Category: Taxation

MIL-OSI: Viper Energy, Inc., a Subsidiary of Diamondback Energy, Inc., Reports First Quarter 2025 Financial and Operating Results

Source: GlobeNewswire (MIL-OSI)

MIDLAND, Texas, May 05, 2025 (GLOBE NEWSWIRE) — Viper Energy, Inc., (NASDAQ:VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), today announced financial and operating results for the first quarter ended March 31, 2025.

FIRST QUARTER HIGHLIGHTS

As previously announced, Q1 2025 average production of 31,311 bo/d (57,378 boe/d)
Q1 2025 consolidated net income (including non-controlling interest) of $153 million; net income attributable to Viper of $75 million, or $0.62 per Class A common share
Q1 2025 cash available for distribution to Viper’s Class A common shares (as defined and reconciled below) of $100 million, or $0.76 per Class A common share
Declared Q1 2025 base cash dividend of $0.30 per Class A common share; implies a 2.9% annualized yield based on the May 2, 2025, Class A common share closing price of $42.08
Declared Q1 2025 variable cash dividend of $0.27 per Class A common share; total base-plus-variable dividend of $0.57 per Class A common share implies a 5.4% annualized yield based on the May 2, 2025, Class A common share closing price of $42.08
Total Q1 2025 return of capital to Class A shareholders of $75 million, or $0.57 per Class A common share, represents 75% of cash available for distribution
442 total gross (8.0 net 100% royalty interest) horizontal wells turned to production on Viper’s acreage during Q1 2025 with an average lateral length of 11,946 feet

RECENT EVENTS AND FORWARD OUTLOOK

As previously announced, on May 1, 2025, closed the Drop Down transaction, whereby Viper Energy Partners LLC (“OpCo”), the Company’s operating subsidiary, acquired all of the equity interests of certain mineral and royalty subsidiaries of Diamondback for consideration of $1.0 billion of cash and 69.6 million limited liability company units of OpCo and an equivalent number of shares of the Company’s Class B common stock (the “Drop Down”)
Following the close of the Drop Down, Viper’s long-term issuer default rating was upgraded to BBB- by Fitch; represents second investment grade rating for Viper
As of May 2, 2025, during the second quarter of 2025, repurchased 239,374 shares of the Company’s Class A common stock for an aggregate purchase price of approximately $9 million, excluding excise tax (average price of $37.85 per Class A common share)
As of May 2, 2025, during the second quarter of 2025, repurchased approximately $36 million in aggregate principal amount of the Company’s 5.375% Senior Notes due 2027 (“2027 Notes”)
Initiating average daily production guidance for Q2 2025 of 40,000 to 43,000 bo/d (72,500 to 78,000 boe/d)
Maintaining average daily production for the balance of 2025, following the closing of the Drop Down, of 47,000 to 49,000 bo/d (85,000 to 88,000 boe/d), resulting in expected full year 2025 average daily production of 41,000 to 43,500 bo/d (74,500 to 79,000 boe/d)

“As previously announced, we are excited the transformative Drop Down transaction between Viper and Diamondback has closed. As a result of the conservative financing of this transaction, as well as Viper’s continued strong financial and operating results, we expect leverage to remain below 1.0x even in a sustained $50 per barrel WTI environment. Given the strength of our balance sheet, we will look to use this period of volatility to our advantage where we can, as highlighted by the opportunistic share repurchases we have been able to make so far this quarter,” stated Kaes Van’t Hof, Chief Executive Officer of Viper.

Mr. Van’t Hof continued, “Despite the potential for sustained weakness in commodity prices and reduced activity levels, we expect Viper’s production to remain durable and are maintaining our previous guidance for oil production for the balance of 2025, although we continue to monitor operator activity levels. The symbiotic relationship between Diamondback and Viper is highlighted during times like these where Diamondback continues to focus its development on wells where Viper owns high royalty interests, and therefore enhances Diamondback’s consolidated capital efficiency. Further, the roughly 45% of Viper’s current production that is operated by third parties is predominately exposed to well-capitalized operators in the best parts of the Permian Basin, led by Exxon operating almost half of our third party production.”

FINANCIAL UPDATE

As previously announced, Viper’s first quarter 2025 average unhedged realized prices were $71.33 per barrel of oil, $2.08 per Mcf of natural gas and $24.52 per barrel of natural gas liquids, resulting in a total equivalent realized price of $47.25/boe.

As previously announced, Viper’s first quarter 2025 average hedged realized prices were $70.26 per barrel of oil, $3.74 per Mcf of natural gas and $24.52 per barrel of natural gas liquids, resulting in a total equivalent realized price of $48.99/boe.

During the first quarter of 2025, the Company recorded total operating income of $245 million and consolidated net income (including non-controlling interest) of $153 million.

As of March 31, 2025, the Company had a cash balance of $560 million and total long-term debt outstanding (excluding debt issuance costs, discounts and premiums) of $830 million, resulting in net debt (as defined and reconciled below) of $270 million. Viper’s outstanding long-term debt as of March 31, 2025 consisted of $430 million in aggregate principal amount of its 2027 Notes, $400 million in aggregate principal amount of its 7.375% Senior Notes due 2031 and no borrowings on its revolving credit facility, leaving $1.3 billion available for future borrowings and $1.9 billion of total liquidity.

As of May 1, 2025, after giving effect to the closing of the Drop Down, Viper had roughly $255 million in borrowings on its revolving credit facility, leaving approximately $995 million available for future borrowings and a similar amount of total liquidity.

As of May 2, 2025, during the second quarter of 2025, Viper had repurchased approximately $36 million in aggregate principal amount of the Company’s 2027 Notes.

FIRST QUARTER 2025 CASH DIVIDEND & CAPITAL RETURN PROGRAM

Viper announced today that the Company’s Board of Directors (the “Board”) declared a base cash dividend of $0.30 per Class A common share for the first quarter of 2025, payable on May 22, 2025 to Class A common shareholders of record at the close of business on May 15, 2025.

The Board also declared a variable cash dividend of $0.27 per Class A common share for the first quarter of 2025, payable on May 22, 2025 to Class A common shareholders of record at the close of business on May 15, 2025.

As of May 2, 2025, during the second quarter of 2025, Viper repurchased 239,374 shares of Class A common stock for an aggregate purchase price of approximately $9 million, excluding excise tax (average price of $37.85 per Class A common share). In total, since the initiation of Viper’s common stock repurchase program on November 9, 2020 through May 2, 2025, the Company has repurchased 13,683,957 shares of Class A common stock for an aggregate purchase price of approximately $325 million, reflecting an average price of $23.74 per Class A common share. Future base and variable cash dividends and stock repurchases are at the discretion of the Board and are subject to a number of factors discussed in Viper’s reports filed with the Securities and Exchange Commission.

OPERATIONS UPDATE

During the first quarter of 2025, Viper estimates that 442 gross (8.0 net 100% royalty interest) horizontal wells with an average royalty interest of 1.8% were turned to production on its acreage position with an average lateral length of 11,946 feet. Of these 442 gross wells, Diamondback is the operator of 108 gross wells, with an average royalty interest of 4.0%, and the remaining 334 gross wells, with an average royalty interest of 1.1%, are operated by third parties.

As of March 31, 2025, Viper’s footprint of mineral and royalty interests was 37,573 net royalty acres on a historical basis and 60,725 net royalty acres on a pro forma basis, after giving effect to the Drop Down.

Our gross well information as of May 1, 2025 is as follows, after giving effect to the Drop Down:

	Diamondback Operated	Third-Party Operated	Total
Q1 2025 Horizontal wells turned to production⁽¹⁾⁽²⁾:
Gross wells	108	334	442
Net 100% royalty interest wells	4.3	3.7	8.0
Average percent net royalty interest	4.0%	1.1%	1.8%

Horizontal producing well count:
Gross wells	3,725	11,546	15,271
Net 100% royalty interest wells	235.0	165.0	400.0
Average percent net royalty interest	6.3%	1.4%	2.6%

Horizontal active development well count:
Gross wells	239	682	921
Net 100% royalty interest wells	13.0	10.4	23.4
Average percent net royalty interest	5.4%	1.5%	2.5%

Line of sight wells:
Gross wells	417	677	1,094
Net 100% royalty interest wells	27.1	8.9	36.0
Average percent net royalty interest	6.5%	1.3%	3.3%

(1) Represents wells turned to production on Viper’s standalone acreage position; does not give effect to the Drop Down.
(2) Average lateral length of 11,946 feet.

The 921 gross wells currently in the process of active development are those wells that have been spud and are expected to be turned to production within approximately the next six to eight months. Further in regard to the active development on Viper’s asset base, after giving effect to the Drop Down, there are currently 63 gross rigs operating on Viper’s acreage, 16 of which are operated by Diamondback. The 1,094 line-of-sight wells are those that are not currently in the process of active development, but for which Viper has reason to believe that they will be turned to production within approximately the next 15 to 18 months. The expected timing of these line-of-sight wells is based primarily on permitting by third-party operators or Diamondback’s current expected completion schedule. Existing permits or active development of Viper’s royalty acreage does not ensure that those wells will be turned to production.

GUIDANCE UPDATE

Below is Viper’s guidance for the full year 2025, as well as average production guidance for Q2 2025, which gives effect to the Drop Down. Given recent market volatility, Diamondback and our other operators are closely monitoring the macro environment and may review their operating plans for the remainder of 2025, and thus our production guidance could be subject to change.


	Viper Energy, Inc.

Q2 2025 Net Production – Mbo/d	40.0 – 43.0
Q2 2025 Net Production – Mboe/d	72.5 – 78.0
Full Year 2025 Net Production – Mbo/d	41.0 – 43.5
Full Year 2025 Net Production – Mboe/d	74.5 – 79.0

Unit costs ($/boe)
Depletion	$15.50 – $16.50
Cash G&A	$0.80 – $1.00
Non-Cash Share-Based Compensation	$0.10 – $0.20
Net Interest Expense	$2.00 – $2.50

Production and Ad Valorem Taxes (% of Revenue)	~7%
Cash Tax Rate (% of Pre-Tax Income Attributable to the Company)⁽¹⁾	21% – 23%
Q2 2025 Cash Taxes ($ – million)⁽²⁾	$10 – $15

(1) Pre-tax income attributable to the Company is reconciled below.
(2) Attributable to the Company.

CONFERENCE CALL

Viper 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 10:00 a.m. CT. Access to the live audio-only 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 Viper’s website at www.viperenergy.com under the “Investor Relations” section of the site.

About Viper Energy, Inc.

Viper is a corporation formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin in West Texas. For more information, please visit www.viperenergy.com.

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 of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Viper’s: future performance; business strategy; future operations; estimates and projections of operating income, losses, costs and expenses, returns, cash flow, and financial position; production levels on properties in which Viper has mineral and royalty interests, developmental activity by other operators; reserve estimates and Viper’s ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the Drop Down and any other acquisitions or divestitures); and plans and objectives (including Diamondback’s plans for developing Viper’s acreage and Viper’s cash dividend policy and common stock repurchase program) 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 Viper are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Viper 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 its control. Accordingly, forward-looking statements are not guarantees of Viper’s future performance and the actual outcomes could differ materially from what Viper 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 sector; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production on Viper’s mineral and royalty acreage, or governmental orders, rules or regulations that impose production limits on such acreage; 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 and the risks and other factors disclosed in Viper’s filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the Securities and Exchange Commission’s web site at http://www.sec.gov.

In light of these factors, the events anticipated by Viper’s forward-looking statements may not occur at the time anticipated or at all. Moreover, new risks emerge from time to time. Viper 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 made in this news release. All forward-looking statements speak only as of the date of this news release or, if earlier, as of the date they were made. Viper does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

Viper Energy, Inc.
Condensed Consolidated Balance Sheets
(unaudited, in millions, except par values and share data)

	March 31,			December 31,
		2025			2024
Assets
Current assets:
Cash and cash equivalents	$	560		$	27
Royalty income receivable (net of allowance for credit losses)		146			149
Royalty income receivable—related party		41			31
Income tax receivable		2			2
Derivative instruments		31			18
Prepaid expenses and other current assets		12			11
Total current assets		792			238
Property:
Oil and natural gas interests, full cost method of accounting ($2,279 and $2,180 excluded from depletion at March 31, 2025 and December 31, 2024, respectively)		6,097			5,713
Land		6			6
Accumulated depletion and impairment		(1,148	)		(1,081	)
Property, net		4,955			4,638
Derivative instruments		12			—
Deferred income taxes (net of allowances)		249			185
Funds held in escrow		223			1
Other assets		7			7
Total assets	$	6,238		$	5,069
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable—related party	$	2		$	2
Accrued liabilities		66			43
Derivative instruments		5			2
Income taxes payable		18			2
Total current liabilities		91			49
Long-term debt, net		822			1,083
Derivative instruments		2			—
Other long-term liabilities		—			30
Total liabilities		915			1,162
Stockholders’ equity:
Class A Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 131,323,078 shares issued and outstanding as of March 31, 2025 and 102,977,142 shares issued and outstanding as of December 31, 2024		—			—
Class B Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 87,831,750 shares issued and outstanding as of March 31, 2025 and 85,431,453 shares issued and outstanding as of December 31, 2024		—			—
Additional paid-in capital		2,566			1,569
Retained earnings (accumulated deficit)		108			118
Total Viper Energy, Inc. stockholders’ equity		2,674			1,687
Non-controlling interest		2,649			2,220
Total equity		5,323			3,907
Total liabilities and stockholders’ equity	$	6,238		$	5,069

Viper Energy, Inc.
Condensed Consolidated Statements of Operations
(unaudited, in millions, except per share amounts, shares in thousands)

	Three Months Ended March 31,
		2025			2024
Operating income:
Oil income	$	201		$	177
Natural gas income		15			7
Natural gas liquids income		28			21
Royalty income		244			205
Lease bonus income		1			—
Total operating income		245			205
Costs and expenses:
Production and ad valorem taxes		17			14
Depletion		67			47
General and administrative expenses—related party		4			2
General and administrative expenses		2			3
Total costs and expenses		90			66
Income (loss) from operations		155			139
Other income (expense):
Interest expense, net		(13	)		(20	)
Gain (loss) on derivative instruments, net		32			(7	)
Total other income (expense), net		19			(27	)
Income (loss) before income taxes		174			112
Provision for (benefit from) income taxes		21			13
Net income (loss)		153			99
Net income (loss) attributable to non-controlling interest		78			56
Net income (loss) attributable to Viper Energy, Inc.	$	75		$	43

Net income (loss) attributable to common shares:
Basic	$	0.62		$	0.49
Diluted	$	0.62		$	0.49
Weighted average number of common shares outstanding:
Basic		120,926			87,537
Diluted		121,030			87,629

Viper 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)	$	153		$	99
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for (benefit from) deferred income taxes		(1	)		(1	)
Depletion		67			47
(Gain) loss on derivative instruments, net		(32	)		7
Net cash receipts (payments) on derivatives		9			(3	)
Other		1			2
Changes in operating assets and liabilities:
Royalty income receivable		3			(23	)
Royalty income receivable—related party		(10	)		(30	)
Accounts payable and accrued liabilities		(4	)		5
Accounts payable—related party		—			(1	)
Income taxes payable		15			12
Other		—			1
Net cash provided by (used in) operating activities		201			115
Cash flows from investing activities:
Acquisitions of oil and natural gas interests		(486	)		(21	)
Proceeds from sale of oil and natural gas interests		—			1
Net cash provided by (used in) investing activities		(486	)		(20	)
Cash flows from financing activities:
Proceeds from borrowings under credit facility		295			90
Repayment on credit facility		(556	)		(80	)
Net proceeds from public offering		1,232			—
Dividends to stockholders		(85	)		(44	)
Dividends to Diamondback		(59	)		(67	)
Dividends to other non-controlling interest		(9	)		—
Net cash provided by (used in) financing activities		818			(101	)
Net increase (decrease) in cash and cash equivalents		533			(6	)
Cash, cash equivalents and restricted cash at beginning of period		27			26
Cash, cash equivalents and restricted cash at end of period	$	560		$	20

Viper Energy, Inc.
Selected Operating Data
(unaudited)

	Three Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024
Production Data:
Oil (MBbls)		2,818		2,747		2,312
Natural gas (MMcf)		7,221		7,236		5,589
Natural gas liquids (MBbls)		1,142		1,209		954
Combined volumes (Mboe)⁽¹⁾		5,164		5,162		4,198

Average daily oil volumes (bo/d)		31,311		29,859		25,407
Average daily combined volumes (boe/d)		57,378		56,109		46,132

Average sales prices:
Oil ($/Bbl)	$	71.33	$	69.91	$	76.61
Natural gas ($/Mcf)	$	2.08	$	0.84	$	1.22
Natural gas liquids ($/Bbl)	$	24.52	$	22.15	$	22.17
Combined ($/boe)⁽²⁾	$	47.25	$	43.56	$	48.85

Oil, hedged ($/Bbl)⁽³⁾	$	70.26	$	69.00	$	75.64
Natural gas, hedged ($/Mcf)⁽³⁾	$	3.74	$	1.05	$	1.12
Natural gas liquids ($/Bbl)⁽³⁾	$	24.52	$	22.15	$	22.17
Combined price, hedged ($/boe)⁽³⁾	$	48.99	$	43.38	$	48.19

Average Costs ($/boe):
Production and ad valorem taxes	$	3.29	$	3.13	$	3.43
General and administrative – cash component		0.97		0.72		1.08
Total operating expense – cash	$	4.26	$	3.85	$	4.51

General and administrative – non-cash stock compensation expense	$	0.19	$	0.16	$	0.12
Interest expense, net	$	2.52	$	3.70	$	4.67
Depletion	$	12.97	$	12.51	$	11.18

(1) Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
(2) Realized price net of all deducts for gathering, transportation and processing.
(3) Hedged prices reflect the impact of cash settlements of our matured commodity derivative transactions on our average sales prices.

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA is a supplemental non-GAAP (as defined below) financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Viper defines Adjusted EBITDA as net income (loss) attributable to the Company, plus net income (loss) attributable to non-controlling interest (“net income (loss)”) before interest expense, net, non-cash share-based compensation expense, depletion, non-cash (gain) loss on derivative instruments, (gain) loss on extinguishment of debt, if any, other non-cash operating expenses, if any, other non-recurring expenses, if any, and provision for (benefit from) income taxes. 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 it allows them to more effectively evaluate Viper’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income, royalty income, cash flow from operating activities or any other measure of financial performance or liquidity presented as determined in accordance with GAAP. 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, none of which are components of Adjusted EBITDA.

Viper defines cash available for distribution to the Company’s shareholders generally as an amount equal to its Adjusted EBITDA for the applicable quarter less cash needed for income taxes payable for the current period, debt service, contractual obligations, fixed charges and reserves for future operating or capital needs that the Board may deem appropriate, lease bonus income, net of tax, distribution equivalent rights payments, preferred dividends, and an adjustment for changes in ownership interests that occurred subsequent to the quarter, if any. Management believes cash available for distribution is useful because it allows them to more effectively evaluate Viper’s operating performance excluding the impact of non-cash financial items and short-term changes in working capital. Viper’s computations of Adjusted EBITDA and cash available for distribution may not be comparable to other similarly titled measures of other companies or to such measure in its credit facility or any of its other contracts. Viper further defines cash available for variable dividends as at least 75 percent of cash available for distribution less base dividends declared and repurchased shares as part of its share buyback program for the applicable quarter.

The following tables present a reconciliation of the GAAP financial measure of net income (loss) to the non-GAAP financial measures of Adjusted EBITDA, cash available for distribution and cash available for variable dividends:

Viper Energy, Inc.
(unaudited, in millions, except per share data)

	Three Months Ended March 31, 2025
Net income (loss) attributable to Viper Energy, Inc.	$	75
Net income (loss) attributable to non-controlling interest		78
Net income (loss)		153
Interest expense, net		13
Non-cash share-based compensation expense		1
Depletion		67
Non-cash (gain) loss on derivative instruments		(23	)
Provision for (benefit from) income taxes		21
Consolidated Adjusted EBITDA		232
Less: Adjusted EBITDA attributable to non-controlling interest		99
Adjusted EBITDA attributable to Viper Energy, Inc.	$	133

Adjustments to reconcile Adjusted EBITDA to cash available for distribution:
Income taxes payable for the current period	$	(23	)
Debt service, contractual obligations, fixed charges and reserves		(9	)
Lease bonus income, net of tax		(1	)
Cash available for distribution to Viper Energy, Inc. shareholders	$	100

	Three Months Ended March 31, 2025
	Amounts		Amounts Per Common Share
Reconciliation to cash available for variable dividends:
Cash available for distribution to Viper Energy, Inc. shareholders	$	100	$	0.76

Return of Capital	$	75	$	0.57
Less:
Base dividend		39		0.30
Cash available for variable dividends	$	36	$	0.27

Total approved base and variable dividend per share			$	0.57

Class A common stock outstanding				131,323

The following table presents a reconciliation of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of pre-tax income attributable to the Company. Management believes this measure is useful to investors given it provides the basis for income taxes payable by Viper, which is an adjustment to reconcile Adjusted EBITDA to cash available for distribution to holders of the Company’s Class A common stock.

Viper Energy, Inc.
Pre-tax income attributable to Viper Energy, Inc.
(unaudited, in millions)

	Three Months Ended March 31, 2025
	Three Months Ended March 31, 2025
Income (loss) before income taxes	$	174
Less: Net income (loss) attributable to non-controlling interest		78
Pre-tax income attributable to Viper Energy, Inc.	$	96

Income taxes payable for the current period	$	23
Effective cash tax rate attributable to Viper Energy, Inc.		24.0	%

Adjusted net income (loss) is a non-GAAP financial measure equal to net income (loss) attributable to the Company plus net income (loss) attributable to non-controlling interest adjusted for non-cash (gain) loss on derivative instruments, net, (gain) loss on extinguishment of debt, if any, other non-cash operating expenses, if any, other non-recurring expenses, if any, and related income tax adjustments. 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.

The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to the Company to the non-GAAP financial measure of adjusted net income (loss):

Viper Energy, Inc.
Adjusted Net Income (Loss)
(unaudited, in millions, except per share data)

	Three Months Ended March 31, 2025
	Amounts			Amounts Per Diluted Share
Net income (loss) attributable to Viper Energy, Inc. ⁽¹⁾	$	75		$	0.62
Net income (loss) attributable to non-controlling interest		78			0.64
Net income (loss)⁽¹⁾		153			1.26
Non-cash (gain) loss on derivative instruments, net		(23	)		(0.19	)
Adjusted income excluding above items⁽¹⁾		130			1.07
Income tax adjustment for above items		3			0.03
Adjusted net income (loss)⁽¹⁾		133			1.10
Less: Adjusted net income (loss) attributed to non-controlling interests		68			0.56
Adjusted net income (loss) attributable to Viper Energy, Inc. ⁽¹⁾	$	65		$	0.54

Weighted average Class A common shares outstanding:
Basic					120,926
Diluted					121,030

(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 Class A common shares and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to the Company, (ii) less any reallocation of earnings attributable to participating securities, and (iii) divided by diluted weighted average Class A common shares outstanding.

RECONCILIATION OF LONG-TERM DEBT TO NET DEBT

The Company defines the non-GAAP measure of net debt as debt (excluding debt issuance costs, discounts and premiums) 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.

	March 31, 2025			Net Q1 Principal Borrowings/ (Repayments)			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(in millions)
Total long-term debt⁽¹⁾	$	830		$	(261	)	$	1,091		$	831		$	1,007		$	1,103
Cash and cash equivalents		(560	)					(27	)		(169	)		(35	)		(20	)
Net debt	$	270					$	1,064		$	662		$	972		$	1,083

(1) Excludes debt issuance costs, discounts & premiums.

Derivatives

As of the filing date, the Company had the following outstanding derivative contracts. 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. When aggregating multiple contracts, the weighted average contract price is disclosed.

	Crude Oil (Bbls/day, $/Bbl)
	Q2 2025			Q3 2025			Q4 2025		FY 2026		FY 2027
Deferred Premium Puts – WTI (Cushing)		20,000			18,000			—		—		—
Strike	$	55.00		$	55.00		$	—	$	—	$	—
Premium	$	(1.61	)	$	(1.60	)	$	—	$	—	$	—

	Natural Gas (Mmbtu/day, $/Mmbtu)
	Q2 2025		Q3 2025		Q4 2025		FY 2026		FY 2027
Costless Collars – Henry Hub		60,000		60,000		60,000		60,000		—
Floor	$	2.50	$	2.50	$	2.50	$	2.75	$	—
Ceiling	$	4.93	$	4.93	$	4.93	$	6.64	$	—

	Natural Gas (Mmbtu/day, $/Mmbtu)
	Q2 2025			Q3 2025			Q4 2025			FY 2026			FY 2027
Natural Gas Basis Swaps – Waha Hub		60,000			60,000			60,000			60,000			40,000
Swap Price	$	(0.80	)	$	(0.80	)	$	(0.80	)	$	(1.50	)	$	(1.40	)

Investor Contact:

Chip Seale
+1 432.247.6218
cseale@viperenergy.com

Source: Viper Energy, Inc.; Diamondback Energy, Inc.

The MIL Network –

May 6, 2025

MIL-OSI: Tactile Systems Technology, Inc. Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

MINNEAPOLIS, May 05, 2025 (GLOBE NEWSWIRE) — Tactile Systems Technology, Inc. (“Tactile Medical”; the “Company”) (Nasdaq: TCMD), a medical technology company providing therapies for people with chronic disorders, today reported financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Summary & Recent Business Highlights:

Total revenue increased 0.3% year-over-year to $61.3 million
Gross margin of 74% versus 71% in Q1 2024
Net loss of $3.0 million versus $2.2 million in Q1 2024
Adjusted EBITDA loss of $0.3 million versus positive Adjusted EBITDA of $1.0 million in Q1 2024
Repurchased $10.0 million of stock under the Company’s share repurchase program
Expanded launch of Nimbl to include patients with lower extremity conditions, the largest segment of the lymphedema market
Completed launch of a new customer relationship management (CRM) tool and previously announced optimization of sales organization

“Through the first quarter our team executed on several highly strategic, growth-oriented priorities. We launched Nimbl for lower extremity lymphedema, completed efforts to optimize our sales organization for scale and efficiency, and implemented a new CRM tool that equips our team with best-in-class resources to more efficiently reach lymphedema patients,” said Sheri Dodd, Chief Executive Officer of Tactile Medical.

