Category: Taxation

MIL-OSI Security: Florida Businessman Sentenced in Connection with Migrant Labor Employment Scheme, Payroll Tax Evasion, and Worker Death

Source: United States Attorneys General 10

A Florida man was sentenced yesterday to 48 months in prison and ordered to forfeit more than $5.5 million to the United States as well as forfeit numerous real properties and cash, and to pay over $55 million in restitution for conspiracy to commit wire fraud, conspiracy to defraud the United States and willful violation of a workplace standard that resulted in the death of his employee. Manual Domingos Pita, of Wesley Chapel, previously pleaded guilty to those charges on July 9, 2024.

According to court documents, Pita owned and operated Domingos 54 Construction, a subcontracting business for the wood framing of new construction homes. Domingos 54 was a shell construction company that Pita used to provide workers, including undocumented aliens, with construction jobs. However, Pita failed to secure the required workers compensation insurance coverage for these employees by falsifying in worker’s compensation insurance applications the number of workers for which he sought coverage. In addition, Pita failed to pay any federal employment taxes on the wages that these workers earned during the course of the scheme between 2018 and 2022. As a result, Pita caused several worker’s compensation insurance companies to sustain a loss of over $22.7 million in premiums that they could have charged had they been aware of the number of workers which they had been manipulated into covering with their policies. In addition, Pita failed to pay to the IRS over $33.7 million in federal employment taxes on those workers’ wages.

Between February and July 2019, investigators with the Occupational Safety and Health Administration (OSHA) issued six citations to Domingos 54 for failure to provide fall protection to workers. Even after being cited for these violations, Pita continued to ignore OSHA requirements. In March 2020, Pita assigned a worker and three other carpenters to install sheeting on the roof of a residential home in windy conditions without providing the required fall-protection gear or ensuring its use. As a result, one of the workers was blown off the roof and died from his injuries.

“Pita’s history of OSHA violations and deception tragically led to a worker’s death,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division. “We are committed to upholding the rule of law by prosecuting fraud and enforcing worker safety standards.”

“The defendant in this case engaged in a deliberate scheme to defraud insurance companies, the government and evade taxes, resulting in huge losses to the U.S. Treasury, and to personally enrich himself,” said Acting U.S. Attorney for the Middle District of Florida Sara C. Sweeney. “In addition, flagrant violations of OSHA safety standards put workers at unacceptable risk, ultimately resulting in the death of an employee. My office is committed to federally prosecuting and holding accountable anyone who violates these laws and regulations.”

“Mr. Pita repeatedly violated the longstanding policies designed to protect the workforce which resulted in a tragic death,” said Special Agent in Charge Matthew Fodor of the FBI’s Tampa Field Office. “The FBI and its partners will aggressively pursue those who selfishly ignore the laws and policies in place to protect America’s workforce.”

“Not only does this type of scheme give an illegal advantage over honest competitors, it intends to allow the use of illegal, undocumented labor to achieve that advantage,” said Special Agent in Charge Ron Loecker of IRS Criminal Investigation’s Tampa Field Office. “It’s a blatant form of cheating that undercuts fair competition, costs the government millions of dollars in tax revenue, and skirts our nation’s immigration laws. This case reaffirms our unwavering commitment to prosecuting those who engage in fraud at the expense of workers, taxpayers, and law-abiding businesses.”

The FBI, IRS Criminal Investigation, Homeland Security Investigations, Florida Department of Financial Services’ Bureau of Insurance Fraud-Criminal Investigations and the Department of Labor’s Office of Inspector General investigated the case.

Assistant U.S. Attorney Jay L. Hoffer for the Middle District of Florida and Senior Trial Attorney Banumathi Rangarajan of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.

MIL Security OSI –

February 21, 2025
MIL-OSI Security: Former Baltimore Department Of Finance Employee Sentenced To Four Years In Connection With Bribery And Covid-19 Cares Act Scheme

Source: Office of United States Attorneys

Baltimore Department of Finance employee took more than $250,000 in bribes and obtained more than $143,000 in fraudulent COVID-19 relief benefits

Baltimore, Maryland – U.S. District Judge Richard D. Bennett, today, sentenced Joseph Gillespie, age 35, of Baltimore City, Maryland, to four years in federal prison and three years of supervised release in connection with a bribery scheme and conspiracy to commit wire fraud scheme involving COVID-19 CARES Act relief benefits.

Phil Selden, Acting United States Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI), Baltimore Field Office.

“Defendant Gillespie abused the public trust through a bribery scheme and took advantage of money meant to help during the COVID-19 pandemic,” stated Acting United States Attorney Selden. “When government employees take bribes and public funds, it harms the very communities they are meant to serve. The District of Maryland U.S. Attorney’s Office will relentlessly pursue those who try to compromise the public trust.”

“Gillespie’s extensive schemes and lies ultimately cost hardworking taxpayers. Instead of performing his job with honesty, he looked for illicit ways to line his own pockets. This sentence proves that corruption never pays,” said FBI Baltimore SAC William J. DelBagno. “The FBI and our partners remain committed to holding accountable those who try to cheat the system for their own benefit and profit.”

According to Gillespie’s plea agreement, beginning in 2016, and continuing to 2023, the Defendant engaged in a bribery scheme in which he abused his position of trust as a public official within the Baltimore City Department of Finance for his own personal gain.

As an employee of the Baltimore City Department of Finance, Revenue Collections Department, Gillespie routinely accepted bribes from various property owners in Baltimore City (“the City”) whose property was subject to certain financial obligations, and if the obligations remained unpaid, to a tax sale. He accepted these bribes — typically 10-15 percent of the amount owed to the City — in exchange for removing or extinguishing these financial obligations, including for citations, tax obligations, and water obligations – thereby causing losses to the City. Gillespie also accepted bribes in exchange for delaying or postponing — without approval or permission from other City officials — due dates for the payment of outstanding financial obligations, fines, and payments owed to the City, thus forestalling the placement of a lien on the property by the City.

Once Gillespie received the bribe payment, he would extinguish the financial obligation owed to the City by marking the obligations as paid in the City’s online records. After removing the obligation, the Defendant would, at times, send a photograph of a cashier slip from his office reflecting that a payment was made towards a financial obligation owed to the City when, in fact, no such payment was made.

Gillespie engaged in multiple covertly recorded telephone and video conversations with an FBI undercover agent (UC), in which the Defendant and the UC discussed the specifics of the bribery scheme outlined above.

For example, in a recorded phone conversation with the UC, the UC confirmed the size of the bribe payment with the Defendant: “[S]o you want 100 for each property?” Defendant said, “yeah that’s basically how I do.” Gillespie then informed the UC that he (Gillespie) had a “girl” in “water”— i.e., the Baltimore City Department of Public Works — that could “wipe some s*** out,” referring to financial obligations owed to the City.

During a covert video recording of the conversation with the UC, Gillespie told the UC that he had the ability to “wipe a bill off” the City’s record of outstanding obligations tied to a particular property or to “put paid next to ‘em,” even though the financial obligation had not in fact been paid. The Defendant further stated that he removed certain financial obligations linked to the properties that the UC told the Defendant were his, stating “[t]here was a couple, extra miscellaneous bills that y’all had that I wiped off . . . . That s*** gone now.”

Gillespie also extended the deadline for payment of financial obligations owed to the City on eight properties by three months. Gillespie asked for $800 in bribes in return — $100 for each of the eight properties, and, during the recorded meeting, the UC provided Gillespie $800 cash. Gillespie also stated that he had the ability to wipe out overdue water bills owed to the City, “Once I let you know [about a big water bill], I’ll give it to my girl, and I’ll tell you what you need to give me for her to knock it off.” Gillespie then stated:

“Going forward, I’m just your inside man . . . That’s what I do for a lot of different people around the City. You know what I mean – manage their s*** for them a little bit. . . . I’m gonna go look at your s***. Anyone with a high water bill I’m gonna text you the address, and I’m gonna tell you what I need, and we can knock them out going forward with that . . . . Any water bill that’s too high, I’ll get my girl to take care of that.”

Gillespie’s bribery scheme continued for years thereafter, and he admitted that he enlisted the help of multiple co-conspirators in connection with his scheme. According to the plea agreement, Gillespie received more than $250,000 in connection with the bribery scheme and caused losses to the City in excess of $1,250,000.

Further, Gillespie also engaged in a scheme to fraudulent COVID-19 CARES relief funds. Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (PPP), administered through the United States Small Business Administration (SBA).

For example, in 2021, Gillespie and co-defendant Ahmed (“Adam”) Sary submitted a fraudulent PPP loan application to Cross River Bank to obtain a PPP loan for JAG Investments (“JAG”), a company the Defendant owned. The PPP loan application contained numerous material misrepresentations, including that JAG, in 2019, had 19 employees and an average monthly payroll of more than $55,000. In support of the loan application, a fabricated 2019 Internal Revenue Service (“IRS”) Form 940 – Employer’s Annual Federal Unemployment Tax Return – was submitted, which falsely stated that JAG’s total payments to employees, in 2019, was more than $275,000.

Based on the false representations and fraudulent submissions made on behalf of Gillespie as the owner of JAG, the PPP loan was funded on March 6, 2021, and approximately $138,000 was distributed to a bank account controlled by Gillespie. Gillespie agreed to pay Sary kickbacks totaling $38,000 for his work in submitting the false application and obtaining the fraudulent PPP loan. In addition, after receipt of the PPP loan, Gillespie established payroll services for JAG to facilitate documentation that would later be used to substantiate a request for the PPP loan to be forgiven.

The District of Maryland COVID-19 Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

For more information about the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Acting United States Attorney Phil Selden commended the FBI for their work in the investigation, the Small Business Administration’s Office of Inspector General and the Baltimore City Inspector General for assistance as well. Mr. Selden thanked Assistant U.S. Attorneys Paul A. Riley and Evelyn L. Cusson who are prosecuting the federal case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

# # #

MIL Security OSI –

February 21, 2025
MIL-OSI Security: Sacramento Man Charged With Multimillion-Dollar Bank Fraud and Pandemic Loan Fraud Scheme

Source: Office of United States Attorneys

SACRAMENTO, Calif. — A federal grand jury returned a seven-count indictment last week against Akash Kumar Singh, 48, of Sacramento, charging him with four counts of bank fraud and three counts of money laundering, Acting U.S. Attorney Michele Beckwith announced. The indictment was unsealed following Singh’s arrest today.

According to court documents, Singh fraudulently obtained more than $3 million in Paycheck Protection Program loan funds intended to help small businesses maintain payroll and operations during the COVID-19 pandemic. Singh obtained at least two PPP loans for a Sacramento software development company he purported to lead called Kryptoblocks. Singh falsely claimed that Kryptoblocks generated millions of dollars in revenue and paid millions of dollars in employee wages in 2019 and 2020. In reality, Kryptoblocks generated little to no revenues and employed no individuals in the United States during this time.

This case is the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.

If convicted, Singh faces a maximum statutory penalty of 30 years in prison and a fine of $1 million or of twice the amount of criminally derived property involved in each money laundering count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.

MIL Security OSI –

February 21, 2025
MIL-OSI USA: Bloomberg Tax: Warren Demands Watchdog Probe of Musk Team’s Treasury Access

US Senate News:

Source: United States Senator for Massachusetts – Elizabeth Warren
February 07, 2025
Democrats led by Senate Banking Committee ranking member Elizabeth Warren (D-Mass.) called on Treasury and IRS watchdogs to probe federal payment system access granted to tech billionaire Elon Musk or his surrogates.
Treasury has faced the ire of Democrats in both the House and Senate, and face lawsuits accusing the agency and newly confirmed Secretary Scott Bessent of breaking federal laws by providing access. Conflicting responses from Treasury and President Donald Trump about what happened is leading to more confusion. “
Senators Warren, Wyden, and Reed each wrote to Secretary Bessent days ago seeking information about the facts underlying these disturbing reports. The Department of the Treasury’s (Department) response raised more questions than it answered,” Warren wrote in the letter.
Bessent told Bloomberg News Thursday that Musk’s team had read-only access to federal payment data and denied any “tinkering.”
Democrats in the House raised alarms this week that access could mean Musk and his team improperly reviewed confidential taxpayer information.
…
Read the full article here.
By: Chris CioffiSource: Bloomberg Tax
Previous Article

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: Kaine Files Amendments to Republican Budget Resolution

US Senate News:

Source: United States Senator for Virginia Tim Kaine
WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA), a member of the Senate Budget Committee, filed amendments to the Senate Republicans’ budget resolution in an attempt to improve the bill, which currently tees up tax cuts for billionaires by cutting critical funding for programs that Virginians rely on. Republicans are using a legislative process known as “reconciliation,” which allows certain legislation to be expedited and passed in the Senate by a simple majority, avoiding the 60-vote threshold needed for most other legislation. The Senate will begin consideration of the budget resolution later today.
“I’d like to focus on cutting taxes for the middle-class. Unfortunately, Republicans disagree. Instead, they are coming after your Medicaid and Medicare benefits, your health care, education programs, and other critical funding that Virginians rely on so that they can tee up their tax cuts for billionaires. I’m filing several amendments to safeguard Virginians from President Trump’s proposed tariffs, which would raise costs; protect federal employees who provide essential services to millions of Americans; prevent cuts in funding for community health centers and national security programs; and more. I will be pushing to get votes on my amendments and will do everything I can to stop Republicans from passing policies that hurt Virginians and our economy and make us less safe,” Kaine said.
Kaine filed a series of amendments, including:
To cut taxes for middle-class Americans.
To protect Americans from new, senseless taxes by preventing abuse of emergency authorities to launch trade wars with Canada and Mexico.
To prevent cuts to federal funding for air traffic safety.
To prevent the Department of Veterans’ Affairs from reducing its workforce below levels needed to staff and provide services at new or remodeled facilities.
To prohibit funding for agency efforts to reclassify federal employees in the civil service outside of any schedule not currently in the competitive service.
To prevent federal agencies and departments from terminating, rescheduling, or furloughing federal workers who are also veterans.
To prevent federal employees in harm’s way overseas from losing critical protections.
To protect Federal Bureau of Investigation (FBI) agents and federal prosecutors from political retribution.
To deny access to classified materials to anyone without a proper security clearance.
To protect Virginians who receive health insurance coverage through Medicaid expansion.
To protect rural hospitals from cuts that would threaten rural communities’ access to health care.
To protect access to health care services provided by Federally Qualified Health Centers.
To ensure working families are able to access affordable and high-quality child care.
To prevent a reduction of programs that support high-quality teacher and school leader preparation.
To protect seniors and people with disabilities who use long-term services and supports.
To prevent reductions in staff at the Mine Safety and Health Administration, who ensure miners do not get hurt or die on the job.
To undo the harm that the January federal funding freeze did to Head Start programs.
To protect the Pell Grant program from facing cuts or changes to the program that will hurt low- and middle-income students most.
To prohibit termination of national security programming implemented by the U.S. Agency for International Development (USAID).
To prohibit termination of foreign assistance contracts with U.S. farmers or with faith-based organizations.
To prohibit funding for a new Middle East war in Gaza or appeasement of Russia in Ukraine.
To prevent cuts to the Public Service Loan Forgiveness program.
To prevent cuts to voluntary conservation agriculture programs.
To ensure that much-needed funding comes to Virginia to repair federally maintained trails—such as the Virginia Creeper Trail—impacted by natural disasters in 2024.
To prohibit any efforts to privatize or defund the United States Postal Service.
Kaine has spoken out against Republicans’ proposal on the Senate floor and during a Senate Budget Committee markup.
President Donald Trump and Republicans in Congress are currently negotiating an extension to Trump’s 2017 tax law, which cut taxes for large corporations and the highest-income earners and substantially increased the federal deficit. They are now proposing broad-based tariffs and massive, across-the-board cuts to federal programs like Medicaid to fund these tax cuts for billionaires. Tax estimates have shown that if fully enacted, Trump’s tariffs could raise costs by $2,500 to nearly $4,000 per household, and American consumers could lose between $46 billion to $78 billion in spending power each year.

MIL OSI USA News –

February 21, 2025
MIL-OSI: LanzaTech Announces Date for Fourth Quarter and Full-Year 2024 Earnings Release and Conference Call

Source: GlobeNewswire (MIL-OSI)

CHICAGO, Feb. 20, 2025 (GLOBE NEWSWIRE) — LanzaTech Global, Inc. (NASDAQ: LNZA) (“LanzaTech” or the “Company”), a carbon management company providing a differentiated syngas-to-ethanol solution, today announced that it will issue its fourth quarter and full-year 2024 financial results before financial markets in the United States open on Monday, March 17, 2025. A conference call will be held that same day at 8:30 a.m. Eastern Time.

The conference call may be accessed via a live webcast on a listen-only basis through the Events and Presentations section of LanzaTech’s Investor Relations website. An archive of the webcast will be available for twelve months.

To attend the live conference call via telephone, domestic callers can access by dialing (800) 225-9448 and international callers can access by dialing (203) 518-9708, and using the conference identification code LANZA.

A replay of the conference call will be available shortly after the call ends and can be accessed by domestic callers by dialing (844)-512-2921 and by international callers by dialing (412)-317-6671, and entering the access identification code 11157950. The replay will be available until 11:59 pm Eastern Time March 31, 2025.

About LanzaTech
LanzaTech Global, Inc. (NASDAQ: LNZA) is the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, materials, and protein for everyday products. Using its bio-recycling technology, LanzaTech captures carbon generated by energy-intensive industries at the source, preventing it from being emitted into the air. LanzaTech then gives that captured carbon a new life as a clean replacement for virgin fossil carbon in everything from household cleaners and clothing fibers to packaging and fuels. By partnering with companies across the global supply chain like ArcelorMittal, Coty, Craghoppers, and LanzaJet, LanzaTech is paving the way for a circular carbon economy. For more information about LanzaTech, visit https://lanzatech.com.

Contacts

Investor Relations
Kate Walsh
VP, Investor Relations & Tax
Investor.Relations@lanzatech.com

The MIL Network –

February 21, 2025
MIL-OSI USA: News 02/20/2025 Blackburn, Cortez Masto Introduce Bill to Protect Taxpayers from Penalties Caused by IRS Delays

US Senate News:

Source: United States Senator Marsha Blackburn (R-Tenn)
WASHINGTON, D.C. – Today, U.S. Senators Marsha Blackburn (R-Tenn.) and Catherine Cortez Masto (D-Nev.) introduced the Tax Administration Simplification Act to provide straightforward, taxpayer-focused improvements to streamline tax filing and payment for individuals and small businesses:
“Taxpayers shouldn’t be penalized when the IRS is delayed in processing their tax returns even though they submitted them on time,” said Senator Blackburn. “Our Tax Administration Simplification Act would shield taxpayers from unfair penalties, streamline tax filing, and provide more flexibility for small businesses.”
“Small businesses in Nevada are busy enough as it is without having to worry about unfair IRS penalties and burdensome red tape,” said Senator Cortez Masto. “This bipartisan legislation would save time for the hard-working small business owners that are growing our economy and creating jobs in Nevada.”
TAX ADMINISTRATION SIMPLIFICATION ACT
The Tax Administration Simplification Act aims to reduce filing burdens and make tax compliance more intuitive by:
Protecting taxpayers from penalties due to Internal Revenue Service (IRS) delays in electronic filing – Under current law, even if taxpayers submit documents on the due date, they may be considered late unless submitted physically. The bill would extend the existing “mailbox rule” to electronically submitted documents, ensuring they are considered timely based on the date submitted, regardless of potential IRS processing delays. The correction would protect taxpayers from penalties and potential audits stemming from processing lags that are beyond their control.
Simplifying S-Corp elections for small businesses – Many small business owners miss out on the tax benefits of “S-Corp” status because the current election deadline precedes the deadline for filing their first income tax return. The bill would allow business owners to make an S-Corp election on their first timely filed tax return, providing greater flexibility and reducing unnecessary penalties.
Standardizing estimated tax deadlines – The bill would also address the confusing, irregular schedule for estimated tax payments, which currently requires payments at inconsistent intervals throughout the year. By moving to evenly spaced quarterly deadlines, the bill would simplify planning and help taxpayers more easily manage and project their income for accurate tax reporting.
Click here for bill text.

MIL OSI USA News –

February 21, 2025

MIL-OSI: Altair Announces Fourth Quarter and Full Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

TROY, Mich., Feb. 20, 2025 (GLOBE NEWSWIRE) — Altair (Nasdaq: ALTR), a global leader in computational intelligence, today released its financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

Software revenue was $179.4 million compared to $155.9 million for the fourth quarter of 2023, an increase of 15.0% in reported currency and 16.5% in constant currency
Total revenue was $192.6 million compared to $171.5 million for the fourth quarter of 2023, an increase of 12.3% in reported currency and 13.8% in constant currency
Net income was $1.0 million compared to $19.7 million for the fourth quarter of 2023, a decrease in earnings of $18.7 million. Net income per share, diluted was $0.01 based on 89.3 million diluted weighted average common shares outstanding, compared to net income per share, diluted of $0.22 for the fourth quarter of 2023, based on 89.0 million diluted weighted average common shares outstanding. Net income margin was 0.5% compared to net income margin of 11.5% for the fourth quarter of 2023
Non-GAAP net income was $47.4 million, compared to non-GAAP net income of $41.1 million for the fourth quarter of 2023, an increase of $6.3 million. Non-GAAP net income per share, diluted was $0.52 based on 92.6 million non-GAAP diluted common shares outstanding, compared to non-GAAP net income per share, diluted of $0.47 for the fourth quarter of 2023, based on 89.0 million non-GAAP diluted common shares outstanding
Adjusted EBITDA was $61.0 million compared to $53.6 million for the fourth quarter of 2023, an increase of 13.9%. Adjusted EBITDA margin was 31.7% compared to 31.2% for the fourth quarter of 2023
Cash provided by operating activities was $37.5 million, compared to $21.7 million for the fourth quarter of 2023
Free cash flow was $33.2 million, compared to $19.3 million for the fourth quarter of 2023.

Full Year 2024 Financial Highlights

Software revenue was $611.9 million compared to $550.0 million for the full year of 2023, an increase of 11.3% in reported currency and 12.5% in constant currency
Total revenue was $665.8 million compared to $612.7 million for the full year of 2023, an increase of 8.7% in reported currency and 9.8% in constant currency
Net income was $14.2 million compared to a net loss of $(8.9) million for the full year of 2023, an improvement in earnings of $23.1 million. Net income per share, diluted was $0.16 based on 88.6 million diluted weighted average common shares outstanding, compared to net loss per share, diluted of $(0.11) for the full year of 2023, based on 80.6 million diluted weighted average common shares outstanding. Net income margin was 2.1% compared to net loss margin of -1.5% for the full year of 2023
Non-GAAP net income was $119.6 million, compared to non-GAAP net income of $98.8 million for the full year of 2023, an increase of $20.8 million. Non-GAAP net income per share, diluted was $1.35 based on 91.8 million non-GAAP diluted common shares outstanding, compared to non-GAAP net income per share, diluted of $1.17 for the full year of 2023, based on 84.4 million non-GAAP diluted common shares outstanding
Adjusted EBITDA was $149.9 million compared to $129.1 million for the full year of 2023, an increase of 16.1%, Adjusted EBITDA margin was 22.5% compared to 21.1% for the full year of 2023
Cash provided by operating activities was $154.1 million, compared to $127.3 million for the full year of 2023
Free cash flow was $140.0 million, compared to $117.1 million for the full year of 2023.

Pending Transaction with Siemens and Conference Call Information

On January 22, 2025, Altair’s stockholders approved the previously announced merger agreement providing for the acquisition of Altair by Siemens Industry Software Inc. (“Siemens”). Completion of the pending transaction remains subject to certain customary closing conditions. Altair now anticipates that this transaction may close in the first half of 2025. In light of the pending transaction with Siemens, Altair is suspending quarterly financial results conference calls and its quarterly and annual guidance.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: Non-GAAP Net Income, Non-GAAP Net Income Per Share, Billings, Adjusted EBITDA, Free Cash Flow, Non-GAAP Gross Profit and Non-GAAP Operating Expense.

Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, asset impairment charges, non-cash interest expense, other special items as identified by management and described elsewhere in this press release, and the impact of non-GAAP tax rate to income tax expense, which approximates our tax rate excluding discrete items and other specific events that can fluctuate from period to period.

Non-GAAP diluted common shares is calculated using the treasury stock method to calculate the effect of dilutive securities, stock options, restricted stock units and employee stock purchase plan shares and using the if-converted method to calculate the effect of convertible instruments. This is the same methodology that is used when calculating GAAP diluted shares. However, the determination of whether the shares are dilutive or antidilutive is made independently on a GAAP and non-GAAP net income (loss) basis and therefore the number of diluted shares outstanding for GAAP and non-GAAP may be different.

Billings consists of total revenue plus the change in deferred revenue, excluding deferred revenue from acquisitions.

Adjusted EBITDA represents net income adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, asset impairment charges and other special items as identified by management and described elsewhere in this press release.

Free cash flow consists of cash flow from operations less capital expenditures.

Non-GAAP gross profit represents gross profit adjusted for stock-based compensation expense and other special items as identified by management and described elsewhere in this press release.

Non-GAAP operating expense represents operating expense excluding stock-based compensation expense, amortization, asset impairment charges and other special items as identified by management and described elsewhere in this press release.

Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.

About Altair

Altair is a global leader in computational intelligence that provides software and cloud solutions in simulation, high-performance computing, data analytics and AI. Altair enables organizations across all industries to compete more effectively and drive smarter decisions in an increasingly connected world – all while creating a greener, more sustainable future. To learn more, please visit https://www.altair.com.

Forward-Looking Statements

This communication contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. Any statements contained in this communication that are not statements of historical fact, including statements regarding the proposed transaction, including the expected timing and closing of the proposed transaction; Altair’s ability to consummate the proposed transaction; the expected benefits of the proposed transaction and other considerations taken into account by the Altair Board of Directors in approving the proposed transaction; the amounts to be received by stockholders and expectations for Altair prior to and following the closing of the proposed transaction, may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management’s current expectations for the future of Altair based on current expectations and assumptions relating to Altair’s business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning in connection with the discussion of future performance, plans, actions or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) the timing to consummate the pending merger transaction with Siemens Industry Software Inc. (the “Merger”), (ii) the risk that a condition of closing of the pending Merger transaction may not be satisfied or that the closing of the proposed transaction might otherwise not occur, (iii) the risk that a regulatory approval that may be required for the pending Merger transaction is not obtained or is obtained subject to conditions that are not anticipated, (iv) the diversion of management time on transaction-related issues, (v) risks related to disruption of management time from ongoing business operations due to the pending Merger transaction, (vi) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of Altair, (vii) the risk that the pending Merger transaction and its announcement could have an adverse effect on the ability of Altair to retain customers and retain and hire key personnel and maintain relationships with its suppliers and customers, (viii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, dated October 30, 2024, with Siemens Industry Software Inc. (the “Merger Agreement”), (ix) business uncertainties and contractual restrictions on our operations while the proposed Merger transaction is pending, (x) unexpected costs, charges or expenses resulting from the pending Merger transaction, (xi) potential litigation relating to the pending Merger transaction that could be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto, (xii) worldwide economic or political changes that affect the markets that Altair’s businesses serve which could have an effect on demand for Altair’s products and impact Altair’s profitability, and (xiii) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, including tariffs and trade restrictions, cyber-security vulnerabilities, foreign currency volatility, swings in consumer confidence and spending, raw material pricing and supply issues, retention of key employees, increases in fuel prices, and outcomes of legal proceedings, claims and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in Altair’s filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A – Risk Factors of Altair’s Annual Report on Form 10-K for the year ended December 31, 2024 and in Altair’s other filings with the SEC. The list of factors is not intended to be exhaustive. These forward-looking statements speak only as of the date of this communication, and Altair does not assume any obligation to update or revise any forward-looking statement made in this communication or that may from time to time be made by or on behalf of Altair.

Media Relations
Altair
Jennifer Ristic
216-849-3109
jristic@altair.com

Investor Relations
Altair
Stephen Palmtag
669-328-9111
spalmtag@altair.com

ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)

	December 31,
(in thousands)	2024			2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	561,898		$	467,459
Accounts receivable, net		173,509			190,461
Income tax receivable		21,513			16,650
Prepaid expenses and other current assets		28,058			26,053
Total current assets		784,978			700,623
Property and equipment, net		41,008			39,803
Operating lease right of use assets		31,117			30,759
Goodwill		462,459			458,125
Other intangible assets, net		72,937			83,550
Deferred tax assets		8,770			9,955
Other long-term assets		44,378			40,678
TOTAL ASSETS	$	1,445,647		$	1,363,493
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	7,316		$	8,995
Accrued compensation and benefits		50,328			45,081
Current portion of operating lease liabilities		7,876			8,825
Other accrued expenses and current liabilities		56,058			48,398
Deferred revenue		139,085			131,356
Current portion of convertible senior notes, net		227,106			81,455
Total current liabilities		487,769			324,110
Convertible senior notes, net		—			225,929
Operating lease liabilities, net of current portion		24,141			22,625
Deferred revenue, non-current		28,531			32,347
Other long-term liabilities		48,017			47,151
TOTAL LIABILITIES		588,458			652,162
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued or outstanding		—			—
Common stock ($0.0001 par value)
Class A common stock, authorized 513,797 shares, issued and outstanding 60,181 and 55,240 shares as of December 31, 2024 and 2023, respectively		6			5
Class B common stock, authorized 41,203 shares, issued and outstanding 25,394 and 26,814 shares as of December 31, 2024 and 2023, respectively		3			3
Additional paid-in capital		1,010,789			864,135
Accumulated deficit		(116,328	)		(130,503	)
Accumulated other comprehensive loss		(37,281	)		(22,309	)
TOTAL STOCKHOLDERS’ EQUITY		857,189			711,331
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,445,647		$	1,363,493

ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
(in thousands, except per share data)	2024			2023			2024			2023
Revenue
License	$	131,943		$	113,172		$	435,288		$	393,144
Maintenance and other services		47,433			42,761			176,612			156,830
Total software		179,376			155,933			611,900			549,974
Engineering services and other		13,255			15,570			53,888			62,727
Total revenue		192,631			171,503			665,788			612,701
Cost of revenue
License		4,662			3,200			15,099			15,088
Maintenance and other services		17,604			14,340			64,014			56,094
Total software *		22,266			17,540			79,113			71,182
Engineering services and other		11,113			11,633			45,690			50,609
Total cost of revenue		33,379			29,173			124,803			121,791
Gross profit		159,252			142,330			540,985			490,910
Operating expenses:
Research and development *		57,147			52,519			221,161			212,645
Sales and marketing *		47,812			43,595			184,280			176,138
General and administrative *		35,595			17,096			90,150			70,887
Amortization of intangible assets		8,709			7,708			33,022			30,851
Other operating (income) expense, net		(976	)		(1,178	)		(5,313	)		146
Total operating expenses		148,287			119,740			523,300			490,667
Operating income		10,965			22,590			17,685			243
Interest expense		1,339			1,533			5,836			6,116
Other income, net		(316	)		(8,794	)		(20,781	)		(18,492	)
Income before income taxes		9,942			29,851			32,630			12,619
Income tax expense		8,946			10,176			18,455			21,545
Net income (loss)	$	996		$	19,675		$	14,175		$	(8,926	)
Earnings (loss) per share, basic
Earnings (loss) per share	$	0.01		$	0.24		$	0.17		$	(0.11	)
Weighted average shares		85,289			81,760			84,085			80,596
Earnings (loss) per share, diluted
Earnings (loss) per share	$	0.01		$	0.22		$	0.16		$	(0.11	)
Weighted average shares		89,346			88,977			88,558			80,596

* Amounts include stock-based compensation expense as follows (in thousands):

	(Unaudited)
	Three Months Ended December 31,				Year Ended December 31,
(in thousands)	2024		2023		2024		2023
Cost of revenue – software	$	2,167	$	2,303	$	8,397	$	10,095
Research and development		6,274		7,332		25,630		33,842
Sales and marketing		4,784		6,271		19,459		28,376
General and administrative		3,745		3,252		14,194		13,268
Total stock-based compensation expense	$	16,970	$	19,158	$	67,680	$	85,581

ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)

	Year Ended December 31,
(in thousands)	2024			2023			2022
OPERATING ACTIVITIES:
Net income (loss)	$	14,175		$	(8,926	)	$	(43,429	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		42,164			39,124			35,504
Stock-based compensation expense		67,680			85,581			84,787
Deferred income taxes		(707	)		(2,319	)		(4,164	)
Loss (gain) on mark-to-market adjustment of contingent consideration		476			5,706			(7,153	)
Expense on repurchase of convertible senior notes		—			—			16,621
Other, net		2,015			1,943			2,179
Changes in assets and liabilities:
Accounts receivable		14,560			(19,141	)		(34,175	)
Prepaid expenses and other current assets		(7,622	)		(1,915	)		1,014
Other long-term assets		2,431			(52	)		2,852
Accounts payable		(2,127	)		(1,878	)		3,771
Accrued compensation and benefits		7,013			1,783			280
Other accrued expenses and current liabilities		7,791			9,068			(59,463	)
Deferred revenue		6,235			18,333			40,946
Net cash provided by operating activities		154,084			127,307			39,570
INVESTING ACTIVITIES:
Payments for acquisition of businesses, net of cash acquired		(27,070	)		(3,236	)		(134,541	)
Capital expenditures		(14,086	)		(10,193	)		(9,648	)
Other investing activities, net		(4,974	)		(2,423	)		(10,322	)
Net cash used in investing activities		(46,130	)		(15,852	)		(154,511	)
FINANCING ACTIVITIES:
Settlement of convertible senior notes		(81,729	)		—			—
Proceeds from the exercise of common stock options		65,537			36,140			3,577
Proceeds from employee stock purchase plan contributions		9,157			7,978			8,976
Payments for repurchase and retirement of common stock		—			(6,255	)		(19,659	)
Proceeds from issuance of convertible senior notes, net of underwriters’ discounts and commissions		—			—			224,265
Repurchase of convertible senior notes		—			—			(192,422	)
Payments for issuance costs of convertible senior notes		—			—			(1,523	)
Other financing activities		—			(97	)		(233	)
Net cash (used in) provided by financing activities		(7,035	)		37,766			22,981
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(6,453	)		1,397			(5,094	)
Net increase (decrease) in cash, cash equivalents and restricted cash		94,466			150,618			(97,054	)
Cash, cash equivalents and restricted cash at beginning of year		467,576			316,958			414,012
Cash, cash equivalents and restricted cash at end of period	$	562,042		$	467,576		$	316,958

Change in Presentation of Revenue and Cost of Revenue

Effective in the first quarter of 2024, the Company changed the presentation of revenue and cost of revenue in its Consolidated Statements of Operations to combine the financial statement line items (“FSLIs”) labeled “Software related services”, “Client engineering services” and “Other” into one FSLI labeled “Engineering services and other”. The change in presentation has been applied retrospectively and does not affect the software revenue, total revenue, software cost of revenue or total cost of revenue amounts previously reported or have any effect on segment reporting.

Financial Results

The following table provides a reconciliation of Non-GAAP net income and Non-GAAP net income per share – diluted, to net income (loss) and net income (loss) per share – diluted, the most comparable GAAP financial measures:

		(Unaudited)
		Three Months Ended December 31,						Year Ended December 31,
(in thousands, except per share amounts)		2024			2023			2024			2023
Net income (loss)		$	996		$	19,675		$	14,175		$	(8,926	)
Stock-based compensation expense			16,970			19,158			67,680			85,581
Amortization of intangible assets			8,709			7,708			33,022			30,851
Non-cash interest expense			310			470			1,514			1,869
Impact of non-GAAP tax rate⁽¹⁾			(6,842	)		(4,261	)		(21,406	)		(13,158	)
Special adjustments and other⁽²⁾			27,219			(1,659	)		24,597			2,553
Non-GAAP net income		$	47,362		$	41,091		$	119,582		$	98,770

Net income (loss) per share, diluted		$	0.01		$	0.22		$	0.16		$	(0.11	)
Non-GAAP net income per share, diluted		$	0.52		$	0.47		$	1.35		$	1.17

GAAP diluted shares outstanding:			89,346			88,977			88,558			80,596
Non-GAAP diluted shares outstanding:			92,555			88,977			91,767			84,433

(1)	For the three months and year ended December 31, 2024, the Company used a non-GAAP effective tax rate of 25%. For the three months and year ended December 31, 2023, the Company used a non-GAAP effective tax rate of 26%.
(2)	The three months ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $4.7 million of currency losses on acquisition-related intercompany loans and a $0.3 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions. The three months ended December 31, 2023, includes $2.9 million of currency gains on acquisition-related intercompany loans and a $1.2 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions. The year ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $1.9 million of currency losses on acquisition-related intercompany loans and a $0.5 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions. The year ended December 31, 2023, includes a $5.7 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions and $3.2 million of currency gains on acquisition-related intercompany loans.

