1.05		$1.05		—
Roll Swaps – WTI		25,000		25,000		25,000		—
Roll Swaps – WTI		$0.93		$0.93		$0.93		—

	Natural Gas (Mmbtu/day, $/Mmbtu)
	Q2 2025		Q3 2025		Q4 2025		FY 2026		FY 2027
Costless Collars – Henry Hub		690,000		690,000		690,000		620,000		40,000
Floor Price ($/Mmbtu)		$2.49		$2.49		$2.49		$2.77		$3.00
Ceiling Price ($/Mmbtu)		$5.28		$5.28		$5.28		$6.33		$6.65
Natural Gas Basis Swaps – Waha Hub		610,000		610,000		610,000		460,000		240,000
Natural Gas Basis Swaps – Waha Hub		$-0.88		$-0.88		$-0.88		$-1.62		$-1.48
Natural Gas Basis Swaps – Houston Ship Channel		13,407		20,000		20,000		40,000		—
Natural Gas Basis Swaps – Houston Ship Channel		$-0.49		$-0.49		$-0.49		$-0.37		—

Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com

MIL-OSI: Gibson Energy Reports 2025 First Quarter Results Driven by Record Infrastructure EBITDA and All-Time High Volumes at Gateway and Edmonton

Source: GlobeNewswire (MIL-OSI)

^{All financial figures are in Canadian dollars unless otherwise noted}

CALGARY, Alberta, May 05, 2025 (GLOBE NEWSWIRE) — Gibson Energy Inc. (TSX:GEI) (“Gibson” or the “Company”) announced today its financial and operating results for the three months ended March 31, 2025.

Key Highlights:

All-time high volumes at both the Gateway and Edmonton terminals drove record Infrastructure Adjusted EBITDA⁽¹⁾ of $155 million
Realized recurring and non-recurring cost savings of approximately $6 million, increasing DCF per share in the first quarter by 7%, with line of sight to $18 million of total savings, relative to our target of over $25 million
Secured a strategic long-term partnership with Baytex Energy Corp. (“Baytex”)
Appointed Riley Hicks as Senior Vice President and Chief Financial Officer effective February 4, 2025, and Dave Gosse as Senior Vice President and Chief Operating Officer to become effective May 20, 2025
Subsequent to the quarter, completed the Gateway dredging project safely, on time and on budget

“We are off to a solid start to 2025, delivering record quarterly Infrastructure EBITDA,” said Curtis Philippon, President & Chief Executive Officer. “Our cost focus efforts continue to deliver results, and we are seeing great progress on our key capital projects at Gateway. With a revitalized leadership team in place and disciplined execution underway, we are well positioned to deliver a strong finish to the year.”

Financial Highlights:

Revenue of $2,748 million decreased by $541 million in the first quarter, compared to $3,289 million in the first quarter of 2024, primarily due to the impact of reduced sales volumes and lower commodity prices within the Marketing segment
Infrastructure Adjusted EBITDA⁽¹⁾ of $155 million in the first quarter, a $4 million or 2% increase from the first quarter of 2024, primarily due to increased throughput at the Edmonton Terminal and Gateway, and lower operating and other costs, partially offset by lower volume at the Hardisty Terminal, and the disposal of non-core assets in the prior period
Marketing Adjusted EBITDA⁽¹⁾ of $0 in the first quarter, a $33 million decrease from the first quarter of 2024, primarily due to the Crude Marketing business’ lower contribution as continued increased demand for Canadian heavy oil has maintained steep backwardation and limited volatility, impacting storage, quality and time-based opportunities. For the Refined Products business, slightly stronger crack spreads during the quarter were offset by higher feedstock costs driven by continued strength in the WCS differential, as well as the impact of seasonal reduction in demand for asphalt products
Adjusted EBITDA⁽¹⁾ on a consolidated basis of $142 million in the first quarter, a $28 million or 16% decrease from the first quarter of 2024, primarily due to lower contributions from the Marketing segment and the other factors impacting segment EBITDA noted above, as well as the impact of unrealized gains and losses on derivative financial instruments recorded in both periods
Net income of $50 million in the first quarter, a $9 million or 23% increase from the first quarter of 2024, primarily due to the impact of items affecting segment EBITDA noted above as well as lower general and administrative costs primarily due to executive transition and restructuring costs in the prior period, partially offset by higher corporate foreign exchange losses
Distributable Cash Flow⁽¹⁾ of $91 million in the first quarter, a $24 million or 21% decrease from the first quarter of 2024, primarily due to lower Adjusted EBITDA from the Marketing segment, partially offset by increased Infrastructure Adjusted EBITDA
Dividend Payout ratio⁽²⁾ on a trailing twelve-month basis of 77%, which is within the 70% – 80% target range
Net debt to Adjusted EBITDA⁽²⁾ ratio of 3.7x at March 31, 2025, compared to 3.5x at March 31, 2024, primarily due to lower contributions from the Company’s Marketing segment and higher interest expenses compared to the same period last year

