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MIL-OSI USA News: ICYMI: Celebrating President Trump’s Incredible First 100 Days

Source: The White House

President Donald J. Trump has accomplished more in 100 days than most presidents do over an entire term — and he’s still just getting started. President Trump’s unprecedented work in the first 100 days has earned praise from across Capitol Hill and beyond.

Here’s what they’re saying:

Speaker Mike Johnson: “@POTUS has been able to do far more for the American people in the first 100 days than the Biden Administration did in four years. Thanks to the Trump White House, AMERICA IS BACK – and we’re just getting started.”

Senate Majority Leader John Thune: “It’s been 100 days of the new Trump administration, and @POTUS is delivering. Securing our southern border, restoring American strength, extending tax relief for Americans, unleashing American energy, saving taxpayer dollars, and restoring common sense.”

Senate Majority Whip John Barrasso: “In the first 100 days under @POTUS Trump, Republicans are fighting for the American people. Secure the border. Rebuild the economy. Restore peace through strength. Unleash American energy.”

Senate Republican Conference Chair Tom Cotton: “Joe Biden unleashed mass illegal migration across our nation during his time in office. In his first 100 days, President Trump ended the Biden Border Crisis by cracking down on criminals and following the law.”

Sen. Jim Banks: “100 days of securing the border… Thanks to President Trump’s strong leadership, the invasion along our borders is over!”

Sen. Marsha Blackburn: “Congratulations to President Trump on 100 days of Making America Great Again.”

Sen. Katie Britt: “President Trump has kept his promises in the first 100 days.”

Sen. Ted Budd: “From day one: clear goals, hard work, concrete results. At Day 100, @POTUS has built real momentum to deliver long-term prosperity for the American people — and he’s just getting started.”

Sen. Shelley Moore Capito: “Real leadership leads to real results. @SenateGOP and @POTUS are delivering on our promises in these 100 days to protect and secure our country.”

Sen. Bill Cassidy: “After 100 days, the results are clear: America is safer and the border is secure.”

Sen. John Cornyn: “I’ve worked hand-in-glove with President Trump to accomplish his agenda during his first 100 days.”

Sen. Mike Crapo: “President Trump has had phenomenal successes in his first 100 days. He has closed the border, revitalized our energy production, brought trillions of dollars of capital investment into the United States.”

Sen. Steve Daines: “In just 100 days, @POTUS has delivered win after win. Border crossings are at an all-time low, American energy is thriving & we’re kicking Biden and the left’s woke agenda to the curb. If this is what 100 days of progress looks like, can’t wait for what the future brings!”

Sen. Joni Ernst: “From a wide-open southern border to complete border security in just 100 days. That is the Trump effect.”

Sen. Chuck Grassley: “2day marks 100 days of Pres Trumps return 2 White House Ive seen the President working hard 2 KEEP HIS PROMISES + RESTORE COMMON SENSE Praise the Lord we hv a Commander in Chief who is standing on the platform he ran on& getting things done for the American ppl.”

Sen. Lindsay Graham: “In just 100 days, President Trump has delivered historic results for the American people… I look forward to continue working with the President and his team in the Senate to make sure we DELIVER his historic agenda to the American people.”

Sen. Bill Hagerty: “This has been the most effective, most impactful in a positive sense 100 days in my lifetime.”

Sen. Josh Hawley: “For the first time in decades, working Americans have a President who stands with them. Trump’s giving Americans their country back”

Sen. John Hoeven: “#100Days in, @POTUS has secured the border and now he’s empowering our energy producers to make the country energy dominant—removing barriers, driving growth, and restoring America’s place as the world’s energy leader.”

Sen. Jon Husted: “Daily border apprehensions have dropped 95% since @POTUS took office. Pres. Trump is following through on his promise to secure the border and safeguard Americans.”

Sen. Cindy Hyde-Smith: “Just 100 days in, @POTUS and the Senate Republicans are delivering for the American people – securing our border, rolling back harmful Biden policies, confirming Trump nominees, passing common-sense laws, and locking in a strong budget.”

Sen. Jim Justice: “100 days under @POTUS:
✔️American Energy Unleashed
✔️Border is secure
✔️Manufacturing is coming back to the states
✔️ West Virginia Coal making a comeback
President Trump is just getting started and I will keep working alongside him to get results for Americans!”

Sen. John Kennedy: “In just 100 days, President Trump has secured the border, fought racial quotas, and totally changed the national conversation about the budget.”

Sen. James Lankford: “An unprecedented 100 days under President Trump!” Let’s continue this moment for the American people—great job @POTUS.”

Sen. Mike Lee: “A HISTORIC FIRST 100 DAYS.”

Sen. Cynthia Lummis: “100 days of a stronger and safer America.”

Sen. Roger Marshall: “The President’s first 100 days is a return to American greatness.”

Sen. Dave McCormick: “We’re 100 days into the Trump Administration and we’re already seeing enormous change on behalf of the American people, just like the president promised.”

Sen. Ashley Moody: “Today marks President Trump’s first 100 days, and the country is already stronger and safer than it has ever been before.”

Sen. Jerry Moran: “In his first 100 days in office, President Trump has made our southern border safer by ending catch & release, signing the Laken Riley Act into law & reinstating Remain in Mexico. Illegal encounters at the southern border are down 95% thanks to these commonsense policies.”

Sen. Markwayne Mullin: “100 DAYS: PROMISES MADE, PROMISES KEPT.”

Sen. Rand Paul: “100 days of cutting government waste, securing the border, pursuing peace abroad, and simply restoring sanity to the American people.”

Sen. Pete Ricketts: “In his first 100 days in office, President Trump has delivered for the American people.”

Sen. Jim Risch: “100 days of America First”

Sen. Rick Scott: “President Trump is delivering on his promises to make our country safer, our economy stronger, and America Great Again!”

Sen. Tim Scott: “How do you describe 100 days of President Trump? Promises made, promises kept.”

Sen. Eric Schmitt: “100 days of putting America first. Us”

Sen. Tim Sheehy: “Whether it’s ending Biden’s border crisis, unleashing American energy, bolstering our military and restoring American strength, or securing better deals for hardworking families, @POTUS has delivered win after win in his first 100 days.”

Sen. Dan Sullivan: “Congratulations @POTUS on 100 days in office and thank you in particular for working to unleash Alaska’s extraordinary resource potential!”

Sen. Tommy Tuberville: “He’s done an outstanding job A+, we continue to even get better because he’s solving more problems everyday Thank you, President Trump for what you’ve done!”

Sen. Roger Wicker: “Mr. President you’re bringing the kind of peace through strength our children will talk about fifty years from now- we thank you.”

House Majority Leader Steve Scalise: “Today marks 100 DAYS of President Trump and Republican majorities in Congress. … America First and common sense are BACK. And we’re just getting started. Promises made. Promises kept.”

House Majority Whip Tom Emmer: “100 days in, President Trump is delivering for the people of Minnesota.”

House Republican Conference Chair Lisa McClain: “Today, @HouseGOP celebrates POTUS’ historic first 100 days in office. He has delivered on his promises to secure the borders, restore energy independence, show peace through strength, and make America COMPETITIVE.”

House Republican Leadership Chair Elise Stefanik: “President @realDonaldTrump is securing our borders, reining in inflation, unleashing American energy dominance, combatting antisemitism, supporting the rule of law, and restoring American greatness and peace through strength on the world stage.”

Rep. Mark Alford: “100 days ago, America was on the brink. Today, because of President Trump: Hope is back. Strength is back. America is BACK.”

Rep. Rick Allen: “Promises made, promises kept. In just 100 days, @POTUS has delivered:
✅ A secure border
✅ Safer communities
✅ Energy independence
✅ Job growth
✅ Lowers costs for essentials like gas and eggs
The list goes on and we’re just getting started!”

Rep. Jodey Arrington: “In the first 100 days of President Trump’s second term our nation has experienced unprecedented achievements in a new era of American politics defined by competent leadership, common sense policies, and a commitment to America first.”

Rep. Brian Babin: “100 days in and America is roaring back to life. The economy is up. The border is secure. Our pride is restored. The American comeback is here. FIGHT, FIGHT, FIGHT!”

Rep. Don Bacon: “I commend the Trump Administration for tackling these campaign promises in the first 100 days:
✅ Restoring energy independence & bringing prices under control
✅ Securing our border with 95% drop in illegal crossings
✅ Taking decisive action against the Houthis
The border and energy independence were top priorities this past Nov.”

Rep. Jim Baird: “In 100 days, POTUS and his administration have been reversing the disastrous Biden-era policies and are working hard to usher in the Golden Age of America. Promises made. Promises kept.”

Rep. Troy Balderson: “In President Trump’s first 100 days, he has…
us Secured the border
Unleashed American energy
Rooted out government waste
Added 345,000 jobs
…and we’re just getting started”

Rep. Andy Barr: “President @realDonaldTrump’s first 100 days have been nothing short of historic. I’m honored to stand with him as we secure the border, unleash American energy, rebuild our economy, and put America First again. Together, we’re delivering the results the American people demanded.”

Rep. Tom Barrett: “In President Trump’s first 100 days, we’ve teamed up to secure the border, bring manufacturing jobs back, and unleash American energy.
🚨 Illegal border crossings are at historic lows.
The Laken Riley Act is signed into law.
📉 Inflation and energy prices are falling..
🚔 We are making our communities safe again.
America First is back and we’re just getting started. #100Days”

Rep. Michael Baumgartner: “On National Fentanyl Awareness Day, we celebrate the progress made with record low border crossings. President Trump’s first 100 days in office set the stage for this success. Let’s continue the fight to eradicate fentanyl and protect our communities.”

Rep. Aaron Bean: “We’re celebrating #100Days of President Trump in office, and one thing is abundantly clear: America’s future is looking up! Since day one, POTUS has understood the assignment: undo the damage done by the previous administration and usher in the Golden Age of America. Working together at historic speed, we are securing our border, slashing wasteful spending, reviving our economy, and defending our American values.”

Rep. Stephanie Bice: “100 days of bringing back America first policies.”

Rep. Gus Bilirakis: “One of President Trump’s biggest success stories in his first 100 days is enhanced border security. U. S. Customs and Border Protection now has total control of the border, with daily border encounters down by 93%. March of 2025 saw the lowest monthly number of border encounters in recorded history. Also, in March of 2025, fentanyl traffic at the southern border fell by 54% compared to March of 2024. To date, the Trump Administration has also arrested more than 151,000 illegal aliens and has deported over 135,000. This includes 600 members of Tren De Aragua and thousands of MS-13 and 18thStreet Gang members. We will continue to get dangerous predators off our streets!”

Rep. Andy Biggs: “President Trump has done more for our country in his first 100 days than Democrats could dream of accomplishing in four years. Countless nations have already reached out to amend unfair trade practices.”

Rep. Sheri Biggs: “100 Days of Results: President Trump promised to secure our border—and he’s delivered. Illegal crossings are down 94%, catch & release is over, and the border is finally under control.”

Rep. Mike Bost: “What a difference 100 days make! Border apprehensions dropped by 94%, gas prices are down 6.3%, and egg prices have fallen by 56%. Over 100,000 illegal aliens have been deported, and U.S. manufacturing is roaring back.”

Rep. Josh Brecheen: “We have seen tremendous progress at our borders due to President
@realDonaldTrump taking decisive action in his first 100 days:
• Daily border encounters are DOWN by 93%.
• Over 135,000 illegal aliens have been DEPORTED.
• Illegal alien crossings are DOWN by 99.99%.
Promises made, promises kept!”

Rep. Vern Buchanan: “In his first 100 days, POTUS has delivered on his promises.”

Rep. Eric Burlison: “✅ Illegal crossings down 94%
✅ $Trillions in private investments
✅ Ended the Green New Scam
✅ Peace Through Strength
✅ Protecting women in sports
Still not tired of winning.”

Rep. Ken Calvert: “In the four years of Joe Biden’s presidency the border was in chaos as illegal immigrants and deadly drugs flowed unchecked into America. In the first 100 days of Donald Trump’s presidency order and security has been restored at the border.”

Rep. Kat Cammack: “In 100 days, President Trump has protected women and girls’ sports, reduced illegal border crossings by 95%, removed dangerous criminals from the U.S., protected our children, enhanced transparency, and more!”

Rep. Buddy Carter: “It’s been a historic and productive first 100 days of the second Trump Administration. From securing the southern border to reestablishing fair trade deals and unleashing American energy dominance, this presidency can be defined by one word: efficiency.”

Rep. Juan Ciscomani: “.@POTUS Trump delivered on his promise to secure the border in his first 100 days – and it’s making a real difference for families in #AZ06.Just ask Jim and Sue Chilton. Under President Biden, their ranch saw 5,640 illegal crossings in April 2024. Under President Trump, things have changed for the better. In April 2025, they recorded ZERO crossings in a span of three weeks — a direct result of President Trump’s strong border policies. ✅Promises made, promises kept!”

Rep. Ben Cline: “Trump’s first 100 days are a new era of American renewal”

Rep. Michael Cloud: “The difference is undeniable. In just 100 days, President Trump has reversed the failures of the Biden administration and put America back on the path to greatness.”

Rep. Andrew Clyde: “Today marks 100 days of President Trump putting America FIRST!”

Rep. Mike Collins: “This has been the most consequential first 100 days in any American presidency.
✅The border crisis is solved.
✅Domestic manufacturing is back.
✅America is respected again.
✅DEI is dead.
100 down and 1362 to go.”

Rep. James Comer: “100 Days. President Trump has delivered on dozens of promises made to the American people… America’s future is bright under President Trump’s leadership.”

Rep. Eli Crane: “Thank you, President Trump, for ending the premeditated border invasion. We didn’t need new legislation. We just needed a new President.”

Rep. Dan Crenshaw: “Today marks President Trump’s 100th day back in office. He promised action, and he’s delivering it. If you listened during the campaign, you knew this was coming — promises made, promises kept”

Rep. Warren Davidson: “President Trump in his first 100 days:
– Secured the border
– Removed woke ideology from the military
– Eliminated billions in fraud and abuse
– Deported over 100K illegal aliens
Best sequel EVER”

Rep. Monica De La Cruz: “During his first 100 days, President Trump stood up for South Texas farmers and ranchers — demanding Mexico honor its water delivery commitments, and he has delivered. Thank you, @POTUS! #PromisesMadePromisesKept”

Rep. Mario Diaz-Balart: “100 days of SUCCESS with President Trump back in the White House—leading with strength, and laying the foundation for prosperity and peace for America to be the global powerhouse for generations to come.”

Rep. Byron Donalds: “THE BEST IS YET TO COME”

Rep. Troy Downing: “President Trump in his first term talked about promises made, promises kept. This time, it’s on steroids.”

Rep. Neal Dunn: “100 days in, and the Trump administration has already achieved countless victories! From plummeting illegal border crossings to swift downsizing of the bloated federal bureaucracy, President Trump is delivering for the American people!”

Rep. Ron Estes: “Today marks 100 days of President Trump’s second term. @POTUS and House Republicans have been hard at work to turn the page on four years of open borders, a sluggish economy and runaway federal spending. In just 100 days, border encounters are down 95%, hostages have returned home, violent criminals are being deported, more than $5 trillion in new investments have been secured, and the Department of Government Efficiency has saved taxpayers $160 billion (that’s an average saving of $1.6 billion every day). But we’re just getting started – we’re working to extend the 2017 Tax Cuts and Jobs Act, preserve and protect Social Security, reduce wasteful spending and restore our energy independence.”

Rep. Mike Ezell: “During @POTUS’s first 100 days, the Coast Guard has worked around the clock to defend our maritime borders and stop the flow of illegal drugs and migrants. I’m proud that President Trump is recognizing their hard work—service that too often goes unnoticed but is vital to our national security.”

Rep. Pat Fallon: “President Trump’s border security measures have yielded incredible results in 100 days. With 113,000 arrests, over 100,000 deportations, and a 94% reduction in illegal crossings, his policies are in the best interest of all Americans and public safety.”

Rep. Julie Fedorchak: “Today is the 100 day marker for @POTUS Trump. He is tackling big issues that have long been ignored.
✅ Illegal border crossings are down 95%. Turns out we didn’t need new laws. We needed a new President that would actually enforce them.
✅ American energy is on the move. We are aggressively and responsibly developing our nation’s abundant, diverse natural resources.
✅ President Biden’s stifling regulations are being rolled back—lifting burdens off our farmers, businesses, and energy producers.
✅ Government waste, fraud and abuse is being identified and eliminated.
Promises made. Promises kept.”

Rep. Randy Feenstra: “In just 100 days, President Trump has achieved incredible victories for our country. He locked down our border, deported violent criminals, repealed ridiculous Biden-era regulations, and rooted our waste, fraud, and abuse in our government.”

Rep. Brad Finstad: “In his first 100 days in office, President Trump has delivered on his promises, with over 300,000 new jobs created, strengthened border security, and an improved economic outlook for our nation. Together, we will continue working to restore the American Dream by making our communities safer and addressing the kitchen-table issues that matter most to the American people.”

Rep. Michelle Fischbach: “In his first 100 days, @POTUS has signed the Laken Riley Act into law, has dangerous gangs and cartels shaking in their boots, and has shut our borders to illegal immigrants.”

Rep. Scott Fitzgerald: “Only 100 days in, and @POTUS has delivered real results… I’m proud to stand with President Trump and the America First agenda!”

Rep. Chuck Fleischmann: “In his first 100 Days, @POTUS is taking strong action to get America back on track! President Trump has:
Secured our borders.
Ended the war on American-made energy.
Begun rebuilding our economy.
Signed the Laken Riley Act into law.
Restored commonsense in government.”

Rep. Vince Fong: “In his first 100 days, President Trump has relentlessly pursued policies that are delivering on his promises to Central Valley families and the American people as we speak.”

Rep. Scott Franklin: “100 days back in the White House and the results speak for themselves… America is back on the path to strength, security and prosperity!”

Rep. Russell Fry: “President Trump’s first 100 days in office have been the MOST SUCCESSFUL IN THE HISTORY OF THE COUNTRY.”

Rep. Brandon Gill: “President Trump’s historic presidency delivered major wins for the American people in his first 100 days.”

Rep. Craig Goldman:” For years, we had a President who allowed millions of illegal aliens to flood across our borders. In 100 days, @POTUS has secured the border. The difference is clear:
✅ Daily apprehensions are down 94%
✅ Known gotaways are down 90%
✅ 100,000+ illegal aliens have been deported”

Rep. Tony Gonzales: “Illegal Border Crossings⬇️95%
Unleashing American Energy
Water Deliveries from Mexico to South Texas
Empowering LEOs to Tackle Crime & Protect our Communities
And we’re just getting started! #100Days”

Rep. Lance Gooden: “Just 100 days into President Donald Trump’s second term, the answer is resounding: Yes, we are better off.”

Rep. Sam Graves: “In his first 100 days, President Trump has moved quickly to secure the border, unleash American energy production, and get rid of burdensome regulations… It’s exactly what the American people voted for.”

Rep. Mark Green: “In less than three months, President Trump has restored law and order to our nation’s borders, removed criminal illegal aliens from our communities, and helped ensure the safety of the American people by empowering DHS law enforcement to do their jobs.”

Rep. Marjorie Taylor Greene: “The American people & I are SO happy with the work President Trump has done the last 100 days! Our nation is safer, common sense has been restored, and America is being put first!”

Rep. Glenn Grothman: “In his first 100 days, President Trump delivered more for the American people than Joe Biden had in four years. He’s keeping his promises, prioritizing American interests, securing our border, and leading with transparency. In the House, we’re building on that momentum to deliver real results that honor the American people’s electoral mandate.”

Rep. Brett Guthrie: “Today marks the first 100 days of President Trump’s Administration. @POTUS has delivered on his promises of securing our border, unleashing American energy and repealing burdensome red tape. Promises made, promises kept.”

Rep. Harriet Hageman: “In his first 100 days, President Trump has fixed a lot of what Biden and Kamala Harris broke and he’s on track to do a lot more.”

Rep. Abe Hamadeh: “Promises made. Promises kept. Congratulations to @POTUS on an incredibly successful First 100 Days!”

Rep. Mike Haridopolos: “President Trump is keeping the promises that he made to the American people. Just 100 days in, we’re already seeing the RESULTS.”

Rep. Pat Harrigan: “100 days in, the Trump Doctrine holds firm: American interests first, American sovereignty always.”

Rep. Mark Harris: “It’s been 100 days of:
✅Restoring common sense
✅Protecting Americans from criminal illegals
✅Rooting out government waste, fraud, and abuse
Looking forward to the next 1361 days!!”

Rep. Diana Harshbarger: “100 days of investing in America… Promises Made, Promises Kept.”

Rep. Kevin Hern: “The last 100 days have gone by quickly but so much has happened. POTUS is moving at record pace to RESTORE American strength, SAVE taxpayers’ money, and PROTECT our national security and sovereignty.”

Rep. Clay Higgins: “100 days of MAGA. President Trump’s administration is restoring common sense, securing our border, unleashing America’s energy potential, and attacking waste, fraud, abuse, and theft in the bureaucracy.”

Rep. Ashley Hinson: “Closing in on 100 days of President Trump back in the Oval, and the results speak for themselves: strong and CLOSED borders, American energy back on top, peace through strength restored on the world stage, and a more competitive America. Promises made, promises kept.”

Rep. French Hill: “100 days into his second term, and President Trump continues to move with unprecedented speed to deliver on the promises made to the American people. America is back on the path to restoring our strength, security, and prosperity. I’m looking forward to building on these early wins to lower costs, expand opportunity, and make the Trump tax cuts permanent for working families, small businesses, and the middle class.”

Rep. Erin Houchin: “President Trump is off to a strong start! In just 100 days, he’s delivering on his promises to secure our border, rebuild our economy, and restore law and order. Proud to stand with him as we fight to put America First again!”

Rep. Bill Huizenga: “President Trump is delivering on promise after promise for the American people. In just 100 days, he has secured our border, unleashed American energy, and restored common-sense regulatory policies to Washington. And we are just getting started!”

Rep. Wesley Hunt: “100 Days in and Trump is keeping his promises.
– 345,000 New Jobs
– 4th highest Payroll Growth in 2 years
– 9,000 New Manufacturing Jobs
– Unemployment Rate Decreased
– Consumer Price Decline
– Hourly Wage Growth”

Rep. Jeff Hurd: “I commend @POTUS and @HouseGOP for delivering on key promises in the first 100 days:
✅ Establishing energy dominance for rural America
✅ Securing our borders with a significant drop in illegal crossings
✅ Reviving the coal industry and identifying coal resources on federal lands”

Rep. Darrell Issa: “In only 100 days, @realDonaldTrump ended the Biden border crisis, extended economic opportunity, slashed billions in government waste, and restored our standing in the world. This is setting the pace for the next four years as we Make America Great Again.”

Rep. Jim Jordan: “President Trump said he’d stop federal censorship, defend religious liberty, and promote school choice. He’s done all of it. Promises made. Promises kept.”

Rep. Mike Kelly: “In just his first 100 days, President Trump has:
– Cracked down on illegal immigration – Compared to March 2024, Southwest border apprehensions have decreased by 94% and Northern border land encounters have decreased by 73%.
– Expanded American energy production
– Secured trillions of dollars in new U.S.-based economic investment
– Brought jobs back to the U.S. and restructured trade negotiations
– Restored accountability and transparency in government
– Secured the release of Butler County native Marc Fogel and freed hostages

@POTUS and @HouseGOP are putting America first!”

Rep. Trent Kelly: “Today marks the 100th day in office for President Donald Trump. During this time, the Trump administration has made significant progress and worked quickly to fulfill his promises by securing the border, restoring energy independence, strengthening national defense, and boosting American competitiveness.”

Rep. Brad Knott: “Never have the first 100 days of a presidency been so consequential. Following four years of disastrous and destructive policy from Biden-Harris, Americans were eager to see big, sweeping change and @POTUS delivered.”

Rep. David Kustoff: “President Trump Has Kept His Promises in the First 100 Days!
1. Strengthened border security, slashing illegal crossings to record lows 🚓
2. Fueled growth in U.S. manufacturing and industrial production 🏭
3. Curbed inflation, easing the cost-of-living crisis for Americans 💸
4. Enacted the Laken Riley Act to ensure justice for crime victims ⚖️
5. Combatted Tren de Aragua and MS-13 gangs in American communities 🚨
6. Cracked down on sanctuary cities, upholding federal immigration laws 🔒
7. Championed energy independence through robust oil and gas expansion ⛽️
8. Lifted the natural gas export ban, cementing U.S. energy dominance 🛢️
9. Dismantled DEI policies in government and DoD, recognized only male/female genders 🚻
10. Declassified JFK and RFK records for transparency 📂
11. Reduced the amount of federal bureaucracy 🏛️”

Rep. Darin LaHood: “President Trump’s first 100 days have secured our border, made our communities safer, and put U.S. foreign adversaries on notice.”

Rep. Doug LaMalfa: “In just 100 days, President Trump has delivered the most secure border this country has seen in modern history. Illegal crossings are down 95%, gotaways have dropped by 99%, and catch-and-release is over. Over 139,000 illegal immigrants have been deported, construction on the border wall is back underway, and Kamala Harris’ migrant app has been shut down for good. Violent gangs like Tren de Aragua and MS-13 are being dismantled, sanctuary cities are finally being held accountable, and the Trump administration is making clear that migrant crime will not be ignored — signing the Laken Riley Act into law to deliver justice for American families. Promises made, promises kept.”

Rep. Bob Latta: “Today marks @POTUS’s first 100 days in office. From day one, he has prioritized the American people, working to eliminate waste, fraud, and abuse. Proud to work with
@HouseGOP and President Trump to make life better for people in Ohio and across the country. Promises made, promises kept.”

Rep. Nick Langworthy: “100 days of President Trump putting America First… and we are just getting started.”

Rep. Laurel Lee: “In his first 100 days in office, President Trump is driving the American dream forward at a historic rate by securing American manufacturing, unleashing American energy, and supporting American-owned businesses.”

Rep. Julia Letlow: “In 100 days President Trump has: reduced illegal border encounters by 95%, reduced total migrant crossings by nearly 100%, ended the Biden Border Crisis.”

Rep. Barry Loudermilk: “Marking 100 days into his presidency, @POTUS continues to deliver on his promises to Make America Great Again.
• 26 hostages freed from adversarial nations
• Women’s sports protected
• Unleashing the American worker and industry
• $5 trillion in new investments/trade commitments secured
All we needed was a different President.”

Rep. Anna Paulina Luna: “In 100 days, President Trump has: Secured our border, declassified the JFK+RFK files, deported thousands of illegal alien thugs, protected American manufacturing & workers, started eliminating rampant waste, fraud, and abuse, crushed DEI in academia & business.”

Rep. Morgan Luttrell: “President Trump is ushering in a Golden Age of America.

✅ 100k+ illegal aliens deported
✅ Gas prices down
✅ Border crossings down 94%
✅ Eggs down 56%
✅ 228,000 jobs in March”

Rep. Nancy Mace: “100 days of holding the line. Thank you President Donald J. Trump.”

Rep. Tracey Mann: “On Inauguration Day, President Trump promised he would usher in the Golden Age of America. 100 days into his historic second term, he is delivering just that for the American people. Promises made, promises kept.”

Rep. Brian Mast: “Today marks 100 days of President Trump’s historic second term. We’re closing the border, bringing investments and manufacturing back to America, and reducing inflation. But we’re just getting started.”

Rep. Nicolle Malliotakis: “From securing our border and deporting criminals to attracting trillions in private investment to negotiating the release of dozens of hostages, it’s been a fast & furious first 100 days!”

Rep. Michael McCaul: “The American people gave a mandate to secure the border, and
@POTUS delivered. Today, on his 100th day in office, @HomelandGOP is working to fully fund his border security agenda & protect the homeland for years to come.”

Rep. Addison McDowell: “During President Trump’s first hundred days, the Coast Guard has defended our maritime border and stood on the front lines against illegal drugs and migrants. President Trump has made it clear—their hard work matters, and it won’t go unnoticed.”

Rep. John McGuire: “President Trump promised a secure border. In his first 100 days, border encounters are down 95%.”

Rep. Mark Messmer: “In just 100 days, @POTUS is restoring American Greatness with…
✅ Secure borders
✅ Energy independence
✅ Lower grocery prices
✅ Peace through strength”

Rep. Dan Meuser: “In just 100 days President @realDonaldTrump has worked to strengthen our national security, create an America-First economy, deliver savings for taxpayers, restore global leadership, and bring commonsense back to Washington. The border is secure, American energy is recovering, jobs are coming back, inflation is falling, and our military recruitment is surging — among much more. President Trump has a plan that will lead to long-term success for the United States.”

Rep. Mary Miller: “As we reach the first 100 days of President Donald Trump’s second term in the White House, it is abundantly clear: Christians across America once again have a powerful, unapologetic advocate in the Oval Office.”

Rep. Mariannette Miller-Meeks: “Today marks 100 days since @POTUS returned to the White House, and @HouseGOP is hard at work delivering on his America First agenda!”

Rep. Riley Moore: “It’s been an incredible first 100 days for @POTUS
✅ Sealed the border
✅ Deporting violent criminals
✅ Lowering prices & reversing inflation
✅ Only 2 genders
✅ Over $5 trillion in private investment
✅ Negotiating free and fair trade relationships
Commonsense is back!”

Rep. Tim Moore: “Since Day 1, President Trump has made it clear that rebuilding Western North Carolina and helping Hurricane Helene victims was one of his top priorities. 100 days in, there’s still a lot of work to do, but President Trump has completely turned around the federal response.”

Rep. Nathaniel Moran: “Great visiting with local and national media to highlight @POTUS successes during his first 100 days in office. We’ve delivered real results as a party—but there’s still more work to do for the American people. I look forward to advancing President Trump’s agenda in the days ahead and keeping our commitment to putting America First.”

Rep. Troy Nehls: “Today marks President Trump’s first 100 days back in the White House.
Border is secured.
Gas prices are dropping.
DEI is dead.
Historic investments secured.
American energy is back.
Common sense is restored.
Protected women’s sports.
We just keep winning!”

Rep. Ralph Norman: “Within a mere 100 days – Gas prices have dropped 7%, energy prices are down 2%, egg prices dropped over 50%. @POTUS has delivered for the American people!! Welcome to the GOLDEN AGE!”

Rep. Zach Nunn: “After 100 days of Biden: 451,063 CBP Apprehensions
After 100 days of Trump: 21,528 CBP Apprehensions
⬇️ Apprehensions down 95%
⬇️ Migrant crossings down 99.99%
✅ Iowa communities safer & more secure”

Rep. Andy Ogles: “It’s working — thanks to President Trump, ‘Made in Middle Tennessee’ is back and stronger than ever.”

Rep. Burgess Owens: “President @realDonaldTrump brought back something Washington had lost: America First leadership. 100 Days of historic and unprecedented wings for our nation. Promises made. Promises kept. us”

Rep. Gary Palmer: “In his first 100 days, President Trump has brought common sense back to the White House.”

Rep. Jimmy Patronis: “Since @POTUS took office and reversed Biden’s burdensome regulations, Americans have enjoyed 100 days of lower prices.
📉A/Cs
📉Gas Stoves
📉Water Heaters
📉Lightbulbs
📈WINNING
Having a strong quarterback in the White House matters; and it’s just the first quarter”

Rep. August Pfluger: “The first 100 days have set the foundation, the next 100 days will build the framework, and the next 100 years will showcase the lasting legacy of conservative governance done right.”

Rep. Guy Reschenthaler: “100 days of American greatness — and many more to come”

Rep. Hal Rogers: “Celebrating @POTUS ‘s first 100 days in office and the positive impact he is having in our country, including:
-Securing our borders
-Putting drug cartels on the run
-Ending unfair trade policies
-Restoring commonsense, conservative policies that protect the American people
-Strengthening our domestic energy supply, and much more.”

Rep. Mike Rogers: “President Trump has accomplished more in 100 days than Biden did in his entire presidency. I am proud to see an America that is stronger and safer than it was 100 days ago.”

Rep. John Rose: “In just 100 days, President Trump and his administration have accomplished more than Joe Biden did in four years.”

Rep. David Rouzer: “President Trump is ushering in a new Golden Age of America!
✅ Restarted construction of the southern border wall
✅ Created 345,000 jobs
✅ Unlocked America’s Energy potential—bringing gas prices down 6.3%
✅ Reversed Biden-era rules – saving the average family of four $11,000
✅ Ended DEI in the military and government”

Rep. Mike Rulli: “100 Days of Action. 100 Days of Results.
President Trump is keeping his promises to the American people:
🛑 Secured the border & ended catch-and-release
🧱 Restarted the wall & deported criminal illegals
⚡ Declared a National Energy Emergency
💸 Slashed waste, fraud & DEI bloat
🏗️ Bringing jobs back through smarter trade”

Rep. Maria Elvira Salazar: “Biden left us an open border. Now, border crossings are down 99 percent, criminals are being held accountable, and American manufacturing is coming back. It’s only the beginning.”

Rep. Derek Schmidt: “✅ Secured the border
✅ Lowered inflation
✅ Unleashed American energy
✅ Eliminated waste, fraud, & abuse
✅ Reestablished peace through strength
@POTUS’ first 100 days have been success after success- and he’s just getting started. us”

Rep. Keith Self: “President Trump’s first 100 days embody the spirit of leadership, strength, and America First values. By upholding Reagan’s legacy of peace through strength, he fights to secure our nation and defend our freedoms. Thank you, @realDonaldTrump!”

Rep. Jefferson Shreve: “Today, we mark 100 days of promises made and promises kept. .@HouseGOP
and the @WhiteHouse have been delivering — for the American people.

✅Securing our southern border
✅Unleashing American energy dominance
✅Deporting terrorists and illegal criminals
✅Investing in American manufacturing
✅Saving billions of dollars for the American taxpayers”

Rep. Mike Simpson: “100 Days: @POTUS has delivered promise after promise to make America safer, more prosperous, and stronger. From securing our southern border to reducing regulations and restoring government transparency, President Trump has followed through for the American people.”

Rep. Jason Smith: “President Trump’s first 100 days in office have been 100 days of promises made, promises kept.”

Rep. Lloyd Smucker: “Promises made, promises kept. I’m proud to work alongside the Trump administration to extend tax relief for hardworking families and small businesses, cut government waste, secure our border, unleash American energy dominance, and achieve peace through strength.”

Rep. Pete Stauber: “In his first 100 days, President Trump has delivered major wins for the American people:
✅Secured the border.
✅Deported violent illegal gang members.
✅Unleashed American energy and lowered gas prices.
✅Reduced government waste.
✅Protected women’s sports.
✅Boosted military recruitment.
✅Brought hostages home.
Promises made, promises kept!”

Rep. Greg Steube: “They laughed. They doubted. They lied. But President Trump DELIVERED. The border is secure. DEI is DEAD. Women’s sports are protected. This is what fighting for America looks like. And we’re just getting started.”

Rep. Dale Strong: “In his first 100 days, @POTUS has delivered real results for the people of North Alabama. From strengthening national security to fueling job growth and reinvigorating American industry, Trump is taking action to push back against the failed policies of the radical left that weakened America’s economy, values, and institutions.”

Rep. Dave Taylor: “President Trump is on a roll. In his first 100 days in office he has:
– Lowered border encounters by 95%
– Created 345,000 jobs
– Signed the Laken Riley Act into law
– Invested in American energy & manufacturing
– Repealed restrictive Biden-era regulations
Republicans are ready to work with President Trump to deliver on his mandate. And we’re just getting started!”

Rep. Claudia Tenney: “President Trump has had a more productive first 100 days than any other president in history!”

Rep. Tom Tiffany: “President Trump delivered in just 100 days.
Secured the border.
Lowered gas prices.
Ended DEI programs.
Boosted investments.
Cut government waste.
Brought hostages home.
Deported gang members.
Protected women’s sports.
Revived military recruitment.
Promises made. Promises kept.”

Rep. Glenn Thompson: “Over the past 100 days, President Trump has worked tirelessly to secure our border, unleash American energy, and root out waste, fraud, and abuse in our government. Promises made, promises kept.”

Rep. William Timmons: “President Trump did more in 100 days than Joe Biden did in four years.”

Rep. Jeff Van Drew: “In just 100 days, President Trump did what Biden wouldn’t in four years:
✅ Laken Riley Act: signed
✅ Remain in Mexico: reinstated
✅ CBP One App: shut down
✅ Catch and Release: ended
✅ Criminal illegals: deported
Biden opened the floodgates and Trump slammed them shut.”

Rep. Beth Van Duyne: “100 days in and we are not tired of winning!
✅ Secured the border.
✅ $5+ trillion in new private U.S. investment
✅ Unleashed American Energy
✅ Lowered prices
✅ Negotiating for free and fair trade”

Rep. Derrick Van Orden: “Over 77 million Americans and 1.7 million Wisconsinites put their trust in President Trump to get our nation back on track after four years of disastrous policy from the Biden administration. In just 100 days, President Trump has delivered on his promises to the American people.”

Rep. Tim Walberg: “100 days in, Trump creating new Golden Age.”

Rep. Randy Weber: “President Trump has been in office 100 GREAT days. Thank you for finally putting Americans FIRST. A new era of greatness has begun for our great country.”

Rep. Daniel Webster: “President Trump is getting our country back on track. In just the first 100 days, @POTUS:
✅ Secured the border – 94% drop in illegal crossings.
✅ Unleashed American energy – gas prices have fallen 6.3%.
✅ Secured trillions in new U.S. based investments, and brought back American jobs.
✅ Restored peace through Strength.
✅ Cut waste, fraud, and abuse in the federal government.
The Golden Age of America has only just begun.”

Rep. Tony Wied: “100 days of a secure border, 100 days of eliminating waste in our government, 100 days of unleashing American energy, 100 days of putting America First.”

Rep. Roger Williams: “In just 100 days under @POTUS, Illegal border encounters are DOWN by 95% and gotaways are DOWN by 99%.”

Rep. Joe Wilson: “Today marks 100 days since President Donald Trump took back the White House, and along with the Republican-led House and Senate, immediately began Promises Made, Promises Kept, delivering for American families. In just 100 days, the Trump administration has secured the borders, restored energy independence, began Peace Through Strength, and brought massive investments and jobs, making America competitive again. President Trump is keeping his promises to families, making the country strong, safe, and secure.”

Rep. Steve Womack: “In the first 100 days, @POTUS Trump has delivered huge wins for our nation, securing our borders and halting the surge of illegal crossings witnessed under Biden. National security begins with strong border policies, and I’m pleased to see this administration making it a top priority.”

Rep. Rudy Yakym: “100 days of promises made, promises kept
✅Illegal border crossings down 95%
✅Deporting violent criminals
✅Bringing dozens of hostages home
✅Restoring peace through strength
✅Unleashing American energy”

Rep. Ryan Zinke: “First 100 days of @POTUS by the numbers:
📉Border encounters down 88% since last year
📉Gas Prices down 6.3%
📉Eggs prices down 56%
📈10,000 new manufacturing jobs
📈 8,900 new auto jobs
➡️ over 100,000 illegal aliens deported”

Vice President JD Vance: “President Trump has made historic progress in the first 100 days of his presidency, but he’s also revealed the ways in which the entrenched bureaucracy in Washington is working to undermine the will of the American people. Thank God, we have a president who is fighting back.”

Secretary of the Treasury Scott Bessent: “Bringing down persistent Bidenflation has been a priority for the first 100 days of the Trump administration, and @POTUS has done a great job of leading that effort.”

Attorney General Pam Bondi: “This is all at Donald Trump’s directive, and this is what all of us have been doing, as a team, since Day One when he took office – Make America Safe Again.”

Secretary of Energy Doug Burgum: “100 Days of promises made, promises kept! This administration is bolstering our national security, reducing inflation, ending our reliance on foreign adversaries, & cementing this country as a global energy powerhouse.”

Secretary of Veterans Affairs Doug Collins: “The first 100 days of the second Trump Administration have been full of great news for America’s Veterans. Under @POTUS’ leadership, we are putting Veterans first!”

Secretary of Labor Lori Chavez-DeRemer: “In just the first 100 days, we’re witnessing a resurgence of the grit, determination, and ingenuity that built our country into a shining city on a hill.”

Secretary of Transportation Sean Duffy: “From zero to 100 days: How Donald Trump is revolutionizing transportation.”

Director of National Intelligence Tulsi Gabbard: “President Trump’s first 100 days have delivered historic change for the American people, to make our country more safe, secure, and free.”

Secretary of Health and Human Services Robert F. Kennedy, Jr.: “The first 100 days of the Trump administration have been historic—a critical course correction for a nation suffering from chronic disease and the stranglehold of corporate power.”

Small Business Administration Administrator Kelly Loeffler: “No better place to celebrate the wins of President Trump’s first 100 Days than with America’s small businesses and workers. In record time, he’s delivering the strongest pro-growth agenda in modern history– to help Main Street hire, build, and boom again.”

Secretary of Education Linda McMahon: “The American people gave us a historic mandate to restore our education system. We’re 100 days in, and we’re just getting started.”

Secretary of Homeland Security Kristi Noem: “Under the leadership of President Donald J. Trump, we have the most secure border in American history. In less than 100 days, daily border encounters are down 93%… The world is hearing our message: do not come to this country illegally. If you do, we will arrest you, deport you and you will not be allowed to return.”

Secretary of Agriculture Brooke Rollins: “As President Donald J. Trump ushers in a new golden age of prosperity for our economy, we are fighting to give farmers and ranchers a seat at the table. For far too long, the hardworking Americans who feed, fuel, and clothe the world were left on the sidelines. At USDA, I am reversing the policies of the Biden Administration that actively made life harder for America’s farmers and ranchers and instead pushing to expand market access and unleash prosperity for generations to come.”

Secretary of Housing and Urban Development Scott Turner: “After 100 Days of President Trump’s leadership, we are well on our way to restoring the American Dream.”

National Security Advisor Mike Waltz: “One hundred days into President Trump’s historic second term, America is far safer than it was during Joe Biden’s disastrous presidency.”

Secretary of Energy Chris Wright: “100 days in—President Trump’s leadership is turning policy into power.”

MIL OSI USA News –

April 30, 2025

MIL-OSI Economics: Development Asia: Rethinking Personal Income Taxation in Asia and the Pacific: Future Directions

Source: Asia Development Bank

Personal income taxes remain weak in the developing countries of the region. Several factors have contributed to this weakness, including a rapidly changing economic environment. Traditional approaches to taxation, focused mainly on corporate tax incentives to attract foreign direct investment and layers of sometimes overlapping and poorly structured sales and international trade taxes, have failed to capture growing sources of personal income or address the gaps in the distribution of income and wealth.

The weaknesses in tax policy are compounded by shortcomings in tax and customs administration. Labor forces characterized by widespread informality, a lack of a culture of tax compliance, and weak governance structures undermine the collection of revenues, especially of the personal income tax. Even when they can identify required reforms, tax and customs administrations often lack the political independence to implement them.

Reform of the region’s personal income taxes presents an opportunity to bolster revenues and help address income and wealth inequality. A well-structured personal income tax system with broad bases and moderate and internationally competitive rates can facilitate higher growth and much-needed revenue to fund government spending. A progressive personal income tax (i.e., where the average tax rate rises with higher income) can contribute to the reduction of income and wealth inequality, especially when supported by adequate spending on human capacity development.

The region has made significant, though widely varying efforts, to improve tax and customs administrations in recent years, including through institutional reorganization of tax administrations on a functional basis, better coordination between tax and customs administrations, and the creation of large taxpayer units. Countries in the region have focused on automating their systems, strengthening training and staff quality, and improving legal systems that underpin tax enforcement.

In the region, improvements in the structure and administration of the personal income tax have facilitated sensible reforms of corporate income and broad-based sales taxes while allowing continued reduction of reliance on international trade taxes. In recent decades in the Asia and Pacific region, there has been some increase in reliance on personal income taxes, but the growth has been uneven and insufficient (Figure 1). In the region as a whole but excluding certain key countries, fiscal policies have contributed to some narrowing of income and wealth gaps (Figure 2).

Figure 1: Tax Revenue by Source Comparison 2017-2021 to 2002-2006

Notes: Appendix 1 in the original paper provides the economies by region. Data for the People’s Republic of China and India are missing. Data for East Asia include only Mongolia in 2006; thus, the comparison is limited. Table A1.2 in the original paper lists the economies by region. The percentage change in tax revenue by source compares each tax type’s average share of total tax revenue over two periods: 2002–2006 and 2017–2022.
Source: OECD. Global Revenue Statistics Database (accessed 31 August 2024).

Figure 2: Change in Market Gini Coefficients over Time in the Asia and Pacific Subregions

Source: Standardized World Income Inequality Database Version 9.7 (accessed December 2023).