The following table provides a reconciliation of Adjusted EBITDA to net income (loss), the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended December 31,					Year Ended December 31,
(in thousands)	2024		2023			2024		2023
Net income (loss)	$	996	$	19,675		$	14,175	$	(8,926	)
Income tax expense		8,946		10,176			18,455		21,545
Stock-based compensation expense		16,970		19,158			67,680		85,581
Interest expense		1,339		1,533			5,836		6,116
Depreciation and amortization		11,044		9,853			42,164		39,124
Special adjustments, interest income and other⁽¹⁾		21,746		(6,822	)		1,602		(14,302	)
Adjusted EBITDA	$	61,041	$	53,573		$	149,912	$	129,138

(1)

The three months ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $4.7 million of currency losses on acquisition-related intercompany loans, a $0.3 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, and $5.5 million of interest income. The three months ended December 31, 2023, includes $2.9 million of currency gains on acquisition-related intercompany loans, a $1.2 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, and $5.2 million of interest income. The year ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $1.9 million of currency losses on acquisition-related intercompany loans, a $0.5 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, and $23.0 million of interest income. The year ended December 31, 2023, includes a $5.7 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, $3.2 million of currency gains on acquisition-related intercompany loans, and $16.9 million of interest income.

The following table provides a reconciliation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended December 31,						Year Ended December 31,
(in thousands)	2024 ⁽¹⁾			2023			2024			2023
Net cash provided by operating activities	$	37,530		$	21,651		$	154,084		$	127,307
Capital expenditures		(4,347	)		(2,311	)		(14,086	)		(10,193	)
Free Cash Flow	$	33,183		$	19,340		$	139,998		$	117,114

(1)	Free Cash Flow for the year ended December 31, 2024, was adversely impacted by approximately $13.2 million of expenses paid related to the pending Merger transaction.

The following table provides a reconciliation of Non-GAAP gross profit to gross profit, the most comparable GAAP financial measure, and a comparison of Non-GAAP gross margin (Non-GAAP gross profit as a percentage of total revenue) to gross margin (gross profit as a percentage of total revenue), the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended December 31,						Year Ended December 31,
(in thousands)	2024			2023			2024			2023
Gross profit	$	159,252		$	142,330		$	540,985		$	490,910
Stock-based compensation expense		2,167			2,303			8,397			10,095
Pending merger expenses		1,155			—			1,155			—
Non-GAAP gross profit	$	162,574		$	144,633		$	550,537		$	501,005

Gross profit margin		82.7	%		83.0	%		81.3	%		80.1	%
Non-GAAP gross margin		84.4	%		84.3	%		82.7	%		81.8	%

The following table provides a reconciliation of Non-GAAP operating expense to Total operating expense, the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended December 31,						Year Ended December 31,
(in thousands)	2024			2023			2024			2023
Total operating expense	$	148,287		$	119,740		$	523,300		$	490,667
Stock-based compensation expense		(14,803	)		(16,855	)		(59,283	)		(75,486	)
Amortization		(8,709	)		(7,708	)		(33,022	)		(30,851	)
Loss on mark-to-market adjustment of contingent consideration		(287	)		(1,212	)		(476	)		(5,706	)
Pending merger expenses		(21,095	)		—			(21,095	)		—
Non-GAAP operating expense	$	103,393		$	93,965		$	409,424		$	378,624

The following table provides the calculation of non-GAAP diluted common shares and non-GAAP net income per share, diluted:

	(Unaudited)
	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Numerator:
Non-GAAP net income	$	47,362	$	41,091	$	119,582	$	98,770
Interest expense related to convertible notes, net of tax		1,006		1,006		4,024		—
Numerator for non-GAAP diluted income per share	$	48,368	$	42,097	$	123,606	$	98,770
Denominator:
Weighted average shares outstanding, basic		85,289		81,760		84,085		80,596
Effect of dilutive shares		7,266		7,217		7,682		3,837
Non-GAAP diluted shares outstanding		92,555		88,977		91,767		84,433
Non-GAAP net income per share, diluted	$	0.52	$	0.47	$	1.35	$	1.17

The following table provides a reconciliation of Billings to revenue, the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended December 31,						Year Ended December 31,
(in thousands)	2024			2023			2024			2023
Revenue	$	192,631		$	171,503		$	665,788		$	612,701
Ending deferred revenue		167,616			163,703			167,616			163,703
Beginning deferred revenue		(140,835	)		(138,933	)		(163,703	)		(144,460	)
Deferred revenue acquired		—			(149	)		(1,825	)		(149	)
Billings	$	219,412		$	196,124		$	667,876		$	631,795

The following table provides Software revenue, Total revenue, Billings and Adjusted EBITDA on a constant currency basis:

	(Unaudited)
	Three Months Ended December 31, 2024						Three Months Ended December 31, 2023		Increase/ (Decrease) %
(in thousands)	As reported		Currency changes		As adjusted for constant currency		As reported		As reported			As adjusted for constant currency
Software revenue	$	179.4	$	2.3	$	181.7	$	155.9		15.0	%		16.5	%
Total revenue	$	192.6	$	2.6	$	195.2	$	171.5		12.3	%		13.8	%
Billings	$	219.4	$	3.6	$	223.0	$	196.1		11.9	%		13.7	%
Adjusted EBITDA	$	61.0	$	1.3	$	62.3	$	53.6		13.9	%		16.2	%


	(Unaudited)
	Year Ended December 31, 2024						Year Ended December 31, 2023		Increase/ (Decrease) %
(in thousands)	As reported		Currency changes		As adjusted for constant currency		As reported		As reported			As adjusted for constant currency
Software revenue	$	611.9	$	6.8	$	618.7	$	550.0		11.3	%		12.5	%
Total revenue	$	665.8	$	7.2	$	673.0	$	612.7		8.7	%		9.8	%
Billings	$	667.9	$	8.1	$	676.0	$	631.8		5.7	%		7.0	%
Adjusted EBITDA	$	149.9	$	4.6	$	154.5	$	129.1		16.1	%		19.7	%

The MIL Network –

February 21, 2025

MIL-OSI: Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

ANDOVER, Mass., Feb. 20, 2025 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter and year ended December 31, 2024. These results will be discussed later today at 5:00 p.m. Eastern Time, during management’s quarterly investor conference call. The details for the call are below.

Revenues for the fourth quarter ended December 31, 2024 totaled $96.2 million, a 3.8% increase from $92.7 million for the corresponding period a year ago, and a 3.2% sequential increase from $93.2 million in the third quarter of 2024.

Gross margin increased to $50.4 million for the fourth quarter of 2024, compared to $47.3 million for the corresponding period a year ago and increased from $45.7 million for the third quarter of 2024. Gross margin, as a percentage of revenue, increased to 52.4% for the fourth quarter of 2024, compared to 51.1% for the corresponding period a year ago and 49.1% for the third quarter of 2024. Operating expenses increased to $41.2 million for the fourth quarter of 2024, compared to $40.0 million for the corresponding period a year ago, and increased sequentially from $40.4 million for the third quarter of 2024.

Net income for the fourth quarter was $10.2 million, or $0.23 per diluted share, compared to net income of $8.7 million or $0.19 per diluted share, for the corresponding period a year ago and net income of $11.6 million, or $0.26 per diluted share, for the third quarter of 2024.

Cash flow from operations totaled $10.1 million for the fourth quarter, compared to cash flow from operations of $21.5 million for the corresponding period a year ago, and cash flow from operations of $22.6 million in the third quarter of 2024. Capital expenditures for the fourth quarter totaled $1.7 million, compared to $7.2 million for the corresponding period a year ago and $8.5 million for the third quarter of 2024. Cash and cash equivalents as of December 31, 2024 increased 3.6% sequentially to approximately $277.3 million compared to approximately $267.6 million as of September 30, 2024.

Backlog for the fourth quarter ended December 31, 2024 totaled $155.5 million, a 3.3% decrease from $160.8 million for the corresponding period a year ago, and 3.3% sequential increase from $150.6 million at the end of the third quarter of 2024.

Revenues for the year ended December 31, 2024 decreased 11.4% to $359.1 million, from $405.1 million for the prior year. Gross margin, as a percentage of revenue, increased to 51.2% for the year ended December 31, 2024, compared to 50.6% for the prior year. Net income for 2024 was $6.1 million, or $0.14 per diluted share and 1.7% of revenues, compared to $53.6 million, or $1.19 per diluted share and 13.2% of revenue in the prior year. Cash flows from operations totaled $50.8 million for the year ended December 31, 2024, a 31.8% decrease from cash flows from operations of $74.5 million for the prior year.

Commenting on fourth quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Revenues and gross margins improved. Further margin improvements depend upon higher utilization of our ChiP fab and increased licensing income. These revenue and income streams are synergistic as our standard license provides royalty discounts commensurate to the Licensee’s annual purchases of Vicor modules. Licensing has been gaining traction with companies whose computing hardware is increasingly dependent on high density power system solutions pioneered and patented by Vicor, including NBMs. Avoiding infringement is the ethical choice, but hyper-scalers also want to avoid the risk of their computing hardware being excluded from importation into the United States. Patent infringement has severe consequences.”

“Perfecting our 2^nd generation, high density VPD for leading AI applications has taken longer than expected, with the fab out of a new ASIC raising the bar on the density and bandwidth of our current multipliers. 2^nd generation VPD will enable AI processors to set new standards for performance and power system efficiency. We are focused on completing development of a high density VPD system for a lead customer ahead of providing demo systems to processor chip companies and hyper-scalers.”

For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com.

Earnings Conference Call

Vicor will be holding its investor conference call today, Thursday, February 20, 2025 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 5:00 p.m. on February 20, 2025. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor’s website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor’s website.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and, the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “assumes,” “may,” “will,” “would,” “should,” “continue,” “prospective,” “project,” and other similar expressions identify forward-looking statements. Forward-looking statements also include statements regarding bookings, shipments, revenue, profitability, targeted markets, increase in manufacturing capacity and utilization thereof, future products and capital resources. These statements are based upon management’s current expectations and estimates as to the prospective events and circumstances that may or may not be within the company’s control and as to which there can be no assurance. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors, including those economic, business, operational and financial considerations set forth in Vicor’s Annual Report on Form 10-K for the year ended December 31, 2023, under Part I, Item I — “Business,” under Part I, Item 1A — “Risk Factors,” under Part I, Item 3 — “Legal Proceedings,” and under Part II, Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The risk factors set forth in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in the Annual Report on Form 10-K should be read together with other reports and documents filed with the Securities and Exchange Commission from time to time, including Forms 10-Q, 8-K and 10-K, which may supplement, modify, supersede or update those risk factors. Vicor does not undertake any obligation to update any forward-looking statements as a result of future events or developments.

Vicor Corporation designs, develops, manufactures, and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, and aerospace and defense electronics.

For further information contact:

James F. Schmidt, Chief Financial Officer
Office: (978) 470-2900
Email: invrel@vicorpower.com

VICOR CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Thousands except for per share amounts)

QUARTER ENDED

YEAR ENDED

(Unaudited)

DEC 31,

2024

2023

2024

2023

Product revenue

80,392

85,524

312,463

389,187

Royalty revenue

15,774

7,128

46,595

15,872

Net revenues

96,166

92,652

359,058

405,059

Cost of product revenues

45,806

45,308

175,060

200,130

Gross margin

50,360

47,344

183,998

204,929

Operating expenses:

Selling, general and administrative

24,171

22,694

96,886

85,714

Research and development

16,984

17,301

68,922

67,857

Litigation-contingency expense

–

19,500

–

Total operating expenses

41,155

39,995

185,308

153,571

Income (loss) from operations

9,205

7,349

(1,310

)

51,358

Other income (expense), net

2,553

3,243

11,797

8,886

Income before income taxes

11,758

10,592

10,487

60,244

Less: Provision for income taxes

1,516

1,928

4,348

6,644

Consolidated net income

10,242

8,664

6,139

53,600

Less: Net (loss) income attributable to

noncontrolling interest

)

Net income attributable to

Vicor Corporation

10,246

8,668

6,129

53,595

Net income per share attributable

to Vicor Corporation:

Basic

0.23

0.19

0.14

1.21

Diluted

0.23

0.19

0.14

1.19

Shares outstanding:

Basic

45,161

44,455

44,912

44,320

Diluted

45,296

45,017

45,168

45,004

VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)


	DEC 31,			DEC 31,
		2024			2023
	(Unaudited)			(Unaudited)
Assets

Current assets:
Cash and cash equivalents	$	277,273		$	242,219
Accounts receivable, net		52,948			52,631
Inventories		106,032			106,579
Other current assets		26,781			18,937
Total current assets		463,034			420,366

Long-term deferred tax assets		261			296
Long-term investment, net		2,641			2,530
Property, plant and equipment, net		152,705			157,689
Other assets		22,477			14,006

Total assets	$	641,118		$	594,887

Liabilities and Equity

Current liabilities:
Accounts payable	$	8,737		$	12,100
Accrued compensation and benefits		10,852			11,227
Accrued expenses		6,589			5,093
Accrued litigation		26,888			6,500
Sales allowances		1,667			3,482
Short-term lease liabilities		1,716			1,864
Income taxes payable		59			746
Short-term deferred revenue and customer prepayments		5,312			3,157

Total current liabilities		61,820			44,169

Long-term deferred revenue		–			1,020
Long-term income taxes payable		3,387			2,228
Long-term lease liabilities		5,620			6,364
Total liabilities		70,827			53,781

Equity:
Vicor Corporation stockholders’ equity:
Capital stock		408,187			384,395
Retained earnings		302,803			296,674
Accumulated other comprehensive loss		(1,495	)		(1,273	)
Treasury stock		(139,424	)		(138,927	)
Total Vicor Corporation stockholders’ equity		570,071			540,869
Noncontrolling interest		220			237
Total equity		570,291			541,106

Total liabilities and equity	$	641,118		$	594,887

The MIL Network –

February 21, 2025

MIL-OSI: CarGurus Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Q4’24 Marketplace revenue grew 15% YoY

Q4’24 International revenue grew 26% YoY and OEM Advertising revenue grew double-digit YoY

Q4’24 Consolidated GAAP Net Income of $45.9 million; Q4’24 Non-GAAP Consolidated Adjusted EBITDA of $76.4 million, up 25% YoY

BOSTON, Feb. 20, 2025 (GLOBE NEWSWIRE) — CarGurus, Inc. (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles*, today announced financial results for the fourth quarter and year ended December 31, 2024.

“We delivered exceptional results in 2024, with sustained revenue acceleration and significant margin expansion across geographies. Our Marketplace business achieved double-digit growth, driven by continued migration to premium tiers, strong OEM advertising demand, and growing adoption of our value-added products and services,” said Jason Trevisan, Chief Executive Officer at CarGurus. “Our relentless focus on product innovation and our ability to enhance dealers’ ROI throughout their workflow resulted in higher engagement and increased wallet share as dealers consolidate their investment with the highest-yielding online marketplaces. Looking ahead to 2025, we are excited about the opportunity to further consolidate our leadership position, leveraging our data-driven actionable insights and our unique ability to deliver dealer-specific competitive intelligence.”

Fourth Quarter and Full Year Financial Highlights

	Three Months Ended						Year Ended
	December 31, 2024						December 31, 2024
	Results (in millions)			Variance from Prior Year			Results (in millions)			Variance from Prior Year
Revenue
Marketplace Revenue	$	210.2			15	%	$	796.6			14	%
Wholesale Revenue		9.9			(55	)%		51.2			(49	)%
Product Revenue		8.5			(55	)%		46.6			(60	)%
Total Revenue	$	228.5			2	%	$	894.4			(2	)%

Gross Profit ⁽¹⁾	$	199.0			18	%	$	738.9			13	%
% Margin		87	%	1,176 bps				83	%	1,136 bps

Operating Expenses ⁽²⁾	$	145.7			(23	)%	$	725.5			17	%

GAAP Consolidated Net Income ⁽³⁾	$	45.9		NM⁽⁵⁾			$	21.0			(5	)%
% Margin		20	%	NM⁽⁵⁾				2	%	(7) bps

Non-GAAP Consolidated Adjusted EBITDA ⁽⁴⁾	$	76.4			25	%	$	247.2			26	%
% Margin ⁽⁴⁾		33	%	602 bps				28	%	623 bps

Cash, Cash Equivalents, and Short-Term Investments	$	304.2			(3	)%	$	304.2			(3	)%

_{^{(1) During the three months ended December 31, 2024, no impairment was recorded. During the year ended December 31, 2024, we recorded a $9.9 million impairment-related charge in cost of revenue.}}
_{^{(2) During the three months ended December 31, 2024, no impairment was recorded. During the year ended December 31, 2024, we recorded a $134.5 million impairment-related charge in operating expenses.}}
_{^{(3) During the three months ended December 31, 2024, no impairment was recorded. During the year ended December 31, 2024, we recorded a $144.4 million impairment-related charge.}}
^{₍₄₎ _{For more information regarding our use of non-GAAP Consolidated Adjusted EBITDA and other non-GAAP financial measures, please see the reconciliations of GAAP financial measures to non-GAAP financial measures and the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.}}
^{₍₅₎ _{Not meaningful.}}

	Three Months Ended						Year Ended
	December 31, 2024						December 31, 2024
	Results			Variance from Prior Year			Results			Variance from Prior Year
Key Performance Indicators ⁽¹⁾
U.S. Paying Dealers ⁽²⁾		24,692			2	%		24,692			2	%
International Paying Dealers ⁽²⁾		7,318			11	%		7,318			11	%
Total Paying Dealers ⁽²⁾		32,010			3	%		32,010			3	%

U.S. QARSD ⁽²⁾	$	7,337			12	%	$	7,337			12	%
International QARSD ⁽²⁾	$	2,072			17	%	$	2,072			17	%
Consolidated QARSD ⁽²⁾	$	6,144			12	%	$	6,144			12	%

Transactions		7,066			(48	)%		34,395			(47	)%

U.S. Average Monthly Unique Users (in millions) ⁽³⁾		29.3		N/A⁽⁵⁾			N/A⁽⁵⁾			N/A⁽⁵⁾
U.S. Average Monthly Sessions (in millions) ⁽³⁾		74.6		N/A⁽⁵⁾			N/A⁽⁵⁾			N/A⁽⁵⁾

International Average Monthly Unique Users (in millions) ⁽³⁾		9.1		N/A⁽⁵⁾			N/A⁽⁵⁾			N/A⁽⁵⁾
International Average Monthly Sessions (in millions) ⁽³⁾		19.2		N/A⁽⁵⁾			N/A⁽⁵⁾			N/A⁽⁵⁾

Segment Reporting *(in millions)*
U.S. Marketplace Segment Revenue	$	193.4			15	%	$	733.7			13	%
U.S. Marketplace Segment Operating Income	$	56.1			30	%	$	182.7			43	%
Digital Wholesale Segment Revenue	$	18.3			(55	)%	$	97.8			(55	)%
Digital Wholesale Segment Operating Loss ⁽⁴⁾	$	(5.5	)	NM⁽⁶⁾			$	(179.3	)	NM⁽⁶⁾

_{^{(1) For more information regarding our use of Key Performance Indicators, please see the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.}}
_{^{(2) Metrics presented as of December 31, 2024.}}
_{^{(3) CarOffer website is excluded from the metrics presented for users and sessions.}}
_{^{(4) During the three months ended December 31, 2024, no impairment was recorded. During the year ended December 31, 2024, we recorded a $144.4 million impairment-related charge.}}
_{^{(5) As a result of the change from Google Universal Analytics (“Google Analytics”) to Google Analytics 4 (“GA4”) on July 1, 2024, we are unable to provide comparable monthly unique users or monthly sessions information for this period. For more information regarding the change in methodology for monthly unique users or monthly sessions, please see the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.}}
_{^{(6) Not meaningful.}}

First Quarter 2025 Guidance

The table below provides CarGurus’ guidance, which is based on recent market trends, industry conditions, and management’s expectations and assumptions as of today.

	Guidance Metrics	Range
	Total revenue	$216 million to $236 million
	Marketplace revenue	$209 million to $214 million
	Non-GAAP Consolidated Adjusted EBITDA	$60 million to $68 million
	Non-GAAP EPS	$0.41 to $0.47

The first quarter 2025 non-GAAP EPS calculation assumes 107.0 million diluted weighted-average common shares outstanding.

The assumptions that are built into guidance for the first quarter 2025 regarding our pace of paid dealer acquisition, churn, and expansion activity for the relevant period are based on recent market trends and industry conditions. Guidance for the first quarter 2025 excludes macro-level industry issues that result in dealers and consumers materially changing their recent market trends or that cause us to enact measures to assist dealers. Guidance also excludes any potential impact of future foreign currency exchange gains or losses.

CarGurus has not reconciled its guidance of non-GAAP consolidated adjusted EBITDA to GAAP consolidated net income or non-GAAP EPS to GAAP EPS because reconciling items between such GAAP and non-GAAP financial measures, which include, as applicable, stock-based compensation, amortization of intangible assets, impairment, depreciation expenses, non-intangible amortization, transaction-related expenses, other income, net, the provision for income taxes, and income tax effects, cannot be reasonably predicted due to, as applicable, the timing, amount, valuation, and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, and therefore cannot be determined without unreasonable effort.

Conference Call and Webcast Information

CarGurus will host a conference call and live webcast to discuss its fourth quarter and full year 2024 financial results and business outlook at 5:00 p.m. Eastern Time today, February 20, 2025. To access the conference call, dial (877) 451-6152 for callers in the U.S. or Canada, or (201) 389-0879 for international callers. The webcast will be available live on the Investors section of CarGurus’ website at https://investors.cargurus.com.

An audio replay of the call will also be available to investors beginning at approximately 8:00 p.m. Eastern Time today, February 20, 2025, until 11:59 p.m. Eastern Time on March 6, 2025, by dialing (844) 512-2921 for callers in the U.S. or Canada, or (412) 317-6671 for international callers, and entering passcode 13750508. In addition, an archived webcast will be available on the Investors section of CarGurus’ website at https://investors.cargurus.com.

About CarGurus

CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer online wholesale platform. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in person, and it gives dealerships the power to accurately price, effectively market, instantly acquire, and quickly sell vehicles, all with a nationwide reach. The Company uses proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S.*

CarGurus also operates online marketplaces under the CarGurus brand in Canada and the U.K. In the U.S. and the U.K., CarGurus also operates the Autolist and PistonHeads online marketplaces, respectively, as independent brands.

To learn more about CarGurus, visit www.cargurus.com, and for more information about CarOffer, visit www.caroffer.com.

*Source: Similarweb, Traffic Report (Cars.com, Autotrader, TrueCar, CARFAX Listings
(defined as CARFAX Total visits minus Vehicle History Reports traffic), Q4 2024, U.S.

CarGurus^® and Autolist^® are each a registered trademark of CarGurus, Inc., and CarOffer^® is a registered trademark of CarOffer, LLC. PistonHeads^® is a registered trademark of CarGurus Ireland Limited in the United Kingdom and the European Union. All other product names, trademarks, and registered trademarks are property of their respective owners.

Cautionary Language Concerning Forward-Looking Statements

This press release includes forward-looking statements. Other than statements of historical facts, all statements contained in this press release, including statements regarding our future financial and operating results; our first quarter 2025 financial and business performance, including guidance; our business and growth strategy and our plans to execute on our growth strategy; our ability to grow our business profitably and efficiently; our capital allocation and investment strategy; the attractiveness and value proposition of our current offerings and other product opportunities; our ability to maintain existing and acquire new customers; addressable opportunities; our expectation that we will continue to invest in growth initiatives; our ability to quickly make transformations necessary for our business to achieve long-term goals; and the impact of macro-level issues on our industry, business, and financial results, are forward-looking statements. The words “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “guide,” “guidance,” “intend,” “may,” “might,” “plan,” “potential,” “predicts,” “projects,” “seeks,” “should,” “strive,” “target,” “will,” “would,” and similar expressions and their negatives are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. You should not rely upon forward-looking statements as predictions of future events.

These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those reflected in such statements, including risks related to our growth and our ability to grow our revenue; our relationships with dealers; competition in the markets in which we operate; market growth; our ability to innovate; our ability to realize benefits from our acquisitions and successfully implement the integration strategies in connection therewith; impairment of the carrying value of our goodwill, intangible assets, right-of-use assets, or other assets; increased inflation and interest rates, global supply chain challenges, and other macroeconomic issues; changes in our key personnel; natural disasters, epidemics, or pandemics; and our ability to operate in compliance with applicable laws as well as other risks and uncertainties as may be detailed from time to time in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and other reports we file with the U.S. Securities and Exchange Commission. Moreover, we operate in very competitive and rapidly changing environments. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, we cannot guarantee that future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. We are under no duty to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Investor Contact:
Kirndeep Singh
Vice President, Head of Investor Relations
investors@cargurus.com

Media Contact:
Maggie Meluzio
Director, Public Relations and External Communications
pr@cargurus.com

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

	As of December 31,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	304,193		$	291,363
Short-term investments		—			20,724
Accounts receivable, net of allowance for doubtful accounts of $788 and $610, respectively		44,248			39,963
Inventory		338			331
Prepaid expenses, prepaid income taxes and other current assets		27,868			25,152
Deferred contract costs		12,523			11,095
Restricted cash		2,036			2,563
Total current assets		391,206			391,191
Property and equipment, net		130,010			83,370
Intangible assets, net		11,767			23,056
Goodwill		46,167			157,898
Operating lease right-of-use assets		121,484			169,682
Deferred tax assets		106,672			73,356
Deferred contract costs, net of current portion		13,196			12,998
Other non-current assets		4,034			7,376
Total assets	$	824,536		$	918,927
Liabilities, redeemable noncontrolling interest and stockholders’ equity
Current liabilities:
Accounts payable	$	26,410		$	47,854
Accrued expenses, accrued income taxes and other current liabilities		35,975			33,718
Deferred revenue		21,661			21,322
Operating lease liabilities		9,005			12,284
Total current liabilities		93,051			115,178
Operating lease liabilities		183,739			182,106
Deferred tax liabilities		26			58
Other non–current liabilities		6,031			4,733
Total liabilities		282,847			302,075
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 10,000,000 shares authorized; no shares issued and outstanding		—			—
Class A common stock, $0.001 par value per share; 500,000,000 shares authorized; 89,002,571 and 92,175,243 shares issued and outstanding at December 31, 2024 and 2023, respectively		89			92
Class B common stock, $0.001 par value per share; 100,000,000 shares authorized; 14,986,745 and 15,999,173 shares issued and outstanding at December 31, 2024 and 2023, respectively		15			16
Additional paid–in capital		169,013			263,498
Retained earnings		375,119			354,147
Accumulated other comprehensive loss		(2,547	)		(901	)
Total stockholders’ equity		541,689			616,852
Total liabilities, redeemable noncontrolling interest and stockholders’ equity	$	824,536		$	918,927

Unaudited Condensed Consolidated Income Statements
(in thousands, except share and per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
Revenue
Marketplace	$	210,194		$	182,250		$	796,599		$	698,236
Wholesale		9,850			22,035			51,201			100,908
Product		8,494			18,838			46,584			115,098
Total revenue		228,538			223,123			894,384			914,242
Cost of revenue⁽¹⁾
Marketplace		13,899			14,190			54,950			60,020
Wholesale⁽²⁾		7,068			22,286			54,340			90,066
Product		8,582			18,612			46,149			112,702
Total cost of revenue		29,549			55,088			155,439			262,788
Gross profit		198,989			168,035			738,945			651,454
Operating expenses:
Sales and marketing		76,448			73,827			322,249			304,070
Product, technology, and development		35,948			36,737			144,432			146,169
General and administrative		28,384			75,667			112,066			152,757
Impairment		—			—			134,501			—
Depreciation and amortization		4,931			4,069			12,285			15,831
Total operating expenses		145,711			190,300			725,533			618,827
Income (loss) from operations		53,278			(22,265	)		13,412			32,627
Other income, net:
Interest income		3,126			5,093			12,189			18,430
Other (expense) income, net		(1,066	)		782			(944	)		630
Total other income, net		2,060			5,875			11,245			19,060
Income (loss) before income taxes		55,338			(16,390	)		24,657			51,687
Provision for income taxes		9,457			6,213			3,685			29,634
Consolidated net income (loss)		45,881			(22,603	)		20,972			22,053
Net loss attributable to redeemable noncontrolling interest		—			(4,698	)		—			(14,889	)
Net income (loss) attributable to CarGurus, Inc.	$	45,881		$	(17,905	)	$	20,972		$	36,942
Deemed dividend on redemption of noncontrolling interest		—			5,838			—			5,838
Net income (loss) attributable to common stockholders	$	45,881		$	(23,743	)	$	20,972		$	31,104
Net income (loss) per share attributable to common stockholders:
Basic	$	0.44		$	(0.21	)	$	0.20		$	0.27
Diluted	$	0.43		$	(0.21	)	$	0.20		$	0.19
Weighted–average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders:
Basic		103,838,821			110,988,515			104,535,572			113,240,139
Diluted		106,116,888			110,988,515			106,263,886			114,188,834

_{^{(1) For the three months ended December 31, 2024 and 2023 and for the years ended December 31, 2024 and 2023, there was depreciation and amortization of $2,107, $8,692, $13,075, and $32,643, respectively, in cost of revenue.}}
_{^{(2) For the three months ended December 31, 2024 and 2023, no impairment was recorded in cost of revenue. For the years ended December 31, 2024 and 2023, we recorded impairment of $9,930 and $184, respectively in cost of revenue.}}

Unaudited Segment Revenue
(in thousands)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
Segment Revenue:
U.S. Marketplace	$	193,395	$	168,897	$	733,688	$	647,284
Digital Wholesale		18,344		40,872		97,785		216,005
Other		16,799		13,354		62,911		50,953
Total	$	228,538	$	223,123	$	894,384	$	914,242

Unaudited Segment Income (Loss) from Operations
(in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
Segment Income (Loss) from Operations:
U.S. Marketplace	$	56,068		$	43,281		$	182,738		$	127,724
Digital Wholesale		(5,500	)		(67,199	)		(179,315	)		(96,383	)
Other		2,710			1,653			9,989			1,286
Total	$	53,278		$	(22,265	)	$	13,412		$	32,627

Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
Operating Activities
Consolidated net income (loss)	$	45,881		$	(22,603	)	$	20,972		$	22,053
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:
Depreciation and amortization		7,038			12,761			25,360			48,474
Gain on sale of property and equipment		—			—			—			(460	)
Currency loss (gain) on foreign denominated transactions		1,205			(532	)		971			(283	)
Other non-cash (income) expense, net		—			(80	)		(816	)		88
Deferred taxes		13,996			(5,735	)		(33,348	)		(37,864	)
Provision for doubtful accounts		517			131			2,051			378
Stock-based compensation expense		15,658			19,968			62,272			63,737
Amortization of deferred financing costs		128			128			515			515
Amortization of deferred contract costs		3,734			3,188			13,975			11,817
Impairment		—			—			144,431			184
Changes in operating assets and liabilities:
Accounts receivable		527			10,638			(4,866	)		10,975
Inventory		(261	)		(3,001	)		(112	)		1,958
Prepaid expenses, prepaid income taxes, and other assets		(8,720	)		(7,525	)		(1,627	)		(1,498	)
Deferred contract costs		(4,394	)		(4,752	)		(15,701	)		(18,440	)
Accounts payable		(15,433	)		903			(4,663	)		2,080
Accrued expenses, accrued income taxes, and other liabilities		6,465			(4,435	)		3,897			(3,419	)
Deferred revenue		(193	)		270			362			9,067
Lease obligations		9,589			3,172			41,821			15,165
Net cash provided by operating activities		75,737			2,496			255,494			124,527
Investing Activities
Purchases of property and equipment		(10,236	)		(15,515	)		(75,173	)		(24,563	)
Proceeds from sale of property and equipment		—			—			—			460
Capitalization of website development costs		(3,462	)		(4,875	)		(18,776	)		(16,648	)
Purchases of short-term investments		—			(1,268	)		(494	)		(98,016	)
Sale of short-term investments		—			72,462			21,218			77,462
Advance payments to customers, net of collections		—			2,649			259			(259	)
Net cash (used in) provided by investing activities		(13,698	)		53,453			(72,966	)		(61,564	)
Financing Activities
Proceeds from issuance of common stock upon exercise of stock options		4,848			—			4,923			74
Payment of withholding taxes on net share settlements of restricted stock units		(7,500	)		(3,859	)		(24,891	)		(15,597	)
Repurchases of common stock		—			(101,115	)		(146,180	)		(208,524	)
Payment of excise taxes on repurchases of common stock		(1,584	)		—			(1,584	)		—
Payment of finance lease obligations		(19	)		(18	)		(75	)		(70	)
Payment of tax distributions to redeemable noncontrolling interest holders		—			—			—			(38	)
Acquisition of remaining interest in CarOffer, LLC		—			(25,014	)		—			(25,014	)
Change in gross advance payments received from third-party transaction processor		(118	)		48			(822	)		(4,475	)
Net cash used in financing activities		(4,373	)		(129,958	)		(168,629	)		(253,644	)
Impact of foreign currency on cash, cash equivalents, and restricted cash		(2,178	)		981			(1,596	)		475
Net increase (decrease) in cash, cash equivalents, and restricted cash		55,488			(73,028	)		12,303			(190,206	)
Cash, cash equivalents, and restricted cash at beginning of period		250,741			366,954			293,926			484,132
Cash, cash equivalents, and restricted cash at end of period	$	306,229		$	293,926		$	306,229		$	293,926

Unaudited Reconciliation of GAAP Consolidated Net Income (Loss) to Non-GAAP Consolidated Net Income and Non-GAAP Net Income Attributable to Common Stockholders and GAAP Net Income (Loss) Per Share Attributable to Common Stockholders to Non-GAAP Net Income Per Share Attributable to Common Stockholders:
(in thousands, except per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
GAAP consolidated net income (loss)	$	45,881		$	(22,603	)	$	20,972		$	22,053
Stock-based compensation expense		15,658			14,071			62,492			57,913
Stock-based compensation expense for CarOffer, LLC Units⁽¹⁾		—			55,543			—			55,543
Amortization of intangible assets		507			7,513			3,655			30,062
Impairment⁽²⁾		—			—			144,431			184
Transaction-related expenses		421			1,044			1,536			1,044
Income tax effects and adjustments		(3,767	)		(16,807	)		(49,798	)		(27,489	)
Non-GAAP consolidated net income	$	58,700		$	38,761		$	183,288		$	139,310
Non-GAAP net loss attributable to redeemable noncontrolling interest		—			(456	)		—			(1,686	)
Non-GAAP net income attributable to common stockholders	$	58,700		$	39,217		$	183,288		$	140,996
GAAP net income (loss) per share attributable to common stockholders:
Basic	$	0.44		$	(0.21	)	$	0.20		$	0.27
Diluted	$	0.43		$	(0.21	)	$	0.20		$	0.19
Non-GAAP net income per share attributable to common stockholders:
Basic	$	0.57		$	0.35		$	1.75		$	1.25
Diluted	$	0.55		$	0.35		$	1.72		$	1.23
Shares used in GAAP and Non-GAAP per share calculations
Basic		103,839			110,989			104,536			113,240
Diluted		106,117			110,989			106,264			114,189

_{^{(1) CarOffer, LLC Units consist of CO Incentive Units, Subject Units (each as defined in the Company’s Annual Report on Form 10-K as of December 31, 2024, filed with the U.S. Securities and Exchange Commission on February 20, 2025), and payments made to noncontrolling interest holders.}^{(2) During the three months ended June 30, 2024, we updated the table to disclose impairment in Non-GAAP Consolidated Net Income and Non-GAAP Net Income Attributable to Common Stockholders; the three months and year ended December 31, 2023 have been updated for comparison purposes.}}

Unaudited Reconciliation of GAAP Net Loss Attributable to Redeemable Noncontrolling Interest to Non-GAAP Net Loss Attributable to Redeemable Noncontrolling Interest
(in thousands)

	Three Months Ended					Year Ended
	December 31,					December 31,
	2024		2023			2024		2023
GAAP net loss attributable to redeemable noncontrolling interest	$	—	$	(4,698	)	$	—	$	(14,889	)
Stock-based compensation expense⁽¹⁾		—		144			—		783
Stock-based compensation expense for CarOffer, LLC Units ⁽¹⁾		—		2,249			—		2,249
Amortization of intangible assets⁽¹⁾		—		1,849			—		10,171
Non-GAAP net loss attributable to redeemable noncontrolling interest	$	—	$	(456	)	$	—	$	(1,686	)

_{^{(1) These exclusions are adjusted to reflect the noncontrolling interest of 38% for the period prior to our acquisition of the remaining minority equity interests in CarOffer, LLC in December 2023 (the “2023 CarOffer Transaction”).}}