Strategic Developments:

Appointed Riley Hicks as Senior Vice President and Chief Financial Officer, effective February 4, 2025; Riley joined Gibson in 2018 and has held various finance and commercial roles, including most recently Senior Vice President Corporate Development, Marketing and Strategy
Entered into a long-term strategic partnership with Baytex; under the initial 10-year take-or-pay and area dedication agreement, Gibson will invest approximately $50 million in new liquids infrastructure and Baytex will direct production to Gibson’s core Edmonton terminal, enhancing the Company’s quality of cash flows
Surpassed a major safety milestone, with over 9 million hours worked without a lost time injury
Subsequent to the quarter, Dave Gosse was appointed as Senior Vice President and Chief Operating Officer, to become effective May 20, 2025; with more than 30 years of operational and engineering leadership, in roles including President of Energy Transfer Canada, Dave adds strong expertise to Gibson’s executive team
Subsequent to the quarter, successfully completed the dredging project at Gateway safely, on time and on budget, making Gateway one of only two terminals in Texas capable of loading up to 1.6 million barrels on a Very Large Crude Carrier and up to full capacity on a Suezmax vessel

(1) Adjusted EBITDA and distributable cash flow are non-GAAP financial measures. See the “Specified Financial Measures” section of this release.
(2) Net debt to adjusted EBITDA ratio and dividend payout ratio are non-GAAP financial ratios. See the “Specified Financial Measures” section of this release.

Management’s Discussion and Analysis and Financial Statements
The 2025 first quarter Management’s Discussion and Analysis and unaudited Condensed Consolidated Financial Statements provide a detailed explanation of Gibson’s financial and operating results for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. These documents are available at www.gibsonenergy.com and on SEDAR+ at www.sedarplus.ca.

Earnings Conference Call & Webcast Details
A conference call and webcast will be held to discuss the 2025 first quarter financial and operating results at 7:00am Mountain Time (9:00am Eastern Time) on Tuesday, May 6, 2025.

To register for the call, view dial-in numbers, and obtain a dial-in PIN, please access the following URL:

Registration at least five minutes prior to the conference call is recommended.

This call will also be broadcast live on the Internet and may be accessed directly at the following URL:

The webcast will remain accessible for a 12-month period at the above URL.

Supplementary Information

Gibson has also made available certain supplementary information regarding the 2025 first quarter financial and operating results, available at www.gibsonenergy.com.

About Gibson
Gibson is a leading liquids infrastructure company with its principal businesses consisting of storage, optimization, processing, and gathering of liquids and refined products, as well as waterborne vessel loading. Headquartered in Calgary, Alberta, the Company’s operations are located across North America, with core terminal assets in Hardisty and Edmonton, Alberta, Ingleside and Wink, Texas, and a facility in Moose Jaw, Saskatchewan.

Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information and statements (collectively, forward-looking statements). All statements other than statements of historical fact are forward-looking statements. The use of any of the words ‘‘anticipate’’, ‘‘plan’’, ‘‘contemplate’’, ‘‘continue’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘propose’’, ‘‘might’’, ‘‘may’’, ‘‘will’’, ‘‘shall’’, ‘‘project’’, ‘‘should’’, ‘‘could’’, ‘‘would’’, ‘‘believe’’, ‘‘predict’’, ‘‘forecast’’, ‘‘pursue’’, ‘‘potential’’ and ‘‘capable’’ and similar expressions are intended to identify forward looking statements. The forward-looking statements reflect Gibson’s beliefs and assumptions with respect to, among other things, future cost savings to be realized by the Company, the future effective date of appointment of the Company’s new Senior Vice President and Chief Operating Officer, results through the remainder of the current fiscal year, and the capital expenditure in relation to the project with Baytex, and Gibson’s ability to achieve the anticipated benefits of such project, including the enhancement of the quality of the Company’s cash flows. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. The Company does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in the Company’s Annual Information Form dated February 18, 2025, and Management’s Discussion and Analysis dated May 5, 2025, as filed on SEDAR+ and available on the Gibson website at www.gibsonenergy.com.

