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MIL-OSI: AvidXchange Announces Fourth Quarter & Full Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Healthy revenue growth coupled with gross and operating margin improvement drives strong year over year fourth quarter and full year 2024 financial results
2024 GAAP earnings per share swings positive with net cash provided by operating activities up more than eight-fold to $71.9 million
Disciplined capital allocation highlighted by paydown of high-interest bank-debt and repurchase of $50 million out of the $100 million authorized in 2024
Sustained strong balance sheet with cash and marketable securities of $389.3 million with $9.1 million of long-term debt at year end 2024
2025 business outlook reflects continued progress on margin expansion on a choppy macro backdrop

CHARLOTTE, N.C., Feb. 26, 2025 (GLOBE NEWSWIRE) — AvidXchange Holdings, Inc. (Nasdaq: AVDX), a leading provider of accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers, today announced financial results for the fourth quarter and full year-ended December 31, 2024.

“We are very pleased with our financial results, ending 2024 on solid financial footing. 2024 saw non-GAAP gross margin expansion to 73.6% from 69.4% in 2023, while adjusted EBITDA margins grew to 19.3% from 8.0% on the back of strong operating leverage. We remain in a strong financial position due to the strong execution on our transformational value proposition of accounts payable and payments automation aimed at our middle market buyer customers and their supplier customers through our proprietary two-sided network. With AvidXchange’s best-of-breed solution, we aim to unlock efficiency, visibility and control for our buyer customers’ procure-to-pay process, while advancing efficiency, predictability and support for our supplier customers’ order to cash needs. While we expect to see continued margin expansion in 2025, we are also anticipating that continued macro headwinds will impact revenue growth. That said, given the ERP integration and strategic partnerships signed in 2024, as the ones signed in 2023 begin to scale, combined with the ramp of our differentiated products such as Payment Accelerator 2.0 and Pay 2.0 as we seek to continue to leverage AI across our business ecosystem, we believe we are continuing to strengthen our competitive position while laying the building blocks for operating performance momentum as the year progresses, thereby advancing our growth, profit and value creation objectives,” said Michael Praeger, Chief Executive Officer & Co-Founder of AvidXchange.

Fourth Quarter 2024 Financial Highlights:

Total revenue was $115.4 million, an increase of 10.9% year-over-year, compared with $104.1 million in the fourth quarter of 2023.
Revenue included interest income of $12.2 million compared with $13.7 million in the fourth quarter of 2023.
GAAP net income was $4.7 million, compared with a GAAP net loss of $(4.5) million in the fourth quarter of 2023.
Non-GAAP net income was $17.3 million, compared with $9.4 million in the fourth quarter of 2023.
GAAP gross profit was $78.8 million, or 68.2% of total revenue, compared with $67.3 million, or 64.6% of revenue in the fourth quarter of 2023.
Non-GAAP gross profit was $86.4 million, or 74.9% of total revenue, compared with $74.4 million, or 71.4% of revenue in the fourth quarter of 2023.
Adjusted EBITDA was $26.3 million compared with $15.6 million in the fourth quarter of 2023.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Measures and Other Performance Metrics.”

Fourth Quarter 2024 Key Business Metrics and Highlights:

Total transactions processed in the fourth quarter of 2024 were 19.9 million, an increase of 4.3% from 19.1 million in the fourth quarter of 2023.
Total payment volume in the fourth quarter of 2024 was $21.9 billion, an increase of 10.0% from $19.9 billion in the fourth quarter of 2023.
Transaction yield in the fourth quarter of 2024 was $5.80, an increase of 6.4% from $5.45 in the fourth quarter of 2023.

Full Year 2025 Financial Outlook

As of February 26, 2025, AvidXchange anticipates its Full Year 2025 revenue, adjusted EBITDA and Non-GAAP diluted earnings per share (EPS) to be in the following ranges (in millions, except per share data):

			Current FY 2025 Guidance
		Revenue ^(1&2)	$453.0 – $460.0
		Adjusted EBITDA^(1,2&3)	$86.0 – $91.0
		Non-GAAP Diluted EPS⁽³⁾	$0.25 – $0.27

(1)	The current FY 2025 guidance anticipates interest revenue contribution of approximately $44.0 million compared to $49.7 million in 2024.
(2)	The current FY 2025 guidance does not anticipate political revenues compared to approximately $6.6 million in 2024.
(3)	Reconciliation of adjusted EBITDA to GAAP net loss and Non-GAAP diluted EPS to basic and diluted EPS on a forward-looking basis is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the items excluded from the non-GAAP measures.

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

Earnings Teleconference Information
AvidXchange will discuss its fourth quarter & full year 2024 financial results during a teleconference today, February 26, 2025, at 10:00 AM ET. The call will be broadcast simultaneously via webcast at https://ir.avidxchange.com/. Following the completion of the call, a recorded replay of the webcast will be available on AvidXchange’s website. In addition to the conference call, supplemental information is available on the Investor Relations section of AvidXchange’s website at https://ir.avidxchange.com/.

About AvidXchange™
AvidXchange is a leading provider of accounts payable (“AP”) automation software and payment solutions for middle market businesses and their suppliers. AvidXchange’s software-as-a-service-based, end-to-end software and payment platform digitizes and automates the AP workflows for more than 8,500 businesses and it has made payments to more than 1,350,000 supplier customers of its buyers over the past five years. To learn more about how AvidXchange is transforming the way companies pay their bills, visit www.AvidXchange.com.

Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements generally relate to future events or our future financial or operating performance and often contain words such as: “anticipate,” “assume,” “intend,” “aim,” “plan,” “goal,” “seek,” “believe,” “outlook,” “project,” “estimate,” “expect,” “future,” “likely,” “may,” “should,” “continue,” “will” and similar words and phrases indicating future results. The information presented or statements made in this press release, or during the earnings call, related to our beliefs and expectations of future performance, including our plans, strategies and financial performance; our 2025 guidance including our expected revenue, Adjusted EBITDA, and Non-GAAP Diluted EPS for the full year 2025; the solid footing and continued strength of our financial position, operating leverage, and execution on behalf of buyers and suppliers; the macroeconomic outlook and potential impacts within verticals in which we have domain expertise; expectations regarding margin expansion, scalability, value, opportunity size, transformational aspect of impacts, penetration, and momentum derived from our integration and strategic partnerships and our new and existing products, services, and systems; our ability to leverage AI within our operations, products, and services; our competitive position including our customers’ perceptions of the value proposition of our AP automation software and payments services; the impact of our operating priorities on our potential growth and margin expansion; our ability to improve the customer experience across our suite of products and services; the timing of revenue impacts; and other statements that are not purely statements of historical fact, are forward-looking in nature. These forward-looking statements are made on the basis of management’s current expectations, assumptions, estimates and projections and are subject to significant risks and uncertainties that could cause actual results to differ materially from those anticipated in such forward-looking statements. We therefore cannot guarantee future results, performance or achievements.

Factors which could cause actual results or effects to differ materially from those reflected in forward-looking statements include, but are not limited to, the risk factors and other cautionary statements described, from time to time, in AvidXchange’s filings with the Securities and Exchange Commission (“SEC”), including, without limitation, AvidXchange’s Annual Report on Form 10-K and other documents filed with the SEC, which may be obtained on the investor relations section of our website (https://ir.avidxchange.com/) and on the SEC website at www.sec.gov. Any forward-looking statements made by us in this press release are based only on information currently available to us and speak only as of the date they are made, and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.

Non-GAAP Measures and Other Performance Metrics
To supplement the financial measures presented in our press release and related conference call in accordance with generally accepted accounting principles in the United States (“GAAP”), we also present the following non-GAAP measures of financial performance: Non-GAAP Gross Profit, Non-GAAP Gross Margin, Adjusted EBITDA, Non-GAAP Net Income (Loss) and Non-GAAP Earnings Per Share.

A “non-GAAP financial measure” refers to a numerical measure of our historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in our financial statements. We provide certain non-GAAP measures as additional information relating to our operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies.

We have presented Non-GAAP Gross Profit, Adjusted EBITDA, Non-GAAP Net Income (Loss) and Non-GAAP Earnings Per Share in this press release. We define Non-GAAP Gross Profit & Gross Margin as revenue less cost of revenue excluding the portion of depreciation and amortization and stock-based compensation expense allocated to cost of revenues. We define Adjusted EBITDA as our net loss before depreciation and amortization, impairment and write-off of intangible assets, interest income and expense, income tax expense (benefit), stock-based compensation expense, transaction and acquisition-related costs expensed, change in fair value of derivative instrument, non-recurring items not indicative of ongoing operations, and charitable contributions of common stock. We define Non-GAAP Net Income (Loss) as net loss before amortization of acquired intangible assets, impairment and write-off of intangible assets, stock-based compensation expense, transaction and acquisition-related costs expensed, change in fair value of derivative instrument, non-recurring items not indicative of ongoing operations, acquisition-related effects on income tax, and charitable contributions of common stock. Non-GAAP income tax expense is calculated using our blended statutory rate except in periods of non-GAAP net loss when it is based on our GAAP income tax expense. In each case, non-GAAP income tax expense excludes the effects of acquisitions in the period on tax expense. We define Non-GAAP Earnings per Share as Non-GAAP Net Income (Loss) per diluted share.

We believe the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance.

Availability of Information on AvidXchange’s Website
Investors and others should note that AvidXchange routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations section of AvidXchange’s website. While not all information that AvidXchange posts to the Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, AvidXchange encourages investors, the media and others interested in AvidXchange to review the information that it shares at the Investor Relations link located at https://ir.avidxchange.com. Users may automatically receive email alerts and other information about AvidXchange when enrolling an email address by visiting “Email Alerts” in the “Resources” section of AvidXchange’s Investor Relations website https://ir.avidxchange.com.

Investor Contact:

Subhaash Kumar
Skumar1@avidxchange.com
813.760.2309


AvidXchange Holdings, Inc. Consolidated Statements of Operations (in thousands, except share and per share data)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Revenues	$	115,438		$	104,064		$	438,940		$	380,720
Cost of revenues (exclusive of depreciation and amortization expense)		30,593			30,846			121,781			121,307
Operating expenses
Sales and marketing		21,730			18,577			82,529			77,523
Research and development		25,073			24,939			101,110			97,555
General and administrative		26,862			26,579			99,526			101,924
Impairment and write-off intangible assets		124			–			286			–
Depreciation and amortization		8,677			9,397			36,284			35,912
Total operating expenses		82,466			79,492			319,735			312,914
Loss from operations		2,379			(6,274	)		(2,576	)		(53,501	)
Other income (expense)
Interest income		4,595			6,070			22,973			20,890
Interest expense		(2,057	)		(3,413	)		(11,331	)		(13,519	)
Other income (expense)		2,538			2,657			11,642			7,371
Income (loss) before income taxes		4,917			(3,617	)		9,066			(46,130	)
Income tax expense		246			856			921			1,195
Net income (loss)	$	4,671		$	(4,473	)	$	8,145		$	(47,325	)
Net income (loss) per share attributable to common stockholders:
Basic	$	0.02		$	(0.02	)	$	0.04		$	(0.23	)
Diluted	$	0.02		$	(0.02	)	$	0.04		$	(0.23	)
Weighted average number of common shares used to compute net income (loss) per share attributable to common stockholders:
Basic		205,223,697			203,517,119			206,096,505			201,887,669
Diluted		207,252,025			203,517,119			209,158,393			201,887,669


AvidXchange Holdings, Inc. Consolidated Balance Sheets (in thousands, except share and per share data)

	As of December 31,
	2024			2023
Assets
Current assets
Cash and cash equivalents	$	355,637		$	406,974
Restricted funds held for customers		1,250,346			1,578,656
Marketable securities		33,663			44,645
Accounts receivable, net of allowances of $4,279 and $4,231, respectively		51,671			46,689
Supplier advances receivable, net of allowances of $1,644 and $1,333, respectively		14,080			9,744
Prepaid expenses and other current assets		15,317			12,070
Total current assets		1,720,714			2,098,778
Property and equipment, net		97,592			100,985
Operating lease right-of-use assets		–			1,628
Deferred customer origination costs, net		28,119			27,663
Goodwill		165,921			165,921
Intangible assets, net		71,068			84,805
Other noncurrent assets and deposits		6,297			3,957
Total assets	$	2,089,711		$	2,483,737
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	15,494		$	16,777
Accrued expenses		46,849			56,367
Payment service obligations		1,250,346			1,578,656
Deferred revenue		13,967			12,851
Current maturities of lease obligations under finance leases		103			275
Current maturities of lease obligations under operating leases		1,207			1,525
Current maturities of long-term debt		4,800			6,425
Total current liabilities		1,332,766			1,672,876
Long-term liabilities
Deferred revenue, less current portion		11,856			14,742
Obligations under finance leases, less current maturities		63,025			62,464
Obligations under operating leases, less current maturities		1,969			3,275
Long-term debt		4,300			69,760
Other long-term liabilities		3,962			4,175
Total liabilities		1,417,878			1,827,292
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.001 par value; 50,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and 2023		–			–
Common stock, $0.001 par value; 1,600,000,000 shares authorized as of December 31, 2024 and 2023; 204,335,860 and 204,084,024 shares issued and outstanding as of December 31, 2024 and 2023, respectively		204			204
Additional paid-in capital		1,685,644			1,678,401
Accumulated deficit		(1,014,015	)		(1,022,160	)
Total stockholders’ equity		671,833			656,445
Total liabilities and stockholders’ equity	$	2,089,711		$	2,483,737


AvidXchange Holdings, Inc. Consolidated Statements of Cash Flows (in thousands)

	Year Ended December 31,
	2024			2023			2022
Cash flows from operating activities
Net income (loss)	$	8,145		$	(47,325	)	$	(101,284	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization expense		36,284			35,912			32,842
Amortization of deferred financing costs		405			431			1,357
Debt extinguishment costs		1,081			–			1,579
Provision for doubtful accounts		3,508			2,957			4,989
Stock-based compensation		47,235			40,856			31,838
Accrued interest		629			728			815
Impairment and write-off on intangible and right-of-use assets		286			–			2,777
Loss on fixed asset disposal		159			–			36
Loss on ROU asset abandonment		897			–			–
Accretion of investments held to maturity		(4,062	)		(5,326	)		(2,108	)
Value of donated common stock		1,868			1,667			1,473
Deferred income taxes		187			721			216
Changes in operating assets and liabilities
Accounts receivable		(6,067	)		(8,289	)		(10,289	)
Prepaid expenses and other current assets		(3,247	)		491			(2,324	)
Other noncurrent assets		(1,208	)		1,605			(707	)
Deferred customer origination costs		(456	)		621			(8	)
Accounts payable		(1,286	)		2,862			(3,385	)
Deferred revenue		(1,771	)		(1,956	)		(330	)
Accrued expenses and other liabilities		(9,761	)		(16,981	)		14,036
Operating lease liabilities		(892	)		(523	)		(224	)
Total adjustments		63,789			55,776			72,583
Net cash provided by (used in) operating activities		71,934			8,451			(28,701	)
Cash flows from investing activities
Purchases of marketable securities held to maturity		(120,223	)		(273,995	)		(385,022	)
Proceeds from maturity of marketable securities held to maturity		135,268			345,661			276,144
Purchases of equipment		(2,063	)		(2,254	)		(3,149	)
Purchases of real estate		–			–			(767	)
Purchases of intangible assets		(17,532	)		(16,050	)		(24,655	)
Supplier advances, net		(6,760	)		(1,416	)		(2,899	)
Net cash (used in) provided by investing activities		(11,310	)		51,946			(140,348	)
Cash flows from financing activities
Proceeds from the issuance of long-term debt		–			–			67,367
Repayments of long-term debt		(68,175	)		(1,625	)		(106,390	)
Principal payments on land promissory note		–			(4,800	)		(4,800	)
Principal payments on finance leases		(298	)		(521	)		(844	)
Proceeds from issuance of common stock		5,685			1,570			1,448
Proceeds from issuance of shares under ESPP		2,563			2,233			1,570
Payment of debt issuance costs		(1,529	)		(743	)		(1,212	)
Repurchases of common stock		(50,107	)		–			–
Payment of acquisition-related liability		(100	)		(100	)		(344	)
Payment service obligations		(328,310	)		294,832			41,478
Net cash (used in) provided by financing activities		(440,271	)		290,846			(1,727	)
Net (decrease) increase in cash, cash equivalents, and restricted funds held for customers		(379,647	)		351,243			(170,776	)
Cash, cash equivalents, and restricted funds held for customers
Cash, cash equivalents, and restricted funds held for customers, beginning of year		1,985,630			1,634,387			1,805,163
Cash, cash equivalents, and restricted funds held for customers, end of year	$	1,605,983		$	1,985,630		$	1,634,387

	Year Ended December 31,
	2024		2023		2022
Supplementary information of noncash investing and financing activities
Property and equipment and intangible asset purchases in accounts payable and accrued expenses	$	4	$	675	$	400
Right-of-use assets obtained in exchange for new finance lease obligations		–		81		712
Right-of-use assets obtained in exchange for new operating lease obligations		–		362		2,831
Common stock issued as contingent consideration		–		–		344
Interest paid on notes payable		4,360		6,510		12,880
Interest paid on finance leases		5,941		5,857		5,774
Cash paid for income taxes		1,046		304		125


AvidXchange Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures

	Three Months Ended December 31,						Year Ended December 31,
Reconciliation from Revenue to Non-GAAP Gross Profit and Non-GAAP Gross Margin	2024			2023			2024			2023
(in thousands, except percentages)
Total revenues	$	115,438		$	104,064		$	438,940		$	380,720
Expenses:
Cost of revenues (exclusive of depreciation and amortization expense)		(30,593	)		(30,846	)		(121,781	)		(121,307	)
Depreciation and amortization expense		(6,063	)		(5,949	)		(24,138	)		(22,106	)
GAAP Gross profit	$	78,782		$	67,269		$	293,021		$	237,307
Adjustments:
Stock-based compensation expense		1,594			1,135			6,104			4,687
Depreciation and amortization expense		6,063			5,949			24,138			22,106
Non-GAAP gross profit	$	86,439		$	74,353		$	323,263		$	264,100
GAAP Gross margin		68.2	%		64.6	%		66.8	%		62.3	%
Non-GAAP gross margin		74.9	%		71.4	%		73.6	%		69.4	%


AvidXchange Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures (Continued)

	Three Months Ended December 31,						Year Ended December 31,
Reconciliation from Net Income (Loss) to Non-GAAP Net Income	2024			2023			2024			2023
(in thousands)
Net income (loss)	$	4,671		$	(4,473	)	$	8,145		$	(47,325	)
Exclude: Provision for income taxes		246			856			921			1,195
Income (loss) before taxes		4,917			(3,617	)		9,066			(46,130	)
Amortization of acquired intangible assets		2,910			3,623			13,150			14,493
Impairment and write-off of intangible assets		124			–			286			–
Stock-based compensation expense		12,107			9,675			47,235			40,856
Transaction and acquisition-related costs ⁽¹⁾		290			–			1,371			(7	)
Non-recurring items not indicative of ongoing operations ⁽²⁾		861			1,133			252			5,541
Charitable contribution of stock		1,868			1,667			1,868			1,667
Total net adjustments		18,160			16,098			64,162			62,550
Non-GAAP income before taxes		23,077			12,481			73,228			16,420
Non-GAAP tax expense ⁽³⁾	$	5,746		$	3,108		$	18,234		$	4,089
Non-GAAP net income	$	17,331		$	9,373		$	54,994		$	12,331

Weighted-average shares used to compute Non-GAAP net income per share attributable to common stockholders, basic		205,223,697			203,517,119			206,096,505			201,887,669
Weighted-average shares used to compute Non-GAAP net income per share attributable to common stockholders, diluted		207,252,025			207,367,561			209,158,393			205,579,485

GAAP Net income (loss) per share attributable to common stockholders, basic	$	0.02		$	(0.02	)	$	0.04		$	(0.23	)
GAAP Net income (loss) per share attributable to common stockholders, diluted	$	0.02		$	(0.02	)	$	0.04		$	(0.23	)

Non-GAAP basic net income per share attributable to common stockholders, basic	$	0.08		$	0.05		$	0.27		$	0.06
Non-GAAP basic net income per share attributable to common stockholders, diluted	$	0.08		$	0.05		$	0.26		$	0.06

GAAP income (loss) per common share, basic and diluted	$	0.02		$	(0.02	)	$	0.04		$	(0.23	)
Amortization of acquired intangible assets		0.01			0.02			0.06			0.07
Impairment and write-off of intangible assets		–			–			–			–
Stock-based compensation expense		0.06			0.05			0.23			0.20
Transaction and acquisition-related costs ⁽¹⁾		–			–			0.01			–
Non-recurring items not indicative of ongoing operations ⁽²⁾		–			0.01			–			0.03
Charitable contribution of stock		0.01			0.01			0.01			0.01
Provision for income taxes		(0.03	)		(0.01	)		(0.08	)		(0.01	)
Adjustment to fully diluted earnings per share		0.01			(0.01	)		(0.01	)		(0.01	)
Non-GAAP diluted income per common share	$	0.08		$	0.05		$	0.26		$	0.06


AvidXchange Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures (Continued)

	Three Months Ended December 31,						Year Ended December 31,
Reconciliation of Net Income (Loss) to Adjusted EBITDA	2024			2023			2024			2023
(in thousands)
Net income (loss)	$	4,671		$	(4,473	)	$	8,145		$	(47,325	)
Depreciation and amortization		8,677			9,397			36,284			35,912
Impairment and write-off intangible assets		124			–			286			–
Interest income		(4,595	)		(6,070	)		(22,973	)		(20,890	)
Interest expense		2,057			3,413			11,331			13,519
Provision for income taxes		246			856			921			1,195
Stock-based compensation expense		12,107			9,675			47,235			40,856
Transaction and acquisition-related costs ⁽¹⁾		290			–			1,371			(7	)
Non-recurring items not indicative of ongoing operations ⁽²⁾		861			1,133			252			5,541
Charitable contribution of stock		1,868			1,667			1,868			1,667
Adjusted EBITDA	$	26,306		$	15,598		$	84,720		$	30,468

	As of and for the Year Ending December 31,
Annual Metrics	2024		2023		2022
Total payment volume (in millions)	$	83,842	$	75,922	$	68,202
Transactions		79,123,540		75,330,634		70,168,806
Buyers ⁽⁴⁾		8,500		8,000		7,400
Suppliers paid over the past 5 years		1,350,000		1,200,000		965,000

⁽¹⁾ For the three and twelve months ended December 31, 2024, this amount is comprised of debt issuance costs written-off related to the repayment of the Company’s term loan.
⁽²⁾ For the year ended December 31, 2024, this amount includes $1,157 of severance costs and a net benefit of $1,808 of response costs incurred in connection with the cybersecurity incident that was detected in April 2023 in addition to $707 of net costs related to lease abandonment and other real estate related amounts. For the three months ended December 31, 2023, this amount is primarily comprised of $1,880 of restructuring costs, $507 of insurance recoveries related to the cybersecurity incident that was detected in April 2023, and $176 benefit from the adjustment of accruals related to costs incurred in connection with the cybersecurity incident. For the year ended December 31, 2023, this amount is primarily comprised of $3,698 of response costs, including professional services and legal fees, incurred in connection with the cybersecurity incident, net of insurance recoveries and $1,880 of restructuring costs.
⁽³⁾ Non-GAAP tax expense is based on the Company’s blended tax rate of 24.9 in periods the Company has Non-GAAP income before tax. In periods the Company is in a non-GAAP loss position, tax expense is based on GAAP tax expense.
⁽⁴⁾ Excludes Create-a-Check customers

The MIL Network –

February 27, 2025

MIL-OSI: ACM Research Reports Fourth Quarter and Fiscal Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

FREMONT, Calif., Feb. 26, 2025 (GLOBE NEWSWIRE) — ACM Research, Inc. (“ACM”) (NASDAQ: ACMR), a leading supplier of wafer processing solutions for semiconductor and advanced packaging applications, today reported financial results for its fourth quarter and fiscal year ended December 31, 2024.

“2024 was a year of strong execution for ACM. We expanded our product portfolio and broadened the addressable markets we serve,” said ACM’s President and Chief Executive Officer, Dr. David Wang. “We grew revenue by 40% and total shipments by 63%. We gained additional market share by capitalizing on product cycles and deepening engagements with key customers, demonstrating the strength of our multi-product portfolio. Our operating profit increased by 57.6%, and we generated $152 million in cash flow from operations.”

Dr. Wang continued, “In the fourth quarter, we achieved two major operational milestones. First, we achieved process qualification of our Thermal and Plasma-Enhanced ALD furnace tools at two semiconductor customers in mainland China. Second, we commenced initial operations at our Lingang production facility, and we are on track to transition additional capacity to Lingang as we progress through the year.”

Dr. Wang concluded, “Looking ahead to 2025, we remain focused on expanding our business with incremental revenue contribution from Tahoe, SPM, and Furnace, additional customer evaluations for both Track and PECVD, increasing localization in China, and contributions from our expanding global footprint. Regarding the addition of our subsidiaries to the U.S. Entity List, we believe the impact on the ability of ACM Research (Shanghai) to produce tools will be manageable, and that we can continue to support our global customer base.”

	Three Months Ended December 31,
	GAAP						Non-GAAP(1)
		2024			2023			2024			2023
	(dollars in thousands, except EPS)
Revenue	$	223,471		$	170,321		$	223,471		$	170,321
Gross margin		49.6	%		46.4	%		49.8	%		46.8	%
Income from operations	$	43,989		$	23,374		$	52,773		$	36,046
Net income attributable to ACM Research, Inc.	$	31,080		$	17,700		$	37,740		$	28,681
Basic EPS	$	0.49		$	0.29		$	0.60		$	0.47
Diluted EPS	$	0.46		$	0.26		$	0.56		$	0.43

		Twelve Months Ended December 31,
		GAAP						Non-GAAP(1)
			2024			2023			2024			2023
		(dollars in thousands, except EPS)
Revenue		$	782,118		$	557,723		$	782,118		$	557,723
Gross margin			50.1	%		49.5	%		50.4	%		49.8	%
Income from operations		$	150,998		$	95,839		$	200,574		$	123,177
Net income attributable to ACM Research, Inc.		$	103,627		$	77,349		$	152,230		$	107,424
Basic EPS		$	1.67		$	1.29		$	2.45		$	1.79
Diluted EPS		$	1.53		$	1.16		$	2.26		$	1.63

(1)	Reconciliations to U.S. generally accepted accounting principles (“GAAP”) financial measures from non-GAAP financial measures are presented below under “Reconciliation of GAAP to Non-GAAP Financial Measures.” Non-GAAP financial measures exclude stock-based compensation and, with respect to net income (loss) attributable to ACM Research, Inc. and basic and diluted earnings per share, also exclude unrealized gain (loss) on short-term investments.

Outlook

ACM is maintaining its revenue guidance range of $850 million to $950 million for fiscal year 2025. This expectation is based on ACM management’s current assessment of the continuing impact from international trade policy, together with various expected spending scenarios of key customers, supply chain constraints, and the timing of acceptances for first tools under evaluation in the field, among other factors. We have updated our long-term business model to a gross margin target range of 42% to 48%, versus the prior range of 40% to 45%.

Operating Highlights and Recent Announcements

Shipments. Total shipments in 2024 were $973 million, up 63.1%. Total shipments in the fourth quarter of 2024 were $264 million, versus $140 million in the fourth quarter of 2023. Total shipments include deliveries for revenue in the quarter and deliveries of first tool systems awaiting customer acceptance for potential revenue in future quarters.
Thermal and Plasma-Enhanced ALD furnace tools achieved process qualification. ACM announced the achievement of process qualification of its Ultra Fn A Plasma-Enhanced Atomic Layer Deposition (PEALD) and Thermal Atomic Layer Deposition (Thermal ALD) Furnace tools at two mainland China semiconductor customers.

Full Year 2024 Financial Summary

Unless otherwise noted, the following figures refer to the full year of 2024 and comparisons are with the full year of 2023.

Revenue was $782.1 million, up 40.2%, reflecting higher sales of single wafer cleaning, Tahoe and semi-critical cleaning equipment and ECP (front-end and packaging), furnace and other technologies, along with steady growth of advanced packaging (excluding ECP), services & spares.
Gross margin was 50.1% versus 49.5%. Non-GAAP gross margin, which excludes stock-based compensation, was 50.4% versus 49.8%. Gross margin exceeded ACM’s updated long-term business model target range of 42% to 48%. ACM expects gross margin to vary from period to period due to a variety of factors, such as product mix, currency impacts and sales volume.
Operating expenses were $240.6 million, an increase of 33.4%. Operating expenses as a percentage of revenue decreased to 30.8% from 32.3%. Non-GAAP operating expenses, which exclude the effect of stock-based compensation, were $193.4 million, up 25.2%. Non-GAAP operating expenses as a percentage of revenue were 24.7% compared to 27.7%.
Operating income was $151.0 million, up 57.6% compared to $95.8 million. Operating margin increased from 17.2% to 19.3%. Non-GAAP operating income, which excludes the effect of stock-based compensation, was $200.6 million, up 62.8% compared to 123.2 million. Non-GAAP operating margin, which excludes stock-based compensation, was 25.6% compared to 22.1%.
Unrealized gain (loss) on short-term investments was $1.0 million, compared to an unrealized gain (loss) of $(2.7) million. Unrealized gain (loss) reflects the change in market value of the investments by ACM’s principal operating subsidiary, ACM Research (Shanghai), Inc. The value is marked-to-market quarterly and is excluded in the non-GAAP financial metrics.
Income tax expense was $35.0 million, compared to $19.4 million.
Net income attributable to ACM Research, Inc. was $103.6 million, compared to $77.3 million. Non-GAAP net income attributable to ACM Research, Inc., which excludes the effect of stock-based compensation and unrealized gain (loss) on short-term investments, was $152.2 million, compared to $107.4 million.
Net income per diluted share attributable to ACM Research, Inc. was $1.53, compared to $1.16. Non-GAAP net income per diluted share, which excludes the effect of stock-based compensation and unrealized gain (loss) on short-term investments, was $2.26, compared to $1.63.
Cash and cash equivalents, plus restricted cash and short-term and long-term time deposits were $441.9 million at December 31, 2024, compared to $369.1 million at September 30, 2024.

Fourth Quarter 2024 Financial Summary

Unless otherwise noted, the following figures refer to the fourth quarter of 2024 and comparisons are with the fourth quarter of 2023.

Revenue was $223.5 million, up 31.2%, reflecting higher sales of single wafer cleaning, Tahoe and semi-critical cleaning equipment and ECP (front-end and packaging), furnace and other technologies, along with steady sales growth of advanced packaging (excluding ECP), services & spares.
Gross margin was 49.6% versus 46.4%. Non-GAAP gross margin, which excludes stock-based compensation, was 49.8% versus 46.8%. Gross margin was at the upper end of ACM’s updated long-term business model target range of 42% to 48%. ACM expects gross margin to vary from period to period due to a variety of factors, such as product mix, currency impacts and sales volume.
Operating expenses were $66.8 million, an increase of 20.0%. Operating expenses as a percentage of revenue decreased to 29.9% from 32.7%. Non-GAAP operating expenses, which exclude the effect of stock-based compensation, were $58.4 million, up 34.0%. Non-GAAP operating expenses as a percentage of revenue increased to 26.1% from 25.6%.
Operating income was $44.0 million, up 88.2% compared to $23.4 million. Operating margin was 19.7% compared to 13.7%. Non-GAAP operating income, which excludes the effect of stock-based compensation, was $52.8 million, up 46.4% compared to $36.0 million. Non-GAAP operating margin, which excludes stock-based compensation, was 23.6% compared to 21.2%.
Unrealized gain on short-term investments was $2.1 million, compared to an unrealized gain of $1.7 million. Unrealized gain reflects the change in market value of the investments by ACM’s principal operating subsidiary, ACM Research (Shanghai), Inc. The value is marked-to-market quarterly and is excluded in the non-GAAP financial metrics.
Income tax expense was $17.3 million, compared to $8.1 million.
Net income attributable to ACM Research, Inc. was $31.1 million, compared to $17.7 million. Non-GAAP net income attributable to ACM Research, Inc., which excludes the effect of stock-based compensation and unrealized gain on short-term investments, was $37.7 million, compared to $28.7 million.
Net income per diluted share attributable to ACM Research, Inc. was $0.46, compared to $0.26. Non-GAAP net income per diluted share, which excludes the effect of stock-based compensation and unrealized gain on short-term investments, was $0.56, compared to $0.43.

Conference Call Details

A conference call to discuss results will be held on Wednesday, February 26, 2025, at 8:00 a.m. Eastern Time (9:00 p.m. China Time). To join the conference call via telephone, participants must use the following link to complete an online registration process. Upon registering, each participant will receive email instructions to access the conference call, including dial-in information and a PIN number allowing access to the conference call. This pre-registration process is designed by the operator to reduce delays due to operator congestion when accessing the live call.

Online Registration: https://register.vevent.com/register/BI70ae79d80e0348a880269ad7a9dec2f9

Participants who have not pre-registered may join the webcast by accessing the link at ir.acmrcsh.com/events.

A live and archived webcast will be available on the Investors section of the ACM website at www.acmrcsh.com.

Use of Non-GAAP Financial Measures

ACM presents non-GAAP gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc. and basic and diluted earnings per share as supplemental measures to GAAP financial measures regarding ACM’s operational performance. These supplemental measures exclude the impact of stock-based compensation, which ACM does not believe is indicative of its core operating results. In addition, non-GAAP net income attributable to ACM Research, Inc. and basic and diluted earnings per share exclude the effect of stock-based compensation and unrealized gain (loss) on short-term investments, which ACM also believes are not indicative of its core operating results. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided below under “Reconciliation of GAAP to non-GAAP Financial Measures.”

ACM believes these non-GAAP financial measures are useful to investors in assessing its operating performance. ACM uses these financial measures internally to evaluate its operating performance and for planning and forecasting of future periods. Financial analysts may focus on and publish both historical results and future projections based on the non-GAAP financial measures. ACM also believes it is in the best interests of investors for ACM to provide this non-GAAP information.

While ACM believes these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with ACM’s consolidated financial statements prepared in accordance with GAAP.

Forward-Looking Statements

Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “plans,” “expects,” “believes,” “anticipates,” “designed,” and similar words are intended to identify forward-looking statements. Forward-looking statements are based on ACM management’s current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings ACM makes with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by ACM. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ACM undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.

About ACM Research, Inc.

ACM develops, manufactures and sells semiconductor process equipment spanning cleaning, electroplating, stress-free polishing, vertical furnace processes, track, PECVD, and wafer- and panel-level packaging tools, enabling advanced and semi-critical semiconductor device manufacturing. ACM is committed to delivering customized, high-performance, cost-effective process solutions that semiconductor manufacturers can use in numerous manufacturing steps to improve productivity and product yield. For more information, visit www.acmrcsh.com.

© ACM Research, Inc. ULTRA Fn and the ACM Research logo are trademarks of ACM Research, Inc. For convenience, these trademarks appear in this press release without ™ symbols, but that practice does not mean that ACM will not assert, to the fullest extent under applicable law, its rights to the trademarks.

For investor and media inquiries, please contact:

In the United States:	The Blueshirt Group
	Steven C. Pelayo, CFA
	(360)808-5154
	steven@blueshirtgroup.co

In China:	The Blueshirt Group Asia
	Gary Dvorchak, CFA
	+86 (138) 1079-1480
	gary@blueshirtgroup.co

ACM RESEARCH, INC.
Condensed Consolidated Balance Sheets

	December 31, 2024			December 31, 2023
	(Unaudited)
	(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	407,445		$	182,090
Restricted cash		3,865			1,083
Short-term time deposits		17,277			80,524
Short-term investment		19,373			21,312
Accounts receivable, net		387,045			283,186
Other receivables		41,859			40,065
Inventories, net		597,984			545,395
Advances to related party		1,024			2,432
Prepaid expenses		7,507			20,023
Total current assets		1,483,379			1,176,110
Property, plant and equipment, net		269,272			201,848
Operating lease right-of-use assets, net		14,038			15,393
Intangible assets, net		3,461			2,538
Long-term time deposits		13,275			40,818
Deferred tax assets		14,781			20,271
Long-term investments		37,063			27,880
Other long-term assets		20,452			6,050
Total assets	$	1,855,721		$	1,490,908
Liabilities and Equity
Current liabilities:
Short-term borrowings	$	32,814		$	31,335
Current portion of long-term borrowings		44,472			6,783
Related party accounts payable		16,133			11,407
Accounts payable		139,294			141,814
Advances from customers		243,949			181,368
Deferred revenue		8,537			3,687
Income taxes payable		12,779			6,401
FIN-48 payable		19,466			12,149
Other payables and accrued expenses		121,657			102,951
Current portion of operating lease liability		2,132			2,764
Total current liabilities		641,233			500,659
Long-term borrowings		105,525			53,952
Long-term operating lease liability		3,840			4,262
Other long-term liabilities		9,217			5,873
Total liabilities		759,815			564,746
Commitments and contingencies
Equity:
Stockholders’ equity:
Class A Common stock		6			6
Class B Common stock		1			1
Additional paid-in capital		677,476			629,845
Retained earnings		260,000			156,827
Statutory surplus reserve		30,514			30,060
Accumulated other comprehensive loss		(63,372	)		(49,349	)
Total ACM Research, Inc. stockholders’ equity		904,625			767,390
Non-controlling interests		191,281			158,772
Total equity		1,095,906			926,162
Total liabilities and equity	$	1,855,721		$	1,490,908

ACM RESEARCH, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
	(Unaudited)
	( In thousands, except share and per share data)
Revenue	$	223,471		$	170,321		$	782,118		$	557,723
Cost of revenue		112,656			91,245			390,564			281,508
Gross profit		110,815			79,076			391,554			276,215
Operating expenses:
Sales and marketing		18,380			9,440			65,447			47,019
Research and development		27,750			32,465			105,473			92,709
General and administrative		20,696			13,797			69,636			40,648
Total operating expenses		66,826			55,702			240,556			180,376
Income from operations		43,989			23,374			150,998			95,839
Interest income		2,813			2,071			9,935			8,354
Interest expense		(1,228	)		(697	)		(4,151	)		(2,681	)
Realized gain from sale of short-term investments		1,344			478			1,788			9,047
Unrealized gain (loss) on short-term investments		2,124			1,691			973			(2,737	)
Other income (expense), net		7,061			(1,714	)		6,334			(1,558	)
Income from equity method investments		322			6,224			423			9,952
Income before income taxes		56,425			31,427			166,300			116,216
Income tax expense		(17,319	)		(8,129	)		(35,031	)		(19,364	)
Net income		39,106			23,298			131,269			96,852
Less: Net income attributable to non-controlling interests		8,026			5,598			27,642			19,503
Net income attributable to ACM Research, Inc.	$	31,080		$	17,700		$	103,627		$	77,349
Comprehensive income (loss):
Net income		39,106			23,298			131,269			96,852
Foreign currency translation adjustment, net of tax		(26,104	)		11,214			(15,728	)		(10,617	)
Unrealized gain on available-for-sale investments, net of tax		428			–			428			–
Comprehensive Income		13,430			34,512			115,969			86,235
Less: Comprehensive income attributable to non-controlling interests	$	4,909		$	5,807		$	26,365		$	17,689
Comprehensive income (loss) attributable to ACM Research Inc.	$	8,521		$	28,705		$	89,604		$	68,546

Basic	$	0.49		$	0.29		$	1.67		$	1.29
Diluted	$	0.46		$	0.26		$	1.53		$	1.16

Weighted average common shares outstanding used in computing per share amounts:
Basic		62,794,259			60,792,349			62,212,569			60,164,670
Diluted		66,518,704			65,911,901			66,237,424			64,870,543

ACM RESEARCH, INC.
Total Revenue by Product Category and by Region

	Three Months Ended December 31,				Year Ended December 31,
		2024		2023		2024		2023
	(Unaudited)
	($ in thousand)
Single wafer cleaning, Tahoe and semi-critical cleaning equipment	$	155,211	$	122,292	$	578,887	$	403,851
ECP (front-end and packaging), furnace and other technologies		51,695		32,133		151,057		103,356
Advanced packaging (excluding ECP), services & spares		16,565		15,896		52,174		50,516
Total Revenue By Product Category	$	223,471	$	170,321	$	782,118	$	557,723

	Three Months Ended December 31,				Year Ended December 31,
		2024		2023		2024		2023
Mainland China	$	223,110	$	165,441	$	775,752	$	540,969
Other Regions		361		4,880		6,366		16,754
Total Revenue By Region	$	223,471	$	170,321	$	782,118	$	557,723

ACM RESEARCH, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures

As described under “Use of Non-GAAP Financial Measures” above, ACM presents non-GAAP gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share as supplemental measures to GAAP financial measures, each of which excludes stock-based compensation (“SBC”) from the equivalent GAAP financial line items. In addition, non-GAAP net income attributable to ACM Research, Inc., and basic and diluted earnings per share exclude unrealized gain (loss) on short-term investments. The following tables reconcile gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share to the related non-GAAP financial measures:

	Three Months Ended December 31,
		2024											2023
	Actual (GAAP)			SBC			Other non- operating adjustments		Adjusted (Non-GAAP)			Actual (GAAP)			SBC			Other non- operating adjustments		Adjusted (Non-GAAP)
	(In thousands)
Revenue	$	223,471		$	–		$	–	$	223,471		$	170,321		$	–		$	–	$	170,321
Cost of revenue		(112,656	)		(365	)		–		(112,291	)		(91,245	)		(568	)		–		(90,677	)
Gross profit		110,815			(365	)		–		111,180			79,076			(568	)		–		79,644
Gross margin		49.6	%		0.2	%		–		49.8	%		46.4	%		0.3	%		–		46.8	%
Operating expenses:
Sales and marketing		(18,380	)		(1,907	)		–		(16,473	)		(9,440	)		(2,279	)		–		(7,161	)
Research and development		(27,750	)		(2,030	)		–		(25,720	)		(32,465	)		(3,628	)		–		(28,837	)
General and administrative		(20,696	)		(4,482	)		–		(16,214	)		(13,797	)		(6,197	)		–		(7,600	)
Total operating expenses		(66,826	)		(8,419	)		–		(58,407	)		(55,702	)		(12,104	)		–		(43,598	)
Income (loss) from operations	$	43,989		$	(8,784	)	$	–	$	52,773		$	23,374		$	(12,672	)	$	–	$	36,046
Unrealized gain on short-term investments		2,124			–			2,124		–			1,691			–			1,691		–
Net income (loss) attributable to ACM Research, Inc.	$	31,080		$	(8,784	)	$	2,124	$	37,740		$	17,700		$	(12,672	)	$	1,691	$	28,681
Basic EPS	$	0.49							$	0.60		$	0.29							$	0.47
Diluted EPS	$	0.46							$	0.56		$	0.26							$	0.43

	Year Ended December 31,
		2024											2023
	Actual (GAAP)			SBC			Other non- operating adjustments		Adjusted (Non-GAAP)			Actual (GAAP)			SBC			Other non- operating adjustments			Adjusted (Non-GAAP)
	(In thousands)
Revenue	$	782,118		$	–		$	–	$	782,118		$	557,723		$	–		$	–		$	557,723
Cost of revenue		(390,564	)		(2,385	)		–		(388,179	)		(281,508	)		(1,406	)		–			(280,102	)
Gross profit		391,554			(2,385	)		–		393,939			276,215			(1,406	)		–			277,621
Gross margin		50.1	%		0.3	%		–		50.4	%		49.5	%		0.3	%		–			49.8	%
Operating expenses:
Sales and marketing		(65,447	)		(10,552	)		–		(54,895	)		(47,019	)		(5,684	)		–			(41,335	)
Research and development		(105,473	)		(14,112	)		–		(91,361	)		(92,709	)		(8,459	)		–			(84,250	)
General and administrative		(69,636	)		(22,527	)		–		(47,109	)		(40,648	)		(11,789	)		–			(28,859	)
Total operating expenses		(240,556	)		(47,191	)		–		(193,365	)		(180,376	)		(25,932	)		–			(154,444	)
Income (loss) from operations	$	150,998		$	(49,576	)	$	–	$	200,574		$	95,839		$	(27,338	)	$	–		$	123,177
Unrealized gain (loss) on short-term investments		973			–			973		–			(2,737	)		–			(2,737	)		–
Net income (loss) attributable to ACM Research, Inc.	$	103,627		$	(49,576	)	$	973	$	152,230		$	77,349		$	(27,338	)	$	(2,737	)	$	107,424
Basic EPS	$	1.67							$	2.45		$	1.29								$	1.79
Diluted EPS	$	1.53							$	2.26		$	1.16								$	1.63

The MIL Network –

February 26, 2025

MIL-OSI Economics: North Macedonia: Staff Concluding Statement of the 2025 Article IV Mission

Source: International Monetary Fund

February 26, 2025

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

Growth is gaining momentum amid rising risks

Growth is gaining momentum. After picking up in early 2024, growth is expected at 3.3 percent in 2025, driven by stronger domestic demand as public investment projects (including the Corridor 8/10d road project) intensify and consumption is supported by government transfers and real wage growth. The impact of weak external demand seen in 2024 is expected to persist in 2025, driven by structural shifts in the European automotive sector. In the long term, high emigration, especially among the young segment of the population, is projected to lower potential growth, which Staff now estimate at 3.0 percent.