Unaudited Reconciliation of GAAP Consolidated Net Income (Loss) to Non-GAAP Consolidated Adjusted EBITDA and Non-GAAP Adjusted EBITDA and GAAP Consolidated Net Income (Loss) Margin to Non-GAAP Consolidated Adjusted EBITDA Margin
(in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
GAAP consolidated net income (loss)	$	45,881		$	(22,603	)	$	20,972		$	22,053
Depreciation and amortization		7,038			12,761			25,360			48,474
Impairment		—			—			144,431			184
Stock-based compensation expense		15,658			14,071			62,492			57,913
Stock-based compensation expense for CarOffer, LLC Units		—			55,543			—			55,543
Transaction-related expenses		421			1,044			1,536			1,044
Other income, net		(2,060	)		(5,875	)		(11,245	)		(19,060	)
Provision for income taxes		9,457			6,213			3,685			29,634
Non-GAAP consolidated adjusted EBITDA		76,395			61,154			247,231			195,785
Non-GAAP adjusted EBITDA attributable to redeemable noncontrolling interest		—			(303	)		—			83
Non-GAAP adjusted EBITDA	$	76,395		$	61,457		$	247,231		$	195,702

GAAP consolidated net income (loss) margin		20	%		(10	)%		2	%		2	%
Non-GAAP consolidated adjusted EBITDA margin		33	%		27	%		28	%		21	%

Unaudited Reconciliation of GAAP Net Loss Attributable to Redeemable Noncontrolling Interest to Non-GAAP Adjusted EBITDA Attributable to Redeemable Noncontrolling Interest
(in thousands)

	Three Months Ended					Year Ended
	December 31,					December 31,
	2024		2023			2024		2023
GAAP net loss attributable to redeemable noncontrolling interest	$	—	$	(4,698	)	$	—	$	(14,889	)
Depreciation and amortization ⁽¹⁾		—		1,989			—		10,863
Impairment ⁽¹⁾		—		—			—		67
Stock-based compensation expense ⁽¹⁾		—		144			—		783
Stock-based compensation expense for CarOffer, LLC Units ⁽¹⁾		—		2,249			—		2,249
Other expense, net ⁽¹⁾		—		13			—		985
Provision for income taxes ⁽¹⁾		—		—			—		25
Adjusted EBITDA attributable to redeemable noncontrolling interest	$	—	$	(303	)	$	—	$	83

^{_{(1) These exclusions are adjusted to reflect the noncontrolling interest of 38% for the period prior to the 2023 CarOffer Transaction.}}

Unaudited Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and GAAP Gross Profit Margin to Non-GAAP Gross Profit Margin
(in thousands, except percentages)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
Revenue	$	228,538		$	223,123		$	894,384		$	914,242
Cost of revenue		29,549			55,088			155,439			262,788
GAAP gross profit		198,989			168,035			738,945			651,454
Stock-based compensation expense included in Cost of revenue		105			186			492			699
Stock-based compensation expense for CarOffer, LLC Units included in Cost of revenue		—			1,671			—			1,671
Amortization of intangible assets included in Cost of revenue		—			5,250			875			21,016
Transaction-related expenses included in Cost of revenue		—			—			92			—
Impairment included in Cost of revenue ⁽¹⁾		—			—			9,930			184
Non-GAAP gross profit	$	199,094		$	175,142		$	750,334		$	675,024

GAAP gross profit margin		87	%		75	%		83	%		71	%
Non-GAAP gross profit margin		87	%		78	%		84	%		74	%

_{^{(1) During the three months ended June 30, 2024, we updated the table to disclose impairment in Non-GAAP Gross Profit and Non-GAAP Gross Profit Margin; the three months and year ended December 31, 2023 have been updated for comparison purposes.}}

Unaudited Reconciliation of GAAP Expense to Non-GAAP Expense
(in thousands)

	Three Months Ended December 31, 2024
	GAAP expense		Stock-based compensation expense			Stock-Based compensation expense for CarOffer, LLC Units			Amortization of intangible assets			Impairment ⁽²⁾			Transaction-related expenses			Non-GAAP expense
Cost of revenue	$	29,549	$	(105	)	$	—		$	—		$	—		$	—		$	29,444
Sales and marketing		76,448		(3,035	)		—			—			—			(3	)		73,410
Product, technology, and development		35,948		(6,278	)		—			—			—			(283	)		29,387
General and administrative		28,384		(6,240	)		—			—			—			(135	)		22,009
Impairment		—		—			—			—			—			—			—
Depreciation & amortization		4,931		—			—			(507	)		—			—			4,424
Operating expenses⁽¹⁾	$	145,711	$	(15,553	)	$	—		$	(507	)	$	—		$	(421	)	$	129,230
Total cost of revenue and operating expenses	$	175,260	$	(15,658	)	$	—		$	(507	)	$	—		$	(421	)	$	158,674

	Three Months Ended December 31, 2023
	GAAP expense		Stock-based compensation expense			Stock-Based compensation expense for CarOffer, LLC Units			Amortization of intangible assets			Impairment ⁽²⁾			Transaction-related expenses			Non-GAAP expense
Cost of revenue	$	55,088	$	(186	)	$	(1,671	)	$	(5,250	)	$	—		$	—		$	47,981
Sales and marketing		73,827		(2,701	)		(2,273	)		—			—			(1	)		68,852
Product, technology, and development		36,737		(5,408	)		(2,458	)		—			—			(3	)		28,868
General and administrative		75,667		(5,776	)		(49,141	)		—			—			(1,040	)		19,710
Impairment		—		—			—			—			—			—			—
Depreciation & amortization		4,069		—			—			(2,263	)		—			—			1,806
Operating expenses⁽¹⁾	$	190,300	$	(13,885	)	$	(53,872	)	$	(2,263	)	$	—		$	(1,044	)	$	119,236
Total cost of revenue and operating expenses	$	245,388	$	(14,071	)	$	(55,543	)	$	(7,513	)	$	—		$	(1,044	)	$	167,217

	Year Ended December 31, 2024
	GAAP expense		Stock-based compensation expense			Stock-Based compensation expense for CarOffer, LLC Units			Amortization of intangible assets			Impairment ⁽²⁾			Transaction-related expenses			Non-GAAP expense
Cost of revenue	$	155,439	$	(492	)	$	—		$	(875	)	$	(9,930	)	$	(92	)	$	144,050
Sales and marketing		322,249		(12,176	)		—			—			—			(573	)		309,500
Product, technology, and development		144,432		(24,443	)		—			—			—			(346	)		119,643
General and administrative		112,066		(25,381	)		—			—			—			(525	)		86,160
Impairment		134,501		—			—			—			(134,501	)		—			—
Depreciation & amortization		12,285		—			—			(2,780	)		—			—			9,505
Operating expenses⁽¹⁾	$	725,533	$	(62,000	)	$	—		$	(2,780	)	$	(134,501	)	$	(1,444	)	$	524,808
Total cost of revenue and operating expenses	$	880,972	$	(62,492	)	$	—		$	(3,655	)	$	(144,431	)	$	(1,536	)	$	668,858

	Year Ended December 31, 2023
	GAAP expense		Stock-based compensation expense			Stock-Based compensation expense for CarOffer, LLC Units			Amortization of intangible assets			Impairment ⁽²⁾			Transaction-related expenses			Non-GAAP expense
Cost of revenue	$	262,788	$	(699	)	$	(1,671	)	$	(21,016	)	$	(184	)	$	—		$	239,218
Sales and marketing		304,070		(11,437	)		(2,273	)		—			—			(1	)		290,359
Product, technology, and development		146,169		(23,476	)		(2,458	)		—			—			(3	)		120,232
General and administrative		152,757		(22,301	)		(49,141	)		—			—			(1,040	)		80,275
Impairment		—		—			—			—			—			—			—
Depreciation & amortization		15,831		—			—			(9,046	)		—			—			6,785
Operating expenses⁽¹⁾	$	618,827	$	(57,214	)	$	(53,872	)	$	(9,046	)	$	—		$	(1,044	)	$	497,651
Total cost of revenue and operating expenses	$	881,615	$	(57,913	)	$	(55,543	)	$	(30,062	)	$	(184	)	$	(1,044	)	$	736,869

_{^{(1) Operating expenses include sales and marketing, product, technology, and development, general and administrative, impairment, and depreciation & amortization.}^{(2) During the three months ended June 30, 2024, we updated the table above to disclose impairment in Non-GAAP Expense; the three months and year ended December 31, 2023 have been updated for comparison purposes.}}

Unaudited Reconciliation of GAAP Net Cash and Cash Equivalents Provided by Operating Activities to Non-GAAP Free Cash Flow
(in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
GAAP net cash and cash equivalents provided by operating activities	$	75,737		$	2,496		$	255,494		$	124,527
Purchases of property and equipment		(10,236	)		(15,515	)		(75,173	)		(24,563	)
Capitalization of website development costs		(3,462	)		(4,875	)		(18,776	)		(16,648	)
Non-GAAP free cash flow	$	62,039		$	(17,894	)	$	161,545		$	83,316

Non-GAAP Financial Measures and Other Business Metrics

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”), we provide investors with certain non-GAAP financial measures and other business metrics, which we believe are helpful to our investors. We use these non-GAAP financial measures and other business metrics for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures and other business metrics provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.

The presentation of non-GAAP financial information and other business metrics is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. While our non-GAAP financial measures and other business metrics are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included above, and not to rely on any single financial measure to evaluate our business.

While a reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to, as applicable, the timing, amount, valuation, and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, we have provided a reconciliation of non-GAAP financial measures and other business metrics to the nearest comparable GAAP measures in the accompanying financial statement tables included in this press release.

We monitor operating measures of certain non-GAAP items including non-GAAP gross profit, non-GAAP gross margin, non-GAAP expense, non-GAAP consolidated net income, non-GAAP net income attributable to common stockholders, and non-GAAP net income per share attributable to common stockholders. These non-GAAP financial measures exclude the effect of stock-based compensation expense, stock-based compensation expense for CarOffer, LLC Units, amortization of intangible assets, impairments, and transaction related-expenses. Non-GAAP consolidated net income, non-GAAP net income attributable to common stockholders, and non-GAAP net income per share attributable to common stockholders also exclude certain income tax effects and adjustments. Non-GAAP net income attributable to common stockholders and non-GAAP net income per share attributable to common stockholders also exclude non-GAAP net loss attributable to redeemable noncontrolling interest. We define non-GAAP net loss attributable to redeemable noncontrolling interest as net loss attributable to redeemable noncontrolling interest, adjusted to exclude: stock-based compensation expense, stock-based compensation expense for CarOffer, LLC Units, and amortization of intangible assets. These exclusions are adjusted for redeemable noncontrolling interest, as applicable. Our calculations of non-GAAP net income per share attributable to common stockholders utilize applicable GAAP share counts as included in the accompanying financial statement tables included in this press release. In addition, we evaluate our non-GAAP gross profit in relation to our revenue. We refer to this as non-GAAP gross profit margin and define it as non-GAAP gross profit divided by total revenue. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.

We define Consolidated Adjusted EBITDA as consolidated net income (loss), adjusted to exclude: depreciation and amortization, impairments, stock-based compensation expense, stock-based compensation expense for CarOffer, LLC Units, transaction-related expenses, other income, net, and provision for income taxes.

We define Adjusted EBITDA as Consolidated Adjusted EBITDA adjusted to exclude: Adjusted EBITDA attributable to redeemable noncontrolling interest.

We define Adjusted EBITDA attributable to redeemable noncontrolling interest as net loss attributable to redeemable noncontrolling interest, adjusted to exclude: depreciation and amortization, impairments, stock-based compensation expense, stock-based compensation expense for CarOffer, LLC Units, other expense, net, and provision for income taxes. These exclusions are adjusted for redeemable noncontrolling interest of 38% by taking the noncontrolling interest’s full financial results and multiplying each line item in the reconciliation by 38%. We note that we use 38%, versus 49%, to allocate the share of loss because it represents the portion attributable to the redeemable noncontrolling interest. The 38% is exclusive of CO Incentive Units, Subject Units, and 2021 Incentive Units (as each term is defined in Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission on February 20, 2025), which are liability-classified awards that do not participate in the share of loss. Adjusted EBITDA attributable to redeemable noncontrolling interest is reflective of the 2023 CarOffer Transaction. Following the 2023 CarOffer Transaction there was no redeemable noncontrolling interest as of December 1, 2023, and as a result, Consolidated Adjusted EBITDA is equivalent to Adjusted EBITDA for the three months and year ended December 31, 2024.

In addition, we evaluate our Non-GAAP consolidated Adjusted EBITDA in relation to our revenue. We refer to this as Non-GAAP consolidated Adjusted EBITDA margin and define it as Non-GAAP consolidated Adjusted EBITDA divided by total revenue.

We have presented Consolidated Adjusted EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin because they are key measures used by our management and Board of Directors to understand and evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. We believe Consolidated Adjusted EBITDA and Adjusted EBITDA help identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude. Accordingly, we believe that Consolidated Adjusted EBITDA and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision making. We have presented Adjusted EBITDA attributable to redeemable noncontrolling interest because it is used by our management to reconcile Consolidated Adjusted EBITDA to Adjusted EBITDA. It represents the portion of Consolidated Adjusted EBITDA that is attributable to our redeemable noncontrolling interest and enables an investor to gain a clearer understanding of the portion of Consolidated Adjusted EBITDA that is attributable to our redeemable noncontrolling interest. Adjusted EBITDA attributable to redeemable noncontrolling interest is not intended to be reviewed on its own.

We define Free Cash Flow as cash flow from operations adjusted to include: purchases of property and equipment and capitalization of website development costs. We have presented Free Cash Flow because it is a measure of our financial performance that represents the cash that we are able to generate after expenditures required to maintain or expand our asset base.

We define a paying dealer as a dealer account with an active, paid marketplace subscription at the end of a defined period. The number of paying dealers we have is important to us and we believe it provides valuable information to investors because it is indicative of the value proposition of our marketplace products, as well as our sales and marketing success and opportunity, including our ability to retain paying dealers and develop new dealer relationships.

We define Quarterly Average Revenue per Subscribing Dealer (“QARSD”), which is measured at the end of a fiscal quarter, as the marketplace revenue primarily from subscriptions to our Listings packages and Real-time Performance Marketing, our digital advertising suite, and other digital add-on products during that trailing quarter divided by the average number of paying dealers in that marketplace during the quarter. We calculate the average number of paying dealers for a period by adding the number of paying dealers at the end of such period and the end of the prior period and dividing by two. This information is important to us, and we believe it provides useful information to investors, because we believe that our ability to grow QARSD is an indicator of the value proposition of our products and the return on investment that our paying dealers realize from our products. In addition, increases in QARSD, which we believe reflect the value of exposure to our engaged audience in relation to subscription cost, are driven in part by our ability to grow the volume of connections to our users and the quality of those connections, which result in increased opportunity to upsell package levels and cross-sell additional products to our paying dealers.

We define Transactions within the Digital Wholesale segment as the number of vehicles processed from car dealers, consumers, and other marketplaces through the CarOffer website within the defined period. Transactions consists of each unique vehicle (based on vehicle identification number) that reaches “sold and invoiced” status on the CarOffer website within the defined period, including vehicles sold to car dealers, vehicles sold at third-party auctions, vehicles ultimately sold to a different buyer, and vehicles that are returned to their owners without completion of a sale transaction. We exclude vehicles processed within CarOffer’s intra-group trading solution (Group Trade) from the definition of Transactions, and we only count any unique vehicle once even if it reaches sold status multiple times. The Digital Wholesale segment includes the purchase and sale of vehicles between dealers, or Dealer-to-Dealer transactions, and Sell My Car – Instant Max Cash Offer transactions. We view Transactions as a key business metric, and we believe it provides useful information to investors, because it provides insight into growth and revenue for the Digital Wholesale segment. Transactions drive a significant portion of Digital Wholesale segment revenue. We believe growth in Transactions demonstrates consumer and dealer utilization and our market share penetration in the Digital Wholesale segment.

Historically, we have used data from Google Analytics to measure two of our key business metrics: monthly unique users and monthly sessions. Effective July 1, 2024, GA4 replaced Google Analytics. The methodologies used in GA4 are different and not comparable to the methodologies used in Google Analytics. As discussed below, we also make certain adjustments to the GA4 data in order to improve the accuracy of the reported monthly unique users and monthly sessions. Due to the change in methodology, we are unable to provide comparable monthly unique user and monthly session information for prior periods, including any periods prior to June 30, 2024.

For each of our websites (excluding the CarOffer website), we define a monthly unique user as an individual who has visited any such website and taken a Visitor Action (as defined below) within a calendar month, based on data as measured by GA4. We calculate average monthly unique users as the sum of the monthly unique users of each of our websites in a defined period, divided by the number of months in that period. Effective July 1, 2024, we count a unique user the first time a computer or mobile device with a unique device identifier accesses any of our websites or application during a calendar month and takes an action on such website or in such application, such as performing a search, visiting vehicle detail pages, and connecting with a dealer, which we refer to as a Visitor Action. If an individual accesses a website or application using a different device within a given month, the first Visitor Action taken by each such device is counted as a separate unique user. If an individual uses multiple browsers on a single device and/or clears their cookies and returns to our website or application and takes a Visitor Action within a calendar month, each such Visitor Action is counted as a separate unique user. We eliminate any duplicate unique users that may arise when users visit a webview within our native application. We view our average monthly unique users as a key indicator of the quality of our user experience, the effectiveness of our advertising and traffic acquisition, and the strength of our brand awareness. Measuring unique users is important to us and we believe it provides useful information to our investors because our marketplace revenue depends, in part, on our ability to provide dealers with connections to our users and exposure to our marketplace audience. We define connections as interactions between consumers and dealers on our marketplace through phone calls, email, managed text and chat, and clicks to access the dealer’s website or map directions to the dealership.

We define monthly sessions as the number of distinct visits to our websites (excluding the CarOffer website) that include a Visitor Action that take place each month within a given time frame, as measured and defined by GA4. We calculate average monthly sessions as the sum of the monthly sessions in a defined period, divided by the number of months in that period. Effective July 1, 2024, a session is defined as beginning with the first Visitor Action from a computer or mobile device and ending at the earliest of when a user closes their browser window or after 30 minutes of inactivity. We eliminate any duplicate monthly sessions that may arise when users visit a webview within our native application. We believe that measuring the volume of sessions in a time period, when considered in conjunction with the number of unique users in that time period, is an important indicator to us of consumer satisfaction and engagement with our marketplace, and we believe it provides useful information to our investors because the more satisfied and engaged consumers we have, the more valuable our service is to dealers.

The MIL Network –

February 21, 2025

MIL-OSI: iRhythm Technologies Announces Fourth Quarter and Full Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

SAN FRANCISCO, Feb. 20, 2025 (GLOBE NEWSWIRE) — iRhythm Technologies, Inc. (NASDAQ: IRTC), a leading digital health care company focused on creating trusted solutions that detect, predict, and prevent disease, today reported financial results for the three months and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

Revenue of $164.3 million, a 24.0% increase compared to fourth quarter 2023
Gross margin of 70.0%, a 410-basis point increase compared to fourth quarter 2023
Net loss of $1.3 million, a $37.4 million improvement compared to fourth quarter 2023
Adjusted EBITDA of $19.3 million, a $16.9 million improvement compared to fourth quarter 2023
Cash, cash equivalents and marketable securities of $535.6 million at December 31, 2024, a $13.6 million increase from September 30, 2024

Full Year 2024 Financial Highlights

Revenue of $591.8 million, a 20.1% increase compared to full year 2023
Gross margin of 68.9%, a 160-basis point increase compared to full year 2023
Net loss of $113.3 million, a $10.1 million improvement compared to full year 2023
Adjusted EBITDA of $(7.7) million, a decline of $2.9 million compared to full year 2023

Recent Operational Highlights

Fourth quarter 2024 capped a year of progressively accelerating year-over-year volume growth every quarter, with full year 2024 revenue driven by sustained volume demand across all customer channels
Analysis of real-world claims data conducted by Eversana and presented at AHA in November 2024 suggested that early detection with arrhythmia monitoring devices could have the combined potential to help prevent serious outcomes like stroke and heart failure while also significantly reducing acute care utilization and related costs in patients with type 2 diabetes and chronic obstructive pulmonary disease
Upcoming data presentations at the American College of Cardiology’s Annual Scientific Session & Expo in Chicago, IL, from March 29 – 31, 2025

“Our fourth quarter capped a transformative year for iRhythm, marked by 24% revenue growth and significant operational achievements,” said Quentin Blackford, President and CEO of iRhythm. “We achieved record new account onboarding, with balanced volume contributions across multiple channels, particularly in risk-bearing, primary care settings where Zio’s value as a population health management tool has resonated strongly. Throughout 2024, we enhanced our quality systems, improved customer experience through EHR integration and innovative product launches, expanded into multiple international markets, and secured strategic technology licensing agreements to advance connected patient care. Our commitment to operational discipline has yielded positive cash flow for three consecutive quarters, while our extensive scientific publications have further validated our approach. Looking ahead, we remain focused on delivering a best-in-class quality system while creating shareholder value through our strategies of expanding our core U.S. market presence, accelerating international growth, advancing product innovation, and further advancing operational efficiencies. As we scale the Zio platform globally, we’re uniquely positioned to shape the future of healthcare while driving value for patients, physicians, health systems, and shareholders.”

Fourth Quarter 2024 Financial Results
Revenue for the three months ended December 31, 2024, increased 24.0% to $164.3 million, from $132.5 million during the same period in 2023. The increase was primarily attributable to increases in the volume of Zio Services resulting from increased demand, partially offset by a slight decline in average selling price.

Gross profit for the fourth quarter of 2024 was $115.1 million, up from $87.4 million during the same period in 2023, while gross margins were 70.0% as compared to 66.0% during the same period in 2023. The improvement in gross margin was primarily driven by operational efficiencies leading to lower costs per unit to serve a higher volume of patients compared to the prior year.

Operating expenses for the fourth quarter of 2024 were $119.2 million, compared to $126.6 million for the same period in 2023 and $151.8 million in the third quarter of 2024. The fourth quarter of 2023 included $11.1 million of higher operating expenses due to an impairment charge for our right-of-use capitalized leased asset value of our San Francisco office. The decrease in operating expenses compared to the third quarter 2024 was due primarily to a $32.1 million charge in the third quarter of 2024 for in-process research and development charges related to technology license consideration.

Net loss for the fourth quarter of 2024 was $1.3 million, or a diluted loss of $0.04 per share, compared with net loss of $38.7 million, or a diluted loss of $1.26 per share, for the same period in 2023.

Full Year 2024 Financial Results
Revenue for the year ended December 31, 2024, increased 20.1% to $591.8 million, from $492.7 million in 2023. The increase in revenue was primarily due to increased volume of Zio services provided as a result of increased demand.

Gross profit for the year was $407.5 million, up from $331.8 million in 2023, while gross margin was 68.9%, an improvement from 67.3% in 2023. The improvement in gross margin was primarily driven by operational efficiencies leading to lower costs per unit to serve a higher volume of patients compared to the prior year.

Operating expenses for the year were $523.0 million, an increase of 14.5% compared to 2023. The increase was mainly due to acquired IPR&D expenses related to license consideration, along with an increase in headcount-related costs and professional fees to support the growth in our business.

Net loss for 2024 was $113.3 million, or a diluted loss of $3.63 per share, compared with net loss of $123.4 million, or a diluted loss of $4.04 per share in 2023.

Cash, cash equivalents and marketable securities were $535.6 million as of December 31, 2024.

2025 Guidance
iRhythm projects revenue for the full year 2025 between $675 million to $685 million. Adjusted EBITDA margin for the full year 2025 is expected to range from approximately 7.0% to 8.0% of revenues.

Webcast and Conference Call Information
iRhythm’s management team will host a conference call today beginning at 1:30 p.m. PT/4:30 p.m. ET. Investors interested in listening to the conference call may do so by accessing the live and archived webcast of the event, which will be available on the investors section of the Company’s website at investors.irhythmtech.com.

About iRhythm Technologies, Inc.
iRhythm is a leading digital health care company that creates trusted solutions that detect, predict, and prevent disease. Combining wearable biosensors and cloud-based data analytics with powerful proprietary algorithms, iRhythm distills data from millions of heartbeats into clinically actionable information. Through a relentless focus on patient care, iRhythm’s vision is to deliver better data, better insights, and better health for all.

Use of Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP) in this press release, including adjusted EBITDA, adjusted net loss, adjusted net loss per share and adjusted operating expenses. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. See the schedules attached to this press release for additional information and reconciliations of such non-GAAP financial measures. We have not reconciled our adjusted operating expenses and adjusted EBITDA estimates for full year 2025 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, a reconciliation of adjusted operating expenses and adjusted EBITDA estimates is not available without unreasonable effort.

Adjusted EBITDA excludes non-cash operating charges for stock-based compensation expense, changes in fair value of strategic investments, impairment and restructuring charges, business transformation costs, and loss on extinguishment of debt. Business transformation costs include costs associated with professional services, employee termination and relocation, third-party merger and acquisition, integration, and other costs to augment and restructure the organization, inclusive of both outsourced and offshore resources.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future actions or operating or financial performance. In particular these statements include statements regarding financial guidance, market opportunity, ability to penetrate the market, international market expansion, anticipated productivity and quality improvements, and expectations for growth. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in our filings made with the Securities and Exchange Commission, including those on the Form 10-K expected to be filed on or about February 20, 2025. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements.

Investor Contact
Stephanie Zhadkevich
investors@irhythmtech.com

Media Contact
Kassandra Perry
irhythm@highwirepr.com

IRHYTHM TECHNOLOGIES, INC. Consolidated Balance Sheets (In thousands, except par value)

	December 31,
		2024			2023
Assets
Current assets:
Cash and cash equivalents	$	419,597		$	36,173
Marketable securities		115,956			97,591
Accounts receivable, net		79,941			61,484
Inventory		14,039			13,973
Prepaid expenses and other current assets		16,286			21,591
Total current assets		645,819			230,812
Property and equipment, net		125,092			104,114
Operating lease right-of-use assets		47,564			49,317
Restricted cash		8,358			—
Goodwill		862			862
Long-term strategic investments		61,902			3,000
Other assets		41,852			45,039
Total assets	$	931,449		$	433,144
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	7,221		$	5,543
Accrued liabilities		84,900			83,362
Deferred revenue		2,932			3,306
Operating lease liabilities, current portion		15,867			15,159
Total current liabilities		110,920			107,370
Long-term senior convertible notes		646,443			—
Debt, noncurrent portion		—			34,950
Other noncurrent liabilities		8,579			1,012
Operating lease liabilities, noncurrent portion		74,599			79,715
Total liabilities		840,541			223,047
Stockholders’ equity:
Preferred stock, $0.001 par value – 5,000 shares authorized; none issued and outstanding at December 31, 2024 and 2023		—			—
Common stock, $0.001 par value – 100,000 shares authorized; 31,621 shares issued and 31,392 shares outstanding at December 31, 2024, respectively; and 30,954 shares issued and outstanding at December 31, 2023		31			31
Additional paid-in capital		874,607			855,784
Accumulated other comprehensive income (loss)		165			(112	)
Accumulated deficit		(758,895	)		(645,606	)
Treasury stock, at cost; 229 and 0 shares at December 31, 2024 and 2023, respectively		(25,000	)		—
Total stockholders’ equity		90,908			210,097
Total liabilities and stockholders’ equity	$	931,449		$	433,144

IRHYTHM TECHNOLOGIES, INC. Consolidated Statements of Operations (In thousands, except per share data)

	(Unaudited) Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Revenue, net	$	164,325		$	132,511		$	591,839		$	492,681
Cost of revenue		49,257			45,085			184,308			160,875
Gross profit		115,068			87,426			407,531			331,806
Operating expenses:
Research and development		19,081			15,416			71,459			60,244
Acquired in-process research and development		302			—			32,371			—
Selling, general and administrative		99,768			100,114			418,565			385,645
Impairment and restructuring charges		—			11,078			641			11,078
Total operating expenses		119,151			126,608			523,036			456,967
Loss from operations		(4,083	)		(39,182	)		(115,505	)		(125,161	)
Interest and other income (expense), net:
Interest income		5,740			1,734			21,938			6,353
Interest expense		(3,320	)		(941	)		(12,821	)		(3,650	)
Loss on extinguishment of debt		—			—			(7,589	)		—
Other income (expense), net		481			(55	)		1,253			(198	)
Total interest and other income (expense), net		2,901			738			2,781			2,505
Loss before income taxes		(1,182	)		(38,444	)		(112,724	)		(122,656	)
Income tax provision		151			255			565			750
Net loss	$	(1,333	)	$	(38,699	)	$	(113,289	)	$	(123,406	)
Net loss per common share, basic and diluted	$	(0.04	)	$	(1.26	)	$	(3.63	)	$	(4.04	)
Weighted-average shares, basic and diluted		31,343			30,702			31,196			30,528

IRHYTHM TECHNOLOGIES, INC. Reconciliation of GAAP to Non-GAAP Financial Information (In thousands, except per share data) (Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Adjusted EBITDA reconciliation*
Net loss¹	$	(1,333	)	$	(38,699	)	$	(113,289	)	$	(123,406	)
Interest expense		3,320			941			12,821			3,650
Interest income		(5,740	)		(1,734	)		(21,938	)		(6,353	)
Changes in fair value of strategic investments		(843	)		—			(1,902	)		—
Income tax provision		151			255			565			750
Depreciation and amortization		5,289			4,914			20,715			16,348
Stock-based compensation		16,008			23,846			75,978			77,204
Impairment charges		—			11,078			641			11,078
Business transformation costs		2,416			1,772			11,072			15,866
Loss on extinguishment of debt		—			—			7,589			—
Adjusted EBITDA	$	19,268		$	2,373		$	(7,748	)	$	(4,863	)

*Certain numbers expressed may not sum due to rounding. ¹Net loss for the three and twelve months ended December 31, 2024, includes acquired in-process research and development expense of $0.3 million and $32.4 million, respectively.

Adjusted net income (loss) reconciliation*
Net loss, as reported¹	$	(1,333	)	$	(38,699	)	$	(113,289	)	$	(123,406	)
Impairment charges		—			11,078			641			11,078
Business transformation costs		2,416			1,772			11,072			15,866
Changes in fair value of strategic investments		(843	)		—			(1,902	)		—
Loss on extinguishment of debt		—			—			7,589			—
Adjusted net income (loss)	$	240		$	(25,849	)	$	(95,889	)	$	(96,462	)

Adjusted net income (loss) per share reconciliation:*
Diluted net loss per share, as reported¹	$	(0.04	)	$	(1.26	)	$	(3.63	)	$	(4.04	)
Impairment charges per share		—			0.36			0.02			0.36
Business transformation costs per share		0.08			0.06			0.35			0.52
Changes in fair value of strategic investments per share		(0.03	)		—			(0.06	)		—
Loss on extinguishment of debt per share		—			—			0.24			—
Adjusted diluted net income (loss) per share	$	0.01		$	(0.84	)	$	(3.08	)	$	(3.16	)

Weighted-average shares, basic		31,343			30,702			31,196			30,528
Weighted-average shares, diluted		31,710			30,702			31,196			30,528

Adjusted operating expenses reconciliation*
Operating expenses, as reported	$	119,151		$	126,608		$	523,036		$	456,967
Impairment charges		—			(11,078	)		(641	)		(11,078	)
Business transformation costs		(2,416	)		(1,772	)		(11,072	)		(15,866	)
Adjusted operating expenses	$	116,735		$	113,758		$	511,323		$	430,023

*Certain numbers expressed may not sum due to rounding. ¹Net loss for the three and twelve months ended December 31, 2024, includes acquired in-process research and development expense of $0.3 million and $32.4 million, respectively.

The MIL Network –

February 21, 2025

MIL-OSI: Altus Group Reports Q4 and Fiscal 2024 Financial Results; Announces Quarterly Dividend and Renewal of Normal Course Issuer Bid

Source: GlobeNewswire (MIL-OSI)

Delivers robust recurring revenue growth, margin expansion and cashflow improvement in FY 2024

Altus Group remains strongly positioned to sustain revenue growth and margin expansion in FY 2025

TORONTO, Feb. 20, 2025 (GLOBE NEWSWIRE) — Altus Group Limited (ʺAltus Group” or “the Company”) (TSX: AIF), a leading provider of asset and fund intelligence for commercial real estate (“CRE”), announced today its financial and operating results for the fourth quarter and year ended December 31, 2024. The Company also announced the approval by its Board of Directors (“Board”) of the payment of a cash dividend of $0.15 per common share for the first quarter ending March 31, 2025, and that the Toronto Stock Exchange (“TSX”) has approved its notice of intention to renew its normal course issuer bid (“NCIB”).

The 2024 results from the Property Tax segment have been classified as Discontinued Operations. Accordingly, all amounts except for Free Cash Flow and net cash provided by operating activities represent results from Continuing Operations. Unless otherwise indicated, all amounts are in Canadian dollars and percentages are on an as reported basis in comparison to Q4 2023 and FY 2023 (which have been restated to exclude results from Property Tax).

Q4 2024 Summary

Consolidated revenues were $135.5 million, up 3.4% (1.0% on a Constant Currency* basis).
Profit (loss) from continuing operations was $22.9 million, compared to $(8.3) million.
Earnings per share (“EPS”) from continuing operations were $0.50 basic and $0.48 diluted, compared to $(0.18) basic diluted.
Consolidated Adjusted EBITDA* was $32.4 million, up 55.4% (51.8% on a Constant Currency basis).
Adjusted EPS* was $0.85, compared to $0.26.
Analytics Recurring Revenue* was $101.1 million, up 8.7% (5.8% on a Constant Currency basis).
Analytics Adjusted EBITDA was $36.4 million, up 29.4% (25.2% on a Constant Currency basis).
Analytics Adjusted EBITDA margin* improved to 33.8%, up 650 bps (630 bps on a Constant Currency basis).
Analytics Recurring New Bookings* were $21.1 million, up 15.6% (10.9% on a Constant Currency basis).

FY 2024 Summary

Consolidated revenues were $519.7 million, up 2.0% (0.6% on a Constant Currency* basis).
Profit (loss) from continuing operations was $(0.8) million, compared to $(33.5) million.
Earnings per share (“EPS”) from continuing operations were $(0.02) basic and diluted, compared to $(0.74) basic and diluted.
Consolidated Adjusted EBITDA* was $82.9 million, up 26.0% (23.7% on a Constant Currency basis).
Adjusted EPS* was $1.17, compared to $0.48.
Analytics Recurring Revenue* was $383.4 million, up 8.1% (6.4% on a Constant Currency basis).
Analytics Adjusted EBITDA was $117.2 million, up 22.7% (20.0% on a Constant Currency basis).
Analytics Adjusted EBITDA margin* improved to 28.5%, up 420 bps (400 bps on a Constant Currency basis).
Net cash provided by operating activities was $79.9 million, up 11.9% and Free Cash Flow* was $72.5 million, up 23.0%.
In 2024, the Company repurchased 203,400 common shares under the NCIB for total cash consideration of approximately $11.0 million, at a weighted average price per share of $54.29. (An additional 115,300 common shares were purchased in January 2025 for total cash consideration of $6.3 million at a weighted average price per share of $54.49.)

*Altus Group uses certain non-GAAP financial measures such as Adjusted Earnings (Loss), and Constant Currency; non-GAAP ratios such as Adjusted EPS; total of segments measures such as Adjusted EBITDA; capital management measures such as Free Cash Flow; and supplementary financial and other measures such as Adjusted EBITDA margin, New Bookings, Recurring New Bookings, Non-Recurring New Bookings, Organic Revenue, Recurring Revenue, Non-Recurring Revenue, Organic Recurring Revenue, and Cloud Adoption Rate. Refer to the “Non-GAAP and Other Measures” section for more information on each measure and a reconciliation of Adjusted EBITDA and Adjusted Earnings (Loss) to Profit (Loss) and Free Cash Flow to Net cash provided by (used in) operating activities.

“I’m incredibly proud of our team for finishing the year on such a strong note,” said Jim Hannon, Chief Executive Officer. “In 2024, we achieved record performance at Analytics – $411 million in revenue and $117 million in Adjusted EBITDA, with an Adjusted EBITDA margin of 28.5%, our highest in a decade.

Throughout the year, we delivered significant product enhancements, streamlined our portfolio, won outstanding new customers, and deepened relationships across our expanding client base. This success fuelled cash flow growth and reinforced our momentum, even as the industry navigated a challenging cycle.

As we celebrate our 20-year anniversary this year, I’m more excited than ever about the road ahead. With a strengthened operating foundation in place, we’re poised to redefine how the CRE industry leverages data to drive performance – empowering our clients with unparalleled insights to make faster, more informed decisions and seize opportunities as the market continues to recover.”

Summary of Operating and Financial Performance by Reportable Segment:

“CC” in the tables indicates “Constant Currency”.