MIL OSI Economics –

April 30, 2025

MIL-OSI USA: Markey, Huffman, Fitzpatrick Reintroduce Bipartisan Legislation to Protect the Arctic Refuge

US Senate News:

Source: United States Senator for Massachusetts Ed Markey
Washington (April 29, 2025) – Senator Edward J. Markey (D-Mass.), a member of the Senate Environment and Public Works Committee, and House Natural Resources Committee Ranking Member Jared Huffman (D-Calif.), Senators Maria Cantwell (D-Wash.), Michael Bennet (D-Colo.) and Representative Brian Fitzpatrick (R-Penn.), today reintroduced the Arctic Refuge Protection Act, legislation that will restore critical protections to the Arctic National Wildlife Refuge—the nation’s largest national wildlife refuge—by designating the Coastal Plain ecosystem as wilderness under the National Wilderness Preservation System. This legislation would permanently halt any new oil and gas leasing, exploration, development, and drilling on the Coastal Plain, and would safeguard the subsistence rights of the Arctic Indigenous Peoples who depend upon the Arctic Refuge.
“Trump’s reopening of the Arctic National Wildlife Refuge to oil and gas is another attempt to revive his old and failed promise of a fictional financial windfall from leasing the Refuge—all to pay for tax breaks for billionaires. The urgency to protect the wilderness of the Coastal Plain and the Refuge more broadly and reaffirm the sovereignty of Arctic Indigenous peoples is paramount—my Arctic Refuge Protection Act would do just that,” said Senator Markey. “We must put a law on the books to affirm these lands are not for sale and defend the Arctic landscape—a sacred home for Indigenous peoples, including the Gwich’in and Inupait—from Trump’s disastrous business plan.”
“What we choose to protect says everything about who we are. The Arctic National Wildlife Refuge is too special to destroy, and we have a responsibility to keep it that way,” said Ranking Member Huffman. “The Refuge is one of the last truly wild places left on the planet — home to caribou herds, polar bears, migratory birds, and breathtaking landscapes. But it’s more than that. It’s about standing with the Gwich’in people, who’ve spent generations protecting this land, living with the caribou herds, and preserving a way of life that predates the fossil fuel industry by thousands of years and continues to this day. Now, President Trump wants to turn the Arctic Refuge into a corporate cash grab, a place where oil companies could frack up the tundra while trampling tribal sovereignty and leaving Americans with nothing but spills and broken promises. This land belongs to the American people and to the Gwich’in, not to Big Oil.”
“Protecting the Arctic Refuge is not only an environmental imperative—it’s a strategic one. This land holds immense ecological value, cultural significance, and climate importance. Reckless development would endanger wildlife, violate Indigenous rights, and yield little economic return. As Co-Chair of the World Wildlife, Oceanic, Environmental and Biodiversity Caucus, I’m proud to support this legislation to protect one of America’s last wild frontiers—because conservation is not a cost, it’s a long-term investment in our security, economy, and planet,” said Representative Fitzpatrick.
“The Arctic National Wildlife Refuge is a pristine, million-year-old ecosystem unlike anything else we have in the United States, which is why it should be permanently protected,” said Senator Cantwell. “The future of the Arctic is in tourism, and with new sea routes opening up the real value of this land is conservation, not exploitation.”
“The Arctic National Wildlife Refuge is one of our country’s most unique and beautiful areas of land. We must work with our indigenous communities to protect our wildlife, and the environment put at risk by oil and gas development in this spectacular refuge. Rather than catering to the interests of the oil companies, we must focus our efforts on diversifying our energy sources with renewable energy and prevent further harm to the environment,” said Senator Schiff.
“We commend our congressional champions for taking a stand to protect one of America’s last great wild places. The Arctic National Wildlife Refuge’s Coastal Plain is not only a sanctuary for wildlife—it is sacred land for the Gwich’in and a symbol of our nation’s commitment to conservation. Selling off this land for oil and gas is not only destructive, it’s bad economics. The last Arctic Refuge lease sale was a failure, proving there is no real demand—only a handout to billion-dollar corporations at the expense of taxpayers. This legislation is a crucial step in permanently protecting this irreplaceable landscape from exploitation. Now, more than ever, Congress must prioritize our public lands and Indigenous rights by restoring protections to the Arctic Refuge and ensuring this land remains unexploited for generations to come,” said Kristen Miller, Executive Director, Alaska Wilderness League.
“We applaud the leadership of Sen. Markey and Reps. Huffman and Fitzpatrick for reintroducing the Arctic Refuge Protection Act,” said Mary Glaves, Alaska Coordinator for Backcountry Hunters & Anglers. “For hunters and anglers, the 1.5-million-acre coastal plain is the birth place of wild pursuits of caribou, waterfowl, and iconic fish species including Dolly Varden and Arctic Char. The abysmal interest in both the 2020 and 2025 lease sales demonstrates the bad economics of drilling in the Arctic Refuge. The wetlands and rivers weave together one of the last truly wild landscapes that are essential for the North American heritage of hunting and fishing and subsistence for local Alaskan communities. The Arctic Refuge is a national treasure that should be protected as such through a wilderness designation.”
“The Arctic Refuge is no place for drilling. It is a sanctuary for caribou, musk oxen, polar bears, wolves, and other wildlife. The Arctic Refuge Protection Act is a clear acknowledgment of that fact. Even the biggest players in the oil industry recognized that drilling in the Refuge was an absurd proposition when they failed to show up for recent lease sales,” said Alexandra Adams, Chief Policy Advocacy Officer at NRDC. “This bill would end an ongoing threat to this treasured place by forever barring industrialization of the Refuge.”
Background
The Arctic Refuge is one of the last truly wild places left in America. The Coastal Plain is the calving ground of the Porcupine caribou herd, the source of the Indigenous Gwich’in people’s way of life and subsistence for generations. It also provides a critical denning habitat for threatened Southern Beaufort Sea populations of polar bears. Oil and gas exploration, seismic testing, and all of the infrastructure that comes with oil drilling – from roads to pipelines to pumpjacks – would threaten polar bears in their dens, disrupt caribou and bird migration patterns, and result in significant and irreversible harm to the unique Arctic Refuge habitat and the Indigenous communities who depend on it.
For the Gwich’in people, who refer to the Coastal Plain as “Iizhik Gwats’an Gwandaii Goodlit” or the Sacred Place Where Life Begins, this land is more than wildlife habitat. It is cultural identity, food security, and a foundation for traditions that span millennia into the current day. The caribou herd is central to their traditions and survival, and industrial development in the region threatens not just an ecosystem, but an entire way of life. The Gwich’in, which span across Alaska and Canada, have been united in their opposition to drilling in the Refuge for decades and have called on the federal government to uphold its trust responsibilities and protect these lands permanently.
Developing the Refuge’s unproven oil and gas reserves would also pose a serious danger to the climate, locking in decades of emissions in a region already warming four times faster than the global average.
For decades, the Refuge’s coastal plain has been targeted for highly speculative oil and gas drilling. In 2017, the Tax Cuts and Jobs Act established an oil and gas leasing program along with a requirement that the Department of the Interior conduct two lease sales in the coastal plain before the end of 2024. According to the Congressional Budget Office’s estimate at the time, these lease sales would result in $1.82 billion in revenue over 10 years. Seven years later, those projections have proven wildly inaccurate.
The first lease sale brought in only $14.4 million in bids on 11 tracts, a far cry from the nearly $2 billion in estimated revenue. Major oil companies didn’t participate in the sale, and most major financial institutions have pledged not to finance drilling there. The most recent lease sale in January of this year generated no interest. Despite the lack of interest or activity, the risk of development and drilling in the Arctic Refuge remains.
On his first day in office, President Trump restarted the Coastal Plain Oil and Gas Leasing Program and reinstated seven leases from the state development corporation, which were previously canceled by the Biden administration. Congressional Republicans may once again use oil and gas leasing to pay for tax cuts for billionaires, despite its catastrophic failure to raise revenue in 2017.
The Senate bill is cosponsored by Senators Ron Wyden (D-Ore.), Jeff Merkley (D-Ore.), Tammy Baldwin (D-Wisc.), Patty Murray (D-Wash.), Alex Padilla (D-Calif.), Chris Van Hollen (D-Md.), Adam Schiff (D-Calif.), Jeanne Shaheen (D-N.H.), Dick Durbin (D-Ill.), Bernie Sanders (I-Vt.), Richard Blumenthal (D-Conn.), Sheldon Whitehouse (D-R.I.), Tina Smith (D-Minn.), Ben Ray Lujan (D-N.M.), Gary Peters (D-Mich.), and Elizabeth Warren (D-Mass.).
The House bill is cosponsored by Representatives Suzanne Bonamici (D-Ore.), Sydney Kamlager-Dove (D-Calif.), Sharice Davids (D-Kan.), Mary Gay Scanlon (D-Pa.), Hank Johnson (D-Ga.), Kevin Mullin (D-Calif.), Bill Foster (D-Ill.), Jamie Raskin (D-Md.), Ro Khanna (D-Calif.), Jared Moskowitz (D-Fla.), Pramila Jayapal (D-Wash.), Salud Carbajal (D-Calif.), Joe Neguse (D-Colo.), Val Hoyle (D-Ore.), Brad Schneider (D-Ill.), Linda Sánchez (D-Calif.), Juan Vargas (D-Calif.), Raja Krishnamoorthi (D-Ill.), Madeline Dean (D-Pa.), Jan Schakowsky (D-Ill.), Lucy McBath (D-Ga.), Dwight Evans (D-Pa.), Nydia Velázquez (D-N.Y.), André Carson (D-Ind.), Andrea Salinas (D-Ore.), Jerrold Nadler (D-N.Y.), Sara Jacobs (D-Calif.), Betty McCollum (D-Minn.), Darren Soto (D-Fla.), Jake Auchincloss (D-Mass.), Delia Ramirez (D-Ill.), Maxine Waters (D-Calif.), Johnny Olszewski (D-Md.), Sarah Elfreth (D-Md.), Jill Tokuda (D-Hawaii), Angie Craig (D-Minn.), Ilhan Omar (D-Minn.), Mark Takano (D-Calif.), Danny Davis (D-Ill.), Raul Ruiz (D-Calif.), Lori Trahan (D-Mass.), Doris Matsui (D-Calif.), Kim Schrier (D-Wash.), Gerry Connolly (D-Va.), Maxwell Frost (D-Fla.), Sean Casten (D-Ill.), Yassamin Ansari (D-Ariz.), Maxine Dexter (D-Ore.), Kelly Morrison (D-Minn.), George Latimer (D-N.Y.), Gabe Amo (D-R.I.), Steve Cohen (D-Tenn.), Rob Menendez (D-N.J.), Jesús “Chuy” García (D-Ill.), Bobby Scott (D-Va.), Grace Meng (D-N.Y.), Suzan DelBene (D-Wash.), Sarah McBride (D-Del.), Summer Lee (D-Pa.), Emily Randall (D-Wash.), Dave Min (D-Calif.), Gil Cisneros (D-Calif.), Adam Smith (D-Wash.), Rick Larsen (D-Wash.), Ted Lieu (D-Calif.), Judy Chu (D-Calif.), Chellie Pingree (D-Maine), Ed Case (D-Hawaii), James McGovern (D-Mass.), Brendan Boyle (D-Pa.), Nanette Barragán (D-Calif.), Becca Balint (D-Vt.), Mike Levin (D-Calif.), Gabe Vasquez (D-N.M.), and Bonnie Watson Coleman (D-N.J.).
The bill was endorsed by National Audubon Society, Gwich’in Steering Committee, Alaska Wilderness League, Trustees for Alaska, The Wilderness Society, League of Conservation Voters, Defenders of Wildlife, National Wildlife Refuge Association, Backcountry Hunters & Anglers, World Wildlife Fund, Earthjustice, Natural Resources Defense Council, and Environment America.

MIL OSI USA News –

April 30, 2025

MIL-OSI: Orca Energy Group Inc. Announces 2024 Year End Audited Financial Results

Source: GlobeNewswire (MIL-OSI)

TORTOLA, British Virgin Islands, April 29, 2025 (GLOBE NEWSWIRE) — Orca Energy Group Inc. (“Orca” or “the Company” and includes its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) today announced its audited financial results for the fourth quarter (“Q4 2024“) and year ended December 31, 2024. All dollar amounts are in United States dollars unless otherwise stated.

Revenue increased by 51% for Q4 2024 and by 1% for the year ended December 31, 2024 compared to the same prior year periods. Certain volumes were supplied as Protected Gas (defined below) prior to July 31, 2024. After the termination of Protected Gas after July 31, 2024, those volumes were instead supplied as Additional Gas (defined below). These volumes, which were delivered to Songas Limited (“Songas“) in August, September and October 2024 and for which the Company did not receive compensation, have not been recognized in revenue in 2024. These unrecognized gross revenues include 80.5% of sales to Songas in the amount of $6.2 million.
On October 30, 2024, PanAfrican Energy Tanzania Limited (“PAET”), a wholly-owned subsidiary of the Company, was advised by Songas that the Interim Power Purchase Agreement (“PPA”) between Tanzania Electric Supply Company Limited (“TANESCO“) and Songas would expire on October 31, 2024, and that it was unknown if a new PPA would be entered into. At midnight on October 31, 2024 Songas shut down the Songas Power Plant. In the event that a new PPA is not entered into, there is a possibility that the Songas Power Plant will be shut down indefinitely. To date the Songas Power Plant remains shutdown. This has adversely impacted demand for production volumes from the Songo Songo gas field.
Gas delivered and sold decreased by 3% for Q4 2024 and by 15% for the year ended December 31, 2024 compared to the same prior year periods. During 2024, Tanzania’s Julius Nyerere Hydropower Project (“JNHPP”) commenced commercial operations, with progressive commissioning of 5 turbines allowing peak output of over 700 MW. Combined with the early onset of the wet season and rainfall well above seasonal averages for the period, hydro power generation and the Songas Power Plant shutdown have been the primary factors in reduced gas liftings for the power sector.
On April 14, 2023, PAET formally requested Tanzanian Petroleum Development Corporation (“TPDC“) apply for an extension of the Songo Songo Development License (the “License”). TPDC is contractually required to make this application promptly upon a request by the Company. There are currently no certainties on the timing, nature and extent of any such extensions. Until such extension has been finalized, a high degree of uncertainty exists with respect to the extent of the Company’s operating activities subsequent to October 2026, when the License is set to expire. In November 2024, TPDC submitted the application for the extension of the License to the Ministry of Energy (“MoE“), however, being uneconomical, the Company informed TPDC that it did not agree with the terms as submitted. Having declined to address PAET’s concerns itself, TPDC has refused to rescind and resubmit the application and has advised PAET to raise any issues directly to the MoE. Our Counsel subsequently submitted a letter to the MoE, requesting a meeting to address the issues, to date we haven’t had a response.
On April 15, 2024, contrary to the terms of the Gas Agreement and Production Sharing Agreement (the “PSA”) and in violation of Pan African Energy Corporation (Mauritius) (“PAEM”) and PAET’s expectations, the Permanent Secretary of MoE wrote to TPDC, copying PAET and Songas, directing TPDC to “ensure that Protected Gas continues to be produced to the end of the Development Licence on 10th October 2026”. Consistent with that instruction, TPDC took the position that Protected Gas should continue despite the parties’ contractual agreement that Protected Gas ceased after July 31, 2024.
PAET, TPDC and Tanzania Portland Cement PLC (“TPCPLC”) subsequently agreed to the terms of the Supplementary Gas Agreement (“SGA”) to sell volumes after July 31, 2024 as Additional Gas, which, prior to August 1, 2024, were supplied as Protected Gas. TPCPLC has fully paid the Company $10.4 million of the receivable outstanding as at December 31, 2024.
Following cessation of Protected Gas after July 31, 2024, despite the absence of an executed contract to do so, Songas continued to lift gas volumes in August, September and October 2024, at an average rate of 20.2 MMcfd. On September 23, 2024, the Company was notified by Songas that it acknowledges it had lifted this volume, but due to TPDC’s refusal to approve a Gas Sales Agreement for this Additional Gas, they would elect to pay for only 19.5% of such volumes. This accords with the payment arrangements for Complex Additional Gas (defined below). Payments were made on this basis by Songas in Q4 2024, in the amount of $1.9 million representing 19.5% of the total invoiced amount of $9.7 million.
On August 7, 2024, PAET and PAEM issued a notice of dispute (“Notice of Dispute”) in respect of an investment treaty claim against the GoT for breach of the Agreement on Promotion and Reciprocal Protection of Investment between the Government of the Republic of Mauritius and the GoT (“BIT”), and a contractual dispute against the Government of Tanzania (“GoT”) and TPDC, for breaches of the: (i) PSA, and (ii) the Gas Agreement. Initial meetings with both the Advisory and Coordinating Committees were held during the week of October 14, 2024 without any resolution on the key issues in dispute. The matters have been further referred to the relevant entity’s chief executive officers and working groups in accordance with the dispute resolution process. Discussions continued with meetings held in March 2025 . Further updates on this matter will be made as appropriate.
In February 2025, the Company received a judgment (the “Judgment”) from the Tanzanian High Court (Commercial Division) (the “Court”) for a claim brought by a contractor against PAET. The claim was brought by the contractor for losses arising from PAET’s termination of a contract relating to the Company’s 3D seismic acquisition program. The contract was signed in 2022 and works were due to be completed by the end of 2022. However, work only commenced in 2023 and was never completed. Pursuant to the Judgment, the Court ordered specific and general damages in the aggregate of $23.1 million, plus legal costs and interest at a rate of 7% per annum be paid by PAET to the contractor. PAET respectfully disagrees with the Judgement and has initiated the appeal process. PAET was required to post security for the full amount of the Judgment until the appeal is resolved. The Company has recognised the resulting liability in 2024 based on the Judgement applied. The Company has initiated the appeal process, and if successful in that process, a reversal would be recognized in earnings at that time.
The well intervention operations on SS-7 have now concluded. The work program, following a complex mobilization to Songo Songo Island, sought to restore the mechanical integrity of the well to shutoff water production in order to restart production from the southern compartment of the Songo Songo gas field. Following several remedial cement treatments to shut off the lower water producing zone and reperforation of the upper Neocomian sands, limited and unsustained gas flows were observed. The Company, in line with its contingency plans, set a cement plug above the Neocomian interval and perforated the shallower Cenomanian sands. Having completed all possible downhole work, and after an unsuccessful attempt to produce gas from the Cenomanian sands, the Company ceased well intervention operations and demobilized the barge and jack-up from the SS-7 site. The total expected project cost has increased to $25.9 million from $23.5 million, primarily as a result of the significant attempts required to shut off water and reproduce the well. A comprehensive post project analysis will be carried out to evaluate the intervention results, which have not met production expectations. During the year, the Company recorded an asset impairment expense of $25.9 million with respect to the SS-7 well workover program.
The Company completed a production and saturation logging program in three wells: SS-3, SS-10 and SS-5. Results indicate that the wells and field are performing in line with expectations, and have been used to update longer term reservoir management plans. The total expected program cost increased to $2.2 million from $1.3 million.
Net loss attributable to shareholders amounted to $21.6 million for the year ended December 31, 2024 compared to net income attributable to shareholders of $7.0 million for the same prior year period. In Q4 2024, the Company recorded an asset impairment expense of $25.9 million with respect to the SS-7 well workover program and a loss allowance of $21.7 million with respect to the ongoing litigation relating to the Judgment in the High Court of Tanzania.
Net cash flows from operating activities decreased by 37% for Q4 2024 and by 44% for the year ended December 31, 2024 compared to the same prior year periods. The decrease for the year ended December 31, 2024 over the comparable prior year period is mainly a result of changes in non-cash working capital.
Capital expenditures increased by 635% for Q4 2024 and by 244% for the year ended December 31, 2024 compared to the same prior year periods. The capital expenditures in 2024 primarily related to the well workover program. The capital expenditures in 2023 primarily related to the initial costs of the well workover program and the 3D seismic acquisition program.
The Company exited the period with $21.9 million in working capital (December 31, 2023: $67.3 million), cash and cash equivalents of $90.1 million (December 31, 2023: $101.6 million) and long-term debt of $ nil (December 31, 2023: $30.0 million). Cash held in hard currencies (USD, Euro, GBP, CDN) was $87.1 million, as at December 31, 2024 (December 31, 2023: $60.4 million). The decrease in long-term debt is related to a repayment of principal of $10.0 million in April 2024 and October 2024, representing the fourth and fifth semi-annual repayments of the Company’s long-term debt as well as maturing of the outstanding loan principal.
Subsequent to December 31, 2024, the Company fully prepaid the $60 million investment (the “Loan”) made by International Finance Corporation (“IFC”) in PAET, pursuant to a loan agreement dated October 29, 2015 between the IFC, PAET and the Company (the “Loan Agreement”). To effect the foregoing prepayment, the Company paid to IFC $30.6 million, representing the aggregate outstanding principal of the Loan together with all accrued interest thereon and all other amounts owing in connection with the Loan as of February 21, 2025. As of the date hereof, the annual variable participating interest granted by PAET to the IFC under the terms of the Loan Agreement remains outstanding.
As at December 31, 2024, the current receivable from TANESCO was $12.7 million (December 31, 2023: $5.9 million). The TANESCO long-term receivable as at December 31, 2024 and as at December 31, 2023 was $22.0 million and has been fully provided for. Subsequent to December 31, 2024, the Company has invoiced TANESCO $14.5 million for Q1 2025 gas deliveries. TANESCO has paid the Company $24.2 million to date which relate to the outstanding amount at December 31, 2024 and payments for a portion of Q1 2025 gas deliveries
Total working interest proved conventional natural gas reserves (“1P”) and total proved plus probable conventional natural gas reserves (“2P”) decreased by 53% and 56%, respectively, as at December 31, 2024 compared to the prior year. The decrease was primarily attributed to 26.7 Bcf of production in 2024 and 18.1 Bcf of negative technical revisions. The technical revisions were primarily due to lower forecasted gas sales to the end of the License attributed to increased hydro power use in Tanzania and the removal of Proved Undeveloped reserves due to the unsuccessful well intervention on SS-7. The net present value of lower reserves and estimated future cash flows from 2P reserves at a 10% discount rate decreased by 45% compared to the previous year mainly as a result of lower reserves at year end 2024 and the associated 33% reduction in the number of years outstanding on the current License.
We currently forecast average Additional Gas sales for 2025 to be in the range of 70-72 MMcfd for the full year which is estimated to be 4% lower than 2024. Given the uncertainty associated with the extension of the License, capital allocations for development projects will be minimal during 2025 and limited to the implementation of essential safety and maintenance matters only.

Financial and Operating Highlights for the Three Months and Year Ended December 31, 2024
	Three Months ended December 31				% Change				Year ended December 31					% Change
(Expressed in $’000 unless indicated otherwise)	2024		2023		Q4/24 vs Q4/23				2024	2023				Ytd/24 vs Ytd/23
OPERATING
Daily average gas delivered and sold(MMcfd)	78.6		80.8		(3)%			72.9		85.6			(15			)%
Industrial	19.7		13.4		47%			16.1		13.7			18			%
Power	58.9		67.4		(13)%			56.8		71.9			(21			)%
Daily average gas delivered and sold and revenue recognized(MMcfd)	71.8		80.8		(11)%			68.8		85.6			(20			)%
Industrial	19.7		13.4		47%			16.1		13.7			18			%
Power	52.1		67.4		(23)%			52.7		71.9			(27			)%
Average price($/mcf)
Industrial	7.35		8.97		(18)%		8.45			8.73				(3)%
Power	3.90		3.84		2%		3.88			3.71				5%
Weighted average	4.85		4.69		3%		4.95			4.51				10%
Operating netback($/mcf)1	3.56		2.28		56%		3.13			2.38				32%
FINANCIAL
Revenue	36,855		24,448		51%		111,593			110,235				1%
Net (loss) / income attributable to shareholders	(25,821	)	(438	)	n/m		(21,578)			7,014				n/m
per share – basic and diluted($)	(1.31	)	(0.02	)	n/m		(1.09)			0.35				n/m
Net cash flows from operating activities	6,254		9,858		(37)%		27,086			48,485				(44)%
per share – basic and diluted($)1	0.32		0.50		(36)%		1.37			2.44				(44)%
Capital expenditures1	14,869		2,065		620%		27,548			8,103				240%
Weighted average Class A and Class B Shares1(‘000)	19,772		19,826		0%		19,780			19,841				0%
					December 31,					As at December 31,
					2024					2023				% Change
Working capital (including cash)¹						21,904						67,323		(67	)%
Cash and cash equivalents						90,076						101,566		(11	)%
Long-term loan						–					21,961			(100	)%
Outstanding shares(‘000)
Class A						1,750						1,750		0	%
Class B						18,022						18,051		0	%
Total shares outstanding						19,772						19,801		0	%
RESERVES²
Gross Reserves(Bcf)
Proved						40						85		(53)%
Probable						1						9		(89)%
Proved plus probable						41						94		(56)%
Net Present Value, discounted at 10%($ million)
Proved									62			108		(43)%
Proved plus probable									65			119		(45)%

¹ See Non-GAAP Financial Measures and Ratios.

Jay Lyons, Chief Executive Officer, commented:

“Orca remains committed to Tanzania and wants to play a key role in Tanzania’s power generation strategy for the foreseeable future. Although demand for power in Tanzania is growing rapidly, surpassing the country’s current capacity, Orca has been unable to agree with the Government of Tanzania and TPDC with regard to securing a license extension for the Songo Songo gas field.

Given the limited time remaining on the License, and the lack of a resolution on an extension, Orca has limited capital spending to only essential safety and maintenance activities. At this current moment, further investment is not commercially viable unless the License is extended. Therefore, in order to preserve shareholder value, Orca has focused on reducing costs, operating efficiently, and minimizing expenditures.

There are currently no certainties on the timing, nature and extent of any such extensions. Until such extension has been finalized, a high degree of uncertainty exists with respect to the extent of the Company’s operating activities subsequent to October 2026. The Company is prepared to invest further in Tanzania. However, this investment depends on resolving the License extension and achieving a sustainable commercial framework. Without a resolution, Orca must act to protect the interests of its shareholders, even as it continues to support Tanzania’s long-term energy goals.”

The Company’s complete Audited Consolidated Financial Statements and Notes and Management’s Discussion & Analysis for the year ended December 31, 2024 may be found on the Company’s website www.orcaenergygroup.com or on the Company’s profile on SEDAR+ at www.sedarplus.ca.

Orca Energy Group Inc.

Orca Energy Group Inc. is an international public company engaged in natural gas development and supply in Tanzania through its subsidiary PanAfrican Energy Tanzania Limited. Orca trades on the TSX Venture Exchange under the trading symbols ORC.B and ORC.A.

The principal asset of Orca is its indirect interest in the with TPDC and the GoT in the United Republic of Tanzania. This PSA covers the production and marketing of certain gas from the License offshore Tanzania. The PSA defines the gas produced from the Songo Songo gas field as “Protected Gas“ and “Additional Gas“. The Gas Agreement defined “Complex Additional Gas”, to be gas produced from the Songo Songo gas field, which is included in Additional Gas. Under the Gas Agreement, until July 31, 2024, Protected Gas was owned by TPDC and was sold to Songas and TPCPLC. After July 31, 2024, Protected Gas ceased and all production from the Songo Songo gas field constitutes Additional Gas which PAET and TPDC are entitled to sell on commercial terms until the PSA expires in October 2026. Songas is the owner of the infrastructure that enables the gas to be processed and delivered to Dar es Salaam, which includes a gas processing plant on Songo Songo Island. Additional Gas is all gas that is produced from the Songo Songo gas field in excess of Protected Gas.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Abbreviations

Bcf	billion standard cubic feet
MMcf	million standard cubit feet
MMcfd	million standard cubic feet per day

Non-GAAP Financial Measures and Ratios
In this press release, the Company has disclosed the following non-GAAP financial measures, non-GAAP ratios and supplementary financial measures: capital expenditures, operating netback, operating netback per mcf, working capital, net cash flows from operating activities per share and weighted average Class A and Class B Shares.

These non-GAAP financial measures and ratios disclosed in this press release do not have any standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other issuers. These non-GAAP financial measures and ratios should not, therefore, be considered in isolation or as a substitute for, or superior to, measures and ratios of the Company’s financial performance defined or determined in accordance with IFRS. These non-GAAP financial measures and ratios are calculated on a consistent basis from period to period.

Non-GAAP Financial Measures

Capital expenditures
Capital expenditures is a useful measure as it provides an indication of our investment activities. The most directly comparable financial measure is net cash from (used in) investing activities. A reconciliation to the most directly comparable financial measure is as follows:

	Three Months ended December 31				Year ended December 31
$’000	2024		2023		2024		2023
Pipelines, well workovers and infrastructure	14,869		2,067		27,233		7,984
Other capital expenditures	–		(2	)	315		119
Capital expenditures	14,869		2,065		27,548		8,103
Right of use	–		852		57		852
Change in non-cash working capital	(4,125	)	(708	)	(9,645	)	(161	)
Net cash used by investing activities	10,744		2,209		17,960		8,794

Operating netback

Operating netback is calculated as revenue less processing and transportation tariffs, TPDC’s revenue share, and operating and distribution costs. The operating netback summarizes all costs that are associated with bringing the gas from the Songo Songo gas field to the market, it is a measure of profitability. A reconciliation to the most directly comparable financial measure is as follows:

	Three Months ended December 31				Year ended December 31
$’000	2024		2023		2024		2023
Revenue	36,855		24,448		111,593		110,235
Production, distribution and transportation expenses	(5,265	)	(4,576	)	(19,990	)	(19,197	)
Net Production Revenue	31,590		19,872		91,603		91,038
Less current income tax adjustment (recorded in revenue)	(8,061	)	(2,896	)	(12,817	)	(16,527	)
Operating netback	23,529		16,976		78,786		74,511
Sales volumes MMcf where revenue is recognized	6,604		7,435		25,185		31,256
Netback $/mcf	3.56		2.28		3.13		2.38

Non-GAAP Ratios

Operating netback per mcf

Operating netback per mcf represents the profit margin associated with the production and sale of Additional Gas and is calculated by taking the operating netback and dividing it by the volume of Additional Gas delivered and sold. This is a key measure as it demonstrates the profit generated from each unit of production.

Supplementary Financial Measures

Working capital

Working capital is defined as current assets less current liabilities, as reported in the Company’s Consolidated Statements of Financial Position. It is an important measure as it indicates the Company’s ability to meet its financial obligations as they fall due.

Net cash flows from operating activities per share

Net cash flows from operating activities per share is calculated as net cash flows from operating activities divided by the weighted average number of shares, similar to the calculation of earnings per share. Net cash flow from operations is an important measure as it indicates the cash generated from the operations that is available to fund ongoing capital commitments.

Weighted average Class A and Class B Shares

In calculating the weighted average number of shares outstanding during any period the Company takes the opening balance multiplied by the number of days until the balance changes. It then takes the new balance and multiplies that by the number of days until the next change, or until the period end. The resulting multiples of shares and days are then aggregated and the total is divided by the total number of days in the period.

Forward-Looking Statements

This press release contains forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact included in this press release, which address activities, events or developments that Orca expects or anticipates to occur in the future, are forward-looking statements. Forward-looking statements often contain terms such as may, will, should, anticipate, expect, continue, estimate, believe, project, forecast, plan, intend, target, outlook, focus, could and similar words suggesting future outcomes or statements regarding an outlook. More particularly, this press release contains, without limitation, forward-looking statements pertaining to the following: anticipated average gas sales, including Additional Gas sales, for 2024; ongoing negotiation of new commercial terms and discussion of requirements under the Gas Agreement with Songas and TPCPLC; ongoing discussion of PGSA extension with TANESCO; assessment by the Company of the merits of the claim made by the seismic contractor and the timing of the scheduled hearing; planned intervention in offshore well SS-7 including timing, project costs and the anticipated increased gas delivery; planned installation of a new common well inlet manifold and its anticipated timing, costs and effects; planned production logging program at various wells and its anticipated timing, costs and effects; implementation of a new work program at the Songas plant and forecasted production improvement as a result; the Company’s expectation that capital projects will be funded through the Company’s working capital; the Company’s expectation that all capital allocation decisions will be based upon prudent economic evaluations and returns; extension of the development license and the Company’s expectation to continue to actively engage with the MoE to progress the license extension; maintenance of gas sale contract discipline by the Company in accordance with its gas supply agreements; and the Company’s expectations regarding supply and demand of natural gas. In addition, statements relating to “reserves” are by their nature forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be produced profitably in the future. The recovery and reserve estimates of the Company’s reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, access to resources and infrastructure, performance or achievement since such expectations are inherently subject to significant business, economic, operational, competitive, political and social uncertainties and contingencies.

These forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control, and many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by the Company, including, but not limited to: risk that the Company may incur losses and legal expenses as a result of the claim brought forth by the seismic contractor; risk that the cost, timing and anticipated benefits from the Company’s various development programs in 2024 are different than expected; that not all capital allocation decisions will be based upon prudent economic evaluations and returns; inability to extend the development license and inability to maintain gas sale contract discipline; uncertainties with respect to negotiations involving the Gas Agreement; changes to forecasts regarding future development capital spending and source of capital funding; risk of future restrictions on the movement of cash from Jersey, Mauritius or Tanzania; occurrence of circumstance or events which significantly impact the Company’s cash flow and liquidity and the Company’s ability cover its long-term and short-term obligations or fund planned capital expenditures; prolonged foreign exchange reserves deficiency in Tanzania; the lack of availability of US dollars; inability to convert Tanzanian shillings into US dollars as and when required; discontinuation of work by the Company with the GoT on alternative development plan for longer term field development; lack of access to Songas processing and transportation facilities; risk of reduced current and potential production capacity of the Songo Songo gas field; the Company’s expectations regarding the supply and demand of natural gas is incorrect; uncertainty associated with the evolution of Tanzanian legislation; the risk of unanticipated effects regarding changes to the Company’s tax liabilities and its operations as a result of amendments made to existing legislation, the implementation of further legislation and the Company’s interpretation of the same; the impact of general economic conditions in the areas in which the Company operates; civil unrest; the susceptibility of the areas in which the Company operates to outbreaks of disease; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations; impact of local content regulations and variances in the interpretation and enforcement of such regulations; the lack of availability of qualified personnel or management; fluctuations in commodity prices, foreign exchange or interest rates; stock market volatility; competition for, among other things, capital, oil and gas field services and skilled personnel and increased competition; failure to obtain required equipment for field development; delays in development plans; effect of changes to the PSA on the Company as a result of the implementation of new government policies for the oil and gas industry; inaccurate reserves estimates; incorrect forecasts in production and growth potential of the Company’s assets; obtaining required approvals of regulatory authorities; risks associated with negotiating with foreign governments; inability to satisfy debt conditions of financing; risk that the Company will not be able to fulfil its contractual obligations; risk that trade and other receivables may not be paid by the Company’s customers when due; the risk that the Company’s Tanzanian operations will not provide near term revenue earnings; reduced global economic activity as a result of the continuing impacts of geo-political conflicts or pandemics. In addition, there are risks and uncertainties associated with oil and gas operations, therefore the Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by these forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive.

Future shareholder returns, including but not limited to the payment of dividends or other distributions to shareholders, if any, and the level thereof is uncertain. Any decision to pay further distributions on the Class A Shares and Class B Shares (including the actual amount, the declaration date, the record date and the payment date in connection therewith) will be subject to the discretion of the Board of Directors of the Company and may depend on a variety of factors, including, without limitation the Company’s business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and compliance with applicable laws. There can be no assurance that the Company will pay any distributions in the future.

Such forward-looking statements are based on certain assumptions made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate in the circumstances, including, but not limited to, the anticipated supply and demand of natural gas are in line with the Company’s expectations; the Company’s average Additional Gas sales are in line with forecasts; accurate assessment by the Company of the merit of claims brought forward by the seismic contractor; successful negotiation of the Gas Agreement; successful implementation of various development programs at the budgeted expenditures, including the planned intervention in the SS-7 well; all capital allocation decisions will be based upon prudent economic evaluations and returns; extension of the development license and maintenance of gas sale contract discipline on a go-forward basis pursuant to the Company’s gas supply agreements; that the Company will receive payment of arrears from TANESCO; that the Company will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that there will continue to be no restrictions on the movement of cash from Mauritius, Jersey or Tanzania; availability of US dollars and that the Company will continue to be able to convert Tanzanian shillings into US dollars as required; that the Company will successfully negotiate agreements; receipt of required regulatory approvals; the ability of the Company to increase production as required to meet demand; infrastructure capacity; commodity prices will not deteriorate significantly; the ability of the Company to obtain equipment and services in a timely manner to carry out exploration, development and exploitation activities; future capital expenditures; availability of skilled labor; timing and amount of capital expenditures; uninterrupted access to infrastructure; that the impact of increasing competition is consistent with expectations; conditions in general economic and financial markets; effects of regulation by governmental agencies; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; the effect of new environmental and climate-change related regulations will not negatively impact the Company; the Company is able to maintain strong commercial relationships with the GoT and other state and parastatal organizations; the current and future administration in Tanzania continues to honor the terms of the PSA and the Company’s other principal agreements; and other matters.

The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The MIL Network –

April 30, 2025

MIL-OSI Economics: Samsung Electronics Announces First Quarter 2025 Results

Source: Samsung

Samsung Electronics today reported financial results for the first quarter ended March 31, 2025.

The Company posted KRW 79.14 trillion in consolidated revenue, an all-time quarterly high, on the back of strong sales of flagship Galaxy S25 smartphones and high-value-added products. Operating profit increased to KRW 6.7 trillion despite headwinds for the DS Division, which experienced a decrease in quarterly revenue.

The Company has allocated its highest-ever annual R&D expenditure for 2024, and in the first quarter of this year, it has also increased its R&D expenditure by 16% compared to the same period last year, amounting to 9 trillion won.

Despite the growing macroeconomic uncertainties due to recent global trade tensions and slowing global economic growth, making it difficult to predict future performance, the Company will continue to make various efforts to secure growth. Additionally, assuming that the uncertainties are diminished, it expects its performance to improve in the second half of the year.

Semiconductors Projected To Continue Growth by Meeting Evolving AI Needs
The DS Division posted KRW 25.1 trillion in consolidated revenue and KRW 1.1 trillion in operating profit for the first quarter.

For the Memory Business, revenue was driven by expanded server DRAM sales and the addressing of additional NAND demand amid a perceived bottoming out of the market price.

However, overall earnings were impacted by the erosion of average selling price (ASP), as well as a decrease in HBM sales due to export controls on AI chips and deferred demand in anticipation of upcoming enhanced HBM3E products.

In Q2 2025, the Memory Business anticipates robust demand for AI servers and will therefore seek to strengthen our position in the high-value-added market via our server-centric portfolio, along with a ramp-up of the enhanced HBM3E 12H to meet initial demand. For NAND, the Memory Business seeks to enhance cost competitiveness by accelerating the transition to 8th Generation V-NAND for all applications.

In H2 2025, AI-related demand is expected to remain high in conjunction with the launch of new GPUs. Therefore, the Memory Business will expand the sales of high-value-added products, including enhanced HBM3E 12H products and high density DDR5 modules of 128GB or higher.

In the mobile and PC markets, on-device AI is expected to proliferate, so the Memory Business will proactively respond to this shift in the business environment with its industry-leading 10.7Gbps LPDDR5x products.

Earnings at the System LSI Business improved modestly, due to an increased supply of high-resolution sensors and LSI products. This improvement came despite a sluggish smartphone market and the delayed adoption of the Company’s flagship system-on-a-chip (SoC).

In Q2 2025, the System LSI Business will maintain steady revenue by gaining SoC adoption by a major customer for new flagship models and capitalizing on the growing adoption of 200-megapixel sensors.

In H2 2025, the System LSI Business will expand its flagship SoC supply, proactively address demand for high-resolution main and telephoto camera sensors and expand its automotive sensor portfolio.

Earnings for the Foundry Business were muted due to sluggish seasonal mobile demand, inventory adjustments and stagnant fab utilization. However, the Business focused on the 2nm Gate-All-Around (GAA) process, improving yields and stabilizing the line while keeping the program on schedule, while also securing additional sub-5nm orders, specifically the 2nm and 4nm nodes for AI and HPC applications.

In Q2 2025, the Business will stabilize its 2nm process production and drive earnings improvement by actively addressing strong mobile and automotive demand in the United States. Looking ahead to H2 2025, the Foundry Business aims to start 2nm mass production and secure major 2nm orders and strengthen its specialty process portfolio on mature nodes.

SDC Aims To Navigate Challenges and Drive Growth With Differentiated Offerings
Samsung Display Corporation (SDC) posted KRW 5.9 trillion in consolidated revenue and KRW 0.5 trillion in operating profit for the first quarter.

For the mobile display business, SDC reported declining profits QoQ due to seasonality. The results of the large display business have improved via the launch of new QD-OLED monitor products for major clients.

In Q2 2025, the mobile display business maintains a conservative outlook on earnings while pursuing the stable supply of new products such as foldables. For the large display business, demand for gaming monitors is expected to grow due to the upcoming launches of new products.

In H2 2025, SDC aims to grow the mobile display business sales through differentiated technologies and products amid rising market uncertainties. For the large display business, SDC will strengthen its presence in both B2C and B2B monitor markets with diverse product lineups.

MX Achieves Revenue Growth, Continues To Expand AI Capabilities
The MX and Networks businesses posted KRW 37 trillion in consolidated revenue and KRW 4.3 trillion in operating profit for the first quarter.

The MX Business experienced QoQ growth in both revenue and operating profit thanks to the strong sales of its Galaxy S25 series, which features an advanced Galaxy AI experience. Enhanced cost competency and price declines for some components also contributed to solid double-digit profitability.

In Q2 2025, the MX Business plans to sustain flagship-centric sales amid weak seasonality by successfully launching the Galaxy S25 Edge. It will also expand its AI smartphone lineup through the introduction of “Awesome Intelligence” to the Galaxy A series.

In H2 2025, the MX Business will strengthen its foldable lineup by offering a differentiated AI user experience. In addition, the Business will launch new ecosystem products with enhanced AI and health capabilities, and explore new product segments such as XR.

Visual Display Posts Solid Performance, Strengthens Advanced AI Features
The Visual Display and Digital Appliances businesses posted KRW 14.5 trillion in consolidated revenue and KRW 0.3 trillion in operating profit in the first quarter.

The Visual Display Business recorded solid sales of strategic products such as Neo QLEDs, OLEDs, and large models of 75 inches and over, while price increases and material cost reductions resulted in improved QoQ profitability.

In Q2 2025, the Business intends to expand TV sales with its 2025 AI TV lineup and the integration of advanced AI functions.

In H2 2025, the Business will focus on capturing peak season demand by strategic collaboration with distributors, based on an enhanced AI TV lineup.

MIL OSI Economics –

April 30, 2025

MIL-OSI Banking: Samsung Electronics Announces First Quarter 2025 Results

Source: Samsung

Samsung Electronics today reported financial results for the first quarter ended March 31, 2025.

The Company posted KRW 79.14 trillion in consolidated revenue, an all-time quarterly high, on the back of strong sales of flagship Galaxy S25 smartphones and high-value-added products. Operating profit increased to KRW 6.7 trillion despite headwinds for the DS Division, which experienced a decrease in quarterly revenue.

The Company has allocated its highest-ever annual R&D expenditure for 2024, and in the first quarter of this year, it has also increased its R&D expenditure by 16% compared to the same period last year, amounting to 9 trillion won.

Despite the growing macroeconomic uncertainties due to recent global trade tensions and slowing global economic growth, making it difficult to predict future performance, the Company will continue to make various efforts to secure growth. Additionally, assuming that the uncertainties are diminished, it expects its performance to improve in the second half of the year.

Semiconductors Projected To Continue Growth by Meeting Evolving AI Needs
The DS Division posted KRW 25.1 trillion in consolidated revenue and KRW 1.1 trillion in operating profit for the first quarter.

For the Memory Business, revenue was driven by expanded server DRAM sales and the addressing of additional NAND demand amid a perceived bottoming out of the market price.

However, overall earnings were impacted by the erosion of average selling price (ASP), as well as a decrease in HBM sales due to export controls on AI chips and deferred demand in anticipation of upcoming enhanced HBM3E products.

In Q2 2025, the Memory Business anticipates robust demand for AI servers and will therefore seek to strengthen our position in the high-value-added market via our server-centric portfolio, along with a ramp-up of the enhanced HBM3E 12H to meet initial demand. For NAND, the Memory Business seeks to enhance cost competitiveness by accelerating the transition to 8th Generation V-NAND for all applications.

In H2 2025, AI-related demand is expected to remain high in conjunction with the launch of new GPUs. Therefore, the Memory Business will expand the sales of high-value-added products, including enhanced HBM3E 12H products and high density DDR5 modules of 128GB or higher.

In the mobile and PC markets, on-device AI is expected to proliferate, so the Memory Business will proactively respond to this shift in the business environment with its industry-leading 10.7Gbps LPDDR5x products.

Earnings at the System LSI Business improved modestly, due to an increased supply of high-resolution sensors and LSI products. This improvement came despite a sluggish smartphone market and the delayed adoption of the Company’s flagship system-on-a-chip (SoC).