“While these efforts have had a temporary impact on sales force productivity, we are thrilled with the progress made and firmly believe these transformational actions are essential to positioning Tactile for consistent, long-term growth. Our underlying business fundamentals remain firmly in place and we are meaningfully advancing each of our three 2025 strategic priorities to remain the competitive market share leader in medical device lymphatic therapy.”

First Quarter 2025 Financial Results

Total revenue in the first quarter of 2025 increased $180 thousand, or 0.3%, to $61.3 million, compared to $61.1 million in the first quarter of 2024. The increase in total revenue was attributable to an increase of $1.9 million, or 22%, in sales of the airway clearance product line, offset by a decrease of $1.8 million, or 3%, in sales and rentals of the lymphedema product line in the quarter ended March 31, 2025, compared to the first quarter of 2024. The increase in airway clearance product line revenue was primarily attributable to increased placements of AffloVest among our durable medical equipment (DME) partners, while the decrease in lymphedema product line revenue was primarily attributable to a decrease in headcount of our field sales team.

Gross profit in the first quarter of 2025 increased $1.9 million, or 4%, to $45.3 million, compared to $43.4 million in the first quarter of 2024. Gross margin was 74% of revenue, compared to 71% of revenue in the first quarter of 2024. The increase in gross profit was primarily attributable to lower manufacturing and warranty costs.

Operating expenses in the first quarter of 2025 increased $3.5 million, or 8%, to $49.9 million, compared to $46.4 million in the first quarter of 2024. The increase in operating expenses was primarily attributable to planned strategic investments.

Operating loss was $4.5 million in the first quarter of 2025, compared to $3.0 million in the first quarter of 2024.

Other income was $0.5 million in the first quarter of 2025, compared to $0.2 million in the first quarter of 2024, and consisted primarily of interest income, net.

Income tax benefit was $1.1 million in the first quarter of 2025, compared to $0.6 million in the first quarter of 2024.

Net loss in the first quarter of 2025 was $3.0 million, or $(0.13) per diluted share, compared to $2.2 million, or $(0.09) per diluted share, in the first quarter of 2024.

Weighted average shares used to compute diluted net loss per share were 23.7 million in each of the first quarters of 2025 and 2024.

Adjusted EBITDA loss was $0.3 million in the first quarter of 2025, compared to positive Adjusted EBITDA of $1.0 million in the first quarter of 2024.

Balance Sheet Summary

As of March 31, 2025, the Company had $83.6 million in cash and $25.5 million of outstanding borrowings under its credit agreement, compared to $94.4 million in cash and $26.3 million of outstanding borrowings under its credit agreement as of December 31, 2024. The Company repurchased $10.0 million of its stock during the first quarter under its repurchase program. As of March 31, 2025, $16.5 million remained available under the Company’s $30.0 million share repurchase program, which expires October 31, 2026.

2025 Financial Outlook

The Company is updating its 2025 financial outlook and now expects full year 2025 total revenue in the range of $309 million to $315 million, representing growth of approximately 5% to 8% year-over-year, compared to total revenue of $293.0 million in 2024. The Company’s prior 2025 guidance expectation was total revenue in the range of $316 million to $322 million, representing growth of approximately 8% to 10% year-over-year.

The Company now also expects full year 2025 adjusted EBITDA in the range of $32 million to $34 million, compared to adjusted EBITDA of $37.1 million in 2024. The Company’s prior 2025 guidance expectation was adjusted EBITDA in the range of $35 million to $37 million.

Conference Call

Management will host a conference call with a question-and-answer session at 5:00 p.m. Eastern Time on May 5, 2025, to discuss the results of the quarter. Those who would like to participate may dial 877-407-3088 (201-389-0927 for international callers) and provide access code 13752588. A live webcast of the call will also be provided on the investor relations section of the Company’s website at investors.tactilemedical.com.

For those unable to participate, a replay of the call will be available for two weeks at 877-660-6853 (201-612-7415 for international callers); access code 13752588. The webcast will be archived at investors.tactilemedical.com.

About Tactile Systems Technology, Inc. (DBA Tactile Medical)

Tactile Medical is a leader in developing and marketing at-home therapies for people suffering from underserved, chronic conditions including lymphedema, lipedema, chronic venous insufficiency and chronic pulmonary disease by helping them live better and care for themselves at home. Tactile Medical collaborates with clinicians to expand clinical evidence, raise awareness, increase access to care, reduce overall healthcare costs and improve the quality of life for tens of thousands of patients each year.

Legal Notice Regarding Forward-Looking Statements

This release contains forward-looking statements, including guidance for the full year 2025. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “continue,” “confident,” “outlook,” “guidance,” “project,” “goals,” “look forward,” “poised,” “designed,” “plan,” “return,” “focused,” “prospects” or “remain” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of the Company’s control that can make such statements untrue, including, but not limited to, the Company’s ability to obtain reimbursement from third-party payers for its products; adverse economic conditions, including inflation, rising interest rates or a recession; the adequacy of the Company’s liquidity to pursue its business objectives; price increases for supplies and components; wage and component price inflation; loss of a key supplier or other supply chain disruptions; entry of new competitors and/or competitive products; compliance with and changes in federal, state and local government regulation; technological obsolescence of, or quality issues with, the Company’s products; the Company’s ability to expand its business through strategic acquisitions; the Company’s ability to integrate acquisitions and related businesses; the effects of current and future U.S. and foreign trade policy and tariff actions; or the inability to carry out research, development and commercialization plans. In addition, other factors that could cause actual results to differ materially are discussed in the Company’s filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

This press release includes the non-GAAP financial measure of Adjusted EBITDA, which differs from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA in this release represents net income (loss), plus interest expense, net, or less interest income, net, less income tax benefit or plus income tax expense, plus depreciation and amortization, plus stock-based compensation expense and plus executive transition costs. Reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure is included in this press release.

This non-GAAP financial measure is presented because the Company believes it is a useful indicator of its operating performance. Management uses this measure principally as a measure of the Company’s operating performance and for planning purposes, including the preparation of the Company’s annual operating plan and financial projections. The Company believes this measure is useful to investors as supplemental information and because it is frequently used by analysts, investors and other interested parties to evaluate companies in its industry. The Company also believes this non-GAAP financial measure is useful to its management and investors as a measure of comparative operating performance from period to period. In addition, Adjusted EBITDA is used as a performance metric in the Company’s compensation program.

The non-GAAP financial measure presented in this release should not be considered as an alternative to, or superior to, its respective GAAP financial measure, as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating non-GAAP financial measures, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using non-GAAP financial measures on a supplemental basis. The Company’s definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.


Tactile Systems Technology, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
	March 31,		December 31,
(In thousands, except share and per share data)	2025		2024
*Assets*
Current assets
Cash	$	83,619	$	94,367
Accounts receivable, net		35,693		44,937
Net investment in leases		14,850		14,540
Inventories		18,867		18,666
Income taxes receivable		1,193		—
Prepaid expenses and other current assets		5,900		5,053
Total current assets		160,122		177,563
Non-current assets
Property and equipment, net		5,391		5,603
Right of use operating lease assets		16,174		16,633
Intangible assets, net		41,866		42,789
Goodwill		31,063		31,063
Deferred income taxes		18,059		18,311
Other non-current assets		7,567		5,962
Total non-current assets		120,120		120,361
Total assets	$	280,242	$	297,924
*Liabilities and Stockholders’ Equity*
Current liabilities
Accounts payable	$	7,224	$	5,648
Note payable		2,956		2,956
Accrued payroll and related taxes		10,929		17,923
Accrued expenses		7,177		7,780
Income taxes payable		—		270
Operating lease liabilities		3,036		2,980
Other current liabilities		4,079		3,147
Total current liabilities		35,401		40,704
Non-current liabilities
Note payable, non-current		22,481		23,220
Accrued warranty reserve, non-current		1,201		1,209
Income taxes payable, non-current		355		239
Operating lease liabilities, non-current		15,173		15,955
Total non-current liabilities		39,210		40,623
Total liabilities		74,611		81,327

Stockholders’ equity:
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued and outstanding as of March 31, 2025 and December 31, 2024		—		—
Common stock, $0.001 par value, 300,000,000 shares authorized; 23,584,471 shares issued and outstanding as of March 31, 2025; 23,883,475 shares issued and outstanding as of December 31, 2024		24		24
Additional paid-in capital		172,727		180,719
Retained earnings		32,880		35,854
Total stockholders’ equity		205,631		216,597
Total liabilities and stockholders’ equity	$	280,242	$	297,924


Tactile Systems Technology, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)


	Three Months Ended
	March 31,
(In thousands, except share and per share data)	2025			2024
Revenue
Sales revenue	$	52,469		$	53,307
Rental revenue		8,799			7,781
Total revenue		61,268			61,088
Cost of revenue
Cost of sales revenue		13,891			14,944
Cost of rental revenue		2,031			2,715
Total cost of revenue		15,922			17,659
Gross profit
Gross profit – sales revenue		38,578			38,363
Gross profit – rental revenue		6,768			5,066
Gross profit		45,346			43,429
Operating expenses
Sales and marketing		27,516			27,357
Research and development		1,741			2,143
Reimbursement, general and administrative		19,998			16,261
Intangible asset amortization and earn-out		633			632
Total operating expenses		49,888			46,393
Loss from operations		(4,542	)		(2,964	)
Interest income		895			713
Interest expense		(424	)		(567	)
Other income		—			9
Loss before income taxes		(4,071	)		(2,809	)
Income tax benefit		(1,097	)		(600	)
Net loss	$	(2,974	)	$	(2,209	)
Net loss per common share
Basic	$	(0.13	)	$	(0.09	)
Diluted	$	(0.13	)	$	(0.09	)
Weighted-average common shares used to compute net loss per common share
Basic		23,710,643			23,665,829
Diluted		23,710,643			23,665,829


Tactile Systems Technology, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

	Three Months Ended March 31,
(In thousands)	2025			2024
Cash flows from operating activities
Net loss	$	(2,974	)	$	(2,209	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		1,726			1,634
Deferred income taxes		252			84
Stock-based compensation expense		2,066			2,039
Loss on disposal of property and equipment and intangibles		5			—
Changes in assets and liabilities, net of acquisition:
Accounts receivable, net		9,244			2,682
Net investment in leases		(310	)		(129	)
Inventories		(201	)		1,683
Income taxes		(1,347	)		(693	)
Prepaid expenses and other assets		(2,452	)		(787	)
Right of use operating lease assets		(267	)		2
Accounts receivable, non-current		—			3,983
Accounts payable		1,387			(1,396	)
Accrued payroll and related taxes		(6,994	)		(5,766	)
Accrued expenses and other liabilities		282			(203	)
Net cash provided by operating activities		417			924
Cash flows from investing activities
Purchases of property and equipment		(379	)		(482	)
Intangible assets expenditures		(28	)		(20	)
Net cash used in investing activities		(407	)		(502	)
Cash flows from financing activities
Payments on note payable		(750	)		(750	)
Proceeds from exercise of common stock options		10			1
Payments for repurchases of common stock		(10,018	)		—
Net cash used in financing activities		(10,758	)		(749	)
Net decrease in cash		(10,748	)		(327	)
Cash – beginning of period		94,367			61,033
Cash – end of period	$	83,619		$	60,706

Supplemental cash flow disclosure
Cash paid for interest	$	444		$	583
Cash paid for taxes	$	15		$	54
Accrued excise tax on stock repurchases	$	50		$	—
Capital expenditures incurred but not yet paid	$	189		$	225

The following table summarizes revenue by product line for the three months ended March 31, 2025 and 2024:


	Three Months Ended
	March 31,
(In thousands)	2025			2024
Revenue
Lymphedema products	$	50,554		$	52,313
Airway clearance products		10,714			8,775
Total	$	61,268		$	61,088

Percentage of total revenue
Lymphedema products		83	%		86	%
Airway clearance products		17	%		14	%
Total		100	%		100	%

The following table contains a reconciliation of net loss to Adjusted EBITDA for the three months ended March 31, 2025 and 2024, as well as the dollar and percentage change between the comparable periods:


Tactile Systems Technology, Inc.
Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA
(Unaudited)

	Three Months Ended						Increase
	March 31,						(Decrease)
(Dollars in thousands)	2025			2024			$			%
Net loss	$	(2,974	)	$	(2,209	)	$	(765	)	35	%
Interest (income) expense, net		(471	)		(146	)		(325	)	N.M.	%
Income tax benefit		(1,097	)		(600	)		(497	)	83	%
Depreciation and amortization		1,726			1,634			92		6	%
Stock-based compensation		2,066			2,039			27		1	%
Executive transition costs		491			315			176		56	%
Adjusted EBITDA	$	(259	)	$	1,033		$	(1,292	)	(125	)%

The following table contains a reconciliation of net income to Adjusted EBITDA for the year ended December 31, 2024:


Tactile Systems Technology, Inc.
Reconciliation of Net income to Non-GAAP Adjusted EBITDA
(Unaudited)

	Year Ended
(Dollars in thousands)	December 31, 2024
Net income	$	16,960
Interest (income) expense, net		(1,299	)
Income tax expense		6,529
Depreciation and amortization		6,793
Stock-based compensation		7,819
Executive transition costs		248
Adjusted EBITDA	$	37,050

The following table contains a reconciliation of GAAP net income guidance range to the Adjusted EBITDA guidance range for the twelve months ended December 31, 2025:


Tactile Systems Technology, Inc.
Reconciliation of FY 2025 GAAP Net Income to Adjusted EBITDA Guidance
(Unaudited)

	Twelve Months Ended
	December 31, 2025
(Dollars in thousands)	Low			High
Net income	$	13,400		$	14,800
Interest income, net		(2,400	)		(2,400	)
Income tax expense		5,200			5,800
Depreciation and amortization		6,700			6,700
Stock-based compensation		8,600			8,600
Executive transition costs		500			500
Adjusted EBITDA	$	32,000		$	34,000

Investor Inquiries:
Sam Bentzinger
Gilmartin Group
investorrelations@tactilemedical.com

The MIL Network –

May 6, 2025

MIL-OSI: EverQuote Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

First Quarter Revenue Growth of 83% Year-Over-Year to $166.6 million
First Quarter Variable Marketing Dollars Increase of 52% Year-Over-Year to $46.9 million
Delivers First Quarter Net Income of $8.0 million and Record Adjusted EBITDA of $22.5 million

CAMBRIDGE, Mass., May 05, 2025 (GLOBE NEWSWIRE) — EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced financial results for the first quarter ended March 31, 2025.

“2025 is off to a strong start, building on our momentum from last year, and we once again achieved record financial performance across our key financial metrics of revenue, Variable Marketing Dollars or VMD and Adjusted EBITDA,” said Jayme Mendal, CEO of EverQuote. “Our scale and technology are enabling us to build a competitive moat and leverage a data advantage as we extend AI throughout our traffic and distribution systems. We are delivering strong performance to carriers and agents, and they are rewarding us with increased budgets, which supports continued traffic growth. We remain steadfast in our focus to become the leading growth partner for P&C insurance providers.”

“The first quarter marks our fourth consecutive quarter of record revenue and Adjusted EBITDA performance, and we ended the quarter with a strong cash position and no debt outstanding,” said Joseph Sanborn, CFO of EverQuote. “EverQuote remains resilient to macro conditions and is well positioned for continued success as a broad number of carriers are benefiting from healthy combined ratios and are focusing on driving policy growth. Given this favorable environment, we believe that the long-term thesis of insurance advertising spend shifting to digital channels remains firmly intact.”

First Quarter 2025 Highlights:
(Unless otherwise noted, all comparisons are relative to the first quarter of 2024).

Total revenue grew 83% to $166.6 million.
Automotive insurance vertical revenue of $152.7 million, an increase of 97%.
Home and renters insurance vertical revenue of $13.9 million, an increase of 10%.
VMD grew to $46.9 million, compared to $30.8 million, an increase of 52%.
GAAP net income of $8.0 million, compared to a GAAP net income of $1.9 million. GAAP net income in Q1 2025 included a non-cash charge of $7.9 million related to divesting the remaining P&C direct-to-consumer agency assets to settle an existing legal matter with the former owners of PolicyFuel, which was acquired in 2021.
Adjusted EBITDA of $22.5 million, compared to $7.6 million.
Operating cash flow of $23.3 million, compared to $10.4 million.
Ended the quarter with $125.0 million in cash and cash equivalents, an increase of 22% from $102.1 million at the end of the fourth quarter of 2024.

Second Quarter 2025 Outlook:

Revenue of $155.0 – $160.0 million, representing 34% year-over-year growth at the midpoint.
Variable Marketing Dollars of $45.0 – $47.0 million, representing 26% year-over-year growth at the midpoint.
Adjusted EBITDA of $20.0 – $22.0 million, representing 62% year-over-year growth at the midpoint.

With respect to the Company’s expectations under “Second Quarter 2025 Outlook” above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income (loss) in this press release because the Company does not provide guidance for stock-based compensation expense, depreciation and amortization expense, legal settlement expense, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income (loss). In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.

Conference Call and Webcast Information

EverQuote will host a conference call and live webcast to discuss its first quarter 2025 financial results at 4:30 p.m. Eastern Time today, May 5, 2025. To access the conference call, dial Toll Free: +1 (800) 715-9871 for the US, or +1 (646) 307-1963 for international callers, and provide conference ID 4210704. The live webcast and replay will be available on the Investors section of the Company’s website at https://investors.everquote.com.

Safe Harbor Statement

This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. These statements 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. In some cases, you can identify forward-looking statements by terms such as “may,” “should,” “expects,” “might,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “seek,” “would” or “continue,” or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, liquidity and results of operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions described in our annual report on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K as filed with the Securities and Exchange Commission (“SEC”) from time to time. Additional information will also be set forth in the Company’s annual report on Form 10-Q for the quarter ended March 31, 2025, which will be filed with the SEC. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. While we may elect to update these forward-looking statements at some point in the future, whether as a result of any new information, future events, or otherwise, we have no current intention of doing so except to the extent required by applicable law. Some of the key factors that could cause actual results to differ include: (1) our dependence on revenue from the property and casualty insurance industries, and specifically automotive insurance, and exposure to risks related to those industries; (2) our dependence on our relationships with insurance providers with no long-term minimum financial commitments; (3) our reliance on a small number of insurance providers for a significant portion of our revenue; (4) our dependence on third-party media sources for a significant portion of visitors to our websites and marketplace; (5) our ability to attract consumers searching for insurance to our websites and marketplace through Internet search engines, display advertising, social media, content-based online advertising and other online sources; (6) any limitations restricting our ability to market to users or collect and use data derived from user activities; (7) risks related to cybersecurity incidents or other network disruptions; (8) risks related to the use of artificial intelligence; (9) our ability to develop new and enhanced products and services to attract and retain consumers and insurance providers, and to successfully monetize them; (10) the impact of competition in our industry and innovation by our competitors; (11) our ability to hire and retain necessary qualified employees to expand our operations; (12) our ability to stay abreast of and comply with new or modified laws and regulations that currently apply or become applicable to our business, including with respect to the insurance industry, telemarketing restrictions and data privacy requirements; (13) our ability to protect our intellectual property rights and maintain and build our brand; (14) our future financial performance, including our expectations regarding our revenue, cost of revenue, variable marketing dollars, operating expenses, cash flows and ability to achieve, and maintain, future profitability; (15) our ability to properly collect, process, store, share, disclose and use consumer information and other data; (16) any impacts of economic developments, including inflation and potential tariffs; and (17) the future trading prices of our Class A common stock.

About EverQuote

EverQuote operates a leading online marketplace for insurance shopping, connecting consumers with insurance provider customers, which includes both carriers and agents. Our vision is to be the leading growth partner for property and casualty, or P&C, insurance providers. Our results-driven marketplace, powered by our proprietary data and technology platform, is improving the way insurance providers attract and connect with consumers shopping for insurance.

For more information, visit https://investors.everquote.com and follow on LinkedIn.

Investor Relations Contact

Brinlea Johnson
The Blueshirt Group
(415) 269-2645


EVERQUOTE, INC.
STATEMENTS OF OPERATIONS

	Three Months Ended March 31,
	2025			2024
	(in thousands except per share)
Revenue	$	166,632		$	91,065
Cost and operating expenses(1):
Cost of revenue		5,380			5,041
Sales and marketing		129,430			70,784
Research and development		7,485			6,844
General and administrative		8,440			6,630
Legal settlement		7,900			—
Total cost and operating expenses		158,635			89,299
Income from operations		7,997			1,766
Other income (expense):
Interest income		708			386
Other income (expense), net		(31	)		41
Total other income, net		677			427
Income before income taxes		8,674			2,193
Income tax expense		(684	)		(286	)
Net income	$	7,990		$	1,907
Net income per share:
Basic	$	0.22		$	0.06
Diluted	$	0.21		$	0.05
Weighted average common shares outstanding, basic and diluted:
Basic		35,879			34,387
Diluted		37,667			35,608

^{(1) Amounts include stock-based compensation expense, as follows:}
	Three Months Ended March 31,
	2025			2024
	(in thousands)
Cost of revenue	$	9		$	36
Sales and marketing		1,565			1,594
Research and development		1,370			1,312
General and administrative		2,476			1,576
	$	5,420		$	4,518

EVERQUOTE, INC.
BALANCE SHEET DATA

	March 31,		December 31,
	2025		2024
	(in thousands)
Cash and cash equivalents	$	124,968	$	102,116
Working capital		113,927		99,131
Total assets		232,145		210,530
Total liabilities		82,645		75,162
Total stockholders’ equity		149,500		135,368

EVERQUOTE, INC.
STATEMENTS OF CASH FLOWS

	Three Months Ended March 31,
	2025			2024
	(in thousands)
Cash flows from operating activities:
Net income	$	7,990		$	1,907
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		1,221			1,263
Stock-based compensation expense		5,420			4,518
Provision for bad debt		—			18
Unrealized foreign currency transaction (gains) losses		35			(4	)
Changes in operating assets and liabilities:
Accounts receivable		(457	)		(17,123	)
Prepaid expenses and other current assets		496			972
Commissions receivable, current and non-current		1,014			1,323
Operating lease right-of-use assets		267			497
Accounts payable		(2,765	)		15,868
Accrued expenses and other current liabilities		10,018			1,870
Deferred revenue		335			(2	)
Operating lease liabilities		(268	)		(667	)
Net cash provided by operating activities		23,306			10,440
Cash flows from investing activities:
Acquisition of property and equipment, including costs capitalized for development of internal-use software		(1,133	)		(770	)
Net cash used in investing activities		(1,133	)		(770	)
Cash flows from financing activities:
Proceeds from exercise of stock options		1,962			1,428
Tax withholding payments related to net share settlement		(1,293	)		(429	)
Net cash provided by financing activities		669			999
Effect of exchange rate changes on cash, cash equivalents and restricted cash		10			(5	)
Net increase in cash, cash equivalents and restricted cash		22,852			10,664
Cash, cash equivalents and restricted cash at beginning of period		102,116			37,956
Cash, cash equivalents and restricted cash at end of period	$	124,968		$	48,620

EVERQUOTE, INC.
FINANCIAL AND OPERATING METRICS

Revenue by vertical:

	Three Months Ended March 31,				Change
	2025		2024		%
	(in thousands)
Automotive	$	152,715	$	77,538		97.0	%
Home and renters		13,904		12,689		9.6	%
Other		13		838		-98.4	%
Total revenue	$	166,632	$	91,065		83.0	%

Other financial and non-financial metrics:

	Three Months Ended March31,				Change
	2025		2024		%
	(in thousands)
Income from operations	$	7,997	$	1,766		352.8	%
Net income	$	7,990	$	1,907		319.0	%
Variable marketing dollars	$	46,860	$	30,818		52.1	%
Adjusted EBITDA(1)	$	22,507	$	7,588		196.6	%

^{(1) Adjusted EBITDA is a non-GAAP measure. Please see “EverQuote, Inc. Reconciliation of Non-GAAP Measures to GAAP” below for more information.}

To supplement the Company’s financial statements presented in accordance with GAAP and to provide investors with additional information regarding EverQuote’s financial results, the Company has presented Adjusted EBITDA as a non-GAAP financial measure. This non-GAAP financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies.

The Company defines Adjusted EBITDA as net income (loss), excluding the impact of stock-based compensation expense; depreciation and amortization expense; legal settlement expense; interest income; and income taxes. The most directly comparable GAAP measure is net income (loss). The Company monitors and presents Adjusted EBITDA because it is a key measure used by management and the board of directors to understand and evaluate operating performance, to establish budgets and to develop operational goals for managing EverQuote’s business. In particular, the Company believes that excluding the impact of these items in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of EverQuote’s core operating performance.

The Company uses Adjusted EBITDA to evaluate EverQuote’s operating performance and trends and make planning decisions. The Company believes that this non-GAAP financial measure helps identify underlying trends in EverQuote’s business that could otherwise be masked by the effect of the items that the Company excludes in the calculations of Adjusted EBITDA. Accordingly, the Company believes that this financial measure provides useful information to investors and others in understanding and evaluating EverQuote’s operating results, enhancing the overall understanding of the Company’s past performance and future prospects.

The Company’s non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which is the most directly comparable financial measure calculated and presented in accordance with GAAP. In addition, other companies may use other measures to evaluate their performance, which could reduce the usefulness of the Company’s non-GAAP financial measures as tools for comparison.

The following table reconciles Adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP.


EVERQUOTE, INC.
RECONCILIATION OF NON-GAAP MEASURES TO GAAP

	Three Months Ended March 31,
	2025			2024
	(in thousands)
Net income	$	7,990		$	1,907
Stock-based compensation		5,420			4,518
Depreciation and amortization		1,221			1,263
Legal settlement		7,900			—
Interest income		(708	)		(386	)
Income tax expense		684			286
Adjusted EBITDA	$	22,507		$	7,588

The MIL Network –

May 6, 2025

MIL-OSI: James River Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

PEMBROKE, Bermuda, May 05, 2025 (GLOBE NEWSWIRE) — James River Group Holdings, Ltd. (“James River” or the “Company”) (NASDAQ: JRVR) reported net income from continuing operations available to common shareholders of $9.0 million ($0.18 per diluted share) and adjusted net operating income¹ of $9.1 million ($0.19 per diluted share) for the first quarter of 2025.