Consolidated
Quarter ended December 31,							Year ended December 31,
In thousands of dollars		2024		2023	% Change	Constant Currency % Change		2024		2023	% Change	Constant Currency % Change
Revenues	$	135,501	$	131,050	3.4%	1.0%	$	519,727	$	509,732	2.0%	0.6%
Profit (loss) from continuing operations, net of tax	$	22,872	$	(8,319)	374.9%		$	(793)	$	(33,493)	97.6%
Adjusted EBITDA*	$	32,420	$	20,858	55.4%	51.8%	$	82,895	$	65,763	26.1%	23.7%
Adjusted EBITDA margin*		23.9%		15.9%	800 bps	800 bps		15.9%		12.9%	305 bps	300 bps
Net cash provided by operating activities	$	24,708	$	44,693	(44.7%)		$	79,920	$	71,429	11.9%
Free Cash Flow*	$	24,599	$	40,141	(38.7%)		$	72,465	$	58,938	23.0%

Analytics
	Quarter ended December 31,						Year ended December 31,
In thousands of dollars		2024		2023	% Change	Constant Currency % Change		2024		2023	% Change	Constant Currency % Change
Revenues	$	107,721	$	103,190	4.4%	1.6%	$	411,282	$	392,913	4.7%	3.0%
Adjusted EBITDA	$	36,409	$	28,145	29.4%	25.2%	$	117,162	$	95,469	22.7%	20.0%
Adjusted EBITDA margin		33.8%		27.3%	650 bps	630 bps		28.5%		24.3%	420 bps	400 bps

Other Measures
Recurring Revenue*	$	101,060	$	93,010	8.7%	5.8%	$	383,366	$	354,563	8.1%	6.4%
New Bookings*	$	25,845	$	26,254	(1.6%)	(5.3%)	$	86,306	$	94,493	(8.7%)	(10.2%)
Recurring New Bookings*	$	21,074	$	18,236	15.6%	10.9%	$	67,780	$	64,507	5.1%	3.3%
Non-Recurring New Bookings*	$	4,771	$	8,017	(40.5%)	(42.2%)	$	18,526	$	29,986	(38.2%)	(39.2%)
Geographical revenue split
North America		77%		77%				76%		77%
International		23%		23%				24%		23%
Cloud Adoption Rate* (as at end of period)		–		–				82%		74%

Appraisals and Development Advisory
	Quarter ended December 31,						Year ended December 31,
In thousands of dollars		2024		2023	% Change	Constant Currency % Change		2024		2023	% Change	Constant Currency % Change
Revenues	$	27,964	$	28,046	(0.3%)	(1.0%)	$	109,208	$	117,577	(7.1%)	(7.3%)
Adjusted EBITDA	$	4,401	$	2,254	95.3%	93.4%	$	9,909	$	11,540	(14.1%)	(15.0%)
Adjusted EBITDA margin		15.7%		8.0%	770 bps	770 bps		9.1%		9.8%	70 bps	80 bps

Q4 2024 Financial Review

On a consolidated basis, revenues were $135.5 million, up 3.4% (1.0% on a Constant Currency basis) and Adjusted EBITDA was $32.4 million, up 55.4% (51.8% on a Constant Currency basis). Adjusted EPS was $0.85, compared to $0.26 in the fourth quarter of 2023.

In early 2024, the Company initiated a global restructuring program as part of an ongoing effort to optimize its operating model. Restructuring costs were $2.9 million in the fourth quarter, totalling $12.1 million for the year. The restructuring costs primarily related to employee severance impacting both the Analytics and Appraisals and Development Advisory business segments, as well as corporate functions.

Profit (loss) from continuing operations was $22.9 million and $0.50 per share basic and $0.48 diluted, compared to $(8.3) million and $(0.18) per share basic and diluted, in the same period in 2023. Profit (loss) from continuing operations benefitted from higher revenues, offset by acquisition and related costs and the restructuring program.

Analytics revenues increased to $107.7 million, up 4.4% (1.6% on a Constant Currency basis). Organic Revenue* growth was 3.2% (0.4% on a Constant Currency basis). Adjusted EBITDA was $36.4 million, up 29.4% (25.2% on a Constant Currency basis), driving an Adjusted EBITDA margin of 33.8%, up 650 basis points (630 basis points on a Constant Currency basis).

Revenue growth was driven by resilient Recurring Revenue performance benefitting from higher software and Valuation Management Solutions (“VMS”) sales and contribution from Forbury.
Recurring Revenue was $101.1 million, up 8.7% (5.8% on a Constant Currency basis). Organic Recurring Revenue* was $99.3 million, up 7.3% (4.5% on a Constant Currency Basis) from $92.5 million in the same period in 2023.
New Bookings totalled $25.8 million, down 1.6% (5.3% on a Constant Currency basis). Recurring New Bookings were $21.1 million, up 15.6% (10.9% on a Constant Currency basis), and Non-Recurring New Bookings were $4.8 million, down 40.5% (42.2% on a Constant Currency basis).
Adjusted EBITDA growth and margin expansion benefitted from higher revenues, operating efficiencies, ongoing cost optimization efforts, and foreign exchange fluctuations.

Appraisals and Development Advisory revenues were $28.0 million, down 0.3% (1.0% on a Constant Currency basis) and Adjusted EBITDA was $4.4 million, up 95.3% (93.4% on a Constant Currency basis). The revenue performance reflects muted market activity in the current economic environment. The improvement in Adjusted EBITDA reflects ongoing cost optimization efforts.

Corporate costs were $8.4 million for the quarter ended December 31, 2024, compared to $9.5 million in the same period in 2023. The decrease in corporate costs in the fourth quarter primarily reflects the settlement of certain balances in preparation for the sale of the Property Tax business resulting in favourable foreign exchange fluctuations for the period.

Cash generation (which reflects both continuing and discontinued operations) was down in the fourth quarter reflecting a tough compare. Net cash provided by operating activities was $24.7 million and Free Cash Flow was $24.6 million, down 44.7% and 38.7% respectively. On a year-over-year view, the fourth quarter of 2023 benefitted from a catch up on billings related to the implementation of a new enterprise resource planning (“ERP”) system. For full year 2024, net cash provided by operating activities was up 11.9% and Free Cash Flow was up 23.0%.

As at December 31, 2024, bank debt was $282.9 million and cash and cash equivalents were $41.9 million, representing a Funded debt to EBITDA ratio as defined in the Company’s credit facility agreement of 2.01 times, well below the Company’s 4.5x maximum capacity limit under its credit facilities. At the end of the year, the Company had approximately $309.0 million of total liquidity as measured by the sum of cash and cash equivalents and bank credit facilities available. Including approximately $600.0 million of net proceeds from the sale of the Property Tax business, completed on January 1, 2025, total liquidity would be approximately $909.0 million.

2025 Business Outlook

The Company remains strongly positioned to sustain revenue and Adjusted EBITDA growth at a higher Adjusted EBITDA margin in 2025. Management expects CRE market conditions to gradually improve throughout 2025 with a stronger second half of the year. The business outlook for 2025 by reportable segment is as follows:

FY 2025			Q1 2025
Analytics
	•	4 – 7% total Analytics revenue growth	•	0 – 2% total Analytics revenue growth
	•	6 – 9% Recurring Revenue growth	•	2 – 3% Recurring Revenue growth
	•	250 – 350 bps of Adjusted EBITDA margin expansion	•	50– 150 bps of Adjusted EBITDA margin expansion

Appraisals and Development Advisory
	•	Low single digit revenue growth	•	4 – 6% revenue decline
	•	Adjusted EBITDA margin expansion	•	$1 – 2M Adjusted EBITDA improvement

Consolidated
	•	3 – 5% revenue growth	•	Flat revenue growth
	•	300 – 400 bps of Adjusted EBITDA margin expansion	•	150 – 250 bps of Adjusted EBITDA margin expansion

Note: Business Outlook presented on a Constant Currency basis over the corresponding period in 2024. Future acquisitions are not factored into this outlook.

Forecasting future results or trends is inherently difficult for any business and actual results or trends may vary significantly. The business outlook is forward-looking information that is based upon the assumptions and subject to the material risks discussed under the “Forward-Looking Information Disclaimer” section.

Key assumptions for the business outlook by segment: Analytics: consistency and growth in number of assets on the Valuation Management Solutions platform, continued ARGUS cloud conversions, new sales (including New Bookings converting to revenue within Management’s expected timeline and uptake on new product functionality), client and software retention consistent with 2024 levels, pricing action, improved operating leverage, as well as consistent and gradually improving economic conditions in financial and CRE markets. Appraisal & Development Advisory: improved client profitability and improved operating leverage. The Consolidated outlook assumes that corporate costs will remain elevated throughout 2025 consistent with 2024 levels.

Q1 2025 Dividend

Altus Group’s Board approved the payment of a cash dividend of $0.15 per common share for the first quarter ending March 31, 2025, with payment to be made on April 15, 2025 to common shareholders of record as at March 31, 2024.

Altus Group’s Dividend Reinvestment Plan (“DRIP”) permits eligible shareholders to direct their cash dividends to be reinvested in additional common shares of the Company. For shareholders who wish to reinvest their dividends under the DRIP, Altus Group intends to issue common shares from treasury at a price equal to 96% of the weighted average closing price of the shares for the five trading days preceding the dividend payment date. Full details of the DRIP program are available on the Company’s website.

Altus Group confirms that all dividends paid or deemed to be paid to its common shareholders qualify as ʺeligible dividendsʺ for purposes of subsection 89(14) of the Income Tax Act (Canada) and similar provincial and territorial legislation, unless indicated otherwise.

Renewal of Normal Course Issuer Bid

The Toronto Stock Exchange (“TSX”) has approved the Company’s notice of intention to renew its normal course issuer bid (“NCIB”) for its common shares. Altus’ NCIB will be made in accordance with the policies of the TSX. Altus may purchase its common shares during the period from February 25, 2025 to February 24, 2026.

Under the NCIB and subject to the market price of its common shares and other considerations, over the next 12 months Altus may purchase for cancellation up to 3,219,967 common shares, representing approximately 10% of its public float as at February 11, 2025. There were 46,190,841 common shares outstanding as at February 11, 2025. The average daily trading volume through the facilities of the TSX during the 26-week period ending January 31, 2025 was 70,585 common shares. Daily purchases will be limited to 17,646 common shares, representing 25% of the average daily trading volume, other than block purchase exemptions. Purchases may be made on the open market through the facilities of the TSX and/or alternative Canadian trading systems at the market price at the time of acquisition, as well as by other means as may be permitted by TSX rules and applicable securities laws. Any tendered shares taken up and paid for by Altus will be cancelled. The Company plans to fund the NCIB purchases from its existing cash balance.

Under its previous NCIB which commenced on February 8, 2024 and expired on February 7, 2025, Altus obtained approval from the TSX to purchase up to 1,376,034 common shares. As of February 11, 2025, Altus had purchased an aggregate of 318,700 common shares for cancellation under an NCIB in the past 12 months at a weighted average price of approximately $54.36 per common share. All repurchases under an NCIB within the past 12 months were conducted through the facilities of the TSX and/or alternative Canadian trading systems.

The Company intends to enter into an automatic share purchase plan with a designated broker in relation to the NCIB that would allow for the purchase of its common shares, subject to certain trading parameters, at times when Altus ordinarily would not be active in the market due to its own internal trading black-out period, insider trading rules or otherwise. Any such plan entered into with a broker will be adopted in accordance with applicable Canadian securities law. Outside of these periods, common shares will be repurchased in accordance with management’s discretion and in compliance with applicable law.

The Company is renewing the NCIB because it believes that it provides flexibility around its capital allocation investments, particularly during periods when its common shares may trade in a price range that does not adequately reflect their underlying value based on the Company’s business and strong financial position. As a result, to maximize shareholder value, Altus believes that an investment in its outstanding common shares may represent an attractive use of available funds while continuing to balance other growth investments, including investing in operations and in potential M&A. Decisions regarding the amount and timing of future purchases of common shares will be based on market conditions, share price and other factors and will be at management’s discretion. The Company’s Board of Directors will regularly review the NCIB in connection with a balanced capital allocation strategy focused primarily on funding growth.

About Altus Group

Altus Group is a leading provider of asset and fund intelligence for commercial real estate. We deliver intelligence as a service to our global client base through a connected platform of industry-leading technology, advanced analytics, and advisory services. Trusted by the largest CRE leaders, our capabilities help commercial real estate investors, developers, lenders, and advisors manage risks and improve performance returns throughout the asset and fund lifecycle. Altus Group is a global company headquartered in Toronto with approximately 1,900 employees across North America, EMEA and Asia Pacific. For more information about Altus (TSX: AIF) please visit www.altusgroup.com.

Non-GAAP and Other Measures

Altus Group uses certain non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”). Management believes that these measures may assist investors in assessing an investment in the Company’s shares as they provide additional insight into the Company’s performance. Readers are cautioned that they are not defined performance measures, and do not have any standardized meaning under IFRS and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to financial measures as reported by those entities. These measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS.

Adjusted Earnings (Loss): Altus Group uses Adjusted Earnings (Loss) to facilitate the calculation of Adjusted EPS. How it’s calculated: Profit (loss) added or (deducted) by: profit (loss) from discontinued operations, net of tax; occupancy costs calculated on a similar basis prior to the adoption of IFRS 16; depreciation of right‐of‐use assets; amortization of intangibles of acquired businesses; acquisition and related transition costs (income); unrealized foreign exchange losses (gains); (gains) losses on disposal of right‐of‐use assets, property, plant and equipment and intangibles; share of (profit) loss of joint venture; non‐cash share‐based compensation costs; (gains) losses on equity derivatives net of mark‐to‐market adjustments on related RSUs and DSUs; (gains) losses on derivatives; interest accretion on contingent consideration payables; restructuring costs (recovery); impairment charges; (gains) losses on investments; (gains) losses on hedging transactions and interest expense (income) on swaps; other costs or income of a non‐operating and/or non‐recurring nature; finance costs (income), net ‐ leases; and the tax impact of these items.

Constant Currency: Altus Group uses Constant Currency to allow current financial and operational performance to be understood against comparative periods without the impact of fluctuations in foreign currency exchange rates against the Canadian dollar. How it’s calculated: The financial results and non-GAAP and other measures presented at Constant Currency within this document are obtained by translating monthly results denominated in local currency (U.S. dollars, British pound, Euro, Australian dollars, and other foreign currencies) to Canadian dollars at the foreign exchange rates of the comparable month in the previous year.

Adjusted EPS: Altus Group uses Adjusted EPS to assess the performance of the business, on a per share basis, before the effects of the noted items because they affect the comparability of the Company’s financial results and could potentially distort the analysis of trends in business performance. How it’s calculated: Adjusted Earnings (Loss) divided by basic weighted average number of shares, adjusted for the effects of the weighted average number of restricted shares.

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”): Altus Group uses Adjusted EBITDA to evaluate the performance of the business, as well as when making decisions about the ongoing operations of the business and the Company’s ability to generate cash flows. This measure represents Adjusted EBITDA determined on a consolidated entity-basis as a total of the various segments. All other Adjusted EBITDA references are disclosed in the financial statements and are not considered to be non-GAAP financial measures pursuant to NI 52-112. How it’s calculated: Profit (loss) added or (deducted) by: profit (loss) from discontinued operations, net of tax; occupancy costs calculated on a similar basis prior to the adoption of IFRS 16; depreciation of right‐of‐use assets; depreciation of property, plant and equipment and amortization of intangibles; acquisition and related transition costs (income); unrealized foreign exchange (gains) losses; (gains) losses on disposal of right‐of-use assets, property, plant and equipment and intangibles; share of (profit) loss of joint venture; non‐cash share‐based compensation costs; (gains) losses on equity derivatives net of mark‐to market adjustments on related restricted share units (“RSUs”) and deferred share units (“DSUs”); (gains) losses on derivatives, restructuring costs (recovery); impairment charges; (gains) losses on investments; other costs or income of a non‐operating and/or non‐recurring nature; finance costs (income), net ‐ leases; finance costs (income), net ‐ other; and income tax expense (recovery).

Free Cash Flow: Altus Group uses Free Cash Flow to understand how much of the cash generated from operating activities is available to repay borrowings and to reinvest in the Company. How it’s calculated: Net cash provided by (used in) operating activities deducted by capital expenditures.

Adjusted EBITDA Margin: Altus Group uses Adjusted EBITDA margin to evaluate the performance of the business, as well as when making decisions about the ongoing operations of the business and its ability to generate cash flows. How it’s calculated: Adjusted EBITDA divided by revenue.

New Bookings, Recurring New Bookings and Non-Recurring New Bookings: For its Analytics reportable segment, Altus Group uses New Bookings, Recurring New Bookings and Non-Recurring New Bookings as measures to track the performance and success of sales initiatives, and as an indicator of future revenue growth. How it’s calculated: New Bookings: The total of annual contract values for new sales of the Company’s recurring solutions and services (software subscriptions, Valuation Management Solutions and data subscriptions) plus the total of contract values for one-time engagements (consulting, training, and due diligence). The value of contract renewals is excluded from this metric with the exception of additional capacity or products purchased at the time of renewal. The total annual contract values for VMS are based on an estimated number of assets at the end of the first year of the contract term. New Bookings is inclusive of any new signed contracts as well as any additional solutions and services added by existing customers within the Analytics reportable segment. Recurring New Bookings: The total of annual contract values for new sales of the recurring solutions and services. Non-Recurring New Bookings: The total of contract values for one-time engagements.

Organic Revenue: Altus Group uses Organic Revenue to evaluate and assess revenue trends in the business on a comparable basis versus the prior year, and as an indicator of future revenue growth. How it’s calculated: Revenue deducted by revenues from business acquisitions that are not fully integrated (up to the first anniversary of the acquisition).

Recurring Revenue, Non-Recurring Revenue, Organic Recurring Revenue: For its Analytics reportable segment, Altus Group uses Recurring Revenue and Non-Recurring Revenue, and Organic Recurring Revenue as measures to assess revenue trends in the business, and as indicators of future revenue growth. How it’s calculated: Recurring Revenue: Revenue from software subscriptions recognized on an over time basis in accordance with IFRS 15, software maintenance revenue associated with the Company’s legacy licenses sold on perpetual terms, Valuation Management Solutions, and data subscriptions. Non-Recurring Revenue: Total Revenue deducted by Recurring Revenue. Organic Recurring Revenue: Recurring Revenue deducted by Recurring Revenue from business acquisitions that are not fully integrated (up to the first anniversary of the acquisition).

Cloud Adoption Rate: For its Analytics reportable segment, Altus Group uses the Cloud Adoption Rate as a measure of its progress in transitioning the AE user base to its cloud-based platform, a key component of its overall product strategy. How it’s calculated: Percentage of the total AE user base contracted on the ARGUS Cloud platform.

Forward-looking Information

Certain information in this press release may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in this press release, other than statements of current and historical fact, is forward-looking information. Forward-looking information includes, but is not limited to, statements relating to expected financial and other benefits of acquisitions and the closing of acquisitions (including the expected timing of closing), as well as the discussion of our business, strategies and leverage (including the commitment to increase borrowing capacity), expectations of future performance, including any guidance on financial expectations, and our expectations with respect to cash flows and liquidity. Generally, forward-looking information can be identified by use of words such as “may”, “will”, “expect”, “believe”, “anticipate”, “estimate”, “intend”, “plan”, “would”, “could”, “should”, “continue”, “goal”, “objective”, “remain” and other similar terminology.

Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may not be known and may cause actual results, performance or achievements, industry results or events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and applied in drawing conclusions or making forecasts or projections set out in the forward-looking information (including sections entitled “Business Outlook”) include, but are not limited to: engagement and product pipeline opportunities in Analytics will result in associated definitive agreements; continued adoption of cloud subscriptions by our customers; retention of material clients and bookings; sustaining our software and subscription renewals; successful execution of our business strategies; consistent and stable economic conditions or conditions in the financial markets including stable interest rates and credit availability for CRE; consistent and stable legislation in the various countries in which we operate; consistent and stable foreign exchange conditions; no disruptive changes in the technology environment; opportunity to acquire accretive businesses and the absence of negative financial and other impacts resulting from strategic investments or acquisitions on short term results; successful integration of acquired businesses; and continued availability of qualified professionals.

Inherent in the forward-looking information are known and unknown risks, uncertainties and other factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking information. Those risks include, but are not limited to: the CRE market conditions; the general state of the economy; our financial performance; our financial targets; our international operations; acquisitions, joint ventures and strategic investments; business interruption events; third party information and data; cybersecurity; industry competition; professional talent; our subscription renewals; our sales pipeline; client concentration and loss of material clients; product enhancements and new product introductions; technology strategy; our use of technology; intellectual property; compliance with laws and regulations; privacy and data protection; artificial intelligence; our leverage and financial covenants; interest rates; inflation; our brand and reputation; our cloud transition; fixed price engagements; currency fluctuations; credit; tax matters; our contractual obligations; legal proceedings; regulatory review; health and safety hazards; our insurance limits; dividend payments; our share price; share repurchase programs; our capital investments; equity and debt financings; our internal and disclosure controls; and environmental, social and governance (“ESG”) matters and climate change, as well as those described in our annual publicly filed documents, including the Annual Information Form for the year ended December 31, 2024 (which are available on SEDAR+ at www.sedarplus.ca).

Investors should not place undue reliance on forward-looking information as a prediction of actual results. The forward-looking information reflects management’s current expectations and beliefs regarding future events and operating performance and is based on information currently available to management. Although we have attempted to identify important factors that could cause actual results to differ materially from the forward-looking information contained herein, there are other factors that could cause results not to be as anticipated, estimated or intended. The forward-looking information contained herein is current as of the date of this press release and, except as required under applicable law, we do not undertake to update or revise it to reflect new events or circumstances. Additionally, we undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Altus Group, our financial or operating results, or our securities.

Certain information in this press release, including sections entitled “2025 Business Outlook”, may be considered as “financial outlook” within the meaning of applicable securities legislation. The purpose of this financial outlook is to provide readers with disclosure regarding Altus Group’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.

FOR FURTHER INFORMATION PLEASE CONTACT:

Camilla Bartosiewicz
Chief Communications Officer, Altus Group
(416) 641-9773
camilla.bartosiewicz@altusgroup.com

Martin Miasko
Investor Relations Director, Altus Group
(416) 204-5136
martin.miasko@altusgroup.com

Interim Condensed Consolidated Statements of Comprehensive Income (Loss)
For the Years Ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Thousands of Canadian Dollars, Except for Per Share Amounts)

		For the year ended December 31, 2024		For the year ended December 31, 2023 ⁽¹⁾
Revenues	$	519,727	$	509,732
Expenses
Employee compensation		336,327		340,525
Occupancy		5,398		5,359
Other operating		100,464		124,075
Depreciation of right-of-use assets		8,271		8,047
Depreciation of property, plant and equipment		3,706		4,629
Amortization of intangibles		32,039		32,753
Acquisition and related transition costs (income)		8,914		3,950
Share of (profit) loss of joint venture		(2,950)		(3,146)
Restructuring costs (recovery)		12,052		313
(Gain) loss on investments		(446)		301
Impairment charge		7,000		–
Finance costs (income), net – leases		938		771
Finance costs (income), net – other		18,457		23,836
Profit (loss) before income taxes from continuing operations		(10,443)		(31,681)
Income tax expense (recovery)		(9,650)		1,812
Profit (loss) from continuing operations, net of tax	$	(793)	$	(33,493)
Profit (loss) from discontinued operations, net of tax		14,216		43,725
Profit (loss) for the year	$	13,423	$	10,232
Other comprehensive income (loss):
Items that may be reclassified to profit or loss in subsequent periods:
Currency translation differences		30,553		(2,055)
Items that are not reclassified to profit or loss in subsequent periods:
Changes in investments measured at fair value through other comprehensive income, net of tax		(1,646)		(1,144)
Other comprehensive income (loss), net of tax		28,907		(3,199)
Total comprehensive income (loss) for the year, net of tax	$	42,330	$	7,033

Earnings (loss) per share attributable to the shareholders of the Company during the year
Basic earnings (loss) per share:
Continuing operations		$(0.02)		$(0.74)
Discontinued operations		$0.31		$0.97
Diluted earnings (loss) per share:
Continuing operations		$(0.02)		$(0.74)
Discontinued operations		$0.30		$0.95

⁽¹⁾	Comparative figures have been restated to reflect discontinued operations

Interim Condensed Consolidated Balance Sheets
As at December 31, 2024 and December 31, 2023
(Unaudited)

(Expressed in Thousands of Canadian Dollars)

		December 31, 2024		December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	41,876	$	41,892
Trade receivables and other		144,812		250,462
Income taxes recoverable		5,099		9,532
Derivative financial instruments		8,928		677
		200,715		302,563
Assets held for sale		282,233		–
Total current assets		482,948		302,563
Non-current assets
Trade receivables and other		9,620		10,511
Derivative financial instruments		9,984		8,134
Investments		14,580		14,509
Investment in joint venture		25,605		22,655
Deferred tax assets		56,797		30,650
Right-of-use assets		19,420		25,282
Property, plant and equipment		13,217		19,768
Intangibles		214,614		270,641
Goodwill		404,176		509,980
Total non-current assets		768,013		912,130
Total assets	$	1,250,961	$	1,214,693
Liabilities
Current liabilities
Trade payables and other	$	216,390	$	199,220
Income taxes payable		3,017		4,710
Lease liabilities		11,009		14,346
		230,416		218,276
Liabilities directly associated with assets held for sale		57,680		–
Total current liabilities		288,096		218,276
Non-current liabilities
Trade payables and other		19,828		22,530
Lease liabilities		26,751		33,755
Borrowings		281,887		307,451
Deferred tax liabilities		17,179		30,144
Total non-current liabilities		345,645		393,880
Total liabilities		633,741		612,156
Shareholders’ equity
Share capital		798,087		769,296
Contributed surplus		21,394		50,143
Accumulated other comprehensive income (loss)		56,243		42,434
Retained earnings (deficit)		(275,935)		(259,336)
Reserves of assets held for sale		17,431		–
Total shareholders’ equity		617,220		602,537
Total liabilities and shareholders’ equity	$	1,250,961	$	1,214,693

Interim Condensed Consolidated Statements of Cash Flows
For the Years Ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Thousands of Canadian Dollars)

		For the year ended December 31, 2024		For the year ended December 31, 2023
Cash flows from operating activities
Profit (loss) before income taxes from continuing operations	$	(10,443)	$	(31,681)
Profit (loss) before income taxes from discontinued operations		19,200		54,011
Profit (loss) before income taxes	$	8,757	$	22,330
Adjustments for:
Depreciation of right-of-use assets		9,945		11,121
Depreciation of property, plant and equipment		4,554		6,102
Amortization of intangibles		35,916		40,717
Finance costs (income), net – leases		1,189		1,222
Finance costs (income), net – other		17,979		23,877
Share-based compensation		23,669		23,068
Unrealized foreign exchange (gain) loss		(337)		1,622
(Gain) loss on investments		(446)		301
(Gain) loss on disposal of right-of-use assets, property, plant and equipment and intangibles		(2,025)		454
(Gain) loss on equity derivatives		(9,942)		8,599
Share of (profit) loss of joint venture		(2,950)		(3,146)
Impairment of non-financial assets		7,000		–
Impairment of right-of-use assets, net of (gain) loss on sub-leases		(322)		(565)
Net changes in:
Operating working capital		11,703		(24,117)
Liabilities for cash-settled share-based compensation		19,246		591
Deferred consideration payables		(1,674)		(1,610)
Contingent consideration payables		(200)		(2,989)
Net cash generated by (used in) operations		122,062		107,577
Less: interest paid on borrowings		(18,064)		(20,273)
Less: interest paid on leases		(1,189)		(1,222)
Less: income taxes paid		(23,588)		(14,889)
Add: income taxes refunded		699		236
Net cash provided by (used in) operating activities		79,920		71,429
Cash flows from financing activities
Proceeds from exercise of options		17,678		10,417
Financing fees paid		(170)		(8)
Proceeds from borrowings		34,426		72,154
Repayment of borrowings		(72,360)		(83,599)
Payments of principal on lease liabilities		(15,944)		(15,094)
Proceeds from right-of-use asset lease inducements		–		525
Dividends paid		(24,726)		(26,579)
Treasury shares purchased for share-based compensation		(3,483)		(4,817)
Cancellation of shares		(11,043)		(4,780)
Net cash provided by (used in) financing activities		(75,622)		(51,781)
Cash flows from investing activities
Purchase of investments		(882)		(841)
Purchase of intangibles		(6,063)		(7,664)
Purchase of property, plant and equipment		(1,392)		(4,827)
Proceeds from investments		93		28
Proceeds from disposal of investments		–		3,471
Proceeds from sale of disposal group		11,016		–
Acquisitions, net of cash acquired		–		(25,090)
Net cash provided by (used in) investing activities		2,772		(34,923)
Effect of foreign currency translation		1,630		1,900
Net increase (decrease) in cash and cash equivalents		8,700		(13,375)
Cash and cash equivalents, beginning of year		41,892		55,267
Cash and cash equivalents, end of year ⁽¹⁾	$	50,592	$	41,892

⁽¹⁾	Included in cash and cash equivalents as at December 31, 2024 is $8,716 related to discontinued operations

Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings (Loss)

The following table provides a reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings (Loss):

	Quarter ended December 31,				Year ended December 31,
In thousands of dollars, except for per share amounts		2024		2023 ⁽¹⁾		2024		2023 ⁽¹⁾
Profit (loss) for the period	$	10,638	$	(140)	$	13,423	$	10,232
(Profit) loss from discontinued operations, net of tax		12,234		(8,179)		(14,216)		(43,725)
Occupancy costs calculated on a similar basis prior to the adoption of IFRS 16 ⁽²⁾		(1,618)		(1,289)		(9,157)		(8,431)
Depreciation of right-of-use assets		1,595		2,078		8,271		8,047
Depreciation of property, plant and equipment and amortization of intangibles ⁽⁸⁾		8,752		9,560		35,745		37,382
Acquisition and related transition costs (income)		20		3,759		8,914		3,950
Unrealized foreign exchange (gain) loss ⁽³⁾		543		970		760		3,622
(Gain) loss on disposal of right-of-use assets, property, plant and equipment and intangibles ⁽³⁾		(4,074)		(3)		(2,496)		16
Share of (profit) loss of joint venture		(937)		(810)		(2,950)		(3,146)
Non-cash share-based compensation costs ⁽⁴⁾		3,231		3,041		13,285		11,178
(Gain) loss on equity derivatives net of mark-to-market adjustments on related RSUs and DSUs ⁽⁴⁾		24		1,512		(2,891)		5,531
Restructuring costs (recovery)		2,939		311		12,052		313
(Gain) loss on investments ⁽⁵⁾		194		659		(446)		301
Impairment charge		7,000		–		7,000		–
Other non-operating and/or non-recurring (income) costs ⁽⁶⁾		2,951		2,528		5,856		14,074
Finance costs (income), net – leases		301		131		938		771
Finance costs (income), net – other ⁽⁹⁾		3,781		8,816		18,457		23,836
Income tax expense (recovery) ⁽¹⁰⁾		(15,154)		(2,086)		(9,650)		1,812
Adjusted EBITDA	$	32,420	$	20,858	$	82,895	$	65,763
Depreciation of property, plant and equipment and amortization of intangibles of non-acquired businesses ⁽⁸⁾		(1,836)		(2,322)		(6,797)		(8,955)
Finance (costs) income, net – other ⁽⁹⁾		(3,781)		(8,816)		(18,457)		(23,836)
(Gain) loss on hedging transactions, including currency forward contracts and interest expense (income) on swaps ⁽⁹⁾		(502)		3,762		202		3,057
Tax effect of adjusted earnings (loss) adjustments ⁽¹⁰⁾		13,055		(1,664)		(3,830)		(13,958)
Adjusted earnings (loss)*	$	39,356	$	11,818	$	54,013	$	22,071
Weighted average number of shares – basic		45,904,069		45,421,165		45,787,374		45,302,194
Weighted average number of restricted shares		233,275		433,123		308,353		485,530
Weighted average number of shares – adjusted		46,137,344		45,854,288		46,095,727		45,787,724
Adjusted earnings (loss) per share ⁽⁷⁾		$0.85		$0.26		$1.17		$0.48

⁽¹⁾	Comparative figures have been restated to reflect discontinued operations. Refer to Note 11 of the financial statements.
⁽²⁾	Management uses the non-GAAP occupancy costs calculated on a similar basis prior to the adoption of IFRS 16 when analyzing financial and operating performance.
⁽³⁾	Included in other operating expenses in the consolidated statements of comprehensive income (loss).
⁽⁴⁾	Included in employee compensation expenses in the consolidated statements of comprehensive income (loss).
⁽⁵⁾	(Gain) loss on investments relates to changes in the fair value of investments in partnerships.
⁽⁶⁾	Other non-operating and/or non-recurring (income) costs for the quarters and years ended December 31, 2024 and 2023 relate to legal, advisory, consulting, and other professional fees related to organizational and strategic initiatives. These are included in other operating expenses in the consolidated statements of comprehensive income (loss).
⁽⁷⁾	Refer to page 4 of the MD&A for the definition of Adjusted EPS.
⁽⁸⁾	For the purposes of reconciling to Adjusted Earnings (Loss), the amortization of intangibles of acquired businesses is adjusted from Profit (loss) for the period. Per the quantitative reconciliation above, we have added back depreciation of property, plant and equipment and amortization of intangibles and then deducted the depreciation of property, plant and equipment and amortization of intangibles of non-acquired businesses to arrive at the amortization of intangibles of acquired businesses.
⁽⁹⁾	For the purposes of reconciling to Adjusted Earnings (Loss), the interest accretion on contingent consideration payables and (gains) losses on hedging transactions and interest expense (income) on swaps is adjusted from Profit (loss) for the period. Per the quantitative reconciliation above, we have added back finance costs (income), net – other and then deducted finance costs (income), net – other prior to adjusting for interest accretion on contingent consideration payables and (gains) losses on hedging transactions and interest expense (income) on swaps.
⁽¹⁰⁾	For the purposes of reconciling to Adjusted Earnings (Loss), only the tax impacts for the reconciling items noted in the definition of Adjusted Earnings (Loss) is adjusted from profit (loss) for the period.

Reconciliation of Free Cash Flow

The Company proactively manages and optimizes Free Cash Flow available for reinvestment in the business. Free Cash Flow is reconciled as follows:

Free Cash Flow	Quarter ended December 31,				Year ended December 31,
In thousands of dollars		2024		2023		2024		2023
Net cash provided by (used in) operating activities	$	24,708	$	44,693	$	79,920	$	71,429
Less: Capital Expenditures		(109)		(4,552)		(7,455)		(12,491)
Free Cash Flow	$	24,599	$	40,141	$	72,465	$	58,938

Constant Currency

The following tables provide a summarization of the foreign exchange rates used as presented based on the average monthly rates, and the foreign exchange rates used for Constant Currency for currencies in which the Company primarily transacts in:

	Quarter ended December 31, 2024			Year ended December 31, 2024
		As presented	For Constant Currency		As presented	For Constant Currency
Canadian Dollar		1.000	1.000		1.000	1.000
United States Dollar		1.399	1.361		1.370	1.349
Pound Sterling		1.792	1.689		1.750	1.677
Euro		1.492	1.464		1.482	1.459
Australian Dollar		0.912	0.886		0.903	0.896

	Quarter ended December 31, 2023			Year ended December 31, 2023
		As presented	For Constant Currency		As presented	For Constant Currency
Canadian Dollar		1.000	1.000		1.000	1.000
United States Dollar		1.361	1.357		1.349	1.301
Pound Sterling		1.689	1.593		1.677	1.608
Euro		1.464	1.386		1.459	1.370
Australian Dollar		0.886	0.892		0.896	0.903

The MIL Network –

February 21, 2025

MIL-OSI: Employers Holdings, Inc. Reports Fourth Quarter 2024 and Full-Year Financial Results; Declares Quarterly Cash Dividend of $0.30 per Share

Source: GlobeNewswire (MIL-OSI)

RENO, Nev., Feb. 20, 2025 (GLOBE NEWSWIRE) — Employers Holdings, Inc. (the “Company”) (NYSE:EIG), a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services focused on small and mid-sized businesses engaged in low-to-medium hazard industries, today reported financial results for its fourth quarter ended December 31, 2024.

Full-Year 2024 Financial Highlights

(All comparisons versus full-year 2023)

Net income of $118.6 million ($4.71 per diluted share), versus $118.1 million ($4.45 per diluted share);
Adjusted net income of $94.0 million ($3.73 per diluted share), versus $101.7 million ($3.83 per diluted share);
Net investment income of $107.0 million, versus $106.5 million;
Gross premiums written of $776.3 million, versus $767.7 million;
Net premiums earned of $749.5 million, versus $721.9 million;
Net favorable prior year loss reserve development of $18.4 million, versus $44.9 million;
GAAP combined ratio of 97.9% (98.6% excluding the LPT), versus 95.0% (96.0% excluding the LPT);
Returned $71.7 million to stockholders through a combination of share repurchases and regular quarterly dividends;
Record number of ending policies in-force of 130,767, versus 126,409; and
Adjusted Book value per share of $50.71, up 9.8% including dividends declared.