In Q2 2025, the System LSI Business will maintain steady revenue by gaining SoC adoption by a major customer for new flagship models and capitalizing on the growing adoption of 200-megapixel sensors.

In H2 2025, the System LSI Business will expand its flagship SoC supply, proactively address demand for high-resolution main and telephoto camera sensors and expand its automotive sensor portfolio.

Earnings for the Foundry Business were muted due to sluggish seasonal mobile demand, inventory adjustments and stagnant fab utilization. However, the Business focused on the 2nm Gate-All-Around (GAA) process, improving yields and stabilizing the line while keeping the program on schedule, while also securing additional sub-5nm orders, specifically the 2nm and 4nm nodes for AI and HPC applications.

In Q2 2025, the Business will stabilize its 2nm process production and drive earnings improvement by actively addressing strong mobile and automotive demand in the United States. Looking ahead to H2 2025, the Foundry Business aims to start 2nm mass production and secure major 2nm orders and strengthen its specialty process portfolio on mature nodes.

SDC Aims To Navigate Challenges and Drive Growth With Differentiated Offerings
Samsung Display Corporation (SDC) posted KRW 5.9 trillion in consolidated revenue and KRW 0.5 trillion in operating profit for the first quarter.

For the mobile display business, SDC reported declining profits QoQ due to seasonality. The results of the large display business have improved via the launch of new QD-OLED monitor products for major clients.

In Q2 2025, the mobile display business maintains a conservative outlook on earnings while pursuing the stable supply of new products such as foldables. For the large display business, demand for gaming monitors is expected to grow due to the upcoming launches of new products.

In H2 2025, SDC aims to grow the mobile display business sales through differentiated technologies and products amid rising market uncertainties. For the large display business, SDC will strengthen its presence in both B2C and B2B monitor markets with diverse product lineups.

MX Achieves Revenue Growth, Continues To Expand AI Capabilities
The MX and Networks businesses posted KRW 37 trillion in consolidated revenue and KRW 4.3 trillion in operating profit for the first quarter.

The MX Business experienced QoQ growth in both revenue and operating profit thanks to the strong sales of its Galaxy S25 series, which features an advanced Galaxy AI experience. Enhanced cost competency and price declines for some components also contributed to solid double-digit profitability.

In Q2 2025, the MX Business plans to sustain flagship-centric sales amid weak seasonality by successfully launching the Galaxy S25 Edge. It will also expand its AI smartphone lineup through the introduction of “Awesome Intelligence” to the Galaxy A series.

In H2 2025, the MX Business will strengthen its foldable lineup by offering a differentiated AI user experience. In addition, the Business will launch new ecosystem products with enhanced AI and health capabilities, and explore new product segments such as XR.

Visual Display Posts Solid Performance, Strengthens Advanced AI Features
The Visual Display and Digital Appliances businesses posted KRW 14.5 trillion in consolidated revenue and KRW 0.3 trillion in operating profit in the first quarter.

The Visual Display Business recorded solid sales of strategic products such as Neo QLEDs, OLEDs, and large models of 75 inches and over, while price increases and material cost reductions resulted in improved QoQ profitability.

In Q2 2025, the Business intends to expand TV sales with its 2025 AI TV lineup and the integration of advanced AI functions.

In H2 2025, the Business will focus on capturing peak season demand by strategic collaboration with distributors, based on an enhanced AI TV lineup.

MIL OSI Global Banks –

April 30, 2025

MIL-OSI USA: Cantwell Reintroduces Bipartisan Bill to Build More Affordable Housing Nationwide

US Senate News:

Source: United States Senator for Washington Maria Cantwell
04.29.25
Cantwell Reintroduces Bipartisan Bill to Build More Affordable Housing Nationwide
Proposed expansion of the Low-Income Housing Tax Credit would result in approximately 53,100 additional housing units and 80,400 jobs in WA over 10 years
WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA), senior member of the Senate Finance Committee and ranking member of the Senate Committee on Commerce, Science, and Transportation, reintroduced the Affordable Housing Credit Improvement Act, a bipartisan bill that would expand the existing Low-Income Housing Tax Credit (LIHTC) program and increase the number of affordable homes built in the United States.
“Housing inflation is up 4% over the past year nationally and 4.5% in the Pacific Northwest – and that was before homebuilders reported an additional 5.5% increase in costs due to tariffs this year. We need to do more to lower housing costs for everyone. Expanding and improving the Low-Income Housing Tax Credit will do just that by making it more affordable to build homes and lower rents,” Sen. Cantwell said.
“It’s time for Congress to meet the housing crisis with the bold solutions it demands and that starts with increasing housing supply. Our bill will deliver some much-needed relief to families by supporting existing, successful federal housing programs and building over one million new units of affordable housing. I am all in to bring down costs and make housing more affordable for everyone no matter your zip code,” said U.S. Senator Ron Wyden (D-OR).
The bill was co-introduced by Sens. Cantwell and Todd Young (R-IN). It has 30 total original cosponsors, with an equal split of Democrats and Republicans.
Since 1986, the Housing Credit has paid for 90% of the federally-funded affordable housing construction across the country, and has financed 4 million affordable homes, including more than 100,000 in Washington state. The National Association of Homebuilders (NAHB) reports that building materials have increased in cost by an average of 5.5% due to enacted or anticipated tariffs since January 2025, underscoring the urgent need for this legislation. Moreover, according to NAHB, 60% of builders reported that as a results of tariffs, their suppliers have already increased or announced increases of material prices – with tariffs increasing the cost of a typical home by $10,900.
The bill would support the financing of 53,100 new affordable homes in the State of Washington by:
Increasing the amount of credits allocated to each state. The legislation would increase the number of credits available to states by 50 percent for the next two years and make the temporary 12.5 percent increase secured in 2018 permanent—which already helped build more than 59,000 additional affordable housing units nationwide. According to the Washington State Housing Finance Commission, this change would finance three additional shovel-ready housing properties in Washington this year – one in King County, one in a non-King County metro area, and one in a non-urban county.
Increasing the number of affordable housing projects that can be built using private activity bonds. This provision would stabilize financing for workforce housing projects built using private activity bonds by decreasing the amount of private activity bonds needed to secure Housing Credit funding. As a result, projects would have to carry less debt, and more projects would be eligible to receive funding. According to the Washington State Housing Finance Commission, this improvement will double the number of affordable homes that can be built with this incentive. This would immediately green-light an additional 3,000 shovel-ready housing units in Washington evenly split between King County and the rest of the state.
Improving the Housing Credit program to better serve at-risk and underserved communities. The legislation would also make improvements to the program to better serve veterans, victims of domestic violence, formerly homeless students, Native American communities, and rural Americans.
The bill would additionally generate 80,400 jobs and $9.07 billion in wages and business income in the State of Washington over the next decade.
Sen. Cantwell has long advocated for the need to increase the availability of affordable housing and is the leading LIHTC advocate in the Senate. She previously introduced the Affordable Housing Credit Act in 2021 and in 2023, along with Rep. Suzan DelBene (D-WA, 01). Sen. Cantwell led efforts to build a bipartisan, bicameral coalition in support of that legislation. Last Congress, Sen. Cantwell’s legislation was joined by 308 Members – 58% of the entire Congress – including 170 Democrats and 139 Republicans.
Since its creation, the Housing Credit has helped build or restore more than 100,000 affordable homes in the State of Washington. The economic activity that the credit generated has supported nearly 170,000 jobs and generated more than $19 billion in wages.
Photos of Sen. Cantwell visiting housing developments across the State of Washington funded by the Low-Income Housing Tax Credit can be found HERE.

MIL OSI USA News –

April 30, 2025

MIL-OSI USA: Stefanik Applauds Passage of Landmark Student Success and Taxpayer Savings Plan

Source: United States House of Representatives – Congresswoman Elise Stefanik (21st District of New York)

Stefanik Applauds Passage of Landmark Student Success and Taxpayer Savings Plan | Press Releases | Congresswoman Elise Stefanik

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MIL OSI USA News –

April 30, 2025

MIL-OSI USA: Warner, Colleagues Introduce Legislation to Address Housing Affordability Crisis

US Senate News:

Source: United States Senator for Commonwealth of Virginia Mark R Warner
WASHINGTON —Today U.S. Sen. Mark R. Warner joined Sens. Todd Young (R-IN) and Maria Cantwell (D-WA) in introducing legislation to help build nearly 1.6 million new affordable homes over the next decade. The Affordable Housing Credit Improvement Act would lead to more affordable housing options for families and workers by expanding and strengthening the Low-Income Housing Tax Credit, our country’s most successful affordable housing program.
Currently, nearly one-in-four renters, over 11 million families, spend more than half of their household income on rent, cutting into other essential expenses like child care, medication, groceries, and transportation. At the same time, over 600,000 Americans are experiencing homelessness on any given day, an increase over pre-COVID levels.
Since its creation, the Housing Credit has built or restored more than 4 million affordable housing units, nearly 90 percent of all federally funded affordable housing during that time. Roughly nine million American households have benefitted from the credit, and the economic activity that it generated has supported 6.6 million jobs and spurred more than $746 billion in wages.
“The Low-Income Housing Tax Credit is one of the most successful tools our country has to address the affordable housing crisis our communities are facing,” Sen. Warner said. “I’m proud to introduce bipartisan legislation to update and modernize this credit in order to build more homes, bring down costs, and tackle the growing demand for housing across the Commonwealth and the country.”
More specifically, the Affordable Housing Credit Improvement Act would:
Increase the number of credits available to states by 50 percent for the next two years and make the temporary 12.5 percent increase secured in 2018 permanent—which has already helped build more than 59,000 additional affordable housing units nationwide;
Stabilize financing for workforce housing projects built using private activity bonds by decreasing the amount of private activity bonds needed to secure Housing Credit funding. As a result, projects would have to carry less debt, and more projects would be eligible to receive funding; and
Improve the Housing Credit program to better serve veterans, victims of domestic violence, formerly homeless students, Native American communities, and rural Americans.
Joining Sens. Warner, Young, and Cantwell in introducing this legislation are Sens. Marsha Blackburn (R-TN) and Ron Wyden (D-OR). The Affordable Housing Credit Improvement Act was also recently introduced in the House of Representatives by U.S. Reps. Darin LaHood (R-IL-16), Suzan DelBene (D-WA-01), Claudia Tenney (R-NY-24), Don Beyer (D-VA-08), Randy Feenstra (R-IA-04), and Jimmy Panetta (D-CA-19).
The ACTION Campaign and the Affordable Housing Tax Credit Coalition endorsed the bill.
“The reintroduction of the Affordable Housing Credit Improvement Act is a vital step toward addressing our nation’s housing crisis. Expanding the Housing Credit is the most effective way to increase the supply of affordable housing, leveraging public-private partnerships to build and preserve homes for working families, seniors, and vulnerable communities. At a time when rents are rising and supply is lagging, strengthening the Housing Credit will ensure that more Americans have access to safe, stable, and affordable housing,” said co-chairs of the ACTION Campaign Ayrianne Parks and Jennifer Schwartz. “The ACTION Campaign thanks Senators Todd Young, Maria Cantwell, Marsha Blackburn, and Ron Wyden for their leadership.”
“The overwhelming bipartisan support for the Affordable Housing Credit Improvement Act of 2025 underscores the critical need to increase the supply of affordable rental homes,” said Affordable Housing Tax Credit Coalition Chief Executive Officer Emily Cadik. “We thank Senator Todd Young, Senator Maria Cantwell, Senator Marsha Blackburn, and Senator Ron Wyden for their leadership and the 30 bipartisan cosponsors for supporting this commonsense solution to expand and strengthen the Low-Income Housing Tax Credit, a proven, pro-growth tool with a nearly 40-year record of leveraging private investment to fill a critical need.”
This is the latest action in Sen. Warner’s longstanding efforts to make housing more affordable for Virginians. So far this year, he has already introduced the New Markets Tax Credit Extension Act, the Rural Historic Tax Credit Improvement Act, and the Historic Tax Credit Growth and Opportunity Act – all bipartisan bills to encourage redevelopment and new construction in communities across the country. He is also the lead sponsor of the Neighborhood Homes Investment Act – which would create a new tax incentive to build and preserve more than 500,000 affordable, single-family homes over ten years – and the lead author of the Low-Income First Time Homebuyers (LIFT) Act to help qualified, first-generation homebuyers build equity in their homes by offering a 20-year mortgage for roughly the same monthly payment as a traditional 30-year loan. Warner has also joined his colleagues in sponsoring the Downpayment Toward Equity Act, which would provide federal grants to assist first-generation homebuyers with qualifying expenses toward purchasing their first home, including down payment costs, closing costs, and costs to reduce the rates of interest.
Full text of the bill is available here.

MIL OSI USA News –

April 30, 2025

MIL-OSI: Silicon Motion Announces Results for the Period Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

Business Highlights

First quarter of 2025 sales decreased 13% Q/Q and decreased 12% Y/Y
- SSD controller sales: 1Q of 2025 decreased 10% to 15% Q/Q and decreased 20% to 25% Y/Y
- eMMC+UFS controller sales: 1Q of 2025 decreased 15% to 20% Q/Q and decreased 0% to 5% Y/Y
- SSD solutions sales: 1Q of 2025 decreased 20% to 25% Q/Q and decreased 35% to 40% Y/Y
Announced new $50 million share repurchase program

Financial Highlights

	1Q 2025 GAAP	1Q 2025 Non-GAAP*
• Net sales	$166.5 million (-13% Q/Q, -12% Y/Y)	$166.5 million (-13% Q/Q, -12% Y/Y)
• Gross margin	47.1%	47.1%
• Operating margin	5.9%	8.9%
• Earnings per diluted ADS	$0.58	$0.60

* Please see supplemental reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.

TAIPEI, Taiwan and MILPITAS, Calif., April 30, 2025 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended March 31, 2025. For the first quarter of 2025, net sales (GAAP) decreased sequentially to $166.5 million from $191.2 million in the fourth quarter of 2024. Net income (GAAP) decreased to $19.5 million, or $0.58 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $21.6 million, or $0.64 per diluted ADS (GAAP), in the fourth quarter of 2024.

For the first quarter of 2025, net income (non-GAAP) decreased to $20.3 million, or $0.60 per diluted ADS (non-GAAP), from net income (non-GAAP) of $29.4 million, or $0.87 per diluted ADS (non-GAAP), in the fourth quarter of 2024.

All financial numbers are in U.S. dollars unless otherwise noted.

First Quarter of 2025 Review

“Despite the challenging macro environment in the first quarter of 2025, we executed our plan and delivered quarterly revenue at the high end of our guided range and delivered another quarter of gross margin expansion,” stated Wallace Kou, President and CEO of Silicon Motion. “Our industry leading PCIe Gen 5 controller experienced stronger than expected demand during the quarter, partially driven by growing AI inference demands from white box server makers leveraging more mainstream hardware components. Our eMMC and UFS controllers also experienced better than expected demand given a rebound in the smartphone market and our ongoing market share gains. While the near-term remains challenging given the broader economic challenges associated with tariffs and potential trade wars, we remain focused on delivering strong, sustainable long-term growth through product diversification; expanding into new markets; and growing market share across our portfolio of consumer, enterprise, automotive, industrial and storage solutions.”

Key Financial Results

($ in millions, except per ADS amounts)	GAAP			Non-GAAP
($ in millions, except per ADS amounts)	1Q 2025	4Q 2024	1Q 2024	1Q 2025	4Q 2024	1Q 2024
Revenue	$166.5	$191.2	$189.3	$166.5	$191.2	$189.3
Gross profit	$78.4	$87.6	$85.1	$78.4	$87.9	$85.2
Percent of revenue	47.1%	45.8%	45.0%	47.1%	46.0%	45.0%
Operating expenses	$68.6	$69.9	$67.2	$63.6	$58.3	$62.5
Operating profit	$9.8	$17.7	$18.0	$14.9	$29.6	$22.6
Percent of revenue	5.9%	9.3%	9.5%	8.9%	15.5%	12.0%
Earnings per diluted ADS	$0.58	$0.64	$0.48	$0.60	$0.87	$0.64

Other Financial Information

($ in millions)	1Q 2025	4Q 2024	1Q 2024
Cash, cash equivalents, and restricted cash—end of period	$331.7	$334.3	$349.3
Routine capital expenditures	$7.0	$7.3	$5.0
Dividend payments	$17.0	$16.8	$16.8
Share repurchases	$24.3	—	—

During the first quarter of 2025, we had $11.7 million of capital expenditures, including $7.0 million for the routine purchases of testing equipment, software, design tools and other items, and $4.7 million for building construction in Hsinchu, Taiwan.

Returning Value to Shareholders

On February 6, 2025, we announced that our Board of Directors had authorized a new program for the Company to repurchase up to $50 million of our ADSs over a six-month period. In the first quarter of 2025, we repurchased $24.3 million of our ADSs at an average price of $56.96 per ADS.

Business Outlook

“We are rapidly expanding our market opportunities as we invest in new products and enter new markets, which we anticipate will drive improved revenue and profitability for many years to come. In 2025, we expect to benefit from the introduction of several new products, including our 8-channel PCIE Gen 5 controller, our 4-channel PCIe Gen 5 controller targeting the mass market that will be introduced in late 2025, our higher-end UFS 4.1 and new low-cost UFS 2.2 controllers that will ramp in the second half of 2025. We introduced our first MonTitan enterprise/AI-class products at the end of 2024, and we expect these to ramp-up production with our first customers in the second half of 2025. Additionally, we continue to expand our automotive product portfolio and our market share across multiple applications. While the near-term environment remains challenging given the macro environment, including the potential impact of tariffs and potential trade wars, we continue to believe we will see a strong rebound in the consumer markets in the second half of 2025, enhanced by our new product introductions, and we continue to target a revenue run rate of $1 billion as we exit the year.”

For the second quarter of 2025, management expects:

($ in millions, except percentages)	GAAP	Non-GAAP Adjustment	Non-GAAP
Revenue	$175 to $183 +5% to 10% Q/Q	—	$175 to $183 +5% to 10% Q/Q
Gross margin	47.0% to 48.0%	Approximately $0.1*	47.0% to 48.0%
Operating margin	6.6% to 9.2%	Approximately $3.1 to $4.1**	8.9% to 10.9%

* Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $3.1million to $4.1 million of stock-based compensation and dispute related expenses.

Conference Call & Webcast:

The Company’s management team will conduct a conference call at 8:00 am Eastern Time on April 30, 2025.

Conference Call Details
Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.

Participant Online Registration:
https://register-conf.media-server.com/register/BI5c69a4c2d96041b59a2bf8a51cec1881

A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

Discussion of Non-GAAP Financial Measures

To supplement the Company’s unaudited selected financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
a better understanding of how management plans and measures the Company’s underlying business; and
an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments.

Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items, which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.

Silicon Motion Technology Corporation Consolidated Statements of Income (in thousands, except percentages and per ADS data, unaudited)

	For Three Months Ended
	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Net Sales	189,311	191,160	166,492
Cost of sales	104,191	103,560	88,125
Gross profit	85,120	87,600	78,367
Operating expenses
Research & development	54,392	54,156	55,026
Sales & marketing	6,304	7,360	7,115
General & administrative	6,474	8,350	6,460
Operating income	17,950	17,734	9,766
Non-operating income (expense)
Interest income, net	3,066	3,768	2,929
Foreign exchange gain, net	588	1,046	373
Realized/Unrealized gain(loss) on investments	(1,608)	956	3,296
Subtotal	2,046	5,770	6,598
Income before income tax	19,996	23,504	16,364
Income tax expense (benefit)	3,980	1,935	(3,099)
Net income	16,016	21,569	19,463

Earnings per basic ADS	0.48	0.64	0.58
Earnings per diluted ADS	0.48	0.64	0.58

Margin Analysis:
Gross margin	45.0%	45.8%	47.1%
Operating margin	9.5%	9.3%	5.9%
Net margin	8.5%	11.3%	11.7%

Additional Data:
Weighted avg. ADS equivalents	33,508	33,690	33,634
Diluted ADS equivalents	33,701	33,814	33,827

Silicon Motion Technology Corporation Reconciliation of GAAP to Non-GAAP Operating Results (in thousands, except percentages and per ADS data, unaudited)

	For Three Months Ended
	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Gross profit (GAAP)	85,120	87,600	78,367
*Gross margin (GAAP)*	45.0%	45.8%	47.1%
Stock-based compensation (A)	72	162	73
Restructuring charges	–	164	–
Gross profit (non-GAAP)	85,192	87,926	78,440
*Gross margin (non-GAAP)*	45.0%	46.0%	47.1%

Operating expenses (GAAP)	67,170	69,866	68,601
Stock-based compensation (A)	(3,093)	(9,585)	(4,738)
Dispute related expenses	(1,532)	(1,999)	(277)
Operating expenses (non-GAAP)	62,545	58,282	63,586

Operating profit (GAAP)	17,950	17,734	9,766
*Operating margin (GAAP)*	9.5%	9.3%	5.9%
Total adjustments to operating profit	4,697	11,910	5,088
Operating profit (non-GAAP)	22,647	29,644	14,854
*Operating margin (non-GAAP)*	12.0%	15.5%	8.9%

Non-operating income (expense) (GAAP)	2,046	5,770	6,598
Foreign exchange loss (gain), net	(588)	(1,046)	(373)
Realized/Unrealized loss (gain) on investments	1,608	(956)	(3,296)
Non-operating income (expense) (non-GAAP)	3,066	3,768	2,929

Net income (GAAP)	16,016	21,569	19,463
Total pre-tax impact of non-GAAP adjustments	5,717	9,908	1,419
Income tax impact of non-GAAP adjustments	(147)	(2,049)	(610)
Net income (non-GAAP)	21,586	29,428	20,272

Earnings per diluted ADS (GAAP)	$0.48	$0.64	$0.58
Earnings per diluted ADS (non-GAAP)	$0.64	$0.87	$0.60

Shares used in computing earnings per diluted ADS (GAAP)	33,701	33,814	33,827
Non-GAAP adjustments	26	181	20
Shares used in computing earnings per diluted ADS (non-GAAP)	33,727	33,995	33,847

(A)Excludes stock-based compensation as follows:
Cost of sales	72	162	73
Research & development	2,143	6,670	3,003
Sales & marketing	347	978	862
General & administrative	603	1,937	873

Silicon Motion Technology Corporation Consolidated Balance Sheet (In thousands, unaudited)

	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Cash and cash equivalents	294,814	276,068	275,140
Accounts receivable (net)	186,154	233,744	206,693
Inventories	253,316	199,229	180,903
Refundable deposits – current	49,610	54,645	53,015
Prepaid expenses and other current assets	17,944	31,187	32,102
Total current assets	801,838	794,873	747,853
Long-term investments	15,489	17,326	20,636
Property and equipment (net)	174,420	188,398	193,603
Other assets	32,529	30,739	29,310
Total assets	1,024,276	1,031,336	991,402

Accounts payable	64,810	17,773	23,048
Income tax payable	10,702	13,107	14,782
Accrued expenses and other current liabilities	135,425	168,624	130,277
Total current liabilities	210,937	199,504	168,107
Other liabilities	59,883	59,548	50,968
Total liabilities	270,820	259,052	219,075
Shareholders’ equity	753,456	772,284	772,327
Total liabilities & shareholders’ equity	1,024,276	1,031,336	991,402

Silicon Motion Technology Corporation Condensed Consolidated Statements of Cash Flows (in thousands, unaudited)

	For Three Months Ended
	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Net income	16,016	21,569	19,463
Depreciation & amortization	5,608	7,256	7,225
Stock-based compensation	3,165	9,747	4,811
Investment losses (gain) & disposals	1,608	(956)	(3,309)
Changes in operating assets and liabilities	(18,586)	(43,774)	22,082
Net cash provided by (used in) operating activities	7,811	(6,158)	50,272

Purchase of property & equipment	(10,749)	(10,836)	(11,661)
Proceeds from disposal of properties	–	3	13
Purchase of long-term investments	–	(4,173)	–
Disposal of long-term investments	–	4,432	–
Net cash provided by (used in) investing activities	(10,749)	(10,574)	(11,648)

Dividend payments	(16,808)	(16,814)	(16,956)
Share repurchases	–	–	(24,291)
Net cash used in financing activities	(16,808)	(16,814)	(41,247)

Net increase (decrease) in cash, cash equivalents & restricted cash	(19,746)	(33,546)	(2,623)
Effect of foreign exchange changes	35	(717)	37
Cash, cash equivalents & restricted cash—beginning of period	368,990	368,596	334,333
Cash, cash equivalents & restricted cash—end of period	349,279	334,333	331,747

About Silicon Motion:

We are the global leader in supplying NAND flash controllers for solid state storage devices. We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications. We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.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 Exchange Act. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China, including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

The MIL Network –

April 30, 2025

MIL-OSI: GBank Financial Holdings Inc. Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

LAS VEGAS, April 29, 2025 (GLOBE NEWSWIRE) — GBank Financial Holdings Inc. (the “Company”) (OTCQX: GBFH), the parent company of GBank (the “Bank”), today reported net income for the quarter ended March 31, 2025 of $4.5 million, or $0.31 per diluted share, compared to $5.2 million, or $0.37 per diluted share during the fourth quarter of 2024, and $3.7 million, or $0.29 per diluted share, for the first quarter of 2024.

First Quarter 2025 Financial Highlights (Unaudited)

Net income of $4.5 million and diluted earnings per share of $0.31

Net revenue⁽¹⁾of $17.4 million, an increase of 31.4% compared to the first quarter of 2024

SBA Lending and Commercial Banking loan originations of $133.0 million, compared to $136.6 million for the first quarter of 2024

Gain on sale of loans of $2.5 million on loans sold of $68.7 million, compared to gain on sale of loans of $2.1 million on loans sold of $68.6 million for the first quarter of 2024

Credit card charge transactions of $105.6 million and net interchange fees of $2.0 million, compared to $1.1 million and $20 thousand, respectively, for the first quarter of 2024

Non-interest expenses include legal, professional, and audit fees from registration on Forms S-1 and S-1A, which total approximately $1.1 million to date

Net interest margin of 4.47%

Total deposit growth of $189.0 million, or 23.4% compared to March 31, 2024

Total on-balance sheet guaranteed loans of $245.6 million, compared to $263.5 million as of March 31, 2024

Non-performing assets, excluding guaranteed portions, of $5.7 million, representing 0.48% of total assets

Edward M. Nigro, Executive Chairman, stated, “While quarterly net revenues⁽¹⁾ increased 31% over the first quarter of 2024, our first quarter noninterest income, driven by the increased monetization of Gaming FinTech operations, increased 51% year-over-year with noninterest revenue exceeding $5 million. And in just these last two weeks, GBFH received SEC approval of its S-1 filing and was approved to commence trading on NASDAQ – we have been busy.”

Registration Statement on Form S-1

On April 16, 2025, the Company announced that the U.S. Securities and Exchange Commission declared effective the Company’s Registration Statement on Form S-1 (the “Form S-1”) related to registration and resale of 1,081,081 shares of common stock, currently held by existing stockholders and issued in the Company’s Private Placement Offering (the “Offering”) which closed on October 11, 2024.

The Company is not currently offering or selling new shares of common stock, and there will be no change to the issued and outstanding number of shares of common stock of the Company in connection with the Form S-1. Copies of the prospectus included in the Registration Statement may be obtained from the Company by request or by visiting
https://www.sec.gov/Archives/edgar/data/1791145/000147793225002363/gbfh_s1.htm.

Financial Results

Income Statement

Net interest income totaled $11.9 million for the first quarter of 2025, reflecting an increase of $105 thousand, or 0.9%, compared to $11.8 million for the fourth quarter of 2024, and an increase of $1.1 million, or 10.1%, compared to the first quarter of 2024.

The increase in net interest income from the fourth quarter was driven by a favorable reduction in the cost of deposits, partially offset by lower interest income on loans. The favorable decrease in the cost of deposits of $305 thousand was the result of (i) the redemption of $20 million of certain higher-cost callable brokered deposits during the quarter having a weighted-average interest rate of 4.95%, (ii) rate decreases on interest-bearing deposits resulting from the 50 basis point decrease in the federal funds rate enacted during the fourth quarter 2024 by the Federal Open Market Committee (“FOMC”), and (iii) the non-recurring effect of accelerated recognition of certain premiums on brokered certificates of deposits during the fourth quarter of 2024 totaling $170 thousand. The favorable decrease in the cost of deposits was partially offset by a decrease in interest income on loans of $395 thousand primarily due to the full-quarter impact of the previously mentioned 50 basis point decrease in the federal funds rate on the Bank’s variable rate loan portfolio. Interest income for the first quarter of 2025 reflects the net effect of the reversal of $100 thousand of interest accruals, deferred fees, and deferred costs attributable to $2.8 million of commercial loans placed on nonaccrual status during the first quarter of 2025. Comparatively, the fourth quarter of 2024 reflects the net effect of the reversal of $342 thousand of interest accruals, deferred fees, and deferred costs attributable to $12.4 million of commercial loans placed on nonaccrual status.

The increase in net interest income when compared to the first quarter of 2024 was primarily volume driven, as higher interest income from growth in average loan and interest-bearing cash balances more than offset increases in interest expense resulting from higher average balances of interest-bearing deposits.

Investment securities yield was 4.94% for the first quarter of 2025, compared to 4.74% for the fourth quarter of 2024 and 4.16% for the first quarter of 2024. The increase in investment securities yield when compared to the previous linked quarter and to the same quarter of 2024 was driven by the purchase of $72.9 million of investment securities over the previous twelve months to replace certain lower-yielding U.S. Treasury securities that matured during 2024.

The Company’s net interest margin for the first quarter of 2025 decreased to 4.47%, compared to 4.53% for the fourth quarter of 2024 and 4.85% for the first quarter of 2024. The decrease in net interest margin when compared to the fourth and first quarters of 2024 is reflective of the full-quarter impact of the 50 basis point decrease in the federal funds rate enacted in during the fourth quarter of 2024 by the FOMC on variable rate loans, investment securities, and interest bearing cash balances and interest income reversals relating to loans placed on nonaccrual status during the quarter.

The Company recorded a provision for credit losses on loans of $710 thousand for the first quarter of 2025, a decrease of $627 thousand compared to $1.3 million for the fourth quarter of 2024. No provision for credit losses on loans was recorded during the first quarter of 2024. The provision for credit losses on loans recorded in the first quarter of 2025 reflects quarterly growth in non-guaranteed loans of $24.4 million.

Non-interest income was $5.5 million for the first quarter of 2025, compared to $5.8 million for the fourth quarter of 2024, and $2.4 million for the first quarter of 2024. The $301 thousand decrease in non-interest income when compared to the fourth quarter of 2024 was driven by a $1.5 million decrease in income from gain on sale of loans due to a decrease in average pretax gain on sale margin and lower sales volume quarter-over-quarter. The decrease in gain on sale of loans was partially offset by an increase in credit card net interchange fees of $1.1 million quarter-over-quarter due to increased credit card transaction volume. The $3.1 million increase in non-interest income when compared to the first quarter of 2024 was driven by (i) an increase in credit card net interchange fees of $2.0 million, (ii) a $643 thousand increase in loan servicing income as the first quarter of 2024 reflected the write-off of certain loan servicing assets totaling $401 thousand relating to the repurchase of the guaranteed portion of previously sold SBA loans, and (iii) a $454 thousand increase in income from gain on sale of loans.

Net revenue⁽¹⁾ totaled $17.4 million for the first quarter of 2025, representing a decrease of $196 thousand, or 1.1%, compared to $17.6 million for the fourth quarter of 2024. Net revenue⁽¹⁾ for the first quarter of 2025 increased $4.2 million, or 31.4%, when compared to $13.2 million for the first quarter of 2024.

Non-interest expense was $10.9 million during the first quarter of 2025, compared to $9.7 million for the fourth quarter of 2024 and $8.4 million for the first quarter of 2024. The Company’s efficiency ratio was 62.8%, compared to 55.4% for the fourth quarter of 2024 and 63.4% for the first quarter of 2024. The increase in non-interest expense from the fourth quarter of 2024 is primarily due to an increase of $587 thousand in employee compensation costs attributable to higher commission expenses related to loan production. The increase in non-interest expense also reflects extraordinary legal, professional, and audit fees incurred to date totaling $1.1 million associated with the preparation and filing of the registration statement with the Securities and Exchange Commission on Forms S-1 and S-1/A, approximately $786 thousand of these expenses were incurred during the first quarter of 2025. Additionally, data processing expenses increased $201 thousand when compared to the fourth quarter of 2024 related mainly to higher credit card volume. The increase in non-interest expense from the first quarter of 2024 was driven by a $1.1 million increase in employee compensation costs due to increased staffing levels, as well as a $1.5 million increase in other expenses due to the previously mentioned legal, professional, and audit fees associated with the registration statement filing and increases in data processing, supplies, and other non-interest expenses to support the growth of the organization.

Income tax expense was $1.2 million for each of the quarters ended March 31, 2025 and December 31, 2024, and $1.1 million for the first quarter of 2024. The Company’s effective tax rate was 21.4% for the quarter ended March 31, 2025 compared to 19.1% for the quarter ended December 31, 2024 and 23.1% for the quarter ended March 31, 2024. The fluctuations in the effective tax rate are largely driven by the timing and volume of certain stock-based compensation transactions resulting in tax benefits to the Company, as well as the timing and volume of state tax adjustments.

Net income was $4.5 million for the first quarter of 2025, a decrease of $774 thousand from $5.2 million for the fourth quarter of 2024, and an increase of $769 thousand from $3.7 million for the first quarter of 2024. Diluted earnings per share totaled $0.31 for the first quarter of 2025, compared to $0.37 for the fourth quarter of 2024 and $0.29 for the first quarter of 2024. Earnings per share and other share-based metrics have been impacted by the shares issued in the previously mentioned Offering.

The Company had 175 full-time equivalent employees as of March 31, 2025, compared to 169 full-time equivalent employees as of December 31, 2024, and 150 full-time equivalent employees as of March 31, 2024.

Balance Sheet

Total loans, net of deferred fees and costs were $843.4 million as of March 31, 2025, compared to $816.0 million as of December 31, 2024, and $733.6 million as of March 31, 2024. Loans, net of deferred fees and costs increased $27.4 million during the first quarter of 2025 as increases in commercial real estate loans more than offset decreases in commercial and industrial and residential loans. The increase in loans, net of deferred fees and costs of $109.8 million from March 31, 2024 was primarily driven by increases of $97.7 million in commercial real estate loans. Total guaranteed loans as a percentage of loans⁽¹⁾ were 24.2% as of March 31, 2025, compared to 24.7% as of December 31, 2024, and 29.8% as of March 31, 2024.

The Company’s allowance for credit losses totaled $9.0 million as of March 31, 2025, compared to $9.1 million as of December 31, 2024 and $7.1 million as of March 31, 2024. The allowance for credit losses as a percentage of total loans was 1.07% as of March 31, 2025, compared to 1.12% as of December 31, 2024, and 0.97% as of March 31, 2024. The allowance for loan losses as a percentage of total loans, excluding guaranteed portions⁽¹⁾, was 1.41% as of March 31, 2025, compared to 1.48% as of December 31, 2024, and 1.38% as of March 31, 2024.

Deposits totaled $995.9 million as of March 31, 2025, an increase of $60.9 million from $935.1 million as of December 31, 2024, and an increase of $189.0 million from $806.9 million as of March 31, 2024. By deposit type, the increase from the prior quarter was driven by an increase of $40.7 million in certificates of deposit and a $23.3 million increase in savings and money market accounts. From March 31, 2024, certificates of deposit increased by $83.9 million, and savings and money market accounts increased by $80.5 million. Noninterest-bearing deposits totaled $242.7 million as of March 31, 2025, an increase of $3.0 million from $239.7 million as of December 31, 2024, and an increase of $26.3 million from $216.3 million as of March 31, 2024.

The Company’s ratio of loans to deposits was 84.7% as of March 31, 2025, compared to 87.3% as of December 31, 2024, and 90.9% as of March 31, 2024.

The Company held no short-term borrowings as of March 31, 2025 or December 31, 2024, compared to short term borrowings of $10.0 million as of March 31, 2024. As of March 31, 2025, the Company had approximately $488.3 million in available borrowing capacity from the Federal Reserve Bank, the Federal Home Loan Bank, and through its various Fed Funds lines.

Subordinated notes totaled $26.1 million as of March 31, 2025 and December 31, 2024, compared to $26.0 million as of March 31, 2024.

Stockholders’ equity was $146.6 million as of March 31, 2025, compared to $140.7 million as of December 31, 2024, and $102.6 million as of March 31, 2024. The increase in stockholders’ equity from December 31, 2024 is attributable to increases in retained earnings resulting from net income earned during the quarter. The increase in stockholders’ equity since March 31, 2024 was driven by the previously mentioned Offering, net income earned during the previous twelve months, as well as an increase in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BankCard Services, LLC (“BCS“) during the second quarter of 2024.

The Company’s common equity to tangible assets ratio was 12.3% as of March 31, 2025, compared to 12.5% as of December 31, 2024, and 10.6% as of March 31, 2024. The Bank’s Tier 1 leverage ratio was 14.2% as of March 31, 2025, compared to 12.9% as of December 31, 2024, and 13.0% as of March 31, 2024. The increase in the Bank’s Tier 1 leverage ratio was the result of the downstream of $15.0 million in additional capital from the holding company to the Bank during the first quarter of 2025. The Company’s book value per share was $10.27 as of March 31, 2025, an increase of 4.1% from $9.87 as of December 31, 2024, and an increase of 28.4% from $8.00 as of March 31, 2024. The increase in tangible book value per share from December 31, 2024 is attributable to net income and increases in additional paid in capital resulting from certain stock-based compensation activity during the quarter. The increase since March 31, 2024 is attributable to net income, the Offering, and the increases in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BCS during the second quarter of 2024.

Total assets increased 6.0% to $1.190 billion as of March 31, 2025, from $1.122 billion as of December 31, 2024, and increased 23.5% from $963.4 million as of March 31, 2024. The increase in total assets from December 31, 2024 was primarily driven by increases in loans and interest-bearing deposits with banks. The increase in total assets from March 31, 2024 was primarily driven by increases in loans, interest bearing deposits with banks, and investment securities.

Asset Quality

The provision for credit losses on loans totaled $710 thousand for the first quarter of 2025, compared to $1.3 million for the fourth quarter of 2024. No provision for credit losses on loans was recorded during the first quarter of 2024. Net loan charge-offs in the first quarter of 2025 totaled $828 thousand, or 0.39% of average net loans (annualized), compared to net loan charge-offs of $157 thousand, or 0.07% of average net loans (annualized) in the fourth quarter of 2024 and no net loan charge-offs or recoveries during the first quarter of 2024.

Nonaccrual loans increased $5.1 million during the quarter to $19.2 million as of March 31, 2025, and increased $13.1 million from $6.1 million as of March 31, 2024. Loans past due 90 days and accruing interest totaled $1.2 million as of March 31, 2025, compared to $40 thousand as of December 31, 2024, and $33 thousand as of March 31, 2024. The balance of loans past due 90 days and accruing of $1.2 million at March 31, 2025 was comprised of one commercial real estate loan totaling $1.1 million and certain credit card balances totaling $49 thousand.

The Company held no other real estate owned as of March 31, 2025 or 2024, or December 31, 2024.

Total non-performing assets totaled $20.4 million as of March 31, 2025, an increase of $6.2 million from $14.2 million as of December 31, 2024, and an increase of $14.2 million from $6.1 million as of March 31, 2024. Non-performing assets, excluding guaranteed portions, totaled $5.7 million as of March 31, 2025, an increase of $839 thousand from $4.8 million as of December 31, 2024 and an increase of $4.1 million from $1.6 million as of March 31, 2024.

Loans past due between 30 and 89 days and accruing interest totaled $14.9 million as of March 31, 2025, an increase of $3.0 million from $11.8 million as of December 31, 2024, and an increase of $11.4 million from $3.4 million as of March 31, 2024. The guaranteed portion of loans past due between 30 and 89 days and accruing interest totaled $11.9 million as of March 31, 2025.

The ratio of total non-performing assets to total assets was 1.71% as of March 31, 2025, compared to 1.26% as of December 31, 2024, and 0.64% as of March 31, 2024. The ratio of non-performing assets, excluding guaranteed portions, to total assets⁽¹⁾ was 0.48% as of March 31, 2025, compared to 0.43% as of December 31, 2024, and 0.16% as of March 31, 2024.

Other Financial Highlights

SBA Lending and Commercial Banking

SBA Lending and Commercial Banking loan originations totaled $133.0 million for the first quarter of 2025, compared to $120.0 million for the fourth quarter of 2024 and $136.6 million for the first quarter of 2024. Loan sale volume decreased to $68.7 million during the first quarter of 2025, compared to $98.5 million for the fourth quarter of 2024, and increased slightly from $68.6 million during the first quarter of 2024. Gain on sale of loans decreased 36.5% to $2.5 million, compared to $4.0 million for the fourth quarter of 2024, and increased 21.8% from $2.1 million for the first quarter of 2024. The average pretax gain on sale of loans margin was 3.69% for the first quarter of 2025, compared to 4.06% for the fourth quarter of 2024 and 3.04% for the first quarter of 2024.

Gaming FinTech

GBank’s partner, BCS, has been actively developing its pipeline of Pooled Player and Pooled Consumer Accounts “Powered by PIMS and CIMS”™. BCS is currently onboarding three new programs. BCS is working with two gaming operators as a part of the latest Product Express partnership with MasterCard and i2c announced during the third quarter of 2024. One client is a cash access service provider in the casino industry and the other is a social gaming operator. Both are working to onboard their prepaid issuing program through this partnership. These programs are expected to be active early in the second quarter of 2025. BCS has executed an additional card issuing agreement with a client offering prepaid access services for cashless venues nationwide. This program went live in the first quarter of 2025. Additionally, the BoltBetz slot machine application is now expected to be fully live in the second quarter of 2025.

BCS and GBank now have seventeen active payment and PPA/PCA clients. Currently, BCS and GBank are conducting due diligence for three new clients, with anticipated onboarding in future quarters. Gaming FinTech deposits averaged $37.1 million for the first quarter of 2025, compared to $30.5 million for the fourth quarter of 2024.

The Bank launched its GBank Visa Signature® Card in the second quarter of 2023 for prime and super-prime consumers, offering one percent cash rewards on gaming transactions and two percent cash rewards on all other purchases.

Credit card charge transactions were $105.6 million for the first quarter of 2025, compared to $51.7 million for the fourth quarter of 2024 and $1.1 million for the first quarter of 2024. Credit card balances were $2.3 million as of March 31, 2025, compared to $1.6 million as of December 31, 2024 and $542 thousand as of March 31, 2024. Through March 31, 2025, and since launch, the Bank has processed over $172 million in gaming transactions through its credit card product.

GBank continues to develop and improve its operational credit card systems, including the internal implementation of application landing pages and internal customer service resources. These efforts are a continuation of the Company’s ongoing strategy to ultimately manage all systems directly as opposed to relying on outsourced third parties. Direct control over these critical resources has become more important as we focus are executing on new marketing agreements, create significant additional social media presence, and require related product systems with the ability to perform on a mass scale. Implementation and testing of these initiatives is currently underway with completion anticipated during the third quarter of 2025, which is expected to cause slowing growth in credit card transactions and growth over the short-term.

Non-Voting Equity Investment in BankCard Services, LLC

On June 26, 2024, the Company announced the acquisition of a 32.99% non-voting equity interest in BCS. This acquisition was completed by exchanging 231,508 shares of restricted, non-voting GBFH common stock for 143,371 shares of non-voting BCS common stock. The GBFH non-voting stock must be held by BCS for a minimum of one year and can only be converted into voting shares upon a disposition by BCS, in accordance with applicable Federal Reserve regulations.

Earnings Call

The Company will host its first quarter 2025 earnings call on Wednesday, April 30, 2025, at 10:00 a.m. PST. Interested parties can participate remotely via Internet connectivity. There will be no physical location for attendance.