Inflation is rising again. In January, inflation reached 4.9 percent year-on-year, up from a low of 2.2 percent in August 2024. Core inflation has become the main driver and remains persistent, fueled by strong wage growth. Food inflation remains high despite administrative price controls and other interventions.

Domestic risks are elevated and the external outlook more uncertain. Weak public investment, stalled productivity reforms, emigration, and slowing activity of key trade partners threaten growth in the medium-term. Meanwhile, high real wage growth without productivity gains and increased fiscal transfers could further fuel inflation and erode competitiveness. Trade policy shifts and shocks to FDI may suppress exports and tighten financial conditions.

Adhering to the fiscal rules requires credible fiscal consolidation

IMF staff agree with the authorities’ goal of reducing the deficit this year, but are concerned revenue will underperform, rendering this goal out of reach. The 4 percent of GDP deficit envisaged in the 2025 budget will be exceeded if the authorities’ expected revenue gains (of 1½ percent of GDP) from reducing the shadow economy and increasing tax compliance fall short. We welcome the Public Revenue Office’s efforts to modernize tax collection and reduce informality, but these efforts will take time to deliver results. Staff recommends that in any planned supplementary budget, the authorities avoid increasing spending and focus on reducing tax expenditures and transfers (e.g., subsidies to agriculture). Ensuring the full and timely transfer of contributions to the second-pillar pension system is essential.

A credible fiscal strategy is needed to bring debt on a downward path. The budget deficit has exceeded the 3 percent of GDP ceiling in the fiscal rules, while public debt is on an upward trend and has surpassed 60 percent of GDP in 2024—14 percentage points above pre-pandemic levels. A credible fiscal strategy to restore compliance with fiscal rules is key, for preserving credibility to maintain access to international capital markets, for creating space for investment, and strengthening resilience against future shocks. The focus should be on:

Controlling current spending:Staff recommend omitting further pension increases in September 2025 and returning to a rule-based pension system in 2026—indexing only to inflation—to support consolidation while protecting pensioners’ purchasing power. Staff advise limiting public wage growth to inflation in the near term. The Ministry of Finance should strengthen oversight to ensure public wage increases are consistent with achieving the fiscal rules. Over time, unifying the fragmented wage negotiating system will help prevent unexpected budget pressures.
Mobilizing revenues. North Macedonia’s tax revenue potential is estimated at 22-24 percent of GDP. To realize these revenues, tax reforms should focus on reducing tax expenditures, limiting reduced rates and exemptions, improving tax compliance, and gradually increasing property tax. The government’s accelerated digitalization efforts will enhance revenue mobilization.

Beyond consolidation, structural fiscal reforms are needed to strengthen fiscal governance and improve spending efficiency, with some progress underway. Key ongoing measures include implementing the Public Investment Management decree and manual, adopting the PPP law, and conducting spending reviews to optimize budget allocation. Managing fiscal risks, especially from SOEs and major projects like the Corridor 8/10d road, is crucial. The inclusion of a fiscal risk assessment in the Medium Term Fiscal Strategy marks an achievement for the ministry. The state-owned electricity generator, ESM, requires investments in technology and efficiency improvements to lower production costs and expand production, while gradually reducing its role in the subsidized, regulated market. The operationalization of the Fiscal Council is a positive step and it is encouraged to strengthen its independent assessments.

Monetary and financial sector policies to maintain stability and mitigate risks

Policy rates should remain on hold and liquidity tools warrant further tightening until inflation steadily declines. Robust reserves accumulation in 2024 has fostered stability in the foreign exchange market. Given the renewed acceleration in both headline and core inflation, the National Bank (NBRNM) should remain on hold until there is clear evidence of sustained disinflation. Staff support the changes in reserve requirements implemented by the NBRNM and advise further tightening to absorb excess liquidity. The NBRNM should remain vigilant to inflationary risks from domestic factors, including wage and pension increases, as well as heightened external risks from trade uncertainties. If these risks materialize, the NBRNM should be prepared to tighten further to prevent inflation from becoming entrenched. The NBRNM has effectively managed recent challenges, including the energy cost shock. Its resilience stems from operational and financial autonomy, which underpin its independence and credibility—both essential for maintaining price and exchange rate stability and must be safeguarded.

The financial system remains resilient, but macro prudential settings may need to be tightened in response to brisk credit growth. Overall, the banking sector is well-capitalized, highly liquid, and profitable, with low system-wide non-performing loans. NBRNM’s active macroprudential and microprudential measures have strengthened resilience. Strong balance sheets and increased deposits have fueled an acceleration in lending activity towards the end of 2024. The implemented loan-to-value and debt service-to-income ratios will continue to help safeguard financial stability by reducing pressures in the real estate market and preventing higher levels of indebtedness. Staff support the NBRNM’s gradual tightening of the countercyclical capital buffer and additional capital requirements to ensure banks maintain adequate loss-absorbing and recapitalization capacity, in line with EU regulations. Should lending and real estate prices continue growing briskly, further tightening of macroprudential instruments may be warranted.

Structural reforms to boost productivity and offset costs of emigration

IMF staff support the authorities’ objectives of boosting productivity, raising living standards, and reducing informality. Over the past decade, growth in North Macedonia has lagged regional peers and convergence with the EU has stalled. High emigration has led to a declining population that threatens to be a drag on potential growth. Accelerating structural reforms is key to achieving the authorities’ objectives, offsetting the costs of emigration, and supporting the country on its path to EU accession. The priorities are well known:

Improving the business environment. Reducing informality through streamlined business registrations and expanded digital public services is a priority. The predictability of the legal and regulatory environment can be improved by limiting the use of expedited procedures in Parliament, increasing stakeholder consultation, and applying the regulatory requirements more consistently. Simplifying and digitalizing work permits would help businesses address skill and labor shortages more efficiently. Avoiding ad-hoc adjustments to the minimum wage will help contain inflation, preserve competitiveness and provide a more predictable policy environment for business.
Strengthening the labor market. Improving labor market outcomes can stimulate private investment, increase labor participation, and reduce emigration. Raising educational quality and job matching between firms and workers through vocational training will help address labor shortages. Expanding affordable childcare in municipalities, and gradually raising the retirement age of women to match men can help to offset workforce losses from high emigration.
Increasing public infrastructure investment. The quality of public infrastructure in North Macedonia lags peers. The major infrastructure projects Corridor 8/10d and the Kicevo-Ohrid highways are over budget and behind schedule. Staff urge the authorities to complete the started projects and realize their investments. Capital expenditures should be safeguarded in the budget and public investment management should be strengthened to prioritize high-impact projects.
Strengthening the rule of law and anti-corruption efforts. Improving judicial independence and impartiality would strengthen contract enforcement and help reduce informality. The fight against corruption remains weak, particularly in prosecuting high-profile cases. Aligning the Criminal Code with international standards and enhancing resources for key anti-corruption institutions are crucial. The upcoming new national anti-corruption strategy is an opportunity to accelerate reforms through stronger accountability and coordination.
Enhancing governance.Improving public resource efficiency, accountability, and transparency requires expanding digital public services, reassessing state aid schemes, strengthening procurement systems, and improving SOE management.

The IMF team thanks the authorities of North Macedonia and other counterparts for their productive collaboration and constructive policy dialogue.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Eva Graf

Phone: +1 202 623-7100Email: MEDIA@IMF.org

MIL OSI Economics –

February 26, 2025

MIL-OSI Russia: North Macedonia: Staff Concluding Statement of the 2025 Article IV Mission

Source: IMF – News in Russian

February 26, 2025

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

Growth is gaining momentum amid rising risks

Growth is gaining momentum. After picking up in early 2024, growth is expected at 3.3 percent in 2025, driven by stronger domestic demand as public investment projects (including the Corridor 8/10d road project) intensify and consumption is supported by government transfers and real wage growth. The impact of weak external demand seen in 2024 is expected to persist in 2025, driven by structural shifts in the European automotive sector. In the long term, high emigration, especially among the young segment of the population, is projected to lower potential growth, which Staff now estimate at 3.0 percent.

Inflation is rising again. In January, inflation reached 4.9 percent year-on-year, up from a low of 2.2 percent in August 2024. Core inflation has become the main driver and remains persistent, fueled by strong wage growth. Food inflation remains high despite administrative price controls and other interventions.

Domestic risks are elevated and the external outlook more uncertain. Weak public investment, stalled productivity reforms, emigration, and slowing activity of key trade partners threaten growth in the medium-term. Meanwhile, high real wage growth without productivity gains and increased fiscal transfers could further fuel inflation and erode competitiveness. Trade policy shifts and shocks to FDI may suppress exports and tighten financial conditions.

Adhering to the fiscal rules requires credible fiscal consolidation

IMF staff agree with the authorities’ goal of reducing the deficit this year, but are concerned revenue will underperform, rendering this goal out of reach. The 4 percent of GDP deficit envisaged in the 2025 budget will be exceeded if the authorities’ expected revenue gains (of 1½ percent of GDP) from reducing the shadow economy and increasing tax compliance fall short. We welcome the Public Revenue Office’s efforts to modernize tax collection and reduce informality, but these efforts will take time to deliver results. Staff recommends that in any planned supplementary budget, the authorities avoid increasing spending and focus on reducing tax expenditures and transfers (e.g., subsidies to agriculture). Ensuring the full and timely transfer of contributions to the second-pillar pension system is essential.

A credible fiscal strategy is needed to bring debt on a downward path. The budget deficit has exceeded the 3 percent of GDP ceiling in the fiscal rules, while public debt is on an upward trend and has surpassed 60 percent of GDP in 2024—14 percentage points above pre-pandemic levels. A credible fiscal strategy to restore compliance with fiscal rules is key, for preserving credibility to maintain access to international capital markets, for creating space for investment, and strengthening resilience against future shocks. The focus should be on:

Controlling current spending:Staff recommend omitting further pension increases in September 2025 and returning to a rule-based pension system in 2026—indexing only to inflation—to support consolidation while protecting pensioners’ purchasing power. Staff advise limiting public wage growth to inflation in the near term. The Ministry of Finance should strengthen oversight to ensure public wage increases are consistent with achieving the fiscal rules. Over time, unifying the fragmented wage negotiating system will help prevent unexpected budget pressures.
Mobilizing revenues. North Macedonia’s tax revenue potential is estimated at 22-24 percent of GDP. To realize these revenues, tax reforms should focus on reducing tax expenditures, limiting reduced rates and exemptions, improving tax compliance, and gradually increasing property tax. The government’s accelerated digitalization efforts will enhance revenue mobilization.

Beyond consolidation, structural fiscal reforms are needed to strengthen fiscal governance and improve spending efficiency, with some progress underway. Key ongoing measures include implementing the Public Investment Management decree and manual, adopting the PPP law, and conducting spending reviews to optimize budget allocation. Managing fiscal risks, especially from SOEs and major projects like the Corridor 8/10d road, is crucial. The inclusion of a fiscal risk assessment in the Medium Term Fiscal Strategy marks an achievement for the ministry. The state-owned electricity generator, ESM, requires investments in technology and efficiency improvements to lower production costs and expand production, while gradually reducing its role in the subsidized, regulated market. The operationalization of the Fiscal Council is a positive step and it is encouraged to strengthen its independent assessments.

Monetary and financial sector policies to maintain stability and mitigate risks

Policy rates should remain on hold and liquidity tools warrant further tightening until inflation steadily declines. Robust reserves accumulation in 2024 has fostered stability in the foreign exchange market. Given the renewed acceleration in both headline and core inflation, the National Bank (NBRNM) should remain on hold until there is clear evidence of sustained disinflation. Staff support the changes in reserve requirements implemented by the NBRNM and advise further tightening to absorb excess liquidity. The NBRNM should remain vigilant to inflationary risks from domestic factors, including wage and pension increases, as well as heightened external risks from trade uncertainties. If these risks materialize, the NBRNM should be prepared to tighten further to prevent inflation from becoming entrenched. The NBRNM has effectively managed recent challenges, including the energy cost shock. Its resilience stems from operational and financial autonomy, which underpin its independence and credibility—both essential for maintaining price and exchange rate stability and must be safeguarded.

The financial system remains resilient, but macro prudential settings may need to be tightened in response to brisk credit growth. Overall, the banking sector is well-capitalized, highly liquid, and profitable, with low system-wide non-performing loans. NBRNM’s active macroprudential and microprudential measures have strengthened resilience. Strong balance sheets and increased deposits have fueled an acceleration in lending activity towards the end of 2024. The implemented loan-to-value and debt service-to-income ratios will continue to help safeguard financial stability by reducing pressures in the real estate market and preventing higher levels of indebtedness. Staff support the NBRNM’s gradual tightening of the countercyclical capital buffer and additional capital requirements to ensure banks maintain adequate loss-absorbing and recapitalization capacity, in line with EU regulations. Should lending and real estate prices continue growing briskly, further tightening of macroprudential instruments may be warranted.

Structural reforms to boost productivity and offset costs of emigration

IMF staff support the authorities’ objectives of boosting productivity, raising living standards, and reducing informality. Over the past decade, growth in North Macedonia has lagged regional peers and convergence with the EU has stalled. High emigration has led to a declining population that threatens to be a drag on potential growth. Accelerating structural reforms is key to achieving the authorities’ objectives, offsetting the costs of emigration, and supporting the country on its path to EU accession. The priorities are well known:

Improving the business environment. Reducing informality through streamlined business registrations and expanded digital public services is a priority. The predictability of the legal and regulatory environment can be improved by limiting the use of expedited procedures in Parliament, increasing stakeholder consultation, and applying the regulatory requirements more consistently. Simplifying and digitalizing work permits would help businesses address skill and labor shortages more efficiently. Avoiding ad-hoc adjustments to the minimum wage will help contain inflation, preserve competitiveness and provide a more predictable policy environment for business.
Strengthening the labor market. Improving labor market outcomes can stimulate private investment, increase labor participation, and reduce emigration. Raising educational quality and job matching between firms and workers through vocational training will help address labor shortages. Expanding affordable childcare in municipalities, and gradually raising the retirement age of women to match men can help to offset workforce losses from high emigration.
Increasing public infrastructure investment. The quality of public infrastructure in North Macedonia lags peers. The major infrastructure projects Corridor 8/10d and the Kicevo-Ohrid highways are over budget and behind schedule. Staff urge the authorities to complete the started projects and realize their investments. Capital expenditures should be safeguarded in the budget and public investment management should be strengthened to prioritize high-impact projects.
Strengthening the rule of law and anti-corruption efforts. Improving judicial independence and impartiality would strengthen contract enforcement and help reduce informality. The fight against corruption remains weak, particularly in prosecuting high-profile cases. Aligning the Criminal Code with international standards and enhancing resources for key anti-corruption institutions are crucial. The upcoming new national anti-corruption strategy is an opportunity to accelerate reforms through stronger accountability and coordination.
Enhancing governance.Improving public resource efficiency, accountability, and transparency requires expanding digital public services, reassessing state aid schemes, strengthening procurement systems, and improving SOE management.

The IMF team thanks the authorities of North Macedonia and other counterparts for their productive collaboration and constructive policy dialogue.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Eva Graf

Phone: +1 202 623-7100Email: MEDIA@IMF.org

https://www.imf.org/en/News/Articles/2025/02/26/cs-northmacedonia-2025

MIL OSI

MIL OSI Russia News –

February 26, 2025

MIL-OSI Asia-Pac: Govt forecasts $67b deficit

Source: Hong Kong Information Services

Financial Secretary Paul Chan revealed in today’s Budget that total government revenue for 2025-26 is projected to be $659.4 billion, while total government expenditure will be $822.3 billion.

Taking into account bond issuance of about $150 billion and repayments of about $54.1 billion, a deficit of $67 billion is expected.

The fiscal reserve will decrease to $580.3 billion.

Public finances

Expounding on the Government’s fiscal position in his Budget speech, Mr Chan said government revenue and government expenditure are broadly reflected in the Operating Account and the Capital Account.

Revenue in the Operating Account mainly comes from tax revenue, investment income, and government fees and charges. Meanwhile, expenditure is largely attributable to the Government’s daily expenses.

The Capital Account’s revenue is mainly land-related, while its expenditure largely involves infrastructure works projects and land acquisition.

The finance chief stressed that the Operating Account should be managed on the basis of keeping expenditure within the limits of revenues, with the target of achieving a surplus.

“As for the Capital Account, expenditure on infrastructure works is our investment for the future. For instance, the Northern Metropolis development, which will bring economic and social benefits upon completion, has to be taken forward to meet the needs for social and economic development.

“However, as revenue is susceptible to economic cycles, there may be a shortfall between revenue and expenditure. Under such circumstances, we can utilise the surplus in the Operating Account or our fiscal reserves as support, or make flexible use of market resources, including various forms of public private partnership and bond issuance.”

Revised estimates for 2024-25

The Financial Secretary reported that the 2024-25 revised estimate of total government revenue is $559.6 billion, lower than the original estimate by 11.6%.

Revenues from profits tax and salaries tax remained stable at $177.7 billion and $88 billion respectively, with these figures comparable to the original estimates.

Mr Chan emphasised that the incomes from profits tax and salaries tax demonstrate the strong resilience of Hong Kong’s economy.

However, as the asset market is under pressure, government revenues from land premiums and stamp duties have declined. Revenue from land premiums is $13.5 billion, substantially lower than the original estimate by $19.5 billion. Revenue from stamp duties of $58 billion is lower than the original estimate by $13 billion.

The revised estimate of total government expenditure for 2024-25 is $754.8 billion, lower than the original estimate by $22.1 billion. Of this, recurrent expenditure is $562.5 billion, lower than the original estimate by $17.7 billion.

Taking into account the issuance of government bonds of $130 billion and repayments of $22.1 billion, the finance chief expects that there will be a consolidated deficit of $87.2 billion for 2024-25.

Fiscal reserves are expected to be $647.3 billion by 31 March.

Estimates for 2025-26

Looking ahead to 2025-26, the Financial Secretary outlined that the Government will continue to allocate resources towards consolidating momentum on economic growth, promoting the accelerated development of the information and technology industries, and enhancing public services.

“We will also increase capital works expenditure to cater for the Northern Metropolis and other public works projects relating to the economy and people’s livelihood, so as to support the sustained economic development of Hong Kong.”

In his Budget speech, Mr Chan announced that total government expenditure for 2025-26 will grow by 8.9% to $822.3 billion, with its ratio to nominal gross domestic product projected to be 24.4%.

Recurrent expenditure for 2025-26 will rise 4.5% to $588.1 billion.

“Of this, substantial resources will still be allocated to livelihood-related policy areas including healthcare, social welfare and education, involving a total of $348.6 billion, representing about 60% of recurrent expenditure.”

Non-recurrent expenditure will decrease by 3.4% to $36.1 billion.

He also announced that total government revenue for 2025-26 is estimated to be $659.4 billion, while revenue from earnings and profits tax are estimated to be $301.2 billion, an increase of 8.4% over the revised estimate for 2024-25.

Revenue from land premiums is estimated to be $21 billion, a 55.3% jump over the revised estimate for 2024-25. Revenue from stamp duties is estimated to be $67.6 billion, a 16.5% increase over the revised estimate for 2024-25. In addition, the Government will bring back about $62 billion from six endowment funds established outside the government accounts.

Looking ahead, Mr Chan said: “We forecast that the Operating Account will largely achieve balance in 2025-26, and return to a surplus starting from 2026-27.”

The Capital Account is estimated to record a deficit in the Medium Range Forecast period due to the Northern Metropolis’ accelerated development and other public works projects, he added.

“Nevertheless, the level of deficit will decline year on year from 2026-27 onwards.”

MIL OSI Asia Pacific News –

February 26, 2025

MIL-OSI: UXLINK Launches Groundbreaking AI Growth Agent to Revolutionize Web3 User Acquisition

Source: GlobeNewswire (MIL-OSI)

Powered by DeepSeek V3, the first-of-its-kind AI solution automates user growth tasks, slashes operational costs, and ignites a sustainable Web3 growth cycle; 30-day free trial available for ecosystem partners.

SINGAPORE, Feb. 26, 2025 (GLOBE NEWSWIRE) — UXLINK, the world’s largest Web3 social infrastructure platform, today announced the launch of its groundbreaking UXLINK AI Growth Agent on its official X platform (formerly Twitter). This innovative product marks a major breakthrough in user acquisition within the Web3 space, further strengthening UXLINK’s social growth layer.

Powered by DeepSeek V3 technology, the UXLINK AI Growth Agent is the first AI-driven solution designed specifically for Web3 user expansion. It automates repetitive tasks to drastically reduce operational costs, allowing teams to focus on high-value strategic initiatives. Additionally, the AI Growth Agent establishes a sustainable growth cycle by optimizing operational strategies and user incentive mechanisms, resulting in a highly efficient social media ecosystem.

According to UXLINK, users can build an intelligent, AI-driven operational system in just three simple steps:
1. Quick Setup: Enable fast deployment of the AI Growth Agent within existing workflows, with minimal configuration.
2. AI-Powered Automation: Streamline daily operational tasks through intelligent automation, freeing up time and resources for strategic growth efforts.
3. Growth Flywheel: Launch an AI-driven growth flywheel that transforms basic operations into significant user growth, creating a continuous, self-reinforcing cycle of expansion.

To show appreciation for ecosystem partners who have continuously supported the enhancement of $UXLINK’s value, UXLINK is offering a 30-day free trial of the AI Growth Agent. During this period, partners can explore its powerful features and experience its potential in driving business expansion firsthand.

In line with UXLINK’s “INSIDE-OUT” strategy of leveraging internal AI capabilities for external growth, the Head of Community at UXLINK commented on the launch: “UXLINK has always been a heavy AI user, leveraging its high efficiency internally. Now we are bringing AI-powered social growth to the entire ecosystem with a strong focus on user expansion. Growth is an eternal need in Web3, and UXLINK leads in social-driven growth strategies.”

As AI technology continues to merge with Web3 social applications, users can expect richer and more efficient social experiences. The introduction of the UXLINK AI Growth Agent not only benefits UXLINK’s own ecosystem but also provides the wider industry with innovative growth strategies and solutions.

UXLINK invites Web3 projects and partners to take advantage of the AI Growth Agent’s 30-day free trial and discover its impact on user growth. For more information or to get started, please visit UXLINK’s official website or contact the UXLINK team.

About UXLINK: UXLINK is the world’s largest Web3 social platform and infrastructure provider, dedicated to building an interconnected, innovative, and user-centric ecosystem. By seamlessly connecting users, developers, and partners, UXLINK leverages blockchain technology to provide a secure, transparent, and rewarding social experience for its global community.

Media Contact:
Website: https://www.uxlink.io/

UXLINK : admin@uxlink.io
Twitter : https://x.com/UXLINKofficial
Telegram: https://t.me/uxlinkofficial
CMC: https://coinmarketcap.com/currencies/uxlink/

PR Contact:
Rachita Chettri
MediaX Agency
contact@mediax.agency

Disclaimer: This press release is provided by UXLINK. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered financial, investment, or trading advice. Investing in crypto and mining related opportunities involves significant risks, including the potential loss of capital. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. However, due to the inherently speculative nature of the blockchain sector–including cryptocurrency, NFTs, and mining–complete accuracy cannot always be guaranteed. Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press release.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/47c094aa-2f16-45f4-bc2f-626d94cd30e8

The MIL Network –

February 26, 2025

MIL-OSI Economics: Shaping a Brighter Future for Asia and the Pacific: ADB President Asakawa’s Legacy

Source: Asia Development Bank

Transcript

In January 2020, President Masatsugu Asakawa took the helm of the Asian Development Bank with a vision for sustainable growth and regional cooperation. Little did he know that two months later, the world would face an unprecedented crisis—the COVID-19 pandemic. As the pandemic swept across countries, President Asakawa recognized the urgency and mobilized ADB’s resources to respond swiftly.

Masatsugu Asakawa
President
Asian Development Bank
2020-2025

“In a crisis, every moment counts. I’m proud that ADB acted decisively when our members needed us most.”

Under his leadership, ADB launched a $20 billion assistance package, including the COVID-19 Pandemic Response Option (CPRO) and a $9-billion Asia Pacific Access Facility (APVAX) to help countries procure and distribute drugs.

Amidst the global health crisis, another pressing challenge demanded attention—climate change. At COP26 in Glasgow, President Asakawa reaffirmed ADB’s climate leadership.

“We can’t afford to wait on climate action. That’s why we pledged at least $100 billion in climate financing by 2030 and pioneered innovative tools like the Energy Transition Mechanism and IF-CAP to drive real change.”

Under his guidance, ADB became the region’s “climate bank,” promoting sustainable, inclusive growth while addressing environmental challenges. President Asakawa advocated action to help developing member countries become more resilient against climate change impacts, such as extreme heat and accelerated glacial melt.

“Climate action has been a top priority for ADB, and for me personally. Throughout my presidency, ADB has intensified efforts to address the climate crisis— with initiatives focused on protecting vulnerable areas like the Hindu Kush-Himalaya region.”

Alongside these initiatives, President Asakawa never lost sight of the people behind ADB’s success—its staff. In response to the COVID-19 pandemic, he introduced flexible work arrangements and prioritized safety measures.

“Our people are the heart of ADB. Their safety and well-being come above all else. By fostering a supportive and inclusive environment, we empower our staff to deliver their best for the communities we serve.”

In a critical moment, President Asakawa orchestrated the evacuation of 120 ADB staff and their families from Afghanistan. His actions not only safeguarded lives but reinforced a culture of care within the ADB community.

Looking beyond immediate crises, President Asakawa also focused on building stronger foundations for the future. He championed domestic resource mobilization, helping countries strengthen their financial resilience.

“True progress is when countries stand on their own feet. Our role is to help them build that foundation, strengthening their ability to create sustainable growth and resilience for future generations.”

Through initiatives like the creation of the Asia Pacific Tax Hub, ADB has helped strengthen tax systems, improve governance, and secure social safety nets for people across the region.

Understanding that the region’s prosperity depends on cooperation, President Asakawa reinforced the importance of robust partnerships to rejuvenate trade and improve supply chains.

“Asia and the Pacific has benefited immensely from globalization. With the looming threat of protectionism, our region must continue to champion connectivity and collaboration.”

To support his ambitious goals, President Asakawa also spearheaded significant transformation within ADB. A review of the Capital Adequacy Framework unlocked an additional $100 billion in lending capacity over the next decade.

Meanwhile, the new operating model introduced strategic shifts to expand private sector operations, intensify climate action, drive innovation, and locate staff closer to clients to strengthen support and responsiveness.

These initiatives align with the MDB evolution agenda, ensuring ADB remains a key player in global development.

“To meet tomorrow’s challenges, we must evolve today. Innovation isn’t just an option. It’s an imperative.”

As his tenure comes to a close, President Asakawa leaves a strengthened, future-focused ADB.

His vision encourages ADB to stay invested in the region’s success and responsive to emerging challenges. And he reminds us that building trusted, long-term partnerships is key to driving meaningful change.

“ADB’s strength lies in being a trusted development partner- a reliable friend and partner of choice for Asia and the Pacific. This close relationship is our legacy. And it’s vital we preserve it.”

President Asakawa has guided ADB through challenging times with transformative leadership that has left an indelible mark on the organization and region. As we look to the future, his legacy sets the foundation for a prosperous, resilient, inclusive, and sustainable Asia and the Pacific.

“I want to extend my heartfelt gratitude to ADB’s staff, Board of Directors, member governments, and our many partners. Together, we have achieved milestones that will continue to shape a brighter future for Asia and the Pacific.”

MIL OSI Economics –

February 26, 2025

MIL-OSI Asia-Pac: Green sector a growth area: FS

Source: Hong Kong Information Services

In his 2025-26 Budget speech, Financial Secretary delivered an update on initiatives to harness green industries in Hong Kong, stressing that green finance and green technology are accelerating the build-up of multi-faceted industry clusters and creating huge business opportunities.

In terms of green finance, Mr Chan iterated that Hong Kong last year launched the Sustainable Finance Action Agenda, setting out goals for the banking industry to achieve net zero, and committed to becoming one of the first jurisdictions to align local requirements on sustainability disclosure standards with those outlined in the International Financial Reporting Standards.

He said that to support local green-finance talent training, the Pilot Green and Sustainable Finance Capacity Building Support Scheme will be extended to 2028.

The finance chief also reported that the Hong Kong Science and Technology Parks Corporation (HKSTPC) will develop its InnoCentre in Kowloon Tong into a green technology hub, to be named “GreenTech Hub”. The hub will bring together more than 200 green technology companies, with the HKSTPC inviting partners such as financial and business institutions and universities to support the companies by providing training, business matching, and more.

With regard to shipping, the Government plans to develop Hong Kong as a green maritime fuel bunkering centre by the implementing the Action Plan on Green Maritime Fuel Bunkering. Mr Chan said the Government will provide tax exemptions on green methanol used for bunkering. In the aviation sector, meanwhile, a Sustainable Aviation Fuel consumption target will be announced this year.

In terms of waste reduction, the Government will allocate additional funding of $180 million to increase the number of residential food waste smart recycling bins and food waste collection facilities across the city. I·PARK1, Hong Kong’s first waste-to-energy facility for treating municipal solid waste, is expected to commence operation this year, and an open tender has been invited for I·PARK2, which will have an expected treatment capacity of 6,000 tonnes per day.

Mr Chan announced that the Government will launch a $300 million electric vehicle subsidy scheme in the middle of the year, adding that the scheme is expected to provide impetus to for the industry to install 3,000 fast chargers across Hong Kong by 2030.

In relation to public transport, the finance chief remarked that the Government recently launched a “Green Transformation Roadmap of Public Buses and Taxis” and earmarked $470 million under the New Energy Transport Fund to subsidise franchised bus operators in purchasing about 600 electric buses. A further $135 million was earmarked to subsidise the taxi trade in purchasing 3,000 electric taxis. In addition, the “Funding Scheme to Trial of Hydrogen Fuel Cell Heavy Vehicles” is now open for application.

The Government intends to invite tenders for a smart and green mass transit system project in Kai Tak this year, and for similar projects in East Kowloon and the Hung Shui Kiu/Ha Tsuen and Yuen Long South New Development Areas next year.

Mr Chan also reported that the Government has reserved a site in Sheung Shui for the agriculture sector to set up the city’s first multi-storey, environment-friendly livestock farm.

MIL OSI Asia Pacific News –

February 26, 2025

MIL-OSI Asia-Pac: FS revs up city’s trade engine

Source: Hong Kong Information Services

Financial Secretary Paul Chan said today that the Government will strive to bolster Hong Kong’s status as an international trade centre, supply chain management centre, and transportation and logistics hub.

In his 2025-26 Budget speech, he said efforts will be made to expand the city’s trade network, reinforce its connectivity and attract more inward investment, while also strengthening support for local enterprises.

As regards Hong Kong’s supply chain management capabilities, Mr Chan iterated that the Hong Kong Trade Development Council and InvestHK jointly provide assistance to Mainland enterprises in using Hong Kong as a base to manage their offshore trading and supply chain activities.

In terms of trade financing, he said the Trade Financing Liquidity Facility recently introduced by Monetary Authority (HKMA) and the People’s Bank of China provides greater flexibility for RMB financing. In addition, the Hong Kong Export Credit Insurance Corporation offers credit insurance to support enterprises seeking to go global.

Mr Chan said the Government is considering making legislative amendments to facilitate digitalisation of trade documents, and will submit proposals to the Legislative Council next year.

In efforts to expand Hong Kong’s trade network and attract more inward investment, the Financial Secretary said the Government is liaising with the governments of Malaysia and Saudi Arabia with a view to establishing Economic & Trade Offices in those countries. In addition, InvestHK has established consultant offices in Egypt and Türkiye, while the HKTDC has set up a consultant office in Cambodia.

Moreover, the Government is exploring investment agreements with Saudi Arabia, Bangladesh, Egypt and Peru, and is conducting negotiations with 17 countries on establishing Comprehensive Avoidance of Double Taxation Agreements.

Mr Chan outlined that Hong Kong will continue to cultivate markets in the Association of Southeast Asian Nations (ASEAN) and the Middle East, besides exploring opportunities in Central Asia, South Asia and North Africa. With regard to the Belt & Road (B&R) Initiative, he added that the HKTDC will strengthen project matching, particularly in relation to green development and innovation and technology (I&T).

Meanwhile, to support the development of local enterprises and help them to go global, the finance chief said the Government will inject a total of $1.5 billion into two funds: the Dedicated Fund on Branding, Upgrading and Domestic Sales and the Export Marketing and Trade and Industrial Organisation Support Fund. Application arrangements will also be streamlined.

In terms of support for Small and Medium Enterprises (SMEs), Mr Chan also highlighted that numerous banks have joined the Taskforce on SME Lending jointly established by the HKMA and the Hong Kong Association of Banks. He said that the funds dedicated for SME financing in the participating banks’ loan portfolios recently increased to over $390 billion.

In collaboration with large-scale e-commerce platforms, the HKTDC will also launch “E-Commerce Express”, in order to provide Hong Kong enterprises with one-to-one consultation services and thematic seminars. In addition, it will enhance the mentorship scheme it operates in collaboration with the Trade & Industry Department, and will organise a second edition of the Hong Kong Shopping Festival.

Turning to Hong Kong’s maritime industry, Mr Chan said the Government will adopt an “innovative spirit” with regard to its development.

He revealed that a Hong Kong Maritime & Port Development Board will be established this year to support research, industry promotion and manpower training. In addition, he said a half-rate tax concession for eligible commodity traders will be introduced.

With regard to logistics development, the finance chief said the Government has initiated a study on developing modern logistics sites in the Northern Metropolis and expects that its findings will be announced this year.

Meanwhile, with a view to developing a smart port, $215 million has been allocated to installing a port community system that will encourage the flow of data among stakeholders in the maritime, port and logistics industries.

In relation to the Government’s plans to bolster Hong Kong’s reputation as an international aviation hub, Mr Chan said the Three-Runway System at Hong Kong International Airport was commissioned at the end of last year and that related passenger facilities will become operational in phases from the end of this year.

He also highlighted that the Airport Authority (AA) recently promulgated a development plan for the expansion of Airport City, and revealed that the Hong Kong International Aviation Academy will expand its training programmes to cover C919 aircraft following their official deployment in scheduled flights between Hong Kong and Shanghai in January.

Mr Chan added that the AA has signed a Memorandum of Understanding with a leading overseas professional aeronautic services company to explore the possibility of providing professional services such as aircraft dismantling, parts recycling and related training in Hong Kong.

MIL OSI Asia Pacific News –

February 26, 2025

MIL-OSI: New Taxtec Report Reveals Global Lost Gains on Cross-border Securities

Source: GlobeNewswire (MIL-OSI)

LONDON, Feb. 26, 2025 (GLOBE NEWSWIRE) — TaxTec, the world’s first fully digital tax reclamation service, has released a study showing how much withholding tax lies unreclaimed annually on foreign dividends and interest payments. The study provides the most up-to-date global estimate of $16.4 billion, with US cross-border investors missing out on over $3.8 billion in rightful returns.

When foreign dividends or bond interest payments are made, the tax regime in question retains a certain level of withholding tax. Where that jurisdiction has a double taxation treaty with the investor’s domicile, a proportion of that withholding tax is reclaimable.

The reclamation process is, however, bureaucratic and complex. Many studies have remarked on the complexity of reclaiming withholding tax. The result is that not all reclaims are processed, with investors ending up losing a percentage of their rightful income.

This issue has come under the spotlight as the global volume of dividends paid out rises, and bonds once more deliver a significant coupon. Asset owners such as pension funds have a duty to their beneficiaries to maximize income, fund managers also have a fiduciary duty to optimize returns for investors, and custodians want to deliver the best possible service to clients.

Stephen Everard, CEO of TaxTec notes: “While some progress has been made over the past decade in withholding tax reclamation rates, there is still a long way to go. Services that ease the process of reclamation are widely available. And a handful of pioneering custodians have already engaged those services to optimize investor returns. Yet the gap still remains.”
“These returns belong to investors and it is the ethical duty of all market participants to ensure they are not left unnecessarily on the table. Double taxation treaties were set up to ensure that investors are not taxed twice, yet lack of reclamation on a proportion of rightful income is effectively allowing double taxation to continue.”

The TaxTec 2024 Reclamation Report is available at https://www.mindmetreresearch.com/taxtec-report-2024/

About TaxTec
Founded in 2023, TaxTec has set to revolutionize tax recovery for institutional investors and their agents. Utilizing the latest AI-enabled digital technology, our highly automated global tax recovery proposition and client-centric service model maximize reclaim opportunities for our clients across all major markets. TaxTec clients recover more tax at lower cost enhancing their investment returns.