	Three Months Ended March 31,						Three Months Ended March 31,
*($ in thousands, except for share data)*		2025		per diluted share				2024		per diluted share
Net income from continuing operations available to common shareholders	$	9,019		$	0.18		$	20,883		$	0.53
Net loss from discontinued operations²		(1,414	)	$	(0.02	)		(8,105	)	$	(0.18	)
Net income available to common shareholders		7,605		$	0.16			12,778		$	0.35
Adjusted net operating income¹		9,102		$	0.19			14,832		$	0.39

Unless specified otherwise, all underwriting performance ratios presented herein are for our continuing operations and business not subject to retroactive reinsurance accounting.

First Quarter 2025 Highlights:

Annualized adjusted net operating return on tangible common equity¹ of 11.5% and year to date growth in tangible common equity¹ of 7.1%.
E&S segment combined ratio of 91.5% and renewal rate change of 7.8%, with the majority of underwriting divisions reporting pricing increases.
Specialty Admitted Insurance segment combined ratio of 102.1%, with fronting and program gross written premium declining 21.3%.
De minimis overall prior year reserve activity. Group combined ratio of 99.5%.
Final independent accounting firm determination in the purchase price adjustment dispute related to the sale of JRG Reinsurance Company Ltd. (“JRG Re”), finding in favor of the Company on $53.6 million of the aggregate $54.1 million of items in dispute, resulting in a small downward adjustment to the purchase price of ($0.5) million. This is reflected in the first quarter results.

Frank D’Orazio, the Company’s Chief Executive Officer, commented on the first quarter, “Coming out of 2024, our first quarter results show progress in strengthening our underwriting performance and positioning the franchise for long-term, sustainable profitability. Our disciplined approach to risk selection, combined with the actions taken over the past year to strengthen our reserve position, are showing tangible results. As we move forward, we remain focused on delivering value to shareholders as we take advantage of the attractive E&S underwriting environment while closely managing our expenses.”

E&S Segment Highlights:
- For the first quarter of 2025, the segment’s gross written premium was largely flat to the comparable quarter last year.
- Renewal rate increases across the segment were 7.8% during the quarter.
- The segment continued to experience strong submission growth, with the 6% growth in renewal submissions exceeding 2024 levels.
- There was de minimis favorable reserve development during the quarter.
Specialty Admitted Insurance Segment Highlights:
- Gross written premium for the fronting and program business declined 21.3% compared to the prior year quarter, as the Company manages this segment to retain minimal risk. This excludes the impact of our large workers’ compensation program and Individual Risk Workers’ Compensation book, which were non-renewed in the second quarter of 2023 and sold via a renewal rights transaction in the third quarter of 2023, respectively. Overall, premium declined 30.7%
- While the fronting business of the segment is transactional in nature, the Company remains focused on managing its expenses in this segment over the course of the calendar year.
- There was de minimis prior year reserve movement during the quarter.

First Quarter 2025 Operating Results

Gross written premium of $294.4 million, consisting of the following:

	Three Months Ended March 31,
*($ in thousands)*	2025		2024		*% Change*
Excess and Surplus Lines	$	213,243	$	213,691	0	%
Specialty Admitted Insurance		81,118		117,119	(31	)%
	$	294,361	$	330,810	(11	)%

Net written premium of $128.0 million, consisting of the following:

	Three Months Ended March 31,
*($ in thousands)*	2025		2024		*% Change*
Excess and Surplus Lines	$	115,079	$	117,425	(2	)%
Specialty Admitted Insurance		12,877		20,747	(38	)%
	$	127,956	$	138,172	(7	)%

Net earned premium of $151.9 million, consisting of the following:

	Three Months Ended March 31,
*($ in thousands)*	2025		2024		*% Change*
Excess and Surplus Lines	$	137,028	$	145,623	(6	)%
Specialty Admitted Insurance		14,874		26,068	(43	)%
	$	151,902	$	171,691	(12	)%

As cited above, the first quarter of 2025 included de minimis favorable reserve development in each of the two insurance segments. There remains $116.2 million of aggregate limit on the two E&S segment retroactive reinsurance structures which cover the majority of James River’s E&S segment net reserves for James River’s E&S segment for accident years 2010 -2023.
Pre-tax favorable (unfavorable) reserve development by segment on business not subject to retroactive reinsurance accounting for loss portfolio transfers was as follows:

	Three Months Ended March 31,
*($ in thousands)*	2025		2024
Excess and Surplus Lines	$	10	$	(40	)
Specialty Admitted Insurance		121		438
	$	131	$	398

Retroactive benefits of $1.9 million were recorded in loss and loss adjustment expenses during the first quarter and the total deferred retroactive reinsurance gain on the Balance Sheet is $56.0 million as of March 31, 2025.
The consolidated expense ratio was 32.7% for the first quarter of 2025, which was an increase from 28.9% in the prior year quarter. The expense ratio increase was primarily driven by higher compensation expenses on lower net earned premium.

Investment Results
Net investment income for the first quarter of 2025 was $20.0 million, a decline of 11.6% compared to $22.6 million in the prior year quarter. The comparable decline in income was primarily due to a smaller asset base following the funding of retroactive reinsurance structures for the E&S segment which were purchased in the second half of 2024.

The Company’s net investment income consisted of the following:

	Three Months Ended March 31,
*($ in thousands)*	2025		2024			*% Change*
Private Investments		200		(145	)	NM
All Other Investments		19,808		22,777		(13	)%
Total Net Investment Income	$	20,008	$	22,632		(12	)%

The Company’s annualized gross investment yield on average fixed maturity, bank loan and equity securities for the three months ended March 31, 2025 was 4.6% (versus 4.8% for the three months ended March 31, 2024).

Net realized and unrealized losses on investments of ($1.4) million for the three months ended March 31, 2025 compared to net realized and unrealized gains on investments of $4.6 million in the prior year quarter. The majority of the realized and unrealized losses during the quarter were related to realized losses on sales in our bank loan portfolio, partially offset by increases in the fair value of our preferred stock portfolio.

Discontinued Operations

In connection with the process outlined in the Stock Purchase Agreement, and as previously disclosed, the buyer of JRG Re claimed a $54.1 million downward adjustment to the closing purchase price, which the Company disputed. As per the Stock Purchase Agreement, the disputed items (totaling $54.1 million) were submitted to an independent accounting firm for final resolution. On April 18, 2025, the independent accounting firm issued its final determination which resulted in a small downward adjustment to the closing purchase price of $0.5 million. The determination by the independent accounting firm is final and binding with regards to the purchase price.

Capital Management

The Company announced that its Board of Directors declared a cash dividend of $0.01 per common share. This dividend is payable on Monday, June 30, 2025 to all shareholders of record on Monday, June 9, 2025.

Tangible Common Equity Per Share

Shareholders’ equity of $484.5 million at March 31, 2025 increased 5.1% compared to shareholders’ equity of $460.9 million at December 31, 2024. Tangible common equity³ per share of $7.11 at March 31, 2025 increased 6.6% compared to tangible common equity per share of $6.67 at December 31, 2024, due to net income from continuing operations, partially offset by a small net loss from discontinued operations. Other comprehensive income benefited by $14.3 million during the first quarter of 2025, improving AOCI to ($55.7) million due to a decline in interest rates.

Conference Call

James River will hold a conference call to discuss its first quarter results tomorrow, May 6, 2025 at 8:00 a.m. Eastern Time. Investors may access the conference call by dialing (800) 715-9871, Conference ID 8501569, or via the internet by visiting www.jrvrgroup.com and clicking on the “Investor Relations” link. A webcast replay of the call will be available by visiting the company website.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, should, intend, project, anticipate, plan, estimate, guidance or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and uncertainties, they include, among others, the following: the inherent uncertainty of estimating reserves and the possibility that incurred losses may be greater than our estimate used to compute loss and loss adjustment expense reserves; inaccurate estimates and judgments in our risk management may expose us to greater risks than intended; downgrades in the financial strength rating or outlook of our regulated insurance subsidiaries impacting our competitive position and ability to attract and retain insurance business that our subsidiaries write and ultimately our financial condition; the potential loss of key members of our management team or key employees, and our ability to attract and retain personnel; adverse economic and competitive factors resulting in the sale of fewer policies than expected or an increase in the frequency or severity of claims, or both; the impact of a higher than expected inflationary environment on our reserves, loss adjustment expenses, the values of our investments and investment returns, and our compensation expenses; exposure to credit risk, interest rate risk and other market risk in our investment portfolio and our reinsurers; reliance on a select group of brokers and agents for a significant portion of our business and the impact of our potential failure to maintain such relationships; reliance on a select group of customers for a significant portion of our business and the impact of our potential failure to maintain, or decision to terminate, such relationships; our ability to obtain insurance and reinsurance coverage at prices and on terms that allow us to transfer risk, adequately protect our Company against financial loss and that supports our growth plans; losses resulting from reinsurance counterparties failing to pay us on reinsurance claims, insurance companies with whom we have a fronting arrangement failing to pay us for claims, or a former customer with whom we have an indemnification arrangement failing to perform its reimbursement obligations, and our potential inability to demand or maintain adequate collateral to mitigate such risks; the inherent uncertainty of estimating reinsurance recoverable on unpaid losses and the possibility that reinsurance may be less than our estimate of reinsurance recoverable on unpaid losses; inadequacy of premiums we charge to compensate us for our losses incurred; changes in laws or government regulation, including tax or insurance laws and regulations; changes in U.S. tax laws (including associated regulations) and the interpretation of certain provisions applicable to insurance/reinsurance businesses with U.S. and non-U.S. operations, which may be retroactive and could have a significant effect on us including, among other things, by potentially increasing our tax rate, as well as on our shareholders; in the event we did not qualify for the insurance company exception to the passive foreign investment company (“PFIC”) rules and were therefore considered a PFIC, there could be material adverse tax consequences to an investor that is subject to U.S. federal income taxation; the Company or its foreign subsidiary becoming subject to U.S. federal income taxation; a failure of any of the loss limitations or exclusions we utilize to shield us from unanticipated financial losses or legal exposures, or other liabilities; losses from catastrophic events, such as natural disasters and terrorist acts, which substantially exceed our expectations and/or exceed the amount of reinsurance we have purchased to protect us from such events; potential effects on our business of emerging claim and coverage issues; the potential impact of internal or external fraud, operational errors, systems malfunctions or cyber security incidents; our ability to manage our growth effectively; failure to maintain effective internal controls in accordance with the Sarbanes-Oxley Act of 2002, as amended; changes in our financial condition, regulations or other factors that may restrict our subsidiaries’ ability to pay us dividends; and an adverse result in any litigation or legal proceedings we are or may become subject to. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those in the forward-looking statements, is contained in our filings with the U.S. Securities and Exchange Commission (“SEC”), including our most recently filed Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Non-GAAP Financial Measures

In presenting James River Group Holdings, Ltd.’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”). Such measures, including underwriting (loss) profit, adjusted net operating (loss) income, tangible equity, tangible common equity, and adjusted net operating return on tangible equity (which is calculated as annualized adjusted net operating income divided by the average quarterly tangible equity balances in the respective period), are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those measures determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included at the end of this press release.

About James River Group Holdings, Ltd.

James River Group Holdings, Ltd. is a Bermuda-based insurance holding company that owns and operates a group of specialty insurance companies. The Company operates in two specialty property-casualty insurance segments: Excess and Surplus Lines and Specialty Admitted Insurance. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) by A.M. Best Company.

Visit James River Group Holdings, Ltd. on the web at www.jrvrgroup.com

For more information contact:

Zachary Shytle
Senior Analyst, Investments and Investor Relations
980-249-6848
InvestorRelations@james-river-group.com


James River Group Holdings, Ltd. and Subsidiaries Condensed Consolidated Balance Sheet Data (Unaudited)

*($ in thousands, except for share data)*	March 31, 2025		December 31, 2024
ASSETS
Invested assets:
Fixed maturity securities, available-for-sale, at fair value	$	1,259,627	$	1,189,733
Equity securities, at fair value		87,746		86,479
Bank loan participations, at fair value		144,014		142,410
Short-term investments		79,091		97,074
Other invested assets		52,768		36,700
Total invested assets		1,623,246		1,552,396

Cash and cash equivalents		279,427		362,345
Restricted cash equivalents (a)		29,012		28,705
Accrued investment income		10,567		10,534
Premiums receivable and agents’ balances, net		205,965		243,882
Reinsurance recoverable on unpaid losses, net		1,984,292		1,996,913
Reinsurance recoverable on paid losses		127,627		101,210
Deferred policy acquisition costs		27,844		30,175
Goodwill and intangible assets		214,190		214,281
Other assets		446,845		466,635
Total assets	$	4,949,015	$	5,007,076

LIABILITIES AND SHAREHOLDERS’ EQUITY
Reserve for losses and loss adjustment expenses	$	3,081,540	$	3,084,406
Unearned premiums		526,506		572,034
Funds held (a)		25,157		25,157
Deferred reinsurance gain		56,042		57,970
Senior debt		225,800		200,800
Junior subordinated debt		104,055		104,055
Accrued expenses		39,196		53,178
Other liabilities		273,124		315,446
Total liabilities		4,331,420		4,413,046

Series A redeemable preferred shares		133,115		133,115
Total shareholders’ equity		484,480		460,915
Total liabilities, Series A redeemable preferred shares, and shareholders’ equity	$	4,949,015	$	5,007,076

Tangible equity (b)	$	459,447	$	437,719
Tangible equity per share (b)	$	7.73	$	7.40
Tangible common equity per share (b)	$	7.11	$	6.67
Shareholders’ equity per share	$	10.56	$	10.10
Common shares outstanding		45,892,706		45,644,318

(a) Restricted cash equivalents and the funds held liability includes funds posted by the Company to a trust account for the benefit of a third party administrator handling the claims on the Rasier commercial auto policies in run-off. Such funds held in trust secure the Company’s obligations to reimburse the administrator for claims payments, and are primarily sourced from the collateral posted to the Company by Rasier and its affiliates to support their obligations under the indemnity agreements and the loss portfolio transfer reinsurance agreement with the Company.
(b) See “Reconciliation of Non-GAAP Measures”


James River Group Holdings, Ltd. and Subsidiaries Condensed Consolidated Income Statement Data (Unaudited)

	Three Months Ended March 31,
*($ in thousands, except for share data)*		2025			2024
REVENUES
Gross written premiums	$	294,361		$	330,810
Net written premiums		127,956			138,172

Net earned premiums		151,902			171,691
Net investment income		20,008			22,632
Net realized and unrealized (losses) gains on investments		(1,371	)		4,583
Other income		1,750			2,221
Total revenues		172,289			201,127

EXPENSES
Losses and loss adjustment expenses (a)		99,525			110,049
Other operating expenses		50,560			50,810
Other expenses		563			732
Interest expense		5,541			6,485
Intangible asset amortization and impairment		91			91
Total expenses		156,280			168,167
Income from continuing operations before income taxes		16,009			32,960
Income tax expense on continuing operations		5,021			9,452
Net income from continuing operations		10,988			23,508
Net loss from discontinued operations		(1,414	)		(8,105	)
NET INCOME		9,574			15,403
Dividends on Series A preferred shares		(1,969	)		(2,625	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	7,605		$	12,778
ADJUSTED NET OPERATING INCOME (b)	$	9,102		$	14,832

INCOME (LOSS) PER COMMON SHARE
Basic
Continuing operations	$	0.20		$	0.55
Discontinued operations	$	(0.03	)	$	(0.21	)
	$	0.17		$	0.34
Diluted
Continuing operations (c)	$	0.18		$	0.53
Discontinued operations	$	(0.02	)	$	(0.18	)
	$	0.16		$	0.35

ADJUSTED NET OPERATING INCOME PER COMMON SHARE
Basic	$	0.20		$	0.39
Diluted (c)	$	0.19		$	0.39

Weighted-average common shares outstanding:
Basic		45,803,501			37,733,710
Diluted		59,659,075			44,638,969
Cash dividends declared per common share	$	0.01		$	0.05

Ratios:
Loss ratio		66.8	%		66.4	%
Expense ratio (d)		32.7	%		28.9	%
Combined ratio		99.5	%		95.3	%
Accident year loss ratio (e)		65.5	%		66.7	%

(a) Losses and loss adjustment expenses include benefits of $1.9 million and $4.0 million for deferred retroactive reinsurance gains (benefits) for the three months ended March 31, 2025 and 2024, respectively.
(b) See “Reconciliation of Non-GAAP Measures”.
(c) The outstanding Series A preferred shares were dilutive in both periods. Dividends on the Series A preferred shares were added back to the numerator of the calculation and common shares from an assumed conversion of the Series A preferred shares were included in the denominator.
(d) Calculated with a numerator comprising other operating expenses less gross fee income (in specific instances when the Company is not retaining insurance risk) included in “Other income” in our Condensed Consolidated Income Statements of $0.8 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively.
(e) Ratio of losses and loss adjustment expenses for the current accident year, excluding development on prior accident year reserves, to net earned premiums for the current year (excluding net earned premium adjustments on certain reinsurance treaties with reinstatement premiums associated with prior years).


James River Group Holdings, Ltd. and Subsidiaries Segment Results

EXCESS AND SURPLUS LINES

	Three Months Ended March 31,
*($ in thousands)*		2025			2024		% Change
Gross written premiums	$	213,243		$	213,691		(0.2	)%
Net written premiums	$	115,079		$	117,425		(2.0	)%

Net earned premiums	$	137,028		$	145,623		(5.9	)%
Losses and loss adjustment expenses excluding retroactive reinsurance		(88,804	)		(93,605	)	(5.1	)%
Underwriting expenses		(36,566	)		(33,527	)	9.1	%
Underwriting profit (a)	$	11,658		$	18,491		(37.0	)%

Ratios:
Loss ratio		64.8	%		64.3	%
Expense ratio		26.7	%		23.0	%
Combined ratio		91.5	%		87.3	%
Accident year loss ratio (b)		63.4	%		64.3	%

(a) See “Reconciliation of Non-GAAP Measures”.
(b) Ratio of losses and loss adjustment expenses for the current accident year, excluding development on prior accident year reserves, to net earned premiums for the current year (excluding net earned premium adjustments on certain reinsurance treaties with reinstatement premiums associated with prior years).


SPECIALTY ADMITTED INSURANCE

	Three Months Ended March 31,
*($ in thousands)*		2025			2024		% Change
Gross written premiums	$	81,118		$	117,119		(30.7	)%
Net written premiums	$	12,877		$	20,747		(37.9	)%

Net earned premiums	$	14,874		$	26,068		(42.9	)%
Losses and loss adjustment expenses		(12,649	)		(20,446	)	(38.1	)%
Underwriting expenses		(2,531	)		(4,836	)	(47.7	)%
Underwriting profit (a), (b)	$	(306	)	$	786		—

Ratios:
Loss ratio		85.0	%		78.4	%
Expense ratio		17.1	%		18.6	%
Combined ratio		102.1	%		97.0	%
Accident year loss ratio		85.9	%		80.1	%

(a) See “Reconciliation of Non-GAAP Measures”.
(b) Underwriting results for the three months ended March 31, 2025 and 2024 include gross fee income of $4.3 million and $5.3 million, respectively.

Underwriting Performance Ratios

The following table provides the underwriting performance ratios of the Company’s continuing operations inclusive of the business subject to retroactive reinsurance accounting. There is no economic impact to the Company over the life of a retroactive reinsurance contract so long as any additional losses subject to the contract are within the limit of the contract and the counterparty performs under the contract. Retroactive reinsurance accounting is not indicative of our current and ongoing operations. Management believes that providing loss ratios and combined ratios on business not subject to retroactive reinsurance accounting gives the users of our financial statements useful information in evaluating our current and ongoing operations.

	Three Months Ended March 31,
	2025		2024
Excess and Surplus Lines:
Loss Ratio	64.8	%	64.3	%
Impact of retroactive reinsurance	(1.4	)%	(2.7	)%
Loss Ratio including impact of retroactive reinsurance	63.4	%	61.6	%

Combined Ratio	91.5	%	87.3	%
Impact of retroactive reinsurance	(1.4	)%	(2.7	)%
Combined Ratio including impact of retroactive reinsurance	90.1	%	84.6	%

Consolidated:
Loss Ratio	66.8	%	66.4	%
Impact of retroactive reinsurance	(1.3	)%	(2.3	)%
Loss Ratio including impact of retroactive reinsurance	65.5	%	64.1	%

Combined Ratio	99.5	%	95.3	%
Impact of retroactive reinsurance	(1.3	)%	(2.3	)%
Combined Ratio including impact of retroactive reinsurance	98.2	%	93.0	%

RECONCILIATION OF NON-GAAP MEASURES

Underwriting Profit

The following table reconciles the underwriting profit by individual operating segment and for the entire Company to consolidated income from continuing operations before taxes. We believe that the disclosure of underwriting profit by individual segment and of the Company as a whole is useful to investors, analysts, rating agencies and other users of our financial information in evaluating our performance because our objective is to consistently earn underwriting profits. We evaluate the performance of our segments and allocate resources based primarily on underwriting profit. We define underwriting profit as net earned premiums and gross fee income (in specific instances when the Company is not retaining insurance risk) less losses and loss adjustment expenses on business from continuing operations not subject to retroactive reinsurance accounting and other operating expenses. Other operating expenses include the underwriting, acquisition, and insurance expenses of the operating segments and, for consolidated underwriting profit, the expenses of the Corporate and Other segment. Our definition of underwriting profit may not be comparable to that of other companies.

	Three Months Ended March 31,
*($ in thousands)*		2025			2024
Underwriting profit of the operating segments:
Excess and Surplus Lines	$	11,658		$	18,491
Specialty Admitted Insurance		(306	)		786
Total underwriting profit of operating segments		11,352			19,277
Other operating expenses of the Corporate and Other segment		(10,631	)		(11,137	)
Underwriting profit (a)		721			8,140
Losses and loss adjustment expenses – retroactive reinsurance		1,928			4,002
Net investment income		20,008			22,632
Net realized and unrealized gains on investments		(1,371	)		4,583
Other income (expense)		355			179
Interest expense		(5,541	)		(6,485	)
Amortization of intangible assets		(91	)		(91	)
Income from continuing operations before taxes	$	16,009		$	32,960

(a) Included in underwriting results for the three months ended March 31, 2025 and 2024 is gross fee income of $4.3 million and $5.3 million, respectively.

Adjusted Net Operating Income

We define adjusted net operating income as income available to common shareholders excluding a) income (loss) from discontinued operations, b) the impact of retroactive reinsurance accounting, c) net realized and unrealized gains (losses) on investments, d) certain non-operating expenses such as professional service fees related to certain lawsuits, various strategic initiatives, and the filing of registration statements for the offering of securities, e) severance costs associated with terminated employees, and f) deemed dividends recorded with the amendment of the Series A Preferred Shares. Adjusted net operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and our definition of adjusted net operating income may not be comparable to that of other companies.

Our income available to common shareholders reconciles to our adjusted net operating income as follows:

	Three Months Ended March 31,
		2025						2024
*($ in thousands)*	Income Before Taxes			Net Income			Income Before Taxes			Net Income
Income available to common shareholders	$	12,626		$	7,605		$	22,230		$	12,778
Loss from discontinued operations		1,414			1,414			8,105			8,105
Losses and loss adjustment expenses – retroactive reinsurance		(1,928	)		(1,523	)		(4,002	)		(3,162	)
Net realized and unrealized investment losses (gains)		1,371			1,083			(4,583	)		(3,621	)
Other expenses		563			523			732			732
Adjusted net operating income	$	14,046		$	9,102		$	22,482		$	14,832

Tangible Equity (per Share) and Tangible Common Equity (per Share)

We define tangible equity as shareholders’ equity plus mezzanine Series A Preferred Shares and the deferred retroactive reinsurance gain less goodwill and intangible assets, net of amortization. Tangible equity per share represents tangible equity divided by the sum of total common shares outstanding plus the common shares resulting from an assumed conversion of the outstanding Series A Preferred Shares into common shares (at the conversion price effective as of the last day of the applicable period). We define tangible common equity as tangible equity less mezzanine Series A Preferred Shares and tangible common equity per share represents tangible common equity divided by the total common shares outstanding. Our definitions of tangible equity and tangible equity per share may not be comparable to that of other companies, and they should not be viewed as a substitute for shareholders’ equity and shareholders’ equity per share calculated in accordance with GAAP. We use tangible equity and tangible common equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure. The following table reconciles shareholders’ equity to tangible equity and tangible common equity for March 31, 2025, December 31, 2024, March 31, 2024, and December 31, 2023.

	March 31, 2025		December 31, 2024		March 31, 2024		December 31, 2023
*($ in thousands, except for share data)*
Shareholders’ equity	$	484,480	$	460,915	$	539,537	$	534,621
Plus: Series A redeemable preferred shares		133,115		133,115		144,898		144,898
Plus: Deferred reinsurance gain		56,042		57,970		16,731		20,733
Less: Goodwill and intangible assets		214,190		214,281		214,553		214,644
Tangible equity	$	459,447	$	437,719	$	486,613	$	485,608
Less: Series A redeemable preferred shares		133,115		133,115		144,898		144,898
Tangible common equity	$	326,332	$	304,604	$	341,715	$	340,710

Common shares outstanding		45,892,706		45,644,318		37,822,340		37,641,563
Common shares from assumed conversion of Series A preferred shares		13,521,635		13,521,635		6,750,567		5,971,184
Common shares outstanding after assumed conversion of Series A preferred shares		59,414,341		59,165,953		44,572,907		43,612,747

Equity per share:
Shareholders’ equity	$	10.56	$	10.10	$	14.27	$	14.20
Tangible equity	$	7.73	$	7.40	$	10.92	$	11.13
Tangible common equity	$	7.11	$	6.67	$	9.03	$	9.05

_______________
¹ Adjusted net operating income, tangible common equity and adjusted net operating return on tangible common equity are non-GAAP financial measures. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.
² The Company closed the sale of JRG Reinsurance Company Ltd. on April 16, 2024. The full financials for our former Casualty Reinsurance segment have been classified to discontinued operations for all periods and includes the final adjustment determination to the closing purchase price pursuant to the Stock Purchase Agreement.
³ Tangible common equity is a non-GAAP financial measures. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.