Interested parties may join online, via the ZOOM app on their smartphones, or by telephone:

ZOOM Conference ID 826 3030 7240
Passcode: 549549

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Notice Regarding Disclosures and Forward-Looking Statements

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (“Securities Act”). This announcement is being issued in accordance with Rule 135 under the Securities Act.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding certain of the Company’s goals and expectations with respect to future events that are subject to various risks and uncertainties, and statements preceded by, followed by, or that include the words “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions. These statements are based upon the current belief and expectations of the Company’s management team and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations include, but are not limited to: the impact on us or our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reductions in interest rates and a resulting decline in net interest income; the persistence of the inflationary pressures, or the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; regulatory considerations; our ability to recognize the expected benefits and synergies of our completed acquisitions; the maintenance and development of well-established and valued client relationships and referral source relationships; acquisition or loss of key production personnel; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. These forward-looking statements are based on current information and/or management’s good faith belief as to future events. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. The forward-looking statements are made as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

GBank Financial Holdings Inc.
9115 West Russell Road, Suite 110
Las Vegas, Nevada 89148
https://www.gbankfinancialholdings.com/

FIRST QUARTER 2025 FINANCIAL RESULTS (UNAUDITED)

Quarter Highlights:
Net Income	Earnings per diluted share	Net revenue⁽¹⁾	Net interest margin	On-balance sheet guaranteed loans	Book value per common share
$4.5 million	$0.31	$17.4 million	4.47%	$245.6 million	$10.27

CEO COMMENTARY:

“Our results reflect a continuation of strong earnings, with Company revenues absorbing elevated one-time costs, including SEC related audit, accounting, and legal expenses, which have now totaled approximately $1.1 million to date,” stated T. Ryan Sullivan, President/CEO

LINKED QUARTER BASIS

QTD YEAR-OVER-YEAR

FINANCIAL HIGHLIGHTS:
Net income of $4.5 million and earnings per diluted share of $0.31, compared to $5.2 million and $0.37, respectively Net interest income of $11.9 million, an increase of 0.9%, or $105 thousand	Net income of $4.5 million and earnings per diluted share of $0.31, compared to $3.7 million and $0.29, respectively Net interest income of $11.9 million, an increase of 10.1%, or $1.1 million
Gain on sale of loans of $2.5 million, a decrease of 36.5%, or $1.5 million	Gain on sale of loans of $2.5 million, an increase of 21.8%, or $454 thousand
Noninterest income of $5.5 million, a decrease of 5.2%, or $301 thousand	Noninterest income of $5.5 million, an increase of 127.2%, or $3.1 million
Net revenue⁽¹⁾ of $17.4 million, a decrease of 1.1%, or $196 thousand	Net revenue⁽¹⁾ of $17.4 million, an increase of 31.4%, or $4.2 million
Noninterest expense of $10.9 million, an increase of 12.2%, or $1.2 million	Noninterest expense of $10.9 million, an increase of 30.2%, or $2.5 million

FINANCIAL POSITION RESULTS:
On-balance sheet guaranteed loans of $245.6 million, an increase of 5.0%, or $11.6 million	On-balance sheet guaranteed loans of $245.6 million, a decrease of 6.8%, or $18.0 million
Total deposits of $996.0 million, an increase of 6.5%, or $60.9 million	Total deposits of $996.0 million, an increase of 23.4%, or $189.0 million
Stockholders’ equity of $146.6 million, an increase of 4.2%, or $5.9 million	Stockholders’ equity of $146.6 million, an increase of 42.9%, or $44.0 million

LOANS AND ASSET QUALITY:
Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 1.26% Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.43%	Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 0.64% Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.16%
ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.48%	ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.38%

KEY PERFORMANCE METRICS:
Net interest margin decreased to 4.47%, compared to 4.53%	Net interest margin decreased to 4.47%, compared to 4.85%
Loan originations of $133.0 million, an increase of 10.9%, or $13.0 million	Loan originations of $133.0 million, a decrease of 2.7%, or $3.6 million
Return on average assets and equity was 1.61% and 12.59%, compared to 1.93% and 15.13%, respectively	Return on average assets and equity was 1.61% and 12.59%, compared to 1.59% and 14.67%, respectively
Book value per share of $10.27, an increase of 4.1% from $9.87	Book value per share of $10.27, an increase of 28.4% from $8.00

GBank Financial Holdings Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

																Linked Quarter					Quarter YOY
																3/31/25 vs. 12/31/24					3/31/25 vs. 3/31/24
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			$ Var			% Var		$ Var			% Var
Assets
Cash and Due From Banks	$	6,701		$	9,262		$	5,798		$	5,409		$	8,334		$	(2,561	)	-27.6	%	$	(1,633	)	-19.6	%
Interest-Bearing Deposits With Other Financial Institutions		140,270			114,860			65,160			82,749			45,844			25,410		22.1	%		94,426		206.0	%
Total Cash and Cash Equivalents		146,971			124,122			70,958			88,158			54,178			22,849		18.4	%		92,793		171.3	%

Investment Securities:
Available For Sale, at Fair Value		71,468			65,609			39,381			2,330			2,588			5,859		8.9	%		68,880		2661.5	%
Held to Maturity, at Amortized Cost		39,903			40,569			46,043			56,520			86,999			(666	)	-1.6	%		(47,096	)	-54.1	%

Loans Held For Sale		41,313			32,649			68,317			40,489			44,901			8,664		26.5	%		(3,588	)	-8.0	%
Loans, Net of Deferred Fees and Costs:
Commercial and Industrial		56,885			64,000			53,490			50,498			46,863			(7,115	)	-11.1	%		10,022		21.4	%
Commercial Real Estate – Non-owner Occupied		672,379			630,551			607,864			583,463			546,408			41,828		6.6	%		125,971		23.1	%
Commercial Real Estate – Owner Occupied		81,768			88,802			86,785			106,595			110,065			(7,034	)	-7.9	%		(28,297	)	-25.7	%
Construction and Land Development		3,201			2,934			2,161			529			386			267		9.1	%		2,815		729.3	%
Multifamily		19,011			17,374			17,398			17,420			17,037			1,637		9.4	%		1,974		11.6	%
Residential		7,619			10,584			12,025			13,443			12,281			(2,965	)	-28.0	%		(4,662	)	-38.0	%
Consumer		2,502			1,713			1,276			909			549			789		46.1	%		1,953		355.7	%
Total Loans, Net of Deferred Fees and Costs		843,365			815,958			780,999			772,857			733,589			27,407		3.4	%		109,776		15.0	%
Less: Allowance for Credit Losses		(8,997	)		(9,114	)		(7,934	)		(7,342	)		(7,088	)		117		-1.3	%		(1,909	)	26.9	%
Total Net Loans		834,368			806,844			773,065			765,515			726,501			27,524		3.4	%		107,867		14.8	%

Loan Servicing Asset		9,231			8,976			8,046			7,698			7,124			255		2.8	%		2,107		29.6	%
Restricted Investment in Bank Stock		4,652			4,652			4,652			4,652			3,222			–		0.0	%		1,430		44.4	%
All Other Assets		42,106			38,943			37,540			43,992			37,937			3,163		8.1	%		4,169		11.0	%
Total Assets	$	1,190,012		$	1,122,364		$	1,048,002		$	1,009,354		$	963,450		$	67,648		6.0	%	$	226,562		23.5	%
Liabilities
Non-Interest Bearing Demand	$	242,650		$	239,672		$	229,875		$	220,438		$	216,307		$	2,978		1.2	%	$	26,343		12.2	%
Interest Bearing Demand		62,035			68,132			65,623			65,120			63,740			(6,097	)	-8.9	%		(1,705	)	-2.7	%
Savings and Money Market		280,056			256,724			244,091			222,115			199,549			23,332		9.1	%		80,507		40.3	%
Certificates of Deposit		411,201			370,552			343,931			332,695			327,326			40,649		11.0	%		83,875		25.6	%
Total Deposits		995,942			935,080			883,520			840,368			806,922			60,862		6.5	%		189,020		23.4	%

Short-Term Borrowings		–			–			–			12,000			10,000			–		0.0	%		(10,000	)	-100.0	%
Subordinated Debt		26,107			26,088			26,070			26,051			26,032			19		0.1	%		75		0.3	%
Operating Lease Liability		6,299			4,839			5,032			5,221			5,409			1,460		30.2	%		890		16.5	%
Other Liabilities		15,048			15,657			16,997			14,769			12,521			(609	)	-3.9	%		2,527		20.2	%
Total Liabilities		1,043,396			981,664			931,619			898,409			860,884			61,732		6.3	%		182,512		21.2	%

Equity
Common Stock		1			1			1			1			1			–		0.0	%		–		0.0	%
Additional Paid-in Capital		78,718			77,571			57,287			56,966			53,322			1,147		1.5	%		25,396		47.6	%
Retained Earnings		68,906			64,437			59,192			54,177			49,501			4,469		6.9	%		19,405		39.2	%
Accumulated Other Comprehensive Loss		(1,009	)		(1,309	)		(97	)		(199	)		(258	)		300		-22.9	%		(751	)	291.1	%
Total Stockholders’ Equity		146,616			140,700			116,383			110,945			102,566			5,916		4.2	%		44,050		42.9	%
Total Liabilities & Stockholders’ Equity	$	1,190,012		$	1,122,364		$	1,048,002		$	1,009,354		$	963,450		$	67,648		6.0	%	$	226,562		23.5	%

Book Value Per Common Share	$	10.27		$	9.87		$	8.91		$	8.49		$	8.00		$	0.40		4.1	%	$	2.27		28.4	%

GBank Financial Holdings Inc.
Condensed Consolidated Income Statements
(Unaudited)

	Three Months Ended
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Interest Income
Loans	$	16,836		$	17,231		$	17,347		$	16,360		$	15,330
Deposits With Other Financial Institutions		1,192			1,099			1,367			1,165			972
Investment Securities		1,281			1,177			924			868			1,014
Other Interest Bearing Balances		100			103			102			96			74
Total Interest Income		19,409			19,610			19,740			18,489			17,390

Interest Expense
Deposits		7,230			7,535			7,194			6,848			6,198
Short-term Borrowings and Subordinated Debt		285			286			287			293			390
Total Interest Expense		7,515			7,821			7,481			7,141			6,588

Net Interest Income		11,894			11,789			12,259			11,348			10,802
Provision for Credit Losses – Loans		(710	)		(1,337	)		(570	)		(283	)		–
Provision for Credit Losses – Unfunded Commitments		(11	)		(13	)		(8	)		(12	)		(20	)
Net Interest Income after Provision for Credit Losses		11,173			10,439			11,681			11,053			10,782

Other Income
Gain on Sales of Loans		2,537			3,998			2,838			3,163			2,083
Loan Servicing Income		703			597			566			534			60
Service Charges and Fees		56			54			48			41			41
Net Interchange Fees		2,003			947			284			146			20
Other Income		164			168			166			282			201
Total Other Income		5,463			5,764			3,902			4,166			2,405

Noninterest Expenses
Salaries and Employee Benefits		6,400			5,813			5,495			5,752			5,290
Occupancy Expenses		392			398			404			417			447
Other Expenses		4,115			3,509			3,156			2,963			2,637
Total Noninterest Expenses		10,907			9,720			9,055			9,132			8,374

Income Before Provision For Income Taxes		5,729			6,483			6,528			6,087			4,813
Provision For Income Taxes		(1,224	)		(1,239	)		(1,513	)		(1,411	)		(1,112	)
Net Income Before Equity Investment Loss		4,505			5,244			5,015			4,676			3,701
Net Loss Attributable to Equity Investment		(35	)		–			–			–			–
Net Income	$	4,470		$	5,244		$	5,015		$	4,676		$	3,701

Earnings Per Share	$	0.31		$	0.37		$	0.38		$	0.36		$	0.29
Earnings Per Share (Diluted)	$	0.31		$	0.37		$	0.38		$	0.36		$	0.29

GBank Financial Holdings Inc.
Average Balances, Rates, and Interest Income and Expense
(Unaudited)

				For the Three Months Ended
				March 31, 2025						December 31, 2024						March 31, 2024
(Dollars in thousands)				Average				Yield/		Average				Yield/		Average				Yield/
				Balance		Interest		Rate⁽²⁾		Balance		Interest		Rate⁽²⁾		Balance		Interest		Rate⁽²⁾
ASSETS:
	Interest Bearing Deposits			$	102,628	$	1,192	4.71	%	$	85,424	$	1,099	5.12	%	$	66,100	$	972	5.91	%
	Investment Securities:
		Taxable			105,222		1,281	4.94	%		98,712		1,177	4.74	%		98,084		1,014	4.16	%
	Loans and Loans Held For Sale				866,690		16,836	7.88	%		846,583		17,231	8.10	%		727,786		15,330	8.47	%
	Restricted Investment in Bank Stock				4,652		100	8.72	%		4,652		103	8.81	%		3,222		74	9.24	%
		Total Earning Assets			1,079,192		19,409	7.29	%		1,035,371		19,610	7.53	%		895,192		17,390	7.81	%

	Cash and Due From Banks				6,216						5,938						5,935
	Other Assets				39,177						38,753						33,602
			Total Assets	$	1,124,585					$	1,080,062					$	934,729

LIABILITIES & SHAREHOLDERS’ EQUITY
	Deposits:
		Interest-bearing Demand		$	65,693	$	355	2.19	%	$	64,453	$	385	2.38	%	$	65,303	$	393	2.42	%
		Money Market and Savings			264,085		2,411	3.70	%		255,068		2,496	3.89	%		186,372		1,759	3.80	%
		Certificates of Deposit			385,704		4,464	4.69	%		359,285		4,654	5.15	%		309,221		4,046	5.26	%
			Total Interest-Bearing Deposits		715,482		7,230	4.10	%		678,806		7,535	4.42	%		560,896		6,198	4.44	%

	Short-Term Borrowings				–		–	0.00	%		2		–	0.00	%		7,583		104	5.52	%
	Subordinated Debt				26,095		285	4.43	%		26,076		286	4.36	%		26,021		286	4.42	%
			Total Interest-Bearing Liabilities		741,577		7,515	4.11	%		704,884		7,821	4.41	%		594,500		6,588	4.46	%

	Noninterest-bearing Deposits				218,874						214,880						220,767
	Other Liabilities				20,139						22,403						18,003
	Shareholders’ Equity				143,995						137,895						101,459
			Total Liabilities & Shareholders’ Equity	$	1,124,585					$	1,080,062					$	934,729

	Net Interest Income					$	11,894					$	11,789					$	10,802

	Total Yield on Earning Assets							7.29	%					7.53	%					7.81	%
	Cost on Interest-Bearing Liabilities							4.11	%					4.41	%					4.46	%
	Average Interest Spread							3.18	%					3.12	%					3.35	%
	Net Interest Margin							4.47	%					4.53	%					4.85	%
	Net Interest Margin (Bank Only)							4.58	%					4.64	%					4.98	%

GBank Financial Holdings Inc.
Additional Financial Information
(Unaudited)

	Three Months Ended
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024

Key Performance Metrics
Return on Average Assets-Net Income ⁽²⁾		1.61	%		1.93	%		1.96	%		1.90	%		1.59	%
Return on Average Stockholders’ Equity⁽²⁾		12.59	%		15.13	%		17.29	%		17.59	%		14.67	%
Efficiency Ratio		62.84	%		55.38	%		56.03	%		58.86	%		63.41	%
Net Interest Margin⁽²⁾		4.47	%		4.53	%		5.00	%		4.82	%		4.85	%
Net Revenue⁽¹⁾	$	17,357		$	17,553		$	16,161		$	15,514		$	13,207
Common Equity / Assets		12.3	%		12.5	%		11.1	%		11.0	%		10.6	%
Tier 1 Leverage Ratio – Bank		14.23	%		12.90	%		13.08	%		12.88	%		13.03	%

Selected Loan Metrics
Guaranteed Portion of Loans Held for Sale	$	41,313		$	32,649		$	68,317		$	40,489		$	44,901
Guaranteed Portion of Loans Held for Investment		204,239			201,267			203,027			215,382			218,619
Total Guaranteed Loans		245,552			233,916			271,344			255,871			263,520
Guaranteed Loans as a Percent of Loans⁽¹⁾		24.2	%		24.7	%		26.0	%		27.9	%		29.8	%

Asset Quality
Total nonaccrual loans	$	19,220		$	14,128		$	5,381		$	6,470		$	6,096
Loans past due 90 days and still accruing		1,153			40			27			1,142			33
Other real estate owned		–			–			–			–			–
Total non-performing assets		20,373			14,168			5,408			7,612			6,129
Non-performing assets: guaranteed portion		14,687			9,321			3,838			5,396			4,572
Non-performing assets: non-guaranteed portion		5,686			4,847			1,570			2,216			1,557

Non-performing assets to total assets		1.71	%		1.26	%		0.52	%		0.75	%		0.64	%
Non-performing assets, excluding guaranteed, to total assets⁽¹⁾		0.48	%		0.43	%		0.15	%		0.22	%		0.16	%
Net charge-offs (recoveries)	$	828		$	157		$	(22	)	$	29		$	–

Loans past due 30-89 days and accruing	$	14,853		$	11,822		$	12,390		$	1,054		$	3,428
Loans past due 30-89 days and accruing: guaranteed portion	$	11,915		$	8,713		$	8,535		$	–		$	1,028
Loans past due 30-89 days and accruing: non-guaranteed portion	$	2,938		$	3,109		$	3,855		$	1,054		$	2,400

Allowance for Credit Losses (ACL)	$	8,997		$	9,114		$	7,934		$	7,342		$	7,088
Nonaccrual loans	$	19,220		$	14,128		$	5,381		$	6,470		$	6,096
ACL to nonaccrual loans		47	%		65	%		147	%		113	%		116	%
ACL to nonaccrual loans, excluding guaranteed⁽¹⁾		168	%		190	%		514	%		130	%		465	%
ACL to loans		1.07	%		1.12	%		1.02	%		0.95	%		0.97	%
ACL to loans, excluding guaranteed⁽¹⁾		1.41	%		1.48	%		1.37	%		1.32	%		1.38	%

Book Value
Stockholders’ Equity	$	146,616		$	140,700		$	116,383		$	110,945		$	102,566
Common shares outstanding		14,271			14,252			13,067			13,061			12,824
Book value per common share	$	10.27		$	9.87		$	8.91		$	8.49		$	8.00
Employees – FTE		175			169			159			155			150

GBank Financial Holdings Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

	Three Months Ended
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024

Net Revenue⁽³⁾
Net Interest Income	$	11,894		$	11,789		$	12,259		$	11,348		$	10,802
Non-Interest Income		5,463			5,764			3,902			4,166			2,405
Net Revenue	$	17,357		$	17,553		$	16,161		$	15,514		$	13,207

Guaranteed Loans as a Percent of Loans⁽⁴⁾
SBA and USDA Guaranteed Loans	$	204,239		$	201,267		$	203,027		$	215,382		$	218,619
Loans, Net of Deferred Fees and Costs		843,365			815,958			780,999			772,857			733,589
Guaranteed Loans as a % of Loans		24.2	%		24.7	%		26.0	%		27.9	%		29.8	%

Non-performing assets, excluding guaranteed, to total assets⁽⁴⁾
Non-performing assets	$	20,373		$	14,168		$	5,408		$	7,612		$	6,129
Less: SBA and USDA guaranteed portions of non-performing assets		14,687			9,321			3,838			5,396			4,572
Non-performing assets, excluding guaranteed portions		5,686			4,847			1,570			2,216			1,557
Total assets		1,190,012			1,122,364			1,048,002			1,009,354			963,450
Non-performing assets, excluding guaranteed, to total assets		0.48	%		0.43	%		0.15	%		0.22	%		0.16	%

Allowance for credit losses (ACL) to nonaccrual loans, excluding guaranteed⁽⁴⁾
Nonaccrual loans	$	19,220		$	14,128		$	5,381		$	6,470		$	6,096
Less: SBA and USDA guaranteed portions of nonaccrual loans		13,859			9,321			3,838			833			4,572
Nonaccrual loans, excluding guaranteed portions		5,361			4,807			1,543			5,637			1,524
ACL to nonaccrual loans, excluding guaranteed		168	%		190	%		514	%		130	%		465	%

ACL to loans, excluding guaranteed⁽⁴⁾
Loans, net of deferred fees and costs	$	843,365		$	815,958		$	780,999		$	772,857		$	733,589
Less: SBA and USDA guaranteed portions of loans		204,239			201,267			203,027			215,382			218,619
Loans, excluding guaranteed		639,126			614,691			577,972			557,475			514,970
ACL to loans, excluding guaranteed		1.41	%		1.48	%		1.37	%		1.32	%		1.38	%

	⁽¹⁾	See Reconciliation of Non-GAAP Financial Measures
	⁽²⁾	Ratios are annualized on an actual/actual basis
	⁽³⁾	We believe this non-GAAP measurement presents trends in income generation of the Company.
	⁽⁴⁾	We believe these non-GAAP measurements provide useful metrics regarding the at-risk assets of the Company.

The MIL Network –

April 30, 2025

MIL-OSI USA: Warren Warns Walgreens Buyout by Private Equity May Lead to Pharmacy Closures, Lost Jobs in Massachusetts, Limit Access to Medication

US Senate News:

Source: United States Senator for Massachusetts – Elizabeth Warren
April 29, 2025
Warren seeks assurances from Sycamore Partners that its heavily-leveraged, debt-fueled acquisition of Walgreens will not lead to layoffs, store closures
After private equity looted Steward Health Care hospitals, Warren concerned that Walgreens could be next: “These private equity buyouts of companies facing financial hardship…frequently lead to worse outcomes for employees and consumers.”
Text of Letter (PDF)
Washington D.C. – U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, wrote to private equity firm Sycamore Partners (Sycamore) regarding concerns that the firm’s proposed acquisition of retail pharmacy chain Walgreens may cost hardworking Massachusetts residents their jobs and create difficulties for patients who need access to lifesaving medications.
Sycamore’s multi-billion-dollar takeover of Walgreens has been touted as an attempt to keep the struggling retail pharmacy chain alive. However, private equity buyouts have a record of running already-struggling companies into the ground and producing devastating consequences for workers and communities, as witnessed by private equity’s looting of Steward Health Care, which resulted in two shuttered hospitals in Massachusetts.
“My primary concern is that Sycamore’s acquisition of Walgreens may lead to restructuring of the company that results in layoffs and pharmacy closures in the Commonwealth,” said Senator Warren.
Walgreens has already announced plans to close nine locations across Massachusetts, in addition to the six stores closed in the state within the past year. Many of the shuttered Walgreens stores are located in vulnerable communities, leaving thousands of residents without reliable pharmacy access.
Sycamore has a troubling history of leading the companies it acquires into bankruptcy, further harming already-struggling communities.
“These private equity buyouts…frequently lead to worse outcomes for employees and consumers: private equity firms sell off assets and close locations, employees lose their jobs, and consumers lose access to essential goods and services,” wrote Senator Warren.
A review by the Private Equity Stakeholder Project (PESP) revealed that the Walgreens buyout will be heavily leveraged with debt, heightening the risk of bankruptcy and threatening the availability of critical services to customers and patients.
“These are deeply troubling conclusions, suggesting that yet another private equity firm might leverage a failing health care chain to turn a profit at the expense of Massachusetts’ patients, providers, and taxpayers,” wrote Senator Warren.
Millions of customers across the United States rely on Walgreens for primary care, essential medications, and household items, and if the Walgreens-Sycamore deal leads to even more store closures, customers could be left in “pharmacy deserts” without access to necessities.
“I seek assurances that Sycamore’s buyout of Walgreens will not damage the company further, and will not cost hardworking Americans their jobs or create difficulties for patients who need access to lifesaving medications,” concluded Senator Warren.
Senator Warren requested a response identifying the impact Sycamore’s acquisition of Walgreens will have on workers and communities by May 13, 2025.
Senator Warren has repeatedly called out the harms of private equity ownership on health care costs and quality of care and has fought to prevent companies from taking advantage of the bankruptcy system:
In February 2025, Senator Warren questioned private equity executive Stephen Feinberg, President of Cerberus Capital Management and nominee for Deputy Secretary of Defense, on his actions to enrich himself and his investors at the expense of Steward Health Care patients and workers.
In October 2024, Senator Warren led colleagues in reintroducing the Stop Wall Street Looting Act, comprehensive legislation to fundamentally reform the private equity industry and level the playing field by forcing private investment firms to take responsibility for the outcomes of companies they take over, empowering workers and protecting investors. This reintroduction comes after private equity firm Cerberus looted Steward Health Care, leaving hospitals, patients, and workers hanging out to dry.
In September 2024, Senators Warren and Markey (D-Mass.), alongside Representatives Auchincloss and Lynch, sent a letter to RHG raising concerns over its proposed acquisition of Steward Health Care’s physician group, Stewardship Health.
In September 2024, Senator Warren urged the IRS to crack down on Real Estate Investment Trusts (REITs) squeezing the health care industry.
In August 2024, Senators Warren and Markey requested information from private equity firm Apollo Global Management (Apollo) on the company’s role in Steward’s bankruptcy, and urged Apollo to work in good faith to facilitate the sale of Steward’s Massachusetts hospitals.
In July 2024, Senators Warren and Markey wrote to Medical Properties Trust and Macquarie Infrastructure Partners, owners of Steward’s eight Massachusetts hospitals, urging them to offer lease concessions to keep the hospitals open and viable.
In June 2024, Senator Warren, Representative Chu, and Representative Nadler urged CMS to increase oversight of artificial intelligence (AI) and algorithmic software tools used to guide coverage decisions in Medicare Advantage (MA) plans, citing the NaviHealth scandal as cause for concern.
In June 2024, Senators Warren and Markey introduced the Corporate Crimes Against Health Care Act of 2024 to root out corporate greed and private equity abuse in the health care system, specifically preventing what happened with Steward from happening again.
In June 2024, Senator Warren wrote to the DOJ, FTC, and HHS calling out high health care costs due to vertically-integrated insurers, private equity companies, and pharmaceutical companies that are driving health care consolidation.
In June 2024, Senators Warren, Brown (D-Ohio), and Markey wrote to the Director of the U.S. Trustee Program (USTP), calling for USTP to move to appoint a Chapter 11 trustee to run the company in place of Steward’s current management, and to monitor the hospitals’ bankruptcy proceedings to protect patients and local communities.
In May 2024, Senator Warren sent a letter to the U.S. Department of Health and Human Services and the U.S. Centers for Medicare & Medicaid Services, urging them to support communities and health care providers affected by the crisis caused by Steward’s financial mismanagement.
In April 2024, Senators Warren and Senator Markey (D-Mass.) sent a letter to six private credit funds that are holders of Steward’s debt, asking them a series of questions about their loans and calling on them to offer loan modifications that could potentially help keep the hospitals afloat.
In April 2024, Senators Warren and Markey called out Medical Properties Trust and Macquarie Infrastructure Partners for exploiting Steward Hospitals, and urged them to help keep the hospitals open.
In April 2024, Senators Warren, Markey, and the rest of the MA delegation urged the FTC and DOJ to closely scrutinize UnitedHealth Group’s proposed acquisition of Steward Health Care’s physician group, Stewardship Health.
In April 2024, Senator Warren delivered remarks at a Senate hearing in Boston titled, “When Health Care Becomes Wealth Care: How Corporate Greed Puts Patient Care and Health Workers at Risk,” which centered on Steward Health Care’s Massachusetts hospitals.
In April 2024, Senators Warren and Ed Markey (D-Mass.) called out private equity firm Cerberus Capital Management (Cerberus) for its role in creating Steward Health Care’s financial challenges, following Cerberus’s reply to the Massachusetts congressional delegation’s February 2024 probe.
In February 2024, Senator Warren slammed UnitedHealth Group for leveraging NaviHealth’s unregulated artificial intelligence algorithm to unlawfully deny health care to seniors with severe injuries.
In March 2024, Senator Warren released a statement about Steward’s plan to sell its physician group Stewardship Health to UnitedHealth Group’s subsidiary Optum.
In March 2024, Senators Warren and Markey sent a letter to Steward CEO and Chairman Dr. Ralph de la Torre, calling on him to testify at a congressional hearing in Boston.
In March 2024, Senators Warren and Markey sent a letter to Dr. de la Torre, blasting him for years of financial mismanagement, private equity schemes, and executive profiteering that have led to Steward Health Care’s financial crisis.
In February 2024, Senators Warren and Markey, along with all nine members of the Massachusetts congressional delegation, sent a letter to Cerberus seeking answers from the private equity firm for its role in creating the current financial challenges at Steward hospitals.
In January 2024, Senator Warren released a statement about Steward’s financial situation and allegations of patient neglect at Steward facilities.
In January 2024, Senator Warren led the Massachusetts congressional delegation in a letter to the CEO of Steward Health Care pressing the company to brief them on Steward’s financial position, the status of their Massachusetts facilities, and their plans to ensure the communities they serve are not abandoned.

MIL OSI USA News –

April 30, 2025

MIL-OSI: Lake Shore Bancorp, Inc. Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

DUNKIRK, N.Y., April 29, 2025 (GLOBE NEWSWIRE) — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), reported unaudited net income of $1.1 million, or $0.19 per diluted share, for the first quarter of 2025 compared to net income of $1.0 million, or $0.17 per diluted share, for the first quarter of 2024. The Company’s financial performance for the first quarter of 2025 was positively impacted by an increase in net interest income along with a decrease in non-interest expenses because of efforts to optimize operating expenses while continuing to reduce its reliance on wholesale Federal Home Loan Bank of New York (“FHLBNY”) funding by $6.3 million.

“Given the ongoing economic uncertainty, I am pleased with our first quarter 2025 performance,” stated Kim C. Liddell, President, CEO, and Director. “We continue to focus efforts on improving the efficiency of our core operations while maintaining a disciplined approach to balance sheet management.”

First Quarter 2025 Financial Highlights:

Net income increased to $1.1 million during the first quarter of 2025, an increase of $43,000, or 4.2%, when compared to the first quarter of 2024. Net income was positively impacted by an increase in net interest income of $332,000, or 6.5%, when compared to the first quarter of 2024;
Net interest margin increased to 3.49% during the first quarter of 2025, an increase of 18 basis points when compared to net interest margin of 3.31% during the fourth quarter of 2024 and an increase of 39 basis points when compared to net interest margin of 3.10% during the first quarter of 2024;
Reduced reliance on wholesale funding by repaying $6.3 million of FHLBNY borrowings during the first quarter of 2025;
At March 31, 2025 and December 31, 2024, the Company’s percentage of uninsured deposits to total deposits was 11.8% and 13.5%, respectively;
Book value per share increased 0.4% to $15.74 per share at March 31, 2025 as compared to $15.67 per share at December 31, 2024; and
The Bank’s capital position remains “well capitalized” with a Tier 1 Leverage ratio of 14.31% and a Total Risk-Based Capital ratio of 18.67% at March 31, 2025.

Net Interest Income

Net interest income for the first quarter of 2025 increased by $124,000, or 2.3%, to $5.5 million as compared to $5.3 million for the fourth quarter of 2024 and increased $332,000, or 6.5%, as compared to $5.1 million for the first quarter of 2024. Net interest margin and interest rate spread were 3.49% and 2.94%, respectively, for the first quarter of 2025 as compared to 3.31% and 2.72%, respectively, for the fourth quarter of 2024 and 3.10% and 2.55%, respectively, for the first quarter of 2024.

Interest income for the first quarter of 2025 was $8.4 million, a decrease of $223,000, or 2.6%, compared to $8.6 million for the fourth quarter of 2024, and a decrease of $242,000, or 2.8%, compared to $8.6 million for the first quarter of 2024.

The decrease in interest income from the prior quarter was primarily due to a decrease in the average balance of interest-earning assets of $18.0 million, or 2.8%. Interest earned on interest-earning deposits decreased by $265,000, or 53.1%, due to a 63 basis points decrease in average yield and a $19.8 million decrease in the average balance of interest-earning deposits during the first quarter of 2025 as compared to the prior quarter.

The decrease in interest income from the prior year quarter was primarily due to a decrease in the average balance of interest-earning assets of $35.0 million, or 5.3%. The decrease was partially offset by a 14 basis points increase in the average yield on interest-earning assets. During the first quarter of 2025 as compared to the same period in 2024, there was a $364,000 decrease in interest earned on interest-earning deposits due to a decrease in the average balance and yield of interest-earning deposits of $20.5 million, or 46.5%, and 146 basis points, respectively. Additionally, during the first quarter of 2025 as compared to the same period in 2024, there was a $44,000 decrease in interest earned on securities due to a decrease in the average balance and yield of securities of $3.9 million, or 6.4%, and 11 basis points, respectively. These decreases were partially offset by a $166,000 increase in interest income on loans due to a 22 basis points increase in the average yield on loans.

Interest expense for the first quarter of 2025 was $2.9 million, a decrease of $347,000, or 10.7%, from the fourth quarter of 2024, and a decrease of $574,000, or 16.5%, from $3.5 million for the first quarter of 2024.

The decrease in interest expense when compared to the previous quarter was primarily due to a 21 basis points decrease in the average interest rate paid on interest-bearing liabilities and a $14.1 million, or 2.8%, decrease in the average balance of interest-bearing liabilities. During the first quarter of 2025 as compared to the previous quarter, interest expense on deposits decreased by $301,000, or 9.6%, due to a $9.7 million decrease in the average balance of deposits and a 20 basis points decrease in the average interest rate paid on deposit accounts. The decrease in the average interest rate paid on deposit accounts was primarily due to the decrease in market interest rates and time deposit repricing. Average interest-bearing deposit balances were $477.8 million, a 2.0% decrease during the first quarter of 2025 when compared to the previous quarter due to a decrease in the average balance of all deposit categories. Interest expense on borrowed funds and other interest-bearing liabilities decreased by $46,000 primarily due to a $4.4 million, or 41.4%, decrease in the average balance of borrowed funds and other interest-bearing liabilities due to the repayment of $6.3 million of our FHLBNY borrowings during the first quarter of 2025.

The decrease in interest expense when compared to the prior year quarter was primarily due to a 25 basis points decrease in average interest rate paid on interest-bearing liabilities and a $39.9 million, or 7.6%, decrease in the average balance of interest-bearing liabilities. During the first quarter of 2025 as compared to the same period in 2024, interest expense on deposits decreased by $402,000, or 12.4%, due to a 24 basis points decrease in the average interest rate paid on deposit accounts and a $16.6 million, or 3.4%, decrease in the average balance of deposits. The decrease in the average interest rate paid on deposit accounts was primarily due to the decrease in market interest rates and time deposit repricing. Average interest-bearing deposit balances decreased 3.4% during the first quarter of 2025 from the first quarter of 2024 due to a decrease in all deposit categories except money market accounts. During the first quarter of 2025, interest expense on borrowed funds and other interest-bearing liabilities decreased by $172,000, or 74.1%, compared to the first quarter of 2024, primarily due to a $23.3 million, or 78.9%, decrease in average borrowed funds and other interest-bearing liabilities outstanding due to the repayment of $25.0 million of FHLBNY borrowings during 2024 and $6.3 million during the first quarter of 2025.

Non-Interest Income

Non-interest income was $724,000 for the first quarter of 2025, a decrease of $344,000, or 32.2%, as compared to $1.1 million for the fourth quarter of 2024, and an increase of $17,000, or 2.4%, as compared to $707,000 for the first quarter of 2024. The decrease from the prior quarter was primarily due to a $139,000 decrease in earnings on annuity assets in connection with the purchase of annuities during the fourth quarter of 2024, a $135,000 decrease in earnings on bank-owned life insurance during the first quarter of 2025 as the result of the recognition of a death benefit in the fourth quarter of 2024, and a decrease of $31,000 in service charges and fees. The increase from the prior year quarter was primarily due to a $35,000 increase in unrealized gain on equity securities and a $22,000 increase in earnings on annuity assets in connection with the purchase of annuities during the fourth quarter of 2024.

Non-Interest Expense

Non-interest expense was $4.9 million for the first quarter of 2025, a decrease of $397,000, or 7.5%, as compared to $5.3 million for the fourth quarter of 2024, and a decrease of $117,000, or 2.3%, as compared to $5.0 million for the first quarter of 2024. The decrease from the prior quarter was primarily due to a decrease in salaries and employee benefits expense of $382,000, or 11.6%, along with a decrease in professional services expense of $50,000, or 13.7%. The decrease from the first quarter of 2024 was primarily related to a decrease in FDIC insurance of $207,000, or 74.2%.

Income Tax Expense

Income tax expense was $206,000 for the first quarter of 2025, a decrease of $72,000, or 25.9%, as compared to $278,000 for the fourth quarter of 2024, and an increase of $23,000, or 12.6%, as compared to $183,000 for the first quarter of 2024. The decrease in income tax expense from the prior quarter was primarily related to the decrease in pre-tax income earned during the current quarter, partially offset by an increase in the effective tax rate during the first quarter of 2025. The increase in income tax expense from the prior year quarter was due to an increase in pre-tax income earned during the current quarter along with an increase in the effective tax rate in the first quarter of 2025. The effective tax rate was 16.3% for the first quarter of 2025 as compared to 15.9% for the fourth quarter of 2024 and 15.3% for the first quarter of 2024.

Credit Quality

The Company’s allowance for credit losses on loans was $5.2 million as of March 31, 2025 as compared to $5.1 million as of December 31, 2024. The Company’s allowance for credit losses on unfunded commitments was $323,000 as of March 31, 2025 as compared to $314,000 as of December 31, 2024. Non-performing assets as a percent of total assets decreased to 0.50% at March 31, 2025 as compared to 0.55% at December 31, 2024, primarily due to a decrease in non-performing assets of $332,000, or 8.7%. On March 26, 2025, one commercial relationship with two loans representing a total amortized cost of $1.2 million on non-accrual status was sold at foreclosure. Subject to customary foreclosure proceedings, the Bank expects the sale to close during the second quarter of this year. The Company’s allowance for credit losses on loans as a percent of loans at amortized cost was 0.93% at March 31, 2025 and December 31, 2024.

The Company recorded a provision for credit losses of $48,000 for the first quarter of 2025, of which $39,000 related to the loan portfolio and $9,000 related to the reserve for unfunded commitments.

The increase in the allowance for credit losses on loans and unfunded commitments and the corresponding provision for credit losses recognized during the first quarter of 2025 was the result of an increase to the quantitative estimated loss calculation inclusive of forecasted economic trends, primarily related to the mortgage loan pools, including residential mortgages and commercial real estate mortgages.

Balance Sheet Summary

Total assets at March 31, 2025 were $689.0 million, a $3.5 million increase, or 0.5%, as compared to $685.5 million at December 31, 2024. Cash and cash equivalents decreased by $2.7 million, or 8.2%, from $33.1 million at December 31, 2024 to $30.4 million at March 31, 2025. The decrease in cash and cash equivalents was primarily due to an increase in loans receivable, net of $7.0 million, or 1.3%, and a decrease in long-term debt due to the repayment of FHLBNY borrowings of $6.3 million in the first quarter of 2025. These decreases were partially offset by an increase in total deposits of $9.8 million, or 1.7%. Securities available for sale were $55.8 million at March 31, 2025 as compared to $56.5 million at December 31, 2024 which decrease was primarily due to repayments during the first quarter of 2025. Net loans receivable at March 31, 2025 and December 31, 2024 were $551.6 million and $544.6 million, respectively. Total deposits at March 31, 2025 were $582.7 million, an increase of $9.8 million, or 1.7%, compared to $573.0 million at December 31, 2024. Total borrowings decreased to $4.0 million at March 31, 2025, a decrease of $6.3 million, or 61.0%, as compared to $10.3 million as of December 31, 2024.

Stockholders’ equity at March 31, 2025 was $90.7 million, a $794,000, or 0.9%, increase as compared to $89.9 million at December 31, 2024. The increase in stockholders’ equity was primarily attributed to $1.1 million in net income earned during the first quarter of 2025.

About Lake Shore

Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the mid-tier holding company of Lake Shore Savings Bank, a federally chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has ten full-service branch locations in Western New York, including four in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. The Company’s common stock is traded on the NASDAQ Global Market as “LSBK”. Additional information about the Company is available at www.lakeshoresavings.com.

Safe-Harbor

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current expectations, estimates and projections about the Company’s and the Bank’s industry, and management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, data loss or other security breaches, including a breach of our operational or security systems, policies or procedures, including cyber-attacks on us or on our third party vendors or service providers, economic conditions, the effect of changes in monetary and fiscal policy, inflation, tariffs, unanticipated changes in our liquidity position, climate change, public health issues, geopolitical conflict, increased unemployment, deterioration in the credit quality of the loan portfolio and/or the value of the collateral securing repayment of loans, reduction in the value of investment securities, the cost and ability to attract and retain key employees, regulatory or legal developments, tax policy changes, and our ability to implement and execute our business plan and strategy and expand our operations. These factors should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements, as our financial performance could differ materially due to various risks or uncertainties. We do not undertake to publicly update or revise our forward-looking statements if future changes make it clear that any projected results expressed or implied therein will not be realized.

Source: Lake Shore Bancorp, Inc.
Category: Financial

Investor Relations/Media Contact
Kim C. Liddell
President, CEO, and Director
Lake Shore Bancorp, Inc.
31 East Fourth Street
Dunkirk, New York 14048
(716) 366-4070 ext. 1012

Selected Financial Condition Data

		March 31,		December 31,
		2025		2024
		(Unaudited)
		(Dollars in thousands)

Total assets	$	688,996	$	685,504
Cash and cash equivalents		30,428		33,131
Securities, at fair value		55,801		56,495
Loans receivable, net		551,640		544,620
Deposits		582,730		572,978
Long-term debt		4,000		10,250
Stockholders’ equity		90,662		89,868

Statements of Income

		Three Months Ended
		March 31,
		2025			2024
	(Unaudited)
	(Dollars in thousands, except per share amounts)
Interest income	$	8,367		$	8,609
Interest expense		2,902			3,476
Net interest income		5,465			5,133
Provision (credit) for credit losses		48			(352	)
Net interest income after provision (credit) for credit losses		5,417			5,485
Total non-interest income		724			707
Total non-interest expense		4,878			4,995
Income before income taxes		1,263			1,197
Income tax expense		206			183
Net income	$	1,057		$	1,014
Basic and diluted earnings per share	$	0.19		$	0.17

Selected Financial Ratios
Return on average assets⁽¹⁾		0.62	%		0.57	%
Return on average equity⁽¹⁾		4.65	%		4.69	%
Average interest-earning assets to average interest-bearing liabilities		129.52	%		126.33	%
Interest rate spread⁽¹⁾		2.94	%		2.55	%
Net interest margin⁽¹⁾		3.49	%		3.10	%
Efficiency ratio		78.82	%		85.53	%

(1) Annualized.

Average Balance Sheets, Interest, and Rates (Quarterly Comparison)

	For the Three Months Ended						For the Three Months Ended
	March 31, 2025						March 31, 2024
	Average		Interest Income/		Yield/		Average		Interest Income/		Yield/
	Balance		Expense		Rate⁽²⁾		Balance		Expense		Rate⁽²⁾
	(Unaudited)
	(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits & federal funds sold	$	23,562	$	234	3.97	%	$	44,038	$	598	5.43	%
Securities⁽¹⁾		57,804		381	2.64	%		61,728		425	2.75	%
Loans, including fees		545,561		7,752	5.68	%		556,151		7,586	5.46	%
Total interest-earning assets		626,927		8,367	5.34	%		661,917		8,609	5.20	%
Other assets		51,656						50,866
Total assets	$	678,583					$	712,783

Interest-bearing liabilities
Demand & NOW accounts	$	62,784	$	15	0.10	%	$	69,753	$	17	0.10	%
Money market accounts		152,680		867	2.27	%		139,794		966	2.76	%
Savings accounts		53,541		9	0.07	%		62,684		11	0.07	%
Time deposits		208,804		1,951	3.74	%		222,179		2,250	4.05	%
Borrowed funds & other interest-bearing liabilities		6,237		60	3.85	%		29,556		232	3.14	%
Total interest-bearing liabilities		484,046		2,902	2.40	%		523,966		3,476	2.65	%
Other non-interest bearing liabilities		103,593						102,299
Stockholders’ equity		90,944						86,518
Total liabilities & stockholders’ equity	$	678,583					$	712,783
Net interest income			$	5,465					$	5,133
Interest rate spread					2.94	%					2.55	%
Net interest margin					3.49	%					3.10	%

(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 3.04% and 3.13% for the three months ended March 31, 2025 and 2024, respectively. Yields above are not presented on a tax equivalent basis.
(2) Annualized.

Average Balance Sheets, Interest, and Rates (Prior Quarter Comparison)

	For the Three Months Ended						For the Three Months Ended
	March 31, 2025						December 31, 2024
	Average		Interest Income/		Yield/		Average		Interest Income/		Yield/
	Balance		Expense		Rate⁽²⁾		Balance		Expense		Rate⁽²⁾
	(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits & federal funds sold	$	23,562	$	234	3.97	%	$	43,366	$	499	4.60	%
Securities⁽¹⁾		57,804		381	2.64	%		61,137		388	2.54	%
Loans, including fees		545,561		7,752	5.68	%		540,376		7,703	5.70	%
Total interest-earning assets		626,927		8,367	5.34	%		644,879		8,590	5.33	%
Other assets		51,656						49,207
Total assets	$	678,583					$	694,086

Interest-bearing liabilities
Demand & NOW accounts	$	62,784	$	15	0.10	%	$	64,465	$	15	0.09	%
Money market accounts		152,680		867	2.27	%		153,407		912	2.38	%
Savings accounts		53,541		9	0.07	%		55,451		9	0.06	%
Time deposits		208,804		1,951	3.74	%		214,150		2,207	4.12	%
Borrowed funds & other interest-bearing liabilities		6,237		60	3.85	%		10,641		106	3.98	%
Total interest-bearing liabilities		484,046		2,902	2.40	%		498,114		3,249	2.61	%
Other non-interest bearing liabilities		103,593						105,881
Stockholders’ equity		90,944						90,091
Total liabilities & stockholders’ equity	$	678,583					$	694,086
Net interest income			$	5,465					$	5,341
Interest rate spread					2.94	%					2.72	%
Net interest margin					3.49	%					3.31	%

(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 3.04% and 2.91% for the three months ended March 31, 2025 and December 31, 2024, respectively. Yields above are not presented on a tax equivalent basis.
(2) Annualized.