Website: www.taxtec.co.uk
LinkedIn: www.linkedin.com/company/taxtec-group

Contact

Client Services Director
Sarah Nurgat
ThoughtSpark
sarah@thoughtsparkagency.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ca03caf7-00f5-43cc-b2d6-19fd43f4efb5

The MIL Network –

February 26, 2025

MIL-OSI Australia: Prestigous Farrer Memorial Medal awarded to Andrew Barr

Source: New South Wales Department of Primary Industries

26 Feb 2025

Vision pack available at https://tinyurl.com/2s4f73kx

The prestigious Farrer Memorial Medal has been awarded to South Australian grain grower and former plant researcher Dr Andrew (Andy) Barr for 2024, recognising his outstanding contributions to plant breeding and agricultural research in not only Australia, but across the globe.

DPIRD Executive Director of Agriculture, Darren Bayley, congratulated Dr Barr on receiving the honour, acknowledging his significant impact on the industry by helping to develop over 25 varieties of oats, barley and wheat , ranging from disease-resistant strains to high-yield cultivars.

“The Farrer Memorial Trust was established to perpetuate the memory of William James Farrer, a pioneering plant breeder, and has upheld a long-standing tradition since 1936 of providing encouragement and inspiration to those engaged in agricultural science, particularly in cropping fields,” Dr Bayley said.

“The NSW DPIRD holds the Chair for the Farrer Memorial Trust and is proud to offer the annual Farrer Memorial Medal that recognises individuals who have dedicated their careers to advancing plant breeding and crop science.

“Andy Barr exemplifies this commitment – he has made remarkable contributions in the development of improved oat and barley varieties such as the well known Echidna oats and Commander barley, all which have significantly benefited Australian farmers and agriculture.”

Among some of Dr Barr’s proudest achievements are:

Development of ‘Echidna’ oats—Australia’s first semi-dwarf oat variety, offering a 25 percent yield increase, superior lodging, shattering and stem rust disease resistance, which was the dominant variety in eastern Australia for 20 years.
Release of ‘Wallaroo’ and ‘Marloo’ oats in 1988—the first multipurpose varieties with resistance to cereal cyst nematode, which causes heavy yield losses in grain crops up to 50% in wheat and oats. This innovation in Wallaroo and Marloo laid the foundation for South Australia’s export hay industry.
Breeding ‘Sloop SA’ barley, the first malting variety with cereal cyst nematode resistance for South Australia, and ‘Commander’ barley, a leading malting variety in eastern Australia during the 2000s.
Working with the Australian barley research community to apply molecular marker technology across all of the barley breeding programs to accelerate genetic gains

Dr Barr expressed his gratitude for the honour and credited the many scientists, technicians, research funders, and farmers he has worked with throughout his 30 years in breeding and 20 years in farming, consulting and research management.

“It is a tremendous privilege to be recognised by the Farrer Memorial Trust and I hope that all the great colleagues I have worked with—as a practicing plant breeder, a consultant, and a research administrator—share in this recognition,” Dr Barr said.

“There are many rewarding things about plant breeding – driving around the country and seeing your varieties being grown in farmers paddocks, talking to farmers who have great feedback about the varieties you have bred and working with brilliant researchers to integrate their science into a practical outcome in a breeding program.”

Raised on a mixed farm at Pinery in South Australia, Dr Barr said growing up in a family who valued high quality education prompted his love of plant biology and genetics.

“I attended an Ag careers night with my family when I was in year 10, and that sealed the deal – at uni, I loved plant biology, and genetics in my early years and so it was a natural progression to major in plant breeding later,” Dr Barr said.

Beyond his research, Dr Barr has played a critical role in advancing Australian and global crop science through his work on the boards of CIMMYT, GRDC, and SAGIT, reviewing numerous crop breeding programs and hosting research trials on his family farm which support the development of new and existing varieties.

Looking ahead, Dr Barr remains optimistic about the future of Australian grain research.

“Australia has a proud history of world-class innovation in plant breeding, and I believe that will continue. Exciting technologies such as genomic selection, machine learning, AI, and gene editing are still in their early stages and will mature to deliver even greater benefits to Australian farmers,” Dr Barr said said.

The 2024 Farrer Memorial Medal will be officially presented to Andy Barr at the Australian Crop Breeders Week Event Dinner on Tuesday, 4 March 2025 in Melbourne.

Tickets for the event are available on their website.

For more information on the Farrer Memorial Trust, including how you can nominate someone for the 2025 medal, visit the DPIRD website.

Media contact: pi.media@dpird.nsw.gov.au

MIL OSI News –

February 26, 2025

MIL-OSI Australia: Threatened native Trout Cod recovery underway with innovative fish breeding & stocking

Source: New South Wales Department of Primary Industries

Minister for Agriculture and Western NSW – Media Release

26 Feb 2025

Vision available: Link

The Minns Labor Government has announced the 10-year Trout Cod Action Plan to recover the threatened native Trout Cod fish and delivering on its election commitment to boost the recovery of the fish and ensure its availability for recreational fishers.

The Government is working to deliver better environmental outcomes for regional NSW and to deliver on its election commitments for recreational fishers who consider the Trout Cod a popular fish for angling.

This commitment is demonstrated by the recent Government announcements delivering a review on the recreational fishing trust funds and establishing a $2 million fund for small infrastructure for recreational fishing.

While there are a few small self-sustaining Trout Cod populations left in the wild in NSW the population has been in significant decline.

To bring about the recovery of the threatened Trout Cod populations more than $1 million of allocated funding is already being utilised with early actions of breeding and stocking underway while the broader action plan was being finalised.

The final Trout Cod Action Plan was developed after public consultation took place online and community information sessions in Wagga Wagga, Barooga, Bathurst and Queanbeyan.

Integral to the NSW Government’s commitment to the recovery of the Trout Cod, is increasing the production of fingerlings at Narrandera Fisheries Centre.

Early work to boost populations has seen a significant number of Trout Cod fingerlings bred at Narrandera in 2024 with 47,000 fingerlings released into waterways in the Snowy region, covering the Goodradigbee River and Talbingo Dam.

The Government is well on the way to achieving the Trout Cod Action Plan production target of 100,000 Trout Cod fingerlings per year and is confident of reaching 250,000 in the next 5-10 years.

Trout Cod can be a difficult fish to breed and Narrandera has been trialling innovative ways to achieve better success including using pond spawning techniques rather than hormone induction. Pond based spawning is is potentially more productive and much gentler and kinder on the fish.

The Government’s achievements under the Trout Cod Action Plan over the last 12 months include:

Moving to 100% pond-based spawning approach
Doubled the number of broodfish ponds at Narrandera Fisheries Centre
Developed a stocking and re-introduction strategy
Increased engagement with recreational fishers
Developing broodstock management strategy

Goodradigbee River has been a focus for conservation stocking efforts as it’s within the historical range of Trout Cod, has pristine and intact habitat including rocks, fast-flowing water, and is an unregulated part of the system with natural inflows to support recovery.

For more information about NSW DPIRD’s threatened species projects, visit: https://www.dpi.nsw.gov.au/fishing/threatened-species

NSW Minister for Agriculture and Regional NSW, Tara Moriarty said:

“The Minns Government is rapidly progressing its commitment to ensure the recovery of the native Trout Cod in our regional waterways with significant work underway to breed fingerlings while we engaged with the community on feedback for finalising the Action Plan.

“I’m pleased to say many of the participants of the community information sessions are very excited by the prospect of improved Trout Cod recovery.

“The Trout Cod Action Plan provides a 10-year blueprint to guide recovery actions, and while there is a long road ahead, I am confident there is a light at the end of the tunnel for this threatened species.

“There was a lot of interest from recreational anglers who are supporting the recovery of Trout Cod and I am pleased to say that those hoping to go fishing for Trout Cod can do so at Talbingo Dam where a catch and release fishery has been developed.

“We are hopeful that the Trout Cod Action Plan will fast track the recovery of Trout Cod populations in NSW back to a point that they can once again become a genuine target for recreational fishers beyond the current Talbingo fishery.”

“With close to 50,000 fingerlings bred at Narrandera Fisheries Centre in 2024, triple the number produced in 2023, we are well on the way to achieving the goal of 250,000 bred annually.”

MEDIA: Alastair Walton | Minister Tara Moriarty | 0418 251 229

MIL OSI News –

February 26, 2025

MIL-OSI USA: ICYMI: Tuberville on X: Trump and DOGE are Making the Federal Government Efficient Again

US Senate News:

Source: United States Senator Tommy Tuberville (Alabama)

WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) penned an op-ed on X praising the progress President Trump and DOGE have made during Trump’s first month in office to cut waste, fraud, and abuse in the federal government and save taxpayers’ money.

Read excerpts from the piece below or here.

Trump and DOGE are Making the Federal Government Efficient Again

“Tax season is upon us, and Americans are once again reminded of how much of their hard-earned paychecks is taken by the federal government. Most Americans use this time to reevaluate their spending habits and consider ways to be more fiscally responsible. Unfortunately, the U.S. government doesn’t do the same. The United States is $36 trillion in debt and we are spending nearly $2 trillion more each year than we bring in. If the United States were a business, we’d be dead broke.

Thankfully, President Trump is back in the White House and is working around the clock to audit the federal government. On the campaign trail, President Trump promised to create the Department of Government Efficiency (DOGE), advised by Elon Musk, to take a businesslike approach to auditing waste, fraud, and abuse within the federal government. A majority of Americans support the President’s efforts to cut wasteful spending, and they support the work the DOGE is doing. President Trump is making the Federal Government Efficient Again.

Thanks to President Trump, the D.C. gravy train is being cut off. So far, Elon Musk and his team have saved American taxpayers a staggering $55 billion. Some of the taxpayer-funded programs that DOGE has uncovered are truly astounding. For example, DOGE found that $59 million was sent by FEMA to house illegal immigrants in fancy New York hotels. It was also discovered that taxpayers were on the hook for a $ 168,000 Anthony Fauci exhibit at the National Institutes of Health Museum, which has thankfully been canceled. DOGE also found $9 million in payments to fund woke programs at the Department of Agriculture, including contracts for “Central American gender assessment consultant services” and “Brazilian forest and gender consultants” – whatever that is.

In addition to cutting waste, DOGE is also restoring accountability and transparency. Under the Biden administration, the Pentagon failed its seventh consecutive audit. That’s ridiculous. If a business tried this in the real world, they’d go bankrupt. American taxpayers spend nearly a trillion dollars annually on the U.S. military. The least we can do is provide an accurate accounting of how their money is being spent. To clean this up, President Trump directed Secretary of Defense Pete Hegseth to start cutting the Pentagon budget by 8% in each of the next five years. By restoring fiscal sanity to our armed forces, we will ensure we have the long-term resources to continue defending our interests and national security. […]

Just this weekend, DOGE sent an email to all federal government employees asking for them to submit five things they have accomplished this week. Predictably, the media is throwing a fit about this. When I was a football coach, we had performance reviews where we would discuss an employee’s performance and if they weren’t performing at a certain standard, they would be fired. But apparently, that isn’t allowed in the government.

DOGE has also shone a light on the corrupt relationship between the bureaucrats and the Mainstream Media. White House Press Secretary Karoline Leavitt revealed that more than $8 million taxpayer dollars were used for Politico subscriptions. This doesn’t include other outlets taxpayers have been funding like the New York Times, Associated Press, and Reuters. It is completely inappropriate for taxpayers to be forced to fund the Corporate Media. If American taxpayers want to support these publications, they can subscribe themselves. But most do not, which is perhaps why many of these publications are failing.

Thanks to President Trump, Americans are finally witnessing a government that is by the people and for the people. The fake news media and the D.C. Swamp are in DEFCON level 1 over DOGE, and as far as I’m concerned, that’s a good thing. We should be thanking President Trump and the entire DOGE team for the incredible service they are doing for our country. In fact, as a proud member of the Senate DOGE Caucus, I’m 100% committed to making sure Congress does our part to follow the President’s lead to rightsize the government and cut waste, fraud, and abuse. President Trump promised to fight every day for the American worker – and the hardworking men and women in this country deserve to know that their tax dollars are not being used to fund gender transition surgeries in Africa. Together, we will restore accountability and transparency in Washington and unleash the Golden Age of America.”

Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

MIL OSI USA News –

February 26, 2025

MIL-OSI New Zealand: Auckland Council AI initiative to boost customer experience

Source: Auckland Council

Auckland Council is set to trial AI technology that will help Aucklanders quickly access the council support they need, underpinned by Google Cloud technology.

‘Ask Auckland Council’ is a new digital assistant which will help Aucklanders access the information and support they’re looking for across the council’s digital platforms, in a way that suits them.

The pilot, funded by Google Cloud and delivered in partnership with Deloitte, will be trialled and tested as part of a new phase of innovation the council is leading through its new Group Shared Services division.

Presented at February’s Revenue, Expenditure and Value Committee chaired by Deputy Mayor Desley Simpson, the new technology is expected to deliver a greater experience for all Aucklanders.

“It’s incredibly positive to see Auckland Council leading the way with new technology and innovation that holds great potential to deliver better service for all Aucklanders, at no cost to the ratepayer,” says Cr Simpson.

“The scale of this makes it one of the largest applications of this technology in New Zealand and, in future, could be leveraged by other councils too.

“It holds great potential for our multicultural city to improve their council experience 24/7. The State of the City Report signalled Auckland’s need to continue to invest in technology adoption and this is one example where we are leading innovation that benefits our communities.”

Digital assistant to help find information

Auckland Council receives over 1.5 million calls every year and holds region-wide services and information across multiple digital platforms, making it at times difficult for Aucklanders to find the information they are after, quickly and efficiently.

Ask Auckland Council will enable Aucklanders to go to one place where the digital assistant will find what they are looking for, across all council organisations. This reduces the effort factor significantly.

“We are thrilled to work alongside Auckland Council and Deloitte to help make information about public services more accessible for Aucklanders,” says Paul Dearlove, head of Google Cloud, New Zealand.

“By harnessing the power of Google Cloud’s AI platform, we are helping empower Aucklanders to easily find the information they are after, and creating a more seamless and intuitive experience across Auckland Council’s digital platforms.”

Trialing to enhance technology

Auckland Council group shared services director Richard Jarrett said the technology is a prototype that will be tested and carefully trialled so it can be further enhanced, based on customer experience.

“It’s great to see Google and Deloitte come onboard to help us prototype this initiative and work together to achieve this important milestone. We are very grateful for the support they’ve provided, says Mr Jarrett.

“Shifting from prototype to testing with Aucklanders is the next planned phase. We think providing a single channel that is user-friendly and navigates our multiple websites will benefit Aucklanders, particularly when looking for information or help. I look forward to seeing this technology progress through into full development.”

While English will be the first language, the vision is for the tool to be voice and text interactive across a number of languages, rolled out based on prioritising New Zealand’s three official languages.

“Over time, we will introduce additional languages, so it becomes a multilingual digital assistant that enables our customers to provide us with feedback, access the right information and connect with the right council service,” says Mr Jarrett.

“The acceleration of technology offers us an opportunity to experiment with what might be possible to help Aucklanders and visitors to our city to navigate the range of services and attractions we offer.”

Ask Auckland Council is expected to launch later this year.

MIL OSI New Zealand News –

February 26, 2025

MIL-OSI USA: Capito, Warner Reintroduce the Rural Historic Tax Credit Improvement Act

US Senate News:

Source: United States Senator for West Virginia Shelley Moore Capito

WASHINGTON, D.C. – Last week, U.S. Senators Shelley Moore Capito (R-W.Va.) and Mark Warner (D-Va.) reintroduced the Rural Historic Tax Credit Improvement Act. This bill aims to streamline processes, reduce cost-burdens to rural home owners and small developers, and provide affordable housing incentives.

“Being a rural state shouldn’t mean losing out on private investment incentives like tax credits to help us preserve our communities’ history and revitalize local economies,” Senator Capito said. “I have enjoyed working with the dedicated group of West Virginians who brought this issue to my attention and who provided important perspectives during the creation of this legislation. The Rural Historic Tax Credit Improvement Act will help level the playing field for communities in West Virginia by attracting investment for economic expansion and additional housing supply.”

“By expanding access to historic tax credits, we can preserve our nation’s rich heritage while also incentivizing the construction of more affordable housing. I’m proud to join Senator Capito in introducing this legislation to bring new life to abandoned buildings and grow the housing stock in in rural communities,” Senator Warner said.

“Senators Capito and Warner recognize the need to improve the Historic Tax Credit so it can continue to be a cornerstone of redevelopment across the country,” Albert Rex, Chair of the Historic Tax Credit Coalition (HTCC), said. “We appreciate their leadership on this issue and look forward to working with them to ensure that communities in West Virginia and Virginia can have better access to the HTC and more impactful projects can happen there and across the country, especially in rural communities.”

Companion legislation in the House of Representatives is being led by U.S. Rep. Mike Carey (R-Ohio-15).

BACKGROUND:

Currently, many historic tax projects are not economically viable in small and rural areas, giving a disproportionate advantage of the credit to large urban developments. The costs associated with the credit as-is severely limits rural areas, and especially largely rural states like West Virginia, from being able to use the credit to rehabilitate and revitalize historic properties.

Through improvements to the credit included in the Rural Historic Tax Credit Improvement Act, rural Historic Tax Credit projects will be more financially feasible and will result in a higher number of these projects being completed in rural areas and states.

The Rural Historic Tax Credit Improvement Act:

Makes historic tax credit projects in rural areas eligible for an increased credit from the current 20% to 30%.

Includes an additional increase in the credit to 40% for affordable housing creation.

Allows the credit be used in addition to the Low-Income Housing Tax Credit (LIHTC).

Allows small rural projects to claim the credit in the first year of use.

Allows transferability of the credit to a third-party.

Eliminates basis adjustment to simplify credit transaction.

This bill is supported by the Preservation Alliance of West Virginia, The Historic Tax Credit Coalition, Main Street America, and The National Trust for Historic Preservation.

Click here to view a one-pager on the bill.

Click here for full bill text.

MIL OSI USA News –

February 26, 2025

MIL-OSI USA News: Fact Sheet: President Donald J. Trump Announces Actions to Make Healthcare Prices Transparent

Source: The White House

EMPOWERING PATIENTS THROUGH RADICAL PRICE TRANSPARENCY: Today, President Donald J. Trump signed an Executive Order to empower patients with clear, accurate, and actionable healthcare pricing information.

The order directs the Departments of the Treasury, Labor, and Health and Human Services to rapidly implement and enforce the Trump healthcare price transparency regulations, which were slow walked by the prior administration.
- The departments will ensure hospitals and insurers disclose actual prices, not estimates, and take action to make prices comparable across hospitals and insurers, including prescription drug prices.
- The departments will update their enforcement policies to ensure hospitals and insurers are in compliance with requirements to make prices transparent.

LOWERING COSTS FOR AMERICAN FAMILIES: When healthcare prices are hidden, large corporate entities like hospitals and insurance companies benefit at the expense of American patients. Price transparency will lower healthcare prices and help patients and employers get the best deal on healthcare.

Prices vary widely from hospital to hospital in the same region. One patient in Wisconsin saved $1,095 by shopping for two tests between two hospitals located within 30 minutes of one another.
One economic analysis found that President Trump’s original price transparency rules, if fully implemented, could deliver savings of $80 billion for consumers, employers, and insurers by 2025.
Employers can lower their healthcare costs by an average of 27% on 500 common services by better shopping for care.
The Biden Administration was sued in 2023 for not enforcing the prescription drug transparency requirements. The Trump Administration will work to hold health plans accountable for making drug prices transparent.

DELIVERING ON PROMISES TO PUT AMERICAN PATIENTS FIRST: President Trump is delivering on his promise to once again put American patients first by holding the healthcare industrial complex accountable for delivering transparent prices.

In his first Administration, President Trump took historic action by mandating that hospitals and insurers make prices public.
While the prior Administration failed to prioritize further implementation and enforcement of these requirements, President Trump is delivering on his promises to make the healthcare system more affordable and easier to navigate for patients.
American patients are fed up with the status quo – 95% deem healthcare price transparency an important priority, with six in ten saying it should be a top priority of the government.
President Trump has long pushed for radical price transparency to ensure the healthcare system puts American patients first:
- President Trump: “Our goal was to give patients the knowledge they need about the real price of healthcare services. They’ll be able to check them, compare them, go to different locations, so they can shop for the highest-quality care at the lowest cost. And this is about high-quality care. You’re also looking at that. You’re looking at comparisons between talents, which is very important. And then, you’re also looking at cost. And, in some cases, you get the best doctor for the lowest cost. That’s a good thing.”

MIL OSI USA News –

February 26, 2025

MIL-OSI USA: Baldwin Demands Answers from Social Security Administration on Musk and DOGE’s Access to Personal Information

US Senate News:

Source: United States Senator for Wisconsin Tammy Baldwin

WASHINGTON, D.C. – U.S. Senator Tammy Baldwin (D-WI) and a group of her colleagues demanded answers from the Social Security Administration regarding the recent turmoil at the agency as Elon Musk and his so-called Department of Government Efficiency (DOGE) embed themselves and gain access to Wisconsinites most sensitive personal information.

“Providing access to personally identifiable information on hundreds of millions of Americans stored by SSA to DOGE employees without a legitimate reason, and in apparent disregard for privacy laws, regulations, and procedures, raises serious concerns about the security of that data and what DOGE plans to do with it,” wrote Baldwin and the lawmakers.

The letter seeks answers from Acting Commissioner Leland Dudek about DOGE’s activities at SSA, including:

Whether the Acting Commissioner has disclosed any sensitive personal or financial information to any unauthorized persons outside SSA.
Whether DOGE has requested or received access to any SSA system that is used in determining eligibility or benefit amount of Social Security or SSI benefits.
Whether DOGE has gained access to SSA databases that include personally identifiable information, wage or tax information, or personal health information.
Whether any private or commercial servers been connected or integrated into SSA data systems to review, edit, modify, access, delete, move or otherwise change data.
What steps are being taken to prevent DOGE from stopping lawful benefit payments or utilizing personally identifiable information for political purposes.

Earlier this month, Senator Baldwin called on Veterans Affairs (VA) Secretary Doug Collins to take immediate actions to secure veterans’ personal information provided by the VA or other agencies from Elon Musk and DOGE.

A full version of this letter is available here and below.

Acting Commissioner Dudek:

We write to express deep concern regarding disturbing reports that the President replaced Social Security Administration (SSA) Acting Commissioner Michelle King for refusing to provide Elon Musk and the so-called “Department of Government Efficiency” (DOGE) access to the agency’s most sensitive data without proper documentation, and that you have provided DOGE unfettered access.

As the central hub for Americans’ most sensitive personal and financial information, and the nation’s largest benefit-paying agency, DOGE’s actions–in seeking access to this information-represent a two-front invasion on Americans’ financial security and privacy. In response to earlier media reports detailing DOGE’s efforts to access SSA systems, Senator Wyden demanded information from then-Acting Commissioner King to verify these reports and to understand what steps she has taken to protect Americans’ privacy. In her February 11 response, she wrote that no one affiliated with DOGE had “requested nor received access to the agency’s programmatic systems.” Further, she stressed that employee access to SSA’s systems is limited to the least privileges necessary to complete job duties, and its systems are continuously monitored to identify suspicious behaviors.

Stringent privacy laws, regulations, and administrative procedures are in place to protect American’s data, including personally identifiable information, stored and used for legitimate purposes by government agencies. Maybe nowhere is that more important than SSA. For example, the Privacy Act of 1974, as amended (5 U.S.C. 552a, Public Law 93-579), protects Americans against an unwarranted invasion of their privacy related to the disclosure of their personal information. And, in so doing, it requires each federal agency to publish in the Federal Register information related to how and why it is accessing a specific system of records—data that are collected, maintained, used, or disseminated that contain personally identifiable information. To date, no justification has been published related to DOGE actions at SSA or otherwise. Providing access to personally identifiable information on hundreds of millions of Americans stored by SSA to DOGE employees without a legitimate reason, and in apparent disregard for privacy laws, regulations, and procedures, raises serious concerns about the security of that data and what DOGE plans to do with it.

We are also concerned that DOGE’s access to these systems has been provided under false pretenses claiming rampant fraud to cut benefits to Americans. Over the past weekend, Elon Musk repeatedly posted and reposted a false claim that millions of individuals over age 150 are receiving Social Security benefits. These claims are so easily disproven, and have been repeatedly, that this cannot be a justifiable reason to need complete access to all data housed at SSA. A simple internet search would show U.S. Census data estimating approximately 80,000 Americans over age 100 living in the United States today, and SSA’s own data shows that roughly 53,000 Americans over age 100 receive Social Security benefits in December 2023. As you know, SSA’s Office of Inspector General (OIG) published an audit in 2023 which found that of the 18.9 million individuals over age 100 that did not have death information reported to SSA, almost none currently receive benefit payments or have reported earnings in the past 50 years. In the same audit, SSA noted that combing through the agency’s records to update the information of these individuals would cost up to $9.7 million, with little benefit to SSA’s administration of the programs.

As you know, the information collected and housed at the agency could have significant commercial value, as well as competitive advantage for individuals seeking to use it for financial gain. Likewise, it could be misappropriated to target American citizens and businesses for political or exploitative means. This includes Americans’ Social Security Numbers; bank and credit card information; birth and marriage certificates; pension information; home and work addresses; school records; citizenship status; immigration or naturalization records; IRS earnings records; health care providers’ contact information; family court records; employment and employer records; psychological or psychiatric health records; hospitalization records; addiction treatment; and test for or records of HIV/AIDS. These records are handled by career civil servants under stringent federal and state privacy laws and regulations to protect Americans’ health and financial information.

As you well know, SSA employs sophisticated systems, processes, and controls to ensure that benefits are paid the correct amount to the correct person. SSA has made great strides in improving its program integrity systems to reduce improper payments and to prevent instances of waste, fraud, or abuse. While we agree that more can always be done to improve SSA’s process, Musk and DOGE do not appear to be interested in improving the system for Americans. Rather than working collaboratively with the agency to understand and improve its existing systems, Musk and DOGE have been keener on publicizing misleading or blatantly inaccurate information about Social Security. This raises questions on whether their pursuit of combatting waste, fraud, and abuse is purely performative rather than sincere.

Moreover, the President’s decision to replace a career SSA official with over three decades of agency experience with an employee with no executive experience will likely trigger a cascade of departures of experienced agency personnel, as former Commissioner O’Malley warned. At a time when the agency’s workforce is at a 50-year low, the potential loss of centuries’ worth of agency experience will risk worsening backlogs, longer wait times, and interruption of benefit payments. When combined with SSA providing inexperienced individuals unfettered access to the agency’s sensitive systems, there is a profound risk of causing irreparable harm to the agency’s systems and Americans’ financial security.

Finally, we are also concerned of reports that prior to your appointment as Acting Commissioner, you were placed on administrative leave pending an investigation into you sharing sensitive documents with individuals not authorized to access such information, and for harassing and threatening fellow SSA employees to work with DOGE. If accurate, your actions demonstrate a betrayal of trust and your oath of office and may violate federal privacy laws.

For this reason, we request that you respond to the following questions no later than February 25, 2025:

Have you disclosed any personally identifiable information (PII), protected health information (PHI), federal tax information (FTI), or other sensitive personal and financial information in any SSA data systems to:
1. Any SSA personnel or SSA contractors who lacked the appropriate statutory authority to access such information;
2. Non-SSA federal employees;
3. Non-SSA federal contractors;
4. Special Government Employees (SGEs); or
5. Any other unauthorized persons?

Has DOGE, or any individuals or entities operating under the guise of or direction of DOGE (including such individuals who may have been onboarded to the Agency and received an Agency or Departmental email address) requested or received access to any SSA system that is used in determining eligibility or benefit amount of Social Security or SSI benefits?
1. If so, who granted such access, to which systems, and for what specific purposes? Please name each system and provide the names of individuals who have been given access to such system.
2. Under what legal authority did SSA grant such access? Please provide a detailed description of this authority and copies of all communication between individuals associated with the “Department of Government Efficiency” and SSA systems.
3. For each individual who has been given access to SSA data systems since January 20, 2025, please provide information on:
  1. The agency to which each such individual has been onboarded (or working as a contractor for) and whether an individual who may have been onboarded to a different agency has been given an SSA email address;
  2. Which federal forms each such individual completed relating to background checks (i.e. SF-85, SF-85P, SF 85PS, SF-86);
  3. Whether the Federal Bureau of Investigation (FBI) completed a background check for each such individual;
  4. Whether the individuals have used their data access privileges consistent with any restrictions based on their respective security clearance levels;
  5. What trainings on security, health information privacy, cybersecurity, financial, fraud, or other trainings required of SSA or their contractors these individuals have undertaken and when.
4. Please provide a list of queries run on each such system by each user, since January 20, 2025, including dates and usernames.
5. Please provide a thorough accounting of the information each individual reviewed, modified, accessed, deleted, or otherwise edited under such system.
6. For any information that has been modified, edited, or deleted, please provide an accounting of the variables, entries, and the exact changes made, as well as for what purpose.
7. Please provide details on any information from any such systems that were downloaded, copied, transferred, or otherwise removed from the Agency. Please specify which data, by what means they were downloaded or transferred, and to whom or what entity.

Has DOGE, or any individuals or entities operating under the direction of DOGE gained access to SSA databases that include personally identifiable information, wage or tax information, or personal health information?
1. If so, which data have been reviewed, modified, deleted, or otherwise edited or removed, copied, or downloaded or otherwise transferred by these individuals?
2. Under what legal authority did SSA grant such access? Please provide a detailed description of this authority and copies of all communication between individuals or entities operating under the direction of DOGE and SSA officials related to the granting of this access.
3. How many individuals does this affect? Have these individuals been notified that their information has been accessed and for what purposes in accordance with the requirements of the Privacy Act of 1974, as amended, and Section 1106 of the Social Security Act (42 U.S.C. 1306)? Please provide documentation.
4. To the extent personally identifiable information were accessed since January 20, 2025, please provide the System of Record Notice included in the Federal Register reflective of this access.

Have any private or commercial servers been connected or integrated into SSA data systems to review, edit, modify, access, delete, move or otherwise change data?
1. If so, please explain the origin of such servers and provide documentation related to testing and validating controls to ensure no new vulnerabilities were introduced into SSA data systems upon use.
2. For any data that were moved to a private or commercial server, please show how that system has been reviewed and is abiding by the National Institute of Standards and Technology (NIST) special publication 800-171, Protecting Controlled Unclassified Information in Nonfederal Systems and Organizations.
3. For any data that were moved to a private or commercial server, please provide detailed information related to whether any safe storage standards are being employed.

Attempts to suspend federal payments have been reportedly attempted by individuals or entities operating under the direction of DOGE. We are deeply concerned that DOGE may attempt to stop lawful payments for Social Security and SSI benefit payments, deny benefits to individuals who are perceived to not support President Trump, or otherwise inflict financial harm on individuals.
1. What steps have been taken to ensure that the data of individuals, beneficiaries, and health care providers are protected from unlawful payment suspensions or data leaks?
2. What specific steps have been taken to ensure compliance with current laws, guidance, and regulations to ensure that the use of these data will not interfere with timely payments of Social Security and SSI benefits?
3. What specific steps have been taken to ensure compliance with current laws, guidance, and regulations to ensure that personally identifiable information that is held on SSA systems is not being utilized for politically motivated purposes?

Thank you for your attention to this urgent matter. We look forward to your prompt response.

Sincerely,

An online version of this release is available here.

MIL OSI USA News –

February 26, 2025

MIL-OSI Security: Cedar Rapids Man Sentenced to Federal Prison for Possession with Intent to Distribute Methamphetamine

Source: Office of United States Attorneys

A man involved with the distribution of methamphetamine was sentenced on February 24, 2025, to ten years in federal prison.

James Vincent Thornton, age 53, from Cedar Rapids, Iowa, received the prison term after an October 11, 2024 guilty plea to one count of possession with intent to deliver a controlled substance.

Evidence at the plea and sentencing hearings showed that Thornton was involved with the distribution of methamphetamine. In November of 2021, law enforcement officers searched a residence where Thornton had been staying. Thornton had been living in the basement of the residence, and officers located approximately 224.17 grams of ice methamphetamine in his room. In March and April 2022, law enforcement officers utilized a confidential informant to buy methamphetamine from Thornton twice. In May 2022, law enforcement officers searched another residence associated with Thornton and located approximately 71.31 grams of ice methamphetamine.

Thornton was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Thornton was sentenced to 120 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.

Thornton is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Adam J. Vander Stoep and was investigated by the Cedar Rapids Police Department, the United States Postal Inspection Service, the Internal Revenue Service, and the Drug Enforcement Administration (DEA) Task Force. The DEA Task Force consists of the DEA, the Linn County Sheriff’s Office, the Cedar Rapids Police Department, the Marion Police Department, and the Iowa Division of Narcotics Enforcement. This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

The case file number is 24-CR-72.

Follow us on X @USAO_NDIA.

MIL Security OSI –

February 26, 2025

MIL-OSI USA: Crapo Joins Risch to Introduce Bill to End Taxpayer Funded Handouts to Illegal Immigrants

US Senate News:

Source: United States Senator for Idaho Mike Crapo

Washington, D.C.–U.S. Senator Mike Crapo (R-Idaho) joined Senator Jim Risch (R-Idaho) in introducing the No Bailout for Sanctuary Cities Act, which would block federal funding to sanctuary cities intended to benefit illegal immigrants.
The bill aligns with President Trump’s Executive Order “Ending Taxpayer Subsidization of Open Borders,” which blocks federal agencies and programs from providing taxpayer-funded services to illegal immigrants.
“Not a single taxpayer dollar should be used to provide unwarranted hand-outs to non-citizen migrants or to cities giving them any unearned financial advantages,” said Crapo. “Federal resources should be used to secure the borders, not invite and encourage illegal immigration.”
“Sanctuary cities abuse taxpayer dollars and fuel the illegal immigration crisis,” said Risch. “My No Bailout for Sanctuary Cities Act stops these jurisdictions from using federal funding to directly give handouts to illegal immigrants.”
Additional co-sponsors of the legislation include Senators Steve Daines (R-Montana), Tim Sheehy (R-Montana), Eric Schmitt (R-Missouri), Pete Ricketts (R-Nebraska), Mike Lee (R-Utah), Jim Banks (R-Indiana) and Cindy Hyde-Smith (R-Mississippi). Representative Nick LaLota (R-New York) introduced companion legislation in the U.S. House of Representatives.
The No Bailout for Sanctuary Cities Act would:
Define “sanctuary jurisdiction” as any local or state government entity that withholds information regarding an individual’s citizenship status from federal, state or other local authorities; and
Prevent sanctuary jurisdictions from receiving federal funds for the specific benefit of illegal immigrants.

MIL OSI USA News –

February 26, 2025

MIL-OSI: CPS Announces Fourth Quarter and Full Year 2024 Earnings

Source: GlobeNewswire (MIL-OSI)

Revenues of $105.3 million for the fourth quarter and $393.5 million for 2024
Net income of $19.2 million, or $0.79 per diluted share for 2024
Total portfolio balance of $3.491 billion, highest in company history
New contract purchases of $1.682 billion for the full year 2024

LAS VEGAS, NV, Feb. 25, 2025 (GLOBE NEWSWIRE) — Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of $5.1 million, or $0.21 per diluted share, for its fourth quarter ended December 31, 2024.

Revenues for the fourth quarter of 2024 were $105.3 million, an increase of $13.3 million, or 14.5%, compared to $92.0 million for the fourth quarter of 2023. Total operating expenses for the fourth quarter of 2024 were $98.0 million compared to $82.1 million for the 2023 period. Pretax income for the fourth quarter of 2024 was $7.4 million compared to pretax income of $9.8 million in the fourth quarter of 2023.

For the twelve months ended December 31, 2024 total revenues were $393.5 million compared to $352.0 million for the twelve months ended December 31, 2023, an increase of approximately $41.5 million, or 11.8%. Total operating expenses for the twelve months ended December 31, 2024 were $366.1 million, compared to $290.9 million for the twelve months ended December 30, 2023. Pretax income for the twelve months ended December 31, 2024 was $27.4 million, compared to $61.1 million for the twelve months ended December 31, 2023. Net income for the twelve months ended December 31, 2024 was $19.2 million compared to $45.3 million for the twelve months ended December 31, 2023.

During the fourth quarter of 2024, CPS purchased $457.8 million of new contracts compared to $445.9 million during the third quarter of 2024 and $301.8 million during the fourth quarter of 2023. The total number of contracts purchased for 2024 totaled $1.682 billion compared to $1.358 billion in 2023. The Company’s receivables totaled $3.491 billion as of December 31, 2024, an increase from $3.330 billion as of September 31, 2024 and an increase from $2.970 billion as of December 31, 2023.

Annualized net charge-offs for the fourth quarter of 2024 were 8.02% of the average portfolio as compared to 7.74% for the fourth quarter of 2023. Delinquencies greater than 30 days (including repossession inventory) were 14.85% of the total portfolio as of December 31, 2024, compared to 14.55% as of December 31, 2023.

“New loan originations grew by 24% in 2024 over the prior year, leading to solid top line revenue growth,” said Charles E. Bradley, Chief Executive Officer. “With positive trends in loan originations and operating efficiencies, we remain optimistic in all aspects of our business going into 2025.”

Conference Call

CPS announced that it will hold a conference call on February 26, 2025 at 1:00 p.m. ET to discuss its fourth quarter 2024 operating results.

Those wishing to participate can pre-register for the conference call at the following link https://register.vevent.com/register/BI34e818cf84a24e118241657af74dd2d4. Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the schedule start time. A replay will be available beginning two hours after conclusion of the call for 12 months via the Company’s website at https://ir.consumerportfolio.com/investor-relations.

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.

Forward-looking statements in this news release include the Company’s recorded figures representing allowances for remaining expected lifetime credit losses, its estimates of fair value (most significantly for its receivables accounted for at fair value), its provision for credit losses, its entries offsetting the preceding, and figures derived from any of the preceding. In each case, such figures are forward-looking statements because they are dependent on the Company’s estimates of losses to be incurred in the future. The accuracy of such estimates may be adversely affected by various factors, which include the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company’s ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Company’s realization upon repossessed vehicles; and economic conditions in geographic areas in which the Company’s business is concentrated. Any or all of such factors also may affect the Company’s future financial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to losses to be incurred in the future may affect future performance.

Investor Relations Contact

Danny Bharwani, Chief Financial Officer

949-753-6811

Consumer Portfolio Services, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)

	Three months ended						Twelve months ended
	December 31,						December 31,
		2024			2023			2024			2023
Revenues:
Interest income	$	98,150		$	83,260		$	363,962		$	329,219
Mark to finance receivables measured at fair value		5,000			6,000			21,000			12,000
Other income		2,153			2,718			8,544			10,795
		105,303			91,978			393,506			352,014
Expenses:
Employee costs		23,889			23,157			96,192			88,148
General and administrative		14,422			13,777			54,710			50,001
Interest		52,522			40,277			191,257			146,631
Provision for credit losses		(728	)		(1,600	)		(5,307	)		(22,300	)
Other expenses		7,847			6,523			29,223			28,437
		97,952			82,134			366,075			290,917
Income before income taxes		7,351			9,844			27,431			61,097
Income tax expense		2,206			2,657			8,228			15,754
Net income	$	5,145		$	7,187		$	19,203		$	45,343

Earnings per share:
Basic	$	0.24		$	0.34		$	0.90		$	2.17
Diluted	$	0.21		$	0.29		$	0.79		$	1.80

Number of shares used in computing earnings per share:
Basic		21,412			21,136			21,292			20,896
Diluted		24,274			24,879			24,325			25,218

Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

	December 31,			December 31,
		2024			2023
Assets:
Cash and cash equivalents	$	11,713		$	6,174
Restricted cash and equivalents		125,684			119,257
Finance receivables measured at fair value		3,313,767			2,722,662

Finance receivables		5,420			27,553
Allowance for finance credit losses		(433	)		(2,869	)
Finance receivables, net		4,987			24,684


Deferred tax assets, net		1,010			3,736
Other assets		36,707			27,233
	$	3,493,868		$	2,903,746

Liabilities and Shareholders’ Equity:
Accounts payable and accrued expenses	$	70,151		$	62,544
Warehouse lines of credit		410,898			234,025
Residual interest financing		99,176			49,875
Securitization trust debt		2,594,384			2,265,446
Subordinated renewable notes		26,489			17,188
		3,201,098			2,629,078

Shareholders’ equity		292,770			274,668
	$	3,493,868		$	2,903,746

Operating and Performance Data ($ in millions)

	At and for the						At and for the
	Three months ended						Twelve months ended
	December 31,						December 31,
		2024			2023			2024			2023

Contracts purchased	$	457.81		$	301.80		$	1,681.94		$	1,357.75
Contracts securitized	$	298.42		$	306.70			1,256.13			1,352.11

Total portfolio balance (1)	$	3,490.96		$	2,970.07		$	3,490.96		$	2,970.07
Average portfolio balance (1)	$	3,445.52		$	2,958.95			3,209.99			2,913.57


Delinquencies (1)
31+ Days		12.11	%		12.29	%
Repossession Inventory		2.74	%		2.26	%
Total Delinquencies and Repo. Inventory		14.85	%		14.55	%

Annualized Net Charge-offs as % of Average Portfolio (1)		8.02	%		7.74	%		7.62	%		6.53	%

Recovery rates (1), (2)		27.2	%		34.3	%		30.1	%		39.2	%

	For the										For the
	Three months ended										Twelve months ended
	December 31,										December 31,
	2024					2023					2024					2023
		$ (3)		% (4)			$ (3)		% (4)			$ (3)		% (4)			$ (3)		% (4)
Interest income	$	98.15		11.4	%	$	83.26		11.3	%	$	363.96		11.3	%	$	329.22		11.3	%
Mark to finance receivables measured at fair value		5.00		0.6	%		6.00		0.8	%		21.00		0.7	%		12.00		0.4	%
Other income		2.15		0.2	%		2.72		0.4	%		8.54		0.3	%		10.80		0.4	%
Interest expense		(52.52	)	-6.1	%		(40.28	)	-5.4	%		(191.26	)	-6.0	%		(146.63	)	-5.0	%
Net interest margin		52.78		6.1	%		51.70		7.0	%		202.25		6.3	%		205.38		7.0	%
Provision for credit losses		0.73		0.1	%		1.60		0.2	%		5.31		0.2	%		22.30		0.8	%
Risk adjusted margin		53.51		6.2	%		53.30		7.2	%		207.56		6.5	%		227.68		7.8	%
Other operating expenses (5)		(46.16	)	-5.4	%		(43.46	)	-5.9	%		(180.13	)	-5.6	%		(166.59	)	-5.7	%
Pre-tax income	$	7.35		0.9	%	$	9.84		1.3	%	$	27.43		0.9	%	$	61.10		2.1	%

(1) Excludes third party portfolios.
(2) Wholesale auction liquidation amounts (net of expenses) as a percentage of the account balance at the time of sale.
(3) Numbers may not add due to rounding.
(4) Annualized percentage of the average portfolio balance. Percentages may not add due to rounding.
(5) Total pre-tax expenses less provision for credit losses and interest expense.