Fourth Quarter 2024 Financial Highlights

(All comparisons versus fourth quarter 2023)

Net income of $28.3 million ($1.14 per diluted share), versus $45.6 million ($1.77 per diluted share);
Adjusted net income of $28.7 million ($1.15 per diluted share), versus $36.1 million ($1.40 per diluted share);
Net investment income of $26.7 million, versus $26.2 million;
Gross premiums written of $176.3 million, versus $178.2 million;
Net premiums earned of $190.2 million, versus $187.5 million;
Net favorable prior year loss reserve development of $9.1 million, versus $24.9 million;
GAAP combined ratio of 95.5% (including and excluding the LPT), versus 88.1% (88.8% excluding the LPT); and
Returned $17.5 million to stockholders through a combination of share repurchases and a regular quarterly dividend.

CEO Commentary

Chief Executive Officer Katherine Antonello commented: “We are pleased with our fourth quarter and full-year 2024 results. In fact, we closed the year with the highest levels of written and earned premium, ending in-force premium and policies and net investment income in the Company’s history.

We achieved solid growth in new and renewal premium in 2024, but that growth was offset by lower final audit premiums and endorsements. Our investment performance contributed nicely to our overall results and financial strength. In addition to the record level of net investment income we generated, we also recognized $24.1 million of after-tax unrealized gains from our common stocks and other investments.”

Ms. Antonello continued, “Our current accident year loss and LAE ratio on voluntary business was 64.0%, slightly above the loss and LAE ratio we maintained throughout 2023 and consistent with that of 2022. Our fourth quarter full reserve study led to the recognition of $8.6 million of net favorable prior year loss reserve development from our voluntary business. Those actions, coupled with our continual focus on our underwriting expenses, yielded an ex-LPT combined ratio of 95.5% for the fourth quarter, and 98.6% for the full year.

Our active capital management efforts throughout 2024, which consisted of $41.7 million of share repurchases and $30.0 million of regular quarterly dividends, contributed to year-over-year increases of 10.6% and 9.8% in our book value per share including the deferred gain and adjusted book value per share, respectively. Our focus on disciplined underwriting, prudent risk management, and strategic investments has positioned us strongly in the workers’ compensation insurance market, which is evidenced by the recent upgrade to our insurance companies’ AM Best Financial Strength Rating to “A” (Excellent).

Beyond our financial results, we continue to offer direct-to-consumer policies through the Cerity brand but, with the Cerity integration that was undertaken a year ago, we now do so without any meaningful fixed underwriting expenses. Further, our continued focus for 2025 will be on further appetite expansion, increased self-service options for policyholders, agents and injured workers and greater operational efficiencies.

Finally, we are saddened by the California wildfires and the impact on the Los Angeles area community and small businesses. Our thoughts are with all of those who have lost their homes, businesses, and livelihoods, and we are working with our partners to provide immediate and long-term assistance. As a monoline workers’ compensation insurance provider, these catastrophic events would not typically have a significant impact on our results, nor our long-term trends. We have analyzed the loss exposure and experience in the affected fire zones and have determined that approximately 1% of our in-force policies, representing less than 1% of our payroll exposure, are within the impacted areas and we are not currently experiencing any significant impacts from these devastating fires.”

Summary of Consolidated Fourth Quarter 2024 Results

(All comparisons versus fourth quarter 2023, unless otherwise noted)

Gross premiums written were $176.3 million, a decrease of 1%. The slight decrease was due to higher new and renewal business writings being offset by lower final audit premiums and endorsements. Net earned premiums were $190.2 million, an increase of 1%.

Losses and loss adjustment expenses were $113.2 million, an increase of 22%. The increase was due to higher earned premium, lower net favorable prior year loss reserve development and a slightly higher current accident year loss and loss adjustment expense provision. The Company recognized $9.1 million of favorable prior year loss reserve development versus $24.9 million. The Company’s loss and loss adjustment expense ratio was 59.5% for the quarter (including and excluding the LPT) versus 49.5% (50.2% excluding the LPT).

Total underwriting expenses (consisting of commissions, other underwriting and general and administrative expenses) were $68.6 million, a decrease of 5%. The decrease was primarily related to lower information technology expenses resulting from the Cerity integration plan that was executed in the fourth quarter of 2023, lower compensation-related expenses and a non-recurring commission adjustment, partially offset by higher bad debt expense. The Company’s total underwriting expense ratio was 36.0% versus 38.6%.

Within the 2024 periods presented herein, the Company refined its presentation of certain expenses associated with its involuntary premium. This revision, which was immaterial, had the effect of reducing both its fourth quarter and full year 2024 commission expense ratios by approximately 0.3 percentage points, and increasing its respective underwriting and general and administrative expense ratios by the same amount. This revision had no net effect on the Company’s total underwriting expenses or net income.

Net investment income was $26.7 million, an increase of 2%. The increase was due to higher investment yields, partially offset by lower invested balances of fixed maturity securities, short-term investments and cash and cash equivalents, as measured by amortized cost.

Net realized and unrealized gains (losses) on investments reflected on the income statement were $(0.4) million versus $12.1 million.

Interest and financing expenses were $0.1 million versus $0.6 million. The decrease resulted from the unwinding of our former Federal Home Loan Bank leveraged investment strategy in the fourth quarter of 2023.

Other expenses of $1.6 million recorded in the fourth quarter of 2023 consisted of a non-recurring charge in connection with previously capitalized cloud computing costs.

Federal and state income tax expense was $6.4 million (18.4% effective rate) versus $12.6 million (21.6% effective rate). The effective rates in each period reflect applicable income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, pre-privatization loss and loss adjustment expense reserve adjustments and deferred gain amortization.

The Company’s book value per share including the deferred gain of $47.35 increased by 10.6% during 2024 and its adjusted book value per share of $50.71 increased by 9.8% during 2024, each including dividends declared. These measures were favorably impacted by $24.1 million of net after tax unrealized gains arising from equity securities and other investments.

Share Repurchases and First Quarter 2025 Dividend Declaration

During the fourth quarter of 2024, the Company repurchased 193,857 shares of its common stock at an average price of $51.20 per share. During the period from January 1, 2025 through February 19, 2025, the Company repurchased a further 222,438 shares of its common stock at an average price of $49.38 per share. The Company currently has a remaining share repurchase authorization of $18.7 million.

On February 19, 2025, the Board of Directors declared a first quarter dividend of $0.30 per share. The dividend is payable on March 19, 2025 to stockholders of record as of March 5, 2025.

Earnings Conference Call and Webcast

The Company will host a conference call on Friday, February 21, 2025 at 11:00 a.m. Eastern Standard Time / 8:00 a.m. Pacific Standard Time.

To participate in the live conference call, you must first register here. Once registered you will receive dial-in numbers and a unique PIN number.

The webcast will be accessible on the Company’s website at www.employers.com through the “Investors” link.

Reconciliation of Non-GAAP Financial Measures to GAAP

Within this earnings release we present various financial measures, some of which are “non-GAAP financial measures” as defined in Regulation G pursuant to Section 401 of the Sarbanes – Oxley Act of 2002. A description of these non-GAAP financial measures, as well as a reconciliation of such non-GAAP measures to our most directly comparable GAAP financial measures is included in the attached Financial Supplement. Management believes that these non-GAAP measures are important to the Company’s investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

The information in this press release should be read in conjunction with the Financial Supplement that is attached to this press release and available on our website.

Forward-Looking Statements

In this press release, the Company and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections of, among other things, the Company’s future performance, economic or market conditions, including current or future levels of inflation, changes in interest rates, labor market expectations, catastrophic events or geo-political conditions, legislative or regulatory actions or court decisions, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. Certain of these statements may constitute “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” or “continue,” or other comparable terminology and their negatives. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company’s future performance. Factors that could cause the Company’s actual results to differ materially from those indicated by such forward-looking statements include, among other things, those discussed or identified from time to time in the Company’s public filings with the Securities and Exchange Commission (SEC), including the risks detailed in the Company’s Quarterly Reports on Form 10-Q and the Company’s Annual Reports on Form 10-K. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Filings with the SEC

The Company’s filings with the SEC and its quarterly investor presentations can be accessed through the “Investors” link on the Company’s website, www.employers.com. The Company’s filings with the SEC can also be accessed through the SEC’s EDGAR Database at www.sec.gov (EDGAR CIK No. 0001379041).

About Employers Holdings, Inc.

Employers Holdings, Inc. (NYSE: EIG), is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services (collectively “EMPLOYERS®”) focused on small and mid-sized businesses engaged in low-to-medium hazard industries. EMPLOYERS leverages over a century of experience to deliver comprehensive coverage solutions that meet the unique needs of its customers. Drawing from its long history and extensive knowledge, EMPLOYERS empowers businesses by protecting their most valuable asset – their employees – through exceptional claims management, loss control, and risk management services, creating safer work environments.

EMPLOYERS is also proud to offer Cerity®, which is focused on providing digital-first, direct-to-consumer workers’ compensation insurance solutions with fast, and affordable coverage options through a user-friendly online platform.

EMPLOYERS operates throughout the United States, apart from four states that are served exclusively by their state funds. Insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company and Cerity Insurance Company, all rated A (Excellent) by AM Best. Not all companies do business in all jurisdictions. EIG Services, Inc., and Cerity Services, Inc., are subsidiaries of Employers Holdings, Inc. EMPLOYERS® is a registered trademark of EIG Services, Inc., and Cerity® is a registered trademark of Cerity Services, Inc. For more information, please visit www.employers.com and www.cerity.com.

Contact Information

Mike Paquette (775) 327-2562 or mpaquette@employers.com

EMPLOYERS HOLDINGS, INC.
Table of Contents

Page

Consolidated Financial Highlights
Summary Consolidated Balance Sheets
Summary Consolidated Income Statements
Return on Equity
Combined Ratios
Roll-forward of Unpaid Losses and LAE
Consolidated Investment Portfolio
Book Value Per Share
Earnings Per Share
Non-GAAP Financial Measures

EMPLOYERS HOLDINGS, INC. Consolidated Financial Highlights (unaudited) $ in millions, except per share amounts

		Three Months Ended								Years Ended
		December 31,								December 31,
		2024			2023		% change			2024			2023		% change
*Selected financial highlights:*
Gross premiums written	$	176.3		$	178.2		(1	)%	$	776.3		$	767.7		1	%
Net premiums written		174.7			176.4		(1	)		769.5			760.6		1
Net premiums earned		190.2			187.5		1			749.5			721.9		4
Net investment income		26.7			26.2		2			107.0			106.5		—
Net income excluding LPT ⁽¹⁾		28.4			44.4		(36	)		113.0			110.9		2
Adjusted net income ⁽¹⁾		28.7			36.1		(20	)		94.0			101.7		(8	)
Net income before income taxes		34.7			58.2		(40	)		146.7			148.4		(1	)
Net income		28.3			45.6		(38	)		118.6			118.1		—
Comprehensive income (loss)		(8.9	)		116.2		(108	)		122.1			171.0		(29	)
Total assets										3,541.3			3,550.4		—
Stockholders’ equity										1,068.7			1,013.9		5
Stockholders’ equity including the Deferred Gain ⁽²⁾										1,162.7			1,113.1		4
Adjusted stockholders’ equity ⁽²⁾										1,245.2			1,199.1		4
Annualized adjusted return on stockholders’ equity ⁽³⁾		9.3	%		12.2	%	(24	)%		7.7	%		8.5	%	(9	)
*Amounts per share:*
Cash dividends declared per share	$	0.30		$	0.28		7	%	$	1.18		$	1.10		7	%
Earnings per diluted share ⁽⁴⁾		1.14			1.77		(36	)		4.71			4.45		6
Earnings per diluted share excluding LPT ⁽⁴⁾					1.72		(34	)		4.49			4.18		7
Adjusted earnings per diluted share⁽⁴⁾		1.14			1.40		(18	)		3.73			3.83		(3	)
Book value per share ⁽²⁾		1.15								43.52			39.96		9
Book value per share including the Deferred Gain ⁽²⁾										47.35			43.88		8
Adjusted book value per share ⁽²⁾										50.71			47.26		7
Combined ratio excluding LPT: ⁽⁵⁾
Loss and loss adjustment expense ratio:
Current year		64.2	%		63.5	%				64.1	%		63.4	%
Prior Year		(4.7	)		(13.3	)				(2.5	)		(6.2	)
Loss and loss adjustment expense ratio		59.5	%		50.2	%				61.6	%		57.2	%
Commission expense ratio		12.8			14.0					13.5			13.9
Underwriting and general and administrative expense ratio		23.2			24.6					23.5			24.9
Combined ratio excluding LPT		95.5	%		88.8	%				98.6	%		96.0	%

(1) See Page 5 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (2) See Page 10 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (3) See Page 6 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (4) See Page 11 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (5) See Page 7 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.
Summary Consolidated Balance Sheets (unaudited)
$ in millions, except per share amounts
	December 31, 2024				December 31, 2023
ASSETS
Available for sale:
Investments, cash and cash equivalents	$	2,532.4		$	2,504.7
Accrued investment income		15.7			16.3
Premiums receivable, net		361.3			359.4
Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE		417.8			433.8
Deferred policy acquisition costs		59.6			55.6
Deferred income taxes, net		38.3			43.4
Contingent commission receivable—LPT Agreement		—			14.2
Other assets		116.2			123.0
Total assets	$	3,541.3		$	3,550.4

LIABILITIES
Unpaid losses and LAE	$	1,808.2		$	1,884.5
Unearned premiums		402.2			379.7
Commissions and premium taxes payable		65.8			66.0
Deferred Gain		94.0			99.2
Other liabilities		102.4			107.1
Total liabilities	$	2,472.6		$	2,536.5

STOCKHOLDERS’ EQUITY
Common stock and additional paid-in capital	$	424.8		$	420.4
Retained earnings		1,472.9			1,384.3
Accumulated other comprehensive loss, net		(82.5	)		(86.0	)
Treasury stock, at cost		(746.5	)		(704.8	)
Total stockholders’ equity		1,068.7			1,013.9
Total liabilities and stockholders’ equity	$	3,541.3		$	3,550.4

Stockholders’ equity including the Deferred Gain ⁽¹⁾	$	1,162.7		$	1,113.1
Adjusted stockholders’ equity ⁽¹⁾		1,245.2			1,199.1
Book value per share ⁽¹⁾	$	43.52		$	39.96
Book value per share including the Deferred Gain ⁽¹⁾		47.35			43.88
Adjusted book value per share ⁽¹⁾		50.71			47.26

(1) See Page 10 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC. Summary Consolidated Income Statements (unaudited) $ in millions

	Three Months Ended						Years Ended
	December 31,						December 31,
		2024			2023			2024			2023
Revenues:
Net premiums earned	$	190.2		$	187.5		$	749.5		$	721.9
Net investment income		26.7			26.2			107.0			106.5
Net realized and unrealized (losses) gains on investments ⁽¹⁾		(0.4	)		12.1			24.1			22.7
Other income (loss)		0.1			(0.1	)		0.1			(0.2	)
Total revenues		216.6			225.7			880.7			850.9
Expenses:
Losses and LAE incurred		113.2			92.9			456.2			405.7
Commission expense		24.4			26.3			101.2			100.0
Underwriting and general and administrative expenses		44.2			46.1			176.5			180.0
Interest and financing expenses		0.1			0.6			0.1			5.8
Other expenses		—			1.6			—			11.0
Total expenses		(181.9	)		(167.5	)		(734.0	)		(702.5	)
Net income before income taxes		34.7			58.2			146.7			148.4
Income tax expense		(6.4	)		(12.6	)		(28.1	)		(30.3	)
Net income		28.3			45.6			118.6			118.1
Unrealized AFS investment (losses) gains arising during the period, net of tax		(39.2	)		66.6			(3.5	)		46.6
Reclassification adjustment for realized AFS investment gains in net income, net of tax		2.0			4.0			7.0			6.3
Total Comprehensive income	$	(8.9	)	$	116.2		$	122.1		$	171.0
Net income	$	28.3		$	45.6		$	118.6		$	118.1
Amortization of the Deferred Gain – losses		(1.6	)		(1.5	)		(6.1	)		(6.3	)
Amortization of the Deferred Gain – contingent commission		—			(0.3	)		(0.8	)		(1.5	)
LPT reserve adjustment		1.7			0.9			1.7			0.9
LPT contingent commission adjustments		—			(0.3	)		(0.4	)		(0.3	)
Net income excluding LPT Agreement ⁽²⁾	$	28.4		$	44.4		$	113.0		$	110.9
Net realized and unrealized losses (gains) on investments		0.4			(12.1	)		(24.1	)		(22.7	)
Lease termination and asset impairment charges		—			1.6			—			11.0
Income tax (benefit) expense related to items excluded from Net income		(0.1	)		2.2			5.1			2.5
Adjusted net income ⁽²⁾	$	28.7		$	36.1		$	94.0		$	101.7

(1) Includes unrealized gains on equity securities and other invested assets of $2.4 million and $17.8 million for the three months ended December 31, 2024 and 2023, respectively, and $30.5 million and $36.2 million for the year ended December 31, 2024 and 2023, respectively (2) See Page 12 regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC. Return on Equity (unaudited) $ in millions

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

Net income	A	$	28.3		$	45.6		$	118.6		$	118.1
Impact of the LPT Agreement			0.1			(1.2	)		(5.6	)		(7.2	)
Net realized and unrealized losses (gains) on investments			0.4			(12.1	)		(24.1	)		(22.7	)
Lease termination and asset impairment charges			—			1.6			—			11.0
Income tax (benefit) expense related to items excluded from Net income			(0.1	)		2.2			5.1			2.5
Adjusted net income ⁽¹⁾	B	$	28.7		$	36.1		$	94.0		$	101.7

Stockholders’ equity – end of period		$	1,068.7		$	1,013.9		$	1,068.7		$	1,013.9
Stockholders’ equity – beginning of period			1,093.4			919.0			1,013.9			944.2
Average stockholders’ equity	C	$	1,081.1		$	966.5		$	1,041.3		$	979.1

Stockholders’ equity – end of period		$	1,068.7		$	1,013.9		$	1,068.7		$	1,013.9
Deferred Gain – end of period			94.0			99.2			94.0			99.2
Accumulated other comprehensive loss, before taxes – end of period			104.5			108.9			104.5			108.9
Income tax related to accumulated other comprehensive loss – end of period			(22.0	)		(22.9	)		(22.0	)		(22.9	)
Adjusted stockholders’ equity – end of period			1,245.2			1,199.1			1,245.2			1,199.1
Adjusted stockholders’ equity – beginning of period			1,232.5			1,175.8			1,199.1			1,189.2
Average adjusted stockholders’ equity ⁽¹⁾	D	$	1,238.9		$	1,187.5		$	1,222.2		$	1,194.2

Return on stockholders’ equity	A / C		2.6	%		4.7	%		11.4	%		12.1	%
Annualized return on stockholders’ equity			10.5			18.9

Adjusted return on stockholders’ equity ⁽¹⁾	B / D		2.3			3.0			7.7			8.5
Annualized adjusted return on stockholders’ equity ⁽¹⁾			9.3			12.2

(1) See Page 12 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC. Combined Ratios (unaudited) $ in millions, except per share amounts

		Three Months Ended						Years Ended
		December 31,						December 31,
			2024			2023			2024			2023
Net premiums earned	A	$	190.2		$	187.5		$	749.5		$	721.9
Losses and LAE incurred	B		113.2			92.9			456.2			405.7
Amortization of deferred reinsurance gain – losses			1.6			1.5			6.1			6.3
Amortization of deferred reinsurance gain – contingent commission			—			0.3			0.8			1.5
LPT reserve adjustment			(1.7	)		(0.9	)		(1.7	)		(0.9	)
LPT contingent commission adjustments			—			0.3			0.4			0.3
Losses and LAE excluding LPT ⁽¹⁾	C	$	113.1		$	94.1		$	461.8		$	412.9
Prior year loss reserve development			(9.1	)		(24.9	)		(18.4	)		(44.9	)
Losses and LAE excluding LPT – current accident year	D	$	122.2		$	119.0		$	480.2		$	457.8
Commission expense	E	$	24.4		$	26.3		$	101.2		$	100.0
Underwriting and general and administrative expense	F	$	44.2		$	46.1		$	176.5		$	180.0
GAAP combined ratio:
Loss and LAE ratio	B/A		59.5	%		49.5	%		60.9	%		56.2	%
Commission expense ratio	E/A		12.8			14.0			13.5			13.9
Underwriting and general and administrative expense ratio	F/A		23.2			24.6			23.5			24.9
GAAP combined ratio			95.5	%		88.1	%		97.9	%		95.0	%
Combined ratio excluding LPT: ⁽¹⁾
Loss and LAE ratio excluding LPT	C/A		59.5	%		50.2	%		61.6	%		57.2	%
Commission expense ratio	E/A		12.8			14.0			13.5			13.9
Underwriting and general and administrative expense ratio	F/A		23.2			24.6			23.5			24.9
Combined ratio excluding LPT			95.5	%		88.8	%		98.6	%		96.0	%
Combined ratio excluding LPT: current accident year: ⁽¹⁾
Loss and LAE ratio excluding LPT	D/A		64.2	%		63.5	%		64.1	%		63.4	%
Commission expense ratio	E/A		12.8			14.0			13.5			13.9
Underwriting and general and administrative expenses ratio	F/A		23.2			24.6			23.5			24.9
Combined ratio excluding LPT: current accident year			100.2	%		102.1	%		101.1	%		102.2	%

(1) See Page 12 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC. Roll-forward of Unpaid Losses and LAE (unaudited) $ in millions

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

Unpaid losses and LAE at beginning of period	$	1,836.5		$	1,913.4		$	1,884.5		$	1,960.7
Less reinsurance recoverable on unpaid losses and LAE		413.1			426.6			428.4			445.4
Net unpaid losses and LAE at beginning of period		1,423.4			1,486.8			1,456.1			1,515.3
Losses and LAE incurred:
Current year		122.2			119.1			480.2			457.8
Prior years – voluntary business		(8.6	)		(24.6	)		(17.9	)		(44.6		)
Prior years – involuntary business		(0.5	)		(0.3	)		(0.5	)		(0.3		)
Total losses incurred		113.1			94.2			461.8			412.9
Losses and LAE paid:
Current year		57.9			47.6			127.1			111.7
Prior years		82.8			77.3			395.0			360.4
Total paid losses		140.7			124.9			522.1			472.1
Net unpaid losses and LAE at end of period		1,395.8			1,456.1			1,395.8			1,456.1
Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE		412.4			428.4			412.4			428.4
Unpaid losses and LAE at end of period	$	1,808.2		$	1,884.5		$	1,808.2		$		1,884.5

Total losses and LAE shown in the above table exclude amortization of the Deferred Gain, LPT Reserve Adjustments, and LPT Contingent Commission Adjustments, which totaled $(0.1) million and $1.2 million for the three months ended December 31, 2024 and 2023, respectively, and $5.6 million and $7.2 million for the year ended December 31, 2024 and 2023, respectively.

EMPLOYERS HOLDINGS, INC. Consolidated Investment Portfolio (unaudited) $ in millions

	December 31, 2024										December 31, 2023
Investment Positions:		Cost or Amortized Cost ⁽¹⁾		Net Unrealized Gain (Loss)			Fair Value	%				Fair Value	%
Fixed maturity securities	$	2,203.1	$	(104.6)		$	2,097.4	83	%		$	1,936.3	77	%
Equity securities		150.7		109.1			259.8	10				217.2	9
Other invested assets		90.9		15.7			106.6	4				91.5	4
Short-term investments		0.1		—			0.1	—				33.1	1
Cash and cash equivalents		68.3		—			68.3	3				226.4	9
Restricted cash and cash equivalents		0.2		—			0.2	—				0.2	—
Total investments and cash	$	2,513.3	$	20.2		$	2,532.4	100	%		$	2,504.7	100	%

Breakout of Fixed Maturity Securities:
U.S. Treasuries and Agencies	$	61.4	$	(2.1	)	$	59.3	3	%		$	60.5	3	%
States and Municipalities		163.0		(3.7	)		159.3	8				210.2	11
Corporate Securities		849.2		(46.0	)		803.0	38				895.8	46
Mortgage-Backed Securities		733.1		(47.9	)		684.9	33				426.0	22
Asset-Backed Securities		216.0		(2.0	)		214.0	10				128.0	7
Collateralized loan obligations		35.5		(0.2	)		35.3	2				91.5	5
Bank loans and other		144.9		(2.7	)		141.6	7				124.3	6
Total fixed maturity securities	$	2,203.1	$	(104.6	)	$	2,097.4	100	%		$	1,936.3	100	%
Weighted average ending book yield on fixed income securities, cash, and cash equivalents							4.5		%			4.3		%
Average credit quality (S&P)						A+				A
Duration							4.5					4.5

(1) Amortized cost excludes an allowance for current expected credit losses (CECL) of $1.1 million

EMPLOYERS HOLDINGS, INC. Book Value Per Share (unaudited) $ in millions, except per share amounts

			December 31, 2024			December 31, 2023
Numerators:
Stockholders’ equity	A	$	1,068.7		$	1,013.9
Deferred Gain			94.0			99.2
Stockholders’ equity including the Deferred Gain ⁽¹⁾	B		1,162.7			1,113.1
Accumulated other comprehensive loss, before taxes			104.5			108.9
Income taxes related to accumulated other comprehensive loss, before taxes			(22.0	)		(22.9	)
Adjusted stockholders’ equity ⁽¹⁾	C	$	1,245.2		$	1,199.1

Denominator (shares outstanding)	D		24,556,706			25,369,753

Book value per share ⁽¹⁾	A / D	$	43.52		$	39.96
Book value per share including the Deferred Gain ⁽¹⁾	B / D		47.35			43.88
Adjusted book value per share ⁽¹⁾	C / D		50.71			47.26

Cash dividends declared per share		$	1.18		$	1.10

YTD Change in: ⁽²⁾
Book value per share			11.9	%		18.1	%
Book value per share including the Deferred Gain			10.6			16.3
Adjusted book value per share			9.8			10.5

(1) See Page 12 for information regarding our use of Non-GAAP Financial Measures. (2) Reflects the change per share after taking into account dividends declared in the period.

EMPLOYERS HOLDINGS, INC. Earnings Per Share (unaudited) $ in millions, except per share amounts

		Three Months Ended						Years Ended
		December 31,						December 31,
			2024			2023			2024			2023
Numerators:
Net income	A	$	28.3		$	45.6		$	118.6		$	118.1
Impact of the LPT Agreement			0.1			(1.2	)		(5.6	)		(7.2	)
Net income excluding LPT ⁽¹⁾	B	$	28.4		$	44.4		$	113.0		$	110.9
Net realized and unrealized (gains) losses on investments			0.4			(12.1	)		(24.1	)		(22.7	)
Lease termination and asset impairment charges			—			1.6			—			11.0
Income tax (benefit) expense related to items excluded from Net income			(0.1	)		2.2			5.1			2.5
Adjusted net income ⁽¹⁾	C	$	28.7		$	36.1		$	94.0		$	101.7

Denominators:
Average common shares outstanding (basic)	D		24,725,425			25,645,821			25,050,605			26,368,801
Average common shares outstanding (diluted)	E		24,902,459			25,801,380			25,194,814			26,523,651

Earnings per share:
Basic	A / D	$	1.14		$	1.78		$	4.73		$	4.48
Diluted	A / E		1.14			1.77			4.71			4.45

Earnings per share excluding LPT: ⁽¹⁾
Basic	B / D		1.15			1.73			4.51			4.21
Diluted	B / E		1.14			1.72			4.49			4.18

Adjusted earnings per share: ⁽¹⁾
Basic	C / D	$	1.16		$	1.41		$	3.75		$	3.86
Diluted	C / E		1.15			1.40			3.73			3.83

(1) See Page 12 for information regarding our use of Non-GAAP Financial Measures.

Non-GAAP Financial Measures

Within this earnings release we present the following measures, each of which are “non-GAAP financial measures.” A reconciliation of these measures to the Company’s most directly comparable GAAP financial measures is included herein. Management believes that these non-GAAP measures are important to the Company’s investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

The LPT Agreement is a non-recurring transaction that no longer provides any ongoing cash benefits to the Company. Management believes that providing non-GAAP measures that exclude the effects of the LPT Agreement (amortization of deferred reinsurance gain, adjustments to LPT Agreement ceded reserves and adjustments to the contingent commission receivable) is useful in providing investors, analysts and other interested parties a meaningful understanding of the Company’s ongoing underwriting performance.

Deferred reinsurance gain (Deferred Gain) reflects the unamortized gain from the LPT Agreement. This gain has been deferred and is being amortized using the recovery method, whereby the amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries, except for the contingent profit commission, which was amortized through June 30, 2024, the date of its final determination. Amortization is reflected in losses and LAE incurred.

Adjusted net income (see Page 5 for calculations) is net income excluding the effects of the LPT Agreement, and net realized and unrealized gains and losses on investments (net of tax), and any miscellaneous non-recurring transactions (net of tax). Management believes that providing this non-GAAP measures is helpful to investors, analysts and other interested parties in identifying trends in the Company’s operating performance because such items have limited significance to its ongoing operations or can be impacted by both discretionary and other economic factors and may not represent operating trends.

Stockholders’ equity including the Deferred Gain (see Page 10 for calculations) is stockholders’ equity including the Deferred Gain. Management believes that providing this non-GAAP measure is useful in providing investors, analysts and other interested parties a meaningful measure of the Company’s total underwriting capital.

Adjusted stockholders’ equity (see Page 10 for calculations) is stockholders’ equity including the Deferred Gain, less accumulated other comprehensive income (net of tax). Management believes that providing this non-GAAP measure is useful to investors, analysts and other interested parties since it serves as the denominator to the Company’s adjusted return on stockholders’ equity metric.

Return on stockholders’ equity and Adjusted return on stockholders’ equity (see Page 6 for calculations). Management believes that these profitability measures are widely used by our investors, analysts and other interested parties.

Book value per share, Book value per share including the Deferred Gain, and Adjusted book value per share (see Page 10 for calculations). Management believes that these valuation measures are widely used by our investors, analysts and other interested parties.

Net income excluding LPT (see Page 5 for calculations). Management believes that these performance and underwriting measures are widely used by our investors, analysts and other interested parties.

The MIL Network –

February 21, 2025

MIL-OSI USA: ICYMI: Senator Reverend Warnock Spotlights Dangerous Cuts to Medicaid in Presser Addressing Washington Politicians’ Proposed Tax Bill

US Senate News:

Source: United States Senator Reverend Raphael Warnock – Georgia

ICYMI: Senator Reverend Warnock Spotlights Dangerous Cuts to Medicaid in Presser Addressing Washington Politicians’ Proposed Tax Bill

On Wednesday afternoon, Senator Reverend Warnock addressed the impact of proposed Republican cuts to Medicaid on ordinary Georgians
The press conference came hours after President Trump endorsed the House Republican budget plan, which includes scathing cuts to Medicaid and other programs that hard working Georgians rely on
Senator Reverend Warnock has long championed Medicaid protections and closing the health care coverage gap
Senator Reverend Warnock: “This is backward, it’s not only immoral it’s impractical, we’re making the American workforce sicker and weaker, […] we’ve got to straighten out this mess and center to the people”

Above: Senator Reverend Warnock during the Hands Off Medicaid press conference
Washington, D.C. – On Wednesday afternoon, U.S. Senator Reverend Raphael Warnock (D-GA) outlined the dire impacts of potential Medicaid cuts on ordinary Georgians. The Senator pushed back on cuts to Medicaid and other key programs proposed by Washington politicians in the recent budget plan.
The proposed plans potentially set up deep cuts to Medicaid, threatening to shut down more rural hospitals, and rip away healthcare from some of the nation’s most vulnerable communities, including thousands of Georgia seniors and children.
“A budget is more than a fiscal document. It is also a moral document. Show me your budget and I’ll show you who you think matters, who’s in and who’s out, who you think is expendable, where your priorities are,” said Senator Reverend Warnock.
This is backward, it’s not only immoral it’s impractical, we’re making the American workforce sicker and weaker, […] we’ve got to straighten out this mess and center to the people,” Senator Reverend Warnock concluded.
The press conference was hosted by U.S. Senator Tammy Baldwin (D-WI) and also included U.S. Senators Ron Wyden (D-OR), Patty Murray (D-WA), Catherine Cortez Masto (D-NV), Peter Welch (D-VT), and Maggie Hassan (D-NH). The press conference is part of the Health Care Strike Team, created by Senate Democrats to push back on Republicans’ reconciliation efforts.
Senator Warnock has long championed efforts to expand affordable health care access, starting with his advocacy to close the health care coverage gap in Georgia. In addition to pushing for solutions to close the coverage gap, Senator Warnock led a delegation of Georgia lawmakers in urging the Centers for Medicare & Medicaid Services to provide tools to Medicaid non-expansion states like Georgia to help them protect health care access for Medicaid enrollees who lose eligibility after the end of the public health emergency declaration.
Watch Senator Warnock’s remarks HERE.
Below full remarks from Senator Warnock at press conference:
“A budget is more than a fiscal document. It is also a moral document. Show me your budget and I’ll show you who you think matters, who’s in and who’s out, who you think is expendable, where your priorities are.”
“As we take stock of what Washington Republicans are trying to do now, this budget, if it were an EKG (electrocardiogram), would suggest that Washington Republicans have a heart problem and that they are in need of moral surgery.”
“The consequences of the actions that they are trying to take in this moment hits into the lives of ordinary people. I think too often those of us who work in this space and those who cover us, sort of cover the politicians. And when the politics becomes about the politicians, we lose site of where and how this actually matters for ordinary people. What they’re trying to do is both immoral and impractical. I have been working in this health care fight for years, long before I decided to run for the United States Senate, I was fighting for health care in Georgia.”
“I remember when we passed the Affordable Care Act, how glad I was that that happened and I went into the Georgia Capitol and staged to sit-in in the governor’s office because that governor, and the next governor, and the governor after that have all refused to expand Medicaid in Georgia. It suggested that politicians have a heart problem.”
“Jesus said, ‘Where your treasure is, there your heart will be also.’ Dr. King, who pastored the church where I now serve, said that ‘Of all the injustices, inequality in health care is the most shocking and the most inhumane.’”
“They are busy trying to pass a tax cut for the wealthiest people in America, billionaires and millionaires, and they’re doing it on the backs of ordinary people. This cannot stand.”
“We will continue to hold unaccountable and we encourage all of our constituents to hold them accountable. And because I’ve been focused on this issue, glad now to serve on the finance committee under the great Ron Wyden and we’ll be focused on these issues. I got arrested in Georgia trying to get healthcare for folks. Staging a sit-in and in the governor’s office. In fact, I got arrested in this Capitol in 2017 when they were trying to do the same thing, pass the $2 trillion dollar tax cut at the expense of the poor and the farm bill at the expense of the children’s health care program, but I decided to move from being an agitator to a legislator, but we got to keep on agitating, even if it’s inside of these halls.”
“When I came to the Senate, I talked to all of my colleagues here in the Democratic Caucus and they agreed with me that we needed to provide Georgia and other non-expansion states some more incentives to expand. Remember, we got 14.2 billion for the non-expansion states to expand, $2 billion just for Georgia alone. You know what Georgia did? Georgia left that money on the table and left over 600,000 Georgians in the healthcare coverage gap.”
“Some got the message, North Carolina took those incentives and they expanded, a purple state, Kentucky expanded. Now they’re trying to go after these incentives. They want to go after the tax credits that will allow people to get health care and this has consequences on the lives of ordinary people. We’ve seen a dozen hospitals in Georgia close over the last decade, and those hospitals could be opened with paying customers if they could get access to Medicaid.”
“When I think about this, I often think about Heather Payne, who is a traveling nurse from Dalton, Georgia. Georgia has a health care program, if you want to call it that. That has not enrolled 10,000 people yet. Heather Payne is one of those people stuck in the gap. That’s why my colleagues pointed out, very often we talk about Medicaid expansion, we’re talking about the working poor, people who work every single day. Heather Payne is a traveling nurse who was taking care of patients even during COVID, and then because she was a traveling nurse, some days she had health care, sometimes she didn’t have health care. She wasn’t poor enough to get conventional Medicaid and the programs that she was eligible for would cost between 500 and $1,000 a month, it was too much.”
“One day she realized that something was happening in her body. She knew something wasn’t right, but she didn’t have enough money to see what it was, and finally, she saved enough money of her own cash to finally go and see a neurologist. And the neurologist said, you’ve actually had a series of mini-strokes that require additional care. And so here she is, she needs additional care, but she doesn’t have health care. And so she’s literally caught up in the gap between the refusal of a state of Georgia to expand Medicaid and these onerous work requirements in states like Georgia. She’s sick, too sick to work, and she’s being asked to prove that she can work, or that she is working, so that she can get health care.”
“Why’d they give Elon Musk and people like him a tax cut? Let me put this in perspective, in closing, and nobody believes a Baptist preacher when he says ‘In closing’, I was proud that we got $14 billion to help these states to expand Medicaid. Elon Musk has got $18 billion in incentives from our federal government. And he’s the one who’s telling us that the rest of us need to tighten our belts.”
“This is backwards, it’s not only immoral it’s and impractical, we’re making the American workforce sicker and weaker, which I think ultimately is a national security issue, and so we’ve got a straighten out this mess and center to the people. People like Heather Payne, who’s waiting right in this very moment to get the health care she deserves.”