Selected Quarterly Financial Data

	As of or For the Three Months Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(Unaudited)
	(Dollars in thousands, except per share amounts)
Selected Financial Condition Data:
Total assets	$	688,996		$	685,504		$	697,596		$	711,042		$	717,582
Cash and cash equivalents		30,428			33,131			49,981			60,987			54,953
Securities, at fair value		55,801			56,495			58,782			57,309			58,682
Loans receivable, net		551,640			544,620			539,005			544,337			555,455
Deposits		582,730			572,978			587,563			589,395			594,704
Long-term debt		4,000			10,250			10,250			23,250			25,250
Stockholders’ equity		90,662			89,868			89,877			86,932			86,510

Condensed Statements of Income:
Interest income	$	8,367		$	8,590		$	8,851		$	8,754		$	8,609
Interest expense		2,902			3,249			3,468			3,548			3,476
Net interest income		5,465			5,341			5,383			5,206			5,133
Provision (credit) for credit losses		48			(613	)		(229	)		(285	)		(352	)
Net interest income after provision (credit) for credit losses		5,417			5,954			5,612			5,491			5,485
Total non-interest income		724			1,068			791			738			707
Total non-interest expense		4,878			5,275			4,813			4,897			4,995
Income before income taxes		1,263			1,747			1,590			1,332			1,197
Income tax expense		206			278			258			216			183
Net income	$	1,057		$	1,469		$	1,332		$	1,116		$	1,014
Basic and diluted earnings per share	$	0.19		$	0.26		$	0.24		$	0.19		$	0.17

Selected Financial Ratios:
Return on average assets⁽¹⁾		0.62	%		0.85	%		0.76	%		0.63	%		0.57	%
Return on average equity⁽¹⁾		4.65	%		6.52	%		6.03	%		5.19	%		4.69	%
Average interest-earning assets to average interest-bearing liabilities		129.52	%		129.46	%		128.81	%		127.00	%		126.33	%
Interest rate spread⁽¹⁾		2.94	%		2.72	%		2.67	%		2.56	%		2.55	%
Net interest margin⁽¹⁾		3.49	%		3.31	%		3.28	%		3.14	%		3.10	%
Efficiency ratio		78.82	%		82.30	%		77.96	%		82.39	%		85.53	%

Asset Quality Ratios:
Non-performing loans as a percent of loans at amortized cost		0.62	%		0.69	%		0.74	%		0.73	%		0.71	%
Non-performing assets as a percent of total assets		0.50	%		0.55	%		0.57	%		0.56	%		0.55	%
Allowance for credit losses on loans as a percent of loans at amortized cost		0.93	%		0.93	%		1.01	%		1.08	%		1.12	%
Allowance for credit losses on loans as a percent of non-performing loans		148.89	%		134.91	%		137.03	%		148.20	%		157.62	%

Share Information:
Common stock, number of shares outstanding		5,760,272			5,735,226			5,737,036			5,737,036			5,684,784
Treasury stock, number of shares held		1,076,242			1,101,288			1,099,478			1,099,478			1,151,730
Book value per share	$	15.74		$	15.67		$	15.67		$	15.15		$	15.22
Tier 1 leverage ratio		14.31	%		13.83	%		13.37	%		13.02	%		12.87	%
Total risk-based capital ratio		18.67	%		18.79	%		18.85	%		18.64	%		18.13	%

(1) Annualized

The MIL Network –

April 30, 2025

MIL-OSI USA: Congresswoman Lauren Boebert Announces May Staff Mobile Office Hours

Source: United States House of Representatives – Representative Lauren Boebert (Colorado, 3)

EATON, CO– Staff from Congresswoman Lauren Boebert’s (CO-04) office will be holding Mobile Office Hours in May across the district to connect with constituents within their communities. In addition to the Congresswoman’s congressional offices in Eaton and Lone Tree, the Mobile Office Hours aim to provide services to constituents who need in-person guidance.

“Our Congressional Mobile Office Hours provide an opportunity for constituents from across the 4th District to get the assistance they need from our staffers who can help them in a variety of ways,” stated Congresswoman Boebert. “Meeting Coloradans where they are is a critical part of the work our office does, and I know our Mobile Office Hours will be a huge help to constituents of all backgrounds and locations.”

Staff from Congresswoman Boebert’s office will be available to help constituents who aren’t getting answers from federal agencies, like veterans seeking to get the care they earned from the VA, travelers that need expedited assistance to receive a passport on short notice, taxpayers being harassed by the IRS, and senior citizens having issues with the Social Security Administration or Medicare. Additionally, constituents are invited to come to the office hours to express their viewpoints on legislative issues or request special Congressional Commendations from the Congresswoman recognizing outstanding public achievements.

Since the beginning of her tenure as Representative for the 4th Congressional District on January 3rd, 2025, Congresswoman Boebert’s office has returned $1,352,970.62 to constituents.

Mobile Office Hours will be available at the following times and locations:

WEDNESDAY, MAY 7, 2025

Morgan County Mobile Office Hours

City Hall, Meeting Room

315 Emerson Street

Hillrose, CO

12:00-1:00pm

THURSDAY, MAY 8, 2025

Washington County Mobile Office Hours

County Courthouse Annex Building

181 Birch Avenue

Akron, CO

10:00-11:00am

Yuma County Mobile Office Hours

Quintech, Conference Room

529 N. Albany St

Yuma, CO

2:00-3:00pm

TUESDAY, MAY 20, 2025

Weld County Mobile Office Hours

Town Hall, Boardroom

185 Lincoln Ave.

Nunn, CO

10:00-11:00am

Arapahoe County Mobile Office Hours

Anythink Library

495 7th Street

Bennett, CO

3:30-5:00pm

WEDNESDAY, MAY 28, 2025

Douglas County Mobile Office Hours

Town Hall, Conference Room

8720 Spruce Mountain Road

Larkspur, CO

10:00-11:30am

MIL OSI USA News –

April 30, 2025

MIL-OSI USA: 100 Days, 100 Stories

Source: United States House of Representatives – Representative Mike Johnson (LA-04)

WASHINGTON — Today, Speaker Johnson released a list of 100 American citizens who have felt the benefits from President Trump’s historic first 100 days in office. Speaker Johnson highlighted citizens who were unjustly detained abroad, business owners who will benefit from new apprenticeship opportunities, and families devastated by previous open borders policies, among many others.

Click here to read the full list

“President Donald J. Trump entered the White House with the most decisive mandate in modern history. In just 100 days, he’s done more for America than Joe Biden managed in four years,” Speaker Johnson said. “The American people can feel the tangible impact of President Trump’s swift and decisive action. From coast to coast, North to South, the American First agenda is helping Americans from across our great country.

“Republicans in Congress are proud to stand with the President as he secures our border, restores accountability in government, fights for common sense, and defends the liberty and prosperity of generations of Americans to come,” Speaker Johnson continued. “Today, as we mark 100 historic days, we celebrate the many ways President Trump has delivered for the American people.”

Since his inauguration on January 20th, President Trump has taken bold action to secure the border, drive down inflation, restore American strength on the world stage, clean up our communities, secure trillions of dollars in new investments and jobs, and return common sense to Washington. These 100 American stories illustrate that.

Read 20 stories below, and the full list here.

Alexis Nungaray, Angel Mother – Alexis Nungaray is the mother of Jocelyn Nungaray, a 12-year-old girl who was tragically murdered by illegal aliens in June of 2024. Jocelyn’s life was tragically cut short because of the Biden Administration’s failure to close our borders and protect American citizens from dangerous illegal aliens. On March 5, 2025, President Trump signed an executive order honoring her life by renaming Anahuac National Wildlife Refuge to Jocelyn Nungaray Wildlife Refuge in Anahuac, Texas. Since Jocelyn’s murder, her mother Alexis has been advocating alongside the Trump Administration and Senator Ted Cruz for stronger immigration laws.

Marianna Montoya, Florida Resident – During President Trump’s first 100 days, Marianna was able to open up her very first Roth IRA and begin contributing on a monthly basis. President Trump’s work to reverse the devastating consequences of Bidenomics has given her hope that she and her husband will be able to retire peacefully.

Frank Windsor, Rinnai America President – In late 2024, the Biden Administration issued a rule that effectively banned an entire niche of American manufacturing: non-condensing tankless water heaters. The rule specifically targeted Rinnai America Corporation, the only U.S. facility producing these water heaters. Thanks to President Trump’s leadership, the House passed a Congressional Review Act resolution to overturn the rule, keeping Rinnai’s doors open and protecting nearly 300 American jobs.

Sarah Taylor, Iowa Parent – Sarah and her husband, Dan, both attended private Catholic elementary schools and knew they wanted the same faith-based education for their daughters, Hannah and Millie. Thanks to expanding educational freedom and school choice, the Taylors were empowered to choose the school that best fit their family’s values. For the Taylor family, school choice has meant more than access. It’s meant opportunity. Their story is one of many that show the power of giving parents the freedom to choose what’s best for their children.

Kelly Wilson, Small Business Owner – Kelly Wilson’s family has owned and operated a small business in Colorado for 80 years, but after mass flows of illegal aliens began arriving in Denver under the Biden Administration, her family discussed moving to another state. In the face of budget cuts to Denver’s police force and sanctuary city policies that have failed Denver families, Kelly began speaking out for her community. Since day one, the Trump Administration has made cracking down on sanctuary cities and states a top priority. Today, communities like Kelly’s are safer, thanks to President Trump’s work to restore the rule of law.

Jim Chilton, Rancher – The Chilton Ranch has been operated within the Chilton family for generations, a family legacy that Jim and Sue Chilton have preserved mere miles away from the Southern Border. However, under the Biden Administration, they were forced to shoulder the consequences of President Biden’s border crisis. During April of 2024 alone, the Chiltons experienced 5,640 immigrant encounters on their ranch. The last time they checked with the Border Patrol, in April of this year, there were zero crossers over the course of three weeks. Thanks to President Trump’s work to reverse the Biden administration’s radical open-border policies, the Chilton family’s beloved ranch and livelihood are no longer under threat.

Ben Paulding, CPA – Ben hosts South Dakota’s first federally subsidized CPA Apprenticeship Program. After navigating months of red tape under the Biden Administration, he can finally onboard his first interns. Thankfully, President Trump has ended burdensome mandates on programs like Ben’s, enabling him to refocus his attention on merit-based, equal opportunity hiring without the DEI red tape.

George Glezmann, Former Hostage – George Glezmann, a Georgia native and Delta Airlines mechanic, was arrested by the Taliban in 2022 during a planned tourist visit. Despite no formal charges being filed, Glezmann was held for over 2 years in an Afghanistan prison. On March 20, 2025, he was released as a gesture of “goodwill” by the Taliban following trilateral negotiations between Qatar, the U.S., and the Taliban. Upon returning to the U.S., he said, “I feel like I’m born again, I’m in debt to President Trump. Thank God he’s in the White House and thank God he got me out.”

Michelle Root, Angel Mother – Michelle Root is the mother of Sarah Root, a 21-year-old Iowan who was killed by an illegal alien drunk driving in 2016. Instead of answering for his crimes, the illegal alien posted bail, was released from jail, and was never seen again. Fortunately, this criminal was found in Honduras and the Trump Administration worked with Honduran authorities to extradite him to the United States to face justice. President Trump also signed the Laken Riley Act, which included Sarah’s Law – introduced by Congressman Randy Feenstra from Iowa – to ensure that any illegal alien who harms or kills an American citizen is swiftly detained and prosecuted to the fullest extent of the law. The Root Family is grateful to President Trump and Congressman Feenstra for honoring their precious daughter’s memory.

Marc Fogel, Schoolteacher/Former Hostage – Marc Fogel, an American schoolteacher, was wrongfully detained by Russian authorities in 2021 after being arrested on drug charges related to medical marijuana. Despite having a valid prescription in the U.S., he was sentenced to 14 years in a Russian prison. However, on February 11, 2025, Fogel was released and returned to the United States through a diplomatic deal negotiated by President Trump. He was warmly greeted by the President upon his arrival back to the United States and expressed his gratitude, saying, “I feel like the luckiest man alive.”

Tony Campbell, East KY Power Cooperative CEO – Tony Campbell serves as the CEO and President of East Kentucky Power Cooperative. He and his colleagues have faced significant challenges under burdensome regulations that targeted the coal industry—an industry that has powered American homes and cities for generations. Through executive action, President Trump strengthened the reliability and affordability of American energy, safeguarded American jobs, and preserved critical coal plants, delivering on his promise to create jobs and uphold America’s energy independence.

Joseph Knowles, Detroit Autoworker – Joseph Knowles is a Detroit autoworker for Stellantis who was laid off during the Biden Administration and later reinstated after President Trump’s election victory. After attending President Trump’s Joint Address to Congress, Knowles declared he had left the Democratic Party for good. “I got very good hope for the Republican Party,” Knowles said, “More and more people are seeing the true colors of the Democrats.”

Lawrence Rosen, Cra-Z-Art Founder – Lawrence Rosen is the owner of Cra-Z-Art, the largest toy maker in the United States. Since Liberation Day, Lawrence has seen the benefits of President Trump’s tariffs firsthand on domestic manufacturing. Because of President Trump’s decisive action in the first 100 days, Rosen is expanding their domestic production by 50% and investing millions of dollars into factories across the country.

Elliston Berry, Texas High School Student – Elliston Berry was only 14-years-old when one of her classmates took an innocent selfie of her and ran it through AI to make a deep-fake pornographic image, which was later circulated throughout her school. Her painful experience motivated her to become an advocate against deepfake pornography, with her efforts leading to legislative action by Senator Ted Cruz. The “Take it Down Act”, which First Lady Melania Trump has championed, protects victims, enhances protections for users, and introduces accountability for AI platforms passed the House in April.

Kirk Davis, Bob Davis Electric CEO – Kirk Davis, owner of Bob Davis Electric, is one of many business leaders benefiting from President Trump’s action to tackle America’s workforce challenges. Thanks to the President’s Executive Order on apprenticeships, Kirk has been able to recruit, train, and retrain the skilled electricians needed to meet rising power demands and grow his business.

Dakota Meyer, U.S. Marine – President Trump’s Department of Defense has championed a warrior culture in America’s armed forces that has generated massive results for military recruiting. In April, Secretary Hegseth announced the U.S. Army had surpassed its 2025 reenlistment goal six months early. Dakota Meyer, a Marine Corps veteran and Medal of Honor recipient, is just one of the many brave Americans who have reenlisted, deciding to reenter the Army after a 15-year hiatus. “I’m damn proud of the men and women who are standing in uniform,” said Meyer, “and I’m so proud I get to be one of them again.”

Steven McCain, Sheriff – In Grant Parish, illegal aliens are using drones to drop off drugs and other paraphernalia at a large federal prison. It’s been a significant problem for the prison, but now that President Trump has returned to the White House, the situation has changed. Sheriff McCain has noticed a sharp increase in cooperation from ICE, the United States Attorney’s Office, and other local officials. Working together, law enforcement from all levels will be able to crack down on these drones.

Brian Riley, CEO of Guardian Bikes – Citing his support for President Trump’s tariffs, Brian announced a $19 million investment to move Guardian’s bike production out of China and into Seymour, Indiana.

Dino Mavrookas, CEO of Saronic – President Trump has called for the restoration of America’s maritime dominance, and Dino Mavrookas, CEO of the defense startup Saronic, has been a leader in answering this call. To help build the next-generation of autonomous vessels, Saronic acquired Gulf Craft, a Louisiana-based shipbuilder. By preserving Gulf Craft’s skilled workforce, creating hundreds of new, good-paying jobs, and investing over $2.5 billion to develop Port Alpha, Saronic is strengthening our economy, rebuilding America’s maritime strength, and supporting our national defense.

Gary Hamrick, Senior Pastor – Senior Pastor Gary Hamrick became the target of anti-Christian bias when he and his church were charged by the IRS for so-called Johnson Amendment violations. Under President Trump, the Department of Justice has established a task force to eradicate anti-Christian bias in the federal government and safeguard the religious liberty of all Americans.

###

MIL OSI USA News –

April 30, 2025

MIL-OSI: Hampton Financial Corporation Announces 2nd Quarter Results

Source: GlobeNewswire (MIL-OSI)

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, April 29, 2025 (GLOBE NEWSWIRE) — Hampton Financial Corporation (“Hampton” or the “Company”, TSXV: HFC) today announced its financial results for the 2^nd quarter ended February 28^th, 2025.

Second Quarter ended February 28^th, 2025.

IFRS results highlights:

– Q2 Revenue of $2,854,000; an increase of 53% year-over-year
– Q2 Net Loss of $(1,312,000) or $(0.02) per share;

Fiscal results (IFRS results adjusted for non-cash Items) highlights:

– Q2 Adjusted Net Loss of $(421,000) or $(0.01) per share;
– Q2 EBITDA of $(690,000) vs $(441,000) in the comparative quarter last year

Summary of Corporate Developments:

Our 2^nd quarter results reflect some improvement which is being felt across across the Capital Markets industry. Corporate finance transactions have improved slightly over the first half of our fiscal year but are still well below 2023 levels. While 2025 is showing some signs of improvement, the year ahead for our core business remains unclear. That said we intend to move ahead with a number of initiatives to further expand our business portfolio, while growing our existing Wealth Management, Commercial Lending and Capital Markets businesses.

“The second quarter results continue to demonstrate the industry-wide challenges faced during the fall of 2024, but we are beginning to see some selective improvements. Capital Markets activities have started to improve as interest rates have stabilized, so we are hopeful for a stronger second half of the year. We remain optimistic for the balance of the fiscal year,” said Hampton Executive Chairman & CEO Peter Deeb.

Copies of Hampton’s unaudited interim financial statements and its Management’s Discussion & Analysis for the three and six months ended February 28, 2025, can be accessed on SEDAR+ at www.sedar.com.

Supplementary to the Company’s February 21, 2025 press release announcing the reinvestment of debenture redemption proceeds, the purchase by Peter Deeb of the 255,050 subordinate voting shares of the Company constitutes a ‘related party transaction’ as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders In Special Transactions (“MI 61-101”) but is exempt from the shareholder approval and formal valuation requirements under MI 61-101 as the fair market value of the securities issued was less than 25% of the Company’s market capitalization.

About Hampton Financial Corporation

Hampton is a unique private equity firm that seeks to build shareholder value through long-term strategic investments.

Through its wholly-owned subsidiary, Hampton Securities Limited (“HSL”), Hampton is actively engaged in family office, wealth management, institutional services and capital markets activities. HSL is a full-service investment dealer, regulated by CIRO and registered in Alberta, British Columbia, Manitoba, Saskatchewan, Nova Scotia, Northwest Territories, Ontario, and Quebec. In addition, the Company, through HSL, provides investment banking services, which include assisting companies with raising capital, advising on mergers and acquisitions, and aiding issuers in obtaining a listing on recognized securities exchanges in Canada and abroad and HSL’s Corporate Finance Group provides early stage, growing companies the capital, they need to create value for investors. HSL continues to develop its Wealth Management, Advisory Team and Principal-Agent programs which offers to the industry’s most experienced wealth managers a unique and flexible operating platform that provides additional freedom, financial support, and tax effectiveness as they build and manage their professional practice.

Through its wholly-owned subsidiary, Oxygen Working Capital (“OWC”) the company offers factoring and other commercial financing services to clients across Canada.

The Company is exploring opportunities to diversify its sources of revenue by way of strategic investments in both complimentary business and non-core sectors that can leverage the expertise of its Board and the diverse experience of its management team.

For more information, please contact:

Olga Juravlev
Chief Financial Officer
Hampton Financial Corporation
(416) 862-8701

Or

Peter M. Deeb
Executive Chairman & CEO
Hampton Financial Corporation
(416) 862-8651

The TSXV has in no way approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release does not constitute or form a part of any offer or solicitation to buy or sell any securities in the United States or any other jurisdiction outside of Canada. The securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States and may not be offered or sold within the United States or to a U.S. person absent registration or pursuant to an available exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offering of securities in the United States.

Forward-Looking Statements

This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “should”, “hopeful”, “recovery”, “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project” or similar words, including negatives thereof, suggesting future outcomes.

Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors beyond the Company’s ability to predict or control which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein. Forward-looking statements are not a guarantee of future performance. Although the Company believes that any forward-looking statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such statements, there can be no assurance that any such forward-looking statements will prove to be accurate. Actual results may vary, and vary materially, from those expressed or implied by the forward-looking statements herein. Accordingly, readers are advised to rely on their own evaluation of the risks and uncertainties inherent in forward-looking statements herein and should not place undue reliance upon such forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Any forward-looking statements herein are made only as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

The MIL Network –

April 30, 2025

MIL-OSI: ChampionX Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

THE WOODLANDS, Texas, April 29, 2025 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced first quarter of 2025 results. Revenue was $864.5 million, net income attributable to ChampionX was $85.8 million, and adjusted EBITDA was $190.9 million. Income before income taxes margin was 12.1% and adjusted EBITDA margin was 22.1%. Cash from operating activities was $66.8 million and free cash flow was $38.6 million.

CEO Commentary

“The first quarter demonstrated the resilience of our ChampionX portfolio as we delivered strong adjusted EBITDA and adjusted EBITDA margin, and generated positive free cash flow. These results reflect the commitment of our ChampionX employees around the world who express daily an unwavering focus on delivering value-added solutions for our customers’ most important challenges. I am thankful and humbled to lead such a talented and dedicated team,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

“During the first quarter of 2025, we generated revenue of $864 million, which decreased 5% sequentially, in line with our expectations, driven primarily by a typical seasonal decline in international operations. We generated net income attributable to ChampionX of $86 million, income before income taxes margin of 12.1%, and we delivered adjusted EBITDA of $191 million, representing a 22.1% adjusted EBITDA margin, our second-highest level as ChampionX, which speaks to the continued productivity and profitability focus of our team.

“Cash flow from operating activities was $67 million during the first quarter, which represented 78% of net income attributable to ChampionX, and we generated free cash flow of $39 million, our 12th consecutive quarter of positive free cash flow. Our balance sheet and financial position remain strong, ending the first quarter with approximately $1.2 billion of liquidity, including $527 million of cash and $674 million of available capacity on our revolving credit facility.

“As a leading global provider of production optimization solutions for the energy industry, ChampionX is uniquely well-positioned to help operators meet the objective of maximizing the value of their producing assets, particularly against the backdrop of the ongoing structural shift toward capital discipline and moderating capital spending in the upstream and midstream industries. As global oil production grows, our differentiated and resilient production-oriented portfolio drives our expectation of positive performance relative to general oil and gas market activity in 2025.

“Amid recent changes in international trade policies, ChampionX is continuing to put its continuous improvement culture to work every day to successfully deliver products and technologies designed to improve our cost structure and drive efficiencies. We are leveraging our global and flexible supply chain footprint, long-standing supplier partnerships, pricing adjustments, and productivity initiatives to address tariff impacts, and we will continue to be there to serve our customers and deliver differentiated margin and free cash flow performance.”

Agreement to be Acquired by SLB

On April 2, 2024, SLB (NYSE: SLB) and ChampionX jointly announced a definitive Agreement and Plan of Merger (the “Merger Agreement”) for SLB to purchase ChampionX in an all-stock transaction. The transaction was unanimously approved by the ChampionX board of directors and the transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024. The transaction is subject to regulatory approvals and other customary closing conditions.

ChampionX may continue to pay its regular quarterly cash dividends with customary record and payment dates, subject to certain limitations under the Merger Agreement. Given the pending acquisition of ChampionX by SLB, ChampionX has discontinued providing quarterly guidance and will not host a conference call or webcast to discuss its first quarter 2025 results.

Production Chemical Technologies

Production Chemical Technologies revenue in the first quarter of 2025 was $523.4 million, a decrease of $46.3 million, or 8%, sequentially, due primarily to seasonally lower international sales volumes.

Segment operating profit was $82.2 million and adjusted segment EBITDA was $109.1 million. Segment operating profit margin was 15.7%, a sequential decrease of 248 basis points, and adjusted segment EBITDA margin was 20.8%, a sequential decrease of 259 basis points. The sequential decrease in segment operating profit margin and adjusted segment EBITDA margin was driven by lower sales volumes.

Production & Automation Technologies

Production & Automation Technologies revenue in the first quarter of 2025 was $264.4 million, a decrease of $5.2 million, or 2%, sequentially, due primarily to seasonally lower international sales volumes. Revenue from digital products was $57.8 million in the first quarter of 2025, a sequential decrease of 7%, driven by seasonally lower customer activity in North America.

Segment operating profit was $37.6 million and adjusted segment EBITDA was $70.3 million. Segment operating profit margin was 14.2%, a sequential decrease of 27 basis points, and adjusted segment EBITDA margin was 26.6%, a sequential increase of 34 basis points. The decrease in segment operating profit margin and the increase in adjusted segment EBITDA margin was driven by lower sales volumes, offset somewhat by productivity improvements.

Drilling Technologies

Drilling Technologies revenue in the first quarter of 2025 was $50.5 million, a decrease of $1.4 million, or 3%, sequentially, driven primarily by lower North America sales volumes.

Segment operating profit was $8.2 million and adjusted segment EBITDA was $10.2 million. Segment operating profit margin was 16.2%, compared to 20.6% in the prior quarter, and adjusted segment EBITDA margin was 20.3%, a decrease of 346 basis points, sequentially, due primarily to lower volumes.

Reservoir Chemical Technologies

Reservoir Chemical Technologies revenue in the first quarter of 2025 was $26.9 million, an increase of $5.0 million, or 23%, sequentially, driven by higher sales volumes in the U.S. and internationally.

Segment operating profit was $5.5 million and adjusted segment EBITDA was $6.3 million. Segment operating profit margin was 20.5%, an increase of 1008 basis points, sequentially, and adjusted segment EBITDA margin was 23.6%, an increase of 647 basis points, sequentially. The increase in segment operating profit margin and adjusted segment EBITDA margin was driven by higher sales volumes together with a more favorable product mix.

Other Business Highlights: Production Chemical Technologies and Reservoir Chemical Technologies

Awarded several first fill contracts for new conventional and unconventional fields in the Middle East region.
The North America Offshore production chemicals team was awarded the contract for an upcoming major capital project in the Gulf of America. The win was the culmination of years’ worth of work developing technical solutions to address the project’s most impactful challenges.
Commenced the initial deliveries of a significant volume of hydrate inhibitor for a major new FPSO, supporting an independent Australian operator.
Awarded program of competitive process water treatment applications in Canada after performing comprehensive technical assessments and value-added recommendations.
Completed our second RENEWIQ^® (production and reservoir chemistry delivered through one trailer) joint offering for frac treating.
Reservoir group was awarded RENEWIQ work for the application of our production enhancement PROE completion chemistry to improve production over the life of wells. This program, combined with our one-site PCT service expertise, continues to bring differentiated solutions to operators in the Permian Basin.
Started the Unconventional Water team to support North America Land Water applications.
Recently won four different contracts after re-entering the US Land market with our H2S scavenger program.
Providing chemistries supporting a Canadian customer that is scheduled to commission and start up a new thermal asset in August 2025.

Other Business Highlights: Production & Automation Technologies

Awarded a multi-year contract for production optimization software by a customer in Indonesia. 4000+ wells were successfully migrated in Q1 to our XSPOC^® production optimization software, delivering data-driven insights to help the customer make informed production decisions across their field for all artificial lift systems.
Continue to see strong market adoption of new digital technologies as operators look for cost-effective, scalable monitoring solutions. More than 450 SmartSpin^® wireless rod rotator sensors have been installed in the field and 120+ of the recently launched SMARTEN™^® Lite rod pump controller have been deployed.
ChampionX’s RMSpumptools, in partnership with our UNBRIDLED^® ESP Systems team, continues to grow sales of Automatic Diverter Valves (ADV) in the Permian for a major oil company. This key technology offers customers better sand and solids management in ESP systems and acts as a safety device for ESPs featuring a PMM motor.
Following two 6-month trial installations, RMSpumptools has received an order for its Y-chek systems by a Middle East national oil company. This success sets the direction for expansion of this Y-chek solution.
Completed the first 30+ well trial with a major producer in the Permian basin of the newly offered chemical injection assurance (CIA) software module on the modern, secure, and scalable Connexia^® platform. The CIA software provides fully integrated chemical measurement and delivery data as well as control and optimization capabilities.
The SMARTEN XE ESP control system is a leader in the ESP control market. In Q1, ChampionX secured a new customer based on the advanced capabilities of the SMARTEN XE controller. The system’s ability to deliver enhanced performance across multi-pad projects was central to the customer’s decision. Since launch, ChampionX has installed hundreds of ESPs with SMARTEN XE controls, improving the operation of customers’ ESP systems.
Launched newly designed LOOKOUT^® optimization services to provide real-time data with full ESP system control, advanced data visualization, integrated communications, and direct access to a team of multi-disciplined artificial lift experts. Powered by a modern digital backbone, LOOKOUT optimization services enable streamlined integration of diverse data sources and control solutions. LOOKOUT also leverages the full capabilities of the SMARTEN XE ESP control system, delivering advanced automation for ESP operations.
ChampionX’s Integrated Production Optimization (IPO) business continues to expand. A Permian operator, following a series of acquisitions, has expanded implementation of the IPO solution across newly acquired acreage – placing all new wells and ESP replacements under the IPO program. IPO has consistently delivered measurable production uplift, enhanced equipment reliability, stabilized reservoir pressure drawdown, and optimized chemical spend for the operator.
ChampionX’s Norris Sucker Rods has been awarded a large contract for the supply of approximately 35,000 sucker rods for a major customer in India. ChampionX won the contract based on superior reliability and in-country technical support, according to the customer.
Norris Rods received a large bulk order for sucker rods from a U.S. independent producer to assure supply for future operations and to mitigate the impact of tariffs. Norris Rods are manufactured from U.S. steel at the Company’s factory in Tulsa, Oklahoma.

About Non-GAAP Measures

In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

About ChampionX

ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction, and information regarding the businesses of SLB and ChampionX, including expectations regarding outlook and all underlying assumptions, SLB’s and ChampionX’s objectives, plans and strategies, information relating to operating trends in markets where SLB and ChampionX operate, statements that contain projections of results of operations or of financial condition and all other statements other than statements of historical fact that address activities, events or developments that SLB or ChampionX intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. All statements in this communication, other than statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “intends,” “plans,” “seeks,” “targets,” “may,” “can,” “believe,” “predict,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “ambition,” “goal,” “scheduled,” “think,” “could,” “would,” “will,” “see,” “likely,” and other similar expressions or variations, but not all forward-looking statements include such words. These forward-looking statements involve known and unknown risks and uncertainties, and which may cause SLB’s or ChampionX’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to those factors and risks described in Part I, “Item 1. Business”, “Item 1A. Risk Factors”, and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in SLB’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (the “SEC”) on January 22, 2025 and Part 1, Item 1A, “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 5, 2025, and each of their respective, subsequent Current Reports on Form 8-K. These include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; changes in demand for SLB’s or ChampionX’s products and services; global market, political and economic conditions, including in the countries in which SLB and ChampionX operate; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; the extent of growth of the oilfield services market generally, including for chemical solutions in production and midstream operations; the global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions; the impact of shifts in prices or margins of the products that SLB or ChampionX sells or services that SLB or ChampionX provides, including due to a shift towards lower margin products or services; cyber-attacks, information security and data privacy; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; trends in crude oil and natural gas prices, including trends in chemical solutions across the oil and natural gas industries, that may affect the drilling and production activity, profitability and financial stability of SLB’s and ChampionX’s customers and therefore the demand for, and profitability of, their products and services; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction; failure to effectively and timely address energy transitions that could adversely affect the businesses of SLB or ChampionX, results of operations, and cash flows of SLB or ChampionX; and disruptions of SLB’s or ChampionX’s information technology systems.

These risks, as well as other risks related to the proposed transaction, are included in the Form S-4 and proxy statement/prospectus that was filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to SLB’s and ChampionX’s respective periodic reports and other filings with the SEC, including the risk factors identified in SLB’s and ChampionX’s Annual Reports on Form 10-K, respectively, and SLB’s and ChampionX’s Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made only as of the date hereof. Neither SLB nor ChampionX undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

Investor Contact: Byron Pope
byron.pope@championx.com
281-602-0094

Media Contact: John Breed
john.breed@championx.com
281-403-5751

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands, except per share amounts)		2025			2024			2024
Revenue	$	864,464		$	912,037		$	922,141
Cost of goods and services		572,938			600,154			622,937
Gross profit		291,526			311,883			299,204
Costs and expenses:
Selling, general and administrative expense		177,045			184,722			172,414
(Gain) loss on sale-leaseback transaction		—			—			(29,883	)
Interest expense, net		13,196			12,375			13,935
Foreign currency transaction losses (gains), net		1,504			1,697			55
Other expense (income), net		(4,631	)		(5,026	)		2,927
Income before income taxes		104,412			118,115			139,756
Provision for income taxes		15,384			33,204			26,596
Net income		89,028			84,911			113,160
Net income attributable to noncontrolling interest		3,231			2,145			237
Net income attributable to ChampionX	$	85,797		$	82,766		$	112,923

Earnings per share attributable to ChampionX:
Basic	$	0.45		$	0.43		$	0.59
Diluted	$	0.44		$	0.43		$	0.58

Weighted-average shares outstanding:
Basic		191,143			190,586			190,803
Diluted		193,709			193,487			193,964

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(in thousands)	March 31, 2025			December 31, 2024
*ASSETS*
Current Assets:
Cash and cash equivalents	$	526,559		$	507,681
Receivables, net		417,639			466,782
Inventories, net		497,183			496,831
Assets held for sale		241,791			14,001
Prepaid expenses and other current assets		85,617			78,602
Total current assets		1,768,789			1,563,897

Property, plant and equipment, net		729,931			755,422
Goodwill		619,505			718,944
Intangible assets, net		247,907			258,614
Other non-current assets		134,258			173,375
Total assets	$	3,500,390		$	3,470,252

*LIABILITIES AND EQUITY*
Current Liabilities:
Current portion of long-term debt	$	6,203		$	6,203
Accounts payable		498,335			455,531
Liabilities held for sale		61,415			—
Other current liabilities		218,943			324,138
Total current liabilities		784,896			785,872

Long-term debt		590,746			591,453
Other long-term liabilities		220,054			261,749
Stockholders’ equity:
ChampionX stockholders’ equity		1,916,726			1,846,437
Noncontrolling interest		(12,032	)		(15,259	)
Total liabilities and equity	$	3,500,390		$	3,470,252

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

	Three Months Ended March 31,
(in thousands)		2025			2024
Cash flows from operating activities:
Net income	$	89,028		$	113,160
Depreciation and amortization		60,056			59,580
(Gain) loss on sale-leaseback transaction		—			(29,883	)
Loss on Argentina Blue Chip Swap transaction		—			4,092
Deferred income taxes		(10,941	)		(12,903	)
Loss (gain) on disposal of fixed assets		1,616			1,107
Receivables		13,937			62,915
Inventories		(25,569	)		(39,873	)
Accounts payable		40,675			68,248
Other assets		(19,955	)		(602	)
Leased assets		(6,665	)		(4,254	)
Other operating items, net		(75,380	)		(48,079	)
Net cash flows provided by operating activities		66,802			173,508

Cash flows from investing activities:
Capital expenditures		(31,250	)		(31,912	)
Proceeds from sale of fixed assets		3,004			2,390
Proceeds from sale-leaseback transaction		—			44,292
Purchase of investments		—			(17,162	)
Sale of investments		—			13,070
Acquisitions, net of cash acquired		—			(21,472	)
Net cash used for investing activities		(28,246	)		(10,794	)

Cash flows from financing activities:
Repayment of long-term debt		(1,551	)		(1,551	)
Repurchases of common stock		—			(49,399	)
Dividends paid		(18,110	)		(16,247	)
Other		(488	)		3,104
Net cash used for financing activities		(20,149	)		(64,093	)

Effect of exchange rate changes on cash and cash equivalents		471			(1,161	)

Net increase in cash and cash equivalents		18,878			97,460
Cash and cash equivalents at beginning of period		507,681			288,557
Cash and cash equivalents at end of period	$	526,559		$	386,017

CHAMPIONX CORPORATION
BUSINESS SEGMENT DATA
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Segment revenue:
Production Chemical Technologies	$	523,390		$	569,662		$	590,108
Production & Automation Technologies		264,377			269,568			252,614
Drilling Technologies		50,530			51,942			55,206
Reservoir Chemical Technologies		26,926			21,937			24,705
Corporate and other		(759	)		(1,072	)		(492	)
Total revenue	$	864,464		$	912,037		$	922,141

Income before income taxes:
Segment operating profit (loss):
Production Chemical Technologies	$	82,172		$	103,567		$	87,832
Production & Automation Technologies		37,554			39,027			28,470
Drilling Technologies		8,174			10,703			44,402
Reservoir Chemical Technologies		5,529			2,294			3,746
Total segment operating profit		133,429			155,591			164,450
Corporate and other		15,821			25,101			10,759
Interest expense, net		13,196			12,375			13,935
Income before income taxes	$	104,412		$	118,115		$	139,756

Operating profit margin / income before income taxes margin:
Production Chemical Technologies		15.7	%		18.2	%		14.9	%
Production & Automation Technologies		14.2	%		14.5	%		11.3	%
Drilling Technologies		16.2	%		20.6	%		80.4	%
Reservoir Chemical Technologies		20.5	%		10.5	%		15.2	%
ChampionX Consolidated		12.1	%		13.0	%		15.2	%

Adjusted EBITDA
Production Chemical Technologies	$	109,065		$	133,475		$	118,031
Production & Automation Technologies		70,269			70,739			60,340
Drilling Technologies		10,237			12,321			16,074
Reservoir Chemical Technologies		6,347			3,751			5,346
Corporate and other		(5,049	)		(8,021	)		(8,079	)
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

Adjusted EBITDA margin
Production Chemical Technologies		20.8	%		23.4	%		20.0	%
Production & Automation Technologies		26.6	%		26.2	%		23.9	%
Drilling Technologies		20.3	%		23.7	%		29.1	%
Reservoir Chemical Technologies		23.6	%		17.1	%		21.6	%
ChampionX Consolidated		22.1	%		23.3	%		20.8	%

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Net income attributable to ChampionX	$	85,797		$	82,766		$	112,923
Pre-tax adjustments:
(Gain) loss on sale leaseback transaction⁽¹⁾		—			—			(29,883	)
Russia sanctions compliance and impacts⁽²⁾		28			73			152
Restructuring and other related charges		1,059			2,704			1,709
Merger transaction costs⁽³⁾		10,232			14,434			—
Acquisition costs and related adjustments⁽⁴⁾		—			75			1,232
Intellectual property defense		382			158			779
Merger-related indemnification responsibility⁽⁵⁾		—			100			—
Tulsa, Oklahoma storm damage		—			—			305
Foreign currency transaction losses (gains), net		1,504			1,697			55
Loss on Argentina Blue Chip Swap transaction		—			—			4,092
Tax impact of adjustments		(2,971	)		(5,565	)		5,066
Adjusted net income attributable to ChampionX		96,031			96,442			96,430
Tax impact of adjustments		2,971			5,565			(5,066	)
Net income attributable to noncontrolling interest		3,231			2,145			237
Depreciation and amortization		60,056			62,534			59,580
Provision for income taxes		15,384			33,204			26,596
Interest expense, net		13,196			12,375			13,935
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

_______________________

_{(1) Amount represents the gain on the sale and leaseback of certain buildings and land.}
_{(2) Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.}
_{(3) Includes costs incurred in relation to the Merger Agreement with Schlumberger Limited, including third party legal and professional fees.}
_{(4) Includes costs incurred for the acquisition of businesses.}
_{(5) Expense related to the June 3, 2020 merger transaction with Ecolab in which we acquired the Chemical Technologies business.}

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Diluted earnings per share attributable to ChampionX	$	0.44		$	0.43		$	0.58
Per share adjustments:
(Gain) loss on sale leaseback transaction and disposal group		—			—			(0.15	)
Russia sanctions compliance and impacts		—			—			—
Restructuring and other related charges		0.01			0.01			0.01
Merger transaction costs		0.05			0.07			—
Acquisition costs and related adjustments		—			—			0.01
Intellectual property defense		—			—			—
Merger-related indemnification responsibility		—			—			—
Tulsa, Oklahoma storm damage		—			—			—
Foreign currency transaction losses (gains), net		0.01			0.01			—
Loss on Argentina Blue Chip Swap transaction		—			—			0.02
Tax impact of adjustments		(0.01	)		(0.02	)		0.03
Adjusted diluted earnings per share attributable to ChampionX	$	0.50		$	0.50		$	0.50

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES BY SEGMENT
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Production Chemical Technologies
Segment operating profit	$	82,172		$	103,567		$	87,832
Non-GAAP adjustments		1,658			2,251			3,933
Depreciation and amortization		25,235			27,657			26,266
Segment adjusted EBITDA	$	109,065		$	133,475		$	118,031

Production & Automation Technologies
Segment operating profit	$	37,554		$	39,027		$	28,470
Non-GAAP adjustments		764			75			2,076
Depreciation and amortization		31,951			31,637			29,794
Segment adjusted EBITDA	$	70,269		$	70,739		$	60,340

Drilling Technologies
Segment operating profit	$	8,174		$	10,703		$	44,402
Non-GAAP adjustments		766			306			(29,883	)
Depreciation and amortization		1,297			1,312			1,555
Segment adjusted EBITDA	$	10,237		$	12,321		$	16,074

Reservoir Chemical Technologies
Segment operating profit	$	5,529		$	2,294		$	3,746
Non-GAAP adjustments		(278	)		39			16
Depreciation and amortization		1,096			1,418			1,584
Segment adjusted EBITDA	$	6,347		$	3,751		$	5,346

Corporate and other
Segment operating profit	$	(29,017	)	$	(37,476	)	$	(24,694	)
Non-GAAP adjustments		10,295			16,570			2,299
Depreciation and amortization		477			510			381
Interest expense, net		13,196			12,375			13,935
Segment adjusted EBITDA	$	(5,049	)	$	(8,021	)	$	(8,079	)

Free Cash Flow

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Free Cash Flow
Cash flows from operating activities	$	66,802		$	207,250		$	173,508
Less: Capital expenditures, net of proceeds from sale of fixed assets		(28,246	)		(37,117	)		(29,522	)
Free cash flow	$	38,556		$	170,133		$	143,986

Cash From Operating Activities to Revenue Ratio
Cash flows from operating activities	$	66,802		$	207,250		$	173,508
Revenue	$	864,464		$	912,037		$	922,141

Cash from operating activities to revenue ratio		8	%		23	%		19	%

Free Cash Flow to Revenue Ratio
Free cash flow	$	38,556		$	170,133		$	143,986
Revenue	$	864,464		$	912,037		$	922,141

Free cash flow to revenue ratio		4	%		19	%		16	%

Free Cash Flow to Adjusted EBITDA Ratio
Free cash flow	$	38,556		$	170,133		$	143,986
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

Free cash flow to adjusted EBITDA ratio		20	%		80	%		75	%

The MIL Network –

April 30, 2025

MIL-OSI USA: Cortez Masto, Cassidy Introduce Bipartisan Legislation to Help Working Families Afford Their First Homes

US Senate News:

Source: United States Senator for Nevada Cortez Masto

Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Bill Cassidy (R-La.) reintroduced the bipartisan Affordable Housing Bond Enhancement Act, which would make homeownership more accessible and sustainable for working families. The bill would update and expand the Mortgage Revenue Bond (MRB) and Mortgage Credit Certificates (MCC) programs that have helped more than four million working-class families purchase their first home. The legislation would also help homeowners disaster-proof their houses to mitigate damage from increasingly common fires, devastating storms, and other natural disasters and would permit homeowners to refinance to a lower-cost mortgage.

“Hardworking families deserve the safety and security of a roof over their heads, said Senator Cortez Masto. “These tax credits and interest rate reductions will give working Nevadans a meaningful break as they take the important step of buying a first home. I will continue working in a bipartisan way to make sure that Nevadans have access to secure, affordable housing.”

“Buying a home is increasingly out of reach for first-time buyers. This addresses that issue,” said Dr. Cassidy. “By giving them a boost, we get them on the ladder of homeownership.”