The MIL Network –

February 26, 2025

MIL-OSI Security: United States Sues Skilled Nursing Company, Executives and Consultant for Fraudulent Billing

Source: Office of United States Attorneys

Complaint alleges systematic fraudulent billing of Medicare and Medicaid for unnecessary care at skilled nursing facilities in Massachusetts and Connecticut

BOSTON – The U.S. Attorney’s Office has filed a joint complaint with the Massachusetts Attorney General’s Office under the federal and Massachusetts False Claims Acts against 19 skilled nursing facilities (SNFs) in Massachusetts and Connecticut and their present and former management companies, RegalCare Management Group, LLC and RegalCare Management 2.0 (together “RegalCare”); RegalCare’s owner, Eliyahu Mirlis and an executive, Hector Caraballo; and RegalCare’s therapy consultant, Stern Therapy Consultants (Stern).

SNFs are inpatient facilities that provide transitional care to patients following a hospital stay. Federal healthcare programs, including Medicare and Medicaid, reimburse providers for medically reasonable and necessary services rendered to SNF patients. Both the federal and Massachusetts False Claims Acts prohibit individuals or entities from submitting, or causing the submission of, false claims for payment and false statements material to a claim for payment from the respective governments.

The complaint alleges that, between 2017 and 2023, RegalCare – at the direction of Mirlis and Caraballo and aided by Stern – fraudulently caused the submission of claims to Medicare and Medicaid (via MassHealth and its managed care organizations) for medically unreasonable and unnecessary services to patients of RegalCare’s SNFs. The defendants’ scheme allegedly resulted in millions of dollars in damages to the Medicare and Medicaid programs.

Specifically, the complaint alleges that RegalCare, at Mirlis’ direction, systematically caused Medicare to be billed for the highest level of skilled rehabilitation therapy services at RegalCare’s SNFs in Massachusetts and Connecticut, despite patients not clinically needing those services. Caraballo facilitated Mirlis’ plan by ensuring that RegalCare’s patient records supported billing for such services – including altering and amending records despite knowing he was not authorized to do so at his licensing level, without having assessed or spoken to the patients, and often without having spoken to clinicians about the changes he personally made. The United States also alleges that RegalCare, through Mirlis and Caraballo, improperly directed RegalCare’s third-party billing company to bill Medicare for the highest-level skilled rehabilitation therapy services before the underlying necessary clinical documentation was even complete.

The complaint further alleges that Stern, a New York long-term care consulting company, conspired with RegalCare to cause the submission of fraudulent claims to Medicare by scheduling therapists to provide unnecessary services, contrary to patients’ medical needs, to justify billing at the highest-level. When Stern therapists refused to provide services they deemed unnecessary or unreasonable, Stern managers threatened to take employment action against those therapists to pressure them to capitulate.

“As alleged, these defendants drained Medicare and Medicaid of millions of dollars and put vulnerable patients at risk – making them undergo unnecessary, and sometimes painful, services,” said United States Attorney Leah B. Foley. “When facilities prioritize profits over patient well-being, they endanger those in their care and undermine the integrity of our healthcare system. This office will continue to hold accountable those who exploit federal healthcare programs at the expense of patients and taxpayers alike.”

“I am proud of our team’s partnership with the USAO in this case, which advances elder justice and safeguards crucial nursing home funds,” said Massachusetts Attorney General Andrea Joy Campbell. “My office will continue to work aggressively to protect our elders and hold companies accountable that seek to harm them or violate our false claim laws.”

“Taxpayers who fund the Medicare and Medicaid programs expect skilled nursing facilities to bill those programs honestly and accurately,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “The integrity of our federal health care system is undermined when that expectation is not met, and we will continue to thoroughly pursue allegations of False Claims Act violations.”

Massachusetts contends that RegalCare, directed by Mirlis and Caraballo, submitted inflated claims to MassHealth for long-term care services performed for patients of RegalCare’s SNFs in Massachusetts. Between 2017 and 2023, RegalCare operated SNFs in Amesbury, Danvers, Greenfield, Harwich, Holyoke, Lowell, Quincy, Saugus, Taunton and Worcester. The complaint alleges that RegalCare, Mirlis and Caraballo altered documentation to support billing for increased long term care services even though the patient did not clinically need the additional services.

The governments filed their complaint in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Acts. Under those laws, a private citizen can sue on behalf of the United Staes or Massachusetts and share in any recovery. The United States and Massachusetts also are entitled to intervene in the lawsuit, as they have done in this case, which is captioned United States and Commonwealth of Massachusetts ex rel. McCormick v. RegalCare Management 2.0, LLC, et al.

U.S. Attorney Foley, AG Campbell and HHS-OIG SAC Coviello made the announcement today. This matter is being handled by Assistant U.S. Attorneys Steven Sharobem, Andrew Caffrey, Olivia Benjamin and Diane Seol of the U.S. Attorney’s Office’s Affirmative Civil Enforcement Unit and Assistant Attorney General Scott Grannemann of the Attorney General’s Office’s Medicaid Fraud Division.

The claims in which the United States and Massachusetts have intervened are allegations only. There has been no determination of liability.

MIL Security OSI –

February 26, 2025

MIL-OSI: Flywire Reports Fourth Quarter and Fiscal-Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Fourth Quarter Revenue Increased 17.0% Year-over-Year

Fourth Quarter Revenue Less Ancillary Services Increased 17.4% Year-over-Year

Company Provides First Quarter and Fiscal-Year 2025 Outlook

BOSTON, Feb. 25, 2025 (GLOBE NEWSWIRE) — Flywire Corporation (Nasdaq: FLYW) (“Flywire” or the “Company”) a global payments enablement and software company, today reported financial results for its fourth quarter and fiscal-year ended December 31, 2024.

“Our fourth quarter results capped off another strong year for Flywire as we continued to grow the business while navigating a complex macro environment with significant headwinds,” said Mike Massaro, CEO of Flywire, “We continued to focus on business and bottom line growth and generated 17% revenue growth and 680 bps adjusted EBITDA margin growth in the quarter.”

“Looking ahead, we’re focused on driving effectiveness and discipline throughout our global business. We will be undertaking an operational and business portfolio review. The operational review will help ensure we are efficient and effective, with a focus on driving productivity and optimizing investments across all areas. Our comprehensive business portfolio review will focus on Flywire’s core strengths – such as complex, large-value payment processing, our global payment network, and verticalized software.”

“One of the efficiency measures we are undertaking is a restructuring, which impacts approximately 10% of our workforce. It is difficult to say goodbye to so many FlyMates, and I want to thank them for their hard work as we endeavor to support them throughout this transition.”

“As we refocus our teams on areas that we believe will drive Flywire’s future growth, we are excited to announce the acquisition of Sertifi, which is expected to accelerate the expansion of our fast-growing Travel vertical. Sertifi augments our travel product offering with a leading dedicated hotel property management system integration and expands our footprint across more than 20,000 hotel locations worldwide.”

Fourth Quarter 2024 Financial Highlights:

GAAP Results

Revenue increased 17.0% to $117.6 million in the fourth quarter of 2024, compared to $100.5 million in the fourth quarter of 2023.
Gross Profit increased to $74.3 million, resulting in Gross Margin of 63.2%, for the fourth quarter of 2024, compared to Gross Profit of $61.8 million and Gross Margin of 61.5% in the fourth quarter of 2023.
Net loss was ($15.9) million in the fourth quarter of 2024, compared to net income of $1.3 million in the fourth quarter of 2023.

Key Operating Metrics and Non-GAAP Results

Number of clients grew by 16%year-over-year, with over 180 new clients added in the fourth quarter of 2024.
Total Payment Volume increased 27.6% to $6.9 billion in the fourth quarter of 2024, compared to $5.4 billion in the fourth quarter of 2023.
Revenue Less Ancillary Services increased 17.4% to $112.8 million in the fourth quarter of 2024, compared to $96.1 million in the fourth quarter of 2023.
Adjusted Gross Profit increased to $75.6 million, up 19.1% compared to $63.5 million in the fourth quarter of 2023. Adjusted Gross Margin was 67.0% in the fourth quarter of 2024 compared to 66.1% in the fourth quarter of 2023.
Adjusted EBITDA increased to $16.7 million in the fourth quarter of 2024, compared to $7.7 million in the fourth quarter of 2023. Our adjusted EBITDA margins increased 680 bps year-over-year to 14.8% in the fourth quarter of 2024.

2024 Business Highlights:

We signed more than 800 new clients in fiscal-year 2024 surpassing the 700 new clients signed in fiscal-year 2023.
Our transaction payment volume grew by 23.6% year-over-year to $29.7 billion
Our global education vertical, continued to strengthen in a number of core geographies, with U.K. region outperformance driven by new clients and net revenue retention; accompanied by growth in our network of international recruitment agents to further connect our ecosystem of clients, agents and payers
Our travel vertical grew into our second largest vertical in terms of revenue less ancillary services, and we generated strong growth most notably with EMEA and APAC based Tour Operators and DMC providers, particularly in our new sub vertical of ocean experiences.
Our business-to-business vertical continued its strong organic growth, enhanced by the acquisition of Invoiced.
We further optimized our global payment network to enable vertical growth with a focus on new acceptance rails, market localization and expanded network coverage. This included continued support of our strategic payer markets like India and China, enhancing our offerings to digitize the disbursement of student loans from India and strengthening partnerships with India’s three largest banks.
We repurchased 2.3 million shares for approximately $44 million, inclusive of commissions, under our share repurchase program announced on August 6th, 2024.

First Quarter and Fiscal-Year 2025 Outlook:

“Effective execution drove both revenue growth and margin expansion in 2024, in spite of significant macroeconomic challenges” said Flywire’s CFO, Cosmin Pitigoi. “For our 2025 financial outlook, we project revenue less ancillary services growth of 10-14% on an FX-neutral (constant currency) basis, and a 200-400 basis point increase in adjusted EBITDA margin. We expect approximately 3 percentage points of headwind from FX throughout the year. This guidance excludes the contributions from the Sertifi acquisition, as well as any potential lessening of the macroeconomic headwinds. We are particularly encouraged by the anticipated performance of our combined travel vertical, as well as the emerging B2B vertical, both of which are expected to exceed our historical growth rate for the applicable vertical”

Based on information available as of February 25, 2025, Flywire anticipates the following results for the first quarter and fiscal-year 2025 excluding Sertifi.

	Fiscal-Year 2025
FX-Neutral GAAP Revenue Growth	9-13% YoY
FX-Neutral Revenue Less Ancillary Services Growth	10-14% YoY
Adjusted EBITDA* Margin Growth	+200-400 bps YoY

	First Quarter 2025
FX-Neutral GAAP Revenue Growth	10-13% YoY
FX-Neutral Revenue Less Ancillary Services Growth	11-14% YoY
Adjusted EBITDA* Margin Growth	+300-600 bps YoY

“Based on Sertifi’s historical financials, we currently expect the acquisition to provide incremental revenue of $3.0-4.0 million and $30.0-40.0 million in revenue in the first quarter and fiscal year 2025, respectively. In addition, we currently expect the Sertifi acquisition to have a flat to slightly positive effect on adjusted EBITDA and positive (low single–digit million) effect on adjusted EBITDA, in the first quarter and fiscal year 2025, respectively, as we plan to invest in the combined solution during 2025.”

*Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA Margin growth to forecasted GAAP Net Income Margin growth within this earnings release because Flywire is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to income taxes which are directly impacted by unpredictable fluctuations in the market price of Flywire’s stock and in foreign currency exchange rates.

These statements are forward-looking and actual results may differ materially. Refer to the “Safe Harbor Statement” below for information on the factors that could cause Flywire’s actual results to differ materially from these forward-looking statements.

Conference Call

The Company will host a conference call to discuss fourth quarter and fiscal-year 2024 financial results today at 5:00 pm ET. Hosting the call will be Mike Massaro, CEO, Rob Orgel, President and COO, and Cosmin Pitigoi, CFO. The conference call can be accessed live via webcast from the Company’s investor relations website at https://ir.flywire.com/. A replay will be available on the investor relations website following the call.

Note Regarding Share Repurchase Program

Repurchases under the Company’s share repurchase program (the Repurchase Program) may be made from time to time through open market purchases, in privately negotiated transactions or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions, including Rule 10b-18. The timing, value and number of shares repurchased will be determined by the Company in its discretion and will be based on various factors, including an evaluation of current and future capital needs, current and forecasted cash flows, the Company’s capital structure, cost of capital and prevailing stock prices, general market and economic conditions, applicable legal requirements, and compliance with covenants in the Company’s credit facility that may limit share repurchases based on defined leverage ratios. The Repurchase Program does not obligate the Company to purchase a specific number of, or any, shares. The Repurchase Program does not expire and may be modified, suspended or terminated at any time without notice at the Company’s discretion.

Key Operating Metrics and Non-GAAP Financial Measures

Flywire uses non-GAAP financial measures to supplement financial information presented on a GAAP basis. The Company believes that excluding certain items from its GAAP results allows management to better understand its consolidated financial performance from period to period and better project its future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, Flywire believes these non-GAAP financial measures provide its stakeholders with useful information to help them evaluate the Company’s operating results by facilitating an enhanced understanding of the Company’s operating performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented here. Flywire’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in Flywire’s industry, may calculate non-GAAP financial measures differently, limiting the usefulness of those measures for comparative purposes.

Flywire uses supplemental measures of its performance which are derived from its consolidated financial information, but which are not presented in its consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures include the following:

Revenue Less Ancillary Services. Revenue Less Ancillary Services represents the Company’s consolidated revenue in accordance with GAAP after excluding (i) pass-through cost for printing and mailing services and (ii) marketing fees. The Company excludes these amounts to arrive at this supplemental non-GAAP financial measure as it views these services as ancillary to the primary services it provides to its clients.
Adjusted Gross Profit and Adjusted Gross Margin. Adjusted gross profit represents Revenue Less Ancillary Services less cost of revenue adjusted to (i) exclude pass-through cost for printing services, (ii) offset marketing fees against costs incurred and (iii) exclude depreciation and amortization, including accelerated amortization on the impairment of customer set-up costs tied to technology integration. Adjusted Gross Margin represents Adjusted Gross Profit divided by Revenue Less Ancillary Services. Management believes this presentation supplements the GAAP presentation of Gross Margin with a useful measure of the gross margin of the Company’s payment-related services, which are the primary services it provides to its clients.
Adjusted EBITDA. Adjusted EBITDA represents EBITDA further adjusted by excluding (i) stock-based compensation expense and related payroll taxes, (ii) the impact from the change in fair value measurement for contingent consideration associated with acquisitions,(iii) gain (loss) from the remeasurement of foreign currency, (iv) indirect taxes related to intercompany activity, (v) acquisition related transaction costs, and (vi) employee retention costs, such as incentive compensation, associated with acquisition activities. Management believes that the exclusion of these amounts to calculate Adjusted EBITDA provides useful measures for period-to-period comparisons of the Company’s business. We calculate adjusted EBITDA margin by dividing adjusted EBITDA by Revenue Less Ancillary Services.
Revenue Less Ancillary Services at Constant Currency. Revenue Less Ancillary Services at Constant Currency represents Revenue Less Ancillary Services adjusted to show presentation on a constant currency basis. The constant currency information presented is calculated by translating current period results using prior period weighted average foreign currency exchange rates. Flywire analyzes Revenue Less Ancillary Services on a constant currency basis to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations.
Non-GAAP Operating Expenses – Non-GAAP Operating Expenses represents GAAP Operating Expenses adjusted by excluding (i) stock-based compensation expense and related payroll taxes, (ii) depreciation and amortization, (iii) acquisition related transaction costs, if applicable, (iv) employee retention costs, such as incentive compensation, associated with acquisition activities and (v) the impact from the change in fair value measurement for contingent consideration associated with acquisitions.

These non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for the Company’s revenue, gross profit, gross margin or net income (loss), or operating expenses prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis. Reconciliations of Revenue Less Ancillary Services, Revenue Less Ancillary Services at Constant Currency, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA and non-GAAP Operating Expenses to the most directly comparable GAAP financial measure are presented below. Flywire encourages you to review these reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future fiscal periods, Flywire may exclude such items and may incur income and expenses similar to these excluded items. Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA Margin growth to forecasted GAAP Net Income growth within this earnings release because it is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include but are not limited to income taxes which are directly impacted by unpredictable fluctuations in the market price of Flywire’s stock and in foreign exchange rates. For figures in this press release reported on an “FX-Neutral basis,” Flywire calculates the year-over-year impact of foreign currency movements using prior period weighted average foreign currency rates.

About Flywire

Flywire is a global payments enablement and software company. We combine our proprietary global payments network, next-gen payments platform and vertical-specific software to deliver the most important and complex payments for our clients and their customers.

Flywire leverages its vertical-specific software and payments technology to deeply embed within the existing A/R workflows for its clients across the education, healthcare and travel vertical markets, as well as in key B2B industries. Flywire also integrates with leading ERP systems, such as NetSuite, so organizations can optimize the payment experience for their customers while eliminating operational challenges.

Flywire supports approximately 4,500** clients with diverse payment methods in more than 140 currencies across 240 countries and territories around the world. Flywire is headquartered in Boston, MA, USA with global offices. For more information, visit www.flywire.com. Follow Flywire on X (formerly known as Twitter), LinkedIn and Facebook.

**Excludes clients from Flywire’s Invoiced and Sertifi acquisitions

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding Flywire’s future operating results and financial position, Flywire’s business strategy and plans, market growth, and Flywire’s objectives for future operations. Flywire intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as, but not limited to, “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. Such forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions, and uncertainties. Important factors that could cause actual results to differ materially from those reflected in Flywire’s forward-looking statements include, among others, Flywire’s future financial performance, including its expectations regarding FX-Neutral GAAP Revenue Growth, FX-Neutral Revenue Less Ancillary Services Growth, and Adjusted EBITDA Margin Growth and foreign exchange rates. Risks that may cause actual results to differ materially from these forward looking statements include, but are not limited to: Flywire’s ability to execute its business plan and effectively manage its growth; Flywire’s cross-border expansion plans and ability to expand internationally; anticipated trends, growth rates, and challenges in Flywire’s business and in the markets in which Flywire operates; the sufficiency of Flywire’s cash and cash equivalents to meet its liquidity needs; political, economic, foreign currency exchange rate, inflation, legal, social and health risks, that may affect Flywire’s business or the global economy; Flywire’s beliefs and objectives for future operations; Flywire’s ability to develop and protect its brand; Flywire’s ability to maintain and grow the payment volume that it processes; Flywire’s ability to further attract, retain, and expand its client base; Flywire’s ability to develop new solutions and services and bring them to market in a timely manner; Flywire’s expectations concerning relationships with third parties, including financial institutions and strategic partners; the effects of increased competition in Flywire’s markets and its ability to compete effectively; recent and future acquisitions or investments in complementary companies, products, services, or technologies; Flywire’s ability to enter new client verticals, including its relatively new business-to-business sector; Flywire’s expectations regarding anticipated technology needs and developments and its ability to address those needs and developments with its solutions; Flywire’s expectations regarding its ability to meet existing performance obligations and maintain the operability of its solutions; Flywire’s expectations regarding the effects of existing and developing laws and regulations, including with respect to payments and financial services, taxation, privacy and data protection; economic and industry trends, projected growth, or trend analysis; the effects of global events and geopolitical conflicts, including without limitation the continuing hostilities in Ukraine and involving Israel; Flywire’s ability to adapt to changes in U.S. federal income or other tax laws or the interpretation of tax laws, including the Inflation Reduction Act of 2022; Flywire’s ability to attract and retain qualified employees; Flywire’s ability to maintain, protect, and enhance its intellectual property; Flywire’s ability to maintain the security and availability of its solutions; the increased expenses associated with being a public company; the future market price of Flywire’s common stock; and other factors that are described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Flywire’s Annual Report on Form 10-K for the year ended December 31, 2023, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which are on file with the Securities and Exchange Commission (SEC) and available on the SEC’s website at https://www.sec.gov/. Additional factors may be described in those sections of Flywire’s Annual Report on Form 10-K for the year ended December 31, 2024, expected to be filed in the first quarter of 2025. The information in this release is provided only as of the date of this release, and Flywire undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

Contacts

Investor Relations:
Masha Kahn
ir@Flywire.com

Media:
Sarah King
Media@Flywire.com

Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited) (Amounts in thousands, except share and per share amounts)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Revenue	$	117,550		$	100,545		$	492,144		$	403,094
Costs and operating expenses:
Payment processing services costs		41,384			36,780			177,490			147,339
Technology and development		17,370			16,898			66,636			62,028
Selling and marketing		33,353			28,830			129,435			107,621
General and administrative		31,218			28,065			125,838			107,624
Total costs and operating expenses		123,325			110,573			499,399			424,612
Loss from operations	$	(5,775	)	$	(10,028	)	$	(7,255	)	$	(21,518	)
Other income (expense):
Interest expense		(135	)		(92	)		(538	)		(372	)
Interest income		4,872			5,638			21,440			13,349
Gain (loss) from remeasurement of foreign currency		(13,866	)		7,707			(11,787	)		4,189
Total other income (expense), net		(9,129	)		13,253			9,115			17,166
Income (loss) before provision for income taxes		(14,904	)		3,225			1,860			(4,352	)
Provision (benefit) for income taxes		995			1,938			(1,040	)		4,214
Net Income (Loss)	$	(15,899	)	$	1,287		$	2,900		$	(8,566	)
Foreign currency translation adjustment		(7,330	)		3,731			(3,594	)		3,232
Unrealized losses on available-for-sale debt securities, net	$	(441	)	$	—		$	208		$	—
Total other comprehensive income (loss)	$	(7,771	)	$	3,731		$	(3,386	)	$	3,232
Comprehensive income (loss)	$	(23,670	)	$	5,018		$	(486	)	$	(5,334	)
Net loss attributable to common stockholders – basic and diluted	$	(15,899	)	$	1,287		$	2,900		$	(8,566	)
Net loss per share attributable to common stockholders – basic	$	(0.13	)	$	0.01		$	0.02		$	(0.07	)
Net loss per share attributable to common stockholders – diluted	$	(0.12	)	$	0.01		$	0.02		$	(0.07	)
Weighted average common shares outstanding – basic		124,463,252			121,690,938			124,269,820			114,828,494
Weighted average common shares outstanding – diluted		128,924,166			128,877,877			129,339,462			114,828,494

Condensed Consolidated Balance Sheets
(Unaudited) (Amounts in thousands, except share amounts)

	December 31,			December 31,
		2024			2023
Assets
Current assets:
Cash and cash equivalents	$	495,242		$	654,608
Restricted cash		—			—
Short-term investments		115,848			—
Accounts receivable, net		23,703			18,215
Unbilled receivables, net		15,453			10,689
Funds receivable from payment partners		90,110			113,945
Prepaid expenses and other current assets		22,528			18,227
Total current assets		762,884			815,684
Long-term investments		50,125			—
Property and equipment, net		17,160			15,134
Intangible assets, net		118,684			108,178
Goodwill		149,558			121,646
Other assets		24,035			19,089
Total assets	$	1,122,446		$	1,079,731

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	15,353		$	12,587
Funds payable to clients		217,788			210,922
Accrued expenses and other current liabilities		49,297			43,315
Deferred revenue		7,337			6,968
Total current liabilities		289,775			273,792
Deferred tax liabilities		12,643			15,391
Other liabilities		5,261			4,431
Total liabilities		307,679			293,614
Commitments and contingencies (Note 16)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized as of December 31, 2024 and 2023; and no shares issued and outstanding as of December 31, 2024 and 2023		—			—
Voting common stock, $0.0001 par value; 2,000,000,000 shares authorized as of December 31, 2024 and December 31, 2023; 126,853,852 shares issued and 122,182,878 shares outstanding as of December 31, 2024; 123,010,207 shares issued and 120,695,162 shares outstanding as of December 31, 2023		13			11
Non-voting common stock, $0.0001 par value; 10,000,000 shares authorized as of December 31, 2024 and December 31, 2023; 1,873,320 shares issued and outstanding as of December 31, 2024 and December 31, 2023		—			1
Treasury voting common stock, 4,670,974 and 2,315,045 shares as of December 31, 2024 and December 31, 2023, respectively, held at cost		(46,268	)		(747	)
Additional paid-in capital		1,033,958			959,302
Accumulated other comprehensive income		(2,066	)		1,320
Accumulated deficit		(170,870	)		(173,770	)
Total stockholders’ equity		814,767			786,117
Total liabilities and stockholders’ equity	$	1,122,446		$	1,079,731

Condensed Consolidated Statement of Cash Flows
(Unaudited) (Amounts in thousands)

	Twelve Months Ended December 31,
		2024			2023
Cash flows from operating activities:
Net income (loss)	$	2,900		$	(8,566	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		17,363			15,764
Stock-based compensation expense		64,933			43,726
Amortization of deferred contract costs		972			1,789
Change in fair value of contingent consideration		(978	)		380
Deferred tax provision (benefit)		(8,794	)		72
Provision for uncollectible accounts		(83	)		326
Non-cash interest expense		230			298
Non-cash interest income		(1,435	)		—
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(5,292	)		(2,082	)
Unbilled receivables		(4,764	)		(5,394	)
Funds receivable from payment partners		23,835			(50,975	)
Prepaid expenses, other current assets and other assets		(5,322	)		(4,279	)
Funds payable to clients		6,867			86,616
Accounts payable, accrued expenses and other current liabilities		3,302			5,548
Contingent consideration		(93	)		(467	)
Other liabilities		(1,543	)		(1,260	)
Deferred revenue		(630	)		(871	)
Net cash provided by operating activities		91,468			80,625

Cash flows from investing activities:
Acquisition of businesses, net of cash acquired		(45,230	)		(32,764	)
Purchase of debt securities		(193,927	)		—
Sale of debt securities		29,598			—
Capitalization of internally developed software		(5,317	)		(5,004	)
Purchases of property and equipment		(924	)		(1,009	)
Net cash (used in) investing activities		(215,800	)		(38,777	)
Cash flows from financing activities:
Proceeds from issuance of common stock under public offering, net of underwriter discounts and commissions		—			261,119
Payments of costs related to public offering		—			(1,062	)
Payment of debt issuance costs		(783	)		—
Contingent consideration paid for acquisitions		(1,032	)		(1,207	)
Payments of tax withholdings for net settled equity awards		(797	)		(8,483	)
Purchases of treasury stock		(43,740	)		—
Proceeds from the issuance of stock under Employee Stock Purchase Plan		3,108			2,691
Proceeds from exercise of stock options		5,613			10,360
Net cash provided by (used in) financing activities		(37,631	)		263,418
Effect of exchange rates changes on cash and cash equivalents		2,597			(1,835	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(159,366	)		303,431
Cash, cash equivalents and restricted cash, beginning of year	$	654,608		$	351,177
Cash, cash equivalents and restricted cash, end of year	$	495,242		$	654,608

Reconciliation of Non-GAAP Financial Measures
(Unaudited) (Amounts in millions, except percentages)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Revenue	$	117.6		$	100.5		$	492.1		$	403.1
Adjusted to exclude gross up for:
Pass-through cost for printing and mailing		(4.5	)		(4.0	)		(15.9	)		(19.4	)
Marketing fees		(0.3	)		(0.4	)		(2.0	)		(2.2	)
Revenue Less Ancillary Services	$	112.8		$	96.1		$	474.2		$	381.5
Payment processing services costs		41.4			36.8			177.5			147.3
Hosting and amortization costs within technology and development expenses		1.9			1.9			7.7			8.4
Cost of Revenue	$	43.3		$	38.7		$	185.2		$	155.7
Adjusted to:
Exclude printing and mailing costs		(4.5	)		(4.0	)		(15.9	)		(19.4	)
Offset marketing fees against related costs		(0.3	)		(0.4	)		(2.0	)		(2.2	)
Exclude depreciation and amortization		(1.3	)		(1.7	)		(5.9	)		(6.7	)
Adjusted Cost of Revenue	$	37.2		$	32.6		$	161.4		$	127.4
Gross Profit	$	74.3		$	61.8		$	306.9		$	247.4
Gross Margin		63.2	%		61.5	%		62.4	%		61.4	%
Adjusted Gross Profit	$	75.6		$	63.5		$	312.8		$	254.1
Adjusted Gross Margin		67.0	%		66.1	%		66.0	%		66.6	%

	Three Months Ended December 31, 2024									Twelve Months Ended December 31, 2024
	Transaction			Platform and Other Revenues			Revenue			Transaction			Platform and Other Revenues			Revenue
Revenue	$	95.3		$	22.3		$	117.6		$	410.2		$	81.9		$	492.1
Adjusted to exclude gross up for:
Pass-through cost for printing and mailing		—			(4.5	)		(4.5	)		—			(15.9	)		(15.9	)
Marketing fees		(0.3	)		—			(0.3	)		(2.0	)		—			(2.0	)
Revenue Less Ancillary Services	$	95.0		$	17.8		$	112.8		$	408.2		$	66.0		$	474.2
Percentage of Revenue		81.0	%		19.0	%		100.0	%		83.4	%		16.6	%		100.0	%
Percentage of Revenue Less Ancillary Services		84.2	%		15.8	%		100.0	%		86.1	%		13.9	%		100.0	%

	Three Months Ended December 31, 2023									Twelve Months Ended December 31, 2023
	Transaction			Platform and Other Revenues			Revenue			Transaction			Platform and Other Revenues			Revenue
Revenue	$	81.9		$	18.6		$	100.5		$	329.7		$	73.4		$	403.1
Adjusted to exclude gross up for:
Pass-through cost for printing and mailing		—			(4.0	)		(4.0	)		—			(19.4	)		(19.4	)
Marketing fees		(0.4	)		—			(0.4	)		(2.2	)		—			(2.2	)
Revenue Less Ancillary Services	$	81.5		$	14.6		$	96.1		$	327.5		$	54.0		$	381.5
Percentage of Revenue		81.5	%		18.5	%		100.0	%		81.8	%		18.2	%		100.0	%
Percentage of Revenue Less Ancillary Services		84.8	%		15.2	%		100.0	%		85.8	%		14.2	%		100.0	%

FX Neutral Revenue Less Ancillary Services
(unaudited) (in millions)
	Three Months Ended December 31,									Twelve Months Ended December 31,
		2024			2023		Growth Rate				2024			2023		Growth Rate
Revenue	$	117.6		$	100.5			17	%	$	492.1		$	403.1			22	%
Ancillary services		(4.8	)		(4.4	)					(17.9	)		(21.6	)
Revenue Less Ancillary Services		112.8			96.1			17	%		474.2			381.5			24	%
Effects of foreign currency rate fluctuations		(1.1	)		—						(2.3	)		—
FX Neutral Revenue Less Ancillary Services	$	111.7		$	96.1			16	%	$	471.9		$	381.5			24	%

EBITDA and Adjusted EBITDA
(Unaudited) (in millions)
	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Net loss	$	(15.9	)	$	1.3		$	2.9		$	(8.6	)
Interest expense		0.1			0.1			0.5			0.4
Interest income		(4.8	)		(5.6	)		(21.4	)		(13.3	)
Provision for income taxes		1.0			1.9			(1.0	)		4.2
Depreciation and amortization		5.0			4.3			18.5			16.4
EBITDA		(14.6	)		2.0			(0.5	)		(0.9	)
Stock-based compensation expense and related taxes		16.8			12.9			65.8			45.2
Change in fair value of contingent consideration		0.0			—			(1.0	)		0.4
(Gain) loss from remeasurement of foreign currency		13.9			(7.7	)		11.8			(4.2	)
Indirect taxes related to intercompany activity		0.5			—			0.7			0.2
Acquisition related transaction costs		0.1			0.4			0.6			0.4
Acquisition related employee retention costs		—			0.1			0.5			0.9
Adjusted EBITDA	$	16.7		$	7.7		$	77.9		$	42.0

Reconciliation of Non-GAAP Operating Expenses
(Unaudited) (in millions)

	Three Months Ended December 31,						Twelve Months Ended December 31,
(in millions)	2024			2023			2024			2023
GAAP Technology and development	$	17.4		$	16.9		$	66.6		$	62.0
(-) Stock-based compensation expense and related taxes		(3.1	)		(2.5	)		(11.8	)		(9.2	)
(-) Depreciation and amortization		(2.1	)		(2.3	)		(7.4	)		(8.4	)
(-) Acquisition related employee retention costs		—			0.3			—			(0.5	)
Non-GAAP Technology and development	$	12.2		$	12.4		$	47.4		$	43.9

GAAP Selling and marketing	$	33.4		$	28.8		$	129.5		$	107.6
(-) Stock-based compensation expense and related taxes		(4.8	)		(3.2	)		(18.3	)		(12.4	)
(-) Depreciation and amortization		(2.2	)		(1.3	)		(8.2	)		(5.2	)
(-) Acquisition related employee retention costs		—			(0.2	)		(0.5	)		(0.4	)
Non-GAAP Selling and marketing	$	26.4		$	24.1		$	102.5		$	89.6

GAAP General and administrative	$	31.2		$	28.0		$	125.8		$	107.6
(-) Stock-based compensation expense and related taxes		(8.9	)		(7.2	)		(35.7	)		(23.6	)
(-) Depreciation and amortization		(0.8	)		(0.7	)		(3.0	)		(2.8	)
(-) Change in fair value of contingent consideration		—			—			1.0			(0.4	)
(-) Acquisition related transaction costs		(0.1	)		(0.4	)		(0.6	)		(0.4	)
Non-GAAP General and administrative	$	21.4		$	19.7		$	87.5		$	80.4

Net Margin, EBITDA Margin and Adjusted EBITDA Margin
(Unaudited) (Amounts in millions, except percentages)

	Three Months Ended December 31,									Twelve Months Ended December 31,
		2024			2023		Change				2024			2023		Change
Revenue (A)	$	117.6		$	100.5		$	17.1		$	492.1		$	403.1		$	89.0
Revenue less ancillary services (B)		112.8			96.1			16.7			474.2			381.5			92.7
Net loss (C)		(15.9	)		1.3			(17.2	)		2.9			(8.6	)		11.5
EBITDA (D)		(14.6	)		2.0			(16.6	)		(0.5	)		(0.9	)		0.4
Adjusted EBITDA (E)		16.7			7.7			9.0			77.9			42.0			35.9
Net margin (C/A)		-13.5	%		1.3	%		-14.8	%		0.6	%		-2.1	%		2.7	%
Net margin using RLAS (C/B)		-14.1	%		1.3	%		-15.4	%		0.6	%		-2.3	%		2.9	%
EBITDA Margin (D/A)		-12.4	%		2.0	%		-14.4	%		-0.1	%		-0.2	%		0.1	%
Adjusted EBITDA Margin (E/A)		14.2	%		7.6	%		6.6	%		15.8	%		10.4	%		5.4	%
EBITDA Margin using RLAS (D/B)		-12.9	%		2.1	%		-15.0	%		-0.1	%		-0.2	%		0.1	%
Adjusted EBITDA Margin using RLAS (E/B)		14.8	%		8.0	%		6.8	%		16.4	%		11.0	%		5.4	%

Reconciliation of FX Neutral Revenue Growth Guidance to FX Neutral Revenue Less Ancillary Services Growth Guidance

	Three Months Ended March 31, 2025						Year Ended December 31, 2025
	Low			High			Low			High

FX Neutral GAAP Revenue Growth		10	%		13	%		9	%		13	%

Adjustment for Ancillary Services		1	%		1	%		1	%		1	%

FX Neutral Revenue Less Ancillary Services Growth		11	%		14	%		10	%		14	%

The MIL Network –

February 26, 2025

MIL-OSI: Par Pacific Reports Fourth Quarter and 2024 Results

Source: GlobeNewswire (MIL-OSI)

HOUSTON, Feb. 25, 2025 (GLOBE NEWSWIRE) — Par Pacific Holdings, Inc. (NYSE: PARR) (“Par Pacific” or the “Company”) today reported its financial results for the fourth quarter and twelve months ended December 31, 2024.

Fourth quarter Net Loss of $(55.7) million, or $(1.01) per diluted share; Adjusted Net Loss of $(43.4) million, or $(0.79) per diluted share; Adjusted EBITDA of $10.9 million
Full year net loss of $(33.3) million, or $(0.59) per diluted share; Adjusted Net Income of $21.2 million, or $0.37 per diluted share; Adjusted EBITDA of $238.7 million
Record annual Retail and Logistics segment Adjusted EBITDA
Repurchased 5 million common shares during 2024, or 9% of year end shares outstanding

Par Pacific reported a net loss of $(33.3) million, or $(0.59) per diluted share, for the twelve months ended December 31, 2024, compared to net income of $728.6 million, or $11.94 per diluted share, for the twelve months ended December 31, 2023. Adjusted Net Income for 2024 was $21.2 million, compared to $501.2 million for 2023. 2024 Adjusted EBITDA was $238.7 million, compared to $696.2 million for 2023.

Par Pacific reported a net loss of $(55.7) million, or $(1.01) per diluted share, for the quarter ended December 31, 2024, compared to net income of $289.3 million, or $4.77 per diluted share, for the same quarter in 2023. Fourth quarter 2024 Adjusted Net Loss was $(43.4) million, compared to Adjusted Net Income of $65.2 million in the fourth quarter of 2023. Fourth quarter 2024 Adjusted EBITDA was $10.9 million, compared to $122.0 million in the fourth quarter of 2023. A reconciliation of reported non-GAAP financial measures to their most directly comparable GAAP financial measures can be found in the tables accompanying this news release.

“Our 2024 results underscore our strategic diversification with strong contribution from Hawaii Refining and record profitability in our Retail and Logistics segments,” said Will Monteleone, President and Chief Executive Officer. “Completing the Montana turnaround prior to the summer driving season and starting up our capital efficient Hawaii Sustainable Aviation Fuel project position us for earnings growth.”

Refining

The Refining segment generated operating income of $17.4 million for the year ended December 31, 2024, compared to $676.2 million for the year ended December 31, 2023. Adjusted Gross Margin for the Refining segment in the year ended December 31, 2024 was $618.3 million, compared to $995.0 million in the year ended December 31, 2023.

Refining segment Adjusted EBITDA for the year ended December 31, 2024 was $139.2 million, compared to $621.5 million for the year ended December 31, 2023.

The Refining segment reported an operating loss of $(65.4) million in the fourth quarter of 2024, compared to operating income of $174.0 million in the fourth quarter of 2023. Adjusted Gross Margin for the Refining segment was $92.4 million in the fourth quarter of 2024, compared to $227.2 million in the fourth quarter of 2023.

Refining segment Adjusted EBITDA was $(22.3) million in the fourth quarter of 2024, compared to $106.5 million in the fourth quarter of 2023.