For further information, please contact:

Investor Relations
(403) 776-3077
investor.relations@gibsonenergy.com

Media Relations
(403) 476-6334
communications@gibsonenergy.com

Specified Financial Measures
This press release refers to certain financial measures that are not determined in accordance with GAAP, including non-GAAP financial measures and non-GAAP financial ratios. Readers are cautioned that non-GAAP financial measures and non-GAAP financial ratios do not have standardized meanings prescribed by GAAP and, therefore, may not be comparable to similar measures presented by other entities. Management considers these to be important supplemental measures of the Company’s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.

For further details on these specified financial measures, including relevant reconciliations, see the “Specified Financial Measures” section of the Company’s MD&A for the three months ended March 31, 2025 and 2024, which is incorporated by reference herein and is available on Gibson’s SEDAR+ profile at www.sedarplus.ca and Gibson’s website at www.gibsonenergy.com.

a) Adjusted EBITDA

Noted below is the reconciliation to the most directly comparable GAAP measures of the Company’s segmented and consolidated adjusted EBITDA for the three months ended March 31, 2025, and 2024:

Three months ended March 31,	Infrastructure			Marketing			Corporate and Adjustments				Total
($ thousands)	2025		2024	2025		2024	2025		2024		2025		2024

Segment profit	154,079		145,663	13,860		19,381	—		—		167,939		165,044
Unrealized (gain) loss on financial instruments	(455	)	4,149	(13,746	)	14,217	—		—		(14,201	)	18,366
General and administrative	—		—	—		—	(14,323	)	(21,920	)	(14,323	)	(21,920	)
Adjustments to share of profit from equity accounted investees	1,173		1,481	—		—	—		—		1,173		1,481
Executive transition and restructuring costs	—		—	—		—	2,405		7,135		2,405		7,135
Renewable power purchase agreement	—		—	—		—	(806	)	—		(806	)	—
Adjusted EBITDA	154,797		151,293	114		33,598	(12,724	)	(14,785	)	142,187		170,106

	Three months ended March 31,
($ thousands)	2025		2024

Net Income	49,953		40,489

Income tax expense	14,044		12,455
Depreciation, amortization, and impairment charges	42,532		43,431
Finance costs, net	33,658		35,403
Unrealized (gain) loss on derivative financial instruments	(14,201	)	18,366
Unrealized loss on renewable power purchase agreement	6,787		9,476
Share-based compensation	3,128		5,064
Acquisition and integration costs	—		1,305
Adjustments to share of profit from equity accounted investees	1,173		1,481
Corporate foreign exchange loss (gain) and other	2,708		(4,499	)
Executive transition and restructuring costs	2,405		7,135
Adjusted EBITDA	142,187		170,106

b) Distributable Cash Flow

The following is a reconciliation of distributable cash flow from operations to its most directly comparable GAAP measure, cash flow from operating activities:

	Three months ended March 31,
($ thousands)	2025		2024

Cash flow from operating activities	121,852		192,833
Adjustments:
Changes in non-cash working capital and taxes paid	15,417		(26,078	)
Replacement capital	(5,808	)	(4,372	)
Cash interest expense, including capitalized interest	(31,549	)	(33,878	)
Acquisition and integration costs⁽¹⁾	—		1,305
Executive transition and restructuring costs⁽¹⁾	2,405		—
Lease payments	(6,317	)	(8,034	)
Current income tax	(5,226	)	(7,312	)
Distributable cash flow	90,774		114,464

c) Dividend Payout Ratio

	Twelve months ended March 31,
	2025		2024
Distributable cash flow	351,583		392,853
Dividends declared	270,630		247,946
Dividend payout ratio	77	%	63	%

d) Net Debt To Adjusted EBITDA Ratio

	Twelve months ended March 31,
	2025		2024

Current and long-term debt	2,619,116		2,643,464
Lease liabilities	47,752		58,480
Less: unsecured hybrid debt	(450,000	)	(450,000	)
Less: cash and cash equivalents	(46,090	)	(108,858	)

Net debt	2,170,778		2,143,086
Adjusted EBITDA	582,223		605,095
Net debt to adjusted EBITDA ratio	3.7		3.5