Families with incomes of 115% of Area Median Income or less are able to receive discounted interest rates when they buy a home with an MRB. They also may be able to utilize an MCC that helps families qualify to buy a home and allows them to sustain homeownership over time. Cortez Masto and Cassidy’s bipartisan legislation makes updates and reforms to the MRB and MCC programs to better serve working families. Specifically, the Affordable Housing Bond Enhancement Act would:

Simplify the administration of both MRB and MCC programs and make commonsense changes to ensure the tax benefits will aid working families.
Add additional flexibility for homeowners, including allowing homeowners to refinance their mortgages.
Increase the amount of money homeowners with MRB loans can direct towards making home health and safety improvements—including adding accessible bathrooms and ramps to help older and disabled Americans remain in their home, as well as supporting energy efficiency upgrades and disaster mitigation renovations. The bill raises the current funding limit of $15,000 to $75,000 and indexes it for inflation.
Provide housing finance agencies with flexibility to extend loan and credit periods to account for delays due to supply chain issues or construction shortages.

You can find a one-pager about the bill here and the full bill text here.

Senator Cortez Masto has been a leader working to lower costs and build more housing supply. Recently, she reintroduced the HOME and PRICE Acts to increase the supply of and access to affordable housing. Last year she secured $9.4 million from the Federal Home Loan Bank of San Francisco’s targeted Nevada fund — almost twice as much as Nevada received the previous year — to build more middle-class homes, and she’s pushing to reform the FHLB system.

MIL OSI USA News –

April 30, 2025

MIL-OSI USA: Cassidy Introduces Bill to Help Working Families Afford Their First Homes

US Senate News:

Source: United States Senator for Louisiana Bill Cassidy

WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) introduced the Affordable Housing Bond Enhancement Act to make homeownership more accessible for working families by improving tax credits for first-time homebuyers. The bill improves access to affordable home ownership by expanding tax credits for first-time buyers and making it easier for MRB borrowers to finance home improvements.
“Buying a home is increasingly out of reach for first-time buyers. This addresses that issue,” said Dr. Cassidy. “By giving them a boost, we get them on the ladder of homeownership.”
“The National Council of State Housing Agencies (NCSHA) thanks Senators Bill Cassidy and Cortez Masto for introducing the Affordable Housing Bond Enhancement Act, which will expand access to homeownership for low- and moderate-income home buyers,” said Stockton Williams, executive director of NCSHA. “Mortgage Revenue Bonds and Mortgage Credit Certificates historically have been the state housing finance agencies’ primary tool for financing affordable homeownership opportunities for working families, having helped nearly four million home buyers combined. This legislation will enact a series of simple, commonsense reforms to the MRB and MCC programs that will allow HFAs to better stretch their resources and help more underserved households.”
Cassidy was joined by U.S. Senator Catherine Cortez Masto (D-NV) in reintroducing the legislation.
Specifically, the Affordable Housing Bond Enhancement Act would:

Simplify the application process for MRB and MCC programs and make commonsense changes to use tax benefits to aid working families and add additional flexibility for borrowers.
Allow homeowners to refinance their mortgages with MRB loans, lowering costs for homeowners.
Increase the amount of money homeowners with MRB loans can direct towards making home health and safety improvements, including possibly adding accessible bathrooms and ramps to help older and disabled Americans remain in their homes, as well as supporting energy efficiency upgrades or disaster mitigation renovations. The bill raises the current limit of $15,000 to $75,000.
Provide housing finance agencies with the flexibility to extend loan and credit periods to account for delays due to the pandemic, supply chain issues, or construction shortages.
Only require the issuers, not the lenders, to report MCC recipients to the IRS for tax accuracy and shorten the lengthy 90-day public notice requirement to 30 days to encourage more widespread use of the MCC program.

This legislation is endorsed by the National Council of State Housing Agencies, LISC, National Association of REALTORS, National Association of Homebuilders, and the Mortgage Bankers Association.

MIL OSI USA News –

April 30, 2025

MIL-OSI: GAMCO Natural Resources, Gold & Income Trust (NYSE: GNT) Announces Consideration of Tax Benefits Preservation Plan

Source: GlobeNewswire (MIL-OSI)

RYE, N.Y., April 29, 2025 (GLOBE NEWSWIRE) — The Board of Trustees of GAMCO Natural Resources, Gold & Income Trust (the “Fund”) has instructed Fund management to explore the implementation of a tax benefit preservation plan designed to help preserve the full availability of the Fund’s capital loss carryforwards (“CLCFs”).

As of March 31, 2025, the Fund estimates that its cumulative CLCFs exceed $74 million. These CLCFs, which are not subject to any expiration date under current law for so long as the Fund qualifies for taxation as a regulated investment company, benefit the Fund and its shareholders by reducing the Fund’s taxable capital gains in future years.

The purpose of the tax benefit preservation plan, if adopted, would be to reduce the risk of substantial impairment to the Fund’s CLCFs that could result from the triggering of an “ownership change”” within the meaning of Section 382 of the Internal Revenue Code. In general, an “ownership change” would occur if the Company’s “5% stockholders” (within the meaning of Section 382 of the Internal Revenue Code) increase their aggregate ownership in the Fund by more than 50 percentage points over a rolling three-year period. If the Fund were to undergo an “ownership change,” its use of CLCFs would be subject to the limitations set forth in Section 382.

The tax benefit preservation plan, if adopted, would seek to create a disincentive for any shareholder to accumulate beneficial ownership of Fund shares of 4.9% or more, or further accumulate Fund shares if the shareholder’s beneficial ownership already exceeds 4.9%, in each case without the approval of the Board.

It is expected that the Fund would implement the tax benefit preservation plan, if adopted, by issuing rights to each holder of the Fund’s common shares on a record date to be determined by the Board. The rights would not be exercisable at issuance. However, if any person or certain groups acquire shares above an ownership threshold established by the terms of the rights, or if a person or such group that already owns above that threshold acquires additional shares, then, the rights would become exercisable, pursuant to which all shareholders, other than the acquiring party, could purchase additional common shares.

The final terms of the tax benefit preservation plan, if adopted, will be determined by the Board and publicly announced at the time of any such adoption.

There is no assurance that a tax benefit preservation plan will be adopted. And, if adopted, there is no assurance that a tax benefit preservation plan will prevent an “ownership change” within the meaning of Section 382.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. For more information regarding the Fund’s distribution policy and other information about the Fund, call:

David Schachter
(914) 921-5057

The Fund’s NAV per share will fluctuate with changes in the market value of the Fund’s portfolio securities. Stocks are subject to market, economic, and business risks that cause their prices to fluctuate. Investors acquire shares of the Fund on a securities exchange at market value, which fluctuates according to the dynamics of supply and demand. When Fund shares are sold, they may be worth more or less than their original cost. Consequently, you can lose money by investing in the Fund.

Covered Call and Other Option Transaction Risks. There are several risks associated with writing covered calls and entering into other types of option transactions. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, resulting in a given transaction not achieving its objectives. In addition, a decision as to whether, when, and how to use covered call options involves the exercise of skill and judgment, and even a well-conceived transaction may be unsuccessful because of market behavior or unexpected events. As the writer of a covered call option, the Fund forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the exercise price of the call option, but has retained the risk of loss should the price of the underlying security decline.

About The GAMCO Natural Resources, Gold & Income Trust
The GAMCO Natural Resources, Gold & Income Trust is a diversified, closed-end management investment company with $146 million in total net assets whose primary investment objective is to provide a high level of current income. The Fund invests primarily in equity securities of gold and natural resources companies and intends to earn income primarily through a strategy of writing (selling) primarily covered call options on equity securities in its portfolio. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE – GNT
CUSIP – 36465E101

Investor Relations Contact:
David Schachter
(914) 921-5057
dschachter@gabelli.com

The MIL Network –

April 30, 2025

MIL-OSI: Qorvo® Announces Fiscal 2025 Fourth Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

GREENSBORO, N.C., April 29, 2025 (GLOBE NEWSWIRE) — Qorvo^® (Nasdaq:QRVO), a leading global provider of connectivity and power solutions, today announced financial results for the Company’s fiscal 2025 fourth quarter ended March 29, 2025.

On a GAAP basis, revenue for Qorvo’s fiscal 2025 fourth quarter was $869.5 million, gross margin was 42.2%, operating income was $28.2 million, and diluted earnings per share was $0.33. On a non-GAAP basis, gross margin was 45.9%, operating income was $151.8 million, and diluted earnings per share was $1.42.

Bob Bruggeworth, president and chief executive officer of Qorvo, said, “During the March quarter, Qorvo achieved stronger than seasonal sequential revenue while surpassing the midpoint of EPS guidance by 42 cents and expanding gross margin year-over-year. Looking across our business segments, our growth and margin targets are anchored in a multi-year strategy focused on winning content with our largest customer and building on our core RF and power expertise to drive diversification through CSG and HPA. We are on a path to continue to improve our business mix and our manufacturing footprint.”

Financial Commentary and Outlook

Grant Brown, chief financial officer of Qorvo, said, “Qorvo’s fiscal fourth quarter results exceeded the midpoint of our guidance on revenue, gross margin and EPS. Furthermore, we generated $171 million of free cash flow in the fourth quarter and $485 million during fiscal 2025. While we continue to monitor ongoing macroeconomic factors, including tariff and trade policy uncertainty, we remain focused on our operational objectives — including portfolio optimization, factory consolidation, and continued cost discipline — that position us to expand margins, enhance operational efficiency, and drive shareholder value.”

Qorvo’s current outlook for the June 2025 quarter is:

Quarterly revenue of approximately $775 million, plus or minus $25 million
Non-GAAP gross margin between 42% and 44%
Non-GAAP diluted earnings per share between $0.50 and $0.75

See “Forward-looking non-GAAP financial measures” below. Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.

Selected Financial Information

The following tables set forth selected GAAP and non-GAAP financial information for Qorvo for the periods indicated. See the more detailed financial information for Qorvo, including reconciliations of GAAP and non-GAAP financial information, attached.

SELECTED GAAP RESULTS
(In millions, except for percentages and EPS)
(Unaudited)

	Q4 Fiscal 2025			Q3 Fiscal 2025			Q4 Fiscal 2024			Sequential Change				Year-over-Year Change
Revenue	$	869.5		$	916.3		$	941.0		$	(46.8	)		$	(71.5	)
Gross profit	$	366.6		$	391.4		$	381.9		$	(24.8	)		$	(15.3	)
Gross margin		42.2	%		42.7	%		40.6	%		(0.5	)	ppt		1.6		ppt
Operating expenses	$	338.3		$	338.4		$	351.9		$	(0.1	)		$	(13.6	)
Operating income	$	28.2		$	53.0		$	30.0		$	(24.8	)		$	(1.8	)
Net income	$	31.4		$	41.3		$	2.7		$	(9.9	)		$	28.7
Weighted-average diluted shares		94.1			95.0			97.3			(0.9	)			(3.2	)
Diluted EPS	$	0.33		$	0.43		$	0.03		$	(0.10	)		$	0.30


SELECTED NON-GAAP RESULTS ⁽¹⁾
(In millions, except for percentages and EPS)
(Unaudited)

	Q4 Fiscal 2025			Q3 Fiscal 2025			Q4 Fiscal 2024			Sequential Change				Year-over-Year Change
Revenue	$	869.5		$	916.3		$	941.0		$	(46.8	)		$	(71.5	)
Gross profit	$	398.7		$	426.3		$	400.4		$	(27.6	)		$	(1.7	)
Gross margin		45.9	%		46.5	%		42.5	%		(0.6	)	ppt		3.4		ppt
Operating expenses	$	246.8		$	248.4		$	253.2		$	(1.6	)		$	(6.4	)
Operating income	$	151.8		$	177.9		$	147.2		$	(26.1	)		$	4.6
Net income	$	133.3		$	152.8		$	135.5		$	(19.5	)		$	(2.2	)
Weighted-average diluted shares		94.1			95.0			97.3			(0.9	)			(3.2	)
Diluted EPS	$	1.42		$	1.61		$	1.39		$	(0.19	)		$	0.03

(1) Adjusted for stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill and other asset impairments, net adjustments related to a terminated capacity reservation agreement, gain or loss on assets, other expense or income, gain or loss on investments, and an adjustment of income taxes.


SELECTED GAAP RESULTS BY OPERATING SEGMENT
(In millions, except percentages)
(Unaudited)

	Q4 Fiscal 2025				Q3 Fiscal 2025				Q4 Fiscal 2024				Sequential Change			Year-over-Year Change
Revenue
HPA	$	187.9			$	171.7			$	164.6			9.4		%	14.2		%
CSG		101.3				109.5				122.8			(7.5	)	%	(17.5	)	%
ACG		580.3				635.1				653.6			(8.6	)	%	(11.2	)	%
Total revenue	$	869.5			$	916.3			$	941.0			(5.1	)	%	(7.6	)	%
Operating income (loss)
HPA	$	58.4			$	32.6			$	31.5			79.1		%	85.4		%
CSG		(15.6	)			(11.7	)			(15.2	)		(33.3	)	%	(2.6	)	%
ACG		109.7				161.2				134.3			(31.9	)	%	(18.3	)	%
Unallocated amounts ⁽¹⁾		(124.3	)			(129.1	)			(120.6	)		3.7		%	(3.1	)	%
Total operating income	$	28.2			$	53.0			$	30.0			(46.8	)	%	(6.0	)	%
Operating income (loss) as a % of revenue
HPA		31.1		%		19.0		%		19.1		%	12.1		ppt	12.0		ppt
CSG		(15.4	)			(10.7	)			(12.4	)		(4.7	)	ppt	(3.0	)	ppt
ACG		18.9				25.4				20.5			(6.5	)	ppt	(1.6	)	ppt
Total operating income as a % of revenue		3.3		%		5.8		%		3.2		%	(2.5	)	ppt	—		ppt

(1) Includes stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill and other asset impairments, net adjustments related to a terminated capacity reservation agreement, gain or loss on assets, other expense or income, costs associated with upgrading certain of the Company’s core business systems and other miscellaneous corporate overhead expenses.

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains some or all of the following non-GAAP financial measures: (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating expenses, operating income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP net income per diluted share, (v) free cash flow, (vi) EBITDA, (vii) non-GAAP return on invested capital (ROIC), and (viii) net debt or positive net cash. Each of these non-GAAP financial measures is either adjusted from GAAP results to exclude certain expenses or derived from multiple GAAP measures, which are outlined in the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables, attached, and the “Additional Selected Non-GAAP Financial Measures and Reconciliations” tables, attached.

In managing Qorvo’s business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In developing and monitoring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing gross margin and operating margin. In addition, management relies upon these non-GAAP financial measures to assess whether research and development efforts are at an appropriate level, and when making decisions about product spending, administrative budgets, and other operating expenses. Also, we believe that non-GAAP financial measures provide useful supplemental information to investors and enable investors to analyze the results of operations in the same way as management. We have chosen to provide this supplemental information to enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, and stock-based compensation expense, which may obscure trends in Qorvo’s underlying performance.

We believe that these non-GAAP financial measures offer an additional view of Qorvo’s operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of Qorvo’s results of operations and the factors and trends affecting Qorvo’s business. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of Qorvo’s operations, are outlined below:

Non-GAAP gross profit and gross margin. Non-GAAP gross profit and gross margin exclude amortization of intangible assets, stock-based compensation expense, restructuring-related charges, acquisition and integration-related costs, and certain other expense (income). We believe that exclusion of these costs in presenting non-GAAP gross profit and gross margin facilitates a useful evaluation of our historical performance and projected costs and the potential for realizing cost efficiencies.

We view amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, and customer relationships, as items arising from pre-acquisition activities, determined at the time of an acquisition, rather than ongoing costs of operating Qorvo’s business. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangible assets is a static expense, which is not typically affected by operations during any particular period. Although we exclude the amortization of purchased intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting and contribute to revenue generation.

We believe that presentation of non-GAAP gross profit and gross margin and other non-GAAP financial measures that exclude the impact of stock-based compensation expense assists management and investors in evaluating the period-over-period performance of Qorvo’s ongoing operations because (i) the expenses are non-cash in nature, and (ii) although the size of the grants is within our control, the amount of expense varies depending on factors such as short-term fluctuations in stock price volatility and prevailing interest rates, which can be unrelated to the operational performance of Qorvo during the period in which the expense is incurred and generally are outside the control of management. Moreover, we believe that the exclusion of stock-based compensation expense in presenting non-GAAP gross profit and gross margin and other non-GAAP financial measures is useful to investors to understand the impact of the expensing of stock-based compensation to Qorvo’s gross profit and gross margins and other financial measures in comparison to prior periods. We also believe that the adjustments to profit and margin related to restructuring-related charges, and acquisition and integration-related costs do not constitute part of Qorvo’s ongoing operations and therefore the exclusion of these items provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP gross profit and gross margin has economic substance because the excluded expenses do not represent continuing cash expenditures and, as described above, we have little control over the timing and amount of the expenses in question.

Non-GAAP gross profit and gross margin also exclude net adjustments related to a terminated capacity reservation agreement. In October 2023, a long-term capacity reservation agreement with a foundry supplier was amended. Pursuant to the amendment, Qorvo is no longer obligated to order silicon wafers from the foundry supplier and the agreement was terminated effective December 31, 2023. We believe these net adjustments are not reflective of the performance of our ongoing business.

Non-GAAP operating expenses, operating income and operating margin. Non-GAAP operating expenses, operating income and operating margin exclude stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, net adjustments related to a terminated capacity reservation agreement, (gain) loss on assets and certain other expense (income). We believe that presentation of a measure of operating expenses, operating income and operating margin that excludes amortization of intangible assets and stock-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, net adjustments related to a terminated capacity reservation agreement, (gain) loss on assets and certain other expense (income) do not constitute part of Qorvo’s ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP operating expenses, operating income and operating margin has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

Non-GAAP net income and non-GAAP net income per diluted share. Non-GAAP net income and non-GAAP net income per diluted share exclude the effects of stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, net adjustments related to a terminated capacity reservation agreement, (gain) loss on assets, certain other expense (income), gain or loss on investments, and also reflect an adjustment of income taxes. The income tax adjustment primarily represents the use of research and development tax credit carryforwards, deferred tax expense (benefit) items not affecting taxes payable, adjustments related to the deemed and actual repatriation of historical foreign earnings, non-cash expense (benefit) related to uncertain tax positions and other items unrelated to the current fiscal year or that are not indicative of our ongoing business operations. We believe that presentation of measures of net income and net income per diluted share that exclude these items is useful to both management and investors for the reasons described above with respect to non-GAAP gross profit and gross margin and non-GAAP operating expenses, operating income and operating margin. We believe disclosure of non-GAAP net income and non-GAAP net income per diluted share has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

Free cash flow. Qorvo defines free cash flow as net cash provided by operating activities during the period minus property and equipment expenditures made during the period, and free cash flow margin is calculated as free cash flow as a percentage of revenue. We use free cash flow as a supplemental financial measure in our evaluation of liquidity and financial strength. Management believes that this measure is useful as an indicator of our ability to service our debt, meet other payment obligations and make strategic investments. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statement of cash flows.

EBITDA. Qorvo adjusts GAAP net income for interest expense, interest income, income tax expense (benefit), depreciation and intangible amortization expense, stock-based compensation and other charges that are not representative of Qorvo’s ongoing operations (including goodwill and other asset impairments, investment activity, acquisition-related costs and restructuring-related costs and certain net adjustments related to a terminated capacity reservation agreement) when presenting EBITDA. Management believes that this measure is useful to evaluate our ongoing operations and as a general indicator of our operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges).

Non-GAAP ROIC. ROIC is a non-GAAP financial measure that management believes provides useful supplemental information for management and the investor by measuring the effectiveness of our operations’ use of invested capital to generate profits. We use ROIC to track how much value we are creating for our shareholders. Non-GAAP ROIC is calculated by dividing annualized non-GAAP operating income, net of an adjustment for income taxes (as described above), by average invested capital. Average invested capital is calculated by subtracting the average of the beginning balance and the ending balance of equity plus net debt, less certain goodwill.

Net debt or positive net cash. Net debt or positive net cash is defined as unrestricted cash, cash equivalents and short-term investments minus any borrowings under our credit facility and the principal balance of our senior unsecured notes. Management believes that net debt or positive net cash provides useful information regarding the level of Qorvo’s indebtedness by reflecting cash and investments that could be used to repay debt.

Inventory days on hand. Inventory days on hand is defined as (a) average net inventory for the period, divided by (b) the result of non-GAAP cost of goods sold for the period divided by the number of days in the period.

Forward-looking non-GAAP financial measures. Our earnings release contains forward-looking free cash flow, gross margin, income tax rate and diluted earnings per share. We provide these non-GAAP measures to investors on a prospective basis for the same reasons (set forth above) that we provide them to investors on a historical basis. We are unable to provide a reconciliation of the forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures without unreasonable effort due to variability and difficulty in making accurate projections for items that would be required to be included in the GAAP measures, such as stock-based compensation, acquisition and integration-related costs, restructuring-related charges, gain or loss on assets, goodwill and other asset impairments, gain or loss on investments and the provision for income taxes, which could have a potentially significant impact on our future GAAP results.

Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP financial measures as an analytical tool compared to the most directly comparable GAAP financial measures are these non-GAAP financial measures (i) may not be comparable to similarly titled measures used by other companies in our industry, and (ii) exclude financial information that some may consider important in evaluating our performance, thus limiting their usefulness as a comparative tool. We compensate for these limitations by providing full disclosure of the differences between these non-GAAP financial measures and the corresponding GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, to enable investors to perform their own analysis of our gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities. We further compensate for the limitations of our use of non-GAAP financial measures by presenting the corresponding GAAP measures more prominently.

Qorvo will conduct a conference call at 4:30 p.m. ET today to discuss today’s press release. The conference call will be broadcast live over the Internet and can be accessed by any interested party at the following URL: https://ir.qorvo.com (under “Events & Presentations”). A telephone playback of the conference call will be available approximately two hours after the call’s completion and can be accessed by dialing 1-412-317-0088 and using the passcode 2889510. The playback will be available through the close of business May 6, 2025.

About Qorvo

Qorvo (Nasdaq:QRVO) supplies innovative semiconductor solutions that make a better world possible. We combine product and technology leadership, systems-level expertise and global manufacturing scale to quickly solve our customers’ most complex technical challenges. Qorvo serves diverse high-growth segments of large global markets, including automotive, consumer, defense & aerospace, industrial & enterprise, infrastructure and mobile. Visit www.qorvo.com to learn how our diverse and innovative team is helping connect, protect and power our planet.

Qorvo is a registered trademark of Qorvo, Inc. in the U.S. and in other countries. All other trademarks are the property of their respective owners.

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions, and are not historical facts and typically are identified by terms such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “forecast,” “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management’s current judgment and expectations as of the date the statement is first made, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We caution you not to place undue reliance upon any such forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Our business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results on a quarterly and annual basis; our substantial dependence on developing new products and achieving design wins; our dependence on several large customers for a substantial portion of our revenue; a loss of revenue if defense and aerospace contracts are canceled or delayed; our dependence on third parties; risks related to sales through distributors; risks associated with the operation of our manufacturing facilities; business disruptions; poor manufacturing yields; increased inventory risks and costs, due to timing of customers’ forecasts; our inability to effectively manage or maintain relationships with chipset suppliers; our ability to continue to innovate in a very competitive industry; underutilization of manufacturing facilities; unfavorable changes in interest rates, pricing of certain precious metals, utility rates and foreign currency exchange rates; our acquisitions, divestitures and other strategic investments failing to achieve financial or strategic objectives; our ability to attract, retain and motivate key employees; warranty claims, product recalls and product liability; changes in our effective tax rate; enactment of international or domestic tax legislation, or changes in regulatory guidance; changes in the favorable tax status of certain of our subsidiaries; risks associated with social, environmental, health and safety regulations, and climate change; risks from international sales and operations; economic regulation in China; changes in government trade policies, including imposition of tariffs and export restrictions; we may not be able to generate sufficient cash to service all of our debt; restrictions imposed by the agreements governing our debt; our reliance on our intellectual property portfolio; claims of infringement of third-party intellectual property rights; security breaches, failed system upgrades or regular maintenance and other similar disruptions to our IT systems; theft, loss or misuse of personal data by or about our employees, customers or third parties; provisions in our governing documents and Delaware law may discourage takeovers and business combinations that our stockholders might consider to be in their best interests; and volatility in the price of our common stock. These and other risks and uncertainties, which are described in more detail under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 30, 2024, and Qorvo’s subsequent reports and statements that we file with the SEC, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

# # #

Financial Tables to Follow


QORVO, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)

	Three Months Ended						Twelve Months Ended
	March 29, 2025			March 30, 2024			March 29, 2025			March 30, 2024
Revenue	$	869,474		$	940,988		$	3,718,971		$	3,769,506

Costs and expenses:
Cost of goods sold		502,911			559,131			2,183,382			2,281,011
Research and development		179,931			179,883			747,709			682,249
Selling, general and administrative		90,581			93,107			403,624			389,140
Other operating expense		67,830			78,889			288,729			325,405
Total costs and expenses		841,253			911,010			3,623,444			3,677,805

Operating income		28,221			29,978			95,527			91,701
Interest expense		(19,985	)		(17,282	)		(78,328	)		(69,245	)
Other income, net		6,987			16,818			48,700			51,104

Income before income taxes		15,223			29,514			65,899			73,560
Income tax benefit (expense)		16,142			(26,779	)		(10,284	)		(143,882	)
Net income (loss)	$	31,365		$	2,735		$	55,615		$	(70,322	)

Net income (loss) per share:
Basic	$	0.34		$	0.03		$	0.59		$	(0.72	)
Diluted	$	0.33		$	0.03		$	0.58		$	(0.72	)

Weighted-average shares of common stock outstanding:
Basic		93,249			96,277			94,586			97,557
Diluted		94,105			97,335			95,450			97,557


QORVO, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited)

	Three Months Ended
	March 29, 2025			December 28, 2024			March 30, 2024

GAAP operating income	$	28,221		$	53,025		$	29,978
Stock-based compensation expense		27,415			28,384			21,581
Amortization of intangible assets		24,040			26,085			31,187
Restructuring-related (adjustments) charges		(17,252	)		68,072			55,535
Goodwill and intangible asset impairment		79,503			—			—
Acquisition and integration-related costs		4,395			1,382			6,596
Net adjustments related to a terminated capacity reservation agreement		(720	)		(1,253	)		(13,445	)
Other expense		6,247			2,216			15,792
Non-GAAP operating income	$	151,849		$	177,911		$	147,224

GAAP net income	$	31,365		$	41,271		$	2,735
Stock-based compensation expense		27,415			28,384			21,581
Amortization of intangible assets		24,040			26,085			31,187
Restructuring-related (adjustments) charges		(17,252	)		68,072			55,535
Goodwill and intangible asset impairment		79,503			—			—
Acquisition and integration-related costs		4,395			1,382			6,596
Net adjustments related to a terminated capacity reservation agreement		(720	)		(1,253	)		(13,445	)
Other expense		8,889			600			10,662
Loss (gain) on investment		802			(1,721	)		1,805
Adjustment of income taxes		(25,095	)		(10,067	)		18,874
Non-GAAP net income	$	133,342		$	152,753		$	135,530

GAAP weighted-average outstanding diluted shares		94,105			95,031			97,335
Dilutive stock-based awards		—			—			—
Non-GAAP weighted-average outstanding diluted shares		94,105			95,031			97,335

Non-GAAP net income per share, diluted	$	1.42		$	1.61		$	1.39


QORVO, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)

	Three Months Ended
(in thousands, except percentages)	March 29, 2025						December 28, 2024						March 30, 2024
GAAP gross profit/margin	$	366,563		42.2		%	$	391,416		42.7		%	$	381,857		40.6		%
Stock-based compensation expense		5,645		0.7				5,742		0.6				3,444		0.3
Amortization of intangible assets		21,684		2.5				23,462		2.6				26,031		2.8
Restructuring-related charges		5,492		0.6				6,931		0.7				1,212		0.1
Acquisition and integration-related costs		1		—				1		—				1,281		0.1
Net adjustments related to a terminated capacity reservation agreement		(720	)	(0.1	)			(1,253	)	(0.1	)			(13,445	)	(1.4	)
Non-GAAP gross profit/margin	$	398,665		45.9		%	$	426,299		46.5		%	$	400,380		42.5		%

	Three Months Ended
Non-GAAP Operating Income	March 29, 2025
(as a percentage of revenue)

GAAP operating income	3.3		%
Stock-based compensation expense	3.2
Amortization of intangible assets	2.8
Restructuring-related adjustments	(2.0	)
Goodwill and intangible asset impairment	9.1
Acquisition and integration-related costs	0.5
Net adjustments related to a terminated capacity reservation agreement	(0.1	)
Other expense	0.7
Non-GAAP operating income	17.5		%

	Three Months Ended
Free Cash Flow ⁽¹⁾	March 29, 2025
(in millions)

Net cash provided by operating activities	$	199.2
Purchases of property and equipment		(28.5	)
Free cash flow	$	170.7

(1) Free Cash Flow is calculated as net cash provided by operating activities minus property and equipment expenditures.


QORVO, INC. AND SUBSIDIARIES
ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(In thousands)
(Unaudited)

	Three Months Ended
	March 29, 2025			December 28, 2024		March 30, 2024
GAAP research and development expense	$	179,931		$	179,126	$	179,883
Less:
Stock-based compensation expense		14,364			13,650		11,812
Acquisition and integration-related costs		1			1		1
Non-GAAP research and development expense	$	165,566		$	165,475	$	168,070

	Three Months Ended
	March 29, 2025			December 28, 2024		March 30, 2024
GAAP selling, general and administrative expense	$	90,581		$	90,360	$	93,107
Less:
Stock-based compensation expense		7,576			8,985		6,291
Amortization of intangible assets		2,356			2,623		5,156
Non-GAAP selling, general and administrative expense	$	80,649		$	78,752	$	81,660

	Three Months Ended
	March 29, 2025			December 28, 2024		March 30, 2024
GAAP other operating expense	$	67,830		$	68,905	$	78,889
Less:
Stock-based compensation (adjustment) expense		(170	)		7		34
Restructuring-related (adjustments) charges		(22,744	)		61,141		54,323
Goodwill and intangible asset impairment		79,503			—		—
Acquisition and integration-related costs		4,393			1,380		5,314
Other expense		6,247			2,216		15,792
Non-GAAP other operating expense	$	601		$	4,161	$	3,426

	Three Months Ended
	March 29, 2025			December 28, 2024		March 30, 2024
GAAP total operating expense	$	338,342		$	338,391	$	351,879
Less:
Stock-based compensation expense		21,770			22,642		18,137
Amortization of intangible assets		2,356			2,623		5,156
Restructuring-related (adjustments) charges		(22,744	)		61,141		54,323
Goodwill and intangible asset impairment		79,503			—		—
Acquisition and integration-related costs		4,394			1,381		5,315
Other expense		6,247			2,216		15,792
Non-GAAP total operating expense	$	246,816		$	248,388	$	253,156


QORVO, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	March 29, 2025		March 30, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	1,021,176	$	1,029,258
Accounts receivable, net		386,719		412,960
Inventories		640,992		710,555
Other current assets		118,388		133,983
Assets of disposal group held for sale		—		159,278
Total current assets		2,167,275		2,446,034

Property and equipment, net		801,895		870,982
Goodwill		2,389,741		2,534,601
Intangible assets, net		273,478		509,383
Long-term investments		23,433		23,252
Other non-current assets		277,309		170,383
Total assets	$	5,933,131	$	6,554,635

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	548,644	$	589,760
Current portion of long-term debt		—		438,740
Other current liabilities		234,538		113,215
Liabilities of disposal group held for sale		—		88,372
Total current liabilities		783,182		1,230,087

Long-term debt		1,549,215		1,549,272
Other long-term liabilities		208,422		218,904
Total liabilities		2,540,819		2,998,263

Stockholders’ equity		3,392,312		3,556,372
Total liabilities and stockholders’ equity	$	5,933,131	$	6,554,635

At Qorvo^®
Doug DeLieto
VP, Investor Relations
1.336.678.7968

The MIL Network –

April 30, 2025

MIL-OSI: NMI Holdings, Inc. Reports Record First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

EMERYVILLE, Calif., April 29, 2025 (GLOBE NEWSWIRE) — NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $102.6 million, or $1.28 per diluted share, for the first quarter ended March 31, 2025, compared to $86.2 million, or $1.07 per diluted share, for the fourth quarter ended December 31, 2024 and $89.0 million, or $1.08 per diluted share, for the first quarter ended March 31, 2024. Adjusted net income for the quarter was $102.5 million, or $1.28 per diluted share, compared to $86.1 million, or $1.07 per diluted share, for the fourth quarter ended December 31, 2024 and $89.0 million, or $1.08 per diluted share, for the first quarter ended March 31, 2024.

Adam Pollitzer, President and Chief Executive Officer of National MI, said, “In the first quarter, we again delivered standout operating performance, continued growth in our high-quality insured portfolio and record financial results. We have a strong customer franchise, a talented team driving us forward every day, an exceptionally high-quality book covered by a comprehensive set of risk transfer solutions, and a robust balance sheet supported by the significant earnings power of our platform. We continue to manage our business with discipline and a focus on through-the-cycle performance, and looking forward, we’re well positioned to continue to serve our customers and their borrowers, support our talented team, and deliver sustained performance and long-term value for our shareholders.”

Selected first quarter 2025 highlights include:

Primary insurance-in-force at quarter end was $211.3 billion, compared to $210.2 billion at the end of the fourth quarter and $199.4 billion at the end of the first quarter of 2024.
Net premiums earned were $149.4 million, compared to $143.5 million in the fourth quarter and $136.7 million in the first quarter of 2024.
Total revenue was $173.2 million, compared to $166.5 million in the fourth quarter and $156.3 million in the first quarter of 2024.
Insurance claims and claim expenses were $4.5 million, compared to $17.3 million in the fourth quarter and $3.7 million in the first quarter of 2024. Loss ratio was 3.0%, compared to 12.0% in the fourth quarter and 2.7% in the first quarter of 2024.
Underwriting and operating expenses were $30.2 million, compared to $31.1 million in the fourth quarter and $29.8 million in the first quarter of 2024. Expense ratio was 20.2%, compared to 21.7% in the fourth quarter and 21.8% in the first quarter of 2024.
Net income was $102.6 million, compared to $86.2 million in the fourth quarter and $89.0 million in the first quarter of 2024. Diluted EPS was $1.28, compared to $1.07 in the fourth quarter and $1.08 in the first quarter of 2024.
Shareholders’ equity was $2.3 billion at quarter end and book value per share was $29.65. Book value per share excluding the impact of net unrealized gains and losses in the investment portfolio was $30.85, up 4% compared to $29.80 in the fourth quarter and 17% compared to $26.42 in the first quarter of 2024.
Annualized return on equity for the quarter was 18.1%, compared to 15.6% in the fourth quarter and 18.2% in the first quarter of 2024.
At quarter-end, total PMIERs available assets were $3.2 billion and net risk-based required assets were $1.9 billion.

	*Quarter Ended*			*Quarter Ended*			*Quarter Ended*			*Change*⁽¹⁾		*Change*⁽¹⁾
	*3/31/2025*			*12/31/2024*			*3/31/2024*			*Q/Q*		*Y/Y*
INSURANCE METRICS ($billions)
Primary Insurance-in-Force	$	211.3		$	210.2		$	199.4		1	%	6	%
New Insurance Written – NIW		9.2			11.9			9.4		(23)	%	(2)%

FINANCIAL HIGHLIGHTS (Unaudited, $millions, except per share amounts)
Net Premiums Earned	$	149.4		$	143.5		$	136.7		4	%	9	%
Net Investment Income		23.7			22.7			19.4		4	%	22	%
Insurance Claims and Claim Expenses		4.5			17.3			3.7		(74)	%	21	%
Underwriting and Operating Expenses		30.2			31.1			29.8		(3)	%	1	%
Net Income		102.6			86.2			89.0		19	%	15	%
Diluted EPS	$	1.28		$	1.07		$	1.08		20	%	18	%
Book Value per Share (excluding net unrealized gains and losses)⁽²⁾	$	30.85		$	29.80		$	26.42		4	%	17	%
Loss Ratio		3.0	%		12.0	%		2.7	%
Expense Ratio		20.2	%		21.7	%		21.8	%

(1) Percentages may not be replicated based on the rounded figures presented in the table. (2) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.

Conference Call and Webcast Details

The company will hold a conference call, which will be webcast live today, April 29, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The webcast will be available on the company’s website, www.nationalmi.com, in the “Investor Relations” section. The conference call can also be accessed by dialing (844) 481-2708 in the U.S., or (412) 317-0664 internationally, by referencing NMI Holdings, Inc.

About NMI Holdings, Inc.

NMI Holdings, Inc. (NASDAQ: NMIH), is the parent company of National Mortgage Insurance Corporation (National MI), a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower’s default. To learn more, please visit www.nationalmi.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”). The PSLRA provides a “safe harbor” for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believe,” “can,” “could,” “may,” “predict,” “assume,” “potential,” “should,” “will,” “estimate,” “perceive,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and could cause actual results to differ materially from those expressed in them. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: changes in general economic, market and political conditions and policies (including changes in interest rates and inflation) and investment results or other conditions that affect the U.S. housing market or the U.S. markets for home mortgages, mortgage insurance, reinsurance and credit risk transfer markets, including the risk related to geopolitical instability, inflation, an economic downturn (including any decline in home prices) or recession, and their impacts on our business, operations and personnel; changes in the charters, business practices, policies, pricing or priorities of Fannie Mae and Freddie Mac (collectively, the GSEs), which may include decisions that have the impact of decreasing or discontinuing the use of mortgage insurance as credit enhancement generally, or with first time homebuyers or on very high loan-to-value mortgages; or changes in the direction of housing policy objectives of the Federal Housing Finance Agency (“FHFA”), such as the FHFA’s priority to increase the accessibility to and affordability of homeownership for low-and-moderate income borrowers and underrepresented communities; our ability to remain an eligible mortgage insurer under the private mortgage insurer eligibility requirements (“PMIERs”) and other requirements imposed by the GSEs, which they may change at any time; retention of our existing certificates of authority in each state and the District of Columbia (“D.C.”) and our ability to remain a mortgage insurer in good standing in each state and D.C.; our future profitability, liquidity and capital resources; actions of existing competitors, including other private mortgage insurers and government mortgage insurers such as the Federal Housing Administration, the U.S. Department of Agriculture’s Rural Housing Service and the U.S. Department of Veterans Affairs, and potential market entry by new competitors or consolidation of existing competitors; adoption of new or changes to existing laws, rules and regulations that impact our business or financial condition directly or the mortgage insurance industry generally or their enforcement and implementation by regulators, including the implementation of the final rules defining and/or concerning “Qualified Mortgage” and “Qualified Residential Mortgage”; U.S. federal tax reform and other potential changes in tax law and their impact on us and our operations; legislative or regulatory changes to the GSEs’ role in the secondary mortgage market or other changes that could affect the residential mortgage industry generally or mortgage insurance industry in particular; potential legal and regulatory claims, investigations, actions, audits or inquiries that could result in adverse judgements, settlements, fines or other reliefs that could require significant expenditures or have other negative effects on our business; our ability to successfully execute and implement our capital plans, including our ability to access the equity, credit and reinsurance markets and to enter into, and receive approval of, reinsurance arrangements on terms and conditions that are acceptable to us, the GSEs and our regulators; lenders, the GSEs, or other market participants seeking alternatives to private mortgage insurance; our ability to implement our business strategy, including our ability to write mortgage insurance on high quality low down payment residential mortgage loans, implement successfully and on a timely basis, complex infrastructure, systems, procedures, and internal controls to support our business and regulatory and reporting requirements of the insurance industry; our ability to attract and retain a diverse customer base, including the largest mortgage originators; failure of risk management or pricing or investment strategies; decrease in the length of time our insurance policies are in force; emergence of unexpected claim and coverage issues, including claims exceeding our reserves or amounts we had expected to experience; potential adverse impacts arising from natural disasters including, with respect to affected areas, a decline in new business, adverse effects on home prices, and an increase in notices of default on insured mortgages; climate risk and efforts to manage or regulate climate risk by government agencies could affect our business and operations; potential adverse impacts arising from the occurrence of any man-made disasters or public health emergencies, including pandemics; the inability of our counter-parties, including third party reinsurers, to meet their obligations to us; failure to maintain, improve and continue to develop necessary information technology systems or the failure of technology providers to perform; effectiveness and security of our information technology systems and digital products and services, including the risks these systems, products or services may fail to operate as expected or planned, or expose us to cybersecurity or third-party risks (including the exposure of our confidential customer and other information); and ability to recruit, train and retain key personnel. These risks and uncertainties also include, but are not limited to, those set forth under the heading “Risk Factors” detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2024, as subsequently updated through other reports we file with the SEC. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We caution you not to place undue reliance on any forward-looking statement, which speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information, future events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law.

Use of Non-GAAP Financial Measures

We believe the use of the non-GAAP measures of adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) enhances the comparability of our fundamental financial performance between periods, and provides relevant information to investors. These non-GAAP financial measures align with the way the company’s business performance is evaluated by management. These measures are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. These measures have been presented to increase transparency and enhance the comparability of our fundamental operating trends across periods. Other companies may calculate these measures differently; their measures may not be comparable to those we calculate and present.

Adjusted income before tax is defined as GAAP income before tax, excluding the pre-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred.

Adjusted net income is defined as GAAP net income, excluding the after-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred. Adjustments to components of pre-tax income are tax effected using the applicable federal statutory tax rate for the respective periods.

Adjusted diluted EPS is defined as adjusted net income divided by adjusted weighted average diluted shares outstanding. Adjusted weighted average diluted shares outstanding is defined as weighted average diluted shares outstanding, adjusted for changes in the dilutive effect of non-vested shares that would otherwise have occurred had GAAP net income been calculated in accordance with adjusted net income. There will be no adjustment to weighted average diluted shares outstanding in the periods that non-vested shares are anti-dilutive under GAAP.

Adjusted return on equity is calculated by dividing adjusted net income on an annualized basis by the average shareholders’ equity for the period.

Adjusted expense ratio is defined as GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions, divided by net premiums earned.

Adjusted combined ratio is defined as the total of GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions and insurance claims and claims expenses, divided by net premiums earned.

Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on investments, divided by shares outstanding.

Although adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items: (1) are not viewed as part of the operating performance of our primary activities; or (2) are impacted by market, economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, and the reasons for their treatment, are described below.

(1) Net realized investment gains and losses. The recognition of net realized investment gains or losses can vary significantly across periods as the timing is highly discretionary and is influenced by factors such as market opportunities, tax and capital profile, and overall market cycles that do not reflect our current period operating results.

(2) Capital markets transaction costs. Capital markets transaction costs result from activities that are undertaken to improve our debt profile or enhance our capital position through activities such as debt refinancing and capital markets reinsurance transactions that may vary in their size and timing due to factors such as market opportunities, tax and capital profile, and overall market cycles.

(3) Other infrequent, unusual or non-operating items. Items that are the result of unforeseen or uncommon events, and are not expected to recur with frequency in the future. Identification and exclusion of these items provides clarity about the impact special or rare occurrences may have on our current financial performance. Past adjustments under this category include infrequent, unusual or non-operating adjustments related to severance, restricted stock modification and other expenses incurred in connection with the CEO transition announced in September 2021 and the effects of the release of the valuation allowance recorded against our net federal and certain state net deferred tax assets in 2016 and the re-measurement of our net deferred tax assets in connection with tax reform in 2017. We believe such items are infrequent or non-recurring in nature, and are not indicative of the performance of, or ongoing trends in, our primary operating activities or business.

(4) Net unrealized gains and losses on investments. The recognition of net unrealized gains or losses on investment can vary significantly across periods and is influenced by factors such as interest rate movement, overall market and economic conditions, and tax and capital profiles. These valuation adjustments may not necessarily result in economic gains or losses and not reflective of ongoing operations.

Investor Contact
Gregory Epps
Senior Manager, Investor Relations and Treasury
Investor.relations@nationalmi.com

Consolidated statements of operations and comprehensive income (unaudited)	For the three months ended March 31,
		2025			2024
	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	149,366		$	136,657
Net investment income		23,686			19,436
Net realized investment gains		24			—
Other revenues		170			160
Total revenues		173,246			156,253
Expenses
Insurance claims and claim expenses		4,478			3,694
Underwriting and operating expenses		30,175			29,815
Service expenses		116			137
Interest expense		7,106			8,040
Total expenses		41,875			41,686

Income before income taxes		131,371			114,567
Income tax expense		28,812			25,517
Net income	$	102,559		$	89,050

Earnings per share
Basic	$	1.31		$	1.10
Diluted	$	1.28		$	1.08

Weighted average common shares outstanding
Basic		78,407			80,726
Diluted		79,858			82,099

Loss ratio⁽¹⁾		3.0	%		2.7	%
Expense ratio⁽²⁾		20.2	%		21.8	%
Combined ratio		23.2	%		24.5	%

Net income	$	102,559		$	89,050
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) in accumulated other comprehensive loss, net of tax expense (benefit) of $8,186 and $(2,729) for the quarters ended March 31, 2025 and 2024, respectively		30,795			(9,905	)
Reclassification adjustment for realized gains included in net income, net of tax expense of $5 for the quarter ended March 31, 2025		(19	)		—
Other comprehensive income (loss), net of tax		30,776			(9,905	)
Comprehensive income	$	133,335		$	79,145

(1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned. (2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.