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: A Snapshot of Trump’s First Month: Making America Safe Again

Source: US Federal Emergency Management Agency

Headline: A Snapshot of Trump’s First Month: Making America Safe Again

em>“President Trump said from the start: criminal illegals have no place in our homeland. He is keeping his promise.” – Secretary of Homeland Security Kristi Noem
WASHINGTON – In a single month, President Trump and Secretary Noem have made massive strides to address the crisis at the southern border and remove violent criminal aliens from American communities. This is just the beginning of the golden age of America. PROMISES MADE, PROMISES KEPT:

On day one, President Trump declared a national emergency at the southern border and restarted construction of the border wall.
President Trump instantly reinstated “Remain in Mexico” and ended catch and release.
The Trump administration has empowered our brave men and women in ICE, Border Patrol, and Coast Guard to use common sense to do their jobs effectively.
DHS has repealed Biden Era rules that allowed criminal aliens to hide from law enforcement in places like schools and churches to avoid arrest.
DHS returned to using the term “illegal alien” to use statutory language and stop political correctness from hindering law enforcement.
ICE arrests of criminal aliens have doubled and arrests of fugitives at large has tripled.
Daily border encounters have plunged 93% since President Trump took office.
To fulfill President Trump’s promise to carry out mass deportations, the administration is detaining illegal aliens, including violent criminals, at Guantanamo Bay.
President Trump designated international cartels and other criminal gangs, such as MS-13 and Tren de Aragua, as Foreign Terrorist Organizations.
President Trump signed the Laken Riley Act which mandates the federal detention of illegal immigrants who are accused of theft, burglary, assaulting a law enforcement officer, and any crime that causes death or serious bodily injury.
President Trump stopped the broad abuse of humanitarian parole and returned the program to a case-by-case basis.
Secretary Noem ended the previous administration’s extension of Venezuelan Temporary Protected Status.
DHS froze all grants to non-profit organizations that facilitate illegal immigration.
DHS deputized the Texas National Guard, Drug Enforcement Administration, Bureau of Prisons, U.S. Marshals, the Bureau of Alcohol, Tobacco, Firearms and Explosives, members of the State Department and the IRS to help with immigration operations.
Secretary Noem clawed back $80 million that FEMA deep state activists unilaterally gave to put illegal aliens up in luxury New York City hotels.

Bottom Line: Since President Trump was inaugurated, he’s made it clear there is a new sheriff in town. The President and Secretary Noem will continue fighting every day to secure our borders and keep American communities safe.

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: Secretary Noem Deputized State Department Officials as Immigration Officers

Source: US Federal Emergency Management Agency

Headline: Secretary Noem Deputized State Department Officials as Immigration Officers

DHS has also deputized IRS employees and DOJ employees to help with immigration enforcement actions. These deputations are a key part of giving law enforcement the resources they need to fulfill President Trump’s promise to the American people to carry out mass deportations.

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: Summary of the Joint NASA LCLUC–SARI Synthesis Meeting

Source: NASA

Introduction
The NASA Land-Cover and Land-Use Change (LCLUC) is an interdisciplinary scientific program within NASA’s Earth Science program that aims to develop the capability for periodic global inventories of land use and land cover from space. The program’s goal is to develop the mapping, monitoring and modeling capabilities necessary to simulate the processes taking place and evaluate the consequences of observed and predicted changes. The South/Southeast Asia Research Initiative (SARI) has a similar goal for South/Southeast Asia, as it seeks to develop innovative regional research, education, and capacity building programs involving state-of-the-art remote sensing, natural sciences, engineering, and social sciences to enrich land use/cover change (LUCC) science in South/Southeast Asia. Thus it makes sense for these two entities to periodically meet jointly to discuss their endeavors.
The latest of these joint meetings took place January 1–February 2, 2024, in Hanoi, Vietnam. A total of 85 participants attended the three-day, in-person meeting—see Photo. A total of 85 participants attended the three-day, in-person meeting. The attendees represented multiple international institutions, including NASA (Headquarters and Centers), the University of Maryland, College Park (UMD), other American academic institutions, the Vietnam National Space Center (VNSC, the event host), the Vietnam National University’s University of Engineering and Technology, and Ho Chi Minh University of Technology, the Japanese National Institute of Environmental Studies (NIES), Center for Environmental Sciences, and the University of Tokyo. In addition, several international programs participated, including GEO Global Agricultural Monitoring (GEOGLAM), the System for Analysis, Research and Training (START), Global Observation of Forest and Land-use Dynamics (GOFC–GOLD), and NASA Harvest.

Meeting Overview
The purpose of the 2024 NASA LCLUC–SARI Synthesis meeting was to discuss LUCC issues – with a particular focus on their impact on Southeast Asian countries. Presenters highlighted ongoing projects aimed to advance our understanding of the spatial extent, intensity, social consequences, and impacts on the environment in South/Southeast Asian countries. While presenters reported on specific science results, they also were intentional to review and synthesize work from other related projects going on in Southeast Asia.
Meeting Goal
The meeting’s overarching goal was to create a comprehensive and holistic understanding of various LUCC issues by examining them from multiple angles, including: collating information; employing interdisciplinary approaches; integrating research; identifying key insights; and enhancing regional collaborations. The meeting sought to bring the investigators together to bridge gaps, promote collaborations, and advance knowledge regarding LUCC issues in the region. The meeting format also provided ample time between sessions for networking to promote coordination and collaboration among scientists and teams.
Meeting and Summary Format
The meeting consisted of seven sessions that focused on various LUCC issues. The summary report that follows is organized by day and then by session. All presentations in Session I and II are summarized (i.e., with all speakers, affiliations, and appropriate titles identified). The keynote presentation(s) from Sessions III–VI are summarized similarly. The technical presentations in each of these sessions are presented as narrative summaries. Session VII consisted of topical discussions to close out the meeting and summaries of these discussions are included herein. Sessions III–VI also included panel discussions, but to keep the article length more manageable, summaries of these discussions have been omitted. Readers interested in learning more about the panel discussions or viewing any of these presentations in full can access the information on the Joint LCLUC–SARI Synthesis meeting website.
DAY ONE
The first day of the meeting included welcoming remarks from the U.S. Ambassador to Vietnam (Session I), program executives of LCLUC and SARI, as well as from national space agencies in South and Southeast Asia (Session II), and other LCLUC-thematic/overview presentations (Session III).
Session 1: Welcoming Remarks
Garik Gutman [NASA Headquarters—LCLUC Program Manager], Vu Tuan [VNSC’s Vietnam Academy of Science and Technology (VAST)—Vice Director General], Chris Justice [University of Maryland, College Park (UMD)—LCLUC Program Scientist], Matsunaga Tsuneo [National Institute of Environmental Studies (NIES), Japan], and Krishna Vadrevu [NASA’s Marshall Space Flight Center—SARI Lead] delivered opening remarks that highlighted collaborations across air pollution, agriculture, forestry, urban development, and other LUCC research areas. While each of the speakers covered different topics, they emphasized common themes, including advancing new science algorithms, co-developing products, and fostering applications through capacity building and training.
After the opening remarks, special guest Marc Knapper [U.S. Ambassador to Vietnam] gave a presentation in which he emphasized the value of collaborative research between U.S. and Vietnamese scientists to address environmental challenges – especially climate change and LUCC issues. He expressed appreciation to the meeting organizers for promoting these collaborations and highlighted the joint initiatives between NASA and the U.S. Agency for International Development (USAID) to monitor environmental health and climate change, develop policies to reduce emissions, and support adaptation in agriculture. The U.S.–Vietnam Comprehensive Strategic Partnership emphasizes the commitment to address climate challenges and advance bilateral research. He concluded by encouraging active participation from all attendees and stressed the need for ongoing international collaboration to develop effective LUCC policies.
Session-II: Programmatic and Space Agency Presentations
NOTE: Other than Ambassador Knapper, the presenters in Session I gave welcoming remarks and programmatic and/or space agency presentations in Session II,.
Garik Gutman began the second session by presenting an overview of the LCLUC program, which aims to enhance understanding of LUCC dynamics and environmental implications by integrating diverse data sources (i.e., satellite remote sensing) with socioeconomic and ecological datasets for a comprehensive view of land-use change drivers and consequences. Over the past 25 years, LCLUC has funded over 325 projects involving more than 800 researchers, resulting in over 1500 publications. The program’s focus balances project distribution that spans detection and monitoring, and impacts and consequences, including drivers, modeling, and synthesis. Gutman highlighted examples of population growth and urban expansion in Southeast Asia, resulting in environmental and socio-economic impacts. Urbanization accelerates deforestation, shifts farming practices to higher-value crops, and contributes to the loss of wetlands. This transformation alters the carbon cycle, degrades air quality, and increases flooding risks due to reduced rainwater absorption. Multi-source remote sensing data and social dimensions are essential in addressing LUCC issues, and the program aims to foster international collaborations and capacity building in land-change science through partnerships and training initiatives. (To learn more about the recent activities of the LCLUC Science Team, see Summary of the 2024 Land Cover Land Use Change Science Team Meeting.)
Krishna Vadrevu explained how SARI connects regional and national projects with researchers from the U.S. and local institutions to advance LUCC mapping, monitoring, and impact assessments through shared methodologies and data. The initiative has spurred extensive activities, including meetings, training sessions, publications, collaborations, and fieldwork. To date, the LCLUC program has funded 35 SARI projects and helped build collaborations with space agencies, universities, and decision-makers worldwide. SARI Principal Investigators have documented notable land-cover and land-use transformations, observing shifts in land conversion practices across Asia. For example, the transition from traditional slash-and-burn practices for subsistence agriculture to industrial oil palm and rubber plantations in Southeast Asia. Rapid urbanization has also reshaped several South and Southeast Asian regions, expanding both horizontally in rural areas and vertically in urban centers. The current SARI solicitation funds three projects across Asia, integrating the latest remote sensing data and methods to map, monitor, and assess LUCC drivers and impacts to support policy-making.
Vu Tuan provided a comprehensive overview of Vietnam’s advances in satellite technology and Earth observation capabilities, particularly through the LOTUSat-1 satellite (name derived from the “Lotus” flower), which is equipped with an advanced X-band Synthetic Aperture Radar (SAR) sensor capable of providing high-resolution imagery [ranging from 1–16 m (3–52 ft)]. This satellite is integral to Vietnam’s efforts to enhance disaster management and climate change mitigation, as well as to support a range of applications in topography, agriculture, forestry, and water management, as well as in oceanography and environmental monitoring. The VNSC’s efforts are part of a broader strategy to build national expertise and self-reliance in satellite technology, such as developing a range of small satellites (e.g., NanoDragon, PicoDragon, and MicroDragon) that progress in size and capability. Alongside satellite development, the VNSC has established key infrastructure, facilities, and capacity building in Hanoi, Nha Trang, and Ho Chi Minh City to support satellite assembly, integration, testing, and operation. Tuan showcased the application of remotely sensed LUCC data to map and monitor urban expansion in Ha Long city from 2000–2023 and the policies needed to manage these changes sustainably – see Figure 1.

Tsuneo Matsunaga provided a detailed overview of Japan’s Greenhouse Gases Observing Satellite (GOSAT) series of satellites, data from which provide valuable insights into global greenhouse gas (GHG) trends and support international climate agreements, including the Paris Agreement.
Matsunaga reviewed the first two satellites in the series: GOSAT and GOSAT-2, then previewed the next satellite in the series: GOSAT-GW, which is scheduled to launch in 2025. GOSAT-GW will fly the Total Anthropogenic and Natural Emissions Mapping Observatory–3 (TANSO-3) – an improved version of TANSO-2, which flies on GOSAT-2. TANSO-3 includes a Fourier Transform Spectrometer (FTS-3) that has improved spatial resolution [10.5 km (6.5 mi)] over TANSO-FTS-2 and precision that matches or exceeds that of its predecessor. TANSO-FTS-3 will allow estimates with precision better than 1 ppm for carbon dioxide (CO2) and 10 ppb for methane (CH4), as well as enabling nitrogen dioxide (NO2) measurements. GOSAT–GW will also fly the Advanced Microwave Scanning Radiometer (AMSR3) that will monitor water cycle components (e.g., precipitation, soil moisture) and ocean surface winds. AMSR3 builds on the heritage of three previous AMSR instruments that have flown on NASA and Japan Aerospace Exploration Agency (JAXA) missions.
Matsunaga also highlighted the importance of ground-based validation networks, such as the Total Carbon Column Observing Network, COllaborative Carbon Column Observing Network, and the Pandora Global Network, to ensure satellite data accuracy.
Son Nghiem [NASA/Jet Propulsion Laboratory (JPL)] addressed dynamic LUCC in Cambodia, Laos, Thailand, Vietnam, and Malaysia. The synthesis study examined the factors that evolve along the rural–urban continuum (RUC). Nghiem showcased this effort using Synthetic Aperture Radar (SAR) data from the Copernicus Sentinel-1 mission to map a typical RUC in Bac Lieu, Vietnam – see Figure 2.

Nghiem described the study, which examined the role of rapid urbanization, agricultural conversion, climate change, and environment–human feedback processes in causing non-stationary and unpredictable impacts. This work illustrates how traditional trend analysis is insufficient for future planning. The study also examined whether slower or more gradual changes could inform policy development. To test these hypotheses, his research will integrate high-resolution radar and hyperspectral data with socioeconomic analyses. The study highlights the need for policies that are flexible and responsive to the unique challenges of different areas, particularly in “hot-spot” regions experiencing rapid changes.
Peilei Fan [Tufts University] presented a study that synthesizes the complex patterns of LUCC, identifying both the spatial and temporal dynamics that characterize transitions in urban systems. The study explores key drivers, including economic development, population growth, urbanization, agricultural expansion, and policy shifts. She emphasized the importance of understanding these drivers for sustainable land management and urban planning. For example, the Yangon region of Myanmar has undergone rapid urbanization – see Figure 3. Her work reveals the need for integrated approaches that consider both urban and rural perspectives to manage land resources effectively and mitigate negative environmental and social impacts. Through a combination of case studies, statistical analysis, and policy review, Fan and her team aim to provide a nuanced understanding of the interactions between human activities and environmental changes occurring in the rapidly transforming landscapes of Southeast Asia.

Session III: Land Cover/Land Use Change Studies
Tanapat Tanaratkaittikul [Geo-Informatics and Space Technology Development Agency (GISTDA), Thailand] highlighted GISTDA activities, which play a crucial role in advancing Thailand’s technological capabilities and addressing both national and global challenges, including Thailand Earth Observation System (THEOS) and its successors: THEOS-2 and THEOS-2A. THEOS-1, which launched in 2008, provides 2-m (6-ft) panchromatic and 15-m (45-ft) multispectral resolution with a 26-day revisit cycle, which can be reduced to 3 days with off-nadir pointing. Launched in 2023, THEOS-2 includes two satellites – THEOS-2A [a very high-resolution satellite with 0.5-m (1.5-ft) panchromatic and 2-m (6-ft) multispectral imagery] and THEOS-2B [a high-resolution satellite with 4-m (12-ft) multispectral resolution] – with a five-day revisit cycle. GISTDA also develops geospatial applications for drought assessment, flood prediction, and carbon credit calculations to support government decision-making and climate initiatives. GISTDA partners with international collaborators on regional projects, such as the Lancang-Mekong Cooperation Special Fund Project.
Eric Vermote [NASA’s Goddard Space Flight Center] presented a keynote that focused on atmospheric correction of land remote sensing data and related algorithm updates. He highlighted the necessity of correcting surface imaging for atmospheric effects, such as molecular scattering, aerosol scattering, and gaseous absorption, which can significantly distort the satellite spectral signals and lead to potential errors in applications, such as land cover mapping, vegetation monitoring, and climate change studies.
Vermote explained that the surface reflectance algorithm uses precise vector radiative transfer modeling to improve accuracy by incorporating atmospheric parameter inversion. It also adjusts for various atmospheric conditions and aerosol types – enhancing corrections across regions and seasons. He explained that SkyCam – a network of ground-based cameras – provides real-time assessments of cloud cover that can be used to validate cloud masks, while the Cloud and Aerosol Measurement System (CAMSIS) offers additional ground validation by measuring atmospheric conditions. He said that together, SkyCam and CAMSIS improve satellite-derived cloud masks, supporting more accurate climate models and environmental monitoring. Vermote’s work highlights the ongoing advancement of atmospheric correction methods in remote sensing.
Other presentations in this session included one in which the speaker described how Yangon, the capital city in Myanmar, is undergoing rapid urbanization and industrial growth. From 1990–2020, the urban area expanded by over 225% – largely at the expense of agricultural and green lands. Twenty-nine industrial zones cover about 10.92% of the city, which have attracted significant foreign direct investment, particularly in labor-intensive sectors. This growth has led to challenges with land confiscations, inadequate infrastructure, and environmental issues (e.g., air pollution). Additionally, rural migration for employment has resulted in informal settlements, emphasizing the need for comprehensive urban planning that balances economic development with social equity and sustainability.
Another presentation highlighted varying LUCC trends across Vietnam. In the Northern and Central Coastal Uplands, for example, swidden systems are shifting toward permanent tree crops, such as rubber and coffee. Meanwhile, the Red River Delta is seeing urban densification and consolidation of farmland – transitioning from rice to mixed farming with increased fruit and flower production. Similarly, the Central Coastal Lowlands and Southeastern regions are experiencing urban growth and a shift from coastal agriculture – in this case, to shrimp farming – leading to mangrove loss. The Central Highlands is moving from swidden to tree crops, particularly fruit trees, while the Mekong River Delta is increasing rice cropping and aquaculture. These changes contribute to urbanization, altered farming practices, and biodiversity loss. Advanced algorithms (e.g., the Time-Feature Convolutional Neural Network model) are being used to effectively map these varied LUCC changes in Vietnam.
Another presenter explained how 10-m (33-ft) resolution spatially gridded population datasets are essential to address LUCC in environmental and socio-demographic research. There was also a demonstration of PopGrid, which is a collaborative initiative that provides access to various global-gridded population databases, which are valuable for regional LUCC studies and can support informed decision-making and policy development.
DAY TWO
The second day’s presentations centered around urban LUCC (Session IV) as well as interconnections between agriculture and water resources. (Session V).
Session IV: Urban Land Cover/Land Use Change
Gay Perez [Philippines Remote Sensing Agency (PhilSA)] presented a keynote focused on PhilSA’s mission to advance Philippines as a space-capable country by developing indigenous satellite and launch technologies. He explained that PhilSA provides satellite data in various categories, including sovereign, commercial, open-access, and disaster-activated. He noted that the ground infrastructure – which includes three stations and a new facility in Quezon – supports efficient data processing. For example, Perez stated that in 2023, PhilSA produced over 10,000 maps for disaster relief, agricultural assessments, and conservation planning.
Perez reviewed PhilSA’s Diwata-2 mission, which launched in 2018 and operates in a Sun-synchronous orbit around 620 km (385 mi) above Earth. With a 10-day revisit capability, it features a high-precision telescope [4.7 m (15ft) resolution], a multispectral imager with four bands, an enhanced resolution camera, and a wide-field camera. Since launch, Diwata-2 has captured over 100,000 global images, covering 95% of the Philippines. Looking to the near future, Perez reported that PhilSA’s launch of the Multispectral Unit for Land Assessment (MULA) satellite is planned for 2025. He explained that MULA will capture images with a 5-m (~16-ft) resolution and 10–20-day revisit time, featuring 10 spectral bands for vegetation, water, and urban analysis.
Perez also described the Drought and Crop Assessment and Forecasting project, which addresses drought risks and mapping ground motion in areas, e.g., Baguio City and Pangasinan. Through partnerships in the Pan-Asia Partnership for Geospatial Air Pollution Information (PAPGAPI) and the Pandora Asia Network, PhilSA monitors air quality across key locations, tracking urban pollution and cross-border particulate transport. PhilSA continues to strengthen Southeast Asian partnerships to drive sustainable development in the region.
Jiquan Chen [Michigan State University] presented the second keynote address, which focused on the Urban Rural Continuum (URC). Chen emphasized the importance of synthesizing studies that explore factors such as population dynamics, living standards, and economic development in the URC. Key considerations include differentiating between two- and three-dimensional infrastructures and understanding constraints from historical contexts. Chen highlighted critical variables from his analysis including net primary productivity, household income, and essential infrastructure elements, such as transportation and healthcare systems. He advocated for integrated models that combine mechanistic and empirical approaches to grasp the dynamics of URC changes, stressing their implications for urban planning, environmental sustainability, and social equity. He concluded with a call for collaboration to enhance these models and tackle challenges arising from the changing urban–rural landscape.
Tep Makathy [Cambodian Institute For Urban Studies] discussed urbanization in Phnom Penh, Cambodia. He explained that significant LUCC and infrastructure developments have been fueled by direct foreign investment; however, this development has resulted in environmental degradation, urban flooding, and infrastructure strain. Tackling pollution, congestion, preservation of green spaces, and preserving the historical heritage of the city will require sustainable urban planning efforts.
Nguyen Thi Thuy Hang [Vietnam Japan University, Vietnam National University, Hanoi] explained how flooding poses a significant annual threat to infrastructure and livelihoods in Can Tho, Vietnam. Therefore, it is essential to incorporate climate change considerations into land-use planning by enhancing the accuracy of vegetation layer classifications. Doing so will improve the representation of land-cover dynamics in models that decision-makers use when planning urban development. In addition, Hang reported that a more comprehensive survey of dyke systems will improve flood protection and identify areas needing reinforcement or redesign. These studies could also explore salinity intrusion in coastal agricultural areas that could impact crop yields and endanger food security.
In this session, two presenters highlighted how SAR data, which uses high backscatter to enhance the radar signal, is being used to assist with mapping urban areas in their respective countries. The phase stability and orientation of building structures across SAR images aid in consistent monitoring and backscatter, producing distinct image textures specific to urban settings. Researchers can use this heterogeneity and texture to map urban footprints, enabling automated discrimination between urban and non-urban areas. The first presenters showed how Interferometric Synthetic Aperture Radar techniques, such as Small Baseline Subset (SBAS) and Persistent Scatterer (PS) have been highly effective for mapping and monitoring land subsidence in coastal and urban areas in Vietnam. This approach has been applied to areas along the Saigon River as well as in Ho Chi Minh, Vietnam. The second presenter described an approach (using SAR data with multitemporal coherence and the K-means classification method) that has been used effectively to study urban growth in the Denpasar Greater Area of Indonesia between 2016 and 2022. The technique identified the conversion of 4376 km2 (1690 mi2) of rural to built-up areas, averaging 72.9 hectares (0.3 mi2) per year. Urban sprawl was predominantly observed in the North Kuta District, where the shift from agricultural to built-up land use has been accompanied by severe traffic congestion and other environmental issues.
Another presenter showed how data from the QuikSCAT instrument, which flew on the Quick Scatterometer satellite, and from the Sentinel-1 C-band SAR can be combined to measure and analyze urban built-up volume, specifically focusing on the vertical growth of buildings across various cities. By integrating these datasets, researchers can assess urban expansion, monitor the development of high-rise buildings, and evaluate the impact of urbanization on infrastructure and land use. This information is essential for urban planning, helping city planners and policymakers make informed decisions to accommodate growing populations and enhance sustainable urban development.
Session V – LUCC, Agriculture, and Water Resources
Chris Justice presented the keynote for this session, in which he addressed the GEOGLAM initiative and the NASA Harvest program. GEOGLAM, initiated by the G20 Agriculture Ministers in 2011, focuses on agriculture and food security to increase market transparency and improve food security. These efforts leverage satellite-based Earth observations to produce and disseminate timely, relevant, and actionable information about agricultural conditions at national, regional, and global scales to support agricultural markets and provide early warnings for proactive responses to emerging food emergencies. NASA Harvest uses satellite Earth observations to benefit global food security, sustainability, and agriculture for disaster response, climate risk assessments, and policy support. Justice also emphasized the use of open science and open data principles, promoting the integration of Earth observation data into national and international agricultural monitoring systems. He also discussed the development and application of essential agricultural variables, in situ data requirements, and the need for comprehensive and accurate satellite data products.
During this session, another presentation focused on how VNSC is engaged in several agricultural projects, including mapping rice crops, estimating yields, and assessing environmental impacts. VNSC has created high-accuracy rice maps for different seasons that the Vietnamese government uses to monitor and manage agricultural production. Current initiatives involve using satellite data to estimate CH4 emissions from rice paddies, biomass mapping, and monitoring rice straw burning. For example, in the Mekong Delta, numerous environmental factors, including climate change-induced stress (e.g., sea-level rise), flooding, drought, land subsidence, and saltwater intrusion, along with human activities like dam construction, sand mining, and groundwater extraction, threaten the sustainability of rice farming and farmer livelihoods. To address these challenges, sustainable agricultural practices are essential to improving rice quality, diversify farming systems, adopt low-carbon techniques, and enhance water management.
Presentations highlighted the importance of both optical and SAR data for LUCC studies, particularly in mapping agricultural areas. A study using Landsat time-series data demonstrated its value in monitoring agricultural LUCC in Houa Phan Province, Laos, and Son La Province, Vietnam. Land cover types were classified through spectral pattern analysis, identifying distinct classes based on Landsat reflectance values. The findings revealed significant natural forest loss alongside increases in cropland and forest plantations due to agricultural expansion. High-resolution imagery validated these results, indicating the scalability of this approach for broader regional and global land-cover monitoring. Another study showcased the effectiveness of SAR data from the Phased Array type L-band Synthetic Aperture Radar-2 (PALSAR-2) on the Japanese Advanced Land Observing Satellite-2 (ALOS-2) for mapping and monitoring agricultural land use in Suphanburi, Thailand. This data proved particularly useful for capturing seasonal variations and diverse agricultural practices. Supervised machine learning methods, such as Random Forest classifiers, combined with innovative spatial averaging techniques, achieved high accuracy in distinguishing various agricultural conditions.
In the session, presenters also discussed the use of Sentinel-1 SAR data for mapping submerged and non-submerged paddy soils was highlighted, demonstrating its effectiveness in understanding water management issues see – Figure 4. Additionally, large-scale remote sensing data and cloud computing were shown to provide unprecedented opportunities for tracking agricultural land-use changes in greater detail. Case studies from India and China illustrated key challenges, such as groundwater depletion in irrigated agriculture across the Indo-Ganges region and the impacts on food, water, and air quality in both countries.

The session also focused on Water–Energy–Food (WEF) issues related to the Mekong River Basin’s extensive network of hydroelectric dams, which present both benefits and challenges. While these dams support sectors such as irrigated agriculture and hydropower, they also disrupt vital ecosystem services, including fish habitats and biodiversity. Collaborative studies integrating satellite and ground data, hydrological models, and socio-economic frameworks highlight the need to balance these benefits with ecological and social costs. Achieving sustainable management requires cross-sectoral and cross-border cooperation, as well as the incorporation of traditional knowledge to address WEF trade-offs and governance challenges in the region.
DAY THREE
The third day included a session that explored the impacts of fire, GHG emissions, and pollution (Session VI) as well as a summary discussion on synthesis (Session VII).
Session VI: Fires, Greenhouse Gas Emissions, and Pollution
Chris Elvidge [Colorado School of Mines] presented a keynote on the capabilities and applications of the Visible Infrared Imaging Radiometer Suite (VIIRS) Nightfire [VNF] system, an advanced satellite-based tool developed by the Earth Observation Group. VIIRS Nightfire uses four near- and short-wave infrared channels, initially designed for daytime imaging, to detect and monitor infrared emissions at night. The system identifies various combustion sources, including both flaming and non-flaming activities (e.g., biomass burning, gas flaring, and industrial processes). It calculates the temperature, source area, and radiant heat of detected infrared emitters using physical laws to enable precise monitoring of combustion events and provide insight into exothermic and endothermic processes.
Elvidge explained that VNF has been vital for near-real-time data in Southeast Asia. The system has been used to issue daily alerts for Vietnam, Thailand, and Indonesia. Recent updates in Version 4 (V4) include atmospheric corrections and testing for secondary emitters with algorithmic improvements – with a 50% success rate in identifying additional heat sources. The Earth Observation Group maintains a multiyear catalog of over 20,000 industrial infrared emitters available through the Global Infrared Emitter Explorer (GIREE) web-map service. With VIIRS sensors expected to operate until about 2040 on the Joint Polar Satellite System (JPSS) platforms, this system ensures long-term, robust monitoring and analysis of global combustion events, proving essential for tracking the environmental impacts of industrial activities and natural combustion processes on the atmosphere and ecosystems.
Toshimasa Ohara [Center for Environmental Science, Japan—Research Director] continued with the second keynote and provided an in-depth analysis of long-term trends in anthropogenic emissions across Asia. The regional mission inventory in Asia encompasses a range of pollutants and offers detailed emissions data from 1950–2020 at high spatial and temporal resolutions. The study employs both bottom-up and top-down approaches for estimating emissions, integrating satellite observations to validate data and address uncertainties. Notably, emissions from China, India, and Japan have shown signs of stabilization or reduction, attributed to stricter emission control policies and technological advancements. Ohara also highlighted Japan’s effective air pollution measures and the importance of extensive observational data in corroborating emission trends. His presentation emphasized the need for improved methodologies in emission inventory development and validation across Asia, aiming to enhance policymaking and environmental management in rapidly industrializing regions.
Several presenters during this session focused on innovative approaches to understand and mitigate GHG emissions and air pollution. One presenter showed how NO2 data from the TROPOspheric Monitoring Instrument (TROPOMI) on the European Sentinel-5 Precursor have been validated against ground-based observations from Pandora stations in Japan, highlighting the influence of atmospheric conditions on measurement accuracy. Another presenter described an innovative system that GISTDA used to combine satellite remote sensing data with Artificial Intelligence (AI). This system was used to monitor and analyze the concentration of fine particulate matter (PM) in the atmosphere in Thailand. (In this context fine is defined as particles with diameters ≤ 2.5 µm, or PM2.5.) These applications, which are accessible through online, cloud-based platforms and mobile applications for iOS and Android devices, allow users, including citizens, government officers, and policymakers, to access PM2.5 data in real-time through web and mobile interfaces.
A project under the United Nations Economic and Social Commission for Asia and the Pacific in Thailand is focused on improving air quality monitoring across the Asia–Pacific region by integrating satellite and ground-based data. At the core of this effort, the Pandora Asia Network, which includes 30 ground-based instruments measuring pollutants such as NO₂ and sulfur dioxide (SO₂), is complemented by high-resolution observations from the Geostationary Environment Monitoring Spectrometer (GEMS) aboard South Korea’s GEO-KOMPSAT-2B (GK-2B) satellite. The initiative also provides training sessions to strengthen regional expertise in remote sensing technologies for air quality management and develops decision support systems for evidence-based policymaking, particularly for monitoring pollution sources and transboundary effects like volcanic eruptions. Future plans include expanding the Pandora network and enhancing data integration to support local environmental management practices.
PM2.5 levels in Vietnam are influenced by both local emissions and long-range pollutant transport, particularly in urban areas.The Vietnam University of Engineering and Technology, in conjunction with VNSC, continues to map and monitor PM2.5 using satellites and machine learning while addressing data quality issues that stem from missing satellite data and limited ground monitoring stations – see Figure 5.
In addition to mapping and monitoring pollutants, another presentater explained that significant research is underway to address their health impacts. In Hanoi, exposure to pollutants ( e.g., PM2.5, PM10, and NO2) has led to increased rates of respiratory diseases (e.g., pneumonia, bronchitis, and asthma) among children, as well as elevated instances of cardiovascular diseases among adults. A substantial mortality burden is attributable to fine particulate matter – particularly in densely populated areas like Hanoi. Compliance with stricter air quality guidelines could potentially prevent thousands of premature deaths. For example, preventive measures enacted during the COVID-19 pandemic resulted in reduced pollution levels that were associated with a decrease in avoidable mortality rates. In response to these challenges, Vietnam has implemented air quality management policies, including national technical regulations and action plans aimed at controlling emissions and enhancing monitoring; however, current national standards still fall short of the more stringent guidelines recommended by the World Health Organization. Improved air quality standards and effective policy interventions are needed to mitigate the health risks associated with air pollution in Vietnam.

Another presenter explained how food production in Southeast Asia contributes about 40% of the region’s total GHG emissions – with rice and beef production identified as the largest contributors for plant-based and animal-based emissions, respectively. Another presentation focused on a study that examined GHG emissions from agricultural activities, which suggests that animal-based food production – particularly beef – generates substantially higher GHG emissions per kg of food produced compared to plant-based foods, such as wheat and rice. Beef has an emission intensity of about 69 kg of CO2 equivalent-per-kg, compared to 2 to 3 kg of CO2 equivalent-per-kg for plant-based foods. The study points to mitigation strategies (e.g., changing dietary patterns, improving agricultural practices) and adopting sustainable land management. Participants agreed that a comprehensive policy framework is needed to address the environmental impacts of food production and reduce GHG emissions in the agricultural sector.
In another presentation, the speaker highlighted the fact that Southeast Asian countries need an advanced monitoring, reporting, and verification system to track GHG emissions – particularly within high-carbon reservoirs like rice paddies. To achieve this, cutting-edge technologies (e.g., satellite remote sensing, low-cost unmanned aerial vehicles, and Internet of Things devices) can be beneficial in creating sophisticated digital twin technology for sustainable rice production and GHG mitigation.
Another presentation featured a discussion about pollution resulting from forest and peatland fires in Indonesia, which is significantly impacting air quality. Indonesia’s tropical peatlands – among the world’s largest and most diverse – face significant threats from frequent fires. Repeated burning has transformed forests into shrubs and secondary vegetation regions, with fires particularly affecting forest edges and contributing to a further retreat of intact forest areas. High-resolution data is essential to map and monitor changes in forest cover, including pollution impacts.
Another speaker described a web-based Geographic Information Systems (GIS) application that has been developed to support carbon offsetting efforts in Laos – to address significant environmental challenges, e.g., deforestation and climate change. Advanced technologies (e.g., remote sensing, GIS, and Global Navigation Satellite Systems) are used to monitor land-use changes, carbon sequestration, and ecosystem health. By integrating various spatial datasets, the web GIS app enhances data collection precision, streamlines monitoring processes, and provides real-time information to stakeholders for informed decision-making. This initiative fosters collaboration among local communities, government agencies, and international partners, while emphasizing the importance of government support and international partnerships. Ultimately, the web GIS application represents a significant advancement in Laos’s commitment to environmental sustainability, economic growth, and the creation of a greener future.
Session VII. Discussion Session on Synthesis
The meeting concluded with a comprehensive discussion on synthesizing themes related to LUCC. The session focused on three themes: LUCC, agriculture, and air pollution. The session focused on trends and projections as well as the resulting impacts in the coming years. It also highlighted research related to these topics to inform more sustainable land use policies. A panel of experts from different Southeast Asian countries addressed these topics. A summary of the key points shared by the panelists for each theme during the discussion is provided below.
LUCC Discussions
This discussion focused on the challenges of balancing economic development with environmental sustainability in Southeast Asian countries, e.g., mining in Myanmar, agriculture in Vietnam, and rising land prices in Thailand. More LUCC research is needed to inform decision-making and improve land-use planning during transitions from agriculture to industrialization while ensuring food security. The panelists also discussed urban sprawl and infrastructure development along main roads in several Southeast Asian countries, highlighting the social and environmental challenges arising from uncoordinated growth. It was noted that urban infrastructure lags behind population increases, resulting in traffic congestion, pollution, and social inequality. Cambodia, for example, has increased foreign investments, which presents similar dilemmas of economic growth accompanied by significant environmental degradation. Indonesia is another example of a Southeast Asian nation facing rapid urbanization and inadequate spatial planning, leading to flooding, groundwater depletion, and pollution. These issues further highlight the need for integrated satellite monitoring to inform land-use policies. Finally, recognizing the importance of public infrastructure in growth management, it was reported that the Thai government is already using technology to manage urban development alongside green spaces.
Panelists agreed that LUCC research is critical for guiding policymakers toward sustainable land-use practices – emphasizing the necessity for improved communication between researchers and policymakers. While the integration of technologies (e.g., GIS and remote sensing) is beginning to influence policy decisions, room for improvement remains. In summary, the discussions stressed the importance of better planning, technology integration, and policy-informed research to reconcile economic growth with sustainability. Participants also highlighted the need to engage policymakers, non-government organizations, and the private sector in using scientific evidence for sustainable development. Capacity building in Laos, Cambodia, and Myanmar, where GIS and remote sensing technologies are still developing, is crucial. Community involvement is essential for translating research findings into actionable policies to address real-world challenges and social equity.
Agriculture Discussions
These discussions explored the intricate relationships between agricultural practices, economic growth, and environmental sustainability in Southeast Asia. As an example, despite national policies to manage the land transition in Vietnam, rapid conversions from forest to agricultural land and further to residential and industrial continue. While it is recognized that strict land management plans may hinder future adaptability, further regulation is needed. These rapid shifts in land use have increased land for economic development – especially in industrial and residential sectors – and contribute to environmental degradation, e.g., pollution and soil erosion. In Thailand, land is distributed among agriculture (50%), forest (30%), and urban (20%) areas. Despite a long history of agricultural practices, Vietnam faces new challenges from climate change and extreme weather.
Thailand, meanwhile, is exploring carbon credits to incentivize sustainable farming practices – although this requires significant investment and time. The nation is well-equipped with a robust water supply system, and ongoing efforts to enhance crop yields on Vietnam’s Mekong Delta, salinity levels, and flooding intensity have increased as a result of the rise in incidents of extreme weather, prompting advancements in rice farming mechanization to be implemented that are modeled after practices that have been successfully used in the Philippines.
Despite these advances, issues (e.g., over-application of rice seeds) remain. The dominant land cover type in Malaysia is tropical rainforest, although agriculture – particularly oil palm plantations – also plays a significant role in land use. While stable, it shares environmental concerns with Indonesia. The country is integrating solar energy initiatives, placing solar panels on former agricultural lands and recreational areas, which raises coastal environmental concerns. In Taiwan, substantial land use changes have stemmed from solar panel installations to support green energy goals but have led to increased temperatures and altered wind patterns.
All panelists agreed that remote sensing technologies are vital to inform agricultural policy across the region. They emphasized the need to transition from academic research to actionable insights that directly inform policy. Panelists also discussed the challenge of securing funding for actionable research – underlining the importance of recognizing the transition required for research to inform operational use. Some countries (e.g., Thailand) have established operational crop monitoring systems, while others (e.g., Vietnam) primarily depend on research projects. Despite progress in Malaysia’s monitoring of oil palm plantations, a comprehensive operational monitoring system is still lacking in many areas. The participants concluded that increased efforts are needed to promote the wider adoption of remote sensing technologies for agricultural and environmental monitoring, with emphasis on developing operational systems that can be integrated into policy and decision-making processes.
Air Pollution Discussions
The discussion on air pollution focused on various sources in Southeast Asia, which included both local and transboundary factors. Panelists highlighted that motor vehicles, industrial activities, and power plants are major contributors to pollutants, such as PM2.5, NO2, ozone (O3), and carbon monoxide (CO). Forest fires in Indonesia – particularly from South Sumatra and Riau provinces – are significantly impacting neighboring countries, e.g., Malaysia. A study found that most PM2.5 pollution in Kuala Lumpur originates from Indonesia. During the COVID-19 pandemic, pollution levels dropped sharply due to reduced economic activity; however, data from 2018–2023 shows that PM2.5 levels have returned to pre-pandemic conditions.
The Indonesian government is actively working to reduce deforestation and emissions, aiming for a 29% reduction by 2030. Indonesia is also participating in carbon markets and receiving international payments for emission reductions. Indonesia’s emissions also stem from energy production, industrial activities, and land-use changes, including peat fires. The Indonesian government reports anthropogenic sources – particularly from the energy sector and industrial activities, forest and peat fires, waste, and agriculture – continue to escalate. While Indonesia is addressing these issues, growing population and energy demands continue to drive pollution levels higher.
Vietnam and Laos are facing similar challenges related to air pollution – particularly from agricultural residue burning. Both governments are working on expanding air quality monitoring, regulating waste burning, and developing policies to mitigate pollution. Vietnam has been developing provincial air quality management plans and expanding its monitoring network. Laos has seen increased awareness of pollution, accompanied by government measures aimed at restricting burning and improving waste management practices.
The panelists agreed that collaborative efforts for regional cooperation are essential to address air pollution. This will require collaboration in research and data sharing to inform policy decisions. There is a growing interest in leveraging satellite technology and modeling approaches to enhance air quality forecasting and management. To ensure that research translates into effective policy, communication of scientific findings to policymakers is essential – particularly by clearly communicating complex research concepts in accessible formats. All panelists agreed on the importance of improving governance, transparency, and scientific communication to better translate research into policy actions, highlighting collaborations with international organizations – including NASA – to address air quality issues. While significant challenges related to air pollution persist in Southeast Asia, noteworthy efforts are underway to improve awareness, research, and collaborative governance aimed at enhancing air quality and reducing emissions.
Conclusion
The LCLUC–SARI Synthesis meeting fostered collaboration among researchers and provided valuable updates on recent developments in LUCC research, exchange of ideas, integration of new data products, and discussions on emerging science directions. This structured dialogue (particularly the discussions in each session) helped the attendees identify priorities and needs within the LUCC community. All panelists and meeting participants commended the SARI leadership for their proactive role in facilitating collaborations and discussions that promote capacity-building activities across the region. SARI activities have significantly contributed to enhancing the collective ability of countries in South and Southeast Asia to address pressing environmental challenges. The meeting participants emphasized the importance of maintaining and expanding these collaborative efforts, which are crucial for fostering partnerships among governments, research institutions, and local communities. They urged SARI to continue organizing workshops, training sessions, and knowledge-sharing platforms that can equip stakeholders with the necessary skills and resources to tackle environmental issues such as air pollution, deforestation, climate change, and sustainable land management.
Krishna VadrevuNASA’s Marshall Space Flight Centerkrishna.p.vadrevu@nasa.gov
Vu TuanVietnam National Science Center, Vietnamvatuan@vnsc.org.vn
Than NguyenVietnam National University Engineering and Technology, Vietnamthanhntn@vnu.edu.vn
Son NghiemJet Propulsion Laboratoryson.v.nghiem@jpl.nasa.gov
Tsuneo MatsunagaNational Institute of Environmental Studies, Japanmatsunag@nies.go.jp
Garik GutmanNASA Headquartersggutman@nasa.gov
Christopher JusticeUniversity of Maryland College Parkcjustice@umd.edu

MIL OSI USA News –

February 21, 2025
MIL-OSI Security: Suburban Chicago Man Sentenced to More Than Five Years in Prison for $1.5 Million COVID-Relief Fraud

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

CHICAGO — A federal judge has sentenced a suburban Chicago man to more than five years in prison for fraudulently obtaining more than $1.5 million in small business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Over a five-month period in 2021, FEROZ JALAL participated in a scheme to defraud banks and the U.S. Small Business Administration. The SBA’s Paycheck Protection Program allowed qualifying small businesses to receive low-interest, government-backed loans to cover a temporary loss of revenue during the Covid pandemic. As part of the scheme, Jalal submitted to lenders and the SBA at least a dozen applications for PPP loans on behalf of businesses that he and others purportedly owned. The applications contained false statements and misrepresentations concerning the purported entities’ employees, revenues, costs, and statuses of operations. In support of his applications, Jalal provided, among other things, fake IRS tax filings and bogus spreadsheets that purported to document the companies’ payroll expenses.

Jalal and co-schemers submitted fraudulent applications for PPP loans in amounts totaling $1.792 million, causing $1.644 million to be disbursed by lenders.

Jalal, 51, of Niles, Ill., pleaded guilty last year to bank fraud and money laundering charges. On Feb. 11, 2025, U.S. District Judge John F. Kness sentenced Jalal to five years and two months in federal prison and ordered him to pay more than $1.5 million in restitution to the SBA.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. Substantial assistance was provided by the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). The government was represented by Assistant U.S. Attorney Brian Hayes.

Anyone with information about attempted Covid-relief fraud can report it to the Department of Justice by calling the National Center for Disaster Fraud at (866) 720-5721, or by filing an online complaint at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

MIL Security OSI –

February 21, 2025
MIL-OSI Security: Waukee Man Sentenced to 32 Years in Federal Prison for Fentanyl and Fraud-Related Charges

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

DES MOINES, Iowa – A Waukee man was sentenced today to 32 years in federal prison for fraud, money laundering, and fentanyl distribution.

According to public court documents and evidence presented at sentencing, Stephan Rashad Haley, 36, also known as “Ace” and “Bosh,” acquired large quantities of counterfeit pills containing fentanyl from multiple drug sources and distributed the fentanyl-laced pills in the Southern District of Iowa. During an October 2023 search warrant at Haley’s Waukee residence, law enforcement located a stolen, loaded pistol, marijuana, cocaine, and pills containing fentanyl. Haley used the stolen pistol during an October 2023 shooting at an apartment complex in West Des Moines. At sentencing, the Court found Haley was responsible for more than 12 kilograms of fentanyl.

From May to August 2023, Haley also participated in a vast, multi-million-dollar fraud scheme. Working with coconspirators located throughout the country, Haley recruited at least three other individuals to open fraudulent bank accounts and deposit stolen checks. The portion of the conspiracies in which Haley participated caused an intended loss of over $3.5 million to more than 10 victims.

After completing his term of imprisonment, Haley will be required to serve a five-year term of supervised release. There is no parole in the federal system. Haley was also ordered to pay $66,437 in restitution.

Ten of Haley’s co-defendants in the fraud and money laundering case remain set for trial, currently scheduled to begin on June 23, 2025. Eight co‑defendants have pleaded guilty.

United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, and West Des Moines Police Department, with assistance from the Treasury Inspector General for Tax Administration, Clive Police Department, United States Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Des Moines Police Department, Secret Service, and numerous state and local agencies from across the country.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

MIL Security OSI –

February 21, 2025
MIL-OSI Economics: Total Wireless and Straight Talk Wireless unveil affordable Unlimited Tablet Plans with big savings
Source: Verizon

Headline: Total Wireless and Straight Talk Wireless unveil affordable Unlimited Tablet Plans with big savings

NEW YORK – Total Wireless and Straight Talk Wireless, two no-contract wireless providers covered by the Verizon network, have announced new unlimited tablet plans for the first time. With seamless data options and exclusive discounts, the new plans give customers access to the most affordable unlimited tablet plans in the no-contract wireless industry.

The new Total Wireless 5G Unlimited Tablet Plan and the Straight Talk Tablet Unlimited + Plan both cost only $20 per month when bundled with any of our phone plans, providing customers $40 per month in savings. The plans include access to Verizon’s 5G Ultra Wideband network, 30 GB of hotspot data to access the internet and power other connected devices, plus 1080p resolution for high-quality movie and TV streaming.

The Total Wireless Base Unlimited Tablet Plan and the Straight Talk Wireless Tablet Unlimited Plan both deliver great value at just $10 per month when bundled with any of our phone plans, saving customers $40 each month. The plans include 5GB of hotspot data and are also able to support 720p resolution, ensuring high-quality movie and TV streaming for an enjoyable viewing experience.

Both Total Wireless and Straight Talk Wireless are also introducing new tablets to go along with the plans, including:
- Samsung Galaxy Tab A9 + 5G
- TCL Tab 8 4G
- TCL Tab 10 NXT Paper 5G
“For many people, managing multiple devices can be costly,” said David Kim, Chief Revenue Officer at Verizon Value. “Both Total Wireless and Straight Talk understand the importance of staying connected across multiple devices without breaking the bank. Our new Unlimited Tablet Plans are the most affordable among no-contract wireless providers, and are designed to make it easier and more budget-friendly for our customers to enjoy the benefits of real, unlimited data.”

Now, Total Wireless customers can get a TCL Tab 8 for $29.99, a TCL 5G NXT Paper for $49.99, or a Samsung Galaxy Tab A9+ 5G for $99.99 when adding a new tablet line with a 5G Unlimited Tablet Plan. These offers are available exclusively in Total Wireless stores for a limited time.

Part of the Verizon Value portfolio of brands, Total Wireless and Straight Talk Wireless continue to demonstrate their commitment to providing customers exceptional value in wireless with seamless, affordable, high-quality wireless connectivity, leveraging the power of the Verizon network. For more information about the new plans, visit straighttalk.com, totalwireless.com or your local Total Wireless store.

About Total Wireless

Total Wireless is a fast-growing, no-contract wireless provider covered by the Verizon 5G network, with over 1,000 exclusive stores across the country, and counting. On a mission to raise the bar in prepaid wireless, Total Wireless disrupts the status quo by offering more value than any other no-contract provider. Total Wireless offers plans with unlimited data and access to Verizon’s 5G Ultra-Wideband network, prices guaranteed for five years (taxes and fees included), select free 5G phones with qualifying purchase plans, and more.

Total Wireless is part of the Verizon Value portfolio of prepaid brands, which includes Straight Talk, Visible, Tracfone, Simple Mobile, SafeLink, Walmart Family Mobile, and Verizon Prepaid. Verizon Communications Inc. (NYSE, Nasdaq: VZ) is one of the world’s leading providers of technology, communications, information and entertainment products and services.

For more information on Total Wireless, visit one of its exclusive storefronts across the country, or check out Totalwireless.com.

About Straight Talk Wireless

Straight Talk Wireless provides quality no-contract wireless solutions to value-conscious consumers and is available exclusively at Walmart, Walmart.com, and Straighttalk.com.

Straight Talk is part of the Verizon Value portfolio of prepaid brands, which includes Total Wireless, Visible, Tracfone, Simple Mobile, SafeLink, Walmart Family Mobile, and Verizon Prepaid.
MIL OSI Economics –
February 21, 2025
MIL-OSI USA: Senators Coons, Rounds reintroduce legislation to protect American hostages and wrongful detainees from tax penalties

US Senate News:

Source: United States Senator for Delaware Christopher Coons
WASHINGTON – U.S. Senators Chris Coons (D-Del.) and Mike Rounds (R-S.D.) reintroduced the Stop Tax Penalties on American Hostages Act today to prevent the Internal Revenue Service (IRS) from imposing fines or penalties on American hostages and wrongful detainees for late tax payments while they are held abroad. In addition to Senators Coons and Rounds, this legislation is co-sponsored by Senators Thom Tillis (R-N.C.), Ron Wyden (D-Ore.), Bill Cassidy, M.D. (R-La.), Chris Van Hollen (D-Md.), Rick Scott (R-Fla.), John Fetterman (D-Pa.), and Dave McCormick (R-Pa.). This bill was originally introduced in December 2022, and the Senate unanimously cleared the bill last year.
“When you return to the United States after being held hostage or wrongfully detained overseas, the first thing that you should get from your government is a ‘welcome home.’ Instead, it’s usually a fine from the IRS for failing to pay your taxes while you sat in a foreign jail,” said Senator Coons. “This bipartisan legislation will fix a glaring flaw in our tax code to ensure that Americans who have already been through the unthinkable do not face thousands of dollars in fines and late fees from the IRS for non-payment of taxes. As we continue our work to bring home every wrongfully detained American, I encourage my colleagues to once again advance this bill and ensure we don’t make their re-entry to our country harder than it already is.”
“After returning home, American citizens who were held hostage or wrongfully detained should be spending time with their families and getting back to their lives, not worrying about late fees on their taxes,” said Senator Rounds. “For obvious reasons, any American held hostage should not have the heavy hand of the IRS charging penalties on missed federal tax payments. Our legislation will protect Americans from misguided statutory requirements and unnecessary red tape when they return home.”
“After returning home, American hostages and wrongful detainees should not have to face penalties for taxes missed while held abroad,” said Representative French Hill. “I am proud to introduce this bipartisan legislation that will correct a crucial gap in our laws that burdens these Americans with penalties and fines from the IRS after they return home.”
“It goes without saying that no one who has endured wrongful detention or been taken hostage abroad should face the additional trial of navigating onerous tax burdens they incurred by no fault of their own when they return,” said Representative Dina Titus. “This commonsense, bicameral, bipartisan legislation will eliminate that unthinkable possibility by simplifying the tax code to postpone tax deadlines and refund late fees to support wrongful detainees, hostages, and their families.”
“Hostage US strongly supports the Stop Tax Penalties on American Hostages Act. As the leading organization providing reintegration support, guidance, and resources to Americans held hostage or wrongfully detained abroad, we see firsthand the long-term impact captivity has on individuals and their loved ones. This critical piece of legislation prevents unjust tax burdens when hostages return home and means former captives can rebuild their lives without additional hardship. Americans who have endured captivity should have financial protections and this commonsense legislation will provide much-needed relief to those who have already suffered so much,” said Liz Cathcart, Executive Director of Hostage US.
“On behalf of all U.S. nationals returning from captivity abroad and the James W. Foley Legacy Foundation, I sincerely commend Senator Coons’ and Senator Rounds’ leadership and their staff for this bill prohibiting tax penalties for hostages and wrongful detainees as an essential step forward,” said Diane Foley, Founder and President of the James W. Foley Legacy Foundation.
Americans who are held abroad as hostages or wrongful detainees are fined and charged interest by the IRS in the event of non-payment of taxes while in prison or captivity abroad, as though they had simply chosen not to pay taxes. Jason Rezaian, a Washington Post reporter who was wrongfully detained by the Iranian government for more than a year, brought this issue to Senator Coons’ attention. When Rezaian came home in 2016, the IRS hit him with tens of thousands of dollars in fines and interest charges on taxes he wasn’t able to file while imprisoned. The IRS has made clear a legislative fix is needed to resolve this situation.
Senator Coons has led numerous bills supporting American hostages and wrongful detainees and addressing financial hardships they often face upon their return. He reintroduced the Stop Tax Penalties on American Hostages Act alongside two other hostage bills today: the Fair Credit for American Hostages Act and Retirement Security for American Hostages Act. The first is a bill with Senator Thom Tillis (R-N.C.) that would empower former hostages and detainees to restore credit scores that may have been negatively impacted during their detention. The latter is a bill with Senator Bill Cassidy, M.D. (R-La.) that would ensure that hostages and wrongful detainees are not penalized in calculating their Social Security benefits.
A one-pager is available here.
The full text of the legislation can be found here.

MIL OSI USA News –

February 21, 2025
MIL-OSI Security: A Snapshot of Trump’s First Month: Making America Safe Again
Source: US Department of Homeland Security

“President Trump said from the start: criminal illegals have no place in our homeland. He is keeping his promise.” – Secretary of Homeland Security Kristi Noem

WASHINGTON – In a single month, President Trump and Secretary Noem have made massive strides to address the crisis at the southern border and remove violent criminal aliens from American communities. This is just the beginning of the golden age of America.

PROMISES MADE, PROMISES KEPT:
- On day one, President Trump declared a national emergency at the southern border and restarted construction of the border wall.
- President Trump instantly reinstated “Remain in Mexico” and ended catch and release.
- The Trump administration has empowered our brave men and women in ICE, Border Patrol, and Coast Guard to use common sense to do their jobs effectively.
- DHS has repealed Biden Era rules that allowed criminal aliens to hide from law enforcement in places like schools and churches to avoid arrest.
- DHS returned to using the term “illegal alien” to use statutory language and stop political correctness from hindering law enforcement.
- ICE arrests of criminal aliens have doubled and arrests of fugitives at large has tripled.
- Daily border encounters have plunged 93% since President Trump took office.
- To fulfill President Trump’s promise to carry out mass deportations, the administration is detaining illegal aliens, including violent criminals, at Guantanamo Bay.
- President Trump designated international cartels and other criminal gangs, such as MS-13 and Tren de Aragua, as Foreign Terrorist Organizations.
- President Trump signed the Laken Riley Act which mandates the federal detention of illegal immigrants who are accused of theft, burglary, assaulting a law enforcement officer, and any crime that causes death or serious bodily injury.
- President Trump stopped the broad abuse of humanitarian parole and returned the program to a case-by-case basis.
- Secretary Noem ended the previous administration’s extension of Venezuelan Temporary Protected Status.
- DHS froze all grants to non-profit organizations that facilitate illegal immigration.
- DHS deputized the Texas National Guard, Drug Enforcement Administration, Bureau of Prisons, U.S. Marshals, the Bureau of Alcohol, Tobacco, Firearms and Explosives, members of the State Department and the IRS to help with immigration operations.
- Secretary Noem clawed back $80 million that FEMA deep state activists unilaterally gave to put illegal aliens up in luxury New York City hotels.
Bottom Line: Since President Trump was inaugurated, he’s made it clear there is a new sheriff in town. The President and Secretary Noem will continue fighting every day to secure our borders and keep American communities safe.

MIL Security OSI –
February 21, 2025
MIL-OSI United Kingdom: Councillors agree record spend on primary schools and extra support for social care

Source: Scotland – City of Edinburgh

Millions of pounds will be spent on protecting and improving schools and crucial frontline services in Edinburgh.

Setting our budget today (Thursday 20 February) Councillors identified a £1.8bn spending programme focused on investing in services for children, older residents and those most in need of our support.

An increase in Council Tax rates will be used to balance the budget and to increase spending on frontline services like education, social care and road safety around schools; in direct response to calls from local residents during extensive budget consultation.

Council Leader Jane Meagher said:

Together we’ve been able to deliver a balanced budget and prioritise spend on the areas residents have told us they care about most, while staying true to the Council’s core commitments of tackling poverty and climate change and ‘getting the basics right’.

We’ve updated our plans at every step, taking stock of the thousands of responses gathered during our public consultation calling for us to invest in our frontline services.

Residents and community groups have been loud and clear that people want spending on schools and roads to be protected, sharing concerns about the local impact of the national social care crisis, and that they’d be willing to see Council Tax raised to make this happen.

We’ve listened and we’ve gone further – agreeing record spend on over a dozen new and existing school buildings, specific funding for road safety around schools and substantial extra money for the Edinburgh Health and Social Care Partnership. We’ll be tackling Edinburgh’s housing and homelessness emergencies and investing in our communities, including money towards roads and a new Blackhall Library.

For all that, we have had to make many difficult decisions to make substantial savings and I’m grateful to all Councillors for their input. We remain the lowest funded local authority in Scotland, and I will continue to call for fairer funding for Edinburgh.

Finance and Resources Convener Cllr Mandy Watt said:

Residents are aware of the financial challenges we face following years of underfunding, and they’ve told us in their thousands that they want to see vital services protected and enhanced. I’m pleased that we’ll be able to use the £26 million raised from an 8% increase in Council Tax to protect and improve these services.

Huge pressures on health and social care and housing remain unaddressed nationally and while this Budget does everything within our power to protect local services, we need greater action to be taken at a government level.

A huge amount of work has taken place to consider our budget options, with detailed proposals reported to Committees and tweaked in the months leading up to today’s final decision. I’d like to thank Council officers for all their work on this.

Substantial spend on schools

In the highest spending on school buildings in recent years, £296m will be invested towards five new campuses (Granton Waterfront, Newcraighall, St Catherine’s, Gilmerton Station and Builyeon), five extensions (Hillwood, Queensferry and Frogston primaries, plus Castlebrae and Craigmount high schools), plus a replacement building for Fox Covert.

We’ll invest an additional £30m towards upgrading special needs schools, with improvements designed to allow as many pupils as possible to see their needs met locally.

An additional £6.6m will be spent on road safety, particularly around schools. A further £0.5m will be used to drive improvements in educational attainment and £1m will be invested in Holiday Hubs, with options to make this scheme more sustainable to be explored.

Funding will also be protected around enhanced pupil support bases, pathways for pupil support assistants, transition teachers and devolved school budgets.

Extra support for social care

Up to £66m will be spent on Health and Social Care facilities in light of increasing demands for services, a growing and aging population and the rising costs to the EIJB of delivering these services.

As part of this, Councillors have agreed to set up a new Innovation and Transformation Fund – subject to match-funding by NHS Lothian – to leverage additional capital investment worth up to £16m.

Additional funding will provide support for Adult Health and Social Care worth £14m plus £5.6m will be put towards adaptations, to help people to live in their own homes independently.

Up to £2.5m from a Reform Reserve will be allocated to third sector support, plus income maximisation of £1m, following challenges with reduced funding available to charities and voluntary organisations from the EIJB.

More budget spent on roads

Responding to the results of our budget consultation – where people said they’d like to see money spent on roads, we’ll spend £40m on roads and transport in the year ahead.

Focusing on areas identified by a Women’s Safety survey, where certain parts of the city were described as feeling unsafe, as part of this spend we will invest £12.5m this year and next improving roads, pavements, streetlights.

We will invest a further £6.6m in Safer Routes to School and travelling safely.

Prioritising our communities and climate

Councillors have committed to climate remaining a key priority and over the next 12 months and an additional £2.9m will support actions with city partners to address Edinburgh’s climate and nature emergencies.

Supporting a Just Transition, affordable, net zero housing including 3,500 new, sustainable homes in the £1.3bn transformation of Granton Waterfront will be taken forward.

An additional £15m is planned to sustainably replace Blackhall Library, which has been closed due to RAAC, while £0.5m will be used to increase enforcement to keep the city cleaner and safer. Around £0.5m will also be used to create better data to support local decision making.

Focused poverty prevention

Councillors have committed to accelerate the work of the End Poverty Edinburgh Action Plan, tackle the city’s Housing Emergency and review the way we support the third sector in Edinburgh.

We will continue to support the Regenerative Futures Fund which will help local communities to lead poverty prevention and deliver change.

We’ll invest £50m in purchasing and building suitable temporary accommodation for people experiencing homelessness.

Following agreement of the Housing Revenue Account budget, we will continue work to retrofit high rise blocks and spend £14.8m towards new affordable housing and upgrades to void properties, to get them back into use as homes.

Council rents will be raised by 7% to raise much needed new funds to upgrade housing, with Councillors also agreeing to increase the city’s Tenant Hardship Fund by 7% in line with this rent rise.

Changes to Council Tax

All Council Tax rates will rise by 8% from April 2025 to allow the above investment to take place.

The new rates will be:

A: £1,042.34

B: 1,216.06

C: £1,389.79

D: £1,563.51

E: £2,054.28

F: £2,540.70

G: £3,061.87

H: £3,830.60

MIL OSI United Kingdom –

February 21, 2025
MIL-OSI Security: West Hartford Man Sentenced to Federal Prison for Participating in Catalytic Converter Theft Ring

Source: Office of United States Attorneys

Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that YANQUEE RODRIGUEZ, also known as “Yankster Rodriguez,” 28, of West Hartford, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 15 months of imprisonment, followed by three years of supervised release, for participating in a catalytic converter theft conspiracy.

According to court documents and statements made in court, law enforcement has been investigating the theft of catalytic converters from motor vehicles across Connecticut. A catalytic converter contains precious metals, can easily be removed from its vehicle, and is difficult to trace, making it a desirable target for thieves. The average scrap price for catalytic converters currently varies between $300 and $1,500, depending on the model and type of precious metal component.

The investigation revealed that Alexander Kolitsas owned and operated Downpipe Depot & Recycling LLC (“Downpipe Depot”), which had a warehouse on Park Avenue in East Hartford. Kolitsas and Downpipe Depot purchased stolen catalytic converters from a network of thieves, including Rodriguez, and then transported and sold the catalytic converters to recycling businesses in New York and New Jersey. Kolitsas instructed his suppliers on the types of converters that would obtain the most profit upon resale, and he would often meet with them and transact business at his home in Wolcott late at night or behind a family member’s restaurant in Middlebury after hours.

Business records seized during the investigation revealed that Rodriguez was one of Downpipe Depot’s largest suppliers of stolen catalytic converters. Between January 2021 and May 2022, Downpipe Depot paid Rodriguez $411,845 for catalytic converters. Kolitsas paid Rodriguez and his other catalytic converter suppliers a total of more than $3.3 million during that time.

Rodriguez was arrested on November 15, 2023. On June 26, 2024, he pleaded guilty to one count of conspiracy to commit interstate transportation of stolen property and one count of interstate transportation of stolen property.

Rodriguez, who is released on a $100,000 bond, is required to report to prison on May 19.

Kolitsas pleaded guilty to related charges and awaits sentencing.

This investigation is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and A. Reed Durham.

MIL Security OSI –

February 21, 2025
MIL-OSI USA: Video: Kaine Speaks on Senate Floor Regarding Republicans’ Bill to Cut Taxes for the Wealthy by Slashing Programs Virginians Rely On

US Senate News:

Source: United States Senator for Virginia Tim Kaine

BROADCAST-QUALITY VIDEO IS AVAILABLE HERE.

WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA), a member of the Senate Budget Committee, spoke on the Senate floor raising alarm about President Trump and Republicans’ plan to cut critical funding for programs that Virginians rely on and use that to fund tax cuts for billionaires. Republicans are expected to bring a budget resolution that tees up tax cuts for billionaires at the expense of middle-class Americans to the Senate floor this week. Republicans are using a legislative process known as “reconciliation,” which allows certain legislation to be expedited and passed in the Senate by a simple majority, avoiding the 60-vote threshold needed for most other legislation.

“If the Republican majorities here and in the House cared about the budget, we’d have an appropriations deal… Instead, what Democrats are hearing is that Republicans don’t want to do the traditional appropriations budget. They want to do a continuing resolution, which would be very harmful,” said Kaine.

“This discussion is a Trojan horse,” Kaine continued. “This is about an effort to dramatically cut spending programs that support everyday Virginians and everyday Americans and then to take those dollars and use them to fund tax cuts for the wealthiest Americans and the biggest corporations. Taking from people who rely upon community health clinics, rely upon Medicaid, rely upon student loans—taking those dollars and then using them to fund tax cuts for the wealthy.”

“We can’t convince people that ‘oh, this is about border security and national defense’ when we’ve got a demonstrable bipartisan track record of being able to advance in those areas,” said Kaine.

“Let’s just be clear about what this is,” Kaine concluded. “It’s a Trojan horse effort to amass savings off the backs of everyday people to pour into tax cuts for the wealthiest of Americans who don’t need help. We need to resist it in every way we can, and I look forward to joining my colleagues in doing so.”

President Donald Trump and Republicans in Congress are currently negotiating an extension to Trump’s 2017 tax law, which cut taxes for large corporations and the highest-income earners and substantially increased the federal deficit. They are now proposing broad-based tariffs and massive, across-the-board cuts to federal programs like Medicaid to fund these tax cuts for billionaires. Tax estimates have shown that if fully enacted, Trump’s tariffs could raise costs by $2,500 to nearly $4,000 per household, and American consumers could lose between $46 billion to $78 billion in spending power each year.

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: Budd Introduces Bill to Help Families Afford Health Sharing Ministries

US Senate News:

Source: United States Senator Ted Budd (R-North Carolina)

Washington, D.C. — Today, Senator Ted Budd (R-NC) introduced the Health Sharing Ministry Tax Parity Act, which would allow families to deduct the cost of a health sharing ministry membership from their annual tax bill.

Health sharing ministries are faith-based nonprofits that enable members to share health expenses. The bill would level the playing field between health sharing ministries and traditional insurance, making it easier for more families to afford a health sharing ministry membership.

Senator Budd said in a statement:

“At a time when health insurance premiums and inflation are making it difficult for families to afford health care coverage, action is needed to offer more options. The Health Care Sharing Ministry Tax Parity Act would allow people to offset the cost of a health sharing ministry membership by deducting it from their taxes. Faith-based nonprofits like health care sharing ministries do great work helping Americans afford health care, and my bill makes it easier for more people to pursue this option.”

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: During Black History Month, Scott Pushes Investment in Underserved Communities

US Senate News:

Source: United States Senator for South Carolina Tim Scott
Senator Scott announced his goal to unleash $1 trillion into communities like the one he grew up in.
WASHINGTON — As part of Black History Month, U.S. Senator Tim Scott (R-S.C.) is building on his commitment to increase economic opportunity across the United States. In his role as Chairman of the Senate Banking Committee, and as a senior member of the Senate Finance Committee, Scott is pushing solutions with a goal of unleashing up to $1 trillion of investment into underserved communities.
Scott joined Walter Davis, founding member of Peachtree Providence Partners, as part of his Opportunity Summit series in celebration of Black History Month to discuss his efforts and their shared goal of helping all Americans achieve their version of the American Dream.

Click here to watch the panel.
“I think it’s incredibly important for us to figure out how to unlock capital for disadvantaged communities. My goal is to set the kind of parameters that allows for $1 trillion of capital to be set free in disadvantaged communities in the next 10 years… My goal is to make sure that everyone who is struggling…has an opportunity to access more resources. That’s called the American way, or at least it’s supposed to be the American way. And I aim to make sure that, from a banking perspective, we have the flexibility with our regulators, so that small business owners with a good plan – with decent credit – have access to the capital to start hiring people from their own communities. Because when I started my business, it’s exactly what I did. I took an Allstate Insurance Agency and I crafted three other Allstate agencies out of my one Allstate agency, with two of them being African Americans. How do you do that? You just do the right thing. But it starts at home in your community, and if you want to see higher employment numbers in your community, you probably have to start a business and make it happen,” said Senator Scott.
BACKGROUND: By focusing on affordable housing, quality education, small business growth, financial inclusion, keeping tax rates low for families and expanding Opportunity Zones, as well as leveraging digital assets, Senator Scott is working to pave the way for transformative economic development across the country.
Boosting Affordable Housing Senator Scott’s ROAD to Housing Act will facilitate investment in quality and affordable housing, providing the opportunity to create generational wealth for so many historically ignored communities. The ROAD to Housing Act will change outdated caps on private investment in public housing, open the door to small-dollar mortgages, and help boost the supply of manufactured housing.
Small Business Growth Small business owners – particularly Black and other minority-owned businesses – face significant challenges accessing capital, including through our capital markets system. Senator Scott’s Empowering Main Street in America Act will fuel economic growth by giving local entrepreneurs – not elites in New York or Silicon Valley – the power to direct capital to historically overlooked communities.
Increasing Financial Inclusion Senator Scott has consistently prioritized increasing financial inclusion and incentivizing growth in local communities and historically overlooked neighborhoods. Senator Scott will continue to push efforts to streamline and modernize the rules governing financial institutions, prioritizing changes that support access to capital and investment in underserved communities across the country.
Protecting Taxpayer Dollars Senator Scott’s Opportunity Zones initiative has driven $85 billion to underserved communities, unlocking economic opportunities that had never before been available. With the Tax Cuts and Jobs Act set to expire this year, Senator Scott will work to ensure middle class families and small businesses are not hit with a massive, $4.1 trillion tax hike, and to broaden and extend Opportunity Zones to continue driving economic development in the communities that need it most.
Leveraging Digital Assets Senator Scott will prioritize establishing a clear, tailored regulatory framework for digital assets through legislation on stablecoins and crypto market structure, aiming to empower families, small businesses, and underserved communities to build wealth and participate more fully in the digital economy.
Expanding Quality Education Education is a catalyst to driving long-term economic growth and labor market participation. Americans with a bachelor’s degree face less than half the unemployment rate and earn more than double the income of those who dropout of high school. Unlocking the power of education starts with K-12 education, which is why Senator Scott is helping lead the Education Choice for Children Act (ECCA) to provide up to $10 billion in federal tax credits for charitable contributions to K-12 scholarships for middle- and low-income students, benefitting nearly 2 million students.

MIL OSI USA News –

February 21, 2025
MIL-OSI Security: Houston Resident Pleads Guilty to Laundering Proceeds From $40 Million Fraud Scheme

Source: Federal Bureau of Investigation (FBI) State Crime News

HOUSTON – A 43-year-old man has admitted to laundering proceeds from a large-scale bank fraud scheme, announced U.S. Attorney Nicholas J. Ganjei.

Bun Khath admitted that from 2016 to 2021, he conspired with others in a bank fraud scheme involving dozens of loans totaling at least $40 million in fraudulent loan proceeds.

As part of the plea, Khath acknowledged opening and maintaining shell companies and bank accounts to collect money from the scheme and then laundering the fraud proceeds by wiring them to bank accounts other co-conspirators controlled.

Khath and others accomplished the bank fraud by preparing loan applications that contained false and fraudulent information and documents, including fake equipment sales invoices, income tax returns and financial and bank statements.

U.S. District Keith Ellison will impose sentencing April 29. At that time, Khath faces up to 10 years in federal prison and a $250,000 possible fine or twice the amount involved in the transaction.

He was permitted to remain on bond pending that hearing.

Another Houston resident charged in the case – Hugo Villanueva, 70, – is considered a fugitive, and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.

The Federal Housing Finance Agency-Office of Inspector General (OIG), IRS-Criminal Investigation, FBI and Federal Deposit Insurance Corporation-OIG conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.

MIL Security OSI –

February 21, 2025

MIL-OSI: Coface : 2024 results: net income at €261.1m, up 8.6%, and proposed dividend at €1.40

Source: GlobeNewswire (MIL-OSI)

2024 results: net income at €261.1m, up 8.6%, and proposed dividend at €1.40

Paris, 20 February 2025 – 17.35

Turnover: €1,845m, down -0.6% at constant FX and perimeter and down -1.3% on a reported basis
- Trade credit insurance revenue decreased by -2.2% at constant exchange rates, with slightly positive customer activity in Q4-24
- Client retention is still high at 92.3% but down slightly from 2023 records; pricing remained negative at -1.4%, in line with historical trends
- Business information once again recorded double-digit growth (+16.3% at constant FX); factoring stabilised at +0.3% with solid growth in Q4-24
Net loss ratio at 35.2%, improved by 2.5 ppts; net combined ratio at 65.5%, up 1.2 ppt
- Gross loss ratio at 33.4%, improved by 2.4 ppts with still high opening year reserving and high reserve releases
- Net cost ratio increased by 3.6 ppts to 30.2%, reflecting slightly lower revenues and continued investment, in line with our strategy
- Net combined ratio in Q4-24 at 68.7%, up 9.7 ppts due to a higher net cost ratio and a very low combined ratio in Q4-23 (59.0%)
Net income (group share) of €261.1m, up +8.6%, of which €53.4m in Q4-24, the highest annual figure since the adoption of IFRS 17. Annualised RoATE¹at 13.9%
Coface continues to be backed by a solid balance sheet:
- Estimated solvency ratio at ~196%², above the upper end of target range (155% to 175%)
- Proposal to distribute³ a dividend per share of €1.40 representing an 80% pay-out ratio
- Earnings per share reached €1.75
Coface signed the acquisition of Cedar Rose, strengthening its capabilities in information services in the Middle East and Africa
Gonzague Noël has been appointed as Group Chief Operating Officer (COO)

Unless otherwise indicated, change comparisons refer to the results as at 31 December 2023

Xavier Durand, Coface’s Chief Executive Officer, commented:
“2024 was marked by the launch of our Power the Core strategic plan which is deliberately focused on innovation.
In an environment characterised by weak economic growth, a decrease of our clients’ activity and an increase in the number of bankruptcies, the discipline of our underwriting enabled us to contain the increase in the combined ratio, which rose moderately to 65.5%. Finally, we benefited from the repositioning of our investment portfolio to achieve a return on average tangible equity of 13.9%, above our mid-cycle targets. The net income of €261m marked the highest level since the transition to IFRS 17.
All these achievements would not have been possible without the engagement of our employees.
These good results and solid solvency ratio of 196% allow us to propose the payment of a dividend of €1.40 per share to the Shareholders’ meeting.”

Key figures at 31 December 2024

The Board of Directors of COFACE SA approved the consolidated financial statements at 31 December 2024 at its meeting of 20 February 2025. The Audit Committee at its meeting on 18 February 2025 also previously reviewed them. Accounts are non-audited, certification is in progress.

Income statements items in €m	2023	2024	Variation	% ex. FX*
Insurance revenue	1,559.1	1,512.9	(3.0)%	(2.2)%
Services revenue	309.2	331.9	+7.4%	+7.4%
REVENUE	1,868.2	1,844.8	(1.3)%	(0.6)%
UNDERWRITING INCOME/LOSS AFTER REINSURANCE	395.4	368.7	(6.8)%	(5.3)%
Investment income, net of management expenses, excluding finance costs	12.4	91.7	638.0%	595.7%
Insurance Finance Expenses	(40.0)	(42.5)	6.4%	12.9%
CURRENT OPERATING INCOME	367.9	417.9	+13.6%	+12.8%
Other operating income / expenses	(5.0)	(8.6)	74.5%	74.2%
OPERATING INCOME	362.9	409.2	+12.8%	+12.0%
NET INCOME (GROUP SHARE)	240.5	261.1	+8.6%	+6.3%

Key ratios	2023	2024	Variation
Loss ratio net of reinsurance	37.7%	35.2%	(2.5)%	ppts
Cost ratio net of reinsurance	26.6%	30.2%	3.6%	ppts
COMBINED RATIO NET OF REINSURANCE	64.3%	65.5%	1.2%	ppt

Balance sheet items in €m	2023	2024	Variation
Total equity (group share)	2,050.8	2,193.6	+7.0%
Solvency ratio	199%	196%¹	-3 ppt

* Also excludes scope impact

¹This estimated solvency ratio constitutes a preliminary calculation made according to Coface’s interpretation of Solvency II regulations and using the Partial Internal Model. The final calculation may differ from this preliminary calculation. The estimated solvency ratio is not audited.

1. Turnover

In 2024, Coface recorded a consolidated turnover of €1,844.8 million, down by -0.6% at constant FX and perimeter compared to 2023. As reported (at current FX and perimeter), turnover was down -1.3%.

Revenue from insurance activities (including bonding and Single Risk) fell -2.2% at constant FX and perimeter, although the year ended on a slightly more positive note (Q4-24 revenue from insurance activities rose +3.7% and total revenue increased +4.3%). Client retention remains high at 92.3% (but down from the record level in 2023), in a competitive market where Coface implemented risk mitigation plans that impacted renewals at the beginning of the year. New business rose to €126m, up €9m compared to 2023 driven by an increase in demand and the positive effects of investments for growth, mainly in the mid-market segment.

Client activity grew modestly at 0.5%, below the historical average with an improvement in Q4-24 (+0.4%). Over the year, the decline in activity in the metals sector, with lower prices, partially offset the positive trend in the agri-food sector. The price effect remained negative at -1.4% in 2024 (vs. -1.9% in 2023), in line with long-term trends.

Turnover from non-insurance activities was up +8.2% compared to 2023. Factoring turnover stabilised at +0.3% with a positive Q4-24 that reversed the full-year trend. Information services turnover rose +16.3%. Fee and commission income (debt collection commissions) increased by +19.6%, from a low base, due to the increase in claims to be collected and investments made in third-party debt collection. Commissions were up +6.6%.

Total revenue – in €m (by country of invoicing)	2023	2024	Variation	% ex. FX⁴
Northern Europe	379.6	362.2	(4.6)%	(4.6)%
Western Europe	380.1	391.8	+3.1%	+0.4%
Central & Eastern Europe	177.1	173.8	(1.9)%	(3.2)%
Mediterranean & Africa	526.3	538.5	+2.3%	+5.6%
North America	171.8	176.6	+2.7%	(6.4)%
Latin America	100.3	77.7	(22.5)%	+4.0%
Asia-Pacific	133.1	124.3	(6.6)%	(7.1)%
Total Group	1,868.2	1,844.8	(1.3)%	(0.6)%

In Northern Europe, turnover was down by -4.6% at constant and current FX, due to the selective non-renewal of some loss-making policies at the beginning of the year, despite the stabilisation of client activity in Q4-24.

In Western Europe, turnover increased by +0.4% at constant FX (+3.1% at current FX and perimeter following the integration of certain African countries in the first half of the year) thanks to a sharp increase in information services sales (+30.3%) combined with a better Q4-24 in credit insurance under the effect of significant business catch-up.

In Central and Eastern Europe, turnover fell -3.2% at constant FX (-1.9% at current FX) due to the decline in client activity, which weighed on credit insurance, despite a high client retention rate. Factoring was down -1.0% at constant exchange rates.

In the Mediterranean and Africa region, which is driven by Italy and Spain, turnover rose +5.6% at constant FX and +2.3% at current FX driven by robust sales in credit insurance and services and a stronger economic environment.

In North America, turnover was down -6.4% at constant FX but increased by +2.7% at current FX due to the integration of Mexico in this scope. The region saw a slowdown in client activity despite higher retention and a fairly strong economic environment.

In Latin America, turnover rose +4.0% at constant FX but fell -22.5% at current FX. The region is benefiting from a recovery in client activity after 2023 was dominated by risk prevention actions. However, the transfer of Mexico to the North America region had a negative impact.

In Asia-Pacific, turnover decreased by -7.1% at constant FX and -6.6% at current FX. This lower turnover was due to a slowdown in client activity that robust sales were unable to offset and selective non-renewal of certain policies.

2. Result

Combined ratio

The annual combined ratio net of reinsurance was 65.5% in 2024, up 1.2 ppt year on year.

(i) Loss ratio

The gross loss ratio stood at 33.4%, a 2.4 ppts improvement on the previous year. This improvement reflects both the gradual normalisation of the loss experience, offset by rising reserve releases. The amount of claims recorded is now higher than in 2019. The total number of claims decreased, offset by an increase in the number of mid-sized claims.

The Group’s provisioning policy remained unchanged. The amount of provisions related to the underwriting year, although discounted, reflects the increase in the claims frequency. Strict management of past claims enabled the Group to record 51.9 ppts of recoveries.

The net loss ratio improved to 35.2%, down 2.5 ppts compared to 2023.

(ii) Cost ratio

Coface is pursuing a strict cost management policy and is continuing to invest, in line with its Power the Core strategic plan. As a result, over the full year 2024, costs rose by +5.5% at constant FX and perimeter, and by +5.3% at current FX.

The cost ratio before reinsurance was 33.7%, up 2.2 ppts year on year. This rise was mainly due to the decline in revenues (1.0 ppt), embedded cost inflation (1.5 ppt) and ongoing investments (1.5 ppt). In contrast, the improved product mix (information services, debt collection and fee and commission income) had a positive effect. High reinsurance commissions explain the remainder of the variation.

Financial result

Net financial income for 2024 was €91.7m, up sharply compared to 2023. This figure includes capital gains of +€11.4m, which more than offset negative market value adjustments on investments of -€2.9m. The FX effect remained slightly negative at -€2.7m but improved significantly compared to 2023, which was marked by the accounting effect of IAS 29 (hyperinflation) in Turkey and Argentina as well as the sharp devaluation of the Argentine peso.

The portfolio’s current yield (i.e. excluding capital gains, depreciation and FX impact) was €96.6m, of which €25.7m in Q4-24. The accounting yield⁵, excluding capital gains and fair value effect, was 2.9% for 2024. The yield on new investments made year-to-date was 4.1% and fell in Q4-24 in line with the trend in market rates.

Insurance Finance Expenses (IFE) stood at €42.5m (€40.0m in 2023).

Operating income and net income

Operating income amounted to €409.2m in 2024, up +12.0% at constant FX.

The effective tax rate was 29% for the year (vs. 27% in 2023), including the impact of Pillar 2 (global minimum tax).

In total, net income (group share) was €261.1m, up +8.6% compared to 2023.

3. Shareholders’ equity

At 31 December 2024, Group shareholders’ equity stood at €2,193.6m, up €142.8m or +7.0% (€2,050.8m at 31 December 2023).

These changes are mainly due to the positive net income of €261.1m and the dividend payment of -€194.3m. Other items include changes in unrealised capital gains for €72.0m.

The annualised return on average tangible equity (RoATE) was 13.9%, up 0.5 ppt mainly due to the improvement in financial income, which more than offset the decrease in underwriting income (decline in net premiums and slight increase in the combined ratio).

The solvency ratio reached 196%⁶, representing a decrease of 3 ppts compared to FY-23. It remains well above the upper end of the target range (155%-175%).

Coface will propose €1.40 dividend per share at the Shareholders’ meeting, corresponding to a payout ratio of 80%⁷, in line with its capital management policy.

4. Outlook

Once again, the global economy experienced modest growth in 2024 (2.7%), in line with Coface’s forecasts and still driven being by the United States. The electoral calendar, which involved an unprecedented number of countries, delivered generally unsurprising outcomes, with some exceptions.

For 2025, Coface is forecasting growth identical to that of 2024 at 2.7%. Further downgrades to European growth are likely to be offset by the good performance of the United States, while political risk remains. Donald Trump’s return to power seems to have been welcomed by economic circles so far, raising hopes of deregulation, which is stimulating in the short term but often carries longer-term risks. The announced introduction of tariffs for many countries is also a destabilising factor for global trade.

Against this backdrop, Coface is anticipating a continued rise in bankruptcies, as businesses are caught between depleted levels of cheap financing and sluggish growth. Coface and its teams will continue to support their clients in this still uncertain environment.

At the end of 2024, client activity finally posted a slightly positive performance after several quarters of decline. This slight rebound may give hope that the post-Covid decline in client activity has come to an end. In 2025, Coface will continue to implement its Power the Core strategic plan, which aims to develop a leading global ecosystem in credit risk management.

5. Governance evolution

In the Executive Committee:

As of February 1^st, 2025, Carole Lytton leads the Specialties Businesses, in addition to her role as General Secretary. She takes over from Antonio Marchitelli who decided to leave and take another appointment outside Coface after many years of dedication to the Group.
As of February 3^rd, Gonzague Noël has been appointed as Group Chief Operating Officer (COO). He takes over Declan Daly, joins the Group executive committee and reports to Xavier Durand, Coface CEO.

Conference call for financial analysts

Coface’s results for FY-2024 will be discussed with financial analysts during the conference call on Thursday, 20 February 2025 at 18.00 (Paris time). Dial one of the following numbers:

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

Income statements items in €m Quarterly figures	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24	%	% ex. FX*
Insurance revenue	395.3	407.8	384.7	371.3	378.6	375.6	375.9	382.7	+3.1%	+3.7%
Other revenue	79.8	76.8	73.4	79.2	85.0	83.4	78.0	85.5	+8.0%	+7.6%
REVENUE	475.1	484.5	458.1	450.4	463.7	459.1	453.8	468.3	+4.0%	+4.3%
UNDERWRITING INCOME (LOSS) AFTER REINSURANCE	95.3	103.5	91.2	105.4	100.3	94.7	88.8	84.9	(19.5)%	(17.9)%
Investment income, net of management expenses, excluding finance costs	(2.6)	4.0	13.0	(2.0)	17.9	22.8	19.0	31.9	(1667)%	(1568)%
Insurance Finance Expenses	(2.4)	(12.3)	(15.4)	(9.9)	(11.4)	(6.7)	(7.3)	(17.1)	+73.3%	+77.9%
CURRENT OPERATING INCOME	90.4	95.2	88.9	93.5	106.8	110.9	100.5	99.7	+6.7%	+7.9%
Other operating income / expenses	(0.3)	(0.4)	(0.2)	(4.0)	(0.1)	(0.5)	(2.6)	(5.5)	+38.3%	+36.4%
OPERATING INCOME	90.0	94.8	88.6	89.5	106.8	110.4	97.9	94.2	+5.2%	+6.6%
NET INCOME (GROUP SHARE)	61.2	67.7	60.9	50.8	68.4	73.8	65.4	53.4	+5.1%	+4.9%
Income tax rate	25.5%	21.9%	24.2%	36.0%	27.2%	26.8%	25.5%	36.2%	+0.2 ppt

Appendices

Quarterly results

Cumulated results*

Income statements items in €m
Cumulated figures

Q1-23

H1-23

9M-23

2023

Q1-24

H1-24

9M-24

2024

%
ex. FX*

Insurance revenue

395.3

803.1

1,187.8

1,559.1

378.6

754.3

1,130.2

1,512.9

(3.0)%

(2.2)%

Other revenue

79.8

156.6

230.0

309.2

85.0

168.5

246.4

331.9

+7.4%

REVENUE

475.1

959.7

1,417.8

1,868.2

463.7

922.7

1,376.6

1,844.8

(1.3)%

(0.6)%

UNDERWRITING INCOME (LOSS)
AFTER REINSURANCE

95.3

198.8

290.0

395.4

100.3

195.0

283.8

368.7

(6.8)%

(5.3)%

Investment income, net of management expenses, excluding finance costs

(2.6)

1.4

14.5

12.4

17.9

40.8

59.8

91.7

+638.0%

+595.7%

Insurance Finance Expenses

(2.4)

(14.7)

(30.1)

(40.0)

(11.4)

(18.1)

(25.4)

(42.5)

+6.4%

+12.9%

CURRENT OPERATING INCOME

90.4

185.5

274.4

367.9

106.8

217.7

318.2

417.9

+13.6%

+12.8%

Other operating income / expenses

(0.3)

(0.7)

(0.9)

(5.0)

(0.1)

(0.5)

(3.1)

(8.6)

+74.5%

+74.2%

OPERATING INCOME

90.0

184.8

273.4

362.9

106.8

217.2

315.1

409.2

+12.8%

+12.0%

NET INCOME (GROUP SHARE)

61.2

128.8

189.7

240.5

68.4

142.3

207.7

261.1

+8.6%

+6.3%

Income tax rate

25.5%

23.7%

23.8%

26.8%

27.2%

27.0%

26.5%

28.7%

+1.9 ppt

* Also excludes scope impact

CONTACTS

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

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

FINANCIAL CALENDAR 2025
(subject to change)

Q1-2025 results: 5 May 2025 (after market close)
Annual General Shareholders’ Meeting: 14 May 2025
H1-2025 results: 31 July 2025 (after market close)
9M-2025 results: 3 November 2025 (after market close)

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

For regulated information on Alternative Performance Measures (APM), please refer to our Interim Financial Report for H1-2024 and our 2023 Universal Registration Document (see part 3.7 “Key financial performance indicators”).

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

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

www.coface.com

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

DISCLAIMER – Certain declarations featured in this press release may contain forecasts that notably relate to future events, trends, projects or targets. By nature, these forecasts include identified or unidentified risks and uncertainties, and may be affected by many factors likely to give rise to a significant discrepancy between the real results and those stated in these declarations. Please refer to chapter 5 “Main risk factors and their management within the Group” of the Coface Group’s 2023 Universal Registration Document filed with AMF on 5 April 2024 under the number D.24-0242 in order to obtain a description of certain major factors, risks and uncertainties likely to influence the Coface Group’s businesses. The Coface Group disclaims any intention or obligation to publish an update of these forecasts, or provide new information on future events or any other circumstance.

¹RoATE = Return on average tangible equity
²This estimated solvency ratio is a preliminary calculation made according to Coface’s interpretation of Solvency II regulations and using the Partial Internal Model. The final calculation may differ from this preliminary calculation. The estimated solvency ratio is not audited.
³The distribution proposal will be submitted to the Shareholders’ Meeting to be held on 14 May 2025.
4 Also excludes scope impact
5 Book yield calculated on the average of the investment portfolio excluding non-consolidated subsidiaries.
6 This estimated solvency ratio is a preliminary calculation made according to Coface’s interpretation of Solvency II regulations and using the Partial Internal Model. The final calculation may differ from this preliminary calculation. The estimated solvency ratio is not audited.
7 The distribution proposal will be submitted to the Shareholders’ Meeting to be held on 14 May 2025.

Attachment

2025 02 20 PR results FY-2024 COFACE

The MIL Network –

February 21, 2025

MIL-OSI USA: America Is Back — and President Trump Is Just Getting Started

US Senate News:

Source: The White House
President Donald J. Trump took office just one month ago, but has already accomplished more than most presidents do in their entire term as he makes good on his promise to usher in the New Golden Age of America.
Here is a non-comprehensive list of President Trump’s wins after just one month:
SECURING OUR HOMELAND:
President Trump declared a national emergency at the border and deployed the military, including the 10th Mountain Division, to secure our nation.
Illegal border crossings have hit lows not seen in decades as U.S. Border Patrol is re-empowered to once again enforce the law.
ABC News: “From Jan. 21 through Jan. 31, the number of U.S. Border Patrol apprehensions along the southwest border dropped 85% from the same period in 2024, according to data obtained by ABC News. In the 11 days after Jan. 20, migrants apprehended at ports of entry declined by 93%.”

Illegal aliens have started turning around in droves amid the crackdown.
The Department of Homeland Security announced that arrests of criminal illegal immigrants have doubled under President Trump.
President Trump signed the Laken Riley Act into law, which requires illegal immigrants arrested or charged with theft or violence to be detained — honoring the legacy of Laken Riley, a Georgia college student brutally murdered by an illegal alien released into the country.
President Trump ended “catch-and-release,” reversing the dangerous Biden-era policy that released dangerous illegal aliens back into our communities.
President Trump shut down the “CBP One” app, which “paroled” more than one million illegal immigrants into the country.
A migrant shelter in San Diego announced it will shut down after it has received no new arrivals since President Trump took office.

President Trump terminated all taxpayer-funded public benefits for illegal aliens.
President Trump ramped up deportation flights of criminal illegal aliens.
After President Trump announced “urgent and decisive retaliatory measures” against Colombia over its refusal to accept deportation flights from the U.S., the country’s president quickly backtracked — even offering the use of his personal plane for the deportations.
El Salvadorian President Nayib Bukele offered to accept deportees of any nationality, including violent American criminals currently imprisoned in the U.S.

President Trump began transferring criminal illegal aliens to Guantanamo Bay ahead of their repatriation back to their own countries.
President Trump re-established the successful “Remain in Mexico” policy.
President Trump restarted construction of the border wall.
The Trump Administration officially declared Tren de Aragua, MS-13, the Sinaloa Cartel, the Jalisco New Generation Cartel, the United Cartels, the Gulf Cartel, the Northeast Cartel, and the Michoacán Family as Foreign Terrorist Organizations.
New York City Mayor Eric Adams (D) agreed to allow federal immigration officials to operate on Rikers Island and deport illegal alien criminals following his meeting with Border Czar Tom Homan.
Mexico announced a deployment of 10,000 troops to the border to combat illegal immigration and fentanyl trafficking, while Canada announced a flurry of measures to combat fentanyl manufacturing and trafficking following President Trump’s imposition of tariffs on the two countries.
President Trump implemented an additional 10% tariff on imports from China in order to stem the flow of illegal aliens and fentanyl.
President Trump ordered an end to birthright citizenship.
President Trump suspended the U.S. Refugee Admissions Program.
The Department of Justice filed suit against the State of New York and some of its elected officials over their willful failure to follow federal immigration law and announced that it will take action against so-called “sanctuary cities” for their obstruction of U.S. law.
The Department of Homeland Security “clawed back” tens of millions of dollars in funds paid by rogue FEMA officials to house illegal aliens in luxury New York City hotels.
President Trump reinstated the death penalty for federal capital crimes.
PROTECTING AMERICAN WORKERS AND FOSTERING ECONOMIC GROWTH:
President Trump restored a 25% tariff on steel imports and elevated the tariff to 25% on aluminum imports to protect these critical American industries from unfair foreign competition — a move praised by the Steel Manufacturers Association, the Aluminum Association, and businesses across the country.
Robert Simon, CEO of JSW Steel USA, praised President Trump’s steel and aluminum tariffs, celebrating them “as a project that will flood the U.S. with jobs as trading partners move their industries to U.S. soil to avoid tariffs.”

Makoto Uchida, the CEO of global automaker Nissan, said President Trump’s tariffs could push the car manufacturer to move its production from Mexico to the U.S.
President Trump unveiled a plan for fair and reciprocal trade, making clear to the world that the United States will no longer tolerate being ripped off.
President Trump secured hundreds of billions of dollars in new investments.
President Trump announced the largest artificial intelligence infrastructure project in history, securing $500 billion in planned private sector investment — with major CEOs agreeing it would not have been possible without President Trump’s leadership.
Saudi Arabia declared its intention to invest $600 billion in the United States over the next four years.
President Trump secured a $20 billion investment by DAMAC Properties to build new U.S.-based data centers.
Taiwan pledged to boost its investment in the United States.
Electronics giants Samsung and LG “are considering moving their plants in Mexico to the U.S.” now that President Trump is back in office.

In February, forecasters from the Federal Reserve Bank of Philadelphia revised their economic growth projections for the first quarter of 2025 up from 1.9% to 2.5%, and their unemployment rate projections for the quarter down from 4.2% to 4.1%.
After a meeting with President Trump, Stellantis announced it will reopen its assembly plant in Belvidere, Illinois — putting 1,500 employees back to work — and build its next-generation Dodge Durango in Detroit, Michigan. The company also announced new investments in their Toledo, Ohio, and Kokomo, Indiana, facilities.
President Trump laid out a visionary plan to establish a Sovereign Wealth Fund to maximize the stewardship of the $5+ trillion in assets held by the United States.
Following President Trump’s victory, the S&P 500 set a new record as the stock market surged to record highs — while major Wall Street firms like JP Morgan Chase posted their highest ever annual profits.
LOWERING THE COST OF LIVING:
President Trump directed the heads of all executive departments and agencies to “deliver emergency price relief … to the American people and increase the prosperity of the American worker.”
President Trump established the National Energy Dominance Council to maximize use of the U.S.’ extensive energy resources, thereby enabling lower energy prices.
Crude oil prices have fallen over 5% since President Trump took office.
The Department of Energy postponed burdensome Biden-era efficiency standard rules for the following appliances, saving American consumers large sums:
Central air conditioners: Biden rules were slated to make air conditioners $1,100 more expensive, according to Alliance for Consumers.
Gas water heaters: Biden rules were slated to make water heaters $2,800 more expensive.
Clothes washers and dryers: Biden rules were slated to make washers $200 more expensive.
Light bulbs: Biden rules were slated to make light bulbs $140 more expensive.
Walk-in coolers and freezers, commercial refrigeration equipment, and air compressors.

The total cost of federal regulations in 2023 was a record-breaking $2.1 trillion, or $15,788 per U.S. household, according to the Competitive Enterprise Institute. By requiring agencies to identify at least ten existing rules, regulations, or guidance documents to be repealed for every one rule they promulgate, President Trump has put the U.S. on track to severely reduce regulatory costs for everyday Americans.
The National Associations of Manufacturers found the cost of federal regulations was even greater — at $3.079 trillion in 2022.

Secretary Sean Duffy’s very first action at the Department of Transportation was to initiate rulemaking resetting Corporate Average Fuel Economy (CAFE) standards — effectively eliminating the Biden-era electric vehicle mandate.
NBER economist Mark R. Jacobsen “estimates that a one-mpg increase in CAFE standards costs consumers of all income levels approximately 0.5% of their income in the first year of the increase. By the 10th year following the increase, however, this cost becomes regressive, as the increase drives up the price of used cars. A one-mpg increase in CAFE standards costs consumers earning less than $25,000 per year 1.12% of their income, but only costs consumers earning more than $75,000 per year 0.41% of their income.”

RE-ESTABLISHING AMERICAN STRENGTH:
President Trump secured the release of six American hostages in Venezuela, two Americans in Afghanistan, an American-Israeli citizen in Hamas captivity, a Pennsylvania teacher in Russian captivity, and an American citizen in Belarus — bringing the total number of American hostages released under President Trump to 11.
President Trump spoke with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy in pursuit of finally securing peace as negotiations get underway.
President Trump restored maximum pressure on Iran, “sanctioning an international network for facilitating the shipment of millions of barrels of Iranian crude oil worth hundreds of millions of dollars to the People’s Republic of China.”
President Trump redesignated the Iran-backed Houthis as a Foreign Terrorist Organization.
President Trump hosted Israeli Prime Minister Benjamin Netanyahu for a visit where he proposed a bold vision for securing lasting peace in Gaza.
Former U.S. Ambassador to Israel David Friedman described the proposal as “brilliant, historic and the only idea I have heard in 50 years that has a chance of bringing security, peace and prosperity to this troubled region.”

President Trump hosted Japanese Prime Minister Shigeru Ishiba, who announced his intention to “elevate Japan’s investment in the United States to an unprecedented amount of $1 trillion,” import “historic” quantities of LNG from Alaska, and open new auto plants in the U.S.
President Trump hosted Jordan’s King Abdullah II, who announced that the Kingdom will accept 2,000 sick children from Gaza “as quickly as possible.”
President Trump hosted Indian Prime Minister Narendra Modi for a visit where they announced new deals between the two countries on immigration, trade, energy, and artificial intelligence.
President Trump banned funding to UNRWA — a United Nations agency that employed hundreds of Hamas and jihad operatives.
President Trump imposed sanctions on the International Criminal Court, which has illegitimately asserted jurisdiction over internal U.S. matters and baselessly targeted Israeli Prime Minister Benjamin Netanyahu.
President Trump reinstated the Mexico City Policy to ensure no taxpayer dollars support foreign organizations that perform, or actively promote, abortion in other nations.
The Department of State ordered embassies worldwide to only fly the American flag — not activist flags.
President Trump declared all foreign policy must be conducted under the President’s direction, ensuring career diplomats reflect the foreign policy of the United States at all times.
The Department of State declared that U.S. foreign policy will be America First going forward.
Following a visit from Secretary of State Marco Rubio, Panamanian President José Raúl Mulino agreed to withdraw from China’s Belt and Road Initiative, a debt-trap diplomacy scheme the Chinese Communist Party uses to gain influence over developing nations.
The U.S. rejoined the Geneva Consensus Declaration, which promotes and strengthens opportunities for women and girls around the world, and protects the family as the fundamental unit of society.
President Trump cracked down on anti-Semitism by canceling visas for foreign students who are Hamas sympathizers.
President Trump ordered the immediate dismissal of the Board of Visitors for the Army, Air Force, Navy, and Coast Guard following years of woke ideologies infiltrating U.S. service academies.
The U.S. Army barred transgender people from enlisting and stopped using taxpayer funds for sex change surgeries.
President Trump reinstated, with backpay, U.S. service members who were discharged under the military’s nonsensical COVID-19 vaccine mandate.
Secretary of Defense Pete Hegseth restored Fort Liberty, North Carolina, to “Fort Bragg,” in honor of a World War II hero.
President Trump withdrew the U.S. from the World Health Organization.
President Trump paused enforcement of the overregulation of American businesses abroad, which negatively impacted national security.
President Trump proclaimed “Gulf of America Day” after the Department of the Interior officially established it on its mapping databases.
President Trump initiated a process to build a next-generation missile defense shield over the United States.
UNLEASHING AMERICAN ENERGY:
President Trump declared a National Energy Emergency to unlock America’s full energy potential and bring down costs for American families.
President Trump rescinded every one of the Biden Administration’s job-killing, pro-China, anti-American energy regulations.
President Trump empowered Americans with choice in vehicles, showerheads, toilets, washing machines, light bulbs, and dishwashers, and killed Biden-era regulations that restricted water flow and mandated inadequate light bulb standards.
President Trump terminated the job-killing Green New Scam.
President Trump withdrew from the disastrous Paris Climate Agreement, which unfairly ripped off our country.
President Trump paused federal permitting for massive wind farms, which degrade our natural landscapes and fail to serve American consumers.
President Trump reversed bureaucratic regulations that impeded Alaska’s ability to develop its vast natural resources.
President Trump re-opened 625 million acres for offshore drilling, which Biden banned in his waning days, in order to “drill, baby, drill.”
President Trump scrapped an Obama-era rule on greenhouse gases.
President Trump ended the Liquefied Natural Gas pause and approved the first LNG project since the Biden Administration banned them last year.
BRINGING BACK COMMON SENSE:
Health systems across the nation stopped or downsized their sex change programs for minors following President Trump’s “Protecting Children from Chemical and Surgical Mutilation” executive order.
In Illinois, Chicago’s Lurie Children’s Hospital paused sex-change surgeries for patients under 19 as it “work[s] to understand the rapidly evolving environment.”
In Colorado, Denver Health announced it would stop performing sex change surgeries on minor children, while UCHealth said it was ending so-called “gender-affirming care” for all minors.
In Washington, D.C., Children’s National Hospital “paused” prescribing puberty blockers and hormone therapies for minors, while Northwest Washington Hospital did the same.
In Virginia, VCU Health and Children’s Hospital of Richmond “suspended” providing transgender-related medication and surgeries for minors, while UVA Health also “suspended” transgender-related services for minors.

President Trump ended the unfair, demeaning practice of forcing women to compete against men in sports — which resulted in the NCAA changing its rules.
The Department of Education launched investigations into the California Interscholastic Federation and the Minnesota State High School League over their failures to comply.

President Trump made it the official policy of the U.S. government that there are only two sexes.
President Trump banned COVID-19 vaccine mandates at schools that receive federal funding.
President Trump rolled back the Biden-era push to mandate paper straws.
President Trump instructed the Secretary of the Treasury to stop production of the penny, which cost 3.69 cents each to make.
President Trump directed full enforcement of the Hyde Amendment, which bars taxpayer dollars from being used to fund or promote elective abortion.
The Department of Transportation terminated the approval for New York City’s burdensome “congestion pricing” scheme.
RESTORING ACCOUNTABILITY AND TRANSPARENCY IN GOVERNMENT
President Trump established the Department of Government Efficiency (DOGE) to maximize government productivity and ensure the best use of taxpayer funds — which has already achieved billions of dollars in savings for taxpayers.
President Trump commenced his plan to downsize the federal bureaucracy and eliminate waste, bloat, and insularity.
President Trump ordered federal workers to return to the office five days a week.
President Trump ordered federal agencies hire no more than one employee for every four employees who leave.
President Trump ended the wasteful Federal Executive Institute, which had become a training ground for bureaucrats.
President Trump ordered the termination of all federal Fake News media contracts.

President Trump ordered the Consumer Financial Protection Bureau — the brainchild of Elizabeth Warren, which funneled cash to left-wing advocacy groups — to halt operations.
President Trump ordered an end to anti-Christian bias in the Federal Government.
President Trump ordered an examination of all regulations to assess any infringements on Americans’ Second Amendment rights.
The Environmental Protection Agency canceled tens of millions of dollars in contracts to left-wing advocacy groups, announced an investigation into a scheme by Biden EPA staffers to shield billions of dollars from oversight and accountability, and put 168 “environmental justice” employees on leave.
President Trump stopped the waste, fraud, and abuse within USAID — ensuring taxpayers are no longer on the hook for funding the pet projects of entrenched bureaucrats, such as sex changes in Guatemala.
President Trump ordered an end to the weaponization of the Federal Government against American citizens.
The Department of Justice immediately began rooting out politically motivated lawfare that occurred in the Biden Administration.

President Trump reversed the massive over-expansion of the IRS that took place during the Biden Administration.
President Trump eliminated discriminatory DEI offices, employees, and practices across the bureaucracy alongside a return to merit-based hiring — including at the Federal Aviation Administration, where the Biden Administration specifically recruited individuals with intellectual disabilities and psychiatric issues.
As a result, taxpayer-funded PBS closed its DEI office, Disney dropped two of its DEI programs, Goldman Sachs ended its DEI policy, and Institutional Shareholder Services announced it would no longer consider diversity of company boards when making its voting recommendations.
The Federal Communications Commission opened an investigation into discriminatory DEI policies at Comcast, an entity it regulates.

President Trump ordered an end to all censorship of Americans by the federal government.
President Trump ordered a review of funding for all non-governmental organizations, so taxpayers are no longer funding those that undermine America’s interests.
The Department of State issued a “pause” on existing foreign aid grants to ensure accountability and efficiency.

President Trump lifted last-minute collective bargaining agreements issued by the Biden Administration, which sought to impede reform.
President Trump overrode bureaucratic red tape that limited water availability in California following the failure of the state’s water system during the devastating wildfires.
President Trump terminated the Biden-era electric vehicle mandate.
President Trump suspended the Biden-era EV charging program, which had resulted in just eight charging stations despite $7.5 billion earmarked for the program.

President Trump shut down the wasteful Biden-era “Climate Corps” program.
The Federal Communications Commission took action against a Soros-backed radio station that leaked sensitive information about ICE operations.
President Trump ordered the declassification of documents related to the assassinations of President John F. Kennedy, Jr., Robert F. Kennedy, and Rev. Dr. Martin Luther King, Jr.
President Trump opened the White House Press Briefing Room to non-legacy media outlets as the White House sets a new standard for transparency in the digital age.
President Trump reinstated press privileges for roughly 440 journalists who the Biden Administration sought to silence.
President Trump fired members of The Kennedy Center’s Board of Trustees amid their obsession with perpetuating radical, left-wing ideology at taxpayer expense.
President Trump revoked the security clearances of the 51 “spies who lied.”
EMPOWERING THE AMERICAN PEOPLE
President Trump established the Make America Healthy Again Commission, which redirects the national focus to promoting health rather than simply managing disease.
President Trump took executive action to expand access to in vitro fertilization (IVF).
President Trump established the White House Faith Office to protect Americans’ religious liberty.
President Trump ordered an end to the radical indoctrination of children in K-12 schools that receive federal funding.
President Trump took executive action to support parents in choosing the best education for their children.
President Trump established the Presidential Working Group on Digital Asset Markets to strengthen U.S. leadership in digital finance.
President Trump granted full and unconditional pardons to 23 pro-life Americans who were unjustly persecuted by the Biden Administration.
President Trump pardoned two Washington, D.C., police officers who were imprisoned simply for doing their jobs of apprehending criminals.
President Trump has had his cabinet confirmed by the Senate at a far faster pace than his predecessors, with a majority of his cabinet earning confirmation in his first month.

MIL OSI USA News –

February 21, 2025

Category: Taxation

Substantial spend on schools

Extra support for social care

More budget spent on roads

Prioritising our communities and climate

Focused poverty prevention

Changes to Council Tax