Hawaii
The Hawaii Index averaged $5.52 per barrel in the fourth quarter of 2024, compared to $12.48 per barrel in the fourth quarter of 2023. Throughput in the fourth quarter of 2024 was 83 thousand barrels per day (Mbpd), compared to 81 Mbpd for the same quarter in 2023. Production costs were $4.42 per throughput barrel in the fourth quarter of 2024, compared to $4.80 per throughput barrel in the same period of 2023.

The Hawaii refinery’s Adjusted Gross Margin was $7.36 per barrel during the fourth quarter of 2024, including a net price lag impact of approximately $(5.4) million, or $(0.71) per barrel, compared to $16.73 per barrel during the fourth quarter of 2023.

Montana
The Montana Index averaged $5.75 per barrel in the fourth quarter of 2024, compared to $14.80 in the fourth quarter of 2023. The Montana refinery’s throughput in the fourth quarter of 2024 was 52 Mbpd, compared to 50 Mbpd for the same quarter in 2023. Production costs were $10.48 per throughput barrel in the fourth quarter of 2024, compared to $12.03 per throughput barrel in the same period of 2023.

The Montana refinery’s Adjusted Gross Margin was $3.70 per barrel during the fourth quarter of 2024, compared to $11.55 per barrel during the fourth quarter of 2023.

Washington
The Washington Index averaged $(0.62) per barrel in the fourth quarter of 2024, compared to $5.23 per barrel in the fourth quarter of 2023. The Washington refinery’s throughput was 39 Mbpd in the fourth quarter of 2024, compared to 38 Mbpd in the fourth quarter of 2023. Production costs were $4.34 per throughput barrel in the fourth quarter of 2024, compared to $4.53 per throughput barrel in the same period of 2023.

The Washington refinery’s Adjusted Gross Margin was $1.05 per barrel during the fourth quarter of 2024, compared to $7.87 per barrel during the fourth quarter of 2023.

Wyoming

The Wyoming Index averaged $13.36 per barrel in the fourth quarter of 2024, compared to $16.58 per barrel in the fourth quarter of 2023. The Wyoming refinery’s throughput was 14 Mbpd in the fourth quarter of 2024, compared to 17 Mbpd in the fourth quarter of 2023. Production costs were $11.49 per throughput barrel in the fourth quarter of 2024, compared to $8.03 per throughput barrel in the same period of 2023.

The Wyoming refinery’s Adjusted Gross Margin was $11.11 per barrel during the fourth quarter of 2024, including a FIFO impact of approximately $(2.2) million, or $(1.75) per barrel, compared to $13.90 per barrel during the fourth quarter of 2023.

Wyoming Refining Operational Update

The Wyoming refinery experienced an operational incident on the evening of February 12, 2025, and has remained safely idled through the extreme winter weather conditions. We expect to restart the refinery in mid-April at reduced throughput and return to full operations by the end of May.

Retail

The Retail segment reported operating income of $64.8 million for the twelve months ended December 31, 2024, compared to $56.6 million in the twelve months ended December 31, 2023. Adjusted Gross Margin for the Retail segment was $164.7 million for the twelve months ended December 31, 2024, compared to $155.3 million in the twelve months ended December 31, 2023.

For the twelve months ended December 31, 2024, Retail Adjusted EBITDA was $76.0 million, compared to $68.3 million for the twelve months ended December 31, 2023. For the twelve months ended December 31, 2024, the Retail segment reported fuel sales volumes of 121.5 million gallons, compared to 117.6 million gallons for the twelve months ended December 31, 2023. 2024 same store fuel volumes and inside sales revenue increased by 2.2% and 4.6%, respectively, compared to 2023.

The Retail segment reported operating income of $19.5 million in the fourth quarter of 2024, compared to $14.6 million in the fourth quarter of 2023. Adjusted Gross Margin for the Retail segment was $43.4 million in the fourth quarter of 2024, compared to $40.5 million in the same quarter of 2023.

Retail segment Adjusted EBITDA was $22.2 million in the fourth quarter of 2024, compared to $17.2 million in the fourth quarter of 2023. The Retail segment reported sales volumes of 30.3 million gallons in the fourth quarter of 2024, compared to 29.8 million gallons in the same quarter of 2023. Fourth quarter 2024 same store fuel volumes and inside sales revenue increased by 2.1% and 6.2%, respectively, compared to fourth quarter of 2023.

Logistics

The Logistics segment generated operating income of $89.4 million for the twelve months ended December 31, 2024, compared to $69.7 million for the twelve months ended December 31, 2023. Adjusted Gross Margin for the Logistics segment was $135.8 million for the twelve months ended December 31, 2024, compared to $121.2 million for the twelve months ended December 31, 2023.

Adjusted EBITDA for the Logistics segment was $120.2 million for the twelve months ended December 31, 2024, compared to $96.7 million for the twelve months ended December 31, 2023.

The Logistics segment reported operating income of $24.8 million in the fourth quarter of 2024, compared to $15.7 million in the fourth quarter of 2023. Adjusted Gross Margin for the Logistics segment was $36.8 million in the fourth quarter of 2024, compared to $35.3 million in the same quarter of 2023.

Logistics segment Adjusted EBITDA was $33.0 million in the fourth quarter of 2024, compared to $24.0 million in the fourth quarter of 2023.

Liquidity

Net cash provided by operations totaled $83.8 million for the twelve months ended December 31, 2024, including working capital outflows of $(18.1) million and deferred turnaround expenditures of $(73.5) million. Excluding these items, net cash provided by operations totaled $175.3 million for the twelve months ended December 31, 2024. Net cash provided by operations totaled $579.2 million for the twelve months ended December 31, 2023.

Net cash used in operations totaled $(15.5) million for the three months ended December 31, 2024, including working capital inflows of $19.9 million and deferred turnaround expenditures of $(15.7) million. Excluding these items, net cash used in operations totaled $(19.6) million for the three months ended December 31, 2024. Net cash used in operations totaled $(2.3) million for the three months ended December 31, 2023.

Net cash used in investing activities totaled $(47.7) million and $(134.0) million for the three months and twelve months ended December 31, 2024, respectively, compared to $(27.3) million and $(659.0) million for the three months and twelve months ended December 31, 2023, respectively. Net cash used in investing activities for the three months and twelve months ended December 31, 2024, includes $(47.7) million and $(135.5) million in capital expenditures, respectively.

Net cash provided by (used in) financing activities totaled $72.1 million and $(37.0) million for the three months and twelve months ended December 31, 2024, respectively, compared to net cash used in financing activities of $(56.6) million and $(135.6) million for the three months and twelve months ended December 31, 2023, respectively.

At December 31, 2024, Par Pacific’s cash balance totaled $191.9 million, gross term debt was $644.2 million, and total liquidity was $613.7 million. Net term debt was $452.3 million at December 31, 2024. In February 2025, the Company’s Board of Directors authorized management to repurchase up to $250 million of common stock, with no specified end date. This replaces the prior authorization to repurchase up to $250 million of common stock.

Laramie Energy

In conjunction with Laramie Energy LLC’s (“Laramie’s”) refinancing and subsequent cash distribution to Par Pacific during the first quarter of 2023, we resumed the application of equity method accounting for our investment in Laramie effective February 21, 2023.

During the three and twelve months ended December 31, 2024, we recorded $(3.2) million and $(0.3) million of equity losses. Laramie’s total net loss was $(11.3) million in the fourth quarter of 2024, including unrealized losses on derivatives of $(5.2) million, compared to net income of $42.5 million in the fourth quarter of 2023. Laramie’s total net loss was $(15.5) million during the twelve months ended December 31, 2024, including unrealized losses on derivatives of $(3.6) million, compared to net income of $96.6 million during the twelve months ended December 31, 2023.

Laramie’s total Adjusted EBITDAX was $11.0 million and $45.8 million for the three and twelve months ended December 31, 2024, respectively, compared to $19.6 million and $89.7 million for the three and twelve months ended December 31, 2023, respectively.

Laramie’s balance sheet position is strong with $68.6 million of cash and $160.0 million of debt at December 31, 2024. Laramie’s 2024 production was 96.6 million cubic feet of gas equivalent per day (MMcfe/d) and its management team plans to run a one-rig program throughout 2025. Approximately 79% of Laramie’s 2025 production is hedged at $3.20 per million British thermal unit (MMBtu).

Conference Call Information

A conference call is scheduled for Wednesday, February 26, 2025 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). To access the call, please dial 1-833-974-2377 inside the U.S. or 1-412-317-5782 outside of the U.S. and ask for the Par Pacific call. Please dial in at least 10 minutes early to register. The webcast may be accessed online through the Company’s website at http://www.parpacific.com on the Investors page. A telephone replay will be available until March 12, 2025, and may be accessed by calling 1-877-344-7529 inside the U.S. or 1-412-317-0088 outside the U.S. and using the conference ID 2219355.

About Par Pacific

Par Pacific Holdings, Inc. (NYSE: PARR), headquartered in Houston, Texas, is a growing energy company providing both renewable and conventional fuels to the western United States. Par Pacific owns and operates 219,000 bpd of combined refining capacity across four locations in Hawaii, the Pacific Northwest and the Rockies, and an extensive energy infrastructure network, including 13 million barrels of storage, and marine, rail, rack, and pipeline assets. In addition, Par Pacific operates the Hele retail brand in Hawaii and the “nomnom” convenience store chain in the Pacific Northwest. Par Pacific also owns 46% of Laramie Energy, LLC, a natural gas production company with operations and assets concentrated in Western Colorado. More information is available at www.parpacific.com.

Forward-Looking Statements

This news release (and oral statements regarding the subject matter of this news release, including those made on the conference call and webcast announced herein) includes 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, which are intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements include, without limitation, statements about: expected market conditions; anticipated free cash flows; anticipated refinery throughput; anticipated cost savings; anticipated capital expenditures, including major maintenance costs, and their effect on our financial and operating results, including earnings per share and free cash flow; anticipated retail sales volumes and on-island sales; the anticipated financial and operational results of Laramie Energy, LLC; the amount of our discounted net cash flows and the impact of our NOL carryforwards thereon; our ability to identify, acquire, and develop energy, related retailing, and infrastructure businesses; the timing and expected results of certain development projects, as well as the impact of such investments on our product mix and sales; the anticipated synergies and other benefits of the Billings refinery and associated marketing and logistics assets (“Billings Acquisition”), including renewable growth opportunities, the anticipated financial and operating results of the Billings Acquisition and the effect on Par Pacific’s cash flows and profitability (including Adjusted EBITDA and Adjusted Net Income and Free Cash Flow per share); and other risks and uncertainties detailed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any other documents that we file with the Securities and Exchange Commission. Additionally, forward-looking statements are subject to certain risks, trends, and uncertainties, such as changes to our financial condition and liquidity; the volatility of crude oil and refined product prices; the Russia-Ukraine war, Israel-Palestine conflict, Houthi attacks in the Red Sea, Iranian activities in the Strait of Hormuz and their potential impacts on global crude oil markets and our business; operating disruptions at our refineries resulting from unplanned maintenance events or natural disasters; environmental risks; changes in the labor market; and risks of political or regulatory changes. We cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should any of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. We do not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events, or otherwise. We further expressly disclaim any written or oral statements made by a third party regarding the subject matter of this news release.

Contact:
Ashimi Patel
VP, Investor Relations & Sustainability
(832) 916-3355
apatel@parpacific.com

Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Revenues	$	1,832,221		$	2,183,511		$	7,974,457		$	8,231,955
Operating expenses
Cost of revenues (excluding depreciation)		1,678,273			1,799,898			7,101,148			6,838,109
Operating expense (excluding depreciation)		139,893			155,441			584,282			485,587
Depreciation and amortization		34,911			31,943			131,590			119,830
General and administrative expense (excluding depreciation)		21,522			25,299			108,844			91,447
Equity losses (earnings) from refining and logistics investments		941			(7,485	)		(11,905	)		(11,844	)
Acquisition and integration costs		32			269			100			17,482
Par West redevelopment and other costs		3,500			2,907			12,548			11,397
Loss (gain) on sale of assets, net		108			(59	)		222			(59	)
Total operating expenses		1,879,180			2,008,213			7,926,829			7,551,949
Operating income (loss)		(46,959	)		175,298			47,628			680,006
Other income (expense)
Interest expense and financing costs, net		(21,073	)		(20,476	)		(82,793	)		(72,450	)
Debt extinguishment and commitment costs		(270	)		(1,500	)		(1,688	)		(19,182	)
Other loss, net		(422	)		(354	)		(1,869	)		(53	)
Equity earnings (losses) from Laramie Energy, LLC		(3,163	)		14,279			(296	)		24,985
Total other expense, net		(24,928	)		(8,051	)		(86,646	)		(66,700	)
Income (loss) before income taxes		(71,887	)		167,247			(39,018	)		613,306
Income tax benefit (expense)		16,192			122,077			5,696			115,336
Net income (loss)	$	(55,695	)	$	289,324		$	(33,322	)	$	728,642

Weighted-average shares outstanding
Basic		55,252			59,403		56,775			60,035
Diluted		55,252			60,609		56,775			61,014

Income (loss) per share
Basic	$	(1.01	)	$	4.87	$	(0.59	)	$	12.14
Diluted	$	(1.01	)	$	4.77	$	(0.59	)	$	11.94

Balance Sheet Data
(Unaudited)
(in thousands)

	December 31, 2024		December 31, 2023
Balance Sheet Data
Cash and cash equivalents	$	191,921	$	279,107
Working capital (1)		488,940		190,042
ABL Credit Facility		483,000		115,000
Term debt (2)		644,233		550,621
Total debt, including current portion		1,112,967		650,858
Total stockholders’ equity		1,191,302		1,335,424

_______________________________________

(1)	Working capital is calculated as (i) total current assets excluding cash and cash equivalents less (ii) total current liabilities excluding current portion of long-term debt. Total current assets include inventories stated at the lower of cost or net realizable value.
(2)	Term debt includes the Term Loan Credit Agreement and other long-term debt.

Operating Statistics

The following table summarizes key operational data:

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Total Refining Segment
Feedstocks throughput (Mbpd) (1)		187.8			186.0			186.7			170.3
Refined product sales volume (Mbpd) (1)		199.4			194.4			199.9			183.1

Hawaii Refinery
Feedstocks throughput (Mbpd)		83.3			80.6			81.1			80.8

Yield (% of total throughput)
Gasoline and gasoline blendstocks		27.0	%		25.2	%		26.2	%		26.3	%
Distillates		41.1	%		39.3	%		38.9	%		40.4	%
Fuel oils		29.2	%		31.8	%		31.3	%		28.9	%
Other products	(0.2)%			(0.2)%				0.2	%		1.1	%
Total yield		97.1	%		96.1	%		96.6	%		96.7	%

Refined product sales volume (Mbpd)		93.7			89.0			89.3			89.1

Adjusted Gross Margin per bbl ($/throughput bbl) (2)	$	7.36		$	16.73		$	9.34		$	15.25
Production costs per bbl ($/throughput bbl) (3)		4.42			4.80			4.58			4.57
D&A per bbl ($/throughput bbl)		0.32			0.54			0.43			0.65

Montana Refinery
Feedstocks Throughput (Mbpd) (1)		51.9			49.8			49.9			54.4

Yield (% of total throughput)
Gasoline and gasoline blendstocks		43.9	%		45.1	%		48.0	%		48.1	%
Distillates		32.7	%		38.8	%		31.9	%		32.0	%
Asphalt		15.2	%		8.7	%		10.9	%		12.1	%
Other products		2.7	%		2.5	%		3.9	%		3.2	%
Total yield		94.5	%		95.1	%		94.7	%		95.4	%

Refined product sales volume (Mbpd) (1)		52.9			51.5			53.2			58.6

Adjusted Gross Margin per bbl ($/throughput bbl) (2)	$	3.70		$	11.55		$	11.37		$	21.14
Production costs per bbl ($/throughput bbl) (3)		10.48			12.03			12.42			10.78
D&A per bbl ($/throughput bbl)		2.26			1.10			1.83			1.45

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Washington Refinery
Feedstocks throughput (Mbpd)		39.0			38.4			38.2			40.0

Yield (% of total throughput)
Gasoline and gasoline blendstocks		23.6	%		23.8	%		23.9	%		23.5	%
Distillate		34.6	%		34.1	%		34.5	%		34.5	%
Asphalt		19.4	%		20.6	%		18.8	%		19.7	%
Other products		19.3	%		18.6	%		19.3	%		18.7	%
Total yield		96.9	%		97.1	%		96.5	%		96.4	%

Refined product sales volume (Mbpd)		37.9			37.0			39.2			41.7

Adjusted Gross Margin per bbl ($/throughput bbl) (2)	$	1.05		$	7.87		$	3.25		$	9.41
Production costs per bbl ($/throughput bbl) (3)		4.34			4.53			4.28			4.12
D&A per bbl ($/throughput bbl)		1.91			2.22			1.97			1.91

Wyoming Refinery
Feedstocks throughput (Mbpd)		13.6			17.2			17.5			17.6

Yield (% of total throughput)
Gasoline and gasoline blendstocks		51.5	%		50.3	%		46.9	%		47.1	%
Distillate		43.1	%		45.0	%		47.1	%		46.7	%
Fuel oils		1.7	%		2.3	%		2.4	%		2.5	%
Other products		1.7	%		1.0	%		2.1	%		1.5	%
Total yield		98.0	%		98.6	%		98.5	%		97.8	%

Refined product sales volume (Mbpd)		14.9			16.9			18.2			17.9

Adjusted Gross Margin per bbl ($/throughput bbl) (2)	$	11.11		$	13.90		$	13.73		$	25.15
Production costs per bbl ($/throughput bbl) (3)		11.49			8.03			8.10			7.50
D&A per bbl ($/throughput bbl)		3.55			2.71			2.71			2.69


Par Pacific Indices ($ per barrel)
Hawaii Index (4)	$	5.52		$	12.48		$	7.21		$	13.06
Montana Index (5)		5.75			14.80			14.39			23.71
Washington Index (6)		(0.62	)		5.23			4.13			9.81
Wyoming Index (7)		13.36			16.58			16.47			24.48

Market Cracks ($ per barrel)
Singapore 3.1.2 Product Crack (4)	$	11.69		$	19.44		$	13.36		$	19.50
Montana 6.3.2.1 Product Crack (5)		15.31			23.56			21.59			30.15
Washington 3.1.1.1 Product Crack (6)		8.29			10.83			12.11			17.91
Wyoming 2.1.1 Product Crack (7)		16.00			18.70			18.48			27.52

Crude Oil Prices ($ per barrel) (8)
Brent	$	74.01		$	82.85		$	79.86		$	82.17
WTI		70.32			78.53			75.76			77.60
ANS (-) Brent		1.00			2.21			1.55			0.95
Bakken Guernsey (-) WTI		(1.22	)		(2.20	)		(1.26	)		(0.65	)
Bakken Williston (-) WTI		(2.54	)		(2.50	)		(2.45	)		(0.09	)
WCS Hardisty (-) WTI		(12.27	)		(22.78	)		(13.90	)		(17.92	)
MSW (-) WTI		(3.68	)		(7.34	)		(4.03	)		(3.70	)
Syncrude (-) WTI		(0.42	)		(4.12	)		0.18			1.32
Brent M1-M3		0.74			1.01			1.10			0.81

Retail Segment
Retail sales volumes (thousands of gallons)		30,287			29,840			121,473			117,550

_______________________________________

(1)	Feedstocks throughput and sales volumes per day for the Montana refinery for the three months and year ended December 31, 2023 are calculated based on the 92 and 214-day periods for which we owned the Montana refinery during the three months and year ended December 31, 2023, respectively. As such, the amounts for the total refining segment represent the sum of the Hawaii, Washington, and Wyoming refineries’ throughput or sales volumes averaged over the three months and year ended December 31, 2023 plus the Montana refinery’s throughput or sales volumes averaged over the periods from October 1, 2023, to December 31, 2023 and June 1, 2023 to December 31, 2023, respectively. The 2024 amounts for the total refining segment represent the sum of the Hawaii, Montana, Washington, and Wyoming refineries’ throughput or sales volumes averaged over the three months and year ended December 31, 2024.
(2)	We calculate Adjusted Gross Margin per barrel by dividing Adjusted Gross Margin by total refining throughput. Adjusted Gross Margin for our Washington refinery is determined under the last-in, first-out (“LIFO”) inventory costing method. Adjusted Gross Margin for our other refineries is determined under the first-in, first-out (“FIFO”) inventory costing method.
(3)	Management uses production costs per barrel to evaluate performance and compare efficiency to other companies in the industry. There are a variety of ways to calculate production costs per barrel; different companies within the industry calculate it in different ways. We calculate production costs per barrel by dividing all direct production costs, which include the costs to run the refineries, including personnel costs, repair and maintenance costs, insurance, utilities, and other miscellaneous costs, by total refining throughput. Our production costs are included in Operating expense (excluding depreciation) on our condensed consolidated statements of operations, which also includes costs related to our bulk marketing operations and severance costs.
(4)	Beginning in 2025, we established the Hawaii Index as a new benchmark for our Hawaii operations. We believe the Hawaii Index, which incorporates market cracks and landed crude differentials, better reflects the key drivers impacting our Hawaii refinery’s financial performance compared to prior reported market indices. The Hawaii Index is calculated as the Singapore 3.1.2 Product Crack, or one part gasoline (RON 92) and two parts distillates (Sing Jet & Sing gasoil) as created from a barrel of Brent crude oil, less the Par Hawaii Refining, LLC (“PHR”) crude differential.
(5)	Beginning in 2025, we established the Montana Index as a new benchmark for our Montana refinery. We believe the Montana Index, which incorporates local market cracks, regional crude oil prices, and management’s estimates for other costs of sales, better reflects the key drivers impacting our Montana refinery’s financial performance compared to prior reported market indices. Beginning in 2025, market cracks have been updated to reflect local market product pricing, which better reflects our Montana refinery’s refined product sales price compared to prior reported market indices. The Montana Index is calculated as the Montana 6.3.2.1 Product Crack less Montana crude costs, less other costs of sales, including inflation-adjusted product delivery costs, yield loss expense, taxes and tariffs, and product discounts. The Montana 6.3.2.1 Product Crack is calculated by taking three parts gasoline (Billings E10 and Spokane E10), two parts distillate (Billings ULSD and Spokane ULSD), and one part asphalt (Rocky Mountain Rail Asphalt) as created from a barrel of WTI crude oil, less 100% of the RVO cost for gasoline and ULSD. Asphalt pricing is lagged by one month. The Montana crude cost is calculated as 60% WCS differential to WTI, 20% MSW differential to WTI, and 20% Syncrude differential to WTI. The Montana crude cost is lagged by three months and includes an inflation-adjusted crude delivery cost. Other costs of sales and crude delivery costs are based on historical averages and management’s estimates.
(6)	Beginning in 2025, we established the Washington Index as a new benchmark for our Washington refinery. We believe the Washington Index, which incorporates local market cracks, regional crude oil prices, and management’s estimates for other costs of sales, better reflects the key drivers impacting our Washington refinery’s financial performance compared to prior reported market indices. Beginning in 2025, market cracks have been updated to reflect local market product pricing, which better reflects our Washington refinery’s refined product sales price compared to prior reported market indices. The Washington Index is calculated as the Washington 3.1.1.1 Product Crack, less Washington crude costs, less other costs of sales, including inflation-adjusted product delivery costs, yield loss expense and state and local taxes. The Washington 3.1.1.1 Product Crack is calculated by taking one part gasoline (Tacoma E10), one part distillate (Tacoma ULSD) and one part secondary products (USGC VGO and Rocky Mountain Rail Asphalt) as created from a barrel of WTI crude oil, less 100% of the RVO cost for gasoline and ULSD. Asphalt pricing is lagged by one month. The Washington crude cost is calculated as 67% Bakken Williston differential to WTI and 33% WCS Hardisty differential to WTI. The Washington crude cost is lagged by one month and includes an inflation-adjusted crude delivery cost. Other costs of sales and crude delivery costs are based on historical averages and management’s estimates.
(7)	Beginning in 2025, we established the Wyoming Index as a new benchmark for our Wyoming refinery. We believe the Wyoming Index, which incorporates local market cracks, regional crude oil prices, and management’s estimates for other costs of sales, better reflects the key drivers impacting our Wyoming refinery’s financial performance compared to prior reported market indices. Beginning in 2025, market cracks have also been updated to reflect local market product pricing, which better reflects our Wyoming refinery’s refined product sales price compared to prior reported market indices. The Wyoming Index is calculated as the Wyoming 2.1.1 Product Crack, less Wyoming crude costs, less other cost of sales, including inflation adjusted product delivery costs and yield loss expense, based on historical averages and management’s estimates. The Wyoming 2.1.1 Product Crack is calculated by taking one part gasoline (Rockies gasoline) and one part distillate (USGC ULSD and USGC Jet) as created from a barrel of WTI crude oil, less 100% of the RVO cost for gasoline and ULSD. The Wyoming crude cost is calculated as the Bakken Guernsey differential to WTI on a one-month lag.
(8)	Beginning in 2025, crude oil prices have been updated and expanded to reflect regional differentials to Brent and WTI, which better reflect our refineries’ feedstock costs compared to prior crude oil pricing.

Non-GAAP Performance Measures

Management uses certain financial measures to evaluate our operating performance that are considered non-GAAP financial measures. These measures should not be considered in isolation or as substitutes or alternatives to their most directly comparable GAAP financial measures or any other measure of financial performance or liquidity presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies since each company may define these terms differently.

We believe Adjusted Gross Margin (as defined below) provides useful information to investors because it eliminates the gross impact of volatile commodity prices and adjusts for certain non-cash items and timing differences created by our inventory financing agreements and lower of cost and net realizable value adjustments to demonstrate the earnings potential of the business before other fixed and variable costs, which are reported separately in Operating expense (excluding depreciation) and Depreciation and amortization. Management uses Adjusted Gross Margin per barrel to evaluate operating performance and compare profitability to other companies in the industry and to industry benchmarks. We believe Adjusted Net Income (Loss) and Adjusted EBITDA (as defined below) are useful supplemental financial measures that allow investors to assess the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis, the ability of our assets to generate cash to pay interest on our indebtedness, and our operating performance and return on invested capital as compared to other companies without regard to financing methods and capital structure. We believe Adjusted EBITDA by segment (as defined below) is a useful supplemental financial measure to evaluate the economic performance of our segments without regard to financing methods, capital structure, or historical cost basis.

Beginning with financial results reported for the second quarter of 2023, Adjusted Gross Margin, Adjusted Net Income (Loss), and Adjusted EBITDA also exclude our portion of interest, taxes, and depreciation expense from our refining and logistics investments acquired on June 1, 2023, as part of the Billings Acquisition.

Beginning with financial results reported for the fourth quarter of 2023, Adjusted Gross Margin, Adjusted Net Income (Loss), and Adjusted EBITDA excludes all hedge losses (gains) associated with our Washington ending inventory and LIFO layer increment impacts associated with our Washington inventory. In addition, we have modified our environmental obligation mark-to-market adjustment to include only the mark-to-market losses (gains) associated with our net RINs liability and net obligation associated with the Washington Climate Commitment Act (“Washington CCA”) and Clean Fuel Standard. This modification was made as part of our change in how we estimate our environmental obligation liabilities.

Beginning with financial results reported for the fourth quarter of 2023, Adjusted Net Income (loss) excludes unrealized interest rate derivative losses (gains) and all Laramie Energy related impacts with the exception of cash distributions. We have recast Adjusted Net Income (Loss) for prior periods when reported to conform to the modified presentation.

Beginning with financial results reported for the first quarter of 2024, Adjusted Net Income (loss) also excludes other non-operating income and expenses. This modification improves comparability between periods by excluding income and expenses resulting from non-operating activities.

Effective as of the fourth quarter of 2024, we have modified our definition of Adjusted Gross Margin, Adjusted Net Income (Loss) and Adjusted EBITDA to align the accounting treatment for deferred turnaround costs from our refining and logistics investments with our accounting policy. Under this approach, we exclude our share of their turnaround expenses, which are recorded as period costs in their financial statements, and instead defer and amortize these costs on a straight-line basis over the period estimated until the next planned turnaround. This modification enhances consistency and comparability across reporting periods.

Adjusted Gross Margin

Adjusted Gross Margin is defined as Operating income (loss) excluding:

•		operating expense (excluding depreciation);
•		depreciation and amortization (“D&A”);
•		Par’s portion of interest, taxes, and D&A expense from refining and logistics investments;
•		impairment expense;
•		loss (gain) on sale of assets, net;
•		Par’s portion of accounting policy differences from refining and logistics investments;
•		inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, hedge losses (gains) associated with our Washington ending inventory and intermediation obligation, purchase price allocation adjustments, and LIFO layer increment and decrement impacts associated with our Washington inventory);
•		Environmental obligation mark-to-market adjustments (which represents the mark-to-market losses (gains) associated with our net RINs liability and net obligation associated with the Washington CCA and Clean Fuel Standard); and
•		unrealized loss (gain) on derivatives.

The following tables present a reconciliation of Adjusted Gross Margin to the most directly comparable GAAP financial measure, operating income (loss), on a historical basis, for selected segments, for the periods indicated (in thousands):

Three months ended December 31, 2024	Refining			Logistics		Retail
Operating income (loss)	$	(65,399	)	$	24,772	$	19,477
Operating expense (excluding depreciation)		114,706			3,829		21,358
Depreciation and amortization		24,524			7,140		2,566
Par’s portion of interest, taxes, and depreciation and amortization expense from refining and logistics investments		456			1,101		—
Inventory valuation adjustment		5,929			—		—
Environmental obligation mark-to-market adjustments		(937	)		—		—
Unrealized loss on commodity derivatives		9,220			—		—
Par’s portion of accounting policy differences from refining and logistics investments		3,856			—		—
Loss on sale of assets, net		8			—		—
Adjusted Gross Margin (1)	$	92,363		$	36,842	$	43,401

Three months ended December 31, 2023	Refining			Logistics		Retail
Operating income	$	174,038		$	15,709	$	14,594
Operating expense (excluding depreciation)		120,810			11,272		23,359
Depreciation and amortization		21,190			7,321		2,885
Par’s portion of interest, taxes, and depreciation and amortization expense from refining and logistics investments		765			952		—
Inventory valuation adjustment		(24,089	)		—		—
Environmental obligation mark-to-market adjustments		(15,672	)		—		—
Unrealized gain on commodity derivatives		(50,024	)		—		—
Loss (gain) on sale of assets, net		219			—		(308	)
Adjusted Gross Margin (1) (2)	$	227,237		$	35,254	$	40,530

Year Ended December 31, 2024	Refining			Logistics		Retail
Operating income	$	17,412		$	89,351	$	64,800
Operating expense (excluding depreciation)		479,737			15,676		88,869
Depreciation and amortization		91,108			27,033		11,037
Par’s portion of interest, taxes, and depreciation and amortization expense from refining and logistics investments		2,493			3,651		—
Inventory valuation adjustment		(490	)		—		—
Environmental obligation mark-to-market adjustments		(19,136	)		—		—
Unrealized loss on commodity derivatives		43,281			—		—
Par’s portion of accounting policy differences from refining and logistics investments		3,856			—		—
Loss (gain) on sale of assets, net		8			124		(10	)
Adjusted Gross Margin (1)	$	618,269		$	135,835	$	164,696

Year Ended December 31, 2023	Refining			Logistics		Retail
Operating income	$	676,161		$	69,744	$	56,603
Operating expense (excluding depreciation)		373,612			24,450		87,525
Depreciation and amortization		81,017			25,122		11,462
Par’s portion of interest, taxes, and depreciation and amortization expense from refining and logistics investments		1,586			1,857		—
Inventory valuation adjustment		102,710			—		—
Environmental obligation mark-to-market adjustments		(189,783	)		—		—
Unrealized gain on commodity derivatives		(50,511	)		—		—
Loss (gain) on sale of assets, net		219			—		(308	)
Adjusted Gross Margin (1) (2)	$	995,011		$	121,173	$	155,282

_______________________________________

(1)	For the three months and years ended December 31, 2024 and 2023, there was no impairment expense in Operating income.
(2)	For the three months and year ended December 31, 2023, there was no impact in Operating income from accounting policy differences at our refining and logistics investments.

Adjusted Net Income (Loss) and Adjusted EBITDA

Adjusted Net Income (Loss) is defined as Net income (loss) excluding:

•		inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, hedge losses (gains) associated with our Washington ending inventory and intermediation obligation, purchase price allocation adjustments, and LIFO layer increment and decrement impacts associated with our Washington inventory);
•		Environmental obligation mark-to-market adjustments (which represents the mark-to-market losses (gains) associated with our net RINs liability and net obligation associated with the Washington CCA and Clean Fuel Standard);
•		unrealized (gain) loss on derivatives;
•		acquisition and integration costs;
•		redevelopment and other costs related to Par West;
•		debt extinguishment and commitment costs;
•		increase in (release of) tax valuation allowance and other deferred tax items;
•		changes in the value of contingent consideration and common stock warrants;
•		severance costs and other non-operating expense (income);
•		(gain) loss on sale of assets;
•		impairment expense;
•		impairment expense associated with our investment in Laramie Energy;
•		Par’s share of equity (earnings) losses from Laramie Energy, LLC, excluding cash distributions; and
•		Par’s portion of accounting policy differences from refining and logistics investments.

Adjusted EBITDA is defined as Adjusted Net Income (Loss) excluding:

•		D&A;
•		interest expense and financing costs, net, excluding unrealized interest rate derivative loss (gain);
•		cash distributions from Laramie Energy, LLC to Par;
•		Par’s portion of interest, taxes, and D&A expense from refining and logistics investments; and
•		income tax expense (benefit) excluding the increase in (release of) tax valuation allowance.

The following table presents a reconciliation of Adjusted Net Income (Loss) and Adjusted EBITDA to the most directly comparable GAAP financial measure, net income (loss), on a historical basis for the periods indicated (in thousands):

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Net income (loss)	$	(55,695	)	$	289,324		$	(33,322	)	$	728,642
Inventory valuation adjustment		5,929			(24,089	)		(490	)		102,710
Environmental obligation mark-to-market adjustments		(937	)		(15,672	)		(19,136	)		(189,783	)
Unrealized loss (gain) on derivatives		8,729			(48,539	)		42,485			(49,690	)
Acquisition and integration costs		32			269			100			17,482
Par West redevelopment and other costs		3,500			2,907			12,548			11,397
Debt extinguishment and commitment costs		270			1,500			1,688			19,182
Changes in valuation allowance and other deferred tax items (1)		(12,553	)		(126,219	)		(3,315	)		(126,219	)
Severance costs and other non-operating expense (2)		154			100			14,802			1,785
Loss (gain) on sale of assets, net		108			(59	)		222			(59	)
Equity (earnings) losses from Laramie Energy, LLC, excluding cash distributions		3,163			(14,279	)		1,781			(14,279	)
Par’s portion of accounting policy differences from refining and logistics investments		3,856			—			3,856			—
Adjusted Net Income (Loss) (3) (4)		(43,444	)		65,243			21,219			501,168
Depreciation and amortization		34,911			31,943			131,590			119,830
Interest expense and financing costs, net, excluding unrealized interest rate derivative loss (gain)		21,564			18,991			83,589			71,629
Laramie Energy, LLC cash distributions to Par		—			—			(1,485	)		(10,706	)
Par’s portion of interest, taxes, and depreciation and amortization expense from refining and logistics investments		1,557			1,717			6,144			3,443
Income tax expense (benefit)		(3,639	)		4,142			(2,381	)		10,883
Adjusted EBITDA (3)	$	10,949		$	122,036		$	238,676		$	696,247

_______________________________________

(1)	For the three months and year ended December 31, 2024, we recognized a non-cash deferred tax benefit of $12.6 million and $3.3 million, respectively. This tax benefit is included in Income tax expense (benefit) on our consolidated statements of operations. For the three months and year ended December 31, 2023, we recognized a non-cash deferred tax benefit of $126.2 million primarily related to the release of a majority of the valuation allowance against our federal net deferred tax assets.
(2)	For the year ended December 31, 2024, we incurred $13.1 million of stock-based compensation expenses associated with accelerated vesting of equity awards and modification of vested equity awards related to our CEO transition and $0.8 million for a legal settlement unrelated to current operating activities.
(3)	For the three months and years ended December 31, 2024 and 2023, there was no change in value of contingent consideration, change in value of common stock warrants, impairment expense, impairments associated with our investment in Laramie Energy, or our share of Laramie Energy’s asset impairment losses in excess of our basis difference. Please read the Non-GAAP Performance Measures discussion above for information regarding changes to the components of Adjusted Net Income (Loss) and Adjusted EBITDA made during the reporting periods.
(4)	For the three months and year ended December 31, 2023, there was no impact in Operating income from accounting policy differences at our refining and logistics investments.

The following table sets forth the computation of basic and diluted Adjusted Net Income (Loss) per share (in thousands, except per share amounts):

	Three Months Ended December 31,					Year Ended December 31,
		2024			2023		2024		2023
Adjusted Net Income (Loss)	$	(43,444	)	$	65,243	$	21,219	$	501,168
Plus: effect of convertible securities		—			—		—		—
Numerator for diluted income (loss) per common share	$	(43,444	)	$	65,243	$	21,219	$	501,168

Basic weighted-average common stock shares outstanding		55,252			59,403		56,775		60,035
Add dilutive effects of common stock equivalents (1)		—			1,206		657		979
Diluted weighted-average common stock shares outstanding		55,252			60,609		57,432		61,014

Basic Adjusted Net Income (Loss) per common share	$	(0.79	)	$	1.10	$	0.37	$	8.35
Diluted Adjusted Net Income (Loss) per common share	$	(0.79	)	$	1.08	$	0.37	$	8.21

_______________________________________

(1)	Entities with a net loss from continuing operations are prohibited from including potential common shares in the computation of diluted per share amounts. We have utilized the basic shares outstanding to calculate both basic and diluted Adjusted Net Loss per common share for the three months ended December 31, 2024.

Adjusted EBITDA by Segment

Adjusted EBITDA by segment is defined as Operating income (loss) excluding:

•		D&A;
•		inventory valuation adjustment (which adjusts for timing differences to reflect the economics of our inventory financing agreements, including lower of cost or net realizable value adjustments, the impact of the embedded derivative repurchase or terminal obligations, hedge losses (gains) associated with our Washington ending inventory and intermediation obligation, purchase price allocation adjustments, and LIFO layer increment and decrement impacts associated with our Washington inventory);
•		Environmental obligation mark-to-market adjustments (which represents the mark-to-market losses (gains) associated with our net RINs liability and net obligation associated with the Washington CCA and Clean Fuel Standard);
•		unrealized (gain) loss on derivatives;
•		acquisition and integration costs;
•		redevelopment and other costs related to Par West;
•		severance costs and other non-operating expense (income);
•		(gain) loss on sale of assets;
•		impairment expense;
•		Par’s portion of interest, taxes, and D&A expense from refining and logistics investments; and
•		Par’s portion of accounting policy differences from refining and logistics investments.

Adjusted EBITDA by segment also includes Gain on curtailment of pension obligation and Other income (loss), net, which are presented below operating income (loss) on our condensed consolidated statements of operations.