Consolidated balance sheets (unaudited)	March 31, 2025			December 31, 2024
Assets	(In Thousands, except for share data)
Fixed maturities, available-for-sale, at fair value (amortized cost of $2,923,088 and $2,876,343 as of March 31, 2025 and December 31, 2024, respectively)	$	2,809,247		$	2,723,541
Cash and cash equivalents (including restricted cash of $90 as of December 31, 2024)		74,209			54,308
Premiums receivable, net		84,153			82,804
Accrued investment income		23,641			22,386
Deferred policy acquisition costs, net		64,013			64,327
Software and equipment, net		24,960			25,681
Intangible assets and goodwill		3,634			3,634
Reinsurance recoverable		31,379			32,260
Prepaid federal income taxes		322,175			322,175
Other assets		18,785			18,857
Total assets	$	3,456,196		$	3,349,973

Liabilities
Debt	$	415,606		$	415,146
Unearned premiums		59,176			65,217
Accounts payable and accrued expenses		78,937			103,164
Reserve for insurance claims and claim expenses		151,847			152,071
Deferred tax liability, net		418,916			386,192
Other liabilities		10,143			10,751
Total liabilities		1,134,625			1,132,541

Shareholders’ equity
Common stock – $0.01 par value; 88,321,226 shares issued and 78,301,469 shares outstanding as of March 31, 2025 and 87,902,626 shares issued and 78,600,726 shares outstanding as of December 31, 2024 (250,000,000 shares authorized)		883			879
Additional paid-in capital		1,001,545			1,004,692
Treasury Stock, at cost: 10,019,757 and 9,301,900 common shares as of March 31, 2025 and December 31, 2024, respectively		(272,647	)		(246,594	)
Accumulated other comprehensive loss, net of tax		(94,028	)		(124,804	)
Retained earnings		1,685,818			1,583,259
Total shareholders’ equity		2,321,571			2,217,432
Total liabilities and shareholders’ equity	$	3,456,196		$	3,349,973

Non-GAAP Financial Measure Reconciliations (unaudited)
	As of and for the three months ended
	3/31/2025			12/31/2024			3/31/2024
As Reported	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	149,366		$	143,520		$	136,657
Net investment income		23,686			22,718			19,436
Net realized investment gains		24			33			—
Other revenues		170			233			160
Total revenues		173,246			166,504			156,253
Expenses
Insurance claims and claim expenses		4,478			17,253			3,694
Underwriting and operating expenses		30,175			31,092			29,815
Service expenses		116			184			137
Interest expense		7,106			7,102			8,040
Total expenses		41,875			55,631			41,686

Income before income taxes		131,371			110,873			114,567
Income tax expense		28,812			24,706			25,517
Net income	$	102,559		$	86,167		$	89,050

Adjustments:
Net realized investment gains		(24	)		(33	)		—
Adjusted income before taxes		131,347			110,840			114,567

Income tax benefit on adjustments⁽¹⁾		5			7			—
Adjusted net income	$	102,540		$	86,141		$	89,050

Weighted average diluted shares outstanding		79,858			80,623			82,099

Diluted EPS	$	1.28		$	1.07		$	1.08
Adjusted diluted EPS	$	1.28		$	1.07		$	1.08

Return on equity		18.1	%		15.6	%		18.2	%
Adjusted return on equity		18.1	%		15.6	%		18.2	%

Expense ratio⁽²⁾		20.2	%		21.7	%		21.8	%
Adjusted expense ratio⁽³⁾		20.2	%		21.7	%		21.8	%

Combined ratio⁽⁴⁾		23.2	%		33.7	%		24.5	%
Adjusted combined ratio⁽⁵⁾		23.2	%		33.7	%		24.5	%

Book value per share⁽⁶⁾	$	29.65		$	28.21		$	24.56
Book value per share (excluding net unrealized gains and losses)⁽⁷⁾	$	30.85		$	29.80		$	26.42

(1) Marginal tax impact of non-GAAP adjustments is calculated based on our statutory U.S. federal corporate income tax rate of 21%, except for those items that are not eligible for an income tax deduction. (2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned. (3) Adjusted expense ratio is calculated by dividing adjusted underwriting and operating expense (underwriting and operating expenses excluding costs related to capital markets reinsurance transactions) by net premiums earned. (4) Combined ratio is calculated by dividing the total of underwriting and operating expenses and insurance claims and claim expenses by net premiums earned. (5) Adjusted combined ratio is calculated by dividing the total of adjusted underwriting and operating expenses (underwriting and operating expenses excluding costs related to capital market reinsurance transaction) and insurance claims and claim expenses by net premiums earned. (6) Book value per share is calculated by dividing total shareholders’ equity by shares outstanding. (7) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.

Historical Quarterly Data		2025			2024
	March 31			December 31			September 30			June 30			March 31
	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	149,366		$	143,520		$	143,343		$	141,168		$	136,657
Net investment income		23,686			22,718			22,474			20,688			19,436
Net realized investment gains (losses)		24			33			(10	)		—			—
Other revenues		170			233			285			266			160
Total revenues		173,246			166,504			166,092			162,122			156,253
Expenses
Insurance claims and claim expenses		4,478			17,253			10,321			276			3,694
Underwriting and operating expenses		30,175			31,092			29,160			28,330			29,815
Service expenses		116			184			208			194			137
Interest expense		7,106			7,102			7,076			14,678			8,040
Total expenses		41,875			55,631			46,765			43,478			41,686

Income before income taxes		131,371			110,873			119,327			118,644			114,567
Income tax expense		28,812			24,706			26,517			26,565			25,517
Net income	$	102,559		$	86,167		$	92,810		$	92,079		$	89,050

Earnings per share
Basic	$	1.31		$	1.09		$	1.17		$	1.15		$	1.10
Diluted	$	1.28		$	1.07		$	1.15		$	1.13		$	1.08

Weighted average common shares outstanding
Basic		78,407			78,997			79,549			80,117			80,726
Diluted		79,858			80,623			81,045			81,300			82,099

Other data
Loss ratio⁽¹⁾		3.0	%		12.0	%		7.2	%		0.2	%		2.7	%
Expense ratio⁽²⁾		20.2	%		21.7	%		20.3	%		20.1	%		21.8	%
Combined ratio		23.2	%		33.7	%		27.5	%		20.3	%		24.5	%

(1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned. (2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.

Portfolio Statistics

The table below highlights trends in our primary portfolio as of the date and for the periods indicated.

Primary portfolio trends	As of and for the three months ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	($ Values In Millions, except as noted below)
New insurance written (NIW)	$	9,221		$	11,925		$	12,218		$	12,503		$	9,398
New risk written		2,428			3,134			3,245			3,335			2,486
Insurance-in-force (IIF)⁽¹⁾		211,308			210,183			207,538			203,501			199,373
Risk-in-force (RIF)⁽¹⁾		56,515			56,113			55,253			53,956			52,610
Policies in force (count)⁽¹⁾		661,490			659,567			654,374			645,276			635,662
Average loan size($ value in thousands)⁽¹⁾	$	319		$	319		$	317		$	315		$	314
Coverage percentage⁽²⁾		26.7	%		26.7	%		26.6	%		26.5	%		26.4	%
Loans in default (count)⁽¹⁾		6,859			6,642			5,712			4,904			5,109
Default rate⁽¹⁾		1.04	%		1.01	%		0.87	%		0.76	%		0.80	%
Risk-in-force on defaulted loans⁽¹⁾	$	567		$	545		$	468		$	401		$	414
Average net premium yield⁽³⁾		0.28	%		0.27	%		0.28	%		0.28	%		0.28	%
Earnings from cancellations	$	0.6		$	0.8		$	0.8		$	1.0		$	0.6
Annual persistency⁽⁴⁾		84.3	%		84.6	%		85.5	%		85.4	%		85.8	%
Quarterly run-off⁽⁵⁾		3.9	%		4.5	%		4.0	%		4.2	%		3.6	%

(1) Reported as of the end of the period. (2) Calculated as end of period RIF divided by end of period IIF. (3) Calculated as net premiums earned, divided by average primary IIF for the period, annualized. (4) Defined as the percentage of IIF that remains on our books after a given twelve-month period. (5) Defined as the percentage of IIF that is no longer on our books after a given three-month period.

NIW, IIF and Premiums

The tables below present NIW and primary IIF, as of the dates and for the periods indicated.

NIW	For the three months ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
	(In Millions)
Monthly	$	9,049	$	11,688	$	11,978	$	12,288	$	9,175
Single		172		237		240		215		223
Total	$	9,221	$	11,925	$	12,218	$	12,503	$	9,398

Primary IIF	As of
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
	(In Millions)
Monthly	$	193,856	$	192,228	$	189,241	$	184,862	$	180,343
Single		17,452		17,955		18,297		18,639		19,030
Total	$	211,308	$	210,183	$	207,538	$	203,501	$	199,373

The following table presents the amounts related to the company’s quota-share reinsurance transactions (the 2016 QSR Transaction, 2018 QSR Transaction, 2020 QSR Transaction, 2021 QSR Transaction, 2022 QSR Transaction, 2022 Seasoned QSR Transaction, 2023 QSR Transaction, 2024 QSR Transaction, and 2025 QSR Transaction and collectively, the QSR Transactions), insurance-linked note transactions (the 2021-1 ILN Transaction, and 2021-2 ILN Transaction and collectively, the ILN Transactions), and traditional reinsurance transactions (the 2022-1 XOL Transaction, 2022-2 XOL Transaction, 2022-3 XOL Transaction, 2023-1 XOL Transaction, 2023-2 XOL Transaction, 2024 XOL Transaction, and 2025 XOL Transaction and collectively, the XOL Transactions) for the periods indicated.

	For the three months ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(In Thousands)
The QSR Transactions
Ceded risk-in-force	$	12,888,870		$	13,024,200		$	12,968,039		$	12,815,434		$	12,669,207
Ceded premiums earned		(41,011	)		(41,596	)		(41,761	)		(41,555	)		(41,269	)
Ceded claims and claim expenses (benefits)		523			4,075			2,449			(138	)		659
Ceding commission earned		9,768			9,997			10,152			10,222			10,292
Profit commission		23,398			20,149			21,883			24,351			23,407
The ILN Transactions⁽¹⁾
Ceded premiums	$	(3,311	)	$	(4,217	)	$	(4,302	)	$	(5,858	)	$	(5,976	)
The XOL Transactions
Ceded Premiums	$	(10,168	)	$	(9,969	)	$	(9,760	)	$	(9,403	)	$	(9,223	)

(1) Effective July 25, 2024 and December 27, 2024, NMIC exercised its optional termination rights to terminate and commute its previously outstanding excess-of-loss reinsurance agreements with Oaktown Re III Ltd. and Oaktown Re V Ltd., respectively. In connection with the terminations and commutations, the insurance-linked notes issued by Oaktown Re III Ltd. and Oaktown Re V Ltd. were redeemed in full with a distribution of remaining collateral assets.

The tables below present our total NIW by FICO, loan-to-value (LTV) ratio, and purchase/refinance mix for the periods indicated.

NIW by FICO	For the three months ended
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
>= 760	$	4,971	$	6,508	$	4,888
740-759		1,753		2,090		1,797
720-739		1,177		1,621		1,220
700-719		665		890		780
680-699		413		575		530
<=679		242		241		183
Total	$	9,221	$	11,925	$	9,398
Weighted average FICO		758		758		757

NIW by LTV	For the three months ended
	March 31, 2025			December 31, 2024			March 31, 2024
	(In Millions)
95.01% and above	$	1,147		$	1,510		$	1,062
90.01% to 95.00%		4,274			5,370			4,414
85.01% to 90.00%		2,751			3,740			2,931
85.00% and below		1,049			1,305			991
Total	$	9,221		$	11,925		$	9,398
Weighted average LTV		92.2	%		92.1	%		92.3	%

NIW by purchase/refinance mix	For the three months ended
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
Purchase	$	8,822	$	10,799	$	9,157
Refinance		399		1,126		241
Total	$	9,221	$	11,925	$	9,398

The table below presents a summary of our primary IIF and RIF by book year as of March 31, 2025.

Primary IIF and RIF	As of March 31, 2025
	IIF		RIF
Book Year	(In Millions)
2025	$	9,152	$	2,409
2024		42,379		11,242
2023		33,286		8,789
2022		46,203		12,356
2021		48,162		13,049
2020 and before		32,126		8,670
Total	$	211,308	$	56,515

The tables below present our total primary IIF and RIF by FICO and LTV, and total primary RIF by loan type as of the dates indicated.

Primary IIF by FICO	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
>= 760	$	106,004	$	105,315	$	99,195
740-759		37,716		37,321		35,416
720-739		29,430		29,343		28,033
700-719		19,737		19,766		18,904
680-699		13,324		13,374		13,002
<=679		5,097		5,064		4,823
Total	$	211,308	$	210,183	$	199,373

Primary RIF by FICO	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
>= 760	$	28,117	$	27,883	$	25,935
740-759		10,132		10,006		9,392
720-739		7,966		7,926		7,484
700-719		5,384		5,383		5,089
680-699		3,610		3,615		3,479
<=679		1,306		1,300		1,231
Total	$	56,515	$	56,113	$	52,610

Primary IIF by LTV	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
95.01% and above	$	24,167	$	23,555	$	20,277
90.01% to 95.00%		104,312		103,472		97,028
85.01% to 90.00%		64,298		64,290		61,169
85.00% and below		18,531		18,866		20,899
Total	$	211,308	$	210,183	$	199,373

Primary RIF by LTV	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
95.01% and above	$	7,546	$	7,345	$	6,275
90.01% to 95.00%		30,804		30,563		28,663
85.01% to 90.00%		15,957		15,956		15,174
85.00% and below		2,208		2,249		2,498
Total	$	56,515	$	56,113	$	52,610

Primary RIF by Loan Type	As of
	March 31, 2025		December 31, 2024		March 31, 2024
Fixed	98	%	98	%	98	%
Adjustable rate mortgages:
Less than five years	—		—		—
Five years and longer	2		2		2
Total	100	%	100	%	100	%

The table below presents a summary of the change in total primary IIF for the dates and periods indicated.

Primary IIF	As of and for the three months ended
	March 31, 2025			December 31, 2024			March 31, 2024
	(In Millions)
IIF, beginning of period	$	210,183		$	207,538		$	197,029
NIW		9,221			11,925			9,398
Cancellations, principal repayments and other reductions		(8,096	)		(9,280	)		(7,054	)
IIF, end of period	$	211,308		$	210,183		$	199,373

Geographic Dispersion

The following table shows the distribution by state of our primary RIF as of the periods indicated.

Top 10 primary RIF by state	As of
	March 31, 2025		December 31, 2024		March 31, 2024
California	10.1	%	10.1	%	10.2	%
Texas	8.5		8.6		8.8
Florida	7.3		7.3		7.5
Georgia	4.1		4.1		4.2
Washington	3.9		3.9		3.9
Illinois	3.8		3.8		3.9
Virginia	3.7		3.7		3.9
Pennsylvania	3.4		3.4		3.4
Ohio	3.3		3.3		3.0
North Carolina	3.2		3.2		3.1
Total	51.3	%	51.4	%	51.9	%

The table below presents selected primary portfolio statistics, by book year, as of March 31, 2025.

	As of March 31, 2025
Book Year	Original Insurance Written		Remaining Insurance in Force		% Remaining of Original Insurance		Policies Ever in Force	Number of Policies in Force	Number of Loans in Default	# of Claims Paid	Incurred Loss Ratio (Inception to Date)⁽¹⁾		Cumulative Default Rate⁽²⁾		Current default rate⁽³⁾
	($ Values In Millions)
2016 and prior	$	37,222	$	2,133	6	%	151,615	11,572	237	398	2.1	%	0.4	%	2.0	%
2017		21,582		1,753	8	%	85,897	10,007	263	189	1.8	%	0.5	%	2.6	%
2018		27,295		2,306	8	%	104,043	12,534	403	191	2.6	%	0.6	%	3.2	%
2019		45,141		5,923	13	%	148,423	26,358	509	99	2.1	%	0.4	%	1.9	%
2020		62,702		20,011	32	%	186,174	70,620	575	57	1.3	%	0.3	%	0.8	%
2021		85,574		48,162	56	%	257,972	160,946	1,704	95	3.3	%	0.7	%	1.1	%
2022		58,734		46,203	79	%	163,281	135,610	2,014	112	16.2	%	1.3	%	1.5	%
2023		40,473		33,286	82	%	111,994	96,394	836	17	14.0	%	0.8	%	0.9	%
2024		46,044		42,379	92	%	120,747	113,636	318	—	7.9	%	0.3	%	0.3	%
2025		9,221		9,152	99	%	23,956	23,813	—	—	—	%	—	%	—	%
Total	$	433,988	$	211,308			1,354,102	661,490	6,859	1,158

(1) Calculated as total claims incurred (paid and reserved) divided by cumulative premiums earned, net of reinsurance. (2) Calculated as the sum of the number of claims paid ever to date and number of loans in default divided by policies ever in force. (3) Calculated as the number of loans in default divided by number of policies in force.

The following table provides a reconciliation of the beginning and ending reserve balances for insurance claims and claim expenses:

	For the three months ended March 31,
		2025			2024
	(In Thousands)
Beginning balance	$	152,071		$	123,974
Less reinsurance recoverables⁽¹⁾		(32,260	)		(27,514	)
Beginning balance, net of reinsurance recoverables		119,811			96,460

Add claims incurred:
Claims and claim expenses incurred:
Current year⁽²⁾		34,559			32,976
Prior years⁽³⁾		(30,081	)		(29,282	)
Total claims and claim expenses incurred		4,478			3,694

Less claims paid:
Claims and claim expenses paid:
Current year⁽²⁾		—			—
Prior years⁽³⁾		4,076			852
Reinsurance terminations⁽⁴⁾		(255	)		—
Total claims and claim expenses paid		3,821			852

Reserve at end of period, net of reinsurance recoverables		120,468			99,302
Add reinsurance recoverables⁽¹⁾		31,379			27,880
Ending balance	$	151,847		$	127,182

(1) Related to ceded losses recoverable under the QSR Transactions. (2) Related to insured loans with their most recent defaults occurring in the current year. For example, if a loan defaulted in a prior year and subsequently cured and later re-defaulted in the current year, the default would be included in the current year. Amounts are presented net of reinsurance and included $25.9 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the three months ended March 31, 2025 and $25.9 million attributed to net case reserves and $6.6 million attributed to net IBNR reserves for the three months ended March 31, 2024. (3) Related to insured loans with defaults occurring in prior years, which have been continuously in default before the start of the current year. Amounts are presented net of reinsurance and included $21.8 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the three months ended March 31, 2025 and $22.4 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the three months ended March 31, 2024. (4) Represents the settlement of reinsurance recoverables in conjunction with the termination of one reinsurer under the 2016, 2018 and 2021 QSR Transactions by mutual agreement on a cut-off basis with no termination fee.

The following table provides a reconciliation of the beginning and ending count of loans in default:

	For the three months ended March 31,
	2025		2024
Beginning default inventory	6,642		5,099
Plus: new defaults	2,421		1,876
Less: cures	(2,094	)	(1,817	)
Less: claims paid	(95	)	(42	)
Less: rescission and claims denied	(15	)	(7	)
Ending default inventory	6,859		5,109

The following table provides details of our claims paid, before giving effect to claims ceded under the QSR Transactions, for the periods indicated:

	For the three months ended March 31,
		2025			2024
	($ Values In Thousands)
Number of claims paid⁽¹⁾		95			42
Total amount paid for claims	$	5,225		$	1,145
Average amount paid per claim	$	55		$	27
Severity⁽²⁾		69	%		54	%

(1) Count includes 20 and 16 claims settled without payment during the three months ended March 31, 2025 and 2024, respectively. (2) Severity represents the total amount of claims paid including claim expenses divided by the related RIF on the loan at the time the claim is perfected, and is calculated including claims settled without payment.

The following table shows our average reserve per default, before giving effect to reserves ceded under the QSR Transactions, as of the dates indicated:

	As of March 31,
Average reserve per default:		2025		2024
	(In Thousands)
Case⁽¹⁾	$	20.3	$	22.9
IBNR⁽¹⁾⁽²⁾		1.8		2.0
Total	$	22.1	$	24.9

(1) Defined as the gross reserve per insured loan in default. (2) Amount includes claims adjustment expenses.

The following table provides a comparison of the PMIERs available assets and net risk-based required asset amount as reported by NMIC as of the dates indicated:

	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Thousands)
Available assets	$	3,230,653	$	3,108,211	$	2,821,803
Net risk-based required assets		1,867,414		1,828,807		1,561,655

The MIL Network –

April 30, 2025

MIL-OSI: EXL Reports 2025 First Quarter Results

Source: GlobeNewswire (MIL-OSI)

2025 First Quarter Revenue of $501.0 Million, up 14.8% year-over-year
Q1 Diluted EPS (GAAP) ⁽¹⁾of $0.40, up 38.3% from $0.29 in Q1 of 2024
Q1 Adjusted Diluted EPS (Non-GAAP) ⁽¹⁾of $0.48, up 26.9% from $0.38 in Q1 of 2024

NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) — ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter ended March 31, 2025.

Chairman and Chief Executive Officer Rohit Kapoor said, “We are pleased with our first quarter results and strong start to the year, as we delivered revenue and adjusted diluted EPS growth of 15% and 27% respectively. Our strong business momentum underscores the successful execution of our differentiated data and AI-led strategy and demonstrates the enduring resilience and adaptability of EXL’s business model.”

Chief Financial Officer Maurizio Nicolelli said, “While we remain prudent in our outlook given the increasing level of macro-economic uncertainty, we are increasing our revenue guidance for the year, based on our business momentum and more favorable currency exchange rates. We now expect revenue to be in the range of $2.035 billion to $2.065 billion, up from our prior guidance of $2.025 billion to $2.060 billion. This represents 11% to 12% year-over-year growth on a reported basis, or 11% to 13% on a constant currency basis. We continue to expect our adjusted diluted earnings per share for 2025 to be in the range of $1.83 to $1.89, representing an 11% to 14% increase over 2024, as we continue to accelerate our data and AI investments to generate future growth.”

^{______________________________________________________________}

Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.

Financial Highlights: First Quarter 2025

Revenue for the quarter ended March 31, 2025, increased to $501.0 million compared to $436.5 million for the first quarter of 2024, an increase of 14.8% on a reported basis and 15.1% on a constant currency basis. Revenue increased by 4.1% sequentially on a reported basis and 4.3% on a constant currency basis, from the fourth quarter of 2024.

	Revenue				Gross Margin
	Three months ended				Three months ended
Reportable Segments ⁽¹⁾	March 31, 2025		March 31, 2024		March 31, 2025		March 31, 2024
	(dollars in millions)
Insurance	$	172.0	$	158.3	36.6	%	33.8	%
Healthcare and Life Sciences		125.6		100.7	43.9	%	45.3	%
Banking, Capital Markets and Diversified Industries		117.7		103.2	37.3	%	36.1	%
International Growth Markets		85.7		74.3	36.6	%	35.9	%
Total Revenue, net	$	501.0	$	436.5	38.6	%	37.4	%

⁽¹⁾ In the first quarter of 2025, the Company implemented operational and structural changes to accelerate the execution of its data and AI-led strategy. Under the new structure, the Company reports its financial performance based on new segments presented in the table above, and as described in more detail in its Quarterly Report on Form 10-Q for the three months ended March 31, 2025, that is being filed with the SEC. In conjunction with the new reporting structure, the Company has recast prior period amounts, wherever applicable, to conform to the way the Company internally manages and monitors segment performance.

Operating income margin for the quarter ended March 31, 2025 was 15.7%, compared to 14.1% for the first quarter of 2024 and 14.8% for the fourth quarter of 2024. Adjusted operating income margin for the quarter ended March 31, 2025 was 20.1%, compared to 18.9% for the first quarter of 2024 and 18.8% for the fourth quarter of 2024.
Diluted earnings per share for the quarter ended March 31, 2025 was $0.40, compared to $0.29 for the first quarter of 2024 and $0.31 for the fourth quarter of 2024. Adjusted diluted earnings per share for the quarter ended March 31, 2025 was $0.48, compared to $0.38 for the first quarter of 2024 and $0.44 for the fourth quarter of 2024.

Business Highlights: First Quarter 2025

Won 10 new clients in the first quarter of 2025.
- Named a Leader in four categories in the ISG Provider Lens™ Insurance Services 2024 report. Earning top honors in the North American Life & Retirement, Property & Casualty, Life & Retirement TPA Insurance Services, and Insurance IT Services.
- Named a Leader and a Star Performer in Everest Group’s Life and Annuities Insurance Business Process Services and Third-Party Administrator (TPA) PEAK Matrix® Assessment 2025.
- Recognized as part of Newsweek’s America’s Most Responsible Companies 2025, Forbes’ Most Trusted Companies in America 2025, USA Today’s America’s Climate Leaders 2025, and The Financial Times’ Best Employers Asia-Pacific 2025.

2025 Guidance
Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 85.5, U.K. pound sterling to U.S. dollar exchange rate of 1.30, U.S. dollar to the Philippine peso exchange rate of 57.0 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2025:

Revenue of $2.035 billion to $2.065 billion, representing an increase of 11% to 12% on a reported basis, and 11% to 13% on a constant currency basis from 2024; and
Adjusted diluted earnings per share of $1.83 to $1.89, representing an increase of 11% to 14% from 2024.

Conference Call

ExlService Holdings, Inc. will host a conference call on Wednesday, April 30, 2025 at 10:00 A.M. ET to discuss the Company’s quarterly operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

Please note that there is a new system to access the live call-in order to ask questions. To join the live call, please register here. A dial-in and unique PIN will be provided to join the call. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

About ExlService Holdings, Inc.
EXL (NASDAQ: EXLS) is a global data and artificial intelligence (“AI”) company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media and retail, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have more than 60,000 employees spanning six continents. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL’s operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management’s experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, rising interest rates, rising inflation and recessionary economic trends, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

EXLSERVICE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share amount and share count)

	Three months ended March 31,
		2025			2024
Revenues, net	$	501,019		$	436,507
Cost of revenues ⁽¹⁾		307,705			273,424
Gross profit ⁽¹⁾		193,314			163,083
Operating expenses:
General and administrative expenses		59,417			53,243
Selling and marketing expenses		41,925			35,970
Depreciation and amortization expense		13,557			12,346
Total operating expenses		114,899			101,559
Income from operations		78,415			61,524
Foreign exchange gain, net		1,192			359
Interest expense		(4,144	)		(3,291	)
Other income, net		4,703			3,952
Income before income tax expense and earnings from equity affiliates		80,166			62,544
Income tax expense		13,496			13,753
Income before earnings from equity affiliates		66,670			48,791
Loss from equity-method investment		(109	)		(28	)
Net income	$	66,561		$	48,763
Earnings per share:
Basic	$	0.41		$	0.30
Diluted	$	0.40		$	0.29
Weighted-average number of shares used in computing earnings per share:
Basic		162,490,179			165,082,387
Diluted		164,557,333			166,726,853

⁽¹⁾ Exclusive of depreciation and amortization expense.

EXLSERVICE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except per share amount and share count)

	As of
	March 31, 2025			December 31, 2024

Assets
Current assets:
Cash and cash equivalents	$	140,442		$	153,355
Short-term investments		190,978			187,223
Restricted cash		9,826			9,972
Accounts receivable, net		339,856			304,322
Other current assets		150,203			140,317
Total current assets		831,305			795,189
Property and equipment, net		107,148			101,837
Operating lease right-of-use assets		71,150			68,784
Restricted cash		8,210			8,071
Deferred tax assets, net		109,953			104,747
Goodwill		420,494			420,387
Other intangible assets, net		46,092			49,331
Long-term investments		20,134			13,972
Other assets		61,925			56,085
Total assets	$	1,676,411		$	1,618,403
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,648		$	5,884
Current portion of long-term borrowings		4,886			4,886
Deferred revenue		20,138			19,264
Accrued employee costs		63,575			129,994
Accrued expenses and other current liabilities		131,980			113,597
Current portion of operating lease liabilities		17,426			16,491
Total current liabilities		243,653			290,116
Long-term borrowings, less current portion		302,377			283,598
Operating lease liabilities, less current portion		61,408			59,851
Deferred tax liabilities, net		1,625			1,403
Other non-current liabilities		55,471			53,573
Total liabilities		664,534			688,541
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued		—			—
Common stock, $0.001 par value; 400,000,000 shares authorized, 207,758,497 shares issued and 162,683,343 shares outstanding as of March 31, 2025 and 206,510,587 shares issued and 161,801,212 shares outstanding as of December 31, 2024		207			206
Additional paid-in capital		609,592			588,583
Retained earnings		1,348,521			1,281,960
Accumulated other comprehensive loss		(142,787	)		(154,722	)
Total including shares held in treasury		1,815,533			1,716,027
Less: 45,075,154 shares as of March 31, 2025 and 44,709,375 shares as of December 31, 2024, held in treasury, at cost		(803,656	)		(786,165	)
Total Stockholders’ equity		1,011,877			929,862
Total liabilities and stockholders’ equity	$	1,676,411		$	1,618,403

EXLSERVICE HOLDINGS, INC.

Reconciliation of Adjusted Financial Measures to GAAP Measures

In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:

(i) Adjusted operating income and adjusted operating income margin;
(ii) Adjusted EBITDA and adjusted EBITDA margin;
(iii) Adjusted net income and adjusted diluted earnings per share; and
(iv) Revenue growth on constant currency basis.

These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, provision for litigation matters, effects of termination of leases, certain defined social security contributions, allowance for certain material expected credit losses, other acquisition-related expenses or benefits and effect of any non-recurring tax adjustments. Acquisition-related expenses or benefits include, changes in the fair value of contingent consideration, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits or losses. Our adjusted net income and adjusted diluted EPS also excludes the effects of income tax on the above pre-tax items, as applicable. The effects of income tax of each item is calculated by applying the statutory rate of the local tax regulations in the jurisdiction in which the item was incurred.

A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

EXL’s primary exchange rate exposure is with the Indian rupee, the Philippine peso, the U.K. pound sterling and the South African rand. The average exchange rate of the U.S. dollar against the Indian rupee increased from 83.12 during the quarter ended March 31, 2024 to 86.52 during the quarter ended March 31, 2025, representing a depreciation of 4.1% against the U.S. dollar. The average exchange rate of the U.S. dollar against the Philippine peso increased from 56.24 during the quarter ended March 31, 2024 to 57.86 during the quarter ended March 31, 2025, representing a depreciation of 2.9% against the U.S. dollar. The average exchange rate of the U.K. pound sterling against the U.S. dollar decreased from 1.27 during the quarter ended March 31, 2024 to 1.26 during the quarter ended March 31, 2025, representing a depreciation of 0.1% against the U.S. dollar. The average exchange rate of the U.S. dollar against the South African rand decreased from 18.96 during the quarter ended March 31, 2024 to 18.49 during the quarter ended March 31, 2025, representing an appreciation of 2.5% against the U.S. dollar.

The following table shows the reconciliation of these non-GAAP financial measures for the three months ended March 31, 2025 and March 31, 2024, and the three months ended December 31, 2024:

Reconciliation of Adjusted Operating Income and Adjusted EBITDA
(Amounts in thousands)

	Three months ended
	March 31,						December 31,
		2025			2024			2024
Net Income (GAAP)	$	66,561		$	48,763		$	50,672
add: Income tax expense		13,496			13,753			19,850
add/(subtract): Foreign exchange gain, net, interest expense, gain/(loss) from equity-method investment and other income/(loss), net		(1,642	)		(992	)		720
Income from operations (GAAP)	$	78,415		$	61,524		$	71,242
add: Stock-based compensation expense		19,187			17,852			15,479
add: Amortization of acquisition-related intangibles		3,246			3,080			4,024
Adjusted operating income (Non-GAAP)	$	100,848		$	82,456		$	90,745
Adjusted operating income margin as a % of Revenue (Non-GAAP)		20.1	%		18.9	%		18.8	%
add: Depreciation on long-lived assets		10,311			9,266			12,140
Adjusted EBITDA (Non-GAAP)	$	111,159		$	91,722		$	102,885
Adjusted EBITDA margin as a % of revenue (Non-GAAP)		22.2	%		21.0	%		21.4	%

Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share
(Amounts in thousands, except per share data)

	Three months ended
	March 31,						December 31,
		2025			2024			2024
Net income (GAAP)	$	66,561		$	48,763		$	50,672
add: Stock-based compensation expense		19,187			17,852			15,479
add: Amortization of acquisition-related intangibles		3,246			3,080			4,024
add/(subtract): Changes in fair value of contingent consideration		—			(589	)		—
add/(subtract): Other tax expense/(benefits) (a)		—			151			3,860
subtract: Tax impact on stock-based compensation expense (b)		(9,105	)		(5,358	)		(1,769	)
subtract: Tax impact on amortization of acquisition-related intangibles		(799	)		(766	)		(921	)
Adjusted net income (Non-GAAP)	$	79,090		$	63,133		$	71,345
Adjusted diluted earnings per share (Non-GAAP)	$	0.48		$	0.38		$	0.44

(a) To exclude other tax expenses/(benefits), primarily related to certain deferred tax assets and liabilities.

(b) Tax impact includes $14,526 and $7,523 during the three months ended March 31, 2025 and 2024 respectively, and $500 during the three months ended December 31, 2024, related to discrete benefit recognized in income tax expense in accordance with ASU No. 2016-09, Compensation – Stock Compensation.

Contacts:
Investor Relations
John Kristoff
Vice President, Investor Relations
+1 212 209 4613
ir@exlservice.com

Media – US
Keith Little
Assistant Vice President, Media Relations
+1 703 598 0980
media.relations@exlservice.com

This press release was published by a CLEAR® Verified individual.

The MIL Network –

April 30, 2025

MIL-OSI: Expand Energy Corporation Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

OKLAHOMA CITY, April 29, 2025 (GLOBE NEWSWIRE) — Expand Energy Corporation (NASDAQ: EXE) (“Expand Energy” or the “Company”) today reported first quarter 2025 financial and operating results.

Net cash provided by operating activities of $1,096 million
Net loss of $249 million, or $1.06 per fully diluted share; adjusted net income⁽¹⁾of $487 million, or $2.02 per share
Adjusted EBITDAX⁽¹⁾of $1,395 million
Produced approximately 6.79 Bcfe/d net (92% natural gas)
Added to the S&P 500, effective March 24, 2025
Upgraded to Investment Grade credit rating by Moody’s (Baa3); achieved uniform Investment Grade rating from all rating agencies
Quarterly base dividend of $0.575 per common share to be paid in June 2025, 17th straight quarter of paying a dividend
On track to capture approximately $400 million in 2025 synergies, with the total target of $500 million in annual synergies expected to be achieved by year end 2026

(1) Definitions of non-GAAP financial measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are included at the end of this news release.

“Overcoming market volatility requires a resilient financial foundation, a deep market-connected portfolio, and low cost, efficient operations, all hallmarks of our strategy,” said Nick Dell’Osso, Expand Energy’s President and Chief Executive Officer. “We continue to execute our business, utilizing our productive capacity to navigate today’s dynamic macro environment and be prepared to efficiently respond as market conditions change.”

Operations Update

Expand Energy operated an average of 11 rigs during the first quarter, drilling 46 wells and turning 89 wells in line, resulting in net production of approximately 6.79 Bcfe per day (92% natural gas). A detailed breakdown of first quarter production, capital expenditures and activity can be found in supplemental slides which have been posted at https://investors.expandenergy.com/events-presentations.

2025 Annual Synergy, Capital and Operating Outlook

In 2025, Expand Energy expects to run approximately 12 rigs and invest approximately $2.7 billion yielding an estimated daily production of approximately 7.1 Bcfe/d. The Company intends to build incremental productive capacity for an additional $300 million by exiting 2025 with approximately 15 rigs. This incremental capital investment positions the Company to efficiently grow production from a year-end 2025 exit rate of approximately 7.2 Bcfe/d to average approximately 7.5 Bcfe/d in 2026 should market conditions warrant.

Expand Energy is on track to capture its 2025 expected annual synergy target of approximately $400 million. The Company expects to achieve the full $500 million in annual synergies by year end 2026.

A detailed breakdown of 2025 annual synergy, capital, and operating outlook can be found in supplemental slides which have been posted at https://investors.expandenergy.com/events-presentations.

Shareholder Returns Update

Expand Energy enhanced its capital return framework in 2024 to more efficiently return cash to shareholders and reduce Net Debt. The Company plans to pay its quarterly base dividend of $0.575 per share on June 4, 2025 to shareholders of record at the close of business on May 15, 2025. The Company expects to allocate $500 million to Net Debt reduction in 2025, and at current market conditions, to have additional free cash flow available to allocate to the combination of variable dividends, share repurchases, and the balance sheet.

Conference Call Information

A conference call to discuss Expand Energy’s first quarter 2025 financial and operating results and 2025 outlook has been scheduled for 9 a.m. EDT on April 30, 2025. Participants can access the live webcast at https://edge.media-server.com/mmc/p/kn8j2wew/. Participants who would like to ask a question, can register at https://register-conf.media-server.com/register/BIb82422792483441f93f8794cbf385f7c, and will receive the dial-in info and a unique PIN to join the call. Links to the conference call will be provided at https://investors.expandenergy.com/. A replay will be available on the website following the call.

Financial Statements, Non-GAAP Financial Measures and 2025 Guidance and Outlook Projections

This news release contains the non-GAAP financial measures described below in the section titled “Non-GAAP Financial Measures.” Reconciliations of each non-GAAP financial measure used in this news release to the most directly comparable GAAP financial measure are provided below. Additional detail on the Company’s 2025 first quarter financial and operational results, along with non-GAAP measures that adjust for items typically excluded by securities analysts, are available on the Company’s website. Non-GAAP measures should not be considered as an alternative to, or more meaningful than, GAAP measures. Management’s guidance for 2025 can be found on the Company’s website at https://www.expandenergy.com/.

Expand Energy Corporation (NASDAQ: EXE) is the largest natural gas producer in the United States, powered by dedicated and innovative employees focused on disrupting the industry’s traditional cost and market delivery model to responsibly develop assets in the nation’s most prolific natural gas basins. Expand Energy’s returns-driven strategy strives to create sustainable value for its stakeholders by leveraging its scale, financial strength and operational execution. Expand Energy is committed to expanding America’s energy reach to fuel a more affordable, reliable, lower carbon future.

Forward-Looking Statements

This release includes “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. Forward-looking statements include our current expectations or forecasts of future events, including matters relating to armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, and the impact of each on our business, financial condition, results of operations and cash flows, actions by, or disputes among or between, members of OPEC+ and other foreign oil-exporting countries, market factors, market prices, our ability to meet debt service requirements, our ability to continue to pay cash dividends, our ability to capture synergies, the amount and timing of any cash dividends and our environmental, social, and governance (“ESG”) initiatives. Forward-looking and other statements in this news release regarding our environmental, social and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the Securities and Exchange commission (“SEC”). In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “aim”, “predict”, “should”, “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy.” The absence of such words or expressions does not necessarily mean the statements are not forward-looking.

Although we believe the expectations and forecasts reflected in our forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include:

Reduced demand for natural gas, oil, and natural gas liquids (“NGLs”);
negative public perceptions of our industry;
competition in the natural gas and oil exploration and production industry;
the volatility of natural gas, oil and NGL prices, which are affected by general economic and business conditions, as well as increased demand for (and availability of) alternative fuels and electric vehicles;
risks from regional epidemics or pandemics and related economic turmoil, including supply chain constraints;
write-downs of our natural gas and oil asset carrying values due to low commodity prices;
significant capital expenditures are required to replace our reserves and conduct our business;
our ability to replace reserves and sustain production;
uncertainties inherent in estimating quantities of natural gas, oil and NGL reserves and projecting future rates of production and the amount and timing of development expenditures;
drilling and operating risks and resulting liabilities;
our ability to generate profits or achieve targeted results in drilling and well operations;
leasehold terms expiring before production can be established;
risks from our commodity price risk management activities;
uncertainties, risks and costs associated with natural gas and oil operations;
our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the water used;
pipeline and gathering system capacity constraints and transportation interruptions;
risks related to our plans to participate in the global LNG value chain;
terrorist activities and/or cyber-attacks adversely impacting our operations;
risks from failure to protect personal information and data and compliance with data privacy and security laws and regulations;
disruption of our business by natural or human causes beyond our control;
a deterioration in general economic, business or industry conditions;
the impact of inflation and commodity price volatility, including as a result of decisions made by OPEC+ and armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, on our business, financial condition, employees, contractors, vendors and the global demand for natural gas and oil and on U.S. and global financial markets;
our inability to access the capital markets on favorable terms;
the limitations on our financial flexibility due to our level of indebtedness and restrictive covenants from our indebtedness;
challenges with employee retention and increasingly competitive labor market
risks related to acquisitions or dispositions, or potential acquisitions or dispositions;
security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or from breaches of information technology systems of third parties with whom we transact business;
our ability to achieve and maintain ESG certifications, goals and commitments;
legislative, regulatory, and ESG initiatives, including those addressing the impact of climate change or further regulating hydraulic fracturing, methane emissions, flaring or water disposal;
federal and state tax proposals affecting our industry;
risks related to an annual limitation on the utilization of our tax attributes, which was triggered upon the completion of our merger with Southwestern Energy Company (the “Southwestern Merger”), as well as trading in our common stock, additional issuance of common stock, and certain other stock transactions, which could lead to an additional, potentially more restrictive, annual limitation; and
other factors that are described under Risk Factors in Item 1A of Part I of our Annual Report on Form 10-K filed with the SEC.

We caution you not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of the filing date, and we undertake no obligation and have no intention to update any forward-looking statement, except as required by law. We urge you to carefully review and consider the disclosures in this news release and our filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business.