The MIL Network –

May 6, 2025

MIL-OSI: Palomar Holdings, Inc. Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

LA JOLLA, Calif., May 05, 2025 (GLOBE NEWSWIRE) — Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $42.9 million, or $1.57 per diluted share, for the first quarter of 2025 compared to net income of $26.4 million, or $1.04 per diluted share, for the first quarter of 2024. Adjusted net income⁽¹⁾ was $51.3 million, or $1.87 per diluted share, for the first quarter of 2025 as compared to $27.8 million, or $1.09 per diluted share, for the first quarter of 2024.

First Quarter 2025 Highlights

Gross written premiums increased by 20.1% to $442.2 million compared to $368.1 million in the first quarter of 2024
Net income of $42.9 million compared to $26.4 million in the first quarter of 2024
Adjusted net income⁽¹⁾ increased 84.6% to $51.3 million compared to $27.8 million in the first quarter of 2024
Total loss ratio of 23.6% compared to 24.9% in the first quarter of 2024
Catastrophe loss ratio⁽¹⁾ of -0.3% compared to 3.1% in the first quarter of 2024
Combined ratio of 73.1% compared to 76.9% in the first quarter of 2024
Adjusted combined ratio⁽¹⁾ of 68.5% compared to 73.0%, in the first quarter of 2024
Adjusted combined ratio excluding catastrophe losses⁽¹⁾ of 68.9% compared to 69.8%, in the first quarter of 2024
Annualized return on equity of 22.6% compared to 21.7% in the first quarter of 2024
Annualized adjusted return on equity⁽¹⁾ of 27.0% compared to 22.9% in the first quarter of 2024

^{(1) See discussion of “Non-GAAP and Key Performance Indicators” below.}

Mac Armstrong, Chairman and Chief Executive Officer, commented, “I am very pleased with our strong start to 2025, as our first quarter saw sustained gross written premium growth and record adjusted net income. The quarter featured 85% adjusted net income growth, a 69% adjusted combined ratio, and a 27% adjusted ROE. Our results demonstrate our continued execution of the Palomar 2X strategic imperative as well as concerted efforts to build a leading specialty insurance franchise with a resilient and diversified portfolio.  Our 20% gross written premium growth was driven by both new products like Crop and Casualty as well as our balanced mix of residential and commercial property products. Importantly, our same-store premium growth rate was 37%⁽²⁾, demonstrating the strong underlying momentum that exists across our portfolio of specialty products.”  

Mr. Armstrong continued, “Beyond our financial performance, we remain focused on executing all our 2025 strategic imperatives. We continue to make investments across our organization, including the successful acquisition of Advanced AgProtection. This acquisition enhances the talent and operational scale of our Crop franchise and is expected to strengthen the near-term and long-term prospects of Palomar.” 

^{(2) Excludes the impact of lines of business exited or discontinued since prior year.}

Underwriting Results

Gross written premiums increased 20.1% to $442.2 million compared to $368.1 million in the first quarter of 2024, while net earned premiums increased 52.1% compared to the prior year’s first quarter.

Losses and loss adjustment expenses for the first quarter were $38.7 million, comprised of $39.2 million of attritional losses, offset by $0.5 million of favorable development on prior year catastrophe events. The loss ratio for the quarter was 23.6%, comprised of an attritional loss ratio of 23.9% and a catastrophe loss ratio⁽¹⁾ of -0.3% compared to a loss ratio of 24.9% during the same period last year comprised of an attritional loss ratio of 21.8% and a catastrophe loss ratio⁽¹⁾ of 3.1%.

Underwriting income⁽¹⁾ for the first quarter was $44.1 million resulting in a combined ratio of 73.1% compared to underwriting income of $25.0 million resulting in a combined ratio of 76.9% during the same period last year. The Company’s adjusted underwriting income⁽¹⁾ was $51.6 million resulting in an adjusted combined ratio⁽¹⁾ of 68.5% in the first quarter compared to adjusted underwriting income⁽¹⁾ of $29.2 million and an adjusted combined ratio⁽¹⁾ of 73.0% during the same period last year. The Company’s adjusted combined ratio excluding catastrophe losses⁽¹⁾ was 68.9% compared to 69.8% during the same period last year.

Investment Results
Net investment income increased by 69.1% to $12.1 million compared to $7.1 million in the prior year’s first quarter. The increase was primarily due to higher yields on invested assets and a higher average balance of investments held during the three months ended March 31, 2025 due to cash generated from operations and proceeds from the August 2024 public offering. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.09 years at March 31, 2025. Cash and invested assets totaled $1.2 billion at March 31, 2025. During the first quarter, the Company recorded $2.3 million net realized and unrealized losses related to its investment portfolio as compared to net realized and unrealized gains of $3.0 million during the same period last year.

Tax Rate
The effective tax rate for the three months ended March 31, 2025 was 20.1% compared to 23.2% for the three months ended March 31, 2024. For the current quarter, the Company’s income tax rate differed from the statutory rate due primarily to the tax impact of the permanent component of employee stock options offset by non-deductible executive compensation expense.

Stockholders’ Equity and Returns
Stockholders’ equity was $790.4 million at March 31, 2025, compared to $501.7 million at March 31, 2024. For the three months ended March 31, 2025, the Company’s annualized return on equity was 22.6% compared to 21.7% for the same period in the prior year while adjusted return on equity⁽¹⁾ was 27.0% compared to 22.9% for the same period in the prior year.

Full Year 2025 Outlook
For the full year 2025, the Company expects to achieve adjusted net income of $186 million to $200 million, an increase from the Company’s initial outlook of adjusted net income of $180 million to $192 million. This range includes an estimate of $8 million to $12 million of catastrophe losses for the remainder of the year.

Conference Call
As previously announced, Palomar will host a conference call Tuesday, May 6, 2025, to discuss its first quarter 2025 results at 12:00 p.m. (Eastern Time). The conference call can be accessed live by dialing 1-877-423-9813 or for international callers, 1-201-689-8573, and requesting to be joined to the Palomar First Quarter 2025 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on May 6, 2025, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13752911. The replay will be available until 11:59 p.m. (Eastern Time) on May 13, 2025.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at http://ir.palomarspecialty.com/. The online replay will remain available for a limited time beginning immediately following the call.

About Palomar Holdings, Inc.
Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar Specialty Reinsurance Company Bermuda Ltd. (“PSRE”), Palomar Insurance Agency, Inc., Palomar Excess and Surplus Insurance Company (“PESIC”), Palomar Underwriters Exchange Organization, Inc. (“PUEO”), First Indemnity of America Insurance Co. (“FIA”), and Palomar Crop Insurance Services, Inc. (“PCIS”). Palomar’s consolidated results also include Laulima Exchange (“Laulima”), a variable interest entity for which the Company is the primary beneficiary. Palomar is an innovative specialty insurer serving residential and commercial clients in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop. Palomar’s insurance subsidiaries, PSIC, PSRE, and PESIC, have a financial strength rating of “A” (Excellent) from A.M. Best. FIA carries an “A-” (Stable) rating from A.M. Best.

To learn more, visit PLMR.com.

Non-GAAP and Key Performance Indicators

Palomar discusses certain key performance indicators, described below, which provide useful information about the Company’s business and the operational factors underlying the Company’s financial performance.

Underwriting revenue is a non-GAAP financial measure defined as total revenue, excluding net investment income and net realized and unrealized gains and losses on investments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of total revenue calculated in accordance with GAAP to underwriting revenue.

Underwriting income is a non-GAAP financial measure defined as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, and interest expense. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to underwriting income.

Adjusted net income is a non-GAAP financial measure defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. Palomar calculates the tax impact only on adjustments which would be included in calculating the Company’s income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of net income calculated in accordance with GAAP to adjusted net income.

Annualized Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

Annualized adjusted return on equity is a non-GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity.

Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses, to net earned premiums.

Expense ratio, expressed as a percentage, is the ratio of acquisition and other underwriting expenses, net of commission and other income to net earned premiums.

Combined ratio is defined as the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Adjusted combined ratio is a non-GAAP financial measure defined as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio.

Diluted adjusted earnings per share is a non-GAAP financial measure defined as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings per share.

Catastrophe loss ratio is a non-GAAP financial measure defined as the ratio of catastrophe losses to net earned premiums. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of loss ratio calculated using unadjusted GAAP numbers to catastrophe loss ratio.

Adjusted combined ratio excluding catastrophe losses is a non-GAAP financial measure defined as adjusted combined ratio excluding the impact of catastrophe losses. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio excluding catastrophe losses.

Adjusted underwriting income is a non-GAAP financial measure defined as underwriting income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to adjusted underwriting income.

Tangible stockholders’ equity is a non-GAAP financial measure defined as stockholders’ equity less goodwill and intangible assets. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity.

Safe Harbor Statement
Palomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures and costs, unexpected results or delays in development and regulatory review, regulatory approval requirements, the frequency and severity of adverse events and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Contact
Media Inquiries
Lindsay Conner
1-551-206-6217
lconner@plmr.com

Investor Relations
Jamie Lillis
1-203-428-3223
investors@plmr.com

Source: Palomar Holdings, Inc.

Summary of Operating Results:

The following tables summarize the Company’s results for the three months ended March 31, 2025 and 2024:

	Three Months Ended
	March 31,
	2025			2024			Change			% Change
	($ in thousands, except per share data)
Gross written premiums	$	442,163		$	368,078		$	74,085			20.1	%
Ceded written premiums		(230,745	)		(228,171	)		(2,574	)		1.1	%
Net written premiums		211,418			139,907			71,511			51.1	%
Net earned premiums		164,070			107,866			56,204			52.1	%
Commission and other income		830			528			302			57.2	%
Total underwriting revenue ⁽¹⁾		164,900			108,394			56,506			52.1	%
Losses and loss adjustment expenses		38,743			26,837			11,906			44.4	%
Acquisition expenses, net of ceding commissions and fronting fees		46,359			31,798			14,561			45.8	%
Other underwriting expenses		35,733			24,804			10,929			44.1	%
Underwriting income ⁽¹⁾		44,065			24,955			19,110			76.6	%
Interest expense		(85	)		(740	)		655			(88.5	)%
Net investment income		12,071			7,139			4,932			69.1	%
Net realized and unrealized (losses) gains on investments		(2,338	)		3,002			(5,340	)		(177.9	)%
Income before income taxes		53,713			34,356			19,357			56.3	%
Income tax expense		10,791			7,974			2,817			35.3	%
Net income	$	42,922		$	26,382		$	16,540			62.7	%
Adjustments:
Net realized and unrealized losses (gains) on investments		2,338			(3,002	)		5,340			(177.9	)%
Expenses associated with transactions		2,088			—			2,088			—	%
Stock-based compensation expense		4,745			3,820			925			24.2	%
Amortization of intangibles		707			390			317			81.3	%
Tax impact		(1,494	)		204			(1,698	)		NM
Adjusted net income ⁽¹⁾	$	51,306		$	27,794		$	23,512			84.6	%
Key Financial and Operating Metrics
Annualized return on equity		22.6	%		21.7	%
Annualized adjusted return on equity ⁽¹⁾		27.0	%		22.9	%
Loss ratio		23.6	%		24.9	%
Expense ratio		49.5	%		52.0	%
Combined ratio		73.1	%		76.9	%
Adjusted combined ratio ⁽¹⁾		68.5	%		73.0	%
Diluted earnings per share	$	1.57		$	1.04
Diluted adjusted earnings per share ⁽¹⁾	$	1.87		$	1.09
Catastrophe losses	$	(542	)	$	3,359
Catastrophe loss ratio ⁽¹⁾		(0.3	)%		3.1	%
Adjusted combined ratio excluding catastrophe losses ⁽¹⁾		68.9	%		69.8	%
Adjusted underwriting income ⁽¹⁾	$	51,605		$	29,165		$	22,440			76.9	%
NM – not meaningful

^{(1) Indicates Non-GAAP financial measure – see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.}

Condensed Consolidated Balance sheets

Palomar Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)

(in thousands, except shares and par value data)

	March 31,			December 31,
	2025			2024
	(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $1,015,892 in 2025; $973,330 in 2024)	$	991,759		$	939,046
Equity securities, at fair value (cost: $44,462 in 2025; $32,987 in 2024)		44,367			40,529
Equity method investment		2,259			2,277
Other investments		11,031			5,863
Total investments		1,049,416			987,715
Cash and cash equivalents		119,312			80,438
Restricted cash		15			101
Accrued investment income		8,590			8,440
Premiums receivable		334,247			305,724
Deferred policy acquisition costs, net of ceding commissions and fronting fees		102,861			94,881
Reinsurance recoverable on paid losses and loss adjustment expenses		30,361			47,076
Reinsurance recoverable on unpaid losses and loss adjustment expenses		361,227			348,083
Ceded unearned premiums		295,275			276,237
Prepaid expenses and other assets		92,292			91,086
Deferred tax assets, net		5,596			8,768
Property and equipment, net		2,393			429
Goodwill and intangible assets, net		24,925			13,242
Total assets	$	2,426,510		$	2,262,220
Liabilities and stockholders’ equity
Liabilities:
Accounts payable and other accrued liabilities	$	65,405		$	70,079
Reserve for losses and loss adjustment expenses		543,889			503,382
Unearned premiums		813,462			741,692
Ceded premium payable		179,105			190,168
Funds held under reinsurance treaty		34,200			27,869
Total liabilities		1,636,061			1,533,190
Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of March 31, 2025 and December 31, 2024		—			—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,735,132 and 26,529,402 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		3			3
Additional paid-in capital		501,950			493,656
Accumulated other comprehensive loss		(16,642	)		(26,845	)
Retained earnings		305,138			262,216
Total stockholders’ equity		790,449			729,030
Total liabilities and stockholders’ equity	$	2,426,510		$	2,262,220

Condensed Consolidated Income Statement

Palomar Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Income and Comprehensive Income (loss) (Unaudited)

(in thousands, except shares and per share data)

	Three Months Ended
	March 31,
	2025			2024
Revenues:
Gross written premiums	$	442,163		$	368,078
Ceded written premiums		(230,745	)		(228,171	)
Net written premiums		211,418			139,907
Change in unearned premiums		(47,348	)		(32,041	)
Net earned premiums		164,070			107,866
Net investment income		12,071			7,139
Net realized and unrealized (losses) gains on investments		(2,338	)		3,002
Commission and other income		830			528
Total revenues		174,633			118,535
Expenses:
Losses and loss adjustment expenses		38,743			26,837
Acquisition expenses, net of ceding commissions and fronting fees		46,359			31,798
Other underwriting expenses		35,733			24,804
Interest expense		85			740
Total expenses		120,920			84,179
Income before income taxes		53,713			34,356
Income tax expense		10,791			7,974
Net income	$	42,922		$	26,382
Other comprehensive income, net:
Net unrealized gains (losses) on securities available for sale		10,203			(2,514	)
Net comprehensive income	$	53,125		$	23,868
Per Share Data:
Basic earnings per share	$	1.61		$	1.06
Diluted earnings per share	$	1.57		$	1.04

Weighted-average common shares outstanding:
Basic		26,658,106			24,862,367
Diluted		27,399,997			25,468,564

Underwriting Segment Data

The Company has a single reportable segment and offers specialty insurance products. Gross written premiums (GWP) by product, location and company are presented below:

	Three Months Ended March 31,
	2025					2024
	($ in thousands)
			% of					% of						%
	Amount		GWP			Amount		GWP			Change			Change
Product
Earthquake	$	130,245		29.5	%	$	105,729		28.7	%	$	24,516			23.2	%
Casualty		110,487		25.0	%		51,935		14.1	%		58,552			112.7	%
Inland Marine and Other Property		99,284		22.5	%		76,876		20.9	%		22,408			29.1	%
Fronting		53,927		12.2	%		94,831		25.8	%		(40,904	)		(43.1	)%
Crop		48,220		10.9	%		38,707		10.5	%		9,513			24.6	%
Total Gross Written Premiums	$	442,163		100.0	%	$	368,078		100.0	%	$	74,085			20.1	%

	Three Months Ended March 31,
	2025					2024
	($ in thousands)
			% of					% of
	Amount		GWP			Amount		GWP
State
California	$	139,723		31.6	%	$	157,217		42.7	%
Texas		44,991		10.2	%		40,795		11.1	%
Hawaii		20,358		4.6	%		12,516		3.4	%
Florida		18,641		4.2	%		13,924		3.8	%
Washington		15,669		3.5	%		12,002		3.3	%
New York		14,597		3.3	%		8,030		2.2	%
New Mexico		12,395		2.8	%		7,469		2.0	%
Colorado		12,168		2.8	%		9,605		2.6	%
Other		163,621		37.0	%		106,520		28.9	%
Total Gross Written Premiums	$	442,163		100.0	%	$	368,078		100.0	%

	Three Months Ended March 31,
	2025					2024
	($ in thousands)
			% of					% of
	Amount		GWP			Amount		GWP
Subsidiary
PSIC	$	230,917		52.2	%	$	222,657		60.5	%
PESIC		190,786		43.1	%		136,493		37.1	%
Laulima		16,037		3.7	%		8,928		2.4	%
FIA		4,423		1.0	%		—		—	%
Total Gross Written Premiums	$	442,163		100.0	%	$	368,078		100.0	%

Gross and net earned premiums

The table below shows the amount of premiums the Company earned on a gross and net basis and the Company’s net earned premiums as a percentage of gross earned premiums for each period presented:

	Three Months Ended
	March 31,
	2025			2024			Change			% Change
	($ in thousands)
Gross earned premiums	$	375,776		$	302,872		$	72,904			24.1	%
Ceded earned premiums		(211,706	)		(195,006	)		(16,700	)		8.6	%
Net earned premiums	$	164,070		$	107,866		$	56,204			52.1	%

Net earned premium ratio		43.7	%		35.6	%

Loss detail

	Three Months Ended
	March 31,
	2025			2024			Change			% Change
	($ in thousands)
Catastrophe losses	$	(542	)	$	3,359		$	(3,901	)		(116.1	)%
Non-catastrophe losses		39,285			23,478			15,807			67.3	%
Total losses and loss adjustment expenses	$	38,743		$	26,837		$	11,906			44.4	%

Catastrophe loss ratio		(0.3	)%		3.1	%
Non-catastrophe loss ratio		23.9	%		21.8	%
Total loss ratio		23.6	%		24.9	%

The following table represents a reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses:

	Three Months Ended March 31,
	2025			2024
	(in thousands)
Reserve for losses and LAE net of reinsurance recoverables at beginning of period	$	155,299		$	97,653
Add: Balance acquired from FIA⁽¹⁾		6,788			—
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year		43,059			26,333
Prior years		(4,316	)		504
Total incurred		38,743			26,837
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year		4,998			4,895
Prior years		13,170			9,432
Total payments		18,168			14,327
Reserve for losses and LAE net of reinsurance recoverables at end of period		182,662			110,163
Add: Reinsurance recoverables on unpaid losses and LAE at end of period		361,227			292,024
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period	$	543,889		$	402,187

^{(1) Represents amounts recognized in Reserve for losses and LAE net of reinsurance recoverables upon acquisition of FIA on 1/1/2025, in accordance with ASC 805, Business Combinations.}

Reconciliation of Non-GAAP Financial Measures

For the three months ended March 31, 2025 and 2024, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:

Underwriting revenue

	Three Months Ended
	March 31,
	2025			2024
	(in thousands)
Total revenue	$	174,633		$	118,535
Net investment income		(12,071	)		(7,139	)
Net realized and unrealized losses (gains) on investments		2,338			(3,002	)
Underwriting revenue	$	164,900		$	108,394

Underwriting income and adjusted underwriting income

	Three Months Ended
	March 31,
	2025			2024
	(in thousands)
Income before income taxes	$	53,713		$	34,356
Net investment income		(12,071	)		(7,139	)
Net realized and unrealized losses (gains) on investments		2,338			(3,002	)
Interest expense		85			740
Underwriting income	$	44,065		$	24,955
Expenses associated with transactions		2,088			—
Stock-based compensation expense		4,745			3,820
Amortization of intangibles		707			390
Adjusted underwriting income	$	51,605		$	29,165

Adjusted net income

	Three Months Ended
	March 31,
	2025			2024
	(in thousands)
Net income	$	42,922		$	26,382
Adjustments:
Net realized and unrealized losses (gains) on investments		2,338			(3,002	)
Expenses associated with transactions		2,088			—
Stock-based compensation expense		4,745			3,820
Amortization of intangibles		707			390
Tax impact		(1,494	)		204
Adjusted net income	$	51,306		$	27,794

Annualized adjusted return on equity

	Three Months Ended
	March 31,
	2025			2024
	(in thousands)

Annualized adjusted net income	$	205,224		$	111,176
Average stockholders’ equity	$	759,739		$	486,455
Annualized adjusted return on equity		27.0	%		22.9	%

Adjusted combined ratio

	Three Months Ended
	March 31,
	2025			2024
	(in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	120,005		$	82,911
Denominator: Net earned premiums	$	164,070		$	107,866
Combined ratio		73.1	%		76.9	%
Adjustments to numerator:
Expenses associated with transactions	$	(2,088	)	$	—
Stock-based compensation expense		(4,745	)		(3,820	)
Amortization of intangibles		(707	)		(390	)
Adjusted combined ratio		68.5	%		73.0	%

Diluted adjusted earnings per share

	Three Months Ended
	March 31,
	2025		2024
	(in thousands, except per share data)

Adjusted net income	$	51,306	$	27,794
Weighted-average common shares outstanding, diluted		27,399,997		25,468,564
Diluted adjusted earnings per share	$	1.87	$	1.09

Catastrophe loss ratio

	Three Months Ended
	March 31,
	2025			2024
	(in thousands)
Numerator: Losses and loss adjustment expenses	$	38,743		$	26,837
Denominator: Net earned premiums	$	164,070		$	107,866
Loss ratio		23.6	%		24.9	%

Numerator: Catastrophe losses	$	(542	)	$	3,359
Denominator: Net earned premiums	$	164,070		$	107,866
Catastrophe loss ratio		(0.3	)%		3.1	%

Adjusted combined ratio excluding catastrophe losses

	Three Months Ended
	March 31,
	2025			2024
	(in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	120,005		$	82,911
Denominator: Net earned premiums	$	164,070		$	107,866
Combined ratio		73.1	%		76.9	%
Adjustments to numerator:
Expenses associated with transactions	$	(2,088	)	$	—
Stock-based compensation expense		(4,745	)		(3,820	)
Amortization of intangibles		(707	)		(390	)
Catastrophe losses		542			(3,359	)
Adjusted combined ratio excluding catastrophe losses		68.9	%		69.8	%

Tangible Stockholders’ equity

	March 31,			December 31,
	2025			2024
	(in thousands)
Stockholders’ equity	$	790,449		$	729,030
Goodwill and intangible assets		(24,925	)		(13,242	)
Tangible stockholders’ equity	$	765,524		$	715,788

The MIL Network –

May 6, 2025

MIL-Evening Report: Labor has the chance to do something big in its second term. What policy reforms should it take on?

Source: The Conversation (Au and NZ) – By Yee-Fui Ng, Associate Professor, Faculty of Law, Monash University

Dan Breckwoldt/Shutterstock

Labor’s historic election victory means the Albanese government has a rare opportunity to pursue a big, bold reform agenda. The scale of the victory all but guarantees a third term in office after the next election in 2028, and entrenches Anthony Albanese’s authority as prime minister.

The government may opt to play it safe and limit its legislative agenda to the policies it took to the election. But if it was to chance its arm, which substantial changes should it pursue that could make a real difference to Australia’s long-term future?

We asked three experts to nominate the top policy priorities for a second Albanese government. Here are their responses.

Yee-Fui Ng

Associate Professor of Law, Monash University

Advancing Voice and Truth with Indigenous Australians should be a priority. This would build on the comprehensive rejection of the politics of division by the Australian people.

After the defeat of the Voice referendum on Indigenous constitutional recognition, the Coalition reignited the culture wars by criticising “woke” schools and Peter Dutton’s attack on Indigenous welcome to country at Anzac Day ceremonies.

But that negative message did not resonate with modern multicultural Australia, with its diverse population and identities. Anthony Albanese and Penny Wong’s victory speeches on Saturday night emphasised a kinder and more inclusive politics, where all Australians are recognised and no one is left behind.

The Labor government now has a strong mandate to take more significant action on Indigenous issues. Aboriginal people experience higher rates of incarceration, and significant disparities in health, education and employment compared to non-Indigenous Australians. Reform measures could be introduced through legislation, rather than by trying to change the constitution.

Closing the gap and revisiting Voice and Truth should be a priority for the second Albanese government.
ChameleonsEye/Shutterstock

Another pressing reform is bolder action on climate change. There is a growing urgency to tackle the effects of global warming, with an increase in environmental degradation and natural disasters globally.

Peter Dutton’s proposal to build seven nuclear reactors on Australian soil was comprehensively repudiated at the election.

European countries have harnessed the potential of regenerative energies, with the proliferation of wind farms and electric cars. Australia needs to lift its game and be on the same path towards a more sustainable future.

We are custodians of the Earth for future generations. It is incumbent on the Labor government to put forward a stronger agenda for a cleaner, more liveable planet.

Helen Hodgson

Professor at Curtin Law School and Curtin Business School, Curtin University

Second terms are often regarded as the best time strategically for governments to legislate difficult, but necessary reforms. It will be no different for the re-elected Albanese government, which will command a large majority in the new parliament.

Genuine tax reform should be a priority for Labor over the next three years, starting with a reduction in the 50% capital gains tax (CGT) discount and taxing superannuation withdrawals on high balance accounts.

While many people consider negative gearing to be the main concern in relation to investment in housing, reforming the CGT discount would be a more effective way to address increases in housing prices.

Negative gearing is only effective as a wealth-building strategy if there is a payoff at the end through the concessional taxation on the capital gain. Reducing the CGT discount would limit the appeal of negative gearing.

It would also flow through to other forms of investment that might not be delivering productivity gains, including some investments within family trusts.

Reforming CGT would revisit a contentious Labor policy that was roundly rejected at the 2019 election. But the housing crisis has deepened since then and many voters would now see an overhaul as necessary and timely.

The second recommendation I would make would be to address the inequalities that arise from tax exempt superannuation. Prior to 2007, withdrawals from super funds were taxed concessionally, but were not fully exempt.

In the retirement phase, members are required to withdraw a minimum amount from their superannuation accounts. But these days they do it totally tax-free.

The government should consider taxing these withdrawals, subject to a tax credit that reflects the tax paid by the fund prior to retirement phase. It would also be subject to the existing Seniors and Pensioners Tax Offset, which can reduce the amount of tax paid.

The rates of these credits could be tweaked to ensure that only those in the wealthiest 20% are affected. This would level the playing field so the tax payable by most retirees with modest superannuation balances would fall within these two concessions.

These two reforms would help reduce wealth inequality in Australia and raise funds for social spending, including increases in the JobSeeker payment.

Intifar Chowdhury

Lecturer in Government, Flinders University

Despite being one of the most pressing concerns for young Australians, mental health did not get much airtime during the election campaign.

This is striking given the evidence. According to the 2024 Australian Youth Barometer, 98% of young people aged 18–24 report feelings of anxiety or depression, and nearly 40% experience a diagnosable mental disorder in any given year. These aren’t fringe numbers, they are endemic.

Labor has pledged $1 billion to expand access to free public mental health care, with a welcome focus on young people. But funding more services is only part of the solution.

Experts argue that simply increasing the number of people given access to treatment and support won’t go far enough if those people only receive short term or fragmented care. A more meaningful step would be to double the number of free sessions available to people suffering complex mental health needs. Good care takes time, trust and continuity.

More fundamentally, the current policy focus remains too clinical. By contrast, the most effective models for youth care are more holistic. Many young people grappling with mental illness are also dealing with unstable housing, drug use, educational disruption, or loneliness.

Psychosocial supports such as social workers, peer mentors and housing liaisons, are essential to wraparound care. Yet, they remain underfunded.

The new Medicare Mental Health Centres and Youth Specialist Care Centres, which were promised by Labor during the campaign, should not just offer more of the same. Policymakers must rethink the model entirely: multidisciplinary, community-driven, culturally safe, and youth-informed.

They must also address why young men, who make up a majority of suicide deaths, are the least likely to seek help.

Mental health policy should be local, flexible, and expansive. Right now, it still feels centralised, cautious, and underdone.

Improving the mental health and wellbeing of all Australians, especially young people, would be a valuable way of ensuring the government doesn’t squander the time and space its been given by voters to do something truly valuable and reformative.

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

– ref. Labor has the chance to do something big in its second term. What policy reforms should it take on? – https://theconversation.com/labor-has-the-chance-to-do-something-big-in-its-second-term-what-policy-reforms-should-it-take-on-255849

MIL OSI Analysis – EveningReport.nz –

May 6, 2025
MIL-OSI Security: Boston City Councilor Pleads Guilty to Federal Public Corruption Charges

Source: Office of United States Attorneys

City Councilor for Boston’s District 7, Tania Fernandes Anderson, pocketed $7,000 cash from staff member’s city-funded bonus

BOSTON – Boston City Councilor Tania Fernandes Anderson pleaded guilty today in federal court in Boston to public corruption charges after receiving a $7,000 kickback from a staff member’s city funded bonus.

Tania Fernandes Anderson, 46, of Boston, pleaded guilty to one count of wire fraud and one count of theft concerning a program receiving federal funds. U.S. District Court Judge Indira Talwani scheduled sentencing for July 29, 2025. Fernandes Anderson was indicted in December 2024. Per the plea agreement, the government is recommending a sentence of one year and one day in prison to be followed by three years of supervised release and restitution in the amount of $13,000.

“Councilor Fernandes Anderson abused her position of trust for personal gain and turned a public checkbook into her own private slush fund. Her constituents deserve better than this. They deserve a city representative who respects the role of public service and does not use the power and position to line her own pockets,” said United States Attorney Leah B. Foley. “Her guilty plea today says what she refuses to admit in her media interviews: she broke the law, lied to the public, and used her office for her own personal gain. Ms. Fernandes Anderson leaves a legacy not of a selfless trailblazer, but one of fraud, greed, and deceit. The United States Attorney’s Office is committed to ensuring elected officials are held accountable for this kind of corruption and dishonesty.”

“Tania Fernandes Anderson used the city of Boston. She wielded her official powers for her own financial gain, and grossly betrayed the trust of the residents she was elected to serve,” said James Crowley, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Insidious corruption like this undermines people’s faith in, and expectations of, their government. Today’s conviction should reinforce, to both Boston’s politicos and the public, that the FBI remains committed to bringing to justice any elected official who deprives constituents of the honest services to which they are entitled.”

“The guilty plea of Tania Fernandes Anderson demonstrates IRS-CI’s commitment to identifying, investigating, and prosecuting all instances of public corruption, both in the Commonwealth and across New England,” said Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “Elected officials are held to a higher standard when they take an oath to serve their constituents, but Fernandes Anderson forsook this oath when she conspired to orchestrate a kickback scheme to enrich herself at the cost of the American taxpayers.”

Fernandes Anderson currently serves as City Councilor for Boston’s District 7, which includes Roxbury, Dorchester, Fenway and part of the South End. She was first elected to a two-year term in November 2021 and won re-election in November 2023.

In or about 2022, Fernandes Anderson hired two members of her immediate family as salaried employees of her City Councilor Staff. Because City Councilors are prohibited by law from hiring immediate family members to their paid staff, Fernandes Anderson was required to terminate their salaried employment in or about August 2022. Additionally, in May 2023, the Massachusetts State Ethics Commission notified Fernandes Anderson that it would be seeking a $5,000 civil penalty payment from her as a result of the violation.

In or about November 2022, Fernandes Anderson emailed a City of Boston employee regarding her hiring of Staff Member A – a relative of Fernandes Anderson who was not an immediate family member – as a salaried employee. In her email to the City of Boston employee, Fernandes Anderson falsely represented that she and Staff Member A were not related:

From in or about early to mid-2023, Fernandes Anderson was facing personal financial difficulty, which included the outstanding $5,000 civil penalty payment to the Ethics Commission. In or about early May 2023, Fernandes Anderson told Staff Member A that she would give them extra pay in the form of a large bonus, but that Staff Member A would have to give a portion of the bonus back to Fernandes Anderson. Staff Member A agreed to the arrangement with Fernandes Anderson.

On May 3, 2023, Fernandes Anderson emailed a City of Boston employee instructing them to process a $13,000 bonus for Staff Member A – more than twice the total bonuses given to her other staff – without disclosing the repayment arrangement. Staff Member A deposited the check on May 26, 2023 and, following Fernandes Anderson’s instructions, made three separate cash withdrawals over the following weeks in the amounts of $3,000; $3,000; and $4,000. Following the last withdrawal on June 9, 2023, the two met in a bathroom at Boston City Hall, where Staff Member A handed Fernandes Anderson $7,000 in cash.

According to the signed plea agreement, in 2022 and 2023, Fernandes Anderson used funds from her campaign account for her own personal enrichment, and not for campaign-related expenses. Additionally, for tax years 2021, 2022 and 2023, Fernandes Anderson filed fraudulent federal income tax returns with the IRS. Specifically, Fernandes Anderson omitted approximately $11,000 in income that she earned from a Massachusetts-based corporation from her 2021 tax return; willfully omitted campaign funds that she used for her own personal enrichment from her 2022 and 2023 tax returns; and willfully omitted the $7,000 kickback that she received from Staff Member A from her 2023 tax return.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of theft concerning programs receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

U.S. Attorney Foley, FBI Acting SAC Crowley and IRS Acting SAC Demeo made the announcement today. Assistant U.S. Attorneys John T. Mulcahy and Dustin Chao of the Public Corruption & Special Prosecutions Unit are prosecuting the case.

MIL Security OSI –

May 6, 2025
MIL-OSI Security: 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: United States Attorneys General 1

Credit Suisse Services AG Pleads Guilty to Tax Crimes, Signs a Separate Non-Prosecution Agreement Related to Conduct in Singapore, and Agrees to Pay More Than $510M

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.

In addition to the plea, Credit Suisse Services AG entered into a non-prosecution agreement (NPA) with the Justice Department’s Tax Division and U.S. Attorney’s Office for the Eastern District of Virginia in connection with U.S. Accounts booked at Credit Suisse AG Singapore. Under the NPA, Credit Suisse Services AG agreed to cooperate with the Justice Department in ongoing investigations and to pay significant monetary penalties for maintaining accounts in Singapore on behalf of U.S. taxpayers who were using offshore accounts to evade U.S. taxes and reporting requirements.

According to the Plea Agreement, NPA, and documents filed in court today: from Jan. 1, 2010, and continuing until about July 2021, Credit Suisse AG, which had ultra-high-net-worth and high-net-worth individual clients around the globe, conspired with employees, U.S. customers, and others to willfully aid U.S. customers in concealing their ownership and control of assets and funds held at the bank. This enabled those U.S. customers to evade their U.S. tax obligations in several ways, including by opening and maintaining undeclared offshore accounts for U.S. taxpayers at Credit Suisse AG, and providing a variety of offshore private banking services that assisted U.S. taxpayers in the concealment of their assets and income from the IRS and allowed for their continued failure to file FBARs. Among other fraudulent acts, bankers at Credit Suisse falsified records, processed fictitious donation paperwork, and serviced more than $1 billion in accounts without documentation of tax compliance. In doing so, Credit Suisse AG committed new crimes and breached its May 2014 plea agreement with the United States.

Between 2014 and June 2023, Credit Suisse AG Singapore held undeclared accounts for U.S. persons, which Credit Suisse AG Singapore knew or should have known were U.S., with total assets valued at over $2 billion. Credit Suisse AG Singapore failed to adequately identify the true beneficial owners of accounts and failed to conduct adequate inquiry about U.S. indicia in the accounts. In 2023, during the post-merger of UBS AG Singapore and Credit Suisse AG Singapore, UBS became aware of accounts held at Credit Suisse AG Singapore that appeared to be undeclared U.S. accounts. UBS froze some of the accounts, voluntarily disclosed information about those identified accounts to the Justice Department and cooperated by undertaking an investigation into the identified accounts.

Under today’s resolutions, Credit Suisse Services AG and, by extension, UBS AG, is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The agreements provide no protections for any individuals. Pursuant to the guilty plea and the NPA, Credit Suisse Services AG will pay a total of $510,608,909 in penalties, restitution, forfeiture, and fines.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney Erik S. Siebert for the Eastern District of Virginia, and Chief Guy Ficco of IRS Criminal Investigation (IRS-CI) made the announcement.

Special Agents from IRS-CI’s International Tax & Financial Crimes specialty group, a team based out of Washington, D.C. that is dedicated to uncovering international tax crimes, is investigating the case. The Justice Department’s Office of International Affairs provided critical assistance in obtaining important evidence.

Senior Litigation Counsels Nanette L. Davis and Mark F. Daly as well as Trial Attorney Marissa R. Brodney of the Tax Division, and Assistant U.S. Attorney Kimberly M. Shartar for the Eastern District of Virginia are prosecuting the case.

MIL Security OSI –

May 6, 2025

MIL-OSI USA: Malliotakis Rallies Support for Senior Tax Relief

Source: United States House of Representatives – Congresswoman Nicole Malliotakis (NY-11)

(STATEN ISLAND, NY) – Congresswoman Nicole Malliotakis was joined by Beth Finkel, State Director of AARP New York, Marie Santangelo, leader of all Staten Island AARP Chapters, and local senior citizens at the New Dorp Beach Friendship Club to rally support for her effort to reduce taxes on Social Security income for seniors. As a member of the House Ways & Means Committee, Malliotakis has played a key role in negotiations and is working to build momentum in Washington to pass this big, beautiful bill as part of the upcoming budget reconciliation tax package.

As tax package negotiations continue, Malliotakis is working to include key provisions of her legislation in the upcoming reconciliation bill including:

H.R. 1130, The Bonus Tax Relief for America’s Seniors Act, and would amend the Internal Revenue Code of 1986 to increase the additional bonus deduction for seniors age 65 and over from $1,950 to $5,000 for single filers, and from $3,100 to $10,000 for married couples. On average, this bipartisan legislation would reduce federal taxes by $2,100 for married couples filing jointly earning $85,000 per year.

Increasing the SALT Cap, the current $10,000 cap on State and Local Tax (SALT) deductions has disproportionately impacted seniors and middle-class families in high-tax states like New York. Malliotakis is fighting to increase the deduction to provide meaningful relief to hardworking taxpayers burdened by high city & state taxes, and to ensure the Alternative Minimum Tax does not return.

“As we work to finalize the details of our tax relief package, I remain hopeful that key provisions of my legislation will be included in our one big, beautiful bill to reduce the tax burden on our seniors and muddle-class families in our community,” said Rep. Nicole Malliotakis. “Too many seniors are being forced to stretch their retirement savings further than ever before. After a lifetime of hard work and paying taxes, they deserve to keep more of their Social Security and retirement income without Uncle Sam reaching into their pockets again.”

“This bill is a clear recognition of both the financial pressures facing older Americans and the additional cost of the taxation of Social Security benefits, the largest source of income for most seniors. It also reflects a bipartisan understanding that our tax code should better support those who have worked hard, earned benefits, and contributed to our economy throughout their lives. By allowing more older taxpayers to keep more of their income, this legislation would improve retirement security and support independence and dignity in aging,” said Nancy A. LeaMond, AARP Executive Vice President and Chief Advocacy and Engagement Officer.

Malliotakis is also sponsoring other measures to ease the burden on seniors, including:

H.R. 1129, The Tax Relief Unleashed for Seniors by Trump (TRUST) Act, would increase the amount of income that is tax exempt and index the threshold to inflation, allowing seniors to keep more of their benefits. Malliotakis’ legislation would double current exempt income from $25,000 to $50,000 for single filers and from $32,000 to $64,000 for married couples age 65 and older.

H.R. 2266, The Reducing Excessive Taxation and Inefficiencies by Reforming Elder Exemptions to Support Fairness, Inflation Relief, and Simpler Taxes Act (RETIREES FIRST Act) aimed at modernizing outdated Social Security tax thresholds to deliver tax relief to middle-class retirees.

Today, nearly 56% of retirees pay taxes on their Social Security benefits, compared to less than 10% in 1984 when the Social Security exemptions were first established. As this figure is projected to rise further, Malliotakis is taking action having introduced legislation to raise the provisional income thresholds to $34,000 for single filers and $68,000 for married filers—up from the current levels of $25,000 and $32,000, respectively. The legislation would exempt most middle-class retirees from paying taxes on their Social Security benefits by reducing their tax burden.

The income thresholds for taxation of benefits have remained unchanged since first established by Congress in 1984. At the time, less than 10 percent of beneficiaries paid federal income tax on their benefits, but because wages have increased, the proportion of beneficiaries who must pay federal income tax on benefits has risen over time.

LINKS TO LEGISLATIVE TEXTS

H.R. 1130 HERE

H.R. 1129 HERE

H.R. 2266 HERE

In addition to reducing the tax burden on America’s seniors, Malliotakis as a member of the House Committee on Ways & Means and is acutely focused on increasing the State and Local Tax Deduction (SALT), and increasing domestic production by incentivizing companies to bring their manufacturing facilities and supply chains home.

Watch The Press Conference HERE.

MIL OSI USA News –

May 6, 2025

MIL-OSI USA: Smucker, Davids Introduce Student Loan Tax Elimination Act

Source: United States House of Representatives – Representative Lloyd Smucker (PA-16)

WASHINGTON—Reps. Lloyd Smucker (PA-11) and Sharice Davids (KS-03) have introduced the Student Loan Tax Elimination Act. The legislation would eliminate a hidden tax on federal student loans, which adds unnecessary debt to student loan borrowers.

“Students and parents should fully understand the terms and costs associated with borrowing for their education. Unfortunately, federal loan programs have hidden fees which negatively impact students. Loan origination fees are a hidden tax which ultimately inflate costs for students. Eliminating this fee would be a step in the direction of lowering the cost of higher education for students across the nation.” said Representative Smucker (PA-11).

“Students working hard to invest in their future through education shouldn’t be weighed down by hidden administrative fees. With the rising cost of higher education already making it harder for graduates to buy a home, launch a business, or contribute fully to our economy, this bill takes a meaningful step toward reducing that burden. By eliminating certain unnecessary and costly fees, we’re helping ensure that a college degree leads to opportunity — not obstacles.” – Representative Sharice Davids (KS-03)

Background:

As a result of legislation passed in 2010, all federal student loans issued through the U.S. Department of Education were taken out of the hands of private lenders and issued directly by the Department. Despite the elimination of private lenders in the federal loan process, students are still being charged administration fees on student loans. This hidden tax adds billions of dollars to student debt every year.

The Student Loan Tax Elimination Act would eliminate origination fees for federal student loans, which cost nearly $6.5 billion over a four year period, according to a report from the National Association of Student Financial Aid Administrators.

# # #

MIL OSI USA News –

May 6, 2025
MIL-OSI USA: Grassley Helps Restore Three CBP Whistleblowers’ Careers after Nearly a Decade of Retaliation

US Senate News:

Source: United States Senator for Iowa Chuck Grassley

WASHINGTON – Sen. Chuck Grassley (R-Iowa) has successfully secured promotions for three Customs and Border Protection (CBP) whistleblowers, along with full compensation for the more than seven years of retaliation they’ve suffered.

Whistleblowers Fred Wynn, Mike Taylor and Mark Jones have been elevated to new supervisory roles at CBP, reversing their prior demotion and reduction in pay. The whistleblowers will receive back pay and retirement benefits to cover for nearly a decade of financial losses inflicted by the agency. The agency is also reauthorizing Jones and Taylors’ law enforcement credentials, badges and firearms, after they were revoked by the Biden administration in 2023 for blowing the whistle on CBP’s failure to comply with the DNA Fingerprint Act of 2005.

These actions fulfill Grassley’s explicit requests on behalf of the whistleblowers, and fully unwind years of CBP retaliation.

“Today is a victory for Fred Wynn, Mike Taylor, Mark Jones and the rule of law. At long last, these patriotic men will be made whole again,” Grassley said. “I’m very grateful to the leadership at the Department of Homeland Security and Customs and Border Protection, who worked with me to bring these whistleblowers back to their rightful roles. Once again, the Trump administration has shown its respect for people that blow the whistle on wrongdoing. I hope that continues, because when you’re at the top of the bureaucracy, you don’t always know what goes on below. That’s precisely why we need brave whistleblowers like these three.”

“These men had the courage and patriotism to speak up against the Biden Administration’s deliberate efforts to destroy our national security. They paid an unjust price for doing so — betrayed by an administration that protected lawbreakers and punished law enforcement,” said Homeland Security Secretary Kristi Noem. “Under President Trump’s leadership, we are restoring what is right and true and getting these patriots back to doing the work they love.”

Background:

The DNA Fingerprint Act of 2005 requires federal law enforcement to collect DNA from every individual CBP arrests, charges, convicts or detains. Wynn, Taylor and Jones were sidelined for sounding the alarm on the agency’s consistent failure to collect all legally-required DNA samples. In 2023, data showed CBP was collecting DNA samples from fewer than 40 percent of the illegal immigrants entering under the Biden-Harris administration.

Since 2018, Grassley has urged CBP to halt its retaliation of these three whistleblowers and follow the law. He highlighted their case at a congressional roundtable last year, where Wynn, Taylor and Jones addressed senators in a panel discussion on the national security implications of CBP’s refusal to collect DNA samples.

During last week’s hearing to consider President Trump’s nominee to be CBP Commissioner, Grassley again voiced his request for these whistleblowers to be “100% redirected from the punishment they had by the previous administration.” Days later, CBP agreed to promote Wynn, Taylor and Jones.

This is the second agreement Grassley has brokered this year on behalf of whistleblowers. In March, the IRS promoted whistleblowers Gary Shapley and Joseph Ziegler, at Grassley’s urging.

-30-

MIL OSI USA News –

May 6, 2025
MIL-OSI USA: Oregon DEQ to reopen Clean Vehicle Rebate Program on May 22
Source: US State of Oregon

he wait is over! The Oregon Department of Environmental Quality today announced it will reopen the popular Oregon Clean Vehicle Rebate Program on Thursday, May 22. In even more exciting news, the program will remain open longer this year due to funds awarded to DEQ last summer through the Climate Equity and Resilience Through Action grant. Any vehicles purchased or leased before May 22 are not eligible to apply for the rebate.

DEQ offers two rebates*:
- Standard Rebate (Open to all Oregon residents, businesses, non-profits and government agencies): Up to $2,500 for the purchase or lease of a new battery electric or plug-in hybrid electric vehicle, or a new zero-emission motorcycle selected from the Standard Rebate Eligible Vehicle List.
- Charge Ahead Rebate (Open to low- and moderate-income households and nonprofit, low-income service providers):
  - The Used Charge Ahead Rebate: $5,000 for the purchase or lease of an eligible used battery electric or plug-in hybrid electric vehicle.
  - The New Charge Ahead Rebate: Up to $7,500 for the purchase or lease of an eligible new battery electric or plug-in hybrid electric vehicle.
  - Select vehicle options from the Charge Ahead Eligible Vehicle List.
*You may only apply for one rebate.

To determine Charge Ahead Rebate eligibility for individuals, check DEQ’s Charge Ahead Rebate: Income Eligibility web page. Charge Ahead Rebate applicants can prequalify by completing the prequalification application to receive a voucher to be used at participating dealerships.

“The Oregon Clean Vehicle Rebate Program is enormously popular,” said DEQ Air Quality Transportation Section Manager Rachel Sakata. “By helping to offset the cost of an electric vehicle, it continues to be one of the best ways many individuals and families can gain access to cleaner transportation and improve air quality across the state.”

The Oregon Clean Vehicle Rebate Program receives at least $12 million annually, or 45% of the state’s Vehicle Privilege Tax. Last year, overwhelming demand closed the program after just two months. However, the $31 million CERTA grant will expand the Charge Ahead Rebate option, giving more low- and moderate-income households access to savings. DEQ will monitor rebates and is required to suspend the program once funds are depleted. The agency will announce the closure date at least 30 days in advance.

Applicants have six months from date of purchase or lease to apply for a rebate. However, people are encouraged to apply early and track available rebate funding online. If approved applications are submitted after funds are depleted, those applicants will be placed on a waitlist for payment in early spring 2026.

Electric vehicles purchased or leased before May 22, 2025 will not receive state rebates and will not be placed on a waiting list, but they may still qualify for federal tax credits.

A variety of state agencies and public electric utilities offer savings on electric vehicle purchases, leases or charging infrastructure. The Go Electric Oregon website lists available incentives and provides helpful information for potential electric vehicle buyers and lessees.

DEQ’s Oregon Clean Vehicle Rebate Program web page has all the details. Please visit the EV Rebate Contact web page to ask questions. You may register at OCVRP Sign Up to receive program updates by email.

MIL OSI USA News –
May 6, 2025

MIL-OSI: RUBIS: Q1 2025 trading update – Continued strong operating performance of Rubis’ diversified business model

Source: GlobeNewswire (MIL-OSI)

Paris, 5 May 2025, 5:45pm

Energy Distribution
- Retail & Marketing – Solid volume growth at +4%, gross margin at €218m (+4%)
  - Strong momentum of the retail business both in Africa and in the Caribbean region
  - Bitumen activity performing well in Togo and South Africa – Nigeria volume growth resumes
- Support & Services – Revenue up 2% at €266m
  - Lower bitumen trading margins as a result of higher in-house activity
Renewable Electricity Production
- Secured portfolio up 22% vs March 2024 at 1.1 GWp
No direct impact of trade tariffs on the business
2025 Guidance reaffirmed

SALES BREAKDOWN BY SEGMENT AND BY REGION

(in €m)	Q1 2025	Q1 2024	Q1 2025 vs Q1 2024
Energy Distribution	1,687	1,652	+2%
Retail & Marketing	1,420	1,392	+2%
Europe	215	209	+3%
Caribbean	584	590	-1%
Africa	621	593	+5%
Support & Services	266	260	+2%
Renewable Electricity Production	11	8	+28%
TOTAL	1,697	1,660	+2%

On 5 May 2025, Clarisse Gobin-Swiecznik, Managing Partner, commented on the Q1 2025 activity: “Our position as distributor of energy and mobility solutions, leader in a diversity of regions, has once again proved successful. Q1 demonstrates Rubis’ resilience and ability to deliver strong performance in a challenging global environment. Our Energy Distribution businesses achieved robust growth across all regions while Photosol delivered according to plan. Looking ahead, we remain confident in our 2025 guidance, supported by the strength and growth potential of our diverse businesses”

HIGHLIGHTS

No direct impact of trade tariffs on the business

None of Rubis’ businesses is directly concerned by the trade tariffs turmoil ongoing. The Group does not operate in the US, nor in China.

New geographical development: Acquisition of Soida in Angola

In March 2025, Rubis Énergie acquired 60% of the share capital of Soida (Sociedade Industrial de Derivados Asfálticos), adding to its existing share of 35% acquired at the end of 2022 and leading to a final stake in the Company of 95%. Soida distributes bitumen in Angola with a market share well over 50% and extending further bitumen geographical footprint.

Publication of first Sustainability Statement (CSRD) including strategy and updated climate ambitions for 2030

Rubis’ first Sustainability Statement (CSRD format) was published on 28 April covering among others: Climate change – Update on decarbonisation targets and financial implications. Beyond regulatory requirements, the Sustainability Statement provides a solid foundation for shaping the Group’s Think Tomorrow 2026–2030 Roadmap, which will integrate business-specific priorities and be co-constructed with the operating entities.

Q1 2025 COMMERCIAL PERFORMANCE

1. ENERGY DISTRIBUTION – RETAIL & MARKETING

In Q1 2025, volume continued to increase across the board. Margins also saw an upward trend, with some variability.

Volume sold and gross margin by product in Q1 2025

	Volume (in ‘000 m³)			Gross margin (in €m)
(in ‘000 m³)	Q1 2025	Q1 2024	Q1 2025 vs Q1 2024	Q1 2025	Q1 2024	Q1 2025 vs Q1 2024
LPG	346	343	1%	83	84	-0%
Fuel	1,071	1,048	2%	113	103	10%
Bitumen	135	100	35%	21	23	-6%
TOTAL	1,552	1,491	4%	218	209	4%

Volume sold and gross margin by region in Q1 2025

	Volume (in ‘000 m³)			Gross margin (in €m)
	Q1 2025	Q1 2024	Q1 2025 vs Q1 2024	Q1 2025	Q1 2024	Q1 2025 vs Q1 2024
Europe	255	245	4%	65	62	4%
Caribbean	584	573	2%	85	80	7%
Africa	712	674	6%	68	67	1%
TOTAL	1,552	1,491	4%	218	209	4%

LPG volume was slightly up. The main drivers for growth over the quarter were bulk in France, where sales teams were particularly dynamic and won several new contracts. Autogas in France also saw a strong performance, as a result of several contracts won with service stations in 2024. Market share in France continued to increase, benefiting from a high level of customer engagement. These strong dynamics were partially offset by lower volume in Morocco where the market faced a product shortage after difficult weather conditions kept the supply vessels from unloading the product. Gross margin remained stable.

As regards fuel:
- in the retail business (representing 49% of fuel volume and 52% of fuel gross margin in Q1 2025) volume grew by 4% vs Q1 2024. Gross margin increased by 14%, driven by:
  - increasing volume in East Africa, with Zambia, Uganda and Rwanda showing significant growth rates thanks to rebranded service stations,
  - Madagascar also saw significant volume and margin growth year over year, thanks to a well-maintained network and improved logistics, enabling the Company to increase its market share,
  - activity continued to be very dynamic in the Caribbean, with Jamaica, Barbados, and Guyana still performing well. The situation in Haiti remains unchanged with half of the service stations closed at the end of March 2025;
- the Commercial and Industrial business (C&I, representing 28% of fuel volume and 24% of fuel gross margin in Q1 2025) increased by 2% in volume and decreased by 1% in gross margin over the period, led by Kenya, Zambia, Guyana, Suriname and Barbados;
- the aviation segment (representing 20% of fuel volume and 19% of fuel gross margin in Q1 2025) saw increased margins in Q1 2025 at +6% despite a slight volume decline of 2%. This performance was mainly driven by the Eastern Caribbean region, where some airlines decreased their frequencies, and the pricing environment was favourable.
Bitumen volume was up 35% yoy, mainly driven by Nigeria where Rubis’ supply situation was particularly strong. Togo and South Africa also saw strong volume increase, with improving margins. Gross margin showed a 6% decrease yoy and is the result of a different product mix in Nigeria.

2. ENERGY DISTRIBUTION – SUPPORT & SERVICES

The Support & Services activity recorded €266m of revenue (+2% yoy) in Q1 2025.

Volume excluding crude deliveries was up 5% and margins were down 4% vs Q1 2024.

In the Caribbean, trading activity was dynamic with +5% in volume.

In Africa, bitumen shipping activity was at a level comparable to that of Q1 2024 (volume +1%) with more numerous but shorter routes.

SARA refinery and logistics operations present specific business models with stable earnings profile.

3. RENEWABLE ELECTRICITY PRODUCTION – PHOTOSOL

Operational data	Q1 2025	Q1 2024	Q1 2025 vs Q1 2024
Assets in operation (MWp)	535	450	+19%
Electricity production (GWh)	102	81	+26%
Sales (in €m)	11	8	+28%

Over Q1 2025, Photosol commissionned 12MWp, leading its assets in operation to grow by 19% yoy at 535 MWp. The secured portfolio increased by 22% to 1.1 GWp with 53 MWp new projects secured over Q1 2025. The pipeline reached 5.7 GWp (+21% yoy). Revenue for Q1 2025 stood at €11m, up 28% vs Q1 2024, benefitting from portfolio expansion and a higher load factor.

In April 2025, Alix Lajoie became President and Thomas Aubagnac became CEO of Photosol, as planned. Both were previously Deputy CEOs since 2023. The two founders, David Guinard and Robin Ucelli, remain shareholders and Board members of Photosol.

OUTLOOK – FY 2025 GUIDANCE REAFFIRMED

The working assumptions used to establish the 2025 guidance remain unchanged.

Group EBITDA is expected at €710m to €760m in 2025 (assuming IAS 29 – hyperinflation impact unchanged versus 2024).

Reminder: Photosol 2027 ambitions:

Secured portfolio⁽¹⁾ above 2.5 GWp
Consolidated EBITDA⁽²⁾: €50-55m, of which c.10% EBITDA contribution from farm-down initiatives
- Power EBITDA⁽³⁾: €80-85m
- Secured EBITDA⁽⁴⁾: €150-200m

NON-FINANCIAL RATING

MSCI: AA (reiterated in Dec-24)
Sustainalytics: 29.2 (from 30.7 previously)
ISS ESG: C (from C- previously)
CDP: B (reiterated in Feb-25)

Webcast for investors and analysts
Date: 5 May 2024, 6:00pm
Link to register: https://channel.royalcast.com/rubisen/#!/rubisen/20250505_1
Participants from Rubis:

Marc Jacquot, CFO
Clémence Mignot-Dupeyrot, Head of IR

Upcoming events
Shareholders’ Meeting: 12 June 2025
Q2 & H1 2025 results: 9 September 2025
Q3 & 9M 2025 trading update: 4 November 2025
Q4 & FY 2025 results: 12 March 2026

(1) Includes ready-to-build, under construction and in operation capacities.
(2) EBITDA reported in Rubis Group consolidated financial statements.
(3) Aggregated EBITDA from operating PV through electricity sales.
(4) Illustrative EBITDA coming from secured portfolio.

Press Contact

Analyst Contact

RUBIS – Communication department

RUBIS – Clémence Mignot-Dupeyrot, Head of IR

Tel: +33 (0)1 44 17 95 95

presse@rubis.fr

Tel: +33 (0)1 45 01 87 44

investors@rubis.fr

Attachment

RUBIS: Q1 2025 trading update – Continued strong operating performance of Rubis’ diversified business model

The MIL Network –

May 6, 2025

MIL-OSI USA: News 05/5/2025 Here’s How Republicans Are Strengthening the Economy

US Senate News:

Source: United States Senator Marsha Blackburn (R-Tenn)

Last week marked President Trump’s 100th day in office. And in that short amount of time, the Trump administration has made incredible progress to Make America Great Again—especially by strengthening our economy.

In the last 100 days, President Trump has slashed Democrats’ far-left regulations, unleashed American energy production, and secured trillions of dollars in investments to support American workers, develop new technologies, and spur economic growth, including in Tennessee.

The candy company Charms is investing nearly $100 million to expand its production plant and distribution center in Covington. Mt. Juliet was included in a $700 million nationwide investment by Schneider Electric to boost domestic manufacturing and energy infrastructure. And the electronics company ABB is investing $80 million in Selmer to expand manufacturing and create new jobs.

Last week, I had the honor of joining President Trump at the White House as he welcomed the CEOs of companies that are making new investments in America, especially in light of his executive order establishing the United States Investment Accelerator. This order helps to facilitate new investments in our country by reducing regulations and making it easier to do business in America.

In the Senate, I’ve introduced the Investment Accelerator Act, which would permanently establish President Trump’s new program. Among its provisions, this legislation would speed up permitting, increase coordination across federal agencies to work with companies, encourage research collaboration with national labs, and help state governments eliminate burdensome regulations. Altogether, this legislation would ensure that America will long benefit from President Trump’s Investment Accelerator and help usher in a new Golden Age of America, which is already underway.

In April, our economy added 177,000 jobs, beating expectations by more than 40,000 jobs with major gains in transportation, warehousing, and health care. The month before, falling energy costs pushed annual inflation down to 2.4 percent, tying the lowest inflation rate since President Biden took office in 2021.

To ensure that Americans have more money in their pocketbook, President Trump and Republicans are also working hard to extend the President’s 2017 tax cuts. These tax cuts delivered historic growth for the economy, but if we fail to extend them, families and businesses will face a $4 trillion tax hike. That’s why, earlier this month, Republicans in Congress passed a budget resolution that will enable us to extend these expiring tax provisions.

At the same time, we’re advancing other tax priorities championed by President Trump, including his proposal to cut taxes on Social Security. By taxing Social Security, the federal government is taxing a tax. This makes no sense: Social Security recipients have already paid into the program with decades of tax payments, so they deserve the full sum of their Social Security income. However, nearly 56 percent of retirees pay taxes on their Social Security benefits because Bidenflation pushed seniors’ benefits into higher and higher income brackets.

To address this problem, I’ve introduced the RETIREES FIRST Act. This legislation would lower the tax burden on Social Security benefits for seniors by raising the provisional income threshold from $25,000 to $34,000 for single filers and $32,000 to $68,000 for married filers. In effect, this legislation would eliminate income taxes for many of our nation’s retirees, leaving them with more money in their paychecks.

As we work on these tax provisions and more, I look forward to working with President Trump to deliver relief for hard working Tennesseans. America is the greatest nation on earth, and with determined leadership back in the White House, we can make our economy stronger than ever before.

MIL OSI USA News –

May 6, 2025

MIL-OSI: Coface : Coface records a good start to the year with net income of €62.1m, for an RoATE of 12.7%

Source: GlobeNewswire (MIL-OSI)

Coface records a good start to the year with net income of €62.1m, for an RoATE of 12.7%

Paris, 5 May 2025 – 17.35

Turnover: €473m, up 2.0% at constant FX and perimeter
- Trade credit insurance revenue up 1.2%; client activity also increased by 1.2%
- Client retention back up at near-record (95.0%); pricing remained negative (-1.3%) in line with historical trends
- Business information growing again double-digit (+14.7% at constant FX, +18.4% at current FX). Debt collection up +14.8%; factoring was down slightly by -0.7%
Net loss ratio at 39.1%, up by 3.3 ppts; net combined ratio at 68.7%, up by 5.6 ppts and stable compared to Q4-24
- Gross loss ratio at 38.7%, up by 5.5 ppts with higher opening year reserving and reserve releases stable at a high level year on year
- Net cost ratio increased 2.2 ppts to 29.5%, reflecting continued investments partially offset by better product mix
Net income (group share) at €62.1m, down by -9.2% compared to Q1-24
Annualised RoATE¹at 12.7%

Unless otherwise indicated, change comparisons refer to the results as at 31 March 2024

Xavier Durand, Coface’s Chief Executive Officer, commented:
“With a net income of €62.1m and an RoATE of 12.7%, Coface posted another quarter of solid results in a highly volatile environment. Shifting US policy on international trade is creating a high level of uncertainty, although its potential consequences are not yet visible. In this complicated environment for corporates, Coface remains very close to its clients and is maintaining a highly preventative stance in its risk portfolio which is well diversified across regions and sectors.
In the medium term, depending on their actual implementation and level, the announced tariffs may have a negative impact on global trade volumes. We may also see prices increase in the United States and an adverse impact on certain industrial sectors and regions, likely leading to higher numbers of business failures.
Thanks to its leading infrastructure, the quality of its information and its teams of internationally recognised experts, Coface is well positioned to support its clients in managing their risks.
Against this backdrop, our strategy to invest in better understanding short-term risks and in the strengthening of our range of services (Business Information, Debt Collection) is more relevant than ever and resolutely pursued.”

Key figures at 31 March 2025

The Board of Directors of COFACE SA examined the summary consolidated financial statements for the first three months (non-audited) during its meeting on 5 May 2025. The Audit Committee at its meeting on 2 May 2025 also previously reviewed them.

Income statement items in €m	Q1-24	Q1-25	Variation	% ex. FX*
Insurance revenue	378.6	382.9	+1.1%	+1.2%
Other revenue	85.0	90.3	+6.2%	+5.5%
REVENUE	463.7	473.2	+2.1%	+2.0%
UNDERWRITING INCOME/LOSS AFTER REINSURANCE	100.3	85.4	(14.9)%	(15.4)%
Investment income, net of management expenses, excluding finance costs	17.9	10.4	(42.0)%	(44.2)%
Insurance Finance Expenses	(11.4)	(4.1)	(63.6)%	(61.6)%
CURRENT OPERATING INCOME	106.8	91.6	(14.2)%	(15.3)%
Other operating income / expenses	(0.1)	(0.4)	+438.8%	+439.8%
OPERATING INCOME	106.8	91.2	(14.5)%	(15.6)%
NET INCOME (GROUP SHARE)	68.4	62.1	(9.2)%	(10.5)%

Key ratios	Q1-24	Q1-25	Variation
Loss ratio net of reinsurance	35.8%	39.1%	3.4	ppts
Cost ratio net of reinsurance	27.3%	29.5%	2.2	ppts
COMBINED RATIO NET OF REINSURANCE	63.1%	68.7%	5.6	ppts

Balance sheet items in €m	2024	Q1-25	Variation
Total equity (group share)	2,193.6	2,234.0	+1.8%

* Also excludes scope impact

1. Turnover

Coface recorded consolidated turnover of €473.2m, up +2.0% at constant FX and perimeter compared to Q1-24. As reported (at current FX and perimeter), turnover rose +2.1%.

Revenues from insurance activities (including Bonding and Single Risk) increased by +1.2% at constant FX and perimeter. Client retention returned to a level close to its record high at 95.0% in a still competitive market. New business totalled €37m, stable compared with Q1-24. This was driven by an increase in demand and growth investments, particularly in the mid-market segment.

Growth in client activity was positive at 1.2%, marking a further improvement compared to the already positive previous quarter. However, this level reflects the economic environment that prevailed before the tariff announcements by the United States. The price effect remained negative at -1.3% in Q1-25, in line with last year and long-term trends.

Turnover from non-insurance activities was up +7.5% compared to Q1-24. However, not all business lines enjoyed the same momentum. Factoring turnover fell by -0.7%, with Germany and Poland recording identical performance. Business Information turnover continued to grow, rising +14.8% (and +18.4% on a reported basis). Fee and commission income (debt collection commissions) increased +14.8% due to the increase in claims to be collected. Commissions were up +4.0%, exceeding growth in premium income.

Total revenue – in €m (by country of invoicing)	Q1-24	Q1-25	Variation	% ex. FX²
Northern Europe	97.8	97.0	(0.8)%	(0.8)%
Western Europe	91.7	96.0	+4.7%	+1.9%
Central & Eastern Europe	45.1	42.3	(6.3)%	(6.9)%
Mediterranean & Africa	138.9	143.4	+3.2%	+5.1%
North America	42.6	43.5	+2.0%	+1.5%
Latin America	18.6	20.4	+9.7%	+16.0%
Asia-Pacific	28.9	30.7	+6.2%	+2.7%
Total Group	463.7	473.2	+2.1%	+2.0%

In Northern Europe, turnover was down by -0.8% at constant and current FX. The region continues to suffer from the weakness of the German economy. This slight decline was partially offset by growth in non-insurance activities. Factoring turnover was down -0.7% but services were up +17.8%.

In Western Europe, turnover increased +1.9% at constant FX (+4.7% at current FX). The loss of several significant contracts was more than offset by growth in service activities.

In Central and Eastern Europe, turnover fell -6.9% at constant FX (-6.3% at current FX) due to client activity, which continued to drag down credit insurance, and a significant contract that is now included in another region.

In the Mediterranean and Africa region, which is driven by Italy and Spain, turnover rose +5.1% at constant FX and +3.2% at current FX on the back of robust sales in credit insurance and services and a generally stronger economic environment.

In North America, turnover rose by +1.5% at constant FX and +2.0% on a reported basis. The region benefited from a slight improvement in client activity and higher retention.

In Latin America, turnover increased +16.0% at constant FX and +9.7% at current FX. The region is benefiting from continued high inflation, which is benefiting client activity.

In Asia-Pacific, turnover increased +2.7% at constant FX and +6.2% at current FX. The region is benefiting from high retention and a slight increase in client activity.

2. Result

Combined ratio

The combined ratio net of reinsurance stood at 68.7% for Q1-25, an increase of 5.6 ppts year on year but flat compared to the previous quarter.

(i) Loss ratio

The gross loss ratio stood at 38.7%, up 5.5 ppts compared to the previous year. This increase reflects the normalisation of the loss experience offset by high but stable reserve releases compared to the previous year. The number of mid-sized claims was below long-term trends but is increasing.

The Group’s provisioning policy remained unchanged. The amount of provisions related to the underwriting year, although discounted, remained in line with the historical average. Strict management of past claims enabled the Group to record 43.6 ppts of recoveries.

The net loss ratio increased to 39.1%, up 3.3 ppts compared to Q1-24, with reinsurance absorbing part of the deterioration in the gross loss ratio.

(ii) Cost ratio

Coface is pursuing a strict cost management policy while maintaining its investments, in line with the Power the Core strategic plan. In Q1-25, costs rose by +5.7% at constant FX and perimeter, and +5.9% at current FX.

The cost ratio net of reinsurance was 29.5% in Q1-25, up 2.2 ppts year on year. This increase was mainly due to cost inflation (+1.4 ppt) and continued investment (+2.9 ppts). In contrast, the improved product mix (Business Information, Debt Collection and fee and commission income) had a positive effect of 2.6 ppts. The change in reinsurance commissions explains most of the remainder.

Financial result

Net financial income was €10.4m in the first quarter. This amount includes an FX effect of -€12.4m, mostly due to the application of IAS 29 (Hyperinflation) mainly in Turkey for €4.5m.

The portfolio’s current yield (i.e. excluding capital gains, depreciation and FX) was €24.9m. The accounting yield³, excluding capital gains and fair value effect, was 0.7% in Q1-25. The yield on new investments was 3.8%.

Insurance Finance Expenses (IFE) stood at €4.1m for the first quarter. Outside of FX gains, the amount is very similar to that of previous quarters.

Operating income and net income

Operating income amounted to €91.2m in Q1-25, down 14.5%.

The effective tax rate was 23% for the quarter (vs. 27% in Q1-24).

In total, net income (group share) was €62.1m, down 9.2% compared to the first quarter of 2024.

3. Shareholders’ equity

At 31 March 2025, Group shareholders’ equity stood at €2,234.0m, up €40.4m or +1.8% (€2,193.6m at 31 December 2024).

This increase is mainly due to positive net income of €62.1m and an FX effect.

The annualised return on average tangible equity (RoATE) was 12.7% at 31 March 2025, down from the previous year, in line with the decline in net income.

4. Outlook

Uncertainty about international economic policy is reaching a rarely seen levels. The United States announced the implementation of massive tariffs which vary depending on industrial sector and the imports’ country of origin. Implementation has been delayed in most cases to allow time for negotiations.

Estimates of the long-term impact will have to wait until the tariffs actually implemented are more stable. In the short term, this uncertainty is delaying investment decisions and detracting from economic growth.

This unprecedented complex environment validates the strategy and positioning adopted by Coface, which draws on its internationally recognised experts and industry leading data to support its clients as effectively as possible as the situation evolves. In the short term, Coface has stepped up communication with its clients and maintained its prevention actions at a high level, while continuing to invest in line with the Power the Core strategic plan. The workforce dedicated to services (Business Information and Debt Collection) currently stands at nearly 700 people.

Conference call for financial analysts

Coface’s Q1-2025 results will be discussed with financial analysts during the conference call on Monday 5 May at 18:00 (Paris time). Dial one of the following numbers:

The presentation will be available (in English only) at the following address:
http://www.coface.com/Investors/financial-results-and-reports

Appendices

Quarterly results

Income statement items in €m Quarterly figures	Q1-24	Q2-24	Q3-24	Q4-24	Q1-25	%	% ex. FX*
Insurance revenue	378.6	375.6	375.9	382.7	382.9	+1.1%	+1.2%
Other revenue	85.0	83.4	78.0	85.5	90.3	+6.2%	+5.5%
REVENUE	463.7	459.1	453.8	468.3	473.2	+2.1%	+2.0%
UNDERWRITING INCOME (LOSS) AFTER REINSURANCE	100.3	94.7	88.8	84.9	85.4	(14.9)%	(15.4)%
Investment income, net of management expenses, excluding finance costs	17.9	22.8	19.0	31.9	10.4	(42.0)%	(44.2)%
Insurance Finance Expenses	(11.4)	(6.7)	(7.3)	(17.1)	(4.1)	(63.6)%	(61.6)%
CURRENT OPERATING INCOME	106.8	110.9	100.5	99.7	91.6	(14.2)%	(15.3)%
Other operating income / expenses	(0.1)	(0.5)	(2.6)	(5.5)	(0.4)	438.8%	439.8%
OPERATING INCOME	106.8	110.4	97.9	94.2	91.2	(14.5)%	(15.6)%
NET INCOME (GROUP SHARE)	68.4	73.8	65.4	53.4	62.1	(9.2)%	(10.5)%
Income tax rate	27.2%	26.8%	25.5%	36.2%	23.0%	(4.2) ppt

Cumulated results

Income statement items in €m Cumulated figures	Q1-24	H1-24	9M-24	2024	Q1-25	%	% ex. FX*
Insurance revenue	378.6	754.3	1,130.2	1,512.9	382.9	+1.1%	+1.2%
Other revenue	85.0	168.5	246.4	331.9	90.3	+6.2%	+5.5%
REVENUE	463.7	922.7	1,376.6	1,844.8	473.2	+2.1%	+2.0%
UNDERWRITING INCOME (LOSS) AFTER REINSURANCE	100.3	195.0	283.8	368.7	85.4	(14.9)%	(15.4)%
Investment income, net of management expenses, excluding finance costs	17.9	40.8	59.8	91.7	10.4	(42.0)%	(44.2)%
Insurance Finance Expenses	(11.4)	(18.1)	(25.4)	(42.5)	(4.1)	(63.6)%	(61.6)%
CURRENT OPERATING INCOME	106.8	217.7	318.2	417.9	91.6	(14.2)%	(15.3)%
Other operating income / expenses	(0.1)	(0.5)	(3.1)	(8.6)	(0.4)	438.8%	439.8%
OPERATING INCOME	106.8	217.2	315.1	409.2	91.2	(14.5)%	(15.6)%
NET INCOME (GROUP SHARE)	68.4	142.3	207.7	261.1	62.1	(9.2)%	(10.5)%
Income tax rate	27.2%	27.0%	26.5%	28.7%	23.0%	(4.2) ppt

* Also excludes scope impact

CONTACTS

ANALYSTS / INVESTORS
Thomas JACQUET: +33 1 49 02 12 58 – thomas.jacquet@coface.com
Rina ANDRIAMIADANTSOA: +33 1 49 02 15 85 – rina.andriamiadantsoa@coface.com

MEDIA RELATIONS
Saphia GAOUAOUI: +33 1 49 02 14 91 – saphia.gaouaoui@coface.com
Adrien BILLET: +33 1 49 02 23 63 – adrien.billet@coface.com

FINANCIAL CALENDAR 2025
(subject to change)

Annual General Shareholders’ Meeting: 14 May 2025
H1-2025 results: 31 July 2025 (after market close)
9M-2025 results: 3 November 2025 (after market close)

FINANCIAL INFORMATION
This press release, as well as COFACE SA’s integral regulatory information, can be found on the Group’s website: http://www.coface.com/Investors

For regulated information on Alternative Performance Measures (APM), please refer to our Interim Financial Report for H1-2024 and our 2024 Universal Registration Document (see part 3.7 “Key financial performance indicators”).

Regulated documents posted by COFACE SA have been secured and authenticated with the blockchain technology by Wiztrust.
You can check the authenticity on the website www.wiztrust.com.

COFACE: FOR TRADE
As a global leading player in trade credit risk management for more than 75 years, Coface helps companies grow and navigate in an uncertain and volatile environment.
Whatever their size, location or sector, Coface provides 100,000 clients across some 200 markets with a full range of solutions: Trade Credit Insurance, Business Information, Debt Collection, Single Risk insurance, Surety Bonds, Factoring.
Every day, Coface leverages its unique expertise and cutting-edge technology to make trade happen, in both domestic and export markets.
In 2024, Coface employed ~5,236 people and registered a turnover of €1.84 billion.

www.coface.com

COFACE SA is quoted in Compartment A of Euronext Paris
Code ISIN: FR0010667147 / Ticker: COFA

DISCLAIMER – Certain declarations featured in this press release may contain forecasts that notably relate to future events, trends, projects or targets. By nature, these forecasts include identified or unidentified risks and uncertainties, and may be affected by many factors likely to give rise to a significant discrepancy between the real results and those stated in these declarations. Please refer to chapter 5 “Main risk factors and their management within the Group” of the Coface Group’s 2024 Universal Registration Document filed with AMF on 5 April 2024 under the number D.25-0227 in order to obtain a description of certain major factors, risks and uncertainties likely to influence the Coface Group’s businesses. The Coface Group disclaims any intention or obligation to publish an update of these forecasts, or provide new information on future events or any other circumstance.

1 Return on average tangible equity
2 Also excludes scope impact
3 Book yield calculated on the average of the investment portfolio excluding non-consolidated subsidiaries.

Attachment

2025 05 05 PR results Q1-2025 COFACE

The MIL Network –

May 6, 2025

MIL-OSI: Flow Capital Announces Cash Dividend on Series A Preferred Shares

Source: GlobeNewswire (MIL-OSI)

TORONTO, May 05, 2025 (GLOBE NEWSWIRE) — Flow Capital Corp. (TSXV:FW) (“Flow Capital” or the “Company”), a leading provider of flexible growth capital and alternative debt solutions, is pleased to announce a cash dividend of $0.069 per Series A Preferred Share (“Preferred Shares”), paid on May 2, 2025, to shareholders recorded as of March 31, 2025. This dividend corresponds to the period from January 1, 2025 to March 31, 2025.

This dividend as an eligible dividend for the purposes of the Income Tax Act (Canada) and relevant provincial or territorial legislation. Consequently, Canadian residents who receive this dividend may benefit from an enhanced dividend tax credit.

The declaration and payment of dividends on the Preferred Shares are subject to the discretion of the Company’s board of directors. Future dividend declarations will depend on the Company’s financial performance, cash requirements, prospects, and other factors considered pertinent by the board.

About Flow Capital

Flow Capital Corp. is a publicly listed provider of flexible growth capital and alternative debt solutions dedicated to supporting high-growth companies. Since its inception in 2018, the company has provided financing to businesses in the US, the UK, and Canada, helping them achieve accelerated growth without the dilutive impact of equity financing or the complexities of traditional bank loans. Flow Capital focuses on revenue-generating, VC-backed, and founder-owned companies seeking $2 to $10 million in capital to drive their continued expansion.

All growing technology companies seeking covenant-light founder-friendly growth capital, are invited to apply for funding directly at www.flowcap.com/get-funding.

For further information, please contact:

Flow Capital Corp.

Alex Baluta
Chief Executive Officer, Flow Capital Corp.
alex@flowcap.com

47 Colborne Street, Suite 303
Toronto, Ontario M5E 1E3

Forward-Looking Information and Statements

Certain statements herein may be “forward-looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Flow or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Flow assumes no obligation, except as required by law, to update any forward-looking statements to reflect new events or circumstances.

The MIL Network –

May 6, 2025
MIL-OSI USA: Why California usually pays more at the pump for gasoline

Source: US Energy Information Administration

In-brief analysis

May 5, 2025

Data source: AAA

Retail prices for regular grade gasoline in California are consistently higher than in any other state in the continental United States, often exceeding the national average by more than a dollar per gallon. Several factors contribute to this high price, including state taxes and fees, environmental requirements, special fuel requirements, and isolated petroleum markets.

Taxes and fees
The components of retail gasoline prices are taxes and fees, distribution and marketing, refining costs, and crude oil prices. Drivers in California pay the highest taxes at the pump, equivalent to $0.90 per gallon (gal) between local, state, and federal taxes as of March 2025.

Federal taxes—which are the same for each state—account for $0.18 of the $0.90/gal in taxes. The other $0.72/gal is made up of state excise tax ($0.60/gal), state sales tax ($0.10/gal), and an underground storage tank fee ($0.02/gal). California’s state gasoline excise tax is the highest in the United States; the average across all states is $0.28/gal.

Environmental requirements
In addition to state taxes, the California Energy Commission estimates that environmental compliance costs added as much as $0.54/gal as of March 2025. The state’s Cap-and-Trade Program and Low Carbon Fuel Standard reflect costs associated with fuel supplier emissions and carbon intensity, and these costs are ultimately reflected in the price consumers pay at the pump.

Special fuel requirements
California also mandates a special blend of gasoline designed to reduce pollution and improve air quality. This fuel burns cleaner but is more expensive to produce because it requires more processing steps and expensive blending components.

Refiners outside the state only make this blend to supply California’s market, meaning that California primarily relies on in-state refineries for its gasoline supply.

Isolated petroleum markets
Supply side issues also contribute to higher California gasoline prices relative to the rest of the country.

Most of the gasoline consumed in California is refined within the state due to lack of petroleum infrastructure connections. California is geographically isolated from other U.S. refining centers because no pipelines supply California from across the Rocky Mountains and only a limited number of pipelines deliver to the West Coast from the Gulf Coast. Of the refineries outside of California with physical access to the state’s gasoline markets, only a few can meet California’s stringent fuel blending requirements.

California also imports gasoline from other countries, such as India and South Korea, to meet its fuel supply needs. Other countries produce California-specification gasoline, but high shipping costs usually limit imports to periods of refinery outages or the summer driving season.

In addition, West Coast refineries have historically maintained lower inventory levels compared with the U.S. average, and California refineries have been closing, with more closures on the horizon. All of these supply chain issues mean that California gasoline prices are more volatile and subject to large spikes, especially if any of the limited number of refineries go offline for maintenance or have an unexpected outage.

Principal contributors: Anne Miranda, Tara Bennett-Chirico

MIL OSI USA News –

May 6, 2025
MIL-OSI: Surfshark becomes the first company to launch privacy-oriented public DNS service
Source: GlobeNewswire (MIL-OSI)

Surfshark, a cybersecurity company, has taken a step further to benefit the privacy community by launching a public DNS (Domain Name System). Unlike the default DNS servers provided by ISPs (Internet Service Providers), which often track and record user activity, Surfshark’s new public DNS server ensures privacy by not logging browsing history, data transfers, or any other internet behavior. Surfshark DNS was created for privacy-conscious individuals and organizations, helping them to take the first step towards privacy and security by using this tool.

“This initiative reflects our dedication to the privacy community and addresses the increasing demand for trustworthy, privacy-first DNS solutions. By offering a free, privacy-oriented DNS service, we are not only seeking Surfshark’s commitment to make the internet a safer place for everyone but also encouraging individuals, organisations, as well as NGOs to take their first steps towards enhancing online privacy. Our DNS service is designed with both stable connectivity and privacy in mind, offering a robust network that doesn’t store or track personal data, giving users a private, seamless browsing experience,” says Karolis Kaciulis, Leading System Engineer at Surfshark.

Many people rely on the default DNS provided by their ISP or other big companies, often overlooking the potential to enhance their browsing experience. A public DNS service hosted by a trustworthy entity would have a positive impact on privacy online and may even improve overall network performance. However, it’s important to note that UDP and TCP DNS queries are still sent over the internet in plaintext, making them susceptible to interception. To counter this, Surfshark’s DNS server supports secure DNS protocols such as DoT, DoH, and DoQ to keep browsing activity private.

What is a DNS server

DNS server works as a translator of domain names like bbc.com or thenewyorktimes.com, into IP (Internet Protocol) addresses that computers can understand. K. Kaciulis explained that it acts as the phonebook of the internet, ensuring users can access websites using easy-to-remember names instead of numerical IP addresses.

“When a person types a domain name like ‘google.com’ into their web browser, a DNS request is created and sent out to find the corresponding IP address for the requested site. Then the internet browser uses this IP address to connect to the origin and load the website. DNS servers, which are dedicated machines that handle and respond to DNS requests, make this seamless process possible,” says K. Kaciulis.

How does a DNS work

When a request is made to access any website on the browser, the DNS resolution process is initiated. During this step, the domain name entered into a browser is converted to the corresponding IP address required to locate the desired web resource. The initial DNS query is sent to a resolver, which first contacts a root server to get information about the correct top-level domain (TLD), such as .com or .org. This TLD data then helps direct the request to the server responsible for the specific domain.

Finally, it reaches the authoritative name server, which holds the exact IP address for the website. This address is then sent back so the site can be loaded.

Benefits of using Surfshark public DNS

ISPs may collect and log users’ DNS queries for user identification. They can also monitor DNS traffic, both passively and actively, and are capable of blocking specific hostnames when necessary. Additionally, user data can be used for targeted advertising or sold to third parties. Surfshark DNS server is different, it operates under a strict no-logs policy, which means no collection, storage, or sharing of browsing activity.

Using a Surfshark DNS may lead to a positive improvement in overall network performance. Unlike default ISP DNS servers, which can become overloaded. Since the Surfshark public DNS infrastructure is spread out, it has a better understanding of geolocation, which can provide users with closer servers. As a result, it may reduce delays, connection drops, and improve overall browsing reliability.

According to K. Kaciulis, privacy is essential for this type of service. Surfshark is committed to protecting user privacy and does not process any information related to users’ online behavior. As a result, the company passed an independent no-log audit in 2023 for its VPN service and is planning to have another one conducted on its public DNS server.

ABOUT SURFSHARK

Surfshark is a cybersecurity company offering products including an audited VPN, certified antivirus, data leak warning system, private search engine, and tool for generating an online identity. Recognized as a leading VPN by CNET and TechRadar, Surfshark has also been featured on the FT1000: Europe’s Fastest Growing Companies ranking. Headquartered in the Netherlands, Surfshark has offices in Lithuania and Poland. For information on Surfshark’s operations and highlights, read our Annual Wrap-up. For more research projects, visit our Research Hub.

Attachment
- Surfshark_DNS
The MIL Network –
May 6, 2025

MIL-OSI: NNIT A/S: NNIT adjusts 2025 outlook and publishes Q1 figures

Source: GlobeNewswire (MIL-OSI)

The first quarter financial performance was expected to be moderate, but the increased macroeconomic and geopolitical uncertainty has impacted NNIT to a larger extent than expected. Based on the realized results and the continued uncertainty, NNIT adjusts the 2025 financial outlook.

Given the current uncertainty, organic revenue growth is expected to be 0% to 5% (previously 7% to 10%), which is due to postponement of projects and the sales pipeline materializing at a slower pace than planned as customers are hesitating to engage in new contracts, especially within Life Science. Expectations for the Group operating profit margin excluding special items are maintained at 7% to 9% as NNIT is significantly reducing its cost base by adjusting capacity and lowering general spending across regions and on corporate level. Special items are expected to be up to last year’s level of DKK 69m (previously expected to be below the 2024 level) mainly driven by further restructuring costs.

NNIT generated Q1 2025 Group revenue of DKK 464m (Q1 2024: DKK 463m). The organic growth was negative by 0.8% (Q1 2024: 8.0%) due to Region Europe and Region US. Group operating profit excl. special items was DKK 18m (Q1 2024: 24m), equal to a margin of 3.9% (Q1 2024: 5.2%). Profit and margin were mainly impacted by Region Europe and a decrease in Region Denmark driven by overcapacity following the postponement of a large contract, which has been signed in Q2, and the loss of a large public tender. Special items for the Group amounted to DKK 25m (Q1 2024: income DKK 11.3m) primarily driven by restructuring costs.

Financial figures, DKK million	Q1 2025	Q1 2024	FY 2024
GROUP
Revenue	464	463	1,851
Group operating profit excl. special items	18	24	117
Group operating profit margin excl. special items	3.9%	5.2%	6.3%
Special items	25	-11	69

REGION EUROPE
Revenue	119	126	512
Regional operating profit	12	14	67
Regional operating profit margin	10.0%	11.2%	13.0%

REGION US
Revenue	87	93	346
Regional operating profit	26	18	73
Regional operating profit margin	30.4%	19.0%	21.2%

REGION ASIA
Revenue	37	32	149
Regional operating profit	3	-2	8
Regional operating profit margin	7.6%	-5.3%	5.2%

REGION DENMARK
Revenue	221	212	844
Regional operating profit	33	48	151
Regional operating profit margin	15.1%	22.6%	17.9%

Despite the adjustment of expectations for organic growth, NNIT maintains expectations for the Group operating profit margin excl. special items to reach 7% to 9%. NNIT has executed several cost reducing initiatives, which include capacity adjustments across the group, to minimize the impact on profitability.

NNIT will publish the Q1 2025 trading statement on May 5, 2025, one day earlier than planned.

For more information, please contact:

Investor Relations
Carsten Ringius
EVP & CFO
Tel: +45 3077 8888
carr@nnit.com

Media Relations
Thomas Stensbøl
Press & Communications Manager
Tel: +45 3077 8800
tmts@nnit.com

ABOUT NNIT

NNIT is a leading provider of IT solutions to life sciences internationally, and to the public and private sectors in Denmark.

We focus on high complexity industries and thrive in environments where regulatory demands and complexity are high.

We advise on and build sustainable digital solutions that work for the patients, citizens, employees, end users or customers.

We strive to build unmatched excellence in the industries we serve, and we use our domain expertise to represent a business first approach – strongly supported by a selection of partner technologies, but always driven by business needs rather than technology.

NNIT consists of group company NNIT A/S and the subsidiary SCALES. Together, these companies employ more than 1,700 people in Europe, Asia and USA.

Attachment

NNIT_Company announcement__NNIT adjusts FY25 outlook

The MIL Network –

May 5, 2025

MIL-OSI: NNIT A/S: Business performance impacted by market undercetainty expected to continue. Mitigating actions taken to protect profitability

Source: GlobeNewswire (MIL-OSI)

Q1 2025 key highlights

Financial performance for the first quarter was expected to be moderate, but macroeconomic and geopolitical uncertainty increased, which impacted NNIT. The uncertainty has influenced customer behavior, especially in the three regions focusing on IT Life Science solutions, where several projects have been postponed, most predominantly in Region Europe. Group revenue amounted to DKK 464.1m, entailing flat revenue growth compared with last year.
Despite improving utilization and capacity adjustments made across regions during the quarter as well as tight cost focus across business areas, the group operating profit excl. special items declined to DKK 18.0m in Q1 2025 compared with DKK 23.9m in the same quarter last year. The decline was due to the lower profit generation in Region Europe and Region Denmark, partly offset by improved profitability performance in Region US and Region Asia. Group operating profit margin excl. special items was 3.9% in Q1 2025 compared with 5.2% in the same quarter last year.
Region Denmark growth around 4% where selected solution areas focusing on the Public sector in Denmark, is showing growth upwards at 8%. SCALES also contributed to the growth in region Denmark solidifying its position as a leader within D365 solutions.
Special items amounted to DKK 25.3m in Q1 2025 covering restructuring costs of DKK 20m impacting all regions, earn-out payments of DKK 3m, and IT systems and integration costs amounting to around DKK 2m.
The financial outlook for 2025 was adjusted on May 5, 2025 cf. company announcement 04/2025 as the current macroeconomic and geopolitical landscape has deteriorated materially since the full-year outlook communicated in February. NNIT expects to be further affected by current uncertainty why the organic growth range was adjusted to 0% to 5% (previously 7% to 10%). Group operating profit margin excl. special items was maintained at 7% to 9% due to significant cost reducing initiatives with most already having been executed. As a result of lower revenue generation caused mainly by external factors, NNIT expects to incur additional restructuring costs as special items. Special items are expected to be at up to last year’s level of DKK 69m (previously expected to be significantly below the 2024 level).

The first quarter was more severely affected by uncertainty than expected at the beginning of the year. Hesitance among several customers of NNIT has resulted in less revenue and sales as projects are being postponed. In general, NNIT has taken action to adjust capacity to fit the current demand with several reductions completed in 2024 and leaving NNIT in a stronger position going into 2025. However, it has been necessary to take further actions to mitigate the business impact from lower revenue generation with a reduction of around 100 employees in Q1 2025. Furthermore, NNIT has carried out several cost-reducing initiatives such as putting new employments on hold and limiting all discretionary spending to a minimum with full impact from the second quarter.

Given the current macroeconomic environment and geopolitical unrest, NNIT continues to expect that its customers will be affected, which is reflected in the adjusted full-year financial outlook.

Pär Fors, CEO of NNIT, comments: “The business environment of NNIT has deteriorated in the first quarter of the year as especially our Life Science customers are being negatively impacted by the macroeconomic unrest. Customers are hesitant to engage in new contracts before things are stabilizing, and we are navigating this environment to continue our strategic journey at NNIT. However, the impact from the uncertainty is more severe than initially expected, why the full-year outlook has been adjusted.”

Financial overview – Selected key figures

NNIT A/S, DKK million	Q1 2025	Q1 2024	FY 2024
Revenue	464.1	463.4	1,851
Revenue growth, %	0.2%	12.2%	23.4%
Revenue growth, organic %	-0.8%	8.0%	10.8%
Group operating profit excl. special items	18.0	23.9	117
Group operating profit margin excl. special items, %	3.9%	5.2%	6.3%
Special items	.25.3	11.3	-69
Group operating profit incl. special items	-7.3	35.2	48
Group operating profit margin incl. special items, %	-1.6%	7.6%	2.6%

Free cash flow	-73	-166	-40

Conference call

May 6, 2025, at 3:00 PM CEST: Webcast link

Dial in information:
DK: +45 78 76 84 90
SE: +46 31-311 50 03
UK: +44 20 3769 6819
US: +1 646 787 0157
Participant Access code: 472855

For more information, please contact:

Investor Relations
Carsten Ringius
EVP & CFO
Tel: +45 3077 8888
carr@nnit.com

Media Relations
Thomas Stensbøl
Press & Communications Manager
Tel: +45 3077 8800
tmts@nnit.com

ABOUT NNIT

NNIT is a leading provider of IT solutions to life sciences internationally, and to the public and private sectors in Denmark.

We focus on high complexity industries and thrive in environments where regulatory demands and complexity are high.

We advise on and build sustainable digital solutions that work for the patients, citizens, employees, end users or customers.

We strive to build unmatched excellence in the industries we serve, and we use our domain expertise to represent a business first approach – strongly supported by a selection of partner technologies but always driven by business needs rather than technology.

NNIT consists of group company NNIT A/S and the subsidiary SCALES. Together, these companies employ more than 1,700 people in Europe, Asia and the USA.

Attachments

The MIL Network –

May 5, 2025

MIL-OSI Asia-Pac: “Phulera Ka Panchayati Raj” : A Digital Hit with a Self-Reliant Heart

Source: Government of India

“Phulera Ka Panchayati Raj” : A Digital Hit with a Self-Reliant Heart

Final Episode of the Three Part Series “Alhua Vikas” Highlights Local Taxes Fuel Local Progress

Posted On: 05 MAY 2025 1:13PM by PIB Delhi

The Ministry of Panchayati Raj’s “Alhua Vikas”, the third and final film of the three-part extension series “Phulera Ka Panchayati Raj”, is enthusing digital audiences widely and sensitising them about the issues that affect gram panchayats across India. The third and final episode was released earlier on the occasion of the National Panchayati Raj Day (24^th April, 2025) and has since then received a phenomenal response on Youtube with over 6M+ views so far.

“Alhua Vikas” highlights the critical importance of generating Own Sources of Revenue (OSR) by Rural Local Bodies that helps in strengthening the self-reliance of Panchayati Raj Institutions (PRIs) across rural India. This film promotes citizen awareness on timely payment of local taxes, highlighting how such contributions enable improved service delivery and sustained village development. The film features renowned actors including Neena Gupta, Faisal Malik, Chandan Roy, Durgesh Kumar, and others from the original “Panchayat” cast, and has received significant public attention with emphasizes on the message “जमा करके कर, बनाईये अपनी पंचायत को आत्मनिर्भर” to encourage citizens to pay local taxes promptly, thereby supporting development works in their villages. The release of the film that coincided with the conferring of awards on the Panchayats by Prime Minister Shri Narendra Modi on the National Panchayati Raj Day to recognize the outstanding contributions in the areas of self-reliance in mobilization of Own Sources of Revenue (OSR), reaffirms the resolve of the Ministry towards making the rural local bodies financially self-reliant and “Atmanirbhar”. The Ministry of Panchayati Raj aims to make OSR a household term and encourage capable citizens to pay relevant taxes. These contributions are essential for making Panchayati Raj Institutions financially sustainable and self-sufficient entities of grassroots governance in rural India.

Watch the Three Part Series “Phulera Ka Panchayati Raj” Showcasing Key Themes of Grassroots Governance in Rural India : Links Given Below :-

Sl. No.	Title of sketch / film	Premiered on	Theme	YouTube link
1.	Asli Pradhan Kaun?	4^th March, 2025	“Asli Pradhan Kaun?” draws attention to the issue of proxy representation and advocates for strengthening the leadership of elected women representatives of Panchayati Raj Institutions.	https://www.youtube.com/watch?v=GVxadWl5Cjk&t=102s
2.	Phulera Mein Chori	12^th March, 2025	“Phulera Mein Chori” highlights the impact of the SVAMITVA Scheme and digital governance tools such as Meri Panchayat App, showcasing how rural communities are gaining access to transparent, efficient services.	https://www.youtube.com/watch?v=d56hvDYu5yA&t=162s
3.	Alhua Vikas	24^th April, 2025	“Alhua Vikas” promotes the idea of enhancing Own Sources of Revenue (OSR) through citizen participation, enabling Panchayats to become financially self-reliant and development-ready.	https://www.youtube.com/watch?v=KRW8Nu9Wivs

***

Aditi Agrawal

(Release ID: 2126985) Visitor Counter : 72

MIL OSI Asia Pacific News –

May 5, 2025

MIL-OSI Australia: 2025 Completed matters

Source: New places to play in Gungahlin

The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 and Capital Works (Build To Rent Misuse Tax) Act 2024 received Royal Assent on 10 December 2024. A legislative instrument covering initial standards for the BTR measure was made on 18 December 2024 and further legislative instruments will be made in 2025. The measure commenced from 1 January 2025.

There are some aspects of the law that may not be clear and may require administrative or interpretive guidance for those adopting the BTR laws. The ATO is aware of certain areas where stakeholders may require interpretive assistance. We are consulting to understand what guidance stakeholders require to correctly apply the laws, so we can support their participation and compliance.

We anticipate public advice and guidance will reduce the number of enquiries raised with the ATO on the BTR measure. These enquiries could range from general administrative enquiries through to private binding rulings.

MIL OSI News –

May 5, 2025
MIL-OSI Australia: ATO consultation report
Source: New places to play in Gungahlin
About the ATO consultation report

This report describes ATO consultation activities in April 2025.

It contains:

Consultation matters

Statistics

Consultation matters received

[202508] Understanding the use of communication preferencing

Consultation matters completed

[202508] Understanding the use of communication preferencing

[202506] Build to rent development tax incentives

Advice and guidance products released for comment

No advice and guidance products were released for comment

Legislative instruments released for comment

No draft legislative instruments were released for comment.

See open consultation for products open for comment.

News

Stewardship group

The Tax Practitioner Stewardship Group met out of session to discuss the Counter Fraud Program draft guidance material which will assist tax practitioners to:
- understand the new features of the ATO app
- support clients to keep their information safe
- protect their ATO record against fraud by using the apps new features.
MIL OSI News –
May 5, 2025

MIL-OSI: Aktsiaselts Infortar interim report for Q1 2025

Source: GlobeNewswire (MIL-OSI)

Aktsiaselts Infortar interim report for Q1 2025

Infortar will arrange a webinar for investors today 5 May 2025.Please join the webinar via the following links:

Estonia’s largest investment holding company, Infortar, increased its turnover by 20% in the first quarter of the year compared to the same period last year, reaching €447 million. The group’s total assets nearly doubled to €2.6 billion, while investments tripled to €22 million. In recent years, Infortar has nearly doubled the size of its real estate portfolio and is actively expanding across multiple sectors.

Since August 1st of last year, the results of Tallink, a group company, have been consolidated into Infortar’s financial statements. Due to the highly seasonal nature of the maritime transport business, Tallink’s first-quarter loss of €33 million was reflected in Infortar’s own results. An additional impact came from a €1.7 million income tax expense, resulting in a total net loss of €14.6 million for Infortar in the first quarter, of which €4.5 million was attributable to Infortar’s shareholders. The energy business was affected by an exceptionally warm winter and lower consumption, but remained profitable overall. The real estate segment, meanwhile, showed significant year-on-year growth in volumes.

“The economy stands on three pillars – agriculture, industry, and services. In recent years, Infortar has expanded its presence across all three to achieve its goals and diversify risk. Moreover, we have grown into a market leader in each,” said Ain Hanschmidt, Chairman of the Management Board of Infortar.

“The performance of Tallink had the biggest impact on Infortar’s first-quarter profitability. In addition to typical seasonality, passenger numbers in the first quarter reflected the state of the core markets’ economies and low consumer confidence. Still, it is important to note that the most challenging period of the year is now behind Tallink, and the outlook is more optimistic,” Hanschmidt added.

“The energy business was affected by an exceptionally mild winter, lower consumption, and a gas surplus. Nevertheless, the segment remained profitable, primarily due to well-placed investments in gas distribution networks in Latvia and Poland. In real estate, we continued rapid growth – over the past year, we have expanded our portfolio by nearly 50%, becoming one of the largest property owners in the Baltics,” said Hanschmidt.

“Despite a turbulent environment, Infortar continues to grow as one of the largest investment companies on the eastern coast of the Baltic Sea, actively seeking new investment opportunities. Our balance sheet strength is the key indicator of resilience – Infortar’s financial position and liquidity remain solid, free liquidity is €153 million enabling us to generate cash and invest. We can also confirm our continued commitment to the stated dividend policy. Diversification across sectors and countries has created a strong platform that provides confidence even in volatile times,” Hanschmidt concluded.

Major Event

Maritime transport

Tallink´s first quarter of 2025 was impacted by low consumer and business confidence levels, the economic challenges in the Group’s core markets and global geopolitical tensions. As at the end of the quarter, the Group operated 14 vessels including 2 shuttle vessels, 6 passenger vessels, 2 vessels that were chartered out and 4 vessels that were in lay-up.

During the quarter Tallink´s total investments amounted to EUR 13.3 million majority of which were made to upgrading the cruise ferries Baltic Princess and Silja Serenade. The planned maintenance works totalling 68 days in the first quarter of 2025 affected the passenger and cargo levels in Finland-Sweden routes.

Energy

In the first quarter, natural gas consumption in the Finnish-Baltic region totalled 15,0 TWh, decreasing by 19% compared with the previous year (16,5 TWh). Energy sales were negatively impacted by higher-than-average temperatures, which reduced the demand for natural gas.

In the first quarter of 2025, Elenger Grupp sold a total of 4.6 TWh of energy (compared to 6,1 TWh in Q1 2024). Sales in Estonia accounted for 17% of the energy sales in Q1 2025. The company´s market share decreased in Q1 2025 to 20,0% in the Finland-Baltic gas market.

Real estate

At the end of last year, the Rimi logistics center in Saue municipality received its usage permit; this summer, the new bridge in Pärnu will be completed, and next year, DEPO will open its second store in Estonia, located in Lasnamäe.

Key financial figures

Key figures	Q1 2025	Q1 2024	12 months 2024
Sales revenue. m€	447.357	372.584	1 371.775
Gross profit. m€	26.068	50.004	128.628
EBITDA. m€	27.661	74.004	145.275
EBITDA margin (%)	6.2%	19.9%	10.6%
Net profit. EBIT. m€	-0.655	67.624	77.024
Total profit(-loss). m€	-14.561	62.062	193.670
Net profit (-loss) holders of the Parent m€	-4.479	62.167	191.253
EPS (euros)*	-0.2	3.1	9.6
Total equity m€	1 181.002	820.210	1 166.222
Total liabilities m€	1 105.305	852.690	1 223.287
Net debt m€	952.397	195.799	1 055.708
Investment loans to EBITDA (ratio)**	3.3x	1.5x	3.0x

^Notes:^*^{For the earnings per share (EPS) calculation, the number of shares as of 31.03.35 has been used for comparability. Formula: profit/loss attributable to Infortar shareholders divided by the number of shares, excluding own shares issued under the stock option program. Example calculation based on the end of Q1 2024: (191 x 1,000,000) / (20,443,629 – 722,610).}^**^{Investment loans / EBITDA, annualized. For comparability,}^actual^{EBITDA of Tallink Grupp for the relevant period has been used, based on Tallink Grupp quarterly report}^.

Revenue

In the first quarter of the 2025 financial year, the Group’s consolidated revenue increased by EUR 74.7 million to EUR 447.4 million (Q1 2024 consolidated revenue: EUR 372.6 million). A significant impact came from the consolidation of Tallink Grupp’s results into Infortar’s consolidated financial statements as of 1 August 2024.

EBITDA and Segment Reporting
In the first quarter of the 2025 financial year, the EBITDA of the maritime transport segment amounted to EUR -3.8 million (Q1 2024: EUR 34.5 million).
The energy segment’s EBITDA was EUR 31.8 million (Q1 2024: EUR 73.9 million).
In the real estate segment, profitability is assessed based on the EBITDA of individual real estate entities.

Based on separate real-estate companies results, the real estate segment’s EBITDA was EUR 3.4 million in Q1 2025 (Q1 2024: EUR 3.8 million).

Net Profit (Loss)
The consolidated net loss for the first quarter of the 2025 financial year was EUR -14.6 million, including a loss attributable to Infortar’s owners of EUR -4.5million (Q1 2024 net profit: EUR 62.1 million, including EUR 62.2 million attributable to Infortar’s owners).

Investments
In the spring of 2024, Infortar entered the agricultural sector by acquiring one of Estonia’s largest dairy farms in Halinga and began construction of a biomethane plant next to the farm to produce local green gas. Today, on 5 May, Infortar announced an additional investment plan in Estonia Farmid OÜ.
In the first quarter of 2025, the total amount of investments made by the Infortar Group was approximately EUR 22 million.

Financing
As of the first quarter of the 2025 financial year, the Group’s total loan and lease liabilities amounted to EUR 1 105.3million (compared to EUR 1 223.3 million at the end of the 2024 financial year). Infortar’s net debt stood at EUR 952.397 million. The net debt to EBITDA ratio was 3.4.

Dividends

According to the dividend policy, the objective is to pay dividends of at least 1 euro per share per financial year. Dividend payments are made semi-annually. Infortar Group’s management proposes to pay a dividend of 3 euros per share for the 2024 financial year results. According to the proposal, the first payout is planned to be made no later than July, and the second payout in December 2025.

Consolidated Statement of Profit or Loss

(in thousands of EUR)	Q1 2025	Q1 2024	12 months 2024
Revenue	447 357	372 584	1 371 775
Cost of goods (goods and services) sold	-421 173	-322 573	-1 243 034
Write-down of receivables	-116	-7	-113
Gross profit	26 068	50 004	128 628
Marketing expenses	-10 976	-415	-21 086
General administrative expenses	-20 965	-7 238	-50 438
Profit (loss) from derivatives	0		26 672
Profit (loss) from biological assets	-33	0	-139
Profit (loss) from the change in the fair value of the investment property	0	156	-949
Profit (loss) from the change in the fair value of the investment property	3 939	24 659	-8 691
Other operating revenue	1 956	600	4 682
Other operating expenses	-644	-142	-1 655
Operating profit	-655	67 624	77 024

(in thousands of EUR)	Q1 2025	Q1 2024	12 months 2024
Profit (loss) from investments accounted for by equity method	955	2 000	22 974
Financial income and expenses:
Other financial investments	-333	0	13 342
Interest expense	-12 896	-6 745	-38 274
Interest income	842	1 244	4 979
Profit (loss) from changes in exchange rates	-315	-2	100
Other financial income and expenses	-451	4	93 659
Total financial income and expenses	-13 153	-5 499	73 806
Profit before tax	-12 853	64 125	173 804
Corporate income tax	-1 708	-2 063	19 866
Profit for the financial year	-14 561	62 062	193 670
including:
Profit attributable to the owners of the parent company	-4 479	62 167	191 253
Profit attributable to non-controlling interest	-10 082	-105	2 417

Other comprehensive income	Q1 2025	Q1 2024	12 months 2024
tems that will not be reclassified to profit or loss
Revaluation of post-employment benefit obligations			-141
Items that may be subsequently reclassified to the income statement:
Revaluation of risk hedging instruments			-45 792
Exchange rate differences attributable to foreign subsidiaries			53
Total of other comprehensive income			-45 880
Total income, including:			147 790
including:
Comprehensive profit attributable to the owners of the parent company			145 514
Comprehensive profit attributable to non-controlling interest			2 417
Ordinary earnings per share (in euros per share)	-0,22	14,62	9
Diluted earnings per share (in euros per share)	-0,21	14,15	14,15

Consolidated Statement of Financial Position

(in thousands of EUR)	31.03.25	31.12.24
Current assets
Cash and cash equivalents	152 908	167 579
Short term financial investments	0	0
Derivative financial assets	16 968	8 333
Settled derivative receivables	2 448	676
Other prepayments and receivables	153 040	155 351
Prepayments for taxes	3 650	3 831
Trade and other receivables	51 379	38 517
Prepayments for inventories	1 953	2 498
Inventories	124 636	215 914
Biological assets	941	941
Total current assets	507 923	593 640

Non-current assets	31.03.25	31.12.24
Investments to associates	17 559	16 603
Long-term derivative instruments	340	3 214
Other long term obligations	34 685	35 163
Property, plant and equipment at fair value	1 309 599	1 315 167
Investment property	68 175	67 931
Property, plant and equipment	598 280	594 291
Intangible assets	38 008	38 874
Right-of-use assets	46 043	47 598
Biological assets	2 720	2 753
Total non-current assets	2 115 409	2 121 594
TOTAL ASSETS	2 623 332	2 715 234

(in thousands of EUR)	31.03.25	31.12.24
Current liabilities
Loan liabilities	396 801	497 162
Rental liabilities	8 755	9 020
Payables to suppliers	104 664	87 941
Tax obligations	48 861	49 354
Buyers’ advances	40 946	31 126
Settled derivatives	9 706	8 728
Other current liabilities	68 409	63 431
Short term derivatives	8 285	27 704
Total current liabilities	686 427	774 466

Non-current liabilities	31.03.25	31.12.24
Long-term provisions	8 455	9 946
Deferred taxes	3 039	2 816
Other long-term liabilities	43 412	43 209
Long-term derivatives	1 248	1 471
Loan-liabilities	661 602	676 670
Rental liabilities	38 147	40 435
Total non-current liabilities	755 903	774 547
TOTAL LIABILITIES	1 442 330	1 549 013

(in thousands of EUR)	31.03.25	31.12.24
Equity
Share capital	2 117	2 117
Own shares	-72	-72
Share premium	32 484	32 484
Reserve capital	212	212
Option reserve	7 431	6 223
Hedging reserve*	3 510	-21 674
Unrealised currency translation differences	2 854	45
Employment benefit reserve	-44	-185
Retained earnings	885 688	890 167
Net profit of the financial year
Total equity attributable to equity holders of the Parent	934 180	909 317
Minority interests	246 822	256 904
Total equity	1 181 002	1 166 221

TOTAL LIABILITIES AND EQUITY	2 623 332	2 715 234

Consolidated Statement of Cash Flows

Cash flows from operating activities
(in thousands of EUR)	3 months 2024	12 months 2024
Profit for the financial year	-14 561	193 670
Adjustments:
Depreciation, amortisation, and impairment of non-current assets	28 316	68 251
Change in the fair value of the investment property	0	0
Equity profits/losses	-956	-22 974
Change in the value of derivatives	-79	-1 483
Other financial income/expenses	2 300	-112 030
Calculated interest expenses	12 896	38 274
Profit/loss from non-current assets sold	-116	-955
Income from grants recognised as revenue	-385	-643
Corporate income tax expense	1 708	-19 866
Income tax paid	-1 485	-10 551
Change in receivables and prepayments related to operating activities	-12 184	52 023
Change in inventories	91 823	-12 831
Change in payables and prepayments relating to operating activities	29 780	-81 275
Change in biological assets	33	-322
Total cash flows from operating activities	137 090	89 288

Cash flows from investing activities	3 months 2024	12 months 2024
Purchases of subsidiaries	-333	-111 684
Proceeds from the sale of other financial investments	0	0
Received dividends	0	20 862
Given loans	607	1 918
Interest gain	755	4 953
Purchases Investment property	-244	-10 352
Purchases of property, plant and equipment	-23 305	-27 835
Proceeds from sale of property	139	1 561
Total cash flows used in investing activities	-22 381	-120 577

Cash flows used in financing activities	3 months 2024	12 months 2024
Gain from goverment grants	394	225
Changes in overdraft	-43 343	12 863
Proceeds from borrowings	94 276	358 731
Repayments of borrowings	-166 362	-151 790
Repayment of finance lease liabilities	-3 591	-11 300
Interest paid	-10 754	-39 153
Dividends paid	0	-60 997
Gain from share emission	0	3 174
Total cash flows used in financing activities	-129 380	111 753
	0	0
TOTAL NET CASH FLOW	-14 671	80 464
Cash at the beginning of the year	167 579	87 115
Cash at the end of the period	152 908	167 579
Net (decrease)/increase in cash	-14 671	80 464

Infortar operates in seven countries, the company’s main fields of activity are maritime transport, energy and real estate. Infortar owns a 68.47% stake in Tallink Grupp, a 100% stake in Elenger Grupp and a versatile and modern real estate portfolio of approx. 141,000 m2. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, agriculture, printing, and other areas. A total of 110 companies belong to the Infortar group: 101 subsidiaries, 4 affiliated companies and 5 subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 6,296 people.

Additional information:

Kadri Laanvee
Investor Relations Manager
Phone: +372 5156662
e-mail: kadri.laanvee@infortar.ee
www.infortar.ee/en/investor

Attachments

The MIL Network –

May 5, 2025

MIL-OSI New Zealand: Tax Issues – New report illustrates tax system failures – Tax Justice Aotearoa

Source: Tax Justice Aotearoa

Tax reform advocacy group Tax Justice Aotearoa is calling on the Government and opposition parties to remedy the failures in our taxation system illustrated by a new report from the Centre of International Corporate Tax Accountability and Research, which looks at transparency and corporate tax issues in the heavily public-funded aged care sector.

“Instead of talking about the possibility of reducing our corporate tax rate of 28 per cent, the Government should be finding ways to increase financial transparency, and ensuring that multinational corporates pay their fair share of current corporate tax by reviewing the thin capitalisation rules,” says Glenn Barclay, Chairperson of Tax Justice Aotearoa.

“This is particularly urgent where public funds are paid to multinational corporations delivering services on behalf of the government.”

The report focuses on the transparency of public funding in the aged residential care sector, and shows how our tax system allows multi-national providers to avoid paying the taxes that the public would expect them to pay, demonstrating this through the example of UK-owned BUPA.

BUPA had an average effective corporate tax rate over the past decade of only 4 per cent, much lower than the headline rate of 28 per cent, driven largely by tax-free capital gains.

In addition, the company appears to have used inter-company interest payments on a substantial loan to an Australian-incorporated BUPA company, which may have reduced taxable income by around $151m over the decade, trimming tax revenue by as much as $27 million over that period.

“This ability of multi-nationals to set up loans between subsidiary companies in different countries and then claim tax deductibility on the interest from those loans is a major issue,” says Glenn Barclay.

“While entirely legal, this ‘thin capitalisation’ is an approach that most members of the public would find questionable. It also gives multi-national players an advantage over wholly New Zealand-owned companies in competitive markets.”

“New Zealand does have thin capitalisation rules that are supposed to prevent this kind of activity, but this example shows that they are simply not strong enough,” says Glenn Barclay.

“We note that Australia and the UK have introduced a ‘fixed ratio’ test for interest payments on related party debt which limits allowable interest deductions in any one year to 30 per cent of gross earnings and this is the kind of measure that we should also seriously consider.”

“On a related matter, we note that IRD is looking at relaxing the existing thin capitalisation rules for infrastructure projects as part of its work programme agreement with the Minister of Revenue.

This could well be in the Budget and would be a big step in the wrong direction,” says Glenn Barclay. “We urge the Government not to go down this route, but instead look at tightening this provision across the economy.”

The report questions the tax exemptions in the sector for capital gains arising from revaluations of assets, which is significant given the amount of real estate that companies in the sector own.

“It seems that aged residential care providers are intentionally using the capital gains they make from selling both rights to occupy properties to new residents, and sometimes the properties themselves, as part of their income streams,” says Glenn Barclay.

“If this is true, then the current law, which says that capital gains on sales made intentionally for that purpose are taxable, should be enforced. If, for some reason, it is not enforceable, then the law should be clarified. A comprehensive tax on capital gains would resolve these issues in a much clearer way.”

The report also raises questions about the level of funding for the aged care sector and the extent to which unaccountable multi-national and other private providers should be involved in service delivery.

“The report indirectly supports the need for more funding for aged care generally as the population ages and this is yet another example of a demand for services that only a more progressive tax system that properly taxes wealth can address,” says Glenn Barclay.

MIL OSI New Zealand News –

May 5, 2025

MIL-OSI Australia: Taxable NFP organisations

Source: New places to play in Gungahlin

Taxable or exempt organisations

Not all NFP organisations are exempt from income tax. NFPs can be either exempt or taxable.

To be exempt from income tax, an NFP must meet the requirements to self-assess as income tax exempt or be a registered charity that is endorsed by us as income tax exempt.

NFP organisations that seek to advance the common interest of their members and do not benefit the broader community won’t generally meet the requirements for income tax exemption.

Examples of taxable NFPs include:

social clubs and fraternal organisations
some business and professional associations
clubs whose main purpose is providing hospitality services for members
political parties.

Some NFP organisations are taxable and may have to lodge income tax returns and pay income tax. If you are a taxable NFP, find out if you can apply the mutuality principle when calculating your taxable income.

To work out if you need to lodge an income tax return or if you should notify us of a ‘non-lodgment advice’ also known as a ‘return not necessary’, check if your organisation is:

Incorporated associations and unincorporated associations are treated as a company for income tax purposes under tax law.

Taxable NFP companies

NFP companies are organisations, incorporated and unincorporated, that operate for its purpose and not for the profit or gain (direct or indirect) of its individual members. Their governing documents must prohibit them from making any distributions to their members, whether in money, property or otherwise.

Taxable NFP companies have special arrangements for lodging tax returns and special rates of income tax. An NFP company with taxable income of:

$416 or less can notify us of a non-lodgment advice. You do not need to lodge a company tax return unless we specifically request you to
more than $416 must lodge a company tax return for that year.

Income tax rates for the 2023–24 income year

Your reporting requirements and specific rates depend on if your NFP company is a base rate entity.

NFP company that is a base rate entity
Taxable income range	Rate of tax	How to report
$0–$416	Nil	Submit a non-lodgment advice, also known as a return not necessary, to avoid receiving a reminder to lodge letter.
$417–$762	55% for every dollar over $416	Lodge a company tax return. For help with lodging, see Not-for-profit guide to company tax return.
From $763 and above	25% on the whole amount of your taxable income	Lodge a company tax return. For help with lodging, see Not-for-profit guide to company tax return.

NFP company that is not a base rate entity
Taxable income range	Rate of tax	How to report
$0–$416	Nil	Submit a non-lodgment advice, also known as a return not necessary, to avoid receiving a reminder to lodge letter.
$417–$915	55% for every dollar over $416	Lodge a company tax return. For help with lodging, see Not-for-profit guide to company tax return.
$916 and above	30% on the whole amount of taxable income	Lodge a company tax return. For help with lodging, see Not-for-profit guide to company tax return.

Example 1: income tax payable by NFP company with $900 taxable income

An NFP company has taxable income of $900 in the 2023–24 financial year.

Base rate entity

For an NFP company that is a base rate entity the income tax payable is $225. This is calculated by multiplying the whole $900 of taxable income by 0.25.

Not a base rate entity

For an NFP company that is not a base rate entity the income tax payable is $266.20, which is calculated by taking 2 steps:

Step 1 – determine the amount of taxable income above $416, by subtracting $416 from $900. This leaves $484 in taxable income.
Step 2 – multiply $484 taxable income by 0.55.

End of example

Example 2: income tax payable by NFP company with $2,000 taxable income

An NFP company has taxable income of $2,000 in the 2023–24 financial year.

Base rate entity

For an NFP company that is a base rate entity, the income tax payable is $500 and is calculated by multiplying the whole $2,000 of taxable income by 0.25.

Non base rate entity

For an NFP company that is not a base rate entity, the income tax payable is $600 and is calculated by multiplying the whole $2,000 of taxable income by 0.30.

End of example

Taxable trusts and partnerships

Taxable trusts and partnerships must lodge a return every year regardless of net income.

For help completing your tax return, see Income tax return for partnerships and trusts.

Other taxable companies

Clubs, societies, and associations whose constituent documents don’t prohibit them from making distributions to their members are treated as other taxable companies.

Incorporated associations and unincorporated associations are treated as a company for income tax purposes under tax law.

Other taxable companies must lodge a tax return each year, regardless of their taxable income. There is no tax-free threshold and they have the same rates of tax as other companies.

For the 2023–24 income year, the rate of tax is:

25% if the company is a base rate entity
30% if the company isn’t a base rate entity.

The taxable income of a club, society or association is calculated in the same way as a company for tax purposes.

Income tax rates for the 2023–24 income year – other taxable companies
Income category	Rate of tax
Base rate entity	25%
Not a base rate entity	30%

For help completing your tax return, see Not-for-profit guide to company tax return.

Mutuality principle

To work out your NFPs taxable income, you must know how amounts received from members are treated. Under the mutuality principle:

receipts derived from mutual dealings with members are not assessable income (these are called mutual receipts)
expenses incurred to get mutual receipts are not deductible.

Notify of a non-lodgment advice

Who can use a non-lodgment advice

If you are:

How to notify us

As an NFP company, you can give us non-lodgment advice for an income year by either:

To make the request, you must be listed as an authorised contact on ATO records to act on behalf of the organisation. If you need to update your authorised contacts, see Notify us of changes to your not-for-profit.

Phoning us

Speak with a customer service representative using our Lodge and Pay enquiry phone number. Due to privacy reasons, you must be an authorised contact already listed on ATO records. We’ll ask you to confirm your identity and authorisation to access the account.

Using a form

You can download and complete the NFP company non-lodgment adviceExternal Link.

Registered tax agent

A registered tax agent can submit the non-lodgment advice on your behalf using Online services for agents.

Capital gains tax

Capital gains tax (CGT) applies to NFP clubs, societies and associations that are treated as companies for income tax purposes, in the same way as it does for other companies that pay income tax.

Pay as you go instalments

Pay as you go (PAYG) instalments is a system for paying amounts towards the expected tax liability on your business and investment income for the financial year.

Consolidations

Wholly-owned corporate groups may have the option of consolidating for income tax. Consolidation is optional but cannot be reversed. The consolidated group operates as a single entity for income tax purposes, lodging a single tax return and paying a single set of PAYG instalments.

When a group consolidates, it is a ‘one in, all in’ situation, where all of the head company’s eligible wholly-owned subsidiary members become part of the group.

There are specific rules about the types of entities that can be a head company or a subsidiary member of a consolidated group.

MIL OSI News –

May 5, 2025

MIL-OSI Australia: Tax time toolkit for investors

Source: New places to play in Gungahlin

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

MIL OSI News –

May 5, 2025
MIL-OSI USA: Office of the Governor — News Release — Gov. Green Wins Passage Of Historic Climate Impact Legislation

Source: US State of Hawaii

Office of the Governor — News Release — Gov. Green Wins Passage Of Historic Climate Impact Legislation

Posted on May 2, 2025 in Latest Department News, Newsroom, Office of the Governor Press Releases

STATE OF HAWAIʻI
KA MOKU ʻĀINA O HAWAIʻI

JOSH GREEN, M.D.
GOVERNOR
KE KIAʻĀINA

GOVERNOR GREEN WINS PASSAGE OF HISTORIC CLIMATE IMPACT LEGISLATION

FOR IMMEDIATE RELEASE
May 2, 2025

HONOLULU — Governor Josh Green, M.D., today heralded the Legislature’s passage of SB1396, creating the climate impact fee, or “green fee,” that will help the islands to mitigate the impacts of climate change and the roughly 10 million annual visitors we welcome to our shores.

“This legislation, which I intend to sign, is the first of its kind in the nation and represents a generational commitment to protect our ‘āina. Hawai‘i is truly setting a new standard to address the climate crisis, and I want to thank lawmakers for their unrelenting work these past two years in bringing this to fruition,” said Governor Green.

SB1396 will increase the state’s portion of the Transient Accommodation Tax (TAT) collections from 10.25% to 11%. Additionally, all four counties have exercised their legislated authority to apply an additional TAT of up to 3% and have adopted the full amount. The net result with this 0.75% increase is a TAT of 14% statewide. General Excise Tax is applied on top of room rates. It is estimated the fee will raise $100M annually to provide disaster mitigation for the Aloha State.

“Given the devastation we saw on Maui in August of 2023, this measure is crucial because it will help us to deal with wildfire risk resulting from the climate change crisis. It is foundational to our ability to provide a safe and secure Hawai‘i for our children, our residents, our visitors and the environment,” Governor Green said.

Governor Green has until July 9, 2025, to sign the bill into law. He has repeatedly indicated his intention to do so, as it has been a priority piece of legislation for his administration.

A video statement by Governor Green shared on his social media platforms is available here. Courtesy: The Office of the Governor.

###

Media Contacts:
Erika Engle
Press Secretary
Office of the Governor, State of Hawai‘i
Office: 808-586-0120
Email: [email protected]

Makana McClellan
Director of Communications
Office of the Governor, State of Hawaiʻi
Cell: 808-265-0083
Email: [email protected]

MIL OSI USA News –

May 5, 2025
MIL-OSI New Zealand: Bupa under scrutiny for tax practices as workers face cuts – E tū

Source: Etu Union

A new report from E tū and international tax watchdog CICTAR has raised serious questions about whether aged care giant Bupa is shifting profits offshore to avoid paying its fair share of tax in Aotearoa.

E tū is calling for urgent reform and transparency in aged residential care funding, following the revelations that Bupa – the country’s second-largest provider – has paid just $12 million in income tax over the past decade, despite reporting nearly $300 million in profits.

“We spend billions of dollars each year on aged residential care, but there is very little transparency about whether that money supports decent jobs for workers, or simply subsidises corporate profits,” says Edward Miller, researcher with the Centre for International Corporate Tax Accountability and Research (CICTAR).

“Our research suggests that over the last decade, Bupa earned $3.3 billion in revenue and $293 million in profit, but only paid a total of $12 million in income tax – an effective tax rate of just four percent.

“In addition, a major intercompany loan appears to have reduced their taxable income by $150 million over the last decade. That could have cost Aotearoa up to $27 million in lost tax revenue over that period.”

E tū National Secretary Rachel Mackintosh says the report reveals a disturbing pattern.

“At the same time as Bupa is sending tens of millions overseas in interest payments on questionable debts to other Bupa subsidiaries, they’re pushing through dangerous new rosters that cut hours and destabilise care,” Rachel says.

“Care workers are rightly asking whether Bupa is putting tax planning ahead of providing safe, decent care for residents. In 2023, for instance, Bupa made $12 million in pre-tax profit but paid just $11,000 in corporate tax – that’s about what a Level 4 care worker pays.”

Rachel says while more funding is urgently needed for the sector, companies must also be held to account.

“We need increased investment in aged care, but with it must come transparency. New Zealanders deserve to know their taxes are going to support quality care, not just boost overseas profits.

“It’s time to put the wellbeing of our elderly and those who care for them at the centre of this system.”

MIL OSI New Zealand News –

May 5, 2025
MIL-OSI New Zealand: E tū union – mischievous or misinformed? – Aged Care Association Statement

Source: Aged Care Association

The E tū union is either being deliberately mischievous or is seriously misinformed about how aged residential care works in New Zealand, says Aged Care Association Chief Executive Hon. Tracey Martin.

The Post published a story last week based on a report titled Transparency and Corporate Tax Reforms to Improve the Efficiency of Aged Residential Care Funding, which has not been made public.

“To level public accusations based on an unreleased document, one that neither the targeted provider nor the public can scrutinise, is not only duplicitous but unethical.” says Ms Martin.

It is disappointing that E tū has chosen to spend time and money on what appears to be a flawed report, in an attempt to bully a particular provider into ceasing a change consultation process with their staff.

Without access to the full report, the Association can only respond to the comments attributed to the report’s authors and the union.

The claim that aged care providers may not be using government money appropriately is either a complete misunderstanding of how aged residential care is funded or a deliberate manipulation of the facts to push an alternative agenda.

Aged care is a complex environment, but at its core, the financial relationship is between Health New Zealand and the individual New Zealander who needs care.

Providers meet rigorous standards to be eligible to deliver aged residential care services to New Zealanders who are funded directly by the Crown.

The Aged Care Association had hoped for a more constructive relationship with E tū for the benefit of their members and ours, based on shared recognition that the funding model for the provision of aged care to senior New Zealanders is fundamentally broken and must be addressed with urgency.

The time and resource spent on this report would have been better directed toward advocating for an independent, cross-party taskforce (including union representation), to design a fit-for-purpose aged care funding model that delivers greater transparency for all, including everyday taxpayers.

Notes:

Funding for aged residential care is allocated as follows:

– Aged care providers are certified by government agency HealthCert as meeting criteria to deliver specific levels of care – e.g. Rest Home, Hospital, Dementia, or Psychogeriatric care.

– Certification does not entitle providers to any guaranteed funding. It simply confirms that they meet the required standards to deliver care, such as the required staff and facilities.

– Providers are subject to regular audits (both scheduled and unannounced) by independent auditors approved by HealthCert.

– Many of the standards audited relate directly to staffing levels, and the sector overwhelmingly respects and adheres to the voluntary safe staffing levels agreed with Government.

When a New Zealand senior is assessed by a NASC (Needs Assessment and Service Coordination) team as needing residential care, the Ministry of Social Development reviews their financial situation. If they qualify for support:

– They must first contribute their own income (e.g. superannuation or assets).

– The Government then tops up the difference between what they can afford and a capped amount that can be charged by any residential care provider for the provision of that care, with the capped amount set by the Director-General of Health.

– The individual and their whānau choose the care provider they wish to deliver that care to them.

– All financial agreements around the provision of care are between the government and the New Zealander needing care. None of our members receive a bulk grant from government or have a direct financial contract with government.

MIL OSI New Zealand News –

May 5, 2025

Category: Taxation

Yee-Fui Ng

Helen Hodgson

Intifar Chowdhury

“Phulera Ka Panchayati Raj” : A Digital Hit with a Self-Reliant HeartFinal Episode of the Three Part Series “Alhua Vikas” Highlights Local Taxes Fuel Local Progress

Legislative instruments released for comment

Income tax rates for the 2023–24 income year

Example 1: income tax payable by NFP company with $900 taxable income

Base rate entity

Not a base rate entity

Example 2: income tax payable by NFP company with $2,000 taxable income

Base rate entity

Non base rate entity

Who can use a non-lodgment advice

How to notify us

Our commitment to you

Copyright notice

Office of the Governor — News Release — Gov. Green Wins Passage Of Historic Climate Impact Legislation

Source: Aged Care Association

“Phulera Ka Panchayati Raj” : A Digital Hit with a Self-Reliant Heart

Final Episode of the Three Part Series “Alhua Vikas” Highlights Local Taxes Fuel Local Progress