The following table presents a reconciliation of Adjusted EBITDA by segment to the most directly comparable GAAP financial measure, operating income (loss) by segment, on a historical basis, for selected segments, for the periods indicated (in thousands):

	Three Months Ended December 31, 2024
	Refining			Logistics		Retail		Corporate and Other
Operating income (loss) by segment	$	(65,399	)	$	24,772	$	19,477	$	(25,809	)
Depreciation and amortization		24,524			7,140		2,566		681
Inventory valuation adjustment		5,929			—		—		—
Environmental obligation mark-to-market adjustments		(937	)		—		—		—
Unrealized loss on commodity derivatives		9,220			—		—		—
Acquisition and integration costs		—			—		—		32
Par West redevelopment and other costs		—			—		—		3,500
Severance costs and other non-operating expense		—			—		154		—
Par’s portion of accounting policy differences from refining and logistics investments		3,856			—		—		—
Loss on sale of assets, net		8			—		—		100
Par’s portion of interest, taxes, depreciation and amortization expense from refining and logistics investments		456			1,101		—		—
Other loss, net		—			—		—		(422	)
Adjusted EBITDA (1)	$	(22,343	)	$	33,013	$	22,197	$	(21,918	)

	Three Months Ended December 31, 2023
	Refining			Logistics		Retail			Corporate and Other
Operating income (loss) by segment	$	174,038		$	15,709	$	14,594		$	(29,043	)
Depreciation and amortization		21,190			7,321		2,885			547
Inventory valuation adjustment		(24,089	)		—		—			—
Environmental obligation mark-to-market adjustments		(15,672	)		—		—			—
Unrealized gain on commodity derivatives		(50,024	)		—		—			—
Acquisition and integration costs		—			—		—			269
Par West redevelopment and other costs		—			—		—			2,907
Severance costs and other non-operating expenses		100			—		—			—
Loss (gain) on sale of assets, net		219			—		(308	)		30
Par’s portion of interest, taxes, depreciation and amortization expense from refining and logistics investments		765			952		—			—
Other loss, net		—			—		—			(354	)
Adjusted EBITDA (1) (2)	$	106,527		$	23,982	$	17,171		$	(25,644	)

	Year Ended December 31, 2024
	Refining			Logistics		Retail			Corporate and Other
Operating income (loss) by segment	$	17,412		$	89,351	$	64,800		$	(123,935	)
Depreciation and amortization		91,108			27,033		11,037			2,412
Inventory valuation adjustment		(490	)		—		—			—
Environmental obligation mark-to-market adjustments		(19,136	)		—		—			—
Unrealized loss on commodity derivatives		43,281			—		—			—
Acquisition and integration costs		—			—		—			100
Severance costs and other non-operating expenses		642			—		154			14,006
Par West redevelopment and other costs		—			—		—			12,548
Par’s portion of accounting policy differences from refining and logistics investments		3,856			—		—			—
Loss (gain) on sale of assets, net		8			124		(10	)		100
Par’s portion of interest, taxes, depreciation and amortization expense from refining and logistics investments		2,493			3,651		—			—
Other loss, net		—			—		—			(1,869	)
Adjusted EBITDA (1)	$	139,174		$	120,159	$	75,981		$	(96,638	)

	Year Ended December 31, 2023
	Refining			Logistics		Retail			Corporate and Other
Operating income (loss) by segment	$	676,161		$	69,744	$	56,603		$	(122,502	)
Depreciation and amortization		81,017			25,122		11,462			2,229
Inventory valuation adjustment		102,710			—		—			—
Environmental obligation mark-to-market adjustments		(189,783	)		—		—			—
Unrealized gain on commodity derivatives		(50,511	)		—		—			—
Acquisition and integration costs		—			—		—			17,482
Severance costs and other non-operating expenses		100			—		580			1,105
Par West redevelopment and other costs		—			—		—			11,397
Loss (gain) on sale of assets, net		219			—		(308	)		30
Par’s portion of interest, taxes, depreciation and amortization expense from refining and logistics investments		1,586			1,857		—			—
Other loss, net		—			—		—			(53	)
Adjusted EBITDA (1) (2)	$	621,499		$	96,723	$	68,337		$	(90,312	)

_______________________________________

(1)	For the three months and years ended December 31, 2024 and 2023, there was no change in value of contingent consideration, change in value of common stock warrants, impairment expense, impairments associated with our investment in Laramie Energy, or our share of Laramie Energy’s asset impairment losses in excess of our basis difference.
(2)	For the three months and year ended December 31, 2023, there was no impact in Operating income (loss) from accounting policy differences at our refining and logistics investments.

Laramie Energy Adjusted EBITDAX

Adjusted EBITDAX is defined as net income (loss) excluding commodity derivative loss (gain), loss (gain) on settled derivative instruments, interest expense, gain on extinguishment of debt, non-cash preferred dividend, depreciation, depletion, amortization, and accretion, exploration and geological and geographical expense, bonus accrual, equity-based compensation expense, loss (gain) on disposal of assets, phantom units, and expired acreage (non-cash). We believe Adjusted EBITDAX is a useful supplemental financial measure to evaluate the economic and operational performance of exploration and production companies such as Laramie Energy.

The following table presents a reconciliation of Laramie Energy’s Adjusted EBITDAX to the most directly comparable GAAP financial measure, net income (loss) for the periods indicated (in thousands):

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Net income (loss)	$	(11,250	)	$	42,538		$	(15,546	)	$	96,586
Commodity derivative (income) loss		4,766			(40,338	)		(11,055	)		(73,289	)
Loss on settled derivative instruments		389			1,594			14,609			161
Interest expense and loan fees		4,845			5,366			20,628			20,108
Gain on extinguishment of debt		—			—			—			6,644
Non-cash preferred dividend		—			—			—			2,910
Depreciation, depletion, amortization, and accretion		8,158			7,714			32,841			30,179
Phantom units		3,328			2,325			2,825			5,496
Loss (gain) on sale of assets, net		—			—			(8	)		307
Expired acreage (non-cash)		770			441			1,492			553
Total Adjusted EBITDAX (1)	$	11,006		$	19,640		$	45,786		$	89,655

_______________________________________

(1)	For the three months and years ended December 31, 2024 and 2023, there was no exploration and geological and geographical expense, bonus accrual, or equity-based compensation expense.

The MIL Network –

February 26, 2025

MIL-OSI: Range Announces Fourth Quarter 2024 Results and Three-Year Outlook

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, Feb. 25, 2025 (GLOBE NEWSWIRE) — RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its fourth quarter 2024 financial results, plans for 2025, and a three-year outlook through 2027.

Full-Year 2024 Highlights –

Cash flow from operating activities of $945 million
Cash flow from operations, before working capital changes, of $1.1 billion
Reduced net debt by $172 million, returned $77 million in dividends, and invested $65 million in share repurchases
Production averaged 2.18 Bcfe per day, approximately 68% natural gas
All-in capital spending of $654 million, or $0.82 per mcfe
Pre-hedge NGL realizations of $25.77 per barrel – premium of $2.33 over the Mont Belvieu equivalent
Proved reserves of 18.1 Tcfe with positive performance revisions for 17th consecutive year
Debt to EBITDAX of 1.2x (Non-GAAP) at year-end 2024
Expect to achieve Net Zero for 2024 Scope 1 and 2 GHG emissions
Maintenance capital improved by ~$50 million on strong well performance and infrastructure optimization

Dennis Degner, the Company’s CEO, commented, “Last year demonstrated the resilience of Range’s business as we successfully generated free cash flow, returned capital to shareholders and met our long-term balance sheet target. We did this despite natural gas prices being at cycle lows and while strategically investing in the business. Over the last two years, Range has made countercyclical investments to build in-process well inventory, which supports our targeted, efficient production growth plans through 2027. Importantly, we have contracted natural gas transportation to support our plans and Range will utilize new NGL export capacity towards the same premium markets that have benefited Range shareholders for many years.

An exciting chapter for U.S. natural gas is materializing as export capacity is commissioned to meet growing global gas demand. As the lowest-cost, lowest-emissions natural gas basin in the country, we expect Appalachia will play a significant role to meet global gas needs over time. We believe Range will see an outsized benefit given our proven, high-quality Marcellus inventory with duration measured in decades, our access to markets with growing demand and our advantaged full-cycle cost structure that provides the foundation for delivering through-cycle returns for shareholders.”

2025 Capital and Production Guidance

Range’s 2025 all-in capital budget is expected to be $650 to $690 million, which consists of:

Approximately $530 million of all-in maintenance capital including land and facilities
$70 – $100 million drilling and completion capital for future growth
Up to $30 million on targeted acreage which increases planned lateral lengths and future inventory
Approximately $20 – $30 million for pneumatic devices and facility upgrades

Range’s development plan for 2025 will target annual production of approximately 2.2 Bcfe per day. Consistent with 2024, Range plans to run two drilling rigs and one frac crew resulting in modest production growth in 2025 while building additional in-process well inventory for increased growth capacity in 2026 and 2027. Up to $30 million is planned for investment in non-maintenance acreage to support increased lateral lengths and incremental inventory. Approximately $20 – $30 million is planned for pneumatic devices and production facility upgrades, part of a $50 – $60 million project expected to be completed by year-end 2026 to further reduce emissions, with $10 million of the total project already completed in 2024.

The table below summarizes 2024 activity and expected 2025 plans regarding the number of wells to sales in each area. To maintain current production levels, Range will turn to sales approximately 600,000 lateral feet in a year.

	Planned Wells TIL in 2025	Wells TIL in 2024
	Planned Wells TIL in 2025	Wells TIL in 2024
SW PA Super-Rich	14	9
SW PA Wet	23	21
SW PA Dry	5	12
NE PA Dry	4	2
Total Appalachia	46	44

Three-Year Outlook

Range’s three-year outlook targets a 2027 daily production level of 2.6 Bcfe, an increase of approximately 400 Mmcfe per day compared to 2024, with annual estimated capital expenditures ranging between $650 to $700 million over the next three years. Annual capital spending is expected to represent a reinvestment rate below 50%, assuming $3.75 natural gas. Through 2027, Range expects to have maintained its 30+ years of core Marcellus inventory to support additional growth and meet future demand. Alternatively, at the end of this production profile, Range could maintain 2.6 Bcfe per day of production with approximately $570 million of annual drilling and completion capital, the equivalent of approximately $0.60 per mcfe.

Marketing and Transportation Update

Supporting Range’s planned production, the Company has secured the following incremental transportation, processing, and export capacity, all of which are expected to start in 2026:

300 Mmcf per day of processing capacity at the Harmon Creek facility
250 Mmcf per day of gas transportation, accessing expected demand growth in Midwest and Gulf Coast markets
20,000 bbl per day of NGL takeaway and export capacity utilizing a new East Coast terminal

Financial Discussion

Except for generally accepted accounting principles (“GAAP”) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables. “Unit costs” as used in this release are composed of direct operating, transportation, gathering, processing and compression, taxes other than income, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See “Non-GAAP Financial Measures” for a definition of non-GAAP financial measures and the accompanying tables that reconcile each non-GAAP measure to its most directly comparable GAAP financial measure.

Fourth Quarter 2024 Results

GAAP revenues and other income for fourth quarter 2024 totaled $626 million, GAAP net cash provided from operating activities (including changes in working capital) was $218 million, and GAAP net income was $95 million ($0.39 per diluted share). Fourth quarter earnings results include a $54 million mark-to-market derivative loss due to increases in commodity prices.

Cash flow from operations before changes in working capital, a non-GAAP measure, was $312 million. Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $164 million ($0.68 per diluted share) in fourth quarter 2024.

The following table details Range’s fourth quarter 2024 unit costs per mcfe^(a):

Expenses	4Q 2024 (per mcfe)	4Q 2023 (per mcfe)	Increase (Decrease)

Direct operating ^(a)	$ 0.12	$ 0.11	9%
Transportation, gathering, processing and compression ^(a)	1.48	1.39	6%
Taxes other than income	0.03	0.02	50%
General and administrative ^(a)	0.18	0.17	6%
Interest expense ^(a)	0.14	0.14	0%
Total cash unit costs ^(b)	1.94	1.83	6%
Depletion, depreciation and amortization (DD&A)	0.46	0.45	2%
Total unit costs plus DD&A^(b)	$ 2.40	$ 2.28	5%

(a) Excludes stock-based compensation, one-time settlements, and amortization of deferred financing costs.
(b) Totals may not be exact due to rounding.

The following table details Range’s average production and realized pricing for fourth quarter 2024^(a):

	4Q24 Production & Realized Pricing
	Natural Gas (mcf)	Oil (bbl)	NGLs (bbl)	Natural Gas Equivalent (mcfe)


Net production per day	1,505,140	5,028	111,199	2,202,500

Average NYMEX price	$ 2.80	$70.28	$ 24.47
Differential, including basis hedging	(0.44)	(10.64)	1.96
Realized prices before NYMEX hedges	2.36	59.64	26.43	3.08
Settled NYMEX hedges	0.54	11.01	0.04	0.40
Average realized prices after hedges	$ 2.90	$ 70.66	$ 26.47	$ 3.48

(a) Totals may not be exact due to rounding

Fourth quarter 2024 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $3.48 per mcfe.

The average natural gas price, including the impact of basis hedging, was $2.36 per mcf, or a ($0.44) per mcf differential to NYMEX. In 2025, Range expects its natural gas differential to be ($0.40) to ($0.48) relative to NYMEX.
Range’s pre-hedge NGL price during the quarter was $26.43 per barrel, approximately $1.96 above the Mont Belvieu weighted equivalent. Range’s 2025 NGL differential is expected to be +$0.00 to +$1.25 relative to a Mont Belvieu equivalent barrel.
Crude oil and condensate price realizations, before realized hedges, averaged $59.64 per barrel, or $10.64 below WTI (West Texas Intermediate). Range’s 2025 condensate differential is expected to be ($10.00) to ($15.00) relative to NYMEX.

Capital Expenditures

Fourth quarter 2024 drilling and completion expenditures were $124 million. In addition, during the quarter, approximately $29 million was invested in acreage leasehold, gathering systems and other. Total 2024 capital budget expenditures were $654 million, including $580 million on drilling and completion, and a combined $74 million on acreage, gathering systems, pneumatic upgrades and other.

Financial Position and Repurchase Activity

As of December 31, 2024, Range had net debt outstanding of approximately $1.40 billion, consisting of $1.71 billion of senior notes and $304 million in cash. During the fourth quarter, Range repurchased in the open market $9.4 million principal amount of 4.875% senior notes due 2025 at a discount.

During the fourth quarter, Range repurchased 650,000 shares at an average price of approximately $32.50. As of year-end, the Company had approximately $1.0 billion of availability under the share repurchase program.

Range’s Board of Directors expects to approve a 12.5% increase to the quarterly cash dividend to $0.09 per share of the Company’s common stock. Details regarding the record and payment dates for quarterly dividends will be announced as each quarterly dividend is formally declared by the Board.

2024 Proved Reserves

Year-end 2024 reserves were similar to last year at 18.1 Tcfe, despite natural gas prices of $2.13 per Mmbtu, reflecting the resilience of Range’s low-cost asset base. Range also recorded its 17^th consecutive year of positive performance revisions driven by continued strong results from existing Marcellus producing wells. Proved reserves included 6.2 Tcfe of proved undeveloped reserves from approximately 2.9 million lateral feet scheduled to be developed within the next five years at an expected development cost of $0.38 per mcfe. Proved undeveloped reserves represents approximately 10% of Range’s undeveloped core Marcellus inventory.

Summary of Changes in Proved Reserves
(in Bcfe)
Balance at December 31, 2023	18,113

Extensions, discoveries and additions	749
Performance revisions	77
Price revisions	(1)
Sales	(11)
Production	(796)

Balance at December 31, 2024	18,131

As shown in the table below, the present value (PV₁₀) of reserves under SEC methodology was $5.5 billion. For comparison, the PV₁₀ using December 31, 2024 strip prices equates to $12.2 billion using the same proven reserve volumes.

	2024 SEC Pricing ^(a)	Strip Price Average ^(b)

Natural Gas Price ($/MMBtu)	$2.13	$3.54
WTI Oil Price ($/Bbl)	$74.88	$63.62
NGL Price ($/Bbl)	$24.40	$25.21

Proved Reserves PV₁₀($ billions)	$5.5	$12.2

a) SEC benchmark prices adjusted for energy content, quality and basis differentials were $1.74 per mcf and $63.39 per barrel of crude oil.
b) NYMEX 10-year strip prices adjusted for energy content, quality and basis differentials realized an average gas price differential of ($0.47) and an average realized oil differential of ($12.39) per barrel, which equate to $3.07 per mcf and $51.23 per barrel over the life of the reserves.

Guidance – 2025

Capital & Production Guidance

Range’s 2025 all-in capital budget is $650 million – $690 million. Annual production is expected to be approximately 2.2 Bcfe per day for 2025. Liquids are expected to be over 30% of production.

Full Year 2025 Expense Guidance

Direct operating expense:	$0.12 – $0.14 per mcfe
Transportation, gathering, processing and compression expense:	$1.50 – $1.55 per mcfe
Taxes other than income:	$0.03 – $0.04 per mcfe
Exploration expense:	$24 – $28 million
G&A expense:	$0.17 – $0.19 per mcfe
Net Interest expense:	$0.12 – $0.13 per mcfe
DD&A expense:	$0.45 – $0.46 per mcfe
Net brokered gas marketing expense:	$8 – $12 million

Full Year 2025 Price Guidance

Based on recent market indications, Range expects to average the following price differentials for its production in 2025.

FY 2025 Natural Gas:⁽¹⁾	NYMEX minus $0.40 to $0.48
FY 2025 Natural Gas Liquids:⁽²⁾	MB plus $0.00 to $1.25 per barrel
FY 2025 Oil/Condensate:	WTI minus $10.00 to $15.00

(1) Including basis hedging
(2) Mont Belvieu-equivalent pricing based on weighting of 53% ethane, 27% propane, 8% normal butane, 4% iso-butane and 8% natural gasoline.

Hedging Status

Range hedges portions of its expected future production volumes to increase the predictability of cash flow and maintain a strong, flexible financial position. Please see the detailed hedging schedule posted on the Range website under Investor Relations – Financial Information.

Range has also hedged basis across the Company’s numerous natural gas sales points to limit volatility between benchmark and regional prices. The combined fair value of natural gas basis hedges as of December 31, 2024, was a net loss of $29.2 million.

Conference Call Information

A conference call to review the financial results is scheduled on Wednesday, February 26 at 8:00 AM Central Time (9:00 AM Eastern Time). Please click here to pre-register for the conference call and obtain a dial in number with passcode.

A simultaneous webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company’s website until March 26^th.

Non-GAAP Financial Measures

To supplement the presentation of its financial results prepared in accordance with generally accepted accounting principles (GAAP), the Company’s earnings press release contains certain financial measures that are not presented in accordance with GAAP. Management believes certain non-GAAP measures may provide financial statement users with meaningful supplemental information for comparisons within the industry. These non-GAAP financial measures may include, but are not limited to Net Income, excluding certain items, Cash flow from operations before changes in working capital, realized prices, Net debt and Cash margin.

Adjusted net income comparable to analysts’ estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income comparable to analysts’ estimates is calculated on the same basis as analysts’ estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts’ estimates on a diluted per share basis. A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts’ estimates and diluted earnings per share (adjusted). On its website, the Company provides additional comparative information on prior periods.

Cash flow from operations before changes in working capital represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital (sometimes referred to as “adjusted cash flow”) is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each income statement line to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense, which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers’ understanding and fully disclose the information needed.

Net debt is calculated as total debt less cash and cash equivalents. The Company believes this measure is helpful to investors and industry analysts who utilize Net debt for comparative purposes across the industry.

The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company’s Annual or Quarterly Reports on Form 10-K or 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.

We believe that the presentation of PV₁₀ value of our proved reserves is a relevant and useful metric for our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV₁₀ is based on prices and discount factors that are consistent for all companies. Because of this, PV₁₀ can be used within the industry and by credit and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com.

Included within this release are certain “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range’s current beliefs, expectations or intentions regarding future events. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook”, “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements.

All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, future commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are 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. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and Range’s future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as “resource potential,” “unrisked resource potential,” “unproved resource potential” or “upside” or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC’s guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range’s internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range’s management. “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Actual quantities that may be recovered from Range’s interests could differ substantially. Factors affecting ultimate recovery include the scope of Range’s drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.

In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price or drilling cost changes. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC’s website at www.sec.gov or by calling the SEC at 1-800-SEC-0330.

SOURCE: Range Resources Corporation

Range Investor Contacts:

Laith Sando
817-869-4267

Matt Schmid
817-869-1538

Range Media Contact:

Mark Windle
724-873-3223

RANGE RESOURCES CORPORATION


STATEMENTS OF INCOME
Based on GAAP reported earnings with additional
details of items included in each line in Form 10-K
(Unaudited, In thousands, except per share data)
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2024			2023			%		2024			2023			%
Revenues and other income:
Natural gas, NGLs and oil sales (a)	$	635,122		$	603,279				$	2,213,850		$	2,334,661
Derivative fair value (loss) income		(53,804	)		291,059					56,726			821,154
Brokered natural gas and marketing		41,535			44,460					133,048			206,552
ARO settlement (loss) gain (b)		–			2					(26	)		1
Interest income (b)		3,144			1,921					12,651			5,937
Gain on sale of assets (b)		89			101					311			454
Other (b)		331			636					524			6,113
Total revenues and other income		626,417			941,458		-33	%		2,417,084			3,374,872		-28	%

Costs and expenses:
Direct operating		24,655			22,200					93,399			94,362
Direct operating – stock-based compensation (c)		468			443					1,922			1,723
Transportation, gathering, processing and compression		299,401			283,061					1,177,925			1,113,941
Taxes other than income		6,166			4,083					21,625			23,726
Brokered natural gas and marketing		41,655			44,319					138,080			200,789
Brokered natural gas and marketing – stock-based compensation (c)		603			491					2,465			2,095
Exploration		7,983			7,193					25,489			25,280
Exploration – stock-based compensation (c)		349			315					1,354			1,250
Abandonment and impairment of unproved properties		(201	)		2,051					8,417			46,359
General and administrative		35,485			34,472					133,303			127,838
General and administrative – stock-based compensation (c)		10,905			9,389					38,004			35,850
General and administrative – lawsuit settlements		91			114					782			1,052
General and administrative – bad debt expense		50			–					50			–
Exit costs		9,156			28,279					37,214			99,940
Deferred compensation plan (d)		3,878			(2,953	)				9,593			26,593
Interest expense		27,911			28,734					113,341			118,620
Interest expense – amortization of deferred financing costs (e)		1,357			1,352					5,417			5,384
(Gain) loss on early extinguishment of debt		(3	)		1					(257	)		(438	)
Depletion, depreciation and amortization		92,484			90,968					358,356			350,165
Total costs and expenses		562,393			554,512		1	%		2,166,479			2,274,529		-5	%

Income before income taxes		64,024			386,946		-83	%		250,605			1,100,343		-77	%

Income tax (benefit) expense
Current		2,902			(1,453	)				8,165			1,547
Deferred		(33,720	)		78,365					(23,900	)		227,654
		(30,818	)		76,912					(15,735	)		229,201

Net income	$	94,842		$	310,034		-69	%	$	266,340		$	871,142		-69	%


Net income Per Common Share
Basic	$	0.39		$	1.29				$	1.10		$	3.61
Diluted	$	0.39		$	1.27				$	1.09		$	3.57

Weighted average common shares outstanding, as reported
Basic		240,300			238,833		1	%		240,689			236,986		2	%
Diluted		242,355			241,735		0	%		242,745			239,837		1	%


(a) See separate natural gas, NGLs and oil sales information table.
(b) Included in Other income in the 10-K.
(c) Costs associated with stock compensation and restricted stock amortization, which have been reflected
in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-K.
(d) Reflects the change in market value of the vested Company stock held in the deferred compensation plan.
(e) Included in interest expense in the 10-K.

RANGE RESOURCES CORPORATION


BALANCE SHEET
(In thousands)	December 31,			December 31,
	2024			2023
	(Audited)			(Audited)
Assets
Current assets	$	636,982		$	528,794
Derivative assets		87,098			442,971
Natural gas and oil properties, successful efforts method		6,421,700			6,117,681
Other property and equipment		2,465			1,696
Operating lease right-of-use assets		119,838			23,821
Other		79,592			88,922
	$	7,347,675		$	7,203,885

Liabilities and Stockholders’ Equity
Current liabilities	$	1,263,247		$	580,469
Asset retirement obligations		1,189			2,395
Derivative liabilities		9,634			222
Senior notes	$	1,089,614			1,774,229
Deferred tax liabilities		541,378			561,288
Derivative liabilities		10,488			107
Deferred compensation liabilities		65,233			72,976
Operating lease liabilities		35,737			16,064
Asset retirement obligations and other liabilities		137,181			119,896
Divestiture contract obligation		257,317			310,688
		3,411,018			3,438,334

Common stock and retained deficit		4,449,987			4,213,585
Other comprehensive income		611			647
Common stock held in treasury		(513,941	)		(448,681	)
Total stockholders’ equity		3,936,657			3,765,551
	$	7,347,675		$	7,203,885

RECONCILIATION OF TOTAL DEBT AS REPORTED
TO NET DEBT, a non-GAAP measure
(Unaudited, in thousands)
	December 31,			December 31,
	2024			2023			%

Total debt, net of deferred financing costs, as reported	$	1,697,883		$	1,774,229		-4	%
Unamortized debt issuance costs, as reported		10,819			14,159
Less cash and cash equivalents, as reported		(304,490	)		(211,974	)
Net debt, a non-GAAP measure	$	1,404,212		$	1,576,414		-11	%

RANGE RESOURCES CORPORATION




CASH FLOWS FROM OPERATING ACTIVITIES
(Unaudited, in thousands)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023

Net income		94,842			310,034			266,340			871,142
Adjustments to reconcile net cash provided from continuing operations:
Deferred income tax (benefit) expense		(33,720	)		78,365			(23,900	)		227,654
Depletion, depreciation and amortization		92,484			90,968			358,356			350,165
Abandonment and impairment of unproved properties		(201	)		2,051			8,417			46,359
Derivative fair value loss (income)		53,804			(291,059	)		(56,726	)		(821,154	)
Cash settlements on derivative financial instruments		69,697			65,018			432,392			253,514
Divestiture contract obligation, including accretion		9,155			28,215			37,088			99,595
Allowance for bad debts		50			–			50			–
Amortization of deferred financing costs and other		1,174			1,144			4,526			4,735
Deferred and stock-based compensation		16,267			7,683			53,864			67,849
Gain on sale of assets		(89	)		(101	)		(311	)		(454	)
(Gain) loss on early extinguishment of debt		(3	)		1			(257	)		(438	)

Changes in working capital:
Accounts receivable		(121,116	)		(65,334	)		(19,586	)		223,081
Other current assets		5,485			8,235			3,676			(1,285	)
Accounts payable		26,609			7,234			(443	)		(77,057	)
Accrued liabilities and other		3,452			(16,359	)		(118,972	)		(265,814	)
Net changes in working capital		(85,570	)		(66,224	)		(135,325	)		(121,075	)
Net cash provided from operating activities		217,890			226,095			944,514			977,892



RECONCILIATION OF NET CASH PROVIDED FROM OPERATING
ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS
BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP measure
(Unaudited, in thousands)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Net cash provided from operating activities, as reported	$	217,890		$	226,095		$	944,514		$	977,892
Net changes in working capital		85,570			66,224			135,325			121,075
Exploration expense		7,983			7,193			25,489			25,280
Lawsuit settlements		91			114			782			1,052
Non-cash compensation adjustment and other		120			272			517			655
Cash flow from operations before changes in working capital – non-GAAP measure	$	311,654		$	299,898		$	1,106,627		$	1,125,954



ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
(Unaudited, in thousands)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Basic:
Weighted average shares outstanding		241,112			241,258			241,868			241,130
Stock held by deferred compensation plan		(812	)		(2,425	)		(1,179	)		(4,144	)
Adjusted basic		240,300			238,833			240,689			236,986

Dilutive:
Weighted average shares outstanding		241,112			241,258			241,868			241,130
Dilutive stock options under treasury method		1,243			477			877			(1,293	)
Adjusted dilutive		242,355			241,735			242,745			239,837

RANGE RESOURCES CORPORATION

RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES
AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO
CALCULATED CASH REALIZED NATURAL GAS, NGLs AND
OIL PRICES WITH AND WITHOUT THIRD-PARTY
TRANSPORTATION, GATHERING, PROCESSING AND
COMPRESSION COSTS, a non-GAAP measure
(Unaudited, In thousands, except per unit data)
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2024			2023			%		2024			2023			%
Natural gas, NGLs and Oil Sales components:
Natural gas sales	$	337,176		$	320,393				$	1,052,442		$	1,234,308
NGLs sales		270,356			238,423					1,020,903			933,791
Oil sales		27,590			44,463					140,505			166,562
Total Natural Gas, NGLs and Oil Sales, as reported	$	635,122		$	603,279		5	%	$	2,213,850		$	2,334,661		-5	%

Derivative Fair Value (Loss) Income, as reported	$	(53,804	)	$	291,059				$	56,726		$	821,154
Cash settlements on derivative financial instruments – (gain) loss:
Natural gas		(64,169	)		(59,846	)				(419,199	)		(256,693	)
NGLs		(433	)		–					(3,743	)		–
Oil		(5,095	)		2,828					(9,450	)		11,179
Contingent consideration – divestiture		–			(8,000	)				–			(8,000	)
Total change in fair value related to commodity derivatives prior to
settlement, a non GAAP measure	$	(123,501	)	$	226,041				$	(375,666	)	$	567,640

Transportation, gathering, processing and compression components:
Natural Gas	$	155,483		$	152,058				$	611,698		$	588,970
NGLs		143,294			130,833					564,269			524,114
Oil		624			170					1,958			857
Total transportation, gathering, processing and compression, as reported	$	299,401		$	283,061				$	1,177,925		$	1,113,941

Natural gas, NGL and Oil sales, including cash-settled derivatives: (c)
Natural gas sales	$	401,345		$	380,239				$	1,471,641		$	1,491,001
NGLs sales		270,789			238,423					1,024,646			933,791
Oil Sales		32,685			41,635					149,955			155,383
Total	$	704,819		$	660,297		7	%	$	2,646,242		$	2,580,175		3	%

Production of natural gas, NGLs and oil during the periods (a):
Natural Gas (mcf)		138,472,888			141,716,744		-2	%		545,415,974			538,084,671		1	%
NGLs (bbls)		10,230,284			9,571,519		7	%		39,622,576			37,939,700		4	%
Oil (bbls)		462,570			656,533		-30	%		2,180,528			2,475,306		-12	%
Gas equivalent (mcfe) (b)		202,630,012			203,085,056		0	%		796,234,598			780,574,707		2	%

Production of natural gas, NGLs and oil – average per day (a):
Natural Gas (mcf)		1,505,140			1,540,399		-2	%		1,490,208			1,474,205		1	%
NGLs (bbls)		111,199			104,038		7	%		108,258			103,944		4	%
Oil (bbls)		5,028			7,136		-30	%		5,958			6,782		-12	%
Gas equivalent (mcfe) (b)		2,202,500			2,207,446		0	%		2,175,504			2,138,561		2	%

Average prices, excluding derivative settlements and before third-party
transportation costs:
Natural Gas (per mcf)	$	2.43		$	2.26		8	%	$	1.93		$	2.29		-16	%
NGLs (per bbl)	$	26.43		$	24.91		6	%	$	25.77		$	24.61		5	%
Oil (per bbl)	$	59.64		$	67.72		-12	%	$	64.44		$	67.29		-4	%
Gas equivalent (per mcfe) (b)	$	3.13		$	2.97		5	%	$	2.78		$	2.99		-7	%

Average prices, including derivative settlements before third-party
transportation costs: (c)
Natural Gas (per mcf)	$	2.90		$	2.68		8	%	$	2.70		$	2.77		-3	%
NGLs (per bbl)	$	26.47		$	24.91		6	%	$	25.86		$	24.61		5	%
Oil (per bbl)	$	70.66		$	63.42		11	%	$	68.77		$	62.77		10	%
Gas equivalent (per mcfe) (b)	$	3.48		$	3.25		7	%	$	3.32		$	3.31		0	%

Average prices, including derivative settlements and after third-party
transportation costs: (d)
Natural Gas (per mcf)	$	1.78		$	1.61		11	%	$	1.58		$	1.68		-6	%
NGLs (per bbl)	$	12.46		$	11.24		11	%	$	11.62		$	10.80		8	%
Oil (per bbl)	$	69.31		$	63.16		10	%	$	67.87		$	62.43		9	%
Gas equivalent (per mcfe) (b)	$	2.00		$	1.86		8	%	$	1.84		$	1.88		-2	%

Transportation, gathering and compression expense per mcfe	$	1.48		$	1.39		6	%	$	1.48		$	1.43		3	%

(a) Represents volumes sold regardless of when produced.
(b) Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which is not necessarily
indicative of the relationship of oil and natural gas prices.
(c) Excluding third-party transportation, gathering, processing and compression costs.
(d) Net of transportation, gathering, processing and compression costs.

RANGE RESOURCES CORPORATION

RECONCILIATION OF INCOME BEFORE INCOME
TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES
EXCLUDING CERTAIN ITEMS, a non-GAAP measure
(Unaudited, In thousands, except per share data)
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2024			2023			%			2024			2023			%

Income from operations before income taxes, as reported		64,024			386,946			-83	%		250,605			1,100,343		-77	%
Adjustment for certain special items:
Gain on the sale of assets		(89	)		(101	)					(311	)		(454	)
ARO settlement loss (gain)		–			(2	)					26			(1	)
Change in fair value related to derivatives prior to settlement		123,501			(226,041	)					375,666			(567,640	)
Abandonment and impairment of unproved properties		(201	)		2,051						8,417			46,359
(Gain) loss on early extinguishment of debt		(3	)		1						(257	)		(438	)
Lawsuit settlements		91			114						782			1,052
Exit costs		9,156			28,279						37,214			99,940
Brokered natural gas and marketing – stock-based compensation		603			491						2,465			2,095
Direct operating – stock-based compensation		468			443						1,922			1,723
Exploration expenses – stock-based compensation		349			315						1,354			1,250
General & administrative – stock-based compensation		10,905			9,389						38,004			35,850
Deferred compensation plan – non-cash adjustment		3,878			(2,953	)					9,593			26,593

Income before income taxes, as adjusted		212,682			198,932			7	%		725,480			746,672		-3	%

Income tax expense (benefit), as adjusted
Current (a)		2,902			(1,453	)					8,165			1,547
Deferred (a)		46,015			47,208						158,696			170,189

Net income, excluding certain items, a non-GAAP measure	$	163,765		$	153,177			7	%	$	558,619		$	574,936		-3	%

Non-GAAP income per common share
Basic	$	0.68		$	0.64			6	%	$	2.32		$	2.43		-5	%
Diluted	$	0.68		$	0.63			8	%	$	2.30		$	2.40		-4	%

Non-GAAP diluted shares outstanding, if dilutive		242,355			241,735						242,745			239,837





(a) Taxes are estimated to be approximately 23% for 2023 and 2024

RANGE RESOURCES CORPORATION



RECONCILIATION OF NET INCOME, EXCLUDING
CERTAIN ITEMS AND ADJUSTED EARNINGS PER
SHARE, non-GAAP measures
(In thousands, except per share data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023

Net income, as reported	$	94,842		$	310,034		$	266,340		$	871,142
Adjustments for certain special items:
Gain on the sale of assets		(89	)		(101	)		(311	)		(454	)
ARO settlement loss (gain)		–			(2	)		26			(1	)
(Gain) loss on early extinguishment of debt		(3	)		1			(257	)		(438	)
Change in fair value related to derivatives prior to settlement		123,501			(226,041	)		375,666			(567,640	)
Abandonment and impairment of unproved properties		(201	)		2,051			8,417			46,359
Lawsuit settlements		91			114			782			1,052
Exit costs		9,156			28,279			37,214			99,940
Stock-based compensation		12,325			10,638			43,745			40,918
Deferred compensation plan		3,878			(2,953	)		9,593			26,593
Tax impact		(79,735	)		31,157			(182,596	)		57,465

Net income, excluding certain items, a non-GAAP measure	$	163,765		$	153,177		$	558,619		$	574,936

Net income per diluted share, as reported	$	0.39		$	1.27		$	1.09		$	3.57
Adjustments for certain special items per diluted share:
Gain on the sale of assets		–			–			–			–
ARO settlement loss (gain)		–			–			–			–
(Gain) loss on early extinguishment of debt		–			–			–			–
Change in fair value related to derivatives prior to settlement		0.51			(0.94	)		1.55			(2.37	)
Abandonment and impairment of unproved properties		–			0.01			0.03			0.19
Lawsuit settlements		–			–			–			–
Exit costs		0.04			0.12			0.15			0.42
Stock-based compensation		0.05			0.04			0.18			0.17
Deferred compensation plan		0.02			(0.01	)		0.04			0.11
Adjustment for rounding differences		–			–			0.01			0.01
Tax impact		(0.33	)		0.13			(0.75	)		0.24
Dilutive share impact (rabbi trust and other)		–			0.01			–			0.06

Net income per diluted share, excluding certain items, a non-GAAP measure	$	0.68		$	0.63		$	2.30		$	2.40

Adjusted earnings per share, a non-GAAP measure:
Basic	$	0.68		$	0.64		$	2.32		$	2.43
Diluted	$	0.68		$	0.63		$	2.30		$	2.40

RANGE RESOURCES CORPORATION

RECONCILIATION OF CASH MARGIN PER MCFE, a non-
GAAP measure
(Unaudited, In thousands, except per unit data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Revenues
Natural gas, NGLs and oil sales, as reported	$	635,122		$	603,279		$	2,213,850		$	2,334,661
Derivative fair value (loss) income, as reported		(53,804	)		291,059			56,726			821,154
Less non-cash fair value loss (gain)		123,501			(226,041	)		375,666			(567,640	)
Brokered natural gas and marketing, as reported		41,535			44,460			133,048			206,552
Other income, as reported		3,564			2,660			13,460			12,505
Less gain on sale of assets		(89	)		(101	)		(311	)		(454	)
Less ARO settlement		–			(2	)		26			(1	)
Cash revenues		749,829			715,314			2,792,465			2,806,777

Expenses
Direct operating, as reported		25,123			22,643			95,321			96,085
Less direct operating stock-based compensation		(468	)		(443	)		(1,922	)		(1,723	)
Transportation, gathering and compression, as reported		299,401			283,061			1,177,925			1,113,941
Taxes other than income, as reported		6,166			4,083			21,625			23,726
Brokered natural gas and marketing, as reported		42,258			44,810			140,545			202,884
Less brokered natural gas and marketing stock-based compensation		(603	)		(491	)		(2,465	)		(2,095	)
General and administrative, as reported		46,531			43,975			172,139			164,740
Less G&A stock-based compensation		(10,905	)		(9,389	)		(38,004	)		(35,850	)
Less lawsuit settlements		(91	)		(114	)		(782	)		(1,052	)
Less bad debt expense		(50	)		–			(50	)		–
Interest expense, as reported		29,268			30,086			118,758			124,004
Less amortization of deferred financing costs		(1,357	)		(1,352	)		(5,417	)		(5,384	)
Cash expenses		435,273			416,869			1,677,673			1,679,276

Cash margin, a non-GAAP measure	$	314,556		$	298,445		$	1,114,792		$	1,127,501

Mmcfe produced during period		202,630			203,085			796,235			780,575

Cash margin per mcfe	$	1.55		$	1.47		$	1.40		$	1.44

RECONCILIATION OF INCOME BEFORE INCOME TAXES
TO CASH MARGIN, a non-GAAP measure
(Unaudited, in thousands, except per unit data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023

Income before income taxes, as reported	$	64,024		$	386,946		$	250,605		$	1,100,343
Adjustments to reconcile income before income taxes
to cash margin:
ARO settlements		–			(2	)		26			(1	)
Derivative fair value loss (income)		53,804			(291,059	)		(56,726	)		(821,154	)
Net cash receipts on derivative settlements		69,697			65,018			432,392			253,514
Exploration expense		7,983			7,193			25,489			25,280
Lawsuit settlements		91			114			782			1,052
Exit costs		9,156			28,279			37,214			99,940
Deferred compensation plan		3,878			(2,953	)		9,593			26,593
Stock-based compensation (direct operating, brokered natural gas and		12,325			10,638			43,745			40,918
marketing and general and administrative)
Bad debt expense		50			–			50			–
Interest – amortization of deferred financing costs		1,357			1,352			5,417			5,384
Depletion, depreciation and amortization		92,484			90,968			358,356			350,165
Gain on sale of assets		(89	)		(101	)		(311	)		(454	)
(Gain) loss on early extinguishment of debt		(3	)		1			(257	)		(438	)
Abandonment and impairment of unproved properties		(201	)		2,051			8,417			46,359
Cash margin, a non-GAAP measure	$	314,556		$	298,445		$	1,114,792		$	1,127,501

The MIL Network –

February 26, 2025

MIL-OSI: EXL Reports 2024 Fourth Quarter and Year-End Results; Issues 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

2024 Fourth Quarter Revenue of $481.4 Million, up 16.3% year-over-year
Q4 Diluted EPS (GAAP) of $0.31, up 28.4% from $0.24 in Q4 of 2023
Q4 Adjusted Diluted EPS (Non-GAAP) ⁽¹⁾of $0.44, up 26.1% from $0.35 in Q4 of 2023

2024 Revenue of $1.84 Billion, up 12.7% year-over-year
2024 Diluted EPS (GAAP) of $1.21, up 10.0% from $1.10 in 2023
2024 Adjusted Diluted EPS (Non-GAAP) ⁽¹⁾of $1.65, up 15.4% from $1.43 in 2023

NEW YORK, Feb. 25, 2025 (GLOBE NEWSWIRE) — ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter and full year ended December 31, 2024.

Rohit Kapoor, chairman and chief executive officer, said, “As we executed our data and AI strategy in 2024, we achieved several key milestones, including launching an enterprise AI platform in partnership with NVIDIA, introducing our insurance-specific large language model (LLM) and expanding our data management capabilities with the acquisition of ITI Data. Our focus on innovating with speed led to industry-leading full-year revenue growth of 12.7% and adjusted EPS growth of 15.4%. As AI adoption continues to increase, EXL is well positioned to capture this opportunity and continue its strong growth momentum.”

Maurizio Nicolelli, chief financial officer, said, “We finished 2024 with robust growth across our business segments, a formidable balance sheet and strong free cash flow. For the full year 2025, we expect revenue to be in the range of $2.025 billion to $2.060 billion, representing a 10% to 12% increase year-over-year on a reported basis and 11% to 13% on constant currency basis. We expect adjusted diluted EPS to be in the range of $1.83 to $1.89, representing a 11% to 14% increase over 2024.”

__________________________________________________

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: Fourth Quarter 2024

Revenue for the quarter ended December 31, 2024 increased to $481.4 million compared to $414.1 million for the fourth quarter of 2023, an increase of 16.3% on a reported basis and constant currency basis. Revenue increased by 2.0% sequentially on a reported basis and 2.4% on a constant currency basis, from the third quarter of 2024.

	Revenue						Gross Margin
	Three months ended						Three months ended
Reportable Segments	December 31, 2024		December 31, 2023		September 30, 2024		December 31, 2024		December 31, 2023		September 30, 2024
	(dollars in millions)
Insurance	$	162.0	$	139.1	$	157.6	36.9	%	36.2	%	36.3	%
Healthcare		31.6		26.0		30.5	31.7	%	36.9	%	33.6	%
Emerging Business		80.1		67.0		80.0	40.7	%	41.0	%	40.2	%
Analytics		207.7		182.0		204.0	39.0	%	35.4	%	38.5	%
Revenues, net	$	481.4	$	414.1	$	472.1	38.1	%	36.7	%	37.8	%

Operating income margin for the quarter ended December 31, 2024 was 14.8%, compared to 13.1% for the fourth quarter of 2023 and 14.7% for the third quarter of 2024. Adjusted operating income margin for the quarter ended December 31, 2024 was 18.8%, compared to 17.8% for the fourth quarter of 2023 and 19.9% for the third quarter of 2024.
Diluted earnings per share for the quarter ended December 31, 2024 was $0.31, compared to $0.24 for the fourth quarter of 2023 and $0.33 for the third quarter of 2024. Adjusted diluted earnings per share for the quarter ended December 31, 2024 was $0.44, compared to $0.35 for the fourth quarter of 2023 and $0.44 for the third quarter of 2024.

Financial Highlights: Full Year 2024

Revenue for the year ended December 31, 2024 increased to $1.84 billion compared to $1.63 billion for the year ended December 31, 2023, an increase of 12.7% on a reported basis and constant currency basis.

	Revenue				Gross Margin
	Year ended				Year ended
Reportable Segments	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
	(dollars in millions)
Insurance	$	614.0	$	529.9	36.4	%	35.5	%
Healthcare		116.4		106.0	33.0	%	34.6	%
Emerging Business		311.7		265.7	41.8	%	43.2	%
Analytics		796.3		729.1	37.5	%	36.8	%
Revenues, net	$	1,838.4	$	1,630.7	37.6	%	37.3	%

Operating income margin for the year ended December 31, 2024 was 14.3%, compared to 14.6% for the year ended December 31, 2023. Adjusted operating income margin for the year ended December 31, 2024 was 19.4%, compared to 19.3% for the year ended December 31, 2023.
Diluted earnings per share for the year ended December 31, 2024 was $1.21, compared to $1.10 for the year ended December 31, 2023. Adjusted diluted earnings per share for the year ended December 31, 2024 was $1.65, compared to $1.43 for the year ended December 31, 2023.

Business Highlights: Fourth Quarter 2024

Won 17 new clients in the fourth quarter of 2024, with 8 clients in digital operations and solutions and 9 in analytics. For the year, we won 69 new clients, with 32 in digital operations and solutions and 37 in analytics.
Launched EXLerate.AI, an agentic AI platform designed to help enterprises reimagine and build AI-native workflows that drive greater efficiency, lower costs, and increased accuracy and scalability across business operations.
Named a Leader in the ISG Provider Lens™ Generative AI Services 2024 report. Analysts cited EXL’s data integration capabilities, domain-specific expertise, and robust transformational framework as key differentiators driving its leadership in this space.
Recognized as a Market Leader in the HFS Research 2024 AADA Quadfecta Services for the Generative Enterprise™ 2024 study. The study evaluated 27 leading analytics, AI, data platforms, and automation service providers on their ability to unlock deep insights from data, automate complex processes, and enhance operational efficiencies. The Market Leader designation is the report’s highest distinction.

2025 Operating Model

To accelerate the execution of our data and AI strategy, capture a greater share of the growing AI market and drive EXL’s long-term growth, the company is changing its operating model. The new model is comprised of Industry Market Units focused on delivering higher value to clients leveraging our full suite of capabilities; and Strategic Growth Units focused on rapidly advancing our capabilities specific to various industries and client needs.

This enhances our ability to deepen client relationships, unlock new buying centers, expand our addressable markets across industries and geographies, accelerate investments in data and AI capabilities and industry-specific solutions, and create more professional development opportunities for our employees. This model enables us to deliver AI-powered integrated solutions more effectively and evolve engagements to maximize value for our clients.

EXL will adopt new financial reporting segments consistent with how management will be reviewing financial information and making operating decisions beginning in the first quarter of 2025. Our data, AI and analytics capabilities are driving all our solutions and business lines. Accordingly, we will now report data and AI revenue alongside our new reporting segments beginning with the first quarter of 2025. This shift will provide a higher quality and more relevant representation of our business performance as we continue executing our data and AI growth strategy. The new reportable segments, aligned to our Industry Market Units, are as follows:

Insurance
Healthcare and Life Sciences
Banking, Capital Markets and Diversified Industries
International Growth Markets

The change in segment presentation will not have any effect on our consolidated statements of income, balance sheets or cash flows. The revised presentation will be reflected in our periodic and annual reports beginning in the first quarter of 2025.

2025 Guidance

Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 87.0, U.K. pound sterling to U.S. dollar exchange rate of 1.25, U.S. dollar to the Philippine peso exchange rate of 58.0 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2025:

Revenue of $2.025 billion to $2.060 billion, representing an increase of 10% 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, February 26, 2025, at 10:00 A.M. ET to discuss the Company’s fourth quarter and year-end 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.

To join the live call, please register here. 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 59,000 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, risks related to the use of AI technology, impact on client demand by the selling cycle of our contracts, fluctuations in our earnings, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, 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 (In thousands, except per share amount and share count)

							(Unaudited)
	Year ended December 31,						Three months ended December 31,
	2024			2023			2024			2023
Revenues, net	$	1,838,372		$	1,630,668		$	481,426		$	414,058
Cost of revenues⁽¹⁾		1,147,359			1,022,902			298,023			262,211
Gross profit⁽¹⁾		691,013			607,766			183,403			151,847
Operating expenses:
General and administrative expenses		225,672			198,294			58,477			53,730
Selling and marketing expenses		146,502			120,227			37,520			31,553
Depreciation and amortization expense		55,219			50,490			16,164			12,298
Total operating expenses		427,393			369,011			112,161			97,581
Income from operations		263,620			238,755			71,242			54,266
Foreign exchange gain, net		891			1,532			218			694
Interest expense		(19,256	)		(13,180	)		(5,111	)		(3,150	)
Other income/(expense), net		16,092			10,834			4,216			4,240
Income before income tax expense and earnings from equity affiliates		261,347			237,941			70,565			56,050
Income tax expense		62,936			53,536			19,850			15,763
Income before earnings from equity affiliates		198,411			184,405			50,715			40,287
Gain/(loss) from equity-method investment		(114	)		153			(43	)		(4	)
Net income	$	198,297		$	184,558		$	50,672		$	40,283
Earnings per share:
Basic	$	1.22		$	1.11		$	0.31		$	0.24
Diluted	$	1.21		$	1.10		$	0.31		$	0.24
Weighted average number of shares used in computing earnings per share:
Basic		162,718,840			166,341,213			161,292,473			165,254,017
Diluted		164,321,656			168,161,371			163,436,793			166,880,836

⁽¹⁾Exclusive of depreciation and amortization expense.


EXLSERVICE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per share amount and share count)

	As of
	December 31, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	153,355		$	136,953
Short-term investments		187,223			153,881
Restricted cash		9,972			4,062
Accounts receivable, net		304,322			308,108
Other current assets		140,317			76,669
Total current assets		795,189			679,673
Property and equipment, net		101,837			100,373
Operating lease right-of-use assets		68,784			64,856
Restricted cash		8,071			4,386
Deferred tax assets, net		104,747			82,927
Goodwill		420,387			405,639
Other intangible assets, net		49,331			50,164
Long-term investments		13,972			4,430
Other assets		56,085			49,524
Total assets	$	1,618,403		$	1,441,972
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,884		$	5,055
Current portion of long-term borrowings		4,886			65,000
Deferred revenue		19,264			12,318
Accrued employee costs		129,994			117,137
Accrued expenses and other current liabilities		113,597			114,113
Current portion of operating lease liabilities		16,491			12,780
Total current liabilities		290,116			326,403
Long-term borrowings, less current portion		283,598			135,000
Operating lease liabilities, less current portion		59,851			58,175
Deferred tax liabilities, net		1,403			1,495
Other non-current liabilities		53,573			31,462
Total liabilities		688,541			552,535
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, 206,510,587 shares issued and 161,801,212 shares outstanding as of December 31, 2024 and 203,410,038 shares issued and 165,277,880 shares outstanding as of December 31, 2023		206			203
Additional paid-in capital		588,583			508,028
Retained earnings		1,281,960			1,083,663
Accumulated other comprehensive loss		(154,722	)		(127,040	)
Total including shares held in treasury		1,716,027			1,464,854
Less: 44,709,375 shares as of December 31, 2024 and 38,132,158 shares as of December 31, 2023, held in treasury, at cost		(786,165	)		(575,417	)
Total stockholders’ equity		929,862			889,437
Total liabilities and stockholders’ equity	$	1,618,403		$	1,441,972

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 restructuring and litigation settlement 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 83.28 during the quarter ended December 31, 2023 to 84.72 during the quarter ended December 31, 2024, representing a depreciation of 1.7% against the U.S. dollar. The average exchange rate of the U.S. dollar against the Philippine peso increased from 55.86 during the quarter ended December 31, 2023 to 58.19 during the quarter ended December 31, 2024, representing a depreciation of 4.2% against the U.S. dollar. The average exchange rate of the U.K. pound sterling against the U.S. dollar increased from 1.25 during the quarter ended December 31, 2023 to 1.28 during the quarter ended December 31, 2024, representing an appreciation of 1.9% against the U.S. dollar. The average exchange rate of the U.S. dollar against the South African rand decreased from 18.63 during the quarter ended December 31, 2023 to 18.18 during the quarter ended December 31, 2024, representing an appreciation of 2.4% against the U.S. dollar.

The following table shows the reconciliation of these non-GAAP financial measures for the year ended December 31, 2024 and 2023, the three months ended December 31, 2024 and 2023 and the three months ended September 30, 2024:

Reconciliation of Adjusted Operating Income and Adjusted EBITDA (Amounts in thousands)

	Year ended						Three months ended
	December 31,						December 31,						September 30,
	2024			2023			2024			2023			2024
Net income (GAAP)	$	198,297		$	184,558		$	50,672		$	40,283		$	53,037
add: Income tax expense		62,936			53,536			19,850			15,763			15,460
add/(subtract): Foreign exchange gain, net, interest expense, gain/(loss) from equity-method investment and other income/(loss), net		2,387			661			720			(1,780	)		908
Income from operations (GAAP)	$	263,620		$	238,755		$	71,242		$	54,266		$	69,405
add: Stock-based compensation expense		72,658			58,437			15,479			15,452			21,232
add: Amortization of acquisition-related intangibles		13,630			14,678			4,024			3,168			3,449
add: Restructuring and litigation settlement costs (a)		6,174			613			—			613			—
add/(subtract): Allowance/(reversal) for expected credit losses (b)		—			1,436			—			(264	)		—
add: Other expenses (c)		—			771			—			282			—
Adjusted operating income (Non-GAAP)	$	356,082		$	314,690		$	90,745		$	73,517		$	94,086
Adjusted operating income margin as a % of Revenue (Non-GAAP)		19.4	%		19.3	%		18.8	%		17.8	%		19.9	%
add: Depreciation on long-lived assets		41,589			34,434			12,140			9,130			10,350
Adjusted EBITDA (Non-GAAP)	$	397,671		$	349,124		$	102,885		$	82,647		$	104,436
Adjusted EBITDA margin as a % of revenue (Non-GAAP)		21.6	%		21.4	%		21.4	%		20.0	%		22.1	%

(a) To exclude effects of employee severance costs and outplacement support costs of $4,762 and $nil and litigation settlement costs and associated legal fees of $1,412 and $613 for the year ended December 31, 2024 and 2023, respectively. To exclude effects of litigation settlement costs and associated legal fees of $nil and $613 for the three months ended December 31, 2024 and 2023, respectively.

(b) To exclude the effects of material allowance/(reversal) for expected credit losses on accounts receivables related to a customer bankruptcy event.

(c) To exclude effects of lease termination of $nil and $489 and other items, individually insignificant of $nil and $282 for the year ended December 31, 2024 and 2023, respectively. To exclude effects of other items, individually insignificant of $nil and $282 for the three months ended December 31, 2024 and 2023, respectively.


Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share (Amounts in thousands, except per share data)

	Year ended						Three months ended
	December 31,						December 31,						September 30,
	2024			2023			2024			2023			2024
Net income (GAAP)	$	198,297		$	184,558		$	50,672		$	40,283		$	53,037
add: Stock-based compensation expense		72,658			58,437			15,479			15,452			21,232
add: Amortization of acquisition-related intangibles		13,630			14,678			4,024			3,168			3,449
add: Restructuring and litigation settlement costs (a)		6,174			613			—			613			—
add/(subtract): Changes in fair value of contingent consideration		(589	)		1,900			—			(600	)		—
add: Other tax expenses (b)		3,817			223			3,817			223			—
add/(subtract): Allowance/(reversal) for expected credit losses (c)		—			1,436			—			(264	)		—
add: Other expenses (d)		—			489			—			—			—
subtract: Tax impact on stock-based compensation expense (e)		(17,576	)		(17,333	)		(1,769	)		(374	)		(5,830	)
subtract: Tax impact on amortization of acquisition-related intangibles		(3,318	)		(3,622	)		(921	)		(792	)		(866	)
add/(subtract): Tax impact on restructuring and litigation settlement costs		(1,540	)		—			48			—			—
add/(subtract): Tax impact on changes in fair value of contingent consideration		146			152			(5	)		152			—
add/(subtract): Tax impact on allowance/(reversal) for expected credit losses		—			(364	)		—			65			—
subtract: Tax impact on other expenses		—			(280	)		—			(157	)		—
Adjusted net income (Non-GAAP)	$	271,699		$	240,887		$	71,345		$	57,769		$	71,022
Adjusted diluted earnings per share (Non-GAAP)	$	1.65		$	1.43		$	0.44		$	0.35		$	0.44

(a) To exclude effects of employee severance costs and outplacement support costs of $4,762 and $nil and litigation settlement costs and associated legal fees of $1,412 and $613 for the year ended December 31, 2024 and 2023, respectively. To exclude effects of litigation settlement costs and associated legal fees of $nil and $613 for the three months ended December 31, 2024 and 2023, respectively.

(b) To exclude other tax expenses/(benefits) related to certain deferred tax assets and liabilities.

(c) To exclude the effects of material allowance/(reversal) for expected credit losses on accounts receivables related to a customer bankruptcy event.

(d) To exclude effects of lease termination of $nil and $489 for the year ended December 31, 2024 and 2023, respectively.

(e) Tax impact includes $9,714 and $15,055 for the year ended December 31, 2024 and 2023 respectively, $500 and $1,883 for the three months ended December 31, 2024 and 2023 respectively, and $1,673 for the three months ended September 30, 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

The MIL Network –

February 26, 2025

MIL-OSI: MidCap Financial Investment Corporation Reports Financial Results for the Quarter and Fiscal Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

Results for the Quarter and Fiscal Year Ended December 31, 2024 and Other Recent Highlights:

Net investment income per share for the quarter was $0.40
Net asset value per share as of the end of the quarter was $14.98, compared to $15.10 as of September 30, 2024, a decrease of 0.8%
New investment commitments made during the quarter totaled $255 million⁽¹⁾
Gross fundings, excluding revolver fundings⁽²⁾, totaled $248 million for the quarter
Net repayments, including revolvers⁽²⁾, totaled $6 million for the quarter
Net leverage⁽³⁾ was 1.16x as of December 31, 2024
On February 21, 2025, the Board of Directors (the “Board”) declared a dividend of $0.38 per share payable on March 27, 2025 to stockholders of record as of March 11, 2025⁽⁴⁾
On February 24, 2025, the Company closed its second Collateralized Loan Obligation (“CLO”) transaction, MFIC Bethesda CLO 2 LLC (the “Bethesda CLO 2 Issuer”), a $529.6 million CLO secured by middle market loans, adding $399.0 million of secured debt capital with a weighted average price of SOFR + 161 basis points⁽⁵⁾

NEW YORK, Feb. 25, 2025 (GLOBE NEWSWIRE) — MidCap Financial Investment Corporation (NASDAQ: MFIC) or the “Company,” today announced financial results for its quarter and fiscal year ended December 31, 2024. The Company’s net investment income was $0.40 per share for the quarter ended December 31, 2024, compared to $0.44 per share for the quarter ended September 30, 2024. The Company’s net asset value (“NAV”) was $14.98 per share as of December 31, 2024, compared to $15.10 as of September 30, 2024.

On February 21, 2025, the Board declared a dividend of $0.38 per share payable on March 27, 2025 to stockholders of record as of March 11, 2025.

Mr. Tanner Powell, the Company’s Chief Executive Officer, stated, “In the December quarter, we generated solid net investment income despite a modest amount of fee income and the impact of lower base rates. The vast majority of our portfolio is performing well and we are observing stability in certain credit metrics.” Mr. Powell continued, “MFIC is fortunate to have access to the significant volume of loans originated by MidCap Financial, a leading middle market lender managed by an affiliate of Apollo, which we believe provides MFIC with a significant deal sourcing advantage. While our market remains competitive, we observed a modest increase in spreads on new commitments compared to the previous quarter, at what we believe to be attractive leverage entry points. We took advantage of strength in the liquid credit markets to continue selling certain assets acquired from our recently completed mergers with Apollo Senior Floating Rate Fund, Inc. and Apollo Tactical Income Fund, Inc. and prudently deployed proceeds from these sales, along with the investment capacity generated from the mergers, into first lien floating rate middle market loans originated by MidCap Financial. We have a clear and straightforward plan to gradually increase leverage over the coming quarters and we believe MFIC’s future results are well-positioned to benefit as we re-lever back to our target level.”

Mr. Gregory W. Hunt, the Company’s Chief Financial Officer, said, “We are pleased to announce MFIC closed its second on balance sheet CLO transaction earlier this week. This CLO transaction adds attractive term-based financing at what we believe to be among the tightest levels achieved for a middle market CLO, reflecting the high quality of the underlying loans. MFIC significantly benefited from MidCap Financial and Apollo Global’s expertise in CLO management and structuring.”

___________________

(1)	Commitments made for the direct origination portfolio.
(2)	During the quarter ended December 31, 2024, direct origination revolver fundings totaled $55 million, direct origination revolver repayments totaled $56 million.
(3)	The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
(4)	There can be no assurances that the Board will continue to declare a base dividend of $0.38 per share.
(5)	The Company retained all Class D Notes and all Subordinated Notes in the CLO transaction.

FINANCIAL HIGHLIGHTS

($ in billions, except per share data)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Total assets	$	3.19	$	3.22	$	2.55	$	2.45	$	2.50
Investment portfolio (fair value)	$	3.01	$	3.03	$	2.44	$	2.35	$	2.33
Debt outstanding	$	1.75	$	1.77	$	1.51	$	1.41	$	1.46
Net assets	$	1.40	$	1.42	$	1.00	$	1.01	$	1.01
Net asset value per share	$	14.98	$	15.10	$	15.38	$	15.42	$	15.41

Debt-to-equity ratio		1.25 x		1.25 x		1.51 x		1.40 x		1.45 x
Net leverage ratio (1)		1.16 x		1.16 x		1.45 x		1.35 x		1.34 x

____________________
(1) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.


PORTFOLIO AND INVESTMENT ACTIVITY

	Three Months Ended December 31,						Year Ended December 31,
(in millions)*	2024			2023			2024			2023
Investments made in portfolio companies	$	303.5		$	134.1		$	1,613.6		$	417.1
Investments sold		(82.9	)		—			(271.5	)		—
Net activity before repaid investments		220.6			134.1			1,342.1			417.1
Investments repaid		(226.9	)		(180.7	)		(657.5	)		(504.3	)
Net investment activity	$	(6.4	)	$	(46.5	)	$	684.6		$	(87.2	)

Portfolio companies, at beginning of period		250			149			152			135
Number of investments in new portfolio companies		11			10			167			32
Number of exited companies		(28	)		(7	)		(86	)		(15	)
Portfolio companies at end of period		233			152			233			152

Number of investments in existing portfolio companies		83			48			130			84

____________________
^* Totals may not foot due to rounding.


OPERATING RESULTS

	Three Months Ended December 31,					Year Ended December 31,
(in millions)*	2024			2023		2024			2023
Net investment income	$	37.1		$	29.8	$	133.3		$	116.0
Net realized and change in unrealized gains (losses)		(13.0	)		3.5		(34.5	)		2.8
Net increase in net assets resulting from operations	$	24.1		$	33.3	$	98.8		$	118.8

*(per share) (1)**
Net investment income on per average share basis	$	0.40		$	0.46	$	1.71		$	1.78
Net realized and change in unrealized gain (loss) per share		(0.14	)		0.05		(0.44	)		0.04
Earnings per share — basic	$	0.26		$	0.51	$	1.27		$	1.82

____________________
* Totals may not foot due to rounding.

(1) Based on the weighted average number of shares outstanding for the period presented.

SHARE REPURCHASE PROGRAM*

During the three months ended December 31, 2024, the Company did not repurchase any shares.

Since the inception of the share repurchase program and through February 24, 2025, the Company repurchased 15,593,120 shares at a weighted average price per share of $15.91, inclusive of commissions, for a total cost of $248.1 million, leaving a maximum of $26.9 million available for future purchases under the current Board authorization of $275 million.

* Share figures have been adjusted for the 1-for-3 reverse stock split which was completed after market close on November 30, 2018.

LIQUIDITY

As of December 31, 2024, the Company’s outstanding debt obligations, excluding deferred financing cost and debt discount of $5.5 million, totaled $1.757 billion which was comprised of $350 million of Senior Unsecured Notes (the “2025 Notes”) which will mature on March 3, 2025, $125 million of Unsecured Notes (the “2026 Notes”) which will mature on July 16, 2026, $80 million of Unsecured Notes (the “2028 Notes”) which will mature on December 15, 2028, $232 million outstanding Class A-1 Notes in MFIC Bethesda CLO 1 LLC and $970.1 million outstanding under the multi-currency revolving credit facility (the “Facility”). As of December 31, 2024, $7.8 million in standby letters of credit were issued through the Facility. The available remaining commitment under the Facility was $682.0 million as of December 31, 2024, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio.

On February 24, 2025, the Company completed a $529.6 million CLO transaction, a form of secured financing incurred by Bethesda CLO 2 Issuer, an indirect wholly owned, consolidated subsidiary of the Company. The notes offered by Bethesda CLO 2 Issuer in connection with the CLO transaction consist of $304.5 million of AAA(sf) Class A-1 Senior Secured Floating Rate Notes due 2037, which bear interest at the three-month SOFR plus 1.48%, $21.0 million of AAA(sf) Class A-2 Senior Secured Floating Rate Notes due 2037, which bear interest at three-month SOFR plus 1.70%, $31.5 million of AA(sf) Class B Senior Secured Floating Rate Notes due 2037, which bear interest at three-month SOFR plus 1.85%, $42 million of A(sf) Class C Senior Secured Floating Rate Notes due 2037, which bear interest at three-month SOFR plus 2.30%, $31.5 million of BBB-(sf) Class D Senior Secured Floating Rate Notes due 2037, which bear interest at three-month SOFR plus 3.75% and $99.1 million of Subordinated notes due 2125, which do not bear interest. The notes offered in the CLO transaction are structured as follows:

Class	Par Amount ($ in millions)		% of Capital Structure		Coupon	Expected Rating (S&P/Fitch)	Price
Class A-1 Notes	$	304.50	57.5	%	3M SOFR + 1.48%	AAA/AAA	100.00	%
Class A-2 Notes		21.00	4.0	%	3M SOFR + 1.70%	AAA/NR	100.00	%
Class B Notes		31.50	5.9	%	3M SOFR + 1.85%	AA/NR	100.00	%
Class C Notes		42.00	7.9	%	3M SOFR + 2.30%	A/NR	100.00	%
Class D Notes		31.50	5.9	%	3M SOFR + 3.75%	BBB-/NR	100.00	%
Subordinated Notes		99.10	18.7	%	N/A	NR	100.00	%
Total	$	529.60

The CLO transaction is backed by a diversified portfolio of middle-market commercial loans, which Bethesda CLO 2 Issuer purchased from the Company pursuant to a loan sale agreement entered into on February 24, 2025, using the proceeds of the CLO transaction. The Company retained all Class D Notes and all Subordinated Notes and the proceeds from the CLO transaction were used to repay borrowings under the Company’s Facility. The Company serves as collateral manager to Bethesda CLO 2 Issuer, Citigroup Global Markets Inc. acted as initial purchaser and Apollo Global Securities, LLC acted as placement agent.2C

CONFERENCE CALL / WEBCAST AT 8:30 AM EST ON FEBRUARY 26, 2025

The Company will also host a conference call on Wednesday, February 26, 2025, at 8:30 a.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (800) 225-9448 approximately 5-10 minutes prior to the call; international callers should dial (203) 518-9708. Participants should reference either MidCap Financial Investment Corporation Earnings or Conference ID: MFIC0226 when prompted. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be accessed through the Events tab in the Shareholders section of our website at www.midcapfinancialic.com. Following the call, you may access a replay of the event either telephonically or via audio webcast. The telephonic replay will be available approximately two hours after the live call and through March 19, 2025, by dialing (800) 839-5123; international callers should dial (402) 220-2689. A replay of the audio webcast will also be available later that same day. To access the audio webcast please visit the Events Calendar in the Shareholders section of our website at www.midcapfinancialic.com.

SUPPLEMENTAL INFORMATION

The Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available in the Shareholders section of the Company’s website under Presentations at www.midcapfinancialic.com.

Our portfolio composition and weighted average yields as of December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023 were as follows:

	December 31, 2024			September 30, 2024	June 30, 2024		March 31, 2024		December 31, 2023
Portfolio composition, at fair value:
First lien secured debt		92%		91%		90%		90%		89%
Second lien secured debt		1%		1%		1%		1%		1%
Total secured debt		93%		92%		91%		91%		90%
Unsecured debt		0%		0%		—%		—%		—%
Structured products and other		1%		2%		1%		1%		2%
Preferred equity		1%		1%		1%		1%		1%
Common equity/interests and warrants		5%		5%		7%		7%		7%
Weighted average yields, at amortized cost (1):
First lien secured debt (2)		10.8%		11.1%		11.9%		12.0%		12.1%
Second lien secured debt (2)		14.4%		14.0%		14.1%		14.1%		13.7%
Total secured debt (2)		10.8%		11.1%		11.9%		12.0%		12.1%
Unsecured debt portfolio (2)		9.5%		9.5%		—%		—%		—%
Total debt portfolio (2)		10.8%		11.1%		11.9%		12.0%		12.1%
Total portfolio (3)		9.5%		9.6%		9.9%		10.0%		10.1%
Interest rate type, at fair value (4):
Fixed rate amount	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion
Floating rate amount	$	2.7 billion	$	2.7 billion	$	2.1 billion	$	2.0 billion	$	2.0 billion
Fixed rate, as percentage of total		1%		1%		0%		0%		0%
Floating rate, as percentage of total		99%		99%		100%		100%		100%
Interest rate type, at amortized cost (4):
Fixed rate amount	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion	$	0.0 billion
Floating rate amount	$	2.7 billion	$	2.7 billion	$	2.1 billion	$	2.0 billion	$	2.0 billion
Fixed rate, as percentage of total		1%		1%		0%		0%		0%
Floating rate, as percentage of total		99%		99%		100%		100%		100%

(1)	An investor’s yield may be lower than the portfolio yield due to sales loads and other expenses.
(2)	Exclusive of investments on non-accrual status.
(3)	Inclusive of all income generating investments, non-income generating investments and investments on non-accrual status.
(4)	The interest rate type information is calculated using the Company’s corporate debt portfolio and excludes aviation and investments on non-accrual status.


MIDCAP FINANCIAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share and per share data)

	December 31, 2024			December 31, 2023

Assets
Investments at fair value:
Non-controlled/non-affiliated investments (cost — $2,700,957 and $2,012,273, respectively)	$	2,605,329		$	1,936,327
Non-controlled/affiliated investments (cost — $142,686 and $130,648, respectively)		84,334			77,528
Controlled investments (cost — $333,754 and $395,221, respectively)		324,753			320,344
Cash and cash equivalents		74,357			93,575
Foreign currencies (cost — $1,487 and $28,563, respectively)		1,429			28,553
Receivable for investments sold		57,195			2,796
Interest receivable		19,289			21,441
Dividends receivable		709			1,327
Deferred financing costs		23,555			19,435
Prepaid expenses and other assets		—			5
Total Assets	$	3,190,950		$	2,501,331

Liabilities
Debt	$	1,751,621		$	1,462,267
Payable for investments purchased		4,190			—
Management fees payable		6,247			4,397
Performance-based incentive fees payable		5,336			6,332
Interest payable		12,813			14,494
Accrued administrative services expense		60			1,657
Other liabilities and accrued expenses		6,037			6,874
Total Liabilities	$	1,786,304		$	1,496,021
Commitments and contingencies (Note 9)
Net Assets	$	1,404,646		$	1,005,310

Net Assets
Common stock, $0.001 par value (130,000,000 shares authorized; 93,780,278 and 65,253,275 shares issued and outstanding, respectively)	$	94		$	65
Capital in excess of par value		2,658,090			2,103,718
Accumulated under-distributed (over-distributed) earnings		(1,253,538	)		(1,098,473	)
Net Assets	$	1,404,646		$	1,005,310

Net Asset Value Per Share	$	14.98		$	15.41


MIDCAP FINANCIAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)

	Year Ended December 31,						Nine Months Ended December 31,
	2024			2023			2022
Investment Income
Non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind (“PIK”) interest income)	$	265,157		$	249,102		$	143,564
Dividend income		40			409			61
PIK interest income		12,011			2,012			1,156
Other income		4,147			3,727			2,234
Non-controlled/affiliated investments:
Interest income (excluding PIK interest income)		2,685			1,126			363
Dividend income		726			1,010			718
PIK interest income		140			125			58
Controlled investments:
Interest income (excluding PIK interest income)		16,781			17,892			25,530
PIK interest income		—			869			1,448
Other income		95			250			477
Total Investment Income	$	301,782		$	276,522		$	175,609
Expenses
Management fees	$	19,450		$	17,369		$	26,621
Performance-based incentive fees		21,548			24,565			5,691
Interest and other debt expenses		115,961			104,198			59,363
Administrative services expense		4,120			5,840			4,188
Other general and administrative expenses		8,176			10,131			6,551
Total expenses		169,255			162,103			102,414
Performance-based incentive fee offset		—			(274	)		(178	)
Expense reimbursements		(769	)		(1,306	)		(770	)
Net Expenses	$	168,486		$	160,523		$	101,466
Net Investment Income	$	133,296		$	115,999		$	74,143
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses):
Non-controlled/non-affiliated investments	$	(4,273	)	$	131		$	1,977
Non-controlled/affiliated investments		(11,668	)		—			(2,224	)
Controlled investments		(60,487	)		—			(69,265	)
Foreign currency transactions		(592	)		69			273
Net realized gains (losses)		(77,020	)		200			(69,239	)
Net change in unrealized gains (losses):
Non-controlled/non-affiliated investments		(19,626	)		(1,326	)		(35,113	)
Non-controlled/affiliated investments		(5,232	)		3,799			(5,008	)
Controlled investments		65,876			2,636			53,726
Foreign currency translations		1,525			(2,548	)		4,431
Net change in unrealized gains (losses)		42,543			2,561			18,036
Net Realized and Change in Unrealized Gains (Losses)	$	(34,477	)	$	2,761		$	(51,203	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	98,819		$	118,760		$	22,940
Earnings (Loss) Per Share — Basic		1.27			1.82			0.36

Important Information

Investors are advised to carefully consider the investment objective, risks, charges and expenses of the Company before investing. The prospectus dated April 12, 2023, which has been filed with the Securities and Exchange Commission (“SEC”), contains this and other information about the Company and should be read carefully before investing. An effective shelf registration statement relating to certain securities of the Company is on file with the SEC. Any offering may be made only by means of a prospectus and any accompanying prospectus supplement. Before you invest, you should read the base prospectus in that registration statement, the prospectus and any documents incorporated by reference therein, which the issuer has filed with the SEC, for more complete information about the Company and an offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov.

The information in the prospectus and in this announcement is not complete and may be changed. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

Past performance is not indicative of, or a guarantee of, future performance. The performance and certain other portfolio information quoted herein represents information as of dates noted herein. Nothing herein shall be relied upon as a representation as to the future performance or portfolio holdings of the Company. Investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than their original cost. The Company’s performance is subject to change since the end of the period noted in this report and may be lower or higher than the performance data shown herein.

About MidCap Financial Investment Corporation

MidCap Financial Investment Corporation (NASDAQ: MFIC) is a closed-end, externally managed, diversified management investment company that has elected to be treated as a business development company (“BDC”) under the 1940 Act. For tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company is externally managed by the Investment Adviser, an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries (“Apollo”), a high-growth global alternative asset manager. The Company’s investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. The Company primarily invests in directly originated and privately negotiated first lien senior secured loans to privately held U.S. middle-market companies, which the Company generally defines as companies with less than $75 million in EBITDA, as may be adjusted for market disruptions, mergers and acquisitions-related charges and synergies, and other items. To a lesser extent, the Company may invest in other types of securities including, first lien unitranche, second lien senior secured, unsecured, subordinated, and mezzanine loans, and equities in both private and public middle market companies. For more information, please visit www.midcapfinancialic.com.

Forward-Looking Statements

Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: future operating results of MFIC and distribution projections; business prospects of MFIC, and the prospects of its portfolio companies, if applicable; and the impact of the investments that MFIC expects to make. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with: future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); changes in general economic conditions, including the impact of supply chain disruptions, or changes in financial markets, and the risk of recession; changes in the interest rate environment and levels of general interest rates and the impact of inflation; the return on equity; the yield on investments; the ability to borrow to finance assets; new strategic initiatives; the ability to reposition the investment portfolio; the market outlook; future investment activity; and risks associated with changes in business conditions and the general economy. MFIC has based the forward-looking statements included in this press release on information available to it on the date hereof, and assumes no obligation to update any such forward-looking statements. Although MFIC undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that MFIC in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

Contact

Elizabeth Besen
Investor Relations Manager
MidCap Financial Investment Corporation
212.822.0625
ebesen@apollo.com

The MIL Network –

February 26, 2025

MIL-OSI: Fidus Investment Corporation Schedules Fourth Quarter 2024 Earnings Release and Conference Call

Source: GlobeNewswire (MIL-OSI)

EVANSTON, Ill., Feb. 25, 2025 (GLOBE NEWSWIRE) — Fidus Investment Corporation (NASDAQ: FDUS) (“Fidus” or the “Company”) today announced that it will report its fourth quarter 2024 financial results on Thursday, March 6, 2025 after the close of the financial markets.

Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, March 7, 2025. To participate in the conference call, please dial (844) 808-7136 approximately 10 minutes prior to the call. International callers should dial (412) 317-0534. Please ask to be joined into the Fidus Investment Corporation call.

A live webcast of the conference call will be available at https://investor.fdus.com/news-events/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software.

A webcast replay of the conference call will be available two hours after the call on the investor relations section of the Company’s website.

ABOUT FIDUS INVESTMENT CORPORATION

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

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

FORWARD-LOOKING STATEMENTS

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

The MIL Network –

February 26, 2025

MIL-OSI: Skyward Specialty Insurance Group Reports Fourth Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

HOUSTON, Feb. 25, 2025 (GLOBE NEWSWIRE) — Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today reported fourth quarter 2024 net income of $14.4 million, or $0.35 per diluted share, compared to $29.3 million, or $0.74 per diluted share, for the same 2023 period. Net income for the year ended 2024 was $118.8 million, or $2.87 per diluted share, compared to $86.0 million, or $2.24 per diluted share, for the same 2023 period.

Adjusted operating income⁽¹⁾ for the fourth quarter of 2024 was $33.2 million, or $0.80 per diluted share, compared to $24.3 million, or $0.61 per diluted share, for the same 2023 period. Adjusted operating income⁽¹⁾ for the year ended 2024 was $126.7 million, or $3.06 per diluted share, compared to $80.8 million, or $2.11 per diluted share, for the same 2023 period.

Highlights for the fourth quarter included:

Gross written premiums of $388.4 million, an increase of $66.8 million, or 20.8%, when compared to 2023;
Adjusted combined ratio⁽¹⁾ of 91.6%, including catastrophe losses of 2.2 points;
Return on equity of 16.3% for the year ended 2024 compared to 15.9% for the same 2023 period;
Adjusted return on equity⁽¹⁾ of 17.4% for the year ended 2024 compared to 14.9% for the same 2023 period; and,
Book value per share of $19.79, an increase of 18% compared to December 31, 2023.

^{(1) See “Reconciliation of Non-GAAP Financial Measures”}

Skyward Specialty Chairman and CEO Andrew Robinson commented, “We wrapped up another remarkable year for Skyward Specialty, delivering both outstanding underwriting results while growing gross written premiums at over 20% for the quarter and 19% for the full year, with six out of eight divisions growing double-digits over the prior year. Our 16.3% return on equity for the year was again an excellent outcome. Throughout 2024 we continued to thoughtfully diversify our product portfolio, strategically launching new units including Media Liability, Life Sciences, Mortgage and Credit, and Renewable Energy. Our focus and disciplined execution of our “Rule Our Niche” strategy, and the extraordinary efforts of my 600 plus colleagues made 2024 another impressive year for our Company, and we are confident that we have built the foundation that will propel us in 2025 and beyond.”

Results of Operations

Underwriting Results

Premiums
($ in thousands)	Three months ended December 31,								Twelve months ended December 31,
unaudited	2024			2023			% Change		2024			2023			% Change
Gross written premiums	$	388,355		$	321,605		20.8	%	$	1,743,232		$	1,459,829		19.4	%
Ceded written premiums	$	(117,328	)	$	(107,488	)	9.2	%	$	(619,654	)	$	(549,138	)	12.8	%
Net retention		69.8	%		66.6	%	NM⁽¹⁾			64.5	%		62.4	%	NM⁽¹⁾
Net written premiums	$	271,027		$	214,117		26.6	%	$	1,123,578		$	910,691		23.4	%
Net earned premiums	$	293,240		$	224,932		30.4	%	$	1,056,722		$	829,143		27.4	%
⁽¹⁾Not meaningful

The increase in gross written premiums for the fourth quarter and year ended 2024, when compared to the same 2023 periods, was driven by double-digit premium growth primarily from our surety, programs, captives, global property & agriculture and transactional E&S underwriting divisions.

Combined Ratio	Three months ended December 31,				Twelve months ended December 31,
(unaudited)	2024		2023		2024		2023
Non-cat loss and LAE	60.5	%	60.9	%	60.6	%	60.9	%
Cat loss and LAE⁽¹⁾	2.2	%	0.4	%	1.7	%	1.4	%
Prior accident year development – LPT⁽²⁾	4.2	%	(0.2	)%	1.1	%	(0.2	)%
Loss Ratio	66.9	%	61.1	%	63.4	%	62.1	%
Net policy acquisition costs	15.3	%	13.4	%	14.2	%	13.0	%
Other operating and general expenses	13.9	%	16.3	%	15.3	%	16.3	%
Commission and fee income	(0.3	)%	(0.1	)%	(0.6	)%	(0.7	)%
Expense ratio	28.9	%	29.6	%	28.9	%	28.6	%
Combined ratio	95.8	%	90.7	%	92.3	%	90.7	%
Ex-Cat Combined Ratio⁽³⁾	93.6	%	90.3	%	90.6	%	89.3	%

Adjusted Underwriting Ratios
Adjusted loss ratio⁽²⁾	62.7	%	61.3	%	62.3	%	62.3	%
Expense ratio	28.9	%	29.6	%	28.9	%	28.6	%
Adjusted combined ratio⁽²⁾	91.6	%	90.9	%	91.2	%	90.9	%
⁽¹⁾Current accident year
⁽²⁾See “Reconciliation of Non-GAAP Financial Measures”
⁽³⁾Defined as the combined ratio excluding cat loss and LAE⁽¹⁾

The loss ratios for the fourth quarter and year ended 2024 increased 5.8 points and 1.3 points, respectively, when compared to the same 2023 periods, primarily due to the net impact of prior accident year development related to the LPT. The fourth quarter and year ended 2024 were also impacted by higher catastrophe losses, primarily from Hurricane Milton in the fourth quarter of 2024 and Hurricanes Helene and Beryl in the third quarter of 2024. The improvement in the non-cat loss and LAE ratios for the fourth quarter and year ended 2024, when compared to the same 2023 periods, was driven by the business mix shift.

The expense ratio for the fourth quarter improved when compared to the same 2023 period primarily due to earnings leverage partially offset by the business mix shift. The expense ratio for the year ended 2024 increased slightly when compared to the same 2023 period, driven by the business mix shift.

The expense ratios for all periods presented exclude the impact of IPO related stock compensation and secondary offering expenses, which are reported in other expenses in our condensed consolidated statements of operations and comprehensive income.

Investment Results

Net Investment Income
$ in thousands	Three months ended December 31,						Twelve months ended December 31,
(unaudited)	2024			2023			2024			2023
Short-term investments & cash and cash equivalents	$	3,998		$	3,670		$	17,643		$	11,677
Fixed income		15,909			11,680			57,631			36,547
Equities		771			880			2,745			2,212
Alternative & strategic investments		52			(2,226	)		2,667			(10,114	)
Net investment income	$	20,730		$	14,004		$	80,686		$	40,322
Net unrealized (losses) gains on securities still held	$	(7,688	)	$	8,736		$	7,921		$	11,130
Net realized losses		(2,721	)		(992	)		(1,665	)		(58	)
Net investment (losses) gains	$	(10,409	)	$	7,744		$	6,256		$	11,072

Beginning January 1, 2024 we simplified the investment portfolio classifications to align with our strategy and the underlying risk characteristics of the portfolio. The prior period has been reclassified to conform to the current period presentation.

Net investment income for the fourth quarter and year ended 2024 increased $6.7 million and $40.4 million, respectively when compared to the same 2023 periods, primarily driven by (i) increased income from our fixed income portfolio and short-term investments due to higher yields and larger asset bases, and (ii) income from alternative and strategic investments compared to losses for the same 2023 periods, which were impacted by the decline in the fair value of limited partnership investments.

Stockholders’ Equity

Stockholders’ equity was $794.0 million at December 31, 2024 which represented a decrease of 0.4% when compared to stockholders’ equity of $797.5 million at September 30, 2024. The decrease in stockholders’ equity was primarily due to a decline in the market value of our investment portfolio partially offset by net income.

Conference Call

At 9:30 a.m. eastern time tomorrow, February 26, 2025, Skyward Specialty management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at investors.skywardinsurance.com under Events & Presentations. Additionally, investors can access the earnings call via conference call by registering via the conference link. Users will receive dial-in information and a unique PIN to join the call upon registering.

Non-GAAP Financial Measures

This release contains certain financial measures and ratios that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). We refer to these measures as “non-GAAP financial measures.” We use these non-GAAP financial measures when planning, monitoring, and evaluating our performance.

We have chosen to exclude the net impact of the Loss Portfolio Transfer (“LPT”), all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening in certain non-GAAP metrics, where noted, as the business subject to the LPT is not representative of our continuing business strategy. The business subject to the LPT is primarily related to policy years 2017 and prior, was generated and managed under prior leadership, and has either been exited or substantially repositioned during the reevaluation of our portfolio. The LPT was commuted effective January 31, 2025. We consider these non-GAAP financial measures to be useful metrics for our management and investors to facilitate operating performance comparisons from period to period. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered supplemental in nature and is not meant to be a substitute for revenue or net income, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as comparative measures. For more information regarding these non-GAAP financial measures and a reconciliation of such measures to comparable GAAP financial measures, see the section entitled “Reconciliation of Non-GAAP Financial Measures.”

About Skyward Specialty Insurance Group, Inc.

Skyward Specialty is a rapidly growing and innovative specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. The Company operates through eight underwriting divisions – Accident & Health, Captives, Global Property & Agriculture, Industry Solutions, Professional Lines, Programs, Surety and Transactional E&S. SKWD stock is traded on the Nasdaq Global Select Market, which represents the top fourth of all Nasdaq listed companies.

Skyward Specialty’s subsidiary insurance companies consist of Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A (Excellent) with stable outlook by A.M. Best Company. Additional information about Skyward Specialty can be found on our website at www.skywardinsurance.com.

Forward-Looking Statements

Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Skyward Specialty’s Form 10-K, and include (but are not limited to) legislative changes at both the state and federal level, state and federal regulatory rule making promulgations and adjudications, class action litigation involving the insurance industry and judicial decisions affecting claims, policy coverages and the general costs of doing business, the potential loss of key members of our management team or key employees and our ability to attract and retain personnel, the impact of competition on products and pricing, inflation in the costs of the products and services insurance pays for, product development, geographic spread of risk, weather and weather-related events, other types of catastrophic events, our ability to obtain reinsurance coverage at prices and on terms that allow us to transfer risk and adequately protect our company against financial loss, and losses resulting from reinsurance counterparties failing to pay us on reinsurance claims. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Skyward Specialty Insurance Group, Inc.

Investor contact:
Natalie Schoolcraft,
nschoolcraft@skywardinsurance.com
614-494-4988

or

Media contact:
Haley Doughty
hdoughty@skywardinsurance.com
713-935-4944

Consolidated Balance Sheets
($ in thousands, except share and per share amounts)
(unaudited)	December 31, 2024			December 31, 2023
Assets
Investments:
Fixed maturity securities, available-for-sale, at fair value (amortized cost of $1,320,266 and $1,047,713, respectively)	$	1,292,218		$	1,017,651
Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $243 and $329, respectively)		39,153			42,986
Equity securities, at fair value		106,254			118,249
Mortgage loans, at fair value		26,490			50,070
Equity method investments		98,594			110,653
Other long-term investments		33,182			3,852
Short-term investments, at fair value		274,929			270,226
Total investments		1,870,820			1,613,687
Cash and cash equivalents		121,603			65,891
Restricted cash		35,922			34,445
Premiums receivable, net		321,641			179,235
Reinsurance recoverables, net		857,876			596,334
Ceded unearned premium		203,901			186,121
Deferred policy acquisition costs		113,183			91,955
Deferred income taxes		30,486			21,991
Goodwill and intangible assets, net		87,348			88,435
Other assets		86,698			75,341
Total assets	$	3,729,478		$	2,953,435
Liabilities and stockholders’ equity
Liabilities:
Reserves for losses and loss adjustment expenses	$	1,782,383		$	1,314,501
Unearned premiums		637,185			552,532
Deferred ceding commission		40,434			37,057
Reinsurance and premium payables		177,070			150,156
Funds held for others		102,665			58,588
Accounts payable and accrued liabilities		76,206			50,880
Notes payable		100,000			50,000
Subordinated debt, net of debt issuance costs		19,536			78,690
Total liabilities		2,935,479			2,292,404
Stockholders’ equity
Common stock, $0.01 par value, 500,000,000 shares authorized, 40,127,908 and 39,863,756 shares issued and outstanding, respectively		401			399
Additional paid-in capital		718,598			710,855
Stock notes receivable		—			(5,562	)
Accumulated other comprehensive loss		(22,120	)		(22,953	)
Retained earnings (accumulated deficit)		97,120			(21,708	)
Total stockholders’ equity		793,999			661,031
Total liabilities and stockholders’ equity	$	3,729,478		$	2,953,435

Condensed Consolidated Statements of Operations and Comprehensive Income
($ in thousands)	Three months ended December 31,						Twelve months ended December 31,
(unaudited)	2024			2023			2024			2023

Revenues:
Net earned premiums	$	293,240		$	224,932		$	1,056,722		$	829,143
Commission and fee income		806			247			6,703			6,064
Net investment income		20,730			14,004			80,686			40,322
Net investment (losses) gains		(10,409	)		7,744			6,256			11,072
Other income (loss)		35			(632	)		(167	)		(632	)
Total revenues		304,402			246,295			1,150,200			885,969
Expenses:
Losses and loss adjustment expenses		196,320			137,396			669,809			515,237
Underwriting, acquisition and insurance expenses		85,487			66,791			311,757			243,444
Interest expense		2,091			2,774			9,496			10,024
Amortization expense		908			462			2,007			1,798
Other expenses		1,042			1,303			4,392			5,364
Total expenses		285,848			208,726			997,461			775,867
Income before income taxes		18,554			37,569			152,739			110,102
Income tax expense		4,148			8,304			33,911			24,118
Net income		14,406			29,265			118,828			85,984
Net income attributable to participating securities		—			—			—			1,677
Net income attributable to common stockholders	$	14,406		$	29,265		$	118,828		$	84,307
Comprehensive income:
Net income	$	14,406		$	29,265		$	118,828		$	85,984
Other comprehensive income:
Unrealized gains and losses on investments:
Net change in unrealized (losses) gains on investments, net of tax		(14,735	)		30,825			9,792			25,516
Reclassification adjustment for losses on securities no longer held, net of tax		(5,682	)		(105	)		(8,959	)		(4,984	)
Total other comprehensive (loss) income		(20,417	)		30,720			833			20,532
Comprehensive (loss) income	$	(6,011	)	$	59,985		$	119,661		$	106,516

Share and Per Share Data
($ in thousands, except share and per share amounts)	Three months ended December 31,						Twelve months ended December 31,
(unaudited)	2024			2023			2024			2023

Weighted average basic shares		40,107,617			37,570,274			40,056,475			36,031,907
Weighted average diluted shares		41,622,397			39,582,352			41,377,460			38,317,534

Basic earnings per share	$	0.36		$	0.78		$	2.97		$	2.34
Diluted earnings per share	$	0.35		$	0.74		$	2.87		$	2.24
Basic adjusted operating earnings per share	$	0.83		$	0.65		$	3.16		$	2.20
Diluted adjusted operating earnings per share	$	0.80		$	0.61		$	3.06		$	2.11

Annualized ROE ⁽¹⁾		7.2	%		19.6	%		16.3	%		15.9	%
Annualized adjusted ROE ⁽²⁾		16.7	%		16.3	%		17.4	%		14.9	%
Annualized ROTE ⁽³⁾		8.1	%		23.0	%		18.6	%		19.0	%
Annualized adjusted ROTE ⁽⁴⁾		18.8	%		19.1	%		19.8	%		17.9	%

							December 31			December 31
							2024			2023

Shares outstanding								40,127,908			39,863,756
Fully diluted shares outstanding								42,059,182			41,771,854

Book value per share							$	19.79		$	16.72
Fully diluted book value per share							$	18.88		$	15.96
Fully diluted tangible book value per share							$	16.80		$	13.84

⁽¹⁾Annualized ROE is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period
⁽²⁾Annualized adjusted ROE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period
⁽³⁾Annualized ROTE is net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period
⁽⁴⁾Annualized adjusted ROTE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period

Adjusted operating income – We define adjusted operating income as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted operating income differently.

($ in thousands)	Three months ended December 31,												Twelve months ended December 31,
(unaudited)	2024						2023						2024						2023
	Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax
Income as reported	$	18,554		$	14,406		$	37,569		$	29,265		$	152,739		$	118,828		$	110,102		$	85,984
Less (add):
Net investment (losses) gains		(10,409	)		(8,223	)		7,744			6,118			6,256			4,942			11,072			8,747
Net impact of loss portfolio transfer		(12,398	)		(9,794	)		457			361			(11,598	)		(9,162	)		1,427			1,127
Other loss		35			28			(632	)		(499	)		(167	)		(132	)		(632	)		(499	)
Other expenses		(1,042	)		(823	)		(1,303	)		(1,029	)		(4,392	)		(3,470	)		(5,364	)		(4,238	)
Adjusted operating income	$	42,368		$	33,218		$	31,303		$	24,314		$	162,640		$	126,650		$	103,599		$	80,847

Underwriting income – We define underwriting income as net income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, impairment charges, interest expense, amortization expense and other income and expenses. Underwriting income represents the pre-tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to investment income. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for pre-tax income calculated in accordance with GAAP, and other companies may define underwriting income differently.

($ in thousands)	Three months ended December 31,						Twelve months ended December 31,
(unaudited)	2024			2023			2024			2023
Income before income taxes	$	18,554		$	37,569		$	152,739		$	110,102
Add:
Interest expense		2,091			2,774			9,496			10,024
Amortization expense		908			462			2,007			1,798
Other expenses		1,042			1,303			4,392			5,364
Less (add):
Net investment income		20,730			14,004			80,686			40,322
Net investment (losses) gains		(10,409	)		7,744			6,256			11,072
Other income (loss)		35			(632	)		(167	)		(632	)
Underwriting income	$	12,239		$	20,992		$	81,859		$	76,526

Adjusted Loss Ratio / Adjusted Combined Ratio – We define adjusted loss ratio and adjusted combined ratio as the corresponding ratio (calculated in accordance with GAAP), excluding losses and LAE related to the LPT and all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening. We use these adjusted ratios as internal performance measures in the management of our operations because we believe they give our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Our adjusted loss ratio and adjusted combined ratio should not be viewed as substitutes for our loss ratio and combined ratio, respectively.

($ in thousands)	Three months ended December 31,						Twelve months ended December 31,
(unaudited)	2024			2023			2024			2023
Net earned premiums	$	293,240		$	224,932		$	1,056,722		$	829,143

Losses and LAE		196,320			137,396			669,809			515,237
Less: Pre-tax net impact of LPT		12,398			(457	)		11,598			(1,427	)
Adjusted losses and LAE	$	183,922		$	137,853		$	658,211		$	516,664

Loss ratio		66.9	%		61.1	%		63.4	%		62.1	%
Less: net impact of LPT		4.2	%		(0.2	)%		1.1	%		(0.2	)%
Adjusted loss ratio		62.7	%		61.3	%		62.3	%		62.3	%

Combined ratio		95.8	%		90.7	%		92.3	%		90.7	%
Less: net impact of LPT		4.2	%		(0.2	)%		1.1	%		(0.2	)%
Adjusted combined ratio		91.6	%		90.9	%		91.2	%		90.9	%

Tangible Stockholders’ Equity – We define tangible stockholders’ equity as stockholders’ equity less goodwill and intangible assets. Our definition of tangible stockholders’ equity may not be comparable to that of other companies and should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders’ equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.

($ in thousands)	December 31,
(unaudited)	2024		2023
Stockholders’ equity	$	793,999	$	661,031
Less: Goodwill and intangible assets		87,348		88,435
Tangible stockholders’ equity	$	706,651	$	572,596

	Three months ended December 31,						Twelve months ended December 31,
($ in thousands)	2024		2023		% Change		2024		2023		% Change
Industry Solutions		80,738		78,796	2.5	%		317,198		305,476	3.8	%
Global Property & Agriculture	$	31,681	$	25,996	21.9	%	$	311,402	$	273,191	14.0	%
Captives		57,765		40,375	43.1	%		241,902		167,624	44.3	%
Programs		52,151		35,694	46.1	%		218,407		178,726	22.2	%
Accident & Health		44,594		38,882	14.7	%		173,073		151,701	14.1	%
Transactional E&S		36,262		31,560	14.9	%		169,053		122,508	38.0	%
Professional Lines		39,130		40,145	(2.5	)%		159,785		154,565	3.4	%
Surety		46,034		30,157	52.6	%		152,429		106,056	43.7	%
Total gross written premiums⁽¹⁾	$	388,355	$	321,605	20.8	%	$	1,743,249	$	1,459,847	19.4	%
⁽¹⁾Excludes exited business

The MIL Network –

February 26, 2025

MIL-OSI: Sprout Social Announces Fourth Quarter 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

CHICAGO, Feb. 25, 2025 (GLOBE NEWSWIRE) — Sprout Social, Inc. (“Sprout Social”, the “Company”) (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced financial results for its fourth quarter ended December 31, 2024.

“The Sprout team delivered a solid fourth quarter, driving 14% revenue growth and 26% growth in cRPO, laying the foundation for future growth in 2025 and beyond. As we work to define the future of social media management, we remain focused on execution—winning the enterprise, driving customer health, expanding our partnership ecosystem, and driving deeper engagement in our customer base,” said Ryan Barretto, CEO.

Fourth Quarter 2024 Financial Highlights

Revenue

Revenue was $107.1 million, up 14% compared to the fourth quarter of 2023.
Total remaining performance obligations (RPO) of $351.5 million as of December 31, 2024, up 28% year-over-year.
Current remaining performance obligations (cRPO) of $249.4 million as of December 31, 2024, up 26% year-over-year.

Operating Income (Loss)

GAAP operating loss was ($13.7) million, compared to ($18.2) million in the fourth quarter of 2023.
Non-GAAP operating income was $11.4 million, compared to $1.7 million in the fourth quarter of 2023.

Net Loss

GAAP net loss was ($14.4) million, compared to ($20.1) million in the fourth quarter of 2023.
Non-GAAP net income was $10.7 million, compared to $1.0 million in the fourth quarter of 2023.
GAAP net loss per share was ($0.25) based on 57.5 million weighted-average shares of common stock outstanding, compared to ($0.36) based on 56.1 million weighted-average shares of common stock outstanding in the fourth quarter of 2023.
Non-GAAP net income per share was $0.19 based on 57.5 million weighted-average shares of common stock outstanding, compared to $0.02 based on 56.1 million weighted-average shares of common stock outstanding in the fourth quarter of 2023.

Cash

Cash and equivalents and marketable securities totaled $90.2 million as of December 31, 2024, compared to $91.5 million as of September 30, 2024.
Net cash provided by (used in) operating activities was $4.1 million, compared to ($2.6) million in the fourth quarter of 2023.
Non-GAAP free cash flow was $6.6 million, compared to ($0.3) million in the fourth quarter of 2023.

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

Customer Metrics

Grew number of customers contributing over $10,000 in ARR to 9,327 customers as of December 31, 2024, up 7% compared to December 31, 2023.
Grew number of customers contributing over $50,000 in ARR to 1,718 customers as of December 31, 2024, up 23% compared to December 31, 2023.
Dollar-based net retention rate was 104% in 2024, compared to 107% in 2023.
Dollar-based net retention rate excluding small-and-medium-sized business (SMB) customers was 108% in 2024, compared to 111% in 2023.

Recent Customer Highlights

During the fourth quarter, we had the opportunity to grow with new and existing customers like: Under Armour, ESPN, Rocket Mortgage, Klaviyo, Carhartt, Campbell, and Cushman & Wakefield.

Recent Business Highlights

Sprout Social recently:

Released a new Total Economic Impact™ study conducted by Forrester Consulting that found Sprout Social enabled customers to achieve a 268% return on investment (link)
Recognized by G2’s Best Software Awards as a top company across seven categories (link)
Announced rebranded influencer marketing platform to prepare brands for the next generation of social (link)
Launched the 2025 Sprout Social Index™ highlighting the latest trends in social culture and brand implications for the future (link)
Unveiled updates to its suite of AI solutions that enable marketers to unlock new potential and boost competitiveness (link)
Named a leader in worldwide social media marketing software for large enterprises by IDC Marketscape (link) and earned a 2025 Buyer’s Choice Award from TrustRadius (link)
Recognized by Built In as a Best Place to Work for the sixth consecutive year (link)

First Quarter and 2025 Financial Outlook

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

Total revenue between $107.2 million and $108.0 million.
Non-GAAP operating income between $8.5 million and $9.5 million.
Non-GAAP net income per share between $0.14 and $0.16 based on approximately 58.5 million weighted-average shares of common stock outstanding.

For the full year 2025, the Company currently expects:

Total revenue between $448.1 million and $453.1 million.
Non-GAAP operating income between $38.2 million and $43.2 million.
Non-GAAP net income per share between $0.65 and $0.74 based on approximately 59.3 million weighted-average shares of common stock outstanding.

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

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

Conference Call Information

The financial results and business highlights will be discussed on a conference call and webcast scheduled at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) today, February 25, 2025. Online registration for this event conference call can be found at https://registrations.events/direct/Q4I1913111787. The live webcast of the conference call can be accessed from Sprout Social’s investor relations website at http://investors.sproutsocial.com.

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

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

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “explore,””future,” “intend,” “long-term model,” “may,” “medium to longer term goals,” “might” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q1 2025 and full year 2025 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others: we may not be able to sustain our revenue and customer growth rate in the future, including due to risks associated with our strategic focus on enterprise customers; price increases have and may continue to negatively impact demand for our products, customer acquisition and retention and reduce the total number of customers or customer additions; our business would be harmed by any significant interruptions, delays or outages in services from our platform, our API providers, or certain social media platforms; if we are unable to attract potential customers through unpaid channels, convert this traffic to free trials or convert free trials to paid subscriptions, our business and results of operations may be adversely affected; we may be unable to successfully enter new markets, manage our international expansion and comply with any applicable international laws and regulations; we may be unable to integrate acquired businesses or technologies successfully or achieve the expected benefits of such acquisitions and investments; unstable market and economic conditions, such as recession risks, effects of inflation, labor shortages, supply chain issues, high interest rates, and the impacts of current and potential future bank failures and impacts of ongoing overseas conflicts, have and could continue to adversely impact our business and that of our existing and prospective customers, which may result in reduced demand for our products; we may not be able to generate sufficient cash to service our indebtedness; covenants in our credit agreement may restrict our operations, and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted; any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business; changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brand; and risks related to ongoing legal proceedings. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 23, 2024 and our Annual Report on Form 10-K for the year ended December 31, 2024, to be filed with the SEC as well as any future reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those reports as being heightened as a result of the current instability in market and economic conditions. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprout Social at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Sprout Social assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Use of Non-GAAP Financial Measures

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

Non-GAAP gross profit. We define non-GAAP gross profit as GAAP gross profit, excluding stock-based compensation expense, amortization expense associated with the acquired developed technology from our acquisition of Tagger Media, Inc. (the “Tagger acquisition”) and restructuring charges. We believe non-GAAP gross profit provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense and restructuring charges which are often unrelated to overall operating performance. During the fourth quarter of 2024, we revised our definition of non-GAAP gross profit to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs.

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

Non-GAAP operating income (loss). We define non-GAAP operating income (loss) as GAAP loss from operations, excluding stock-based compensation expense, acquisition-related expenses and amortization expense associated with the acquired intangible assets from the Tagger acquisition, restructuring charges and non-cash gains from lease modifications. We believe non-GAAP operating income (loss) provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, acquisition-related expenses, amortization expense, restructuring charges and non-cash gains from lease modifications, which are often unrelated to overall operating performance. During the fourth quarter of 2024, we revised our definition of non-GAAP operating income (loss) to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs, and non-cash gain related to an office lease modification.

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

Non-GAAP net income (loss). We define non-GAAP net income (loss) as GAAP net loss, excluding stock-based compensation expense, acquisition-related expenses, amortization expense associated with the acquired intangible assets from the Tagger acquisition, tax expense due to changes in valuation allowances from business acquisitions, restructuring charges and non-cash gains from lease modifications. We believe non-GAAP net income (loss) provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, acquisition-related expenses, amortization expense and tax expense due to changes in valuation allowances from business acquisitions, restructuring charges and non-cash gains from lease modifications, which are often unrelated to overall operating performance. During the fourth quarter of 2024, we revised our definition of non-GAAP net income (loss) to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs, and non-cash gain related to an office lease modification.

Non-GAAP net income (loss) per share. We define non-GAAP net income (loss) per share as GAAP net loss per share attributable to common shareholders, basic and diluted, excluding stock-based compensation expense, acquisition-related expenses, amortization expense associated with the acquired intangible assets from the Tagger acquisition, tax expense due to changes in valuation allowances from business acquisitions, restructuring charges and non-cash gains from lease modifications. We believe non-GAAP net income (loss) per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, acquisition-related expenses, amortization expense, tax expense due to changes in valuation allowances from business acquisitions, restructuring charges and non-cash gains from lease modifications, which are often unrelated to overall operating performance. During the fourth quarter of 2024, we revised our definition of non-GAAP net income (loss) per share to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs, and non-cash gain related to an office lease modification.

Non-GAAP free cash flow. We define non-GAAP free cash flow as net cash provided by (used in) operating activities less expenditures for property and equipment, acquisition-related costs, interest and payments related to restructuring charges. Non-GAAP free cash flow does not reflect our future contractual obligations or represent the total increase or decrease in our cash balance for a given period. We believe non-GAAP free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash used in our core operations that, after expenditures for property and equipment, acquisition-related costs, interest and payments related to restructuring charges, is not available for strategic initiatives. During the fourth quarter of 2024, we revised our definition of non-GAAP free cash flow to exclude payments related to restructuring charges associated with a workforce reorganization.

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

Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses. Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses are defined as sales and marketing expenses, research and development expenses and general and administrative expenses, respectively, less stock-based compensation expense, acquisition-related expenses, restructuring charges and non-cash gains from lease modifications. We believe these non-GAAP measures provide our management and investors with insight into day-to-day operating expenses given that these measures eliminate the effect of stock-based compensation, acquisition-related expenses, restructuring charges and non-cash gains from lease modifications. During the fourth quarter of 2024, we revised our definition of non-GAAP general and administrative expenses to exclude restructuring charges associated with a workforce reorganization, consisting primarily of severance and other personnel-related costs, and non-cash gain related to an office lease modification.

Key Business Metrics

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

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

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

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

Dollar-based net retention rate. We calculate dollar-based net retention rate by dividing the ARR from our customers as of December 31st in the reported year by the ARR from those same customers as of December 31st in the previous year. This calculation is net of upsells, contraction, cancellation or expansion during the period but excludes ARR from new customers. We use dollar-based net retention to evaluate the long-term value of our customer relationships, because we believe this metric reflects our ability to retain and expand subscription revenue generated from our existing customers.

Dollar-based net retention rate excluding SMB customers. We calculate dollar-based net retention rate excluding SMB customers by dividing the ARR from all customers excluding ARR from customers that we have identified or that self-identified as having less than 50 employees as of December 31st in the reported year by the ARR from those same customers as of December 31st of the previous year. This calculation is net of upsells, contraction, cancellation or expansion during the period but excludes ARR from new customers. We used dollar-based net retention excluding SMB customers to evaluate the long-term value of our larger customer relationships, because we believe this metric reflects our ability to retain and expand subscription revenue generated from our existing customers.

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

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

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

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

Contact

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

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


Sprout Social, Inc.
Consolidated Statements of Operations (Unaudited)
*(in thousands, except share and per share data)*

	Three Months Ended December 31,
	2024	2023
Revenue
Subscription	$ 105,922	$ 92,224
Professional services and other	1,168	1,360
Total revenue	107,090	93,584
Cost of revenue(1)
Subscription	23,094	20,597
Professional services and other	319	364
Total cost of revenue	23,413	20,961
Gross profit	83,677	72,623
Operating expenses
Research and development(1)	27,627	22,661
Sales and marketing(1)	45,889	47,380
General and administrative(1)	23,838	20,805
Total operating expenses	97,354	90,846
Loss from operations	(13,677)	(18,223)
Interest expense	(656)	(1,544)
Interest income	878	1,210
Other expense, net	(620)	(118)
Loss before income taxes	(14,075)	(18,675)
Income tax expense	342	1,402
Net loss	$ (14,417)	$ (20,077)
Net loss per share attributable to common shareholders, basic and diluted	$ (0.25)	$ (0.36)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted	57,511,942	56,098,243

(1) Includes stock-based compensation expense as follows:

	Three Months Ended December 31,
	2024	2023
Cost of revenue	$ 1,046	$ 895
Research and development	6,640	5,529
Sales and marketing	7,017	7,770
General and administrative	7,750	4,465
Total stock-based compensation expense	$ 22,453	$ 18,659

Sprout Social, Inc.
Consolidated Statements of Operations (Unaudited)
*(in thousands, except share and per share data)*

	Twelve Months Ended December 31,
	2024	2023
Revenue
Subscription	$ 402,022	$ 330,458
Professional services and other	3,886	3,185
Total revenue	405,908	333,643
Cost of revenue(1)
Subscription	90,305	75,076
Professional services and other	1,170	1,192
Total cost of revenue	91,475	76,268
Gross profit	314,433	257,375
Operating expenses
Research and development(1)	102,794	79,550
Sales and marketing(1)	184,122	168,091
General and administrative(1)	87,873	79,011
Total operating expenses	374,789	326,652
Loss from operations	(60,356)	(69,277)
Interest expense	(3,525)	(2,754)
Interest income	3,973	7,021
Other expense, net	(1,393)	(768)
Loss before income taxes	(61,301)	(65,778)
Income tax expense	670	649
Net loss	$ (61,971)	$ (66,427)
Net loss per share attributable to common shareholders, basic and diluted	$ (1.09)	$ (1.19)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted	56,935,910	55,664,404

(1) Includes stock-based compensation expense as follows:

	Twelve Months Ended December 31,
	2024	2023
Cost of revenue	$ 3,936	$ 3,224
Research and development	25,619	18,478
Sales and marketing	31,544	30,116
General and administrative	23,204	15,886
Total stock-based compensation expense	$ 84,303	$ 67,704

Sprout Social, Inc.
Consolidated Balance Sheets (Unaudited)
*(in thousands, except share and per share data)*


	December 31, 2024	December 31, 2023
Assets
Current assets
Cash and cash equivalents	$ 86,437	$ 49,760
Marketable securities	3,745	44,645
Accounts receivable, net of allowances of $2,169 and $2,177 at December 31, 2024 and December 31, 2023, respectively	84,033	63,489
Deferred Commissions	20,184	27,725
Prepaid expenses and other assets	15,816	10,324
Total current assets	210,215	195,943
Marketable securities, noncurrent	–	3,699
Property and equipment, net	10,951	11,407
Deferred commissions, net of current portion	51,653	26,240
Operating lease, right-of-use asset	11,326	8,729
Goodwill	121,315	121,404
Intangible assets, net	21,914	28,065
Other assets, net	967	1,098
Total assets	$ 428,341	$ 396,585
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$ 6,984	$ 6,933
Deferred revenue	178,585	140,536
Operating lease liability	3,747	3,948
Accrued wages and payroll related benefits	20,567	18,362
Accrued expenses and other	10,869	11,260
Total current liabilities	220,752	181,039
Revolving credit facility	25,000	55,000
Deferred revenue, net of current portion	1,101	920
Operating lease liability, net of current portion	14,543	15,083
Other non-current liabilities	351	351
Total liabilities	261,747	252,393

Stockholders’ equity

Class A common stock, par value $0.0001 per share; 1,000,000,000 shares authorized; 54,219,684 and 51,277,740 shares issued and outstanding, respectively, at December 31, 2024; 52,133,594 and 49,241,563 shares issued and outstanding, respectively, at December 31, 2023	4	4
Class B common stock, par value $0.0001 per share; 25,000,000 shares authorized; 6,687,582 and 6,480,638 shares issued and outstanding, respectively, at December 31, 2024; 7,201,140 and 6,994,196 shares issued and outstanding, respectively, at December 31, 2023	1	1
Additional paid-in capital	558,391	471,789
Treasury stock, at cost	(37,422)	(35,113)
Accumulated other comprehensive loss	3	(77)
Accumulated deficit	(354,383)	(292,412)
Total stockholders’ equity	166,594	144,192
Total liabilities and stockholders’ equity	$ 428,341	$ 396,585

Sprout Social, Inc.
Consolidated Statements of Cash Flows (Unaudited)
*(in thousands)*

	Three Months Ended December 31,
	2024	2023
Cash flows from operating activities
Net loss	$ (14,417)	$ (20,077)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization of property, equipment and software	1,064	835
Amortization of line of credit issuance costs	51	52
Accretion of discount on marketable securities	(23)	(470)
Amortization of acquired intangible assets	1,474	1,604
Amortization of deferred commissions	4,698	7,518
Amortization of right-of-use operating lease asset	467	425
Stock-based compensation expense	22,453	18,659
Provision for accounts receivable allowances	236	835
Gain on lease modification	(1,570)	–
Tax expense due to change in valuation allowance from business acquisition	–	1,134
Changes in operating assets and liabilities, excluding impact from business acquisition
Accounts receivable	(29,908)	(19,235)
Prepaid expenses and other current assets	(729)	3,979
Deferred commissions	(13,101)	(14,522)
Accounts payable and accrued expenses	4,650	(473)
Deferred revenue	29,475	18,051
Lease liabilities	(678)	(919)
Net cash provided by (used in) operating activities	4,142	(2,604)
Cash flows from investing activities
Expenditures for property and equipment	(888)	(629)
Payments for business acquisition, net of cash acquired	–	143
Proceeds from maturity of marketable securities	4,900	32,657
Net cash provided by investing activities	4,012	32,171
Cash flows from financing activities
Borrowings from line of credit	–	–
Repayments of line of credit	(5,000)	(20,000)
Payments for line of credit issuance costs	–	(208)
Proceeds from employee stock purchase plan	718	912
Employee taxes paid related to the net share settlement of stock-based awards	(309)	(537)
Net cash used in financing activities	(4,591)	(19,833)
Net increase in cash, cash equivalents, and restricted cash	3,563	9,734
Cash, cash equivalents, and restricted cash
Beginning of period	86,855	43,961
End of period	$ 90,418	$ 53,695

Sprout Social, Inc.
Consolidated Statements of Cash Flows (Unaudited)
*(in thousands)*

	Twelve Months Ended December 31,
	2024		2023
Cash flows from operating activities
Net loss	$ (61,971)	$ (66,427)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization of property, equipment and software	3,890		3,137
Amortization of line of credit issuance costs	206		86
Accretion of discount on marketable securities	(406)		(3,203)
Amortization of acquired intangible assets	6,151		3,541
Amortization of deferred commissions	16,347		26,582
Amortization of right-of-use operating lease asset	1,827		1,553
Stock-based compensation expense	84,303		67,704
Provision for accounts receivable allowances	1,709		2,418
Gain on lease modification	(1,570)		–
Changes in operating assets and liabilities, excluding impact from business acquisition
Accounts receivable	(22,253)		(26,982)
Prepaid expenses and other current assets	(5,452)		444
Deferred commissions	(34,219)		(40,540)
Accounts payable and accrued expenses	3,124		(226)
Deferred revenue	38,230		41,918
Lease liabilities	(3,595)		(3,549)
Net cash provided by operating activities	26,321		6,456
Cash flows from investing activities
Expenditures for property and equipment	(2,950)		(2,073)
Payments for business acquisition, net of cash acquired	(1,409)		(145,636)
Purchases of marketable securities	–		(63,085)
Proceeds from maturity of marketable securities	45,085		118,621
Proceeds from sale of marketable securities	–		5,538
Net cash provided by (used in) investing activities	40,726		(86,635)
Cash flows from financing activities
Borrowings from line of credit	–		75,000
Repayments of line of credit	(30,000)		(20,000)
Payments for line of credit issuance costs	–		(1,031)
Proceeds from exercise of stock options	29		29
Proceeds from employee stock purchase plan	1,956		2,339
Employee taxes paid related to the net share settlement of stock-based awards	(2,309)		(2,380)
Net cash (used in) provided by financing activities	(30,324)		53,957
Net increase (decrease) in cash, cash equivalents, and restricted cash	36,723		(26,222)
Cash, cash equivalents, and restricted cash
Beginning of period	53,695		79,917
End of period	$ 90,418		$ 53,695

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

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended December 31,		Twelve Months Ended December 31,
	2024	2023	2024	2023
Reconciliation of Non-GAAP gross profit
Gross profit	$ 83,677	$ 72,623	$ 314,433	$ 257,375
Stock-based compensation expense	1,046	895	3,936	3,224
Amortization of acquired developed technology	705	705	2,820	1,175
Restructuring charges	62	–	62	–
Non-GAAP gross profit	$ 85,490	$ 74,223	$ 321,251	$ 261,774

Reconciliation of Non-GAAP operating income (loss)
Loss from operations	$ (13,677)	$ (18,223)	$ (60,356)	$ (69,277)
Stock-based compensation expense	22,453	18,659	84,303	67,704
Acquisition-related expenses	–	51	–	4,272
Amortization of acquired intangible assets	1,212	1,213	4,851	2,022
Restructuring charges	3,020	–	3,020	–
Gain on lease modification	(1,570)	–	(1,570)	–
Non-GAAP operating income	$ 11,438	$ 1,700	$ 30,248	$ 4,721

Reconciliation of Non-GAAP net income (loss)
Net loss	$ (14,417)	$ (20,077)	$ (61,971)	$ (66,427)
Stock-based compensation expense	22,453	18,659	84,303	67,704
Acquisition-related expenses	–	51	–	4,272
Amortization of acquired intangible assets	1,212	1,213	4,851	2,022
Restructuring charges	3,020	–	3,020	–
Gain on lease modification	(1,570)	–	(1,570)	–
Tax expense due to change in valuation allowance from business acquisition	–	1,134	–	–
Non-GAAP net income	$ 10,698	$ 980	$ 28,633	$ 7,571

Reconciliation of Non-GAAP net income (loss) per share
Net loss per share attributable to common shareholders, basic and diluted	$ (0.25)	$ (0.36)	$ (1.09)	$ (1.19)
Stock-based compensation expense	0.39	0.34	1.48	1.22
Acquisition-related expenses	–	–	–	0.08
Amortization of acquired intangible assets	0.03	0.02	0.09	0.03
Restructuring charges	0.05	–	0.05	–
Gain on lease modification	(0.03)	–	(0.03)	–
Tax expense due to change in valuation allowance from business acquisition	–	0.02	–	–
Non-GAAP net income per share	$ 0.19	$ 0.02	$ 0.50	$ 0.14

Reconciliation of Non-GAAP free cash flow
Net cash provided by (used in) operating activities	$ 4,142	$ (2,604)	$ 26,321	$ 6,456
Expenditures for property and equipment	(888)	(629)	(2,950)	(2,073)
Acquisition-related costs	–	1,366	–	4,272
Interest paid on credit facility	621	1,588	3,635	1,588
Payments related to restructuring charges	2,682	–	2,682	–
Non-GAAP free cash flow	$ 6,557	$ (279)	$ 29,688	$ 10,243

The MIL Network –

February 26, 2025

MIL-OSI USA: One Month of Secretary Noem: Making America Safe Again

Source: US Federal Emergency Management Agency

Headline: One Month of Secretary Noem: Making America Safe Again

lass=”text-align-center”>“President Trump and this Administration are saving lives every day because of the actions we are taking to secure the border and deport illegal alien criminals.” – Secretary of Homeland Security Kristi Noem
WASHINGTON – In her first month on the job, Secretary Kristi Noem returned the Department of Homeland Security (DHS) to its core mission of securing the homeland.
Under Secretary Noem’s strong leadership, DHS is hard at work securing our borders, arresting and removing criminal aliens, safeguarding the U.S. cyber infrastructure, protecting America’s leaders, deterring terrorism, and keeping America safe.
Below is just a sample of Secretary Noem’s accomplishments from her first month:

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

ICE arrests of criminal aliens have doubled and arrests of fugitives at large as tripled.
Single day border apprehensions hit a 15-year low and daily border encounters have plunged 94% since President Trump took office.

Secretary Noem rode with ICE agents on an operation in New York City that resulted in the arrest of a Tren de Aragua ringleader.
DHS has returned the Temporary Protected Status immigration program to its original status: temporary. No longer will this program be abused and exploited by illegal aliens.

Secretary Noem ended the previous administration’s extension of Venezuelan Temporary Protected Status.
Additionally, the Secretary rescinded the previous administration’s extension of Haitian Temporary Protected Status.

Under the Secretary’s leadership, DHS is enforcing President Trump’s first major piece of legislation, the Laken Riley Act. This law mandates the federal detention of illegal aliens who are accused of theft, burglary, assaulting law enforcement, and any crime that causes death or serious bodily injury.
To stop policies that were magnets for illegal immigration, Secretary Noem froze all funding to non-governmental organizations that facilitate illegal immigration.
Secretary Noem has deputized the Texas National Guard, Drug Enforcement Administration, Bureau of Prisons, U.S. Marshals, the Bureau of Alcohol, Tobacco, Firearms and Explosives, special agents from the State Department and the IRS to help with immigration operations.
To fulfill President Trump’s promise to carry out mass deportations, the administration is detaining illegal aliens, including violent criminals, at Guantanamo Bay.

Already, 176 illegal aliens being held at Guantanamo Bay have been returned to Venezuela.
125 of these individuals were violent criminals including Tren de Aragua gang members and weapon and drug traffickers.

DHS ensured a safe and secure Super Bowl for the more than 100,000 fans celebrating in New Orleans.
Secretary Noem launched a multimillion-dollar ad campaign urging illegal aliens to leave the U.S. voluntarily or face deportation with no chance of return.
Secretary Noem is embracing the Department of Government Efficiency (DOGE) efforts to make sweeping cuts that eliminate government waste, return DHS to its core mission of protecting the homeland, and fulfill the Founders vision of returning power to the states.

Bottom Line: President Trump and Secretary Noem will continue fighting every day to make America safe again.

MIL OSI USA News –

February 26, 2025

Category: Taxation

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