All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

($ in millions, except per share data)	March 31, 2025			December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	349		$	317
Restricted cash		78			78
Accounts receivable, net		1,361			1,226
Derivative assets		—			84
Other current assets		325			292
Total current assets		2,113			1,997
Property and equipment:
Natural gas and oil properties, successful efforts method
Proved natural gas and oil properties		23,874			23,093
Unproved properties		5,774			5,897
Other property and equipment		678			654
Total property and equipment		30,326			29,644
Less: accumulated depreciation, depletion and amortization		(6,066	)		(5,362	)
Total property and equipment, net		24,260			24,282
Long-term derivative assets		2			1
Deferred income tax assets		626			589
Other long-term assets		933			1,025
Total assets	$	27,934		$	27,894

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	654		$	777
Current maturities of long-term debt, net		—			389
Accrued interest		68			100
Derivative liabilities		896			71
Other current liabilities		1,971			1,786
Total current liabilities		3,589			3,123
Long-term debt, net		5,243			5,291
Long-term derivative liabilities		129			68
Asset retirement obligations, net of current portion		506			499
Long-term contract liabilities		1,159			1,227
Other long-term liabilities		117			121
Total liabilities		10,743			10,329
Contingencies and commitments
Stockholders’ equity:
Common stock, $0.01 par value, 450,000,000 shares authorized: 237,476,127 and 231,769,886 shares issued		2			2
Additional paid-in capital		13,700			13,687
Retained earnings		3,489			3,876
Total stockholders’ equity		17,191			17,565
Total liabilities and stockholders’ equity	$	27,934		$	27,894

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended March 31,
		2025			2024
($ in millions, except per share data)
Revenues and other:
Natural gas, oil and NGL	$	2,300		$	589
Marketing		910			312
Natural gas, oil and NGL derivatives		(1,014	)		172
Gains on sales of assets		—			8
Total revenues and other		2,196			1,081
Operating expenses:
Production		147			59
Gathering, processing and transportation		563			173
Severance and ad valorem taxes		48			29
Exploration		7			2
Marketing		919			323
General and administrative		47			47
Depreciation, depletion and amortization		711			399
Other operating expense, net		22			17
Total operating expenses		2,464			1,049
Income (loss) from operations		(268	)		32
Other income (expense):
Interest expense		(59	)		(19	)
Other income, net		8			20
Total other income (expense)		(51	)		1
Income (loss) before income taxes		(319	)		33
Income tax expense (benefit)		(70	)		7
Net income (loss)	$	(249	)	$	26
Earnings (loss) per common share:
Basic	$	(1.06	)	$	0.20
Diluted	$	(1.06	)	$	0.18
Weighted average common shares outstanding (in thousands):
Basic		234,434			130,893
Diluted		234,434			141,752

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Three Months Ended March 31,
($ in millions)		2025			2024
Cash flows from operating activities:
Net income (loss)	$	(249	)	$	26
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		711			399
Deferred income tax expense (benefit)		(37	)		7
Derivative (gains) losses, net		1,014			(172	)
Cash receipts (payments) on derivative settlements, net		(45	)		228
Share-based compensation		9			9
Gains on sales of assets		—			(8	)
Contract amortization		(52	)		—
Other		(4	)		(13	)
Changes in assets and liabilities		(251	)		76
Net cash provided by operating activities		1,096			552
Cash flows from investing activities:
Capital expenditures		(563	)		(421	)
Receipts of deferred consideration		60			60
Contributions to investments		(4	)		(19	)
Proceeds from divestitures of property and equipment		—			6
Net cash used in investing activities		(507	)		(374	)
Cash flows from financing activities:
Proceeds from Credit Facility		725			—
Payments on Credit Facility		(725	)		—
Proceeds from warrant exercise		21			—
Cash paid to purchase debt		(436	)		—
Cash paid for common stock dividends		(142	)		(77	)
Net cash used in financing activities		(557	)		(77	)
Net increase in cash, cash equivalents and restricted cash		32			101
Cash, cash equivalents and restricted cash, beginning of period		395			1,153
Cash, cash equivalents and restricted cash, end of period	$	427		$	1,254

Cash and cash equivalents	$	349		$	1,179
Restricted cash		78			75
Total cash, cash equivalents and restricted cash	$	427		$	1,254

NATURAL GAS, OIL AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited)

	Three Months Ended March 31, 2025
	Natural Gas		Oil		NGL		Total
	MMcf per day	$/Mcf	MBbl per day	$/Bbl	MBbl per day	$/Bbl	MMcfe per day	$/Mcfe
Haynesville	2,617	3.48	—	—	—	—	2,617	3.48
Northeast Appalachia	2,668	3.75	—	—	—	—	2,668	3.75
Southwest Appalachia	969	3.38	14	63.40	75	30.54	1,503	4.28
Total	6,254	3.58	14	63.40	75	30.54	6,788	3.76

Average NYMEX Price		3.65		71.42
Average Realized Price (including realized derivatives)		3.51		63.76		29.35		3.69

	Three Months Ended March 31, 2024
	Natural Gas		Oil		NGL		Total
	MMcf per day	$/Mcf	MBbl per day	$/Bbl	MBbl per day	$/Bbl	MMcfe per day	$/Mcfe
Haynesville	1,478	2.03	—	—	—	—	1,478	2.03
Northeast Appalachia	1,720	2.03	—	—	—	—	1,720	2.03
Total	3,198	2.03	—	—	—	—	3,198	2.03

Average NYMEX Price		2.24		—
Average Realized Price (including realized derivatives)		2.85		—		—		2.85

CAPITAL EXPENDITURES ACCRUED (unaudited)

	Three Months Ended March 31,
		2025		2024
($ in millions)
Drilling and completion capital expenditures:
Haynesville	$	286	$	195
Northeast Appalachia		103		105
Southwest Appalachia		165		—
Total drilling and completion capital expenditures		554		300
Non-drilling and completion – field		56		35
Non-drilling and completion – corporate		52		19
Total capital expenditures	$	662	$	354

NON-GAAP FINANCIAL MEASURES

As a supplement to the financial results prepared in accordance with U.S. GAAP, Expand Energy’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDAX, Free Cash Flow, Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the Company’s trends and performance, (b) these financial measures are comparable to estimates provided by securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the Company generally excludes information regarding these types of items.

Expand Energy’s definitions of each non-GAAP measure presented herein are provided below. Because not all companies or securities analysts use identical calculations, Expand Energy’s non-GAAP measures may not be comparable to similarly titled measures of other companies or securities analysts.

Adjusted Net Income: Adjusted Net Income is defined as net income (loss) adjusted to exclude unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Net Income facilitates comparisons of the Company’s period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy’s core operating performance. Adjusted Net Income should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

Adjusted Diluted Earnings Per Common Share: Adjusted Diluted Earnings Per Common Share is defined as diluted earnings (loss) per common share adjusted to exclude the per diluted share amounts attributed to unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Diluted Earnings Per Common Share facilitates comparisons of the Company’s period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy’s core operating performance. Adjusted Diluted Earnings Per Common Share should not be considered an alternative to, or more meaningful than, earnings (loss) per common share as presented in accordance with GAAP.

Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense, exploration expense, unrealized (gains) losses on natural gas and oil derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results. Adjusted EBITDAX is presented as it provides investors an indication of the Company’s ability to internally fund exploration and development activities and service or incur debt. Adjusted EBITDAX should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

Free Cash Flow: Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures. Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company’s ability to service or incur debt and return cash to shareholders. Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures and cash contributions to investments, adjusted to exclude certain items management believes affect the comparability of operating results. Adjusted Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company’s ability to service or incur debt and return cash to shareholders and is used to determine Expand Energy’s payout of enhanced returns framework. Adjusted Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

Net Debt: Net Debt is defined as GAAP total debt excluding premiums, discounts, and deferred issuance costs less cash and cash equivalents. Net Debt is useful to investors as a widely understood measure of liquidity and leverage, but this measure should not be considered as an alternative to, or more meaningful than, total debt presented in accordance with GAAP.

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (unaudited)

	Three Months Ended March 31,
($ in millions)		2025			2024
Net income (loss) (GAAP)	$	(249	)	$	26

Adjustments:
Unrealized losses on natural gas and oil derivatives		969			67
Gains on sales of assets		—			(8	)
Other operating expense, net		26			19
Contract amortization		(52	)		—
Other		(4	)		(8	)
Tax effect of adjustments^(a)		(203	)		(16	)
Adjusted net income (Non-GAAP)	$	487		$	80

(a)	The three month periods ended March 31, 2025 and March 31, 2024 include a tax effect attributed to reconciling adjustments using a statutory rate of 22% and 23%, respectively.

RECONCILIATION OF EARNINGS (LOSS) PER COMMON SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (unaudited)

	Three Months Ended March 31,
($/share)		2025			2024
Earnings (loss) per common share (GAAP)	$	(1.06	)	$	0.20
Effect of dilutive securities		—			(0.02	)
Diluted earnings (loss) per common share (GAAP)	$	(1.06	)	$	0.18

Adjustments:
Unrealized losses on natural gas and oil derivatives		4.14			0.47
Gains on sales of assets		—			(0.06	)
Other operating expense, net		0.11			0.14
Contract amortization		(0.22	)		—
Other		(0.02	)		(0.06	)
Tax effect of adjustments^(a)		(0.87	)		(0.11	)
Effect of dilutive securities		(0.06	)		—
Adjusted diluted earnings per common share (Non-GAAP)	$	2.02		$	0.56

(a)	The three month periods ended March 31, 2025 and March 31, 2024 include a tax effect attributed to reconciling adjustments using a statutory rate of 22% and 23%, respectively.

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDAX (unaudited)

	Three Months Ended March 31,
		2025			2024
($ in millions)
Net income (loss) (GAAP)	$	(249	)	$	26

Adjustments:
Interest expense		59			19
Income tax expense (benefit)		(70	)		7
Depreciation, depletion and amortization		711			399
Exploration		7			2
Unrealized losses on natural gas and oil derivatives		969			67
Gains on sales of assets		—			(8	)
Other operating expense, net		26			19
Contract amortization		(52	)		—
Other		(6	)		(23	)
Adjusted EBITDAX (Non-GAAP)	$	1,395		$	508

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (unaudited)

	Three Months Ended March 31,
		2025			2024
($ in millions)
Net cash provided by operating activities (GAAP)	$	1,096		$	552
Cash capital expenditures		(563	)		(421	)
Free cash flow (Non-GAAP)		533			131
Cash paid for merger expenses		48			—
Cash contributions to investments		(4	)		(19	)
Adjusted free cash flow (Non-GAAP)	$	577		$	112

RECONCILIATION OF TOTAL DEBT TO NET DEBT (unaudited)

($ in millions)	March 31, 2025
Total debt (GAAP)	$	5,243
Premiums, discounts and issuance costs on debt		7
Principal amount of debt		5,250
Cash and cash equivalents		(349	)
Net debt (Non-GAAP)	$	4,901

The MIL Network –

April 30, 2025

MIL-OSI: Vicor Corporation Reports Results for the First Quarter Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

ANDOVER, Mass., April 29, 2025 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the first quarter ended March 31, 2025. These results will be discussed later today at 5:00 p.m. Eastern Time, during management’s quarterly investor conference call. The details for the call are below.

Revenues for the first quarter ended March 31, 2025 totaled $94.0 million, a 12.0% increase from $83.9 million for the corresponding period a year ago, and a 2.3% sequential decrease from $96.2 million in the fourth quarter of 2024.

Gross margin decreased to $44.4 million for the first quarter of 2025, compared to $45.1 million for the corresponding period a year ago, and decreased sequentially from $50.4 million for the fourth quarter of 2024. Gross margin, as a percentage of revenue, decreased to 47.2% for the first quarter of 2025, compared to 53.8% for the corresponding period a year ago, and decreased from 52.4% for the fourth quarter of 2024. Operating expenses decreased to $44.5 million for the first quarter of 2025, compared to $61.2 million for the corresponding period a year ago, and increased sequentially from $41.2 million for the fourth quarter of 2024.

Net income for the first quarter was $2.5 million, or $0.06 per diluted share, compared to a net loss of ($14.5) million or ($0.33) per diluted share, for the corresponding period a year ago and net income of $10.2 million, or $0.23 per diluted share, for the fourth quarter of 2024.

Cash flow from operations totaled $20.1 million for the first quarter, compared to cash flow from operations of $2.6 million for the corresponding period a year ago, and cash flow from operations of $10.1 million in the fourth quarter of 2024. Capital expenditures for the first quarter totaled $4.6 million, compared to $7.3 million for the corresponding period a year ago and $1.7 million for the fourth quarter of 2024. Cash and cash equivalents as of March 31, 2025 increased 6.8% sequentially to approximately $296.1 million compared to approximately $277.3 million as of December 31, 2024.

Backlog for the first quarter ended March 31, 2025 totaled $171.7 million, a 14.2% increase from $150.3 million for the corresponding period a year ago, and 10.4% sequential increase from $155.5 million at the end of the fourth quarter of 2024.

Commenting on first quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Revenues and gross margins declined sequentially, with reduced income from a licensee transitioning to a new generation of unlicensed products. Margin improvements await higher utilization of our ChiP fab and increased income from existing and future licensees. Licensing has been gaining traction with OEMs and hyper-scalers wishing to avoid infringing hardware being excluded from importation into the US.”

“Our 2^nd generation VPD for leading AI applications is coming to fruition with the arrival of an ASIC raising the density and bandwidth of our current multipliers. Second generation VPD will enable AI processors setting new standards for performance. We are still focused on completing initial delivery of a very high density VPD system to a lead customer before providing demo systems to processor chip companies and hyper-scalers.”

For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com.

Earnings Conference Call

Vicor will be holding its investor conference call today, Tuesday, April 29, 2025 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 5:00 p.m. on April 29, 2025. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor’s website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor’s website.

This press release contains certain 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. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and, the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “assumes,” “may,” “will,” “would,” “should,” “continue,” “prospective,” “project,” and other similar expressions identify forward-looking statements. Forward-looking statements also include statements regarding bookings, shipments, revenue, profitability, targeted markets, increase in manufacturing capacity and utilization thereof, future products and capital resources. These statements are based upon management’s current expectations and estimates as to the prospective events and circumstances that may or may not be within the company’s control and as to which there can be no assurance. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors, including those economic, business, operational and financial considerations set forth in Vicor’s Annual Report on Form 10-K for the year ended December 31, 2024, under Part I, Item I — “Business,” under Part I, Item 1A — “Risk Factors,” under Part I, Item 3 — “Legal Proceedings,” and under Part II, Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The risk factors set forth in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in the Annual Report on Form 10-K should be read together with other reports and documents filed with the Securities and Exchange Commission from time to time, including Forms 10-Q, 8-K and 10-K, which may supplement, modify, supersede or update those risk factors. Vicor does not undertake any obligation to update any forward-looking statements as a result of future events or developments.

Vicor Corporation designs, develops, manufactures, and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, and aerospace and defense electronics.

For further information contact:

James F. Schmidt, Chief Financial Officer
Office: (978) 470-2900
Email: invrel@vicorpower.com

VICOR CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)

	QUARTER ENDED
	(Unaudited)

	MAR 31,			MAR 31,
	2025			2024


Product revenue	$	83,206		$	75,692
Royalty revenue		10,762			8,180
Net revenues		93,968			83,872
Cost of product revenues		49,603			38,749
Gross margin		44,365			45,123

Operating expenses:
Selling, general and administrative		25,137			25,999
Research and development		19,377			18,039
Litigation-contingency expense		–			17,200
Total operating expenses		44,514			61,238

Loss from operations		(149	)		(16,115	)

Other income (expense), net		3,134			2,724

Income (loss) before income taxes		2,985			(13,391	)

Less: Provision for income taxes		424			1,071

Consolidated net income (loss)		2,561			(14,462	)

Less: Net income attributable to
noncontrolling interest		22			11

Net income (loss) attributable to
Vicor Corporation	$	2,539		($	14,473	)


Net income (loss) per share attributable
to Vicor Corporation:
Basic	$	0.06		($	0.33	)
Diluted	$	0.06		($	0.33	)

Shares outstanding:
Basic		45,217			44,516
Diluted		45,495			44,516

VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)


	MAR 31,			DEC 31,
	2025			2024
	(Unaudited)			(Unaudited)
Assets

Current assets:
Cash and cash equivalents	$	296,099		$	277,273
Accounts receivable, net		65,864			52,948
Inventories		98,515			106,032
Other current assets		26,486			26,781
Total current assets		486,964			463,034

Long-term deferred tax assets		273			261
Long-term investment, net		2,664			2,641
Property, plant and equipment, net		153,117			152,705
Other assets		22,020			22,477

Total assets	$	665,038		$	641,118

Liabilities and Equity

Current liabilities:
Accounts payable	$	16,866		$	8,737
Accrued compensation and benefits		12,548			10,852
Accrued expenses		8,558			6,589
Accrued litigation		27,219			26,888
Sales allowances		2,114			1,667
Short-term lease liabilities		1,675			1,716
Income taxes payable		57			59
Short-term deferred revenue and customer prepayments		6,624			5,312

Total current liabilities		75,661			61,820

Long-term income taxes payable		3,461			3,387
Long-term lease liabilities		5,353			5,620
Total liabilities		84,475			70,827

Equity:
Vicor Corporation stockholders’ equity:
Capital stock		415,702			408,187
Retained earnings		305,342			302,803
Accumulated other comprehensive loss		(1,312	)		(1,495	)
Treasury stock		(139,424	)		(139,424	)
Total Vicor Corporation stockholders’ equity		580,308			570,071
Noncontrolling interest		255			220
Total equity		580,563			570,291

Total liabilities and equity	$	665,038		$	641,118

The MIL Network –

April 30, 2025

MIL-OSI: Tenable Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Revenue of $239.1 million, up 11% year-over-year.
Calculated current billings of $215.4 million, up 9% year-over-year.
GAAP operating margin of (7)%; Non-GAAP operating margin of 20%.
Net cash provided by operating activities of $87.4 million; Unlevered free cash flow of $86.8 million.

COLUMBIA, Md., April 29, 2025 (GLOBE NEWSWIRE) — Tenable Holdings, Inc. (“Tenable”) (Nasdaq: TENB), the exposure management company, today announced financial results for the quarter ended March 31, 2025.

“We had a strong start to the year with better-than-expected results on both the top and bottom line,” said Steve Vintz, Co-CEO of Tenable. “With our ongoing investments in areas like AI and integrations with third-party tools and data sources we are helping our customers reduce risk with greater efficiency.”

“We had some incredible six- and seven-figure deals this quarter driving upside to our expectations and representing significant ongoing opportunities,” said Mark Thurmond, Co-CEO of Tenable. “Our outperformance was driven by continued momentum with Tenable One as we build strategic partnerships resulting in larger deal sizes, broader platform adoption, and greater asset coverage.”

First Quarter 2025 Financial Highlights

Revenue was $239.1 million, an 11% increase year-over-year.
Calculated current billings was $215.4 million, a 9% increase year-over-year.
GAAP loss from operations was $17.7 million, compared to $8.9 million in the first quarter of 2024.
Non-GAAP income from operations was $48.7 million, compared to $37.0 million in the first quarter of 2024.
GAAP net loss was $22.9 million, compared to $14.4 million in the first quarter of 2024.
GAAP net loss per share was $0.19, compared to $0.12 in the first quarter of 2024.
Non-GAAP net income was $44.3 million, compared to $30.4 million in the first quarter of 2024.
Non-GAAP diluted earnings per share was $0.36, compared to $0.25 in the first quarter of 2024.
Cash and cash equivalents and short-term investments were $460.3 million at March 31, 2025, compared to $577.2 million at December 31, 2024.
Net cash provided by operating activities was $87.4 million, compared to $50.3 million in the first quarter of 2024.
Unlevered free cash flow was $86.8 million, compared to $54.7 million in the first quarter of 2024.
Repurchased 1.6 million shares of our common stock for $60.0 million

Recent Business Highlights

Added 361 new enterprise platform customers and 54 net new six-figure customers.
Completed the acquisition of Vulcan Cyber Ltd., which is expected to enhance our industry-leading exposure management platform, delivering comprehensive visibility, prioritization and remediation across the entire attack surface.
Released Identity 360 and Exposure Center, two capabilities designed to help organizations pinpoint identity risks and take swift, targeted action to prevent identity-based attacks.
Achieved FedRAMP moderate authorization of Tenable One and Tenable Cloud Security, underscoring our commitment to strengthening government infrastructure and reducing cybersecurity risk to support national security.
Published the 2025 Cloud AI Risk Report, examining the current state of security risks in cloud AI development tools and frameworks and in AI services offered by the three major cloud providers.

Financial Outlook

For the second quarter of 2025, we currently expect:

Revenue in the range of $241.0 million to $243.0 million.
Non-GAAP income from operations in the range of $43.0 million to $45.0 million.
Non-GAAP net income in the range of $36.0 million to $38.0 million, assuming interest expense of $7.1 million, interest income of $4.0 million and a provision for income taxes of $3.2 million.
Non-GAAP diluted earnings per share in the range of $0.29 to $0.31.
123.0 million diluted weighted average shares outstanding.

For the year ending December 31, 2025, we currently expect:

Calculated current billings in the range of $1.025 billion to $1.045 billion.
Revenue in the range of $970.0 million to $980.0 million.
Non-GAAP income from operations in the range of $205.0 million to $215.0 million.
Non-GAAP net income in the range of $178.0 million to $188.0 million, assuming interest expense of $28.4 million, interest income of $16.8 million and a provision for income taxes of $13.1 million.
Non-GAAP diluted earnings per share in the range of $1.44 to $1.52.
123.5 million diluted weighted average shares outstanding.
Unlevered free cash flow in the range of $265.0 million to $275.0 million.

Conference Call Information

Tenable will host a conference call on April 29, 2025 at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com. An archived replay of the live broadcast will be available on the Investor Relations page of the website following the call.

About Tenable

Tenable^® is the exposure management company, exposing and closing the cybersecurity gaps that erode business value, reputation and trust. The company’s AI-powered exposure management platform radically unifies security visibility, insight and action across the attack surface, equipping modern organizations to protect against attacks from IT infrastructure to cloud environments to critical infrastructure and everywhere in between. By protecting enterprises from security exposure, Tenable reduces business risk for approximately 44,000 customers around the globe. Learn more at tenable.com.

Contact Information

Investor Relations
investors@tenable.com

Media Relations
tenablepr@tenable.com

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, our platform’s ability to help protect enterprises from security exposure and streamline vulnerability analysis and response, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings that we make from time to time with the SEC, which are available on the SEC’s website at sec.gov. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance the overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. We include these non-GAAP financial measures to present our financial performance using a management view and because we believe that these measures provide an additional comparison of our core financial performance over multiple periods with other companies in our industry.

Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer’s contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.

Free Cash Flow and Unlevered Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities less purchases of property and equipment and capitalized software development costs. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment and capitalized software development costs, for investment in our business and to make acquisitions. We believe that free cash flow is useful as a liquidity measure because it measures our ability to generate cash. We define unlevered free cash flow as free cash flow plus cash paid for interest and other financing costs. We believe unlevered free cash flow is useful as a liquidity measure as it measures the cash that is available to invest in our business and meet our current debt obligations and future financing needs. However, given our debt obligations, non-cancelable commitments and other contractual obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.

Non-GAAP Income from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses, costs related to the intra-entity asset transfers resulting from the internal restructuring of legal entities, and amortization of acquired intangible assets. Acquisition-related expenses include transaction and integration expenses, as well as costs related to the intercompany transfer of acquired intellectual property. Restructuring expenses include non-ordinary course severance, employee related benefits, and other charges to reorganize business operations. We believe that the exclusion of these expenses provides for a useful comparison of our operating results to prior periods and to our peer companies, which commonly exclude restructuring expenses.

Non-GAAP Net Income and Non-GAAP Earnings Per Share: We define non-GAAP net income as GAAP net loss, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses and amortization of acquired intangible assets, including the applicable tax impacts. In addition, we exclude the tax impact and related costs of intra-entity asset transfers resulting from the internal restructuring of legal entities as well as deferred income tax benefits recognized in connection with acquisitions. We use non-GAAP net income to calculate non-GAAP earnings per share.

Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.

Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation, acquisition-related expenses and costs related to intra-entity asset transfers resulting from the internal restructuring of legal entities.

TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
	Three Months Ended March 31,
(in thousands, except per share data)	2025			2024
Revenue	$	239,137		$	215,961
Cost of revenue⁽¹⁾		52,460			48,932
Gross profit		186,677			167,029
Operating expenses:
Sales and marketing⁽¹⁾		103,182			99,825
Research and development⁽¹⁾		53,223			43,727
General and administrative⁽¹⁾		47,983			31,018
Restructuring		—			1,389
Total operating expenses		204,388			175,959
Loss from operations		(17,711	)		(8,930	)
Interest income		4,927			5,624
Interest expense		(7,011	)		(8,112	)
Other income (expense), net		474			(1,310	)
Loss before income taxes		(19,321	)		(12,728	)
Provision for income taxes		3,614			1,658
Net loss	$	(22,935	)	$	(14,386	)

Net loss per share, basic and diluted	$	(0.19	)	$	(0.12	)
Weighted-average shares used to compute net loss per share, basic and diluted		120,083			117,542

_______________

⁽¹⁾ Includes stock-based compensation as follows:

	Three Months Ended March 31,
	2025		2024
Cost of revenue	$	3,315	$	2,982
Sales and marketing		16,630		15,300
Research and development		12,967		11,161
General and administrative⁽²⁾		22,991		10,276
Total stock-based compensation	$	55,903	$	39,719

_______________

⁽²⁾ Stock-based compensation in the three months ended March 31, 2025 includes $14.6 million of expense related to the accelerated vesting of equity awards for our late CEO.

TENABLE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS
	March 31, 2025			December 31, 2024
(in thousands, except per share data)	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	233,441		$	328,647
Short-term investments		226,836			248,547
Accounts receivable (net of allowance for doubtful accounts of $748 and $525 at March 31, 2025 and December 31, 2024, respectively)		167,793			258,734
Deferred commissions		51,247			51,791
Prepaid expenses and other current assets		67,106			53,026
Total current assets		746,423			940,745
Property and equipment, net		41,343			39,265
Deferred commissions (net of current portion)		65,582			67,914
Operating lease right-of-use assets		40,951			45,139
Acquired intangible assets, net		128,597			94,461
Goodwill		656,481			541,292
Other assets		14,200			13,303
Total assets	$	1,693,577		$	1,742,119

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	17,684		$	19,981
Accrued compensation		51,432			55,784
Deferred revenue		633,224			650,372
Operating lease liabilities		6,305			6,801
Other current liabilities		6,346			5,154
Total current liabilities		714,991			738,092
Deferred revenue (net of current portion)		175,151			182,815
Term loan, net of issuance costs (net of current portion)		356,068			356,705
Operating lease liabilities (net of current portion)		54,621			56,224
Other liabilities		9,585			8,329
Total liabilities		1,310,416			1,342,165

Stockholders’ equity:
Common stock (par value: $0.01; 500,000 shares authorized; 124,484 and 122,371 shares issued at March 31, 2025 and December 31, 2024, respectively)		1,245			1,224
Additional paid-in capital		1,440,770			1,374,659
Treasury stock (at cost: 4,282 and 2,673 shares at March 31, 2025 and December 31, 2024, respectively)		(174,911	)		(114,911	)
Accumulated other comprehensive income		328			318
Accumulated deficit		(884,271	)		(861,336	)
Total stockholders’ equity		383,161			399,954
Total liabilities and stockholders’ equity	$	1,693,577		$	1,742,119

TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
	Three Months Ended March 31,
(in thousands)	2025			2024
Cash flows from operating activities:
Net loss	$	(22,935	)	$	(14,386	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		9,854			8,232
Stock-based compensation		55,903			39,719
Net accretion of discounts and amortization of premiums on short-term investments		(1,180	)		(2,284	)
Amortization of debt issuance costs		349			329
Other		979			1,611
Changes in operating assets and liabilities:
Accounts receivable		92,968			63,437
Prepaid expenses and other assets		(9,875	)		5,216
Accounts payable, accrued expenses and accrued compensation		(8,491	)		(22,017	)
Deferred revenue		(32,507	)		(27,789	)
Other current and noncurrent liabilities		2,342			(1,742	)
Net cash provided by operating activities		87,407			50,326

Cash flows from investing activities:
Purchases of property and equipment		(6,553	)		(665	)
Capitalized software development costs		(624	)		(2,532	)
Purchases of short-term investments		(38,445	)		(77,465	)
Sales and maturities of short-term investments		61,345			65,570
Proceeds from other investments		664			3,512
Business combinations, net of cash acquired		(148,510	)		—
Net cash used in investing activities		(132,123	)		(11,580	)

Cash flows from financing activities:
Payments on term loan		(938	)		(938	)
Proceeds from stock issued in connection with the employee stock purchase plan		9,701			9,884
Proceeds from the exercise of stock options		347			1,874
Purchase of treasury stock		(60,000	)		(24,991	)
Net cash used in financing activities		(50,890	)		(14,171	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		400			(1,730	)
Net (decrease) increase in cash and cash equivalents and restricted cash		(95,206	)		22,845
Cash and cash equivalents and restricted cash at beginning of period		328,647			237,132
Cash and cash equivalents and restricted cash at end of period	$	233,441		$	259,977

TENABLE HOLDINGS, INC. REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)
Revenue	Three Months Ended March 31,
(in thousands)	2025		2024
Subscription revenue	$	220,443	$	197,635
Perpetual license and maintenance revenue		11,552		12,156
Professional services and other revenue		7,142		6,170
Revenue⁽¹⁾	$	239,137	$	215,961

_______________

⁽¹⁾ Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented 96% of revenue in the three months ended March 31, 2025 and 2024.

Calculated Current Billings	Three Months Ended March 31,
(in thousands)	2025			2024
Revenue	$	239,137		$	215,961
Deferred revenue (current), end of period		633,224			562,575
Deferred revenue (current), beginning of period⁽¹⁾		(657,001	)		(580,779	)
Calculated current billings	$	215,360		$	197,757

^{________________}
⁽¹⁾ Deferred revenue (current), beginning of period for the three months ended March 31, 2025 includes $6.6 million related to acquired deferred revenue.

Remaining Performance Obligations	March 31,
(in thousands)	2025		2024
Remaining performance obligations, short-term	$	647,647	$	572,851
Remaining performance obligations, long-term		234,598		169,560
Remaining performance obligations	$	882,245	$	742,411

Free Cash Flow and Unlevered Free Cash Flow	Three Months Ended March 31,
(in thousands)	2025			2024
Net cash provided by operating activities	$	87,407		$	50,326
Purchases of property and equipment		(6,553	)		(665	)
Capitalized software development costs		(624	)		(2,532	)
Free cash flow		80,230			47,129
Cash paid for interest and other financing costs		6,574			7,611
Unlevered free cash flow	$	86,804		$	54,740

Free cash flow and unlevered free cash flow for the periods presented were impacted by:

	Three Months Ended March 31,
(in thousands)	2025			2024
Employee stock purchase plan activity	$	(5,413	)	$	(6,332	)
Acquisition-related expenses		(3,189	)		(466	)
Restructuring		—			(3,822	)

Non-GAAP Income from Operations and Non-GAAP Operating Margin	Three Months Ended March 31,
(dollars in thousands)	2025			2024
Loss from operations	$	(17,711	)	$	(8,930	)
Stock-based compensation		55,903			39,719
Acquisition-related expenses		4,621			161
Restructuring		—			1,389
Amortization of acquired intangible assets		5,864			4,669
Non-GAAP income from operations	$	48,677		$	37,008
Operating margin	(7		)%	(4		)%
Non-GAAP operating margin		20	%		17	%

Non-GAAP Net Income and Non-GAAP Earnings Per Share	Three Months Ended March 31,
(in thousands, except per share data)	2025			2024
Net loss	$	(22,935	)	$	(14,386	)
Stock-based compensation		55,903			39,719
Tax impact of stock-based compensation⁽¹⁾		855			(1,077	)
Acquisition-related expenses⁽²⁾		4,621			161
Restructuring⁽²⁾		—			1,389
Amortization of acquired intangible assets⁽²⁾		5,864			4,669
Tax impact of acquisitions		(58	)		(35	)
Non-GAAP net income	$	44,250		$	30,440

Net loss per share, diluted	$	(0.19	)	$	(0.12	)
Stock-based compensation		0.46			0.34
Tax impact of stock-based compensation⁽¹⁾		0.01			(0.01	)
Acquisition-related expenses⁽²⁾		0.04			—
Restructuring⁽²⁾		—			0.01
Amortization of acquired intangible assets⁽²⁾		0.05			0.04
Tax impact of acquisitions		—			—
Adjustment to diluted earnings per share⁽³⁾		(0.01	)		(0.01	)
Non-GAAP earnings per share, diluted	$	0.36		$	0.25

Weighted-average shares used to compute GAAP net loss per share, diluted		120,083			117,542

Weighted-average shares used to compute non-GAAP earnings per share, diluted		124,152			123,266

________________

(1) The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions.
(2) The tax impact of acquisition-related expenses, restructuring and the amortization of acquired intangible assets are not material.
(3) An adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

Non-GAAP Gross Profit and Non-GAAP Gross Margin	Three Months Ended March 31,
(dollars in thousands)	2025			2024
Gross profit	$	186,677		$	167,029
Stock-based compensation		3,315			2,982
Amortization of acquired intangible assets		5,864			4,669
Non-GAAP gross profit	$	195,856		$	174,680
Gross margin		78	%		77	%
Non-GAAP gross margin		82	%		81	%

Non-GAAP Sales and Marketing Expense	Three Months Ended March 31,
(dollars in thousands)	2025			2024
Sales and marketing expense	$	103,182		$	99,825
Less: Stock-based compensation		16,630			15,300
Less: Acquisition-related expenses		1,054			—
Non-GAAP sales and marketing expense	$	85,498		$	84,525
Non-GAAP sales and marketing expense % of revenue		36	%		39	%

Non-GAAP Research and Development Expense	Three Months Ended March 31,
(dollars in thousands)	2025			2024
Research and development expense	$	53,223		$	43,727
Less: Stock-based compensation		12,967			11,161
Less: Acquisition-related expenses		1,239			(20	)
Non-GAAP research and development expense	$	39,017		$	32,586
Non-GAAP research and development expense % of revenue		16	%		15	%

Non-GAAP General and Administrative Expense	Three Months Ended March 31,
(dollars in thousands)	2025			2024
General and administrative expense	$	47,983		$	31,018
Less: Stock-based compensation		22,991			10,276
Less: Acquisition-related expenses		2,328			181
Non-GAAP general and administrative expense	$	22,664		$	20,561
Non-GAAP general and administrative expense % of revenue		9	%		10	%

The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income, non-GAAP earnings per share, free cash flow and unlevered free cash flow are subject to a number of uncertainties and assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.

Forecasted Non-GAAP Income from Operations	Three Months Ending June 30, 2025						Year Ending December 31, 2025
(in millions)	Low			High			Low			High
Forecasted loss from operations	$	(12.0	)	$	(10.0	)	$	(22.0	)	$	(12.0	)
Forecasted stock-based compensation		47.0			47.0			196.0			196.0
Forecasted acquisition-related expenses		1.5			1.5			6.0			6.0
Forecasted amortization of acquired intangible assets		6.5			6.5			25.0			25.0
Forecasted non-GAAP income from operations	$	43.0		$	45.0		$	205.0		$	215.0

Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per Share	Three Months Ending June 30, 2025						Year Ending December 31, 2025
(in millions, except per share data)	Low			High			Low			High
Forecasted net loss⁽¹⁾	$	(20.0	)	$	(18.0	)	$	(53.0	)	$	(43.0	)
Forecasted stock-based compensation		47.0			47.0			196.0			196.0
Forecasted tax impact of stock-based compensation		1.0			1.0			4.0			4.0
Forecasted acquisition-related expenses		1.5			1.5			6.0			6.0
Forecasted amortization of acquired intangible assets		6.5			6.5			25.0			25.0
Forecasted non-GAAP net income	$	36.0		$	38.0		$	178.0		$	188.0

Forecasted net loss per share, diluted⁽¹⁾	$	(0.16	)	$	(0.15	)	$	(0.44	)	$	(0.36	)
Forecasted stock-based compensation		0.39			0.39			1.62			1.62
Forecasted tax impact of stock-based compensation		0.01			0.01			0.03			0.03
Forecasted acquisition-related expenses		0.01			0.01			0.05			0.05
Forecasted amortization of acquired intangible assets		0.05			0.05			0.21			0.21
Adjustment to diluted earnings per share⁽²⁾		(0.01	)		—			(0.03	)		(0.03	)
Forecasted non-GAAP earnings per share, diluted	$	0.29		$	0.31		$	1.44		$	1.52

Forecasted weighted-average shares used to compute GAAP net loss per share, diluted		121.5			121.5			121.0			121.0
Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted		123.0			123.0			123.5			123.5

________________
(1) The forecasted GAAP net loss assumes income tax expense of $4.1 million and $16.8 million in the three months ending June 30, 2025 and year ending December 31, 2025, respectively.
(2) Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

Forecasted Free Cash Flow and Unlevered Free Cash Flow	Year Ending December 31, 2025
(in millions)	Low			High
Forecasted net cash provided by operating activities	$	256.0		$	266.0
Forecasted purchases of property and equipment		(15.0	)		(15.0	)
Forecasted capitalized software development costs		(3.0	)		(3.0	)
Forecasted free cash flow		238.0			248.0
Forecasted cash paid for interest and other financing costs		27.0			27.0
Forecasted unlevered free cash flow	$	265.0		$	275.0

The MIL Network –

April 30, 2025

MIL-OSI Security: Fourteen Members of a Jefferson County Drug Trafficking Organization Charged with Federal Drug and Gun Crimes

Source: Office of United States Attorneys

BIRMINGHAM, Ala. – An indictment charging 14 defendants in a drug trafficking conspiracy involving fentanyl, methamphetamine, cocaine, marijuana, and heroin was unsealed today. Eight of the defendants were arrested today and five defendants were already in custody on other offenses, announced U.S. Attorney Prim F. Escalona.

A 59-count indictment filed in U.S. District Court charges Eddie Jerry Jones, a.k.a. “Boss,” 47, of Fairfield, Alabama, Marcus Dewayne Johnson, a.k.a. “Moon,” 56, of Hoover, Alabama, Larry Denzel Rollins, Jr., a.k.a. “King” and “Blo,” 25, of Forestdale, Alabama, LaNicholas Demarco Rollins, 30, of Forestdale, Alabama, Zachary Holmes, a.k.a. “Stakks,” 31, of Birmingham, David Will Jones, 47, of Fairfield, Alabama, Juan Miguel Nation, 21, of Birmingham, Juan Pierre Nation, 50, of Birmingham, Cordero Reid, a.k.a. “Kojacc” 36, of Birmingham, Demetrius Emmanuel Preyer, 48, of Pleasant Grove, Alabama, Devante Marquis McKinney, a.k.a. “The Barber,” 37, of Birmingham, Marcus Orlandeo Bogus, a.k.a. “The Mechanic,” 55, of Center Point, Alabama, and Otis Kenneth Myree Hudson, 33, of Birmingham, with conspiracy to distribute methamphetamine, fentanyl, cocaine base or “crack” cocaine, cocaine, heroin, and marijuana between January 2021 and March 2025. The indictment also charges all defendants with at least one count of using a telephone to facilitate a drug-trafficking crime.

McKinney and Rollins, Jr. are also charged with possession of a firearm in furtherance of a drug trafficking crime. The minimum prison sentence for this charge is five years in custody, and the sentence must be served after the completion of any other sentence related to the crime.

Eddie Jones is also charged with being a felon in possession of a firearm. The maximum penalty for this offense is 15 years.

Eddie Jones, Rollins, Jr, and Holmes were in custody on capital murder charges pending in the Circuit Court of Jefferson County, Alabama. David Jones was in federal custody on pending federal supervised release violations. Reid is serving a life sentence in the Alabama Department of Corrections’ Fountain Correctional Facility for Attempted Murder.

The maximum penalty for conspiracy and possession with intent to distribute a controlled substance is life in prison.

Each count of using a telephone to facilitate a drug-trafficking crime carries a maximum penalty of four years in prison.

The indictment also includes special findings of the grand jury regarding the amount of narcotics attributable to various defendants as part of the drug-trafficking conspiracy.

“My office, along with our federal, state, and local partners, are committed to relentlessly investigate and prosecute drug trafficking organizations in our District, particularly those that distribute deadly fentanyl into the community and use firearms to commit their crimes,” U.S. Attorney Escalona said. “This case involved an immense amount of collaboration and dedication from our law enforcement partners and underscores the impact of the OCDETF program’s multi-agency approach.”

“The 59-count indictment underscores the unwavering commitment of the DEA and our law enforcement partners to dismantle drug trafficking networks that threaten our communities,” said DEA Special Agent in Charge Steven Hofer. “While these charges were filed in the Northern District of Alabama, the ripple effects of such widespread drug distribution reach far beyond those borders. We will continue to work tirelessly to hold accountable those who seek profit from the sale of these dangerous substances and bring them to justice.”

“Drug trafficking and the prevalence of gun violence continue to plague the United States at alarming rates,” said ATF Acting Special Agent in Charge Jason Stankiewicz. “The ATF will continue to work with our state, local, and federal law enforcement partners to aggressively investigate and charge those individuals who commit violent acts and distribute large amounts of narcotics throughout the communities that we serve.”

“Criminals trafficking illegal drugs in our communities have a profound negative effect on Americans’ quality of life,” said Special Agent in Charge Demetrius Hardeman, IRS-CI Atlanta Field Office. “The 59-count indictment filed today is an outcome of IRS Criminal Investigation special agents, our law enforcement partners and the U.S. Attorney’s Office working together to break up drug trafficking organizations that pose a threat to the United States.”

“Today’s actions demonstrate the FBI’s persistence in combating violent crime in our communities,” said FBI Birmingham Acting Special Agent in Charge Christopher DiMenna. “We will continue to strengthen and grow our federal, state, and local partnerships to meet our mission and to ensure the safety and security of the American people.”

“Today’s indictments reflect the commitment and collaboration of our law enforcement partners to disrupt and dismantle major drug-trafficking networks that threaten the safety of our communities,” said Birmingham Chief of Police Michael Pickett. “We will continue to pursue those who distribute dangerous narcotics with relentless focus and determination. I commend the dedication of all the investigators, agents, and prosecutors who made this operation a success.”

The DEA, ATF, IRS, FBI, and the Birmingham Police Department Narcotics and Homicide units investigated the case, along with assistance from the United States Marshals Service, United States Secret Service, United States Postal Inspection Service, Alabama Department of Corrections, Hoover Police Department, and Jefferson County Sheriff’s Office. Assistant U.S. Attorneys Allison J. Garnett, Brett A. Janich, and Kristy M. Peoples are prosecuting the case.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.

MIL Security OSI –

April 30, 2025

MIL-OSI USA: Luján: President Trump’s First 100 Days Have Brought Costs, Chaos, and Corruption

US Senate News:

Source: United States Senator Ben Ray Luján (D-New Mexico)
100 Days In, President Trump’s Approval Rating At A Historic Low
Washington, D.C. – Today, U.S. Senator Ben Ray Luján (D-N.M.) issued the following statement in response to President Trump’s first 100 days in office:
“In just 100 days, President Trump has driven up costs for New Mexicans, attacked essential programs like Social Security, and put our nation’s public health at risk. The American people are rejecting the increased costs, chaos, and corruption caused by this administration. I’ve heard from New Mexicans in every corner of our state who are deeply concerned about their livelihoods due to these reckless policies and hateful politics.
“Since day one, I’ve made it clear that I will stand up to protect New Mexicans from this administration’s harmful attacks. Over the past 100 days, I’ve fought for everyday New Mexicans — our teachers, farmers, postal workers, restaurant workers, parents, and veterans.
“I opposed the Republican budget that slashes essential programs like Medicaid and SNAP to fund another Tax Scam, defended Social Security, and pushed for urgent action to protect public health. With Elon Musk’s unprecedented control over the federal government — and his firing of hardworking New Mexicans — I have stood with my Democratic colleagues to hold him accountable and expose wrongdoing.
“My commitment is to all New Mexicans. I will continue working to lower costs for families, protect essential programs like Social Security, Medicaid, and SNAP, and defend the rule of law.”
More information on how Senator Luján is standing up for New Mexicans can be found here.

MIL OSI USA News –

April 30, 2025

MIL-OSI USA: California Man Pleads Guilty to Operating an Illegal Gambling Business, Tax Evasion, and Money Laundering

Source: US State Government of Utah

A California man pleaded guilty today to operating an illegal gambling business, tax evasion, and money laundering.

According to court documents and statements made in court, Christopher Scott King, of Santa Monica, California, operated an illegal bookmaking business. Working out of Los Angeles County, King used a sports betting website based in Costa Rica to facilitate bettors wagering on sporting events in violation of both California state and federal law.

King also evaded his taxes. Between 2019 and 2022, King concealed $13,586,493 of income from the IRS by, among other things, not reporting all of his income on his tax returns. On his 2022 income tax return, for example, King reported $143,258 in taxable income, but, in reality, he earned more than $5 million in income that year.

King laundered his money by channeling it through real estate development projects and gold. King also used money he received from his illegal gambling business to fund his brokerage and financial accounts. As part of his plea agreement, King has agreed to pay $10 million in a personal money judgment of forfeiture at the time of sentencing.

In total, King caused a tax loss to the IRS of $3,804,218.

King is scheduled to be sentenced on Sept. 9 and faces a maximum penalty of five years in prison for each count of tax evasion, operating an illegal gambling operation, and accepting a financial instrument for unlawful internet gambling, and 10 years in prison for money laundering. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Bilal A. Essayli for the Central District of California made the announcement.

IRS Criminal Investigation’s International Tax and Financial Crimes group and Homeland Security Investigations are investigating the case.

Trial Attorneys John C. Gerardi and Charles A. O’Reilly of the Tax Division are prosecuting the case.

MIL OSI USA News –

April 30, 2025

MIL-OSI USA: Arizona Man Sentenced to Prison for COVID-19 and Tax Fraud

Source: US State Government of Utah

Defendant Used Another’s Identity to File More Than $7 Million in False Refund Claims with the IRS.

An Arizona man was sentenced to 4 years in prison for filing false tax returns and loan applications to obtain COVID-19 disaster relief.

According to court documents and evidence presented in court, to create the appearance that he was operating several businesses, Roy Layne of St. David, Arizona filed paperwork with the IRS, applied for a business license from the City of Tuscon, opened business bank accounts, and filed false employment-related tax returns. In April 2020, he filed an application with the U.S. Small Business Administration, that claimed he operated a “wholesale” business with 17 employees that had revenue of more than half a million dollars a year. In 2021, he submitted a false application for a Paycheck Protection Act Loan, claiming that same “wholesale” business had 31 employees, and $1.2 million in revenue. Layne ultimately received $306,700 in COVID-19 related loans to which he was not entitled.

In addition, Layne used the personal identifying information and identity of another person to file false claims for refunds with the IRS. In total, Layne claimed over $7.4 million in false refunds, of which the IRS paid $590,000.

In addition to the term of imprisonment, U.S. District Judge John C. Hinderaker ordered Layne to serve three years of supervised release and to pay $856,692.91 in restitution to the United States.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Interim U.S. Attorney Timothy Courchaine of the District of Arizona made the announcement.

IRS Criminal Investigation and the Federal Bureau of Investigation are conducting the investigation.

Trial Attorney Matthew R. Hoffman of the Tax Division and Assistant U.S. Attorney Mary Sue Feldmeier of the District of Arizona are prosecuting the case.

MIL OSI USA News –

April 30, 2025

Category: